Lido Finance raises $2 million to advance Ethereum 2.0 infrastructure

The Lido Finance staking service attracted $2 million in investments from Semantic Ventures, ParaFi Capital, Terra, Stakefish and Staking Facilities. The Block reports.

The round also saw participation from MakerDAO founder Rune Christensen, Stani Kulechov, head of the DeFi project Aave, and Synthetix founder Kane Warwick.

The funds will be used to further develop the protocol, whose mainnet launch is expected this month. A test version of Lido Finance has been operating on the Goerli Ethereum testnet since November.

Lido offers users the ability to unlock ETH staked to use in DeFi applications. To this end, the project uses the native token stETH, a tokenised version of the coins staked in the Ethereum 2.0 ecosystem.

Lido will charge 10% of staking rewards for the service.

A few days after the launch of Ethereum 2.0, the deposit contract balance of the new network exceeded 1 million ETH.

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