Venture capital giant Andreessen Horowitz invests $70,000,000 in Ethereum staking platform

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A Silicon Valley-based investment firm is investing tens of millions of dollars in a crypto project that aims to reduce staking costs on the Ethereum (ETH) smart contract platform.

Chris Dixon, a senior executive at venture capital titan Andreessen Horowitz, took to Twitter to to say its 812,000 subscribers that the industry leader has invested $70 million in Lido DAO (LDO), a decentralized autonomous organization (DAO) centered around staking the leading altcoin ETH.

“Glad to share that Andreessen Horowitz has invested $70M in Lido Finance, one of the easiest ways to stake ETH and other proof-of-stake assets.”

In a new corporate briefing, the company explains that it chose to invest in LDO because it helps reduce difficult financial hurdles that retail investors face when staking ETH, such as minimum than 32 tokens to run a node, a burden that centralized crypto exchange platforms do not have. dealing with problems.

“ETH has significant barriers today. Perhaps most notably, there is a minimum of 32-ETH required to operate a node. This alone prevents a significant number of network users from operating their own validator, and there is no native method to delegate one’s participation to circumvent these minimum capital requirements…

Due to these challenges, centralized exchanges have been best positioned to offer staking services due to economies of scale. Companies like Binance, Kraken, and Coinbase can easily pool their users’ assets (eliminating minimum capital requirements), stake them on their behalf (eliminating operational overhead), and issue a liquid market for that staked asset ( freeing up liquidity and allowing users to revert from staked ETH to ETH).

These services are valuable to their users, creating a great opportunity for a decentralized alternative. That’s why we are excited to invest in Lido, an efficient and decentralized staking platform.

It offers one of the easiest ways to stake ETH and other proof-of-stake assets today, while striving for decentralization through DAO governance. Lido democratizes staking.

The company’s cash injection sparked a rally for Lido as it traded hands at $2.31 at the time of writing, a 22% rise on the day.

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