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Lido Dominates Booming Market for Ethereum 2.0 Staking Derivatives

One of the new ways to invest in Ethereum is to secure money to a future improvement of the Ethereum blockchain, which is already running in parallel, known as the Beaconchain. This process is called “pile driving”. Investors can place Ethereum (ETH) in the Beacon chain and earn over 5% annual returns.
This is significantly higher than most traditional bank accounts and the returns offered by the US Treasury, but the problem is that investors may not be able to “remove” your signs for more than a year. .. .. For example, the Beacon chain will only allow withdrawals after the most power-consuming Proof of Work has been completed and the transition from Ethereum to the game-proof blockchain has been completed.
To address this issue, crypto entrepreneurs have created a new market called “Ethereum 2.0 Equity Derivatives.” This is an essentially special derivative token that represents participating ETH. These markers can be used as additional performance collateral in decentralized finance applications (DeFi). The goal is to provide liquidity to ether investors. Even if their signs are tied to the beacon chain, until next year’s update is scheduled. Take your cake and eat it, so to speak.
And one Decentralized Autonomous Organization (DAO), especially Lido, has achieved a dominant market share of 80% in this fast-growing area. Recently, the amount of ether, the native Ethereum blockchain sign that Lido has walked on, has surpassed a million milestones ($ 3.7 billion worth), a 45-fold increase over the past year. This is equivalent to 15% of the total. ETH Ethereum. Beacon chain, according to Dune Analytics. “With the progress towards Eth 2.0, there is growing interest in betting on ETH, and Lido is one of the best decentralized places to do so,” said Jeff Dorman, Chief Investment Officer at Arca Funds. Told CoinDesk in a Telegram chat. ..