lido ethereum 70m lido 10b ramaswamytechcrunch

Staking on each of these chains has its own unique complexities, requiring Lido to write entirely new code every time it onboards a new protocol, he added.

A decentralized autonomous organization (DAO) governs Lido, a structure that allows the group to remove individual staking minimums for users by pooling their assets. The DAO had 90 voting members last year, all holders of Lido’s governance token, who collectively act as Lido’s decision-making entity.

“There are a lot of decisions going through the DAO, even small ones, like to onboard a new validator or to stake more assets on that validator.


Big decisions [also go through the DAO], for example, redistributing Lido tokens or adding some incentives to the tokens,” Lomashuk said.

Despite bumps, crypto investment starts 2022 with a roar

The DAO structure was crucial for Lido to achieve product-market fit because it was the only way the group could build trust among its community, according to Lomashuk. Executives of the company officially report to the DAO itself rather than to a particular corporate manager or leader, he added.

Around 60 people work full-time on Lido, though the project has closer to 100 contributors in total, including part-timers, Lomashuk said.

Andreessen Horowitz made the investment in Lido partially using ETH, buying up some of Lido’s governance tokens from other holders, Lomashuk said.

At the time of writing, nearly 9.7 million ETH had been staked for a total value of over $27.1 billion.

Although terms like Ethereum 2.0 and Eth2 are still widely used in the industry, the Ethereum Foundation announced in January it would ditch such terminology. Instead, it now refers to the original Ethereum blockchain as the “execution layer” and the PoS chain as the “consensus layer.”

Founded in 2020, Lido Finance offers a liquid staking solution for Ethereum 2.0, allowing users to stake their ETH with no lockups or minimum deposits. As Cointelegraph reported, Lido also supports other tokens, having only recently added Kusama liquid staking.

More staking options arrive as we get closer to Ethereum 2.0.
@Ledger has announced a partnership with @LidoFinance in a move that could make $ETH staking more accessible.

More from @DarenMatsuoka & @_PorterSmith: https://t.co/vc2tzDJ3mS

— cdixon.eth (@cdixon) March 3, 2022

According to Andreessen, staking Ether (ETH) has significant barriers due to the high threshold for operating a node. To become a full validator, users must be able to stake at least 32 ETH, which is worth over $90,000 at current prices.

In addition to investing in Lido, Andreessen said it’s staking a portion of its ETH holdings on the Beacon Chain through the protocol. “Staking with Lido removes many of the operational complexities that institutional investors have faced,” the venture firm said.

Ethereum’s Beacon Chain recently registered its 300,000th validator, according to industry data.

Lido co-founder Konstantin Lomashuk told TechCrunch in an interview.

To understand why assets on Lido grew by 15,000% in 2021, according to Lomashuk, it’s important to first understand why some crypto holders do not choose to stake their coins.

First, staking is considered to be less risky, and therefore less lucrative from a return standpoint, than investing in some decentralized finance (DeFi) products. What’s more, staked ETH is effectively “locked up” and cannot currently be withdrawn, making higher-return DeFi strategies look all the more attractive to many yield-seekers.

Second, if a user wants to stake their ETH today, they would either need to put up a minimum of 32 ETH (worth more than US$93,000 in today’s terms) or rely on a centralized exchange like Coinbase or Binance to pool their coins with those of other users.

Начать планируют с Arbitrum and Optimism.

Для реализации задуманного Lido уже интегрировали с Aztec и Argent. Первая — ориентированная на конфиденциальность сеть второго уровня, использующая технологию ZK-Rollups, второй — провайдер криптокошельков, который задействует решение zkSync от Matter Labs.

На начальном этапе команда обеспечит поддержку обернутых stETH (wstETH). Сотрудничество с двумя вышеуказанными проектами позволит пользователям размещать wstETH в доступных сетях второго уровня.

По данным Duna Analytics, Lido является крупнейшим сервисов ликвидного стейкинга Ethereum 2.0.

На его долю приходится свыше 31% всех активов на соответствующем депозитном контракте. проекта оценивается в $6,25 млрд.

В июне 2022 года дисконт на stETH превысил 5%. На момент написания производные токены торгуются на 2,3% ниже нативных монет Ethereum (на Curve).

Команда Lido Finance анонсировала запуск сервиса ликвидного стейкинга Ethereum 2.0 в сетях масштабирования второго уровня (L2).

Lido is launching stETH on Layer 2 ???

Ethereum is scaling, and so is Lido.

Lido stakers will soon be able to use their stETH assets in DeFi on Layer 2.

Read more about it here: https://t.co/QCsQry4V41

— Lido (@LidoFinance) July 18, 2022

Lido Finance — сервис для ликвидного стейкинга криптовалют. Протокол позволяет депонировать монеты в релевантный контракт и получить взамен сумму «производных» токенов, которые можно использовать в DeFi-сервисах. В случае с Ethereum это токены stETH.

Команда проекта подчеркнула, что не ограничится отдельным L2-решением.
Сервис запустят «во всех достаточно проверенных сетях второго уровня с продемонстрированной экономической активностью».

Ethereum staking solution Lido Finance has raised $70 million from venture capital giant Andreessen Horowitz, marking the protocol’s first funding round since May 2021.

Andreessen Horowitz’s investment in Lido is intended to further support the adoption of decentralized staking solutions for Ethereum 2.0, a spokesperson for the venture capital firm said. Ethereum 2.0 marks a significant shift in the network’s consensus algorithm by ushering in the adoption of proof-of-stake (PoS) and other upgrades that could enhance scalability and reduce fees. The transition to Ethereum 2.0, which began in November 2020, is still ongoing.

Excited to share that @a16z has invested $70M in @LidoFinance, one of the easiest ways to stake ETH and other PoS assets, and we used Lido to stake a portion of our ETH holdings on the Beacon chain.

PoS). PoS, favored over its predecessor for its relative energy efficiency, lets users validate transactions on the network by temporarily depositing, or staking, a certain amount of their tokens in return for rewards.

But ETH holders have been hesitant to stake their coins, with only 8% of eligible tokens in the Ethereum ecosystem staked to date, according to StakingRewards. Still, Ethereum must encourage staking so it can complete the transition to PoS with an adequately secure network.

This incentive gap has created an opportunity for liquid staking providers, including Lido, which announced today that it received a $70 million investment from Andreessen Horowitz.

Lido is the market leader for Ethereum liquid staking, representing over 80% of market share in that space, recent estimates show.

And we know crypto users, particularly early adopters, would much rather use decentralized networks than rely on a middleman to execute transactions.

Lido aims to solve both of these issues through its decentralized staking platform that allows users to stake their coins with no minimum investment required, Lomashuk said.

Lido users can use their staked ETH as collateral to participate in DeFi protocols — meaning they no longer have to choose between staking their ETH and earning attractive DeFi returns, Lomashuk said. The platform does this by issuing a derivative financial product native to Ethereum, which Lomashuk compared to a “new type of bond.”

The platform also supports liquid staking on the Solana, Kusama and Terra blockchains and plans to launch on Polygon later this month, Lomashuk said.

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