- They own 20,000 ETH
- This will allow protocols to earn up to $2 million a year from steaking
The community of liquid steaking platform Lido Finance votes for an important change. They propose to invest all the air from their coffers into steaming on their own protocol.
The essence of the proposal is to create derivatives in Lido’s coffers, and use the profits from them to compensate for operating costs. With 11 hours to go, management has already voted yes.
Based on the current ETH yield (about 4-6% per year), the Lido protocol could generate an additional $2 million in revenue.. This figure is based on the entire stock of project coins (20,000 ethers).</nbsp;
In the comments, users are mostly positive about such an idea.
“A great opportunity to generate profits without unnecessary risks.”
“If Dai has problems (and it does), and stETH has problems, it would be nice to have a third option to pay bills”
The only key risk associated with hosting the entire ETH treasury is the threats of smart contract hacking if the Lido protocol has a vulnerability. There is also some risk associated with the volatility of ETH prices. This could temporarily impact the team’s operating costs.
Remind that the Lido Finance platform was upgraded to version V2 in mid-May. Users were given the ability to withdraw ether from steaking. More than 6 million ETH were previously blocked in the Lido protocol.