Paradigm hedge fund and partners to buy 10% of Lido tokens

The developers of the DeFi project Lido DAO have put forward to the community for consideration a proposal to sell 100 million LDO (10% of issuance) for 21,600 ETH to hedge fund Paradigm and its strategic partners. At the time of writing, the potential investment size exceeds $43 million.

Paradigm intends to buy back 70 million LDO, and the remaining 30 million by the other round participants. The tokens will be locked for one year. After that, the lockup will be gradually released.

Lido is a solution for liquid staking in the Ethereum 2.0 network, which enables unlocking of staked coins for use in DeFi applications. To this end, the project tokenizes these coins and issues stETH tokens.

Lido is built as a decentralized autonomous organization (DAO). The project was founded by the creators of the p2p.org service, Konstantin Lomashuk and Vasily Shapovalov.

“In 2014, we dreamed that DAOs would appear that would manage on-chain capital in a fully transparent manner. Now this is happening; the best funds invest directly in community-governed smart contracts,” Lomashuk said.

According to Shapovalov, stETH is suitable for DEXs and Layer-2 solutions and is an “improved ether.”

Earlier Lido attracted $2 million from Semantic Ventures, ParaFi Capital, Terra, Stakefish and Staking Facilities.

Later the project struck a partnership with the DeFi protocol Unslashed Finance to insure users against penalties for incorrect validation of blocks in the Ethereum 2.0 network.

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