ETH Strategy collaborates with Lido to invest the treasury fund through stETH, optimizing staking profits and ensuring transparent on-chain asset management.
The collaboration with Lido allows ETH Strategy to efficiently accumulate ETH through liquid staking while maintaining tight control and transparency of the treasury funds according to on-chain standards.
MAIN CONTENT
ETH Strategy collaborates with Lido to invest the treasury fund through stETH.
The investment plan helps accumulate ETH through liquid staking.
Ensure transparent fund management, on-chain control (on-chain custody).
What is the purpose of ETH Strategy's collaboration with Lido?
ETH Strategy collaborates with Lido with the goal of investing part of the treasury fund in stETH to leverage the staking value of Ethereum while maintaining control and transparency through on-chain asset management.
This combination helps ETH Strategy both increase profitability thanks to Lido's liquid staking interest rates, while maintaining the ability to track and verify fund balances clearly on the Ethereum Blockchain. This is a strategic move to enhance asset value without losing the mechanisms of security and transparency.
Putting part of the capital into stETH through Lido provides dual earnings for ETH Strategy, while ensuring the fund is always protected and monitored on-chain.
DeFi analyst, 2024
What is the previous collaboration with Ether.Fi related to the current plan?
Previously, ETH Strategy announced a staking collaboration with Ether.Fi, expanding the partner network to optimize staking performance and diversify profit sources for the treasury fund.
Connecting multiple staking protocols like Ether.Fi and Lido allows ETH Strategy to minimize concentration risks while leveraging various incentives and services from staking-focused platforms in the Ethereum market, helping the fund operate more effectively and safely.
What are the main benefits of choosing liquid staking through stETH?
Liquid staking provides the ability to retain control of on-chain assets while still receiving benefits from staking and earning ETH.
stETH has good liquidity, easily tradable or usable as collateral in DeFi applications, enhancing asset flexibility and optimizing cash flow for asset management funds like ETH Strategy.
What challenges can be encountered when managing on-chain staking funds?
On-chain fund management requires a high-security system, while also being transparent and complying with regulations in a decentralized environment.
ETH Strategy must ensure that smart contracts operate reliably and safely, avoiding risks related to technical failures or cyber attacks to maintain trust for investors and partners.
Frequently Asked Questions
What specific benefits will the collaboration between ETH Strategy and Lido bring to investors?
Collaboration helps optimize ETH staking profits while maintaining transparency and safety of treasury assets according to on-chain standards.
Is liquid staking with stETH safe and flexible?
Liquid staking allows assets to remain tradeable or usable in DeFi, while gas fees and risks are lower compared to traditional staking methods.
Which entities did ETH Strategy collaborate with before Lido?
ETH Strategy previously collaborated with Ether.Fi to diversify staking methods and increase profitability of the treasury fund.
How does on-chain management effectively protect the fund?
On-chain management ensures transparency, reduces manipulation risks, and allows control over all transactions and the fund's balance in real-time.
Is investing part of the treasury fund through staking risky?
Although there are risks related to market volatility and smart contracts, diversifying across multiple staking protocols like Lido significantly mitigates these risks.
Source: https://tintucbitcoin.com/eth-strategy-hop-tac-lido-tang-loi-nhuan/
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