Eth2 staking protocol Lido raises $2 million in new funding

advertisement

Lido Finance, an Ethereum 2.0 or Eth2 staking service provider, has raised $2 million in fresh funding.

Sharing the news exclusively with The Block on Monday, Lido said the round was backed by Semantic Ventures, ParaFi Capital, Terra, KR1, Stakefish, and Staking Facilities, among others. Angel investors, including Rune Christensen of MakerDAO, Stani Kulechov of Aave, and Kain Warwick of Synthetix, also participated in the round.

With fresh capital at hand, Lido looks to launch its mainnet this month. The protocol's testnet has been available on Ethereum Goerli since late November.

Lido is a "liquid" Eth2 staking protocol, meaning it allows users to unlock staked ether (ETH) and use it in various DeFi applications to earn yield. Lido does so by issuing its native token stETH for every ETH staked via its protocol. stETH is a tokenized version of staked ETH.

The service comes at a cost, of course. Lido will charge a 10% fee on staking rewards, according to information on its website. Top crypto exchanges are also set to provide Eth2 staking services, but Lido said its solution "does not rely on a single party's private key management."

ETH holders continue to stake their coins since the Eth2 deposit contract went live last month. The contract currently has around 1.5 million ETH, worth about $870 million, staked at the time of writing.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More