Lido DAO Proposes Selling or Staking $30M in ETH Ahead of Withdrawals
• Lido DAO (LDO) is proposing to sell or stake its $30M worth of ETH in the treasury.
• The funds would be used to secure additional runway in current market conditions.
• It’s possible to sell some ETH and stake what’s left.
Lido DAO Proposes Selling or Staking Its $30M in ETH
Lido DAO (LDO), the governing body behind the largest Ethereum staking provider, is trying to decide what to do with its treasury ether ahead of the Shanghai upgrade, which will enable ETH staking withdrawals. On February 14, Steakhouse Financial, the Lido DAO branch responsible for managing the treasury, made three proposals concerning the 20,304 ETH and surplus stETH that it currently holds – worth around $30 million. One of these proposals outlined a plan to sell all or part of this Ether for a stablecoin as this would provide additional runway in current market conditions.
Options for Selling or Staking ETH
The proposal also said it’s possible to sell some of the ETH and stake what’s left. Lido DAO is not the only DAO that’s been thinking of selling its treasury ETH recently – Ethereum Name Service (ENS) DAO voted in favor of a proposal to sell 10,000 ETH ($13 million) a week ago so as to decrease its exposure to Ether which made up almost 100% of their treasury at that time. Voting on these proposals has not started yet.
Why You Should Care
Users might find it interesting to see how Lido DAO manages its treasury and adjusts itself according to circumstances in crypto markets. Lido being one of the largest Ethereum staking service providers makes this an important case study into how crypto assets can be managed during an uncertain period – when Ethereum prices are volatile and secure runways are essential for project continuation and growth.
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Disclaimer
This article is strictly for informational purposes only and should not be considered trading or investment advice
