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Andreessen Horowitz said that Lido, the Ethereum staking protocol, removes many complexities that investors face in staking
Lido is an Ethereum staking protocol that got a staggering $70 million investment from venture capitalist firm Andreessen Horowitz. A spokesperson of a venture capital firm stated that investment from Andreessen Horowitz in Lido is meant to support the decentralized staking of solution’s adoption for Ethereum 2.0.
Ethereum 2.0 has been a buzzword for crypto enthusiasts, especially Ethereum blockchain’s followers, since it was announced in November 202. . It’s an upgrade of the traditional Eth network, including a shift of the network from a proof-of-work consensus mechanism to proof-of-stakes and a lot of additional features in which smart contract blockchain was lacking. These upgrades will get speed scalability and lower the transaction fees.
Ethereum 2.0 is projected to be enormous, and Lido is the protocol for working and providing the staking solutions. Venture Capital giant recognizes the potential of protocol and hence came forward to fund it.
As Anderseen stated, users face significant barriers to becoming validators operating a node. It needs staking of Ether, which turns out to be the high threshold for many. For now, users need to stake a minimum of 32 ETH to be a validator in currency prices worth $90,000.
Further venture capital firms said that staking with Lido removes numerous operational complexities faced by institutional investors.
Lido Finance was founded in 2020 and offered liquid stacking solutions to stake Ethereum 2.0. The protocol allows users to stake ETH with no minimum deposits or lockups. Lido protocol also supports tokens other than Ethereum. Recent additions included Kusama Liquid staking on the protocol.
Lido had also received a $73 million funding in May 2021 from crypto venture capital firm Paradigm. The funding round was organized by Paradigm, also joined by Digital Currency Group, Three Arrows Capital, and Alameda Research.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
