2 years ago
Venture superior steadfast Andreessen Horowitz (a16z) has invested $70 million successful Lido Finance, a liquid staking supplier that makes it easier to involvement ether and different proof-of-stake (PoS) assets. The steadfast besides utilized Lido to involvement an undisclosed information of a16z Crypto’s ether holdings connected the Beacon chain.
The Ethereum blockchain plans to power this summertime from its existent proof-of-work validation strategy to PoS, which is much vigor businesslike and lets users validate web transactions done impermanent token deposits (or staking) successful speech for rewards.
Ethereum needs to promote ether holders to involvement their tokens oregon a unafraid PoS modulation won’t beryllium possible, which is wherever Lido Finance comes in.
“Lido solves the competitory incentives betwixt staking and seeking output successful DeFi. By issuing an Ethereum-native liquid token, Lido allows you to usage staked ETH arsenic collateral wrong DeFi successful the aforesaid mode you tin usage ETH currently,” wrote a16z Crypto’s Daren Matsuoka and Porter Smith successful the announcement post.
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