Lido DAO Proposes Selling or Staking $30M in ETH to Secure Runway
• Lido DAO (LDO) is considering selling or staking its $30M in ETH ahead of the Shanghai upgrade, which will enable ETH staking withdrawals.
• The proposal outlines a plan to sell all or part of the treasury denominated in ETH and use the funds for additional runway in current market conditions.
• Lido DAO might end up selling part of the ETH and staking what’s left.
Lido DAO Proposes Selling or Staking Its $30M in ETH
Lido DAO (LDO), the governing body behind the largest Ethereum staking provider, is trying to decide what to do with its treasury ether ahead of the Shanghai upgrade, which will enable ETH staking withdrawals. On February 14, Steakhouse Financial, the Lido DAO branch responsible for managing the treasury, made three proposals concerning the 20,304 ETH and surplus stETH that it holds.
Selling vs Staking
One of the proposals outlined a plan to sell all or part of the treasury denominated in ETH with an estimated value of around $30 million. If sold, these funds would be used to secure additional runway in current market conditions as Lido DAO has a monthly run rate between $1.3-$1.5 million per month along with holding $20.1 million in DAI reserves. Additionally, they are also debating whether they should sell their excess stETH holdings to add onto their budgeting capital as well. Another option proposed was to stake both their held ETH and excess stETH holdings instead of selling them off entirely.
On top of this debate on how best to manage their funds, Ethereum Name Service (ENS) also passed a proposal recently allowing them to sell 10,000 ETH ($13 million). This decision was made due to ENS wanting to lower their exposure from 100% held in Ether back down towards a more manageable level for their reserves going forward into 2021 and beyond.
Voting Process & Why It Matters
While voting on these proposals has yet to start amongst members within LidoDAO itself people may find it interesting seeing how such an important governance body manages its funds given current market conditions impacting crypto at large today .
In conclusion there is still no definite answer on what direction LidoDAo will take when deciding how best too manage their holdings as this decision could have lasting impacts across Ethereum moving forward into 2021 so stay tuned for more information on this subject matter as it develops !