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


WindAwake/Shutterstock modified by Blockworks


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.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


MicroStrategy discloses the purchase of 16,000 bitcoin throughout November


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks


DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely


Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US


Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said