According to its current ranking among other <a href="https://www.cryptoknowmics.com/news/hackers-steal-8-million-from-bitkeep-wallets-in-latest-defi-hack">decentralized finance (DeFi)</a> protocols, <a href="https://www.cryptoknowmics.com/news/lido-finance-introduces-ethereum-layer-2-staking-and-ldo-incentives">Lido</a> Finance, a liquid staking protocol, <a href="https://twitter.com/Dynamo_Patrick/status/1609650498688241664?">looks</a> to have profited the most from the September Ethereum merger.

https://twitter.com/Dynamo_Patrick/status/1609650498688241664?
<h2>Lido Finance Overtakes MakerDAO in TVL</h2>
DeFiLlama data shows that Lido Finance liquid staking protocol currently controls $5.9 billion in TVL, surpassing <a href="https://www.cryptoknowmics.com/news/makerdao-is-voting-to-raise-stablecoin-dais-dividend">MakerDAO's</a> $5.89 billion and AAVE's $3.7 billion. On Jan. 2, there was $5.8 billion worth of ether staked, according to the Lido Finance website. Around $23.2 million was bet on <a href="https://www.cryptoknowmics.com/news/solana-token-rises-from-thursday-lows-as-buterin-posts-support">Solana</a> at the same time that $43.9 million was bet on Polygon, $11 million was bet on <a href="https://www.cryptoknowmics.com/news/w3f-says-dot-token-of-polkadot-blockchain-is-software-not-security">Polkadot</a>, and $2.2 million was bet on Kusama.

The Lido Finance approach gives customers access to liquid Ether staking without requiring them to stake a minimum of 32 ETH.
<h2>Effect of Ethereum Merge</h2>
In December, Nansen's blockchain data analytics reported that since <a href="https://www.cryptoknowmics.com/news/tron-dao-joins-the-enterprise-ethereum-alliance">Ethereum</a> switched to proof-of-stake, staking solutions like these have been in great demand.

The Merge's introduction of staked ETH as a yield-bearing mechanism that is completely native to cryptocurrencies was noted in its report, and it has since swiftly surpassed other collateralized yield-bearing offerings. Since Lido distributes received ether to the staking protocol, its price revenue has been directly proportionate to Ethereum Proof-of-stake (PoS) revenues. This suggests that Lido has benefited from this.
<h2>Lack of Liquidations and Weak Loan Demands</h2>
In November 2022, Lido declared that since October 2022, it had been bringing in $1 million per day in fees. According to a Messari announcement in September 2022, the MakerDAO, which oversees the Maker protocol, had its revenue fall to a little over $4 million in Q3, an 86% decrease from the past quarter. The reduction was attributed to a lack of liquidations and insufficient loan demand.

Lido Finance Surpasses MakerDAO and Currently has Highest TVL in DeFi

Lido Finance looks to have profited the most from the September Ethereum merger as its TVL surpassed that of MakerDAO and AAVE.

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Lido Finance Surpasses MakerDAO and Currently has Highest TVL in DeFi

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