Do you know about the existence of a decentralized autonomous organization (DAO) that allows ETH holders to stake Ethereum 2.0 without having any negative impact on its liquidity? The DAO also gives all participants a vote.
This means that every ETH holder can earn some Lido tokens, new decentralized finance (DeFi), and a staking protocol. However, this is only going to last until the 12th of February this year.
LDO holders will see many opportunities to earn more digital assets
Apart from the ongoing opportunities to earn a considerable amount of ETH via the DAO program, LDO holders are expected to see more opportunities to earn more digital assets as the year proceeds. As of this report, over 60,000 ETH have been staked on Lido, thereby increasing users’ opportunities to win more of the second-largest cryptocurrency in the world.
Lido currently occupies Ethereum’s sweet spot, ensuring that Eth 2.0 finds its way into Defi. It also gives many traders and crypto investors the chance to stake on Ethereum’s new beacon chain while it simultaneously unlocks the ETH’s value.
This news might sound somewhat incredulous, but the move has been producing incredible results so far. Kraken has introduced a similar product, which Coinbase is expected to follow suit as soon as it finds the best and distribution partners or strategy that can be trusted to produce great results.
Sharing his thoughts on Lido’s way of ensuring that holders earn more ETH in the coming days, crypto expert Stani Kulechov, one of the earliest Lido backers, said the move is interesting because tokenized staked ETH can serve as collateral while they get more liquidity in ETH. According to him, LIDO holders can capitalize on Eth 2.0 staking to earn more ETH in the long run. He is, however, anxious to see how much people are willing to stake for better and higher earnings.
Lido deploys a unique way to distribute its governance token
To ensure good participation from its users and better results, Lido is reportedly set to deploy a distributing strategy that is completely different from that of COMP or Yearn. It should be recalled that COMP was a program introduced by Compound which involves a yield farming plan that will function forever. As for Yearn, it unloaded all its governance token all super fast. Lido will be releasing its governance token in a gradual format depending on stakeholders’ decisions.
Lido’s governance token is known as LDO, which is more than 1 billion in number. To compensate the founders of the tokens, Lido is expected to give 64% of the overall LDO to the founder and its first set of clients. Meanwhile, a giant stash won’t be given to anyone as it will be locked for 12 months. As we speak, only 4 million tokens have been liquefied, while close to 360 million tokens are stored in the DAO treasury. It is disclosed that the latest round of distribution will begin later in the week