Lido may stake all of its treasury ETH in its own protocol

If the proposal passes, the Lido protocol will earn an estimated $2 million annually

article-image

WindAwake/Shutterstock modified by Blockworks

share

The community that governs Lido is currently voting on whether or not it should stake all of the ether in its treasury in its own protocol. 

The purpose of the proposal will be to create productive assets in Lido’s treasury that can offset operating costs.

Based on current yield prices — around 4-6% a year — it is estimated that the Lido protocol will earn an extra $2 million annually if they stake their current 20,000 supply of ether (ETH). 

Lido’s treasury management committee members have all voted to support the proposal.

“Great option to generate some yield with Lido’s treasury without incurring unnecessary risks,” a committee member who goes by the pseudonym marcbcs wrote.

The main phase of voting has already begun, with almost 100% of members voting in favor of the proposal at the time of publication.

An objection phase will follow the main phase of voting and will close on June 30 at 1:47 pm ET. 

Although unlikely, the main concern around staking all its treasury’s ETH would be any smart contract risks associated with the Lido protocol itself.

Price volatility of ETH could also impact operating expenses. 

Despite this, the pseudonymous karpatkey, another member of Lido’s treasury management committee, said if Lido does choose to place all its ETH in its own protocol, this may be a positive indicator of its own technological abilities.

“​​Having Lido DAO depositing the entire ETH treasury holdings in its own protocol is a testament to the confidence in the technology and Node Operator set,” karpatkey wrote.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

The MicroStrategy founder understood digital scarcity long before Bitcoin, and it’s a story of bubbles, brokers and a “monster bull run.”

article-image

DAS panelists shared strong venture capital takeaways, from how big a raise should be to the role VCs play in the industry

article-image

Titan Exchange CEO Chris Chung says Titan bests Solana’s incumbent DEX aggregator Jupiter on price 80% of the time

article-image

The SEC’s newest statement on PoW mining adds further clarity, though a commissioner points out its limits

article-image

Markets react to Fed Chair Jerome Powell’s comments at yesterday’s FOMC meeting

article-image

At DAS, the US president noted he’s called upon Congress to enact “simple, common-sense rules” for stablecoins and market structure