2022-3-5 16:07 |
Andreessen Horowitz is excited to invest in Lido, an effective, decentralized staking platform, according to a post on their website. According to the VC firm, Lido offers one of the easiest ways to stake ether (ETH/USD) and other PoS assets today, while striving for decentralization through the DAO’s governance.
What is Lido?Lido democratizes staking. It builds state of the art liquid staking protocols to grow the staking economy, letting users stake their assets for daily staking rewards. User can stake any amount of tokens – no minimum.
Use staked assets to gain yieldLido lets you use your staked assets to gain yield on top of yield. Use your tokens (which earn daily staking rewards) as collateral, for lending, yield farming and more.
Mint tokens pegged to initial stakeWhen staking Lido you mint staked tokens which are pegged 1:1 to your initial stake. Your staked tokens can be used across the DeFi ecosystem to compound your yield.
Lido DAO is a community that builds liquid staking services and governs the direction of Lido. The number of DAO participants is growing daily with contributors working together to build the future of Lido.
Unwavering commitment to decentralizationLido is building a fully trustless staking pool while embracing alternative solutions. It solves the competitive incentives between staking and seeking yield in DeFi. By issuing an Ethereum-native liquid token, Lido allows you to use staked ETH as collateral within DeFi in the same way you can use ETH currently.
Apart from investing in Lido, a16z has staked a portion of its ETH holdings on the Beacon chain. Staking with Lido removes many of the logistical complexities that institutional investors have faced.
ETH barriers to stakingStaking ETH has significant barriers today. A 32-ETH minimum is required to operate a node, which stops many network users from running their own validator. What’s more, there is no native method to delegate a stake to bypass this requirement.
a16z looks forward to supporting the Lido community. After the PoS transition on Ethereum, there will be incentives to stake and seek higher returns from participating in DeFi. a16z will stake and participate in governance to help ensure a fair, transparent, and credible staking ecosystem.
The post a16z invests in Lido appeared first on Invezz.
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