Lido’s decentralized autonomous organization (DAO) is debating whether to sell or stake $30 million in Ether (ETH) from its treasury. Steakhouse Financial submitted four proposals, one of which involves staking a portion or all of its ETH on Lido as Lido Staked ETH (stETH).
Another option would be for LidoDAO to sell 20,304 ETH in exchange for a stablecoin. The proposal comes as Ethereum’s Shanghai and Capella upgrades are set to enable ETH staking withdrawals. The DAO is concerned that excessive staking may result in a lack of Ether in the event of a crisis.
ETH currently accounts for 9% of the DAO’s total treasury holdings of over $350 million. Steakhouse Financial suggested that LidoDAO may need to swap Ether for a stablecoin in order to “preemptively secure additional runway”.
Between February 6 and 13, the total value locked (TVL) of stETH fell 6.66%, following a -7.22% drop in the price of ETH. Lido led in new Ethereum stakes, accounting for 27% of weekly deposits. Lido’s TVL is currently $8.13 billion.
