{"id":19949,"date":"2022-03-03T23:08:27","date_gmt":"2022-03-03T22:08:27","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=19949"},"modified":"2022-03-03T23:08:33","modified_gmt":"2022-03-03T22:08:33","slug":"a16z-invests-70m-in-ethereum-staking-protocol-lido-finance","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/a16z-invests-70m-in-ethereum-staking-protocol-lido-finance\/","title":{"rendered":"A16z invests $70M in Ethereum staking protocol Lido Finance"},"content":{"rendered":"\n
Venture capitalist firm Andreessen Horowitz<\/a> has raised $70 million for Lido Finance, an Ethereum staking solution. This is the protocol's first fundraising round since May 2021.<\/h5>\n\n\n\n
\"A16z<\/figure><\/div>\n\n\n\n

According to a representative for Andreessen Horowitz, the venture capital firm's investment in Lido is designed to help accelerate the adoption of decentralized staking solutions for Ethereum 2.0.<\/mark>\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/p>\n\n\n\n

With the implementation of proof-of-stake<\/a> (PoS) and other modifications, Ethereum 2.0 signals a substantial shift in the network's consensus method, potentially enhancing scalability and lowering fees. The switch to Ethereum 2.0, which started in November 2020, is still in progress.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/cdixon\/status\/1499436156861227008?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1499436156861227008%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fukraine-dao-raises-over-6m-via-nft-sale-to-aid-ukrainian-citizens\n<\/div><\/figure>\n\n\n\n

Staking Ether (ETH) presents considerable obstacles, according to Andreessen, given the high threshold for operating a node. Users must be able to stake at least 32 ETH, which is worth over $90,000 at current pricing, to become complete validators.<\/p>\n\n\n\n

Andreessen stated it is staking a portion of its ETH holdings on the BNB Beacon Chain<\/a> using the protocol, in addition to investing in Lido.<\/p>\n\n\n\n

The venture business claims that “staking with Lido avoids many of the practical hurdles that institutional investors have faced.”<\/p>\n\n\n\n

According to industry data, Ethereum's BNB Beacon Chain recently registered its 300,000th validator. Nearly 9.7 million ETH have been staked at the time of writing, for a total of $27.1 billion.<\/p>\n\n\n\n

Despite the fact that phrases like Ethereum 2.0 and Eth2 are still commonly used in the industry, the Ethereum Foundation declared in January that it will stop using them.<\/p>\n\n\n\n

The original Ethereum blockchain is now referred to as the “execution layer,” while the PoS chain is now referred to as the “consensus layer.”<\/p>\n\n\n\n

About Lido Finance<\/h2>\n\n\n\n

Lido Finance, which was founded in 2020, is a liquid staking<\/a> solution for Ethereum 2.0 that allows customers to stake their ETH with no lockups or minimum deposits.<\/p>\n\n\n\n

Lido also supports additional coins, as revealed by Cointelegraph, and has only lately introduced Kusama liquid staking.<\/p>\n\n\n\n

In May 2021, Lido completed a $73 million fundraising round sponsored by crypto venture capital firm Paradigm. Alameda Research, Three Arrows Capital, Digital Currency Group, and Alameda Research<\/a> also contributed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Venture capitalist firm Andreessen Horowitz has raised $70 million for Lido Finance, an Ethereum staking solution. This is the protocol’s first fundraising round since May 2021. According to a representative for Andreessen Horowitz, the venture capital firm’s investment in Lido is designed to help accelerate the adoption of decentralized staking solutions for Ethereum 2.0. With […]<\/p>\n","protected":false},"author":12,"featured_media":19950,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23,21],"tags":[6698,7830,7831,7832],"class_list":["post-19949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news","category-news","tag-a16z-2","tag-ethereum-staking-protocol","tag-lido-finance","tag-pos"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/03\/image-30.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/19949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=19949"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/19949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/19950"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=19949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=19949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=19949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}