On July 26, Lido Finance, a decentralized staking liquidity solution, was completed"Treasury Diversification #2"A total of 609 community members participated in the voting. This vote decides whether to sell 10 million LDO (Lido Finance governance token) to Dragonfly Capital, a venture capital institution, at a price of US$14.5 million.

The voting results show that 43 million LDO tokens (accounting for 66.61%) voted "No - the proposal needs more work", and 21 million LDO tokens (accounting for 33.31%) chose "sell tokens, but lock the position One year" option, less than 0.02% of the votes chose "sell tokens without lock-up". Lido officials stated that based on the voting results and discussions on the research forum, the proposal will be revisited and a new vote will be conducted as soon as possible.

DeFillamaAccording to the data, Lido Finance currently has more than 6 billion US dollars in lock-ups, the Ethereum ecological lock-up ranks second, and the entire encryption ecosystem ranks third. It is also currently the largest ETH 2.0 pledge liquidity solution. Founded in 2018, Dragonfly Capital focuses on cryptocurrency investment, and its portfolio includes MakerDAO, Compound, 1inch, dYdX, Avalanche, ByBit, Matter Labs, etc.

The core reason for Lido Finance’s token sale this time is to survive the ongoing crypto bear market.

announcementannouncement, there are currently about 75 full-time contributors (a total of 20 work departments) contributing to Lido DAO, and the two-year capital cost is about 16.81 million US dollars. Lido's treasury currently holds 158 million LDO tokens ($251 million), 20,940 ETH ($32 million), 5 million stETH ($7 million), and a handful of other tokens.

Therefore, since June this year, Lido DAO has been discussing how to diversify its treasury funds in the form of stablecoins, ensuring that the current R&D and business of the project can continue to operate for 1-2 years without being affected by macroeconomic constraints. conditional impact.

June 3, community memberskadmil proposal, to sell 10,000 ETH in treasury funds for DAI, which can directly meet the 50-person team, protocol maintenance, and operating expenses for about two years. It said that if LDO tokens are sold directly, the market may face selling pressure; while stETH can get pledge rewards in the future, it is meaningless to sell at a discount now. However, when the proposal was still in the discussion stage of the community, ETH began to fall in a waterfall, directly cut in half from $1,800, and finally died without a problem.

July 19, community membersjbeezy proposes, sold 2% (20 million) of treasury LDO tokens to Dragonfly Capital and other strategic investors, of which Dragonfly Capital obtained 10 million, and the unit price of LDO was 1.452153 US dollars. "Dragonfly has been a major player in the DeFi ecosystem and is uniquely positioned to bring its expertise to LidoDAO governance and act as a liaison to other DeFi project teams that further solidify Lido as the market-leading liquidity staking solution." program. Other strategic partners will play a similar role.”

However, the proposal has caused controversy. The focus is as follows: 2% of the LDO tokens sold are not locked and immediately enjoy voting rights; for $1.50.

In the financing in April last year, the Lido community sold 10% of the tokens to Paradigm and other strategic partners, agreeing on a one-year lock-up period and a one-year linear unlocking period. Comparing the two, this plan seems to be biased, so the proposer was questioned to have conflicts of interest with Dragonfly. Therefore, the community finally proposed to add a lock-up period to the sale, which led to this vote.

However, judging from this vote, the community has great differences on converting the held LDO or ETH into stable coins, and has not reached a consensus several times. The low price of the currency is a very important factor. Neither ETH nor LDO is currently the best time to sell. Taking LDO as an example, the lowest price was US$0.4 (June 18), and the current price is US$1.36, which is 80% lower than the historical high of US$7.3.

Frankly, the Lido DAO, which is the heart of Lido Finance's decentralized governance, is remiss. The lack of fund management has led to the unhealthy financial situation of its treasury. It was not until the market fell sharply in June that it began to realize cash, but it has already missed the best time. It is hoped that more decentralized community projects can learn lessons, and it is best to hire a professional financial advisor.