The world’s largest crypto exchange is adding a decentralized staking platform to its roster of assets.
In a new announcement, Binance says it is Lido DAO (LDO), Lido Finance’s governance token that offers staking solutions on several popular blockchains.
Lidos Decentralized Autonomous Organization (DAO) grants holders of the Ethereum (ETH) Token voting rights on project parameters, upgrades and staking protocols.
Silicon Valley-based investment firm Andreessen Horowitz (a16z), which announced its intention to invest billions of dollars in the digital asset space in January, also announced in March that it backed Lido.
The a16z post states that Lido democratizes the Proof-of-Stake (PoS) process by both making minimum deposit amounts achievable for everyday crypto investors and offering an alternative to depending on centralized exchanges.
“That’s why we’re excited to invest in Lido, an effective, decentralized staking platform. It offers one of the easiest ways to stake ETH and other PoS assets today while aiming for decentralization through the governance of the DAO.
Lido [also] dissolves the competitive incentives between staking and striving for returns in DeFi [decentralized finance]. By issuing an Ethereum-native Liquid Token, Lido allows you to use staked ETH as collateral within DeFi in the same way you can currently use ETH.
Lido DAO has been on a roller coaster of price action over the past day, initially surging 50% from $2.25 to $3.40 on Binance news before vertically falling back to its original valuation as the entire crypto markets flashed red.
LDO then worked its way back up to $2.53 but is currently down almost 5% on the day and is trading at $2.26.
Source: Crypto News Deutsch