Feb 15, 2023

LidoDAO Deliberates $30M ETH Stake or Sale

The decentralized autonomous organization (DAO) behind Lido — the largest Ethereum staking pool — is currently discussing whether to sell or stake its $30 million in Ether (ETH).

A proposal was submitted on Feb. 14th by the DAO’s financial unit, Steakhouse Financial, that considers four options, one of which includes staking part or all of its ETH on Lido in the form of Lido Staked ETH (stETH).

The proposal comes as ETH staking withdrawals will soon be enabled through Ethereum’s Shanghai and Capella upgrades, which are expected to take place sometime early this year, according to the Ethereum Foundation.

The four proposals submitted by Steakhouse Financial to the LidoDAO asking how it should manage its treasury. Source: Lido

The DAO is considering whether it is worth converting excess stETH into a stablecoin to better prepare for any change in market conditions that may lead to increased operating expenses.

Steakhouse Financial noted that with LidoDAO’s current inflows at about 1000 stETH per month, the DAO is making approximately $1.3 million to 1.5 million per month with the price of ETH hovering between $1,100 and $1,700 over the past few months.

The monthly inflow of stETH on Lido has steadily increased since January 2021. Source: Dune Analytics

These figures should be “sufficient to cover monthly operating expenses,” but they’re still deliberating whether it is worth converting excess stETH into a stablecoin to better prepare for any change in market conditions that may lead to increased operating expenses.

A business development representative from LidoDAO said that they’re not particularly thrilled with the current state of the stablecoin market.

It appears as though most LidoDAO members are in favor of partially selling and staking a portion of the 20,304 ETH locked in its Aragon smart contract.

The total value locked (TVL) of stETH fell 6.66% from Feb. 6 to Feb. 13, currently sitting at $8.13 billion, according to on-chain metrics platform DeFiLlama.

The proposal comes as the crypto and web3 space is rapidly evolving. With new technologies and products emerging, such as Non-Fungible Tokens (NFTs), businesses are looking for new ways to promote and market their products.

NFTs have become increasingly popular, and more and more businesses are looking to leverage NFTs to increase their reach and grow their user base. Twitter NFT marketing has become an incredibly popular way to do this, and many businesses have started to hire NFT marketing agencies to help them with this.

Web3 agencies are also becoming increasingly popular, as they specialize in helping companies navigate the web3 space, and provide them with the tools and resources they need in order to succeed.

With all of these new opportunities, businesses need to be aware of the financials associated with them. Selling NFTs can be lucrative, but businesses need to be aware of the costs associated with it, and make sure they have the resources to cover them. Staking ETH can also be a great way to generate more revenue, but businesses need to be aware of the risks associated with it.

Ultimately, it is up to the businesses to decide what is best for them, but understanding the financial implications of their decisions is essential.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.