LidoDAO Exploring Options to Manage ETH in Treasury

• LidoDAO has published four different principles for the community.
• Lido holds 17.5 billion DAI, which accounts for 4.65% of the treasury.

Lido, the liquidity staking protocol for Proof-of-Stake (PoS) blockchains has published a new proposal for Treasury choices. Lido holds more than $8 billion in staking and the number of Ethereum (ETH) tokens is valued at around $7.9 billion. The number of stakers on the network is approximately 275 K.

The Lido Decentralized Autonomous Organization (DAO) has published four different principles to the community, on “how the DAO should manage its treasury”. To be specific in simple terms, the organization wishes to know the staker’s opinion. As the withdrawal of ETH staking will be put into action after Ethereum upgrades in the near future.

The ideas of the proposal are staking ETH, selling ETH, include more stablecoins by replacing existing staked ETH. And the final choice is, to sell the extra ETH for “operating expenses”.

ETH in LidoDAO 

LidoDAO allows the users to stake the assets for daily rewards and there is no minimum limit for the staking value. In the overall staking, 98% of the asset is ETH, to be precise 20,304 ETH. The protocol also generates approx 1000 ETH per month, which is huge for running the monthly expenses. 

The selling and staking options are also not exclusive in the proposal. The token holders can decide on the portion for staking and selling. The second most-held asset after ETH is DAI Stablecoin. As per the Lido data, 17.5 billion DAI, accounts for 4.65% of the treasury.

And DAI is the only stablecoin, so diversifying to other stablecoins will boost the platform’s stability in the present market condition.

Total Value Locked (TVL) also decreased by 6.66% in the previous week. $8.07 billion is in the TVL in the current situation. This is a direct impact of the ETH price fall, at the time Ethereum is trading at a $1551 price.

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