Vasili Shapovalov, co-founder of the Lido protocol, announced via a post on platform X that the company will reduce its workforce by 15% in a move aimed at cutting operational costs.
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🔻 Key points from the statement:
The reduction includes contributor teams in:
Lido Labs
Lido Ecosystem
Lido Alliance
🗣️ Shapovalov clarified that the decision is not due to poor performance, but purely financial reasons, stating:
> "The decision is related to costs — not performance. The affected individuals are talented people who contributed to building the protocol and the community."
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📊 Financial facts about Lido:
Revenues this year:
💰 $44.68 million
Net profits:
💸 $41.56 million
Operating expenses:
🧾 Equivalent to 2,424 ETH (approximately $8.4 million according to the 2022 budget)
Number of employees:
👥 83 full-time employees
Total Value Locked (TVL):
🔐 $31.3 billion — the second-largest protocol after Aave
Largest share of TVL:
99.96% on the Ethereum network
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📌 Why the decision now?
Despite the market recovery and Ethereum's price approaching the $4,000 mark, Shapovalov confirms that this move aims to:
Ensuring long-term sustainability
Realigning priorities to serve LDO token holders
> "We are building for the coming decades — and this decision strengthens the foundation."
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📉 Lido is not alone: Eigen Labs recently laid off 29 employees (25%), but justified the decision by refocusing on the EigenCloud project, not for financial reasons.
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💬 What do you think? Do you see cutting expenses in DeFi companies right now as a smart move despite the market rise?