Lido DAO Developers Propose Selling 10,000 ETH From Treasury

One of the key developers of the DeFi protocol Lido Finance has put for community consideration a предложение to sell 10,000 ETH (~$17.7 million) from the project’s treasury in the event of a continued market downturn.

\n\n

“Crypto markets, volatile as they may be, have recently appeared to tilt toward a bear phase,” the statement said.

\n\n

A user with the handle kadmil recommended to the management DAO to diversify about half of its ETH into stablecoins to cover the Lido Finance team’s operating expenses.

\n\n

“We propose selling 10,000 ETH from treasury funds for DAI. This should cover roughly two years of expenses for a 50-person team and the protocol’s operating costs,” he wrote.

\n\n

The expert noted that the DAO’s treasury contains \”substantial funds\”. The assets include ~166 million Lido DAO (LDO) tokens, 20,940 ETH and 3,836 stETH for a total of about $230 million. However, he warned that if ETH prices fall sharply, the DAO’s funding options would be severely constrained.

\n\n

According to the developer, Lido’s operating expenses are denominated in stablecoins, such as USDC.

\n\n

LDO is used to reward liquidity providers and referral bonuses. Selling the governance tokens used for governance would be undesirable due to \”unnecessary price pressure,\” kadmil believes. The 3,836 stETH involved in staking generate income for the treasury, and converting them would be uneconomical, he noted.

\n\n

As of writing, the value of assets locked in Lido stood at $7.9 billion. By this measure, the protocol ranks fourth on the DeFi Llama.

\n\n

As reported, amid market conditions Bitso и и Gemini announced layoffs. Coinbase приостановила набор работников as one of the cost-cutting measures.

\n\n

2TM Group, the parent company of the Brazilian platform Mercado Bitcoin, also announced layoffs of part of its staff.