Stake or sell: Ethereum staking giant Lido makes choices about its $30M ETH

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LidoDAO’s current inflows, which total around 1000 stETH, are sufficient to cover operating expenses for the moment. However, it is concerned that this may not be sustainable. News Collect this article as a NFT. The decentralized autonomous organization (DAO), behind Lido, the largest Ethereum staking pool, is weighing whether to sell or stake the $30m in Ether (ETH). Source: Lido Source: LidoThe proposal is made as ETH staking withdrawals are soon enabled through Ethereum’s Shanghai-Capella upgrades, which are expected to occur sometime in the early 2023 according the Ethereum Foundation. However, the DAO is concerned that too much staking could lead to it not having enough Ether “in case of emergency.” “Assets currently held by LidoDAO’s Treasury. Currently, ETH accounts for approximately 9% of the DAO’s $350 million treasury assets. Source:Lido.Regarding operating expenses, Steakhouse Financial suggested it may be necessary to swap Ether for a stablecoin in order to “preemptively secure additional runway. Steakhouse Financial pointed out that LidoDAO’s current inflows of approximately 1000 stETH per monthly means that the DAO is making between $1.3 million and 1.5 million per month. The price of Ether has fluctuated between $1,100 to 1,700 over the past few month. Source: Dune Analytics. Steakhouse Financial stated that these figures should be sufficient to cover monthly operating expenses. “But, they are still deciding if it is worth converting excess Ethereum into a stablecoin to better plan for market changes that could lead to higher operating expenses. Despite this, I have concerns about the liquidity of LUSD. USDT is still having its own problems. “It seems that most LidoDAO members favor partially selling and staking an amount of the 20,304 Ethereum locked in its Aragon smart contracts. This is because the total value locked (TVL), of stETH fell 6.66% between February 6-13. Lido Analytics: February 06-13, 2023TLDR. The total value locked (TVL) of stETH fell 6.66% between Feb. 6-13. pic.twitter.com/iWA9YccM6e– Lido (@LidoFinance) February 13, 2023
According to DeFiLlama, the TVL of Lido currently stands at $8.13 billion.