To adjust DCF models for Lido with an ETH staking yield of 3.2%, update the cash flow projections to reflect this yield as the base return on staked ETH. Incorporate Lido’s 10% fee on staking rewards, splitting it between the DAO treasury and node operators (5% each). Adjust revenue forecasts by factoring in Lido’s market share (around 32%) and total staked ETH volume. Discount future cash flows using a risk-adjusted rate, accounting for smart contract risks, slashing potential, and ETH price volatility. Recalibrate growth assumptions based on recent trends, like increased competition from other liquid staking protocols. Finally, align the terminal value with sustainable yield expectations, ensuring the model reflects Lido’s reliance on Ethereum network activity and validator performance. This keeps the valuation grounded in current staking economics.
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I just collected "Farcaster: Lion"
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True love is when you’ve found someone who truly sees you, even in your most vulnerable moments.
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