Investment firm Paradigm sent 15,120 ETH to the Lido DAO treasury as part of a proposal to buy back 10% of the DeFi project’s token issuance, according to Arjun Balaji, a partner at the firm.
.@paradigm has transferred 15,120 ETH to LidoDAO as a part of the LDO Treasury Diversification proposal 🏝 https://t.co/WIZHxj8v5e
— Arjun Balaji (@arjunblj) May 5, 2021
The envisaged the sale of 100 million LDO to Paradigm hedge fund and other strategic partners. The decision received 100% support.
Paradigm is buying back 70 million LDO. The amount transferred in Ethereum, at the time of writing, was valued at nearly $51 million.
According to CoinGecko, the Lido token is trading around $2.37. The value of the coins Paradigm would receive is $165.9 million. At the close of voting on the proposal, the quotes were a little above $1.
The repurchased tokens will be locked for one year, after which the lock-up will unwind gradually on a linear schedule.
Earlier, in December, Lido attracted $2 million in investments from Semantic Ventures, ParaFi Capital, Terra, Stakefish and Staking Facilities.
In February, the project joined a partnership with the DeFi protocol Unslashed Finance to insure users against penalties for incorrect block validations in the Ethereum 2.0 network.