Binance List Andreessen Horowitz-Backed DeFi Altcoin Lido DAO

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Binance shocked the world on May 9 with the announcement that it will list Lido DAO (LDO), the second-largest decentralized finance (DeFi) platform. Binance is the largest cryptocurrency trading platform by trading volume.

Lido DOA and Liquid Staking in Ethereum

Lido Dao has over $15 billion in locked value. LDO is the governance token of Lido DAO, which allows holders to take part in community decisions and voting over the protocol’s future.

Andreessen Horowitz

Binance lists Lido Dao, a liquid staking solution known to democratize PoS.

It is a liquid staking solution for proof-of-stake blockchain. In liquid staking, users can share their rewards without locking in their digital assets or maintaining their own staking infrastructure. It allows users to stake tokens in many proof-of-stake blockchain networks, including Ethereum (ETH), Terra, Solana, Kusama and Polygon.

It has around $10 billion invested in Ethereum. It is one of the best ways to stake ETH and different proof-of-stake (PoS) properties immediately. Users can deposit ETH into a Lido smart contract to receive transferable stETH (Lido’s liquid stake of ETH). In return for this facility, Lido charges a small commission from its customers. Lido’s decentralized autonomous organization (DAO) grants Ethereum (ETH) token holders a host of powers.

Lido customers can stake tokens on the various network’s covered by it. The Lido DAO governs Lido’s liquid staking protocols.  

As per CoinGecko’s data, Binance’s announcement that it will list Lido, caused LDO to jump up to $3.37 from $2.65 Sunday, a 27% increase in the past 24 hours.

Jacob Blish, Lido’s head of business development and partnerships, revealed earlier that in 2022, the company has plans to add Polkadot, Avalanche, and Cosmos to its list.

Andreessen Horowitz and the LDO Stake

In March 2022, it was revealed that top venture capital firm Andreessen Horowitz had invested $70 million into Lido Dao. Chris Dixon, a top executive at Andreessen Horowitz took to Twitter to share the news saying, “excited to share that Andreessen Horowitz has invested $70 million in Lido Finance, one of the easiest ways to stake ETH and other proof-of-stake assets.” In a briefing, the company mentioned that it chose to invest in LDO as it helps reduce the taxing financial hurdles retail investors face when staking ETH.

Lido democratizes the proof-of-stake (PoS) process by making it easier for everyday crypto investors to access minimum deposit amounts and works as an alternative to centralized exchanges.

The Silicon Valley-based investment firm has plans to put billions of dollars into digital assets as it seeks to diversify its portfolio in the coming months.

Andreessen Horowitz justified its move saying “Lido democratizes staking. The Lido community’s unwavering commitment to decentralization really stood out to us. They recognize that for their approach to succeed, they will need to create a fully-trustless staking pool while also embracing alternative solutions.”

“Finally, Lido solves the competitive incentives between staking and seeking yield in DeFi. By issuing an Ethereum-native liquid token, Lido allows you to use staked ETH as collateral within DeFi in the same way you can use ETH currently.”

Binance Altcoin

Any coin or token that is not bitcoin but functions as a digital asset is known as an altcoin. Since the creation of Bictoin in 2008, over 2,000 altcoins have flooded the market. Some of the best altcoin exchanges include eToro, Binance, Cryto.com, and Coinbase.

Last week, the crypto market collapse seemed imminent as crypto prices fell following a big sell-off in US stocks. According to Investopedia, the crypto market has started mirroring the stock market as institutional investors enter the crypto market.

The post Binance List Andreessen Horowitz-Backed DeFi Altcoin Lido DAO appeared first on Industry Leaders Magazine.

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