Andreessen Horowitz Invests $70 Million in Lido Finance

Venture firm Andreessen Horowitz (a16z) invested $70 million in the staking service Lido Finance.

Excited to share that @a16z has invested $70M in @LidoFinance, one of the easiest ways to stake ETH and other PoS assets, and we used Lido to stake a portion of our ETH holdings on the Beacon chain. More from @DarenMatsuoka & @_PorterSmith: https://t.co/vc2tzDJ3mS

— cdixon.eth (@cdixon) March 3, 2022

A16z said the move reflected the platform’s efficiency and simplicity, including its servicing of institutional clients. The firm also noted the decentralisation of the service through the DAO.

An advantage of Lido Finance is the availability of liquid staking. For the latter, the project uses the native token stETH, representing a tokenised version of the coins involved in the Ethereum 2.0 ecosystem Ethereum 2.0.

The total value of assets committed to Lido exceeds $13.7 billion. In addition to Ethereum 2.0, the service allows staking LUNA to receive bLUNA with an annual yield of 7.5%. You can also stake Solana to obtain stSOL and stake Kusama for stKSM.

As reported, the investment firm Paradigm sent 15,120 ETH to the Lido DAO treasury as part of a bid to buy 10% of the DeFi project’s token issuance.

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