- They own 20,000 ETH
- This will allow the protocol to earn up to $2 million per year on staking
Lido Finance liquid staking platform community votes for an important change. They offer to invest all the ether from their treasury into staking on their own protocol.
The essence of the proposal is to create derivatives in the treasury of Lido, and at the expense of the profit from them to compensate for transaction costs. There are 11 hours left until the end of the voting, the leadership has already cast their votes in favor.
Based on the current ETH yield rate (about 4-6% per year), the Lido protocol will be able to generate an additional $2 million in revenue. This figure is based on the project’s entire supply of coins (20,000 Ether).
In the comments, users are mostly positive about this idea.
“Great opportunity to generate profit without unnecessary risks”
“If Dai is in trouble (and they are) and stETH is in trouble, it would be nice to have a third bill payment option.”
The single key risk associated with staking the entire ETH treasury is the threat of smart contracts being hacked if the Lido protocol has a vulnerability. There is also some risk associated with ETH price volatility. This may temporarily affect the operating costs of the team.
Recall that in mid-May, the Lido Finance platform was updated to version V2. Users now have the ability to withdraw ether from staking. More than 6 million ETH was previously locked in the Lido protocol.