Ether 2.0 staking service provider Lido Finance closes $2 million in funding

Lido Finance, a provider of Ether 2.0 (Eth2) staking services, recently secured $2 million in new funding.

Lido Finance, a provider of Ether 2.0 (Eth2) staking services, recently secured $2 million in new funding, The Block reported on May 6.

Ether 2.0 staking service provider Lido Finance closes

Lido shared the news exclusively with The Block on Monday, with Lido Finance saying the funding was backed by Semantic Ventures, ParaFi Capital, Terra, KR1, Stakfish and Stakfacilities, among others. Angel investors such as MakerDAO’s Rune Christensen, Aave’s Stani Kulechov and Synthetix’s Kain Warwick also participated in the round.

Lido Finance intends to launch its main network this month with the help of the new funding. Previously, the protocol’s test network was launched on Ether Goerli in late November.

Lido is a “liquid” Eth2 staking protocol, meaning it allows users to unlock the Ether (ETH) for staking at any time, facilitating the use of ETH to earn revenue in various DeFi applications. Lido does this by issuing its local token stETH for each ETH staking through its protocol. stETH is a pass-through ETH.

Of course, this service is also subject to a fee. According to information on the Lido Finance website, the program will charge a 10% fee on staking rewards. While some of the top cryptocurrency exchanges also offer Eth2’s staking service, Lido says that its solution “does not rely on a single party’s private key management.

Since the Eth2 recharge contract went into effect last month, ETH holders have continued to increase the number of ETH being staked. As of press time, the contract currently holds about 1.5 million ETH, valued at $870 million.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ether-2-0-staking-service-provider-lido-finance-closes-2-million-in-funding/
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