1. BITBILIHome
  2. Article

Grayscale Investments ramps up DeFi interest  with Lido addition

• 24 views

TL;DR Breakdown

  • rayscale Investments, the world’s leading digital asset manager, has expanded its DeFi Fund by including Lido (LDO), marking a significant development in the liquid staking space.
  • Liquid staking allows investors to earn staking rewards without locking up their tokens, providing increased liquidity and flexibility. This trend is gaining popularity as it caters to growing demand in the DeFi sector.
  • The addition of LDO to Grayscale’s DeFi Fund signals rising institutional interest in liquid staking services and could potentially influence wider adoption and evolution in this space, despite the current performance of the DeFi Fund.

Description

In a significant move, Grayscale Investments, the world’s largest digital asset manager, has expanded its Decentralized Finance (DeFi) Fund with the inclusion of Lido (LDO). The addition bolsters the prominence of liquid staking services, spotlighting a potentially transformative trend in the broader crypto ecosystem. Liquid staking: The next big wave in DeFi Lido, a pioneer … Read more

In a significant move, Grayscale Investments, the world’s largest digital asset manager, has expanded its Decentralized Finance (DeFi) Fund with the inclusion of Lido (LDO). The addition bolsters the prominence of liquid staking services, spotlighting a potentially transformative trend in the broader crypto ecosystem.

Liquid staking: The next big wave in DeFi

Lido, a pioneer in liquid staking services, represents a new class of financial products designed to enhance the utility of staked assets. Unlike traditional staking mechanisms that restrict the liquidity of staked assets, Lido allows Ethereum holders to stake their tokens without losing liquidity. Users can stake, trade, lend, or employ their assets, while continuing to earn staking rewards.

Grayscale’s decision to add LDO into its DeFi Fund portfolio underscores a burgeoning interest in liquid staking protocols. Lido’s services, along with similar offerings from Rocket Pool and Stakefish, cater to an increasing demand for financial flexibility and accessibility in the DeFi sector. The technology essentially issues a representative token – for instance, stETH when users stake ETH – that can be traded or utilized just like the original token.

The growth of liquid staking is driven by two primary factors. Firstly, investors can earn staking rewards without sacrificing access to their assets, a highly sought-after feature in the current financial climate. Secondly, liquid staking potentially elevates the liquidity of staked assets, allowing users to freely trade or employ their tokens without needing to unstake them.

Grayscale and Lido: A vote of confidence in liquid staking

By incorporating LDO into the DeFi Fund, Grayscale signals a mounting institutional interest in liquid staking services. Notably, LDO now forms the second-largest holding in the DeFi Fund, superseded only by Uniswap (UNI).

Grayscale’s adoption of LDO has been partly driven by CoinDesk’s DeFi Select Index (DFX), the fund’s primary index provider. CoinDesk Indices’ quarterly reviews determine the makeup of their indices, with LDO meeting the market cap and liquidity requirements for DFX in their latest reconstitution.

This integration into Grayscale’s portfolio reflects a positive outlook for the future of liquid staking and suggests that the approach could eventually become the norm for staking cryptocurrencies.

Conclusion

As the demand for staking rewards grows, liquid staking services are likely to gain increasing popularity. The inclusion of LDO into Grayscale’s DeFi Fund marks a significant leap for the liquid staking space, signifying a rising institutional acceptance that could foster wider adoption in the future.

Despite the DeFi Fund’s size and recent performance, Grayscale’s move may stimulate further development in the liquid staking arena and incite new services and products. Given its numerous advantages over traditional staking, such as enhanced liquidity and flexibility, the future of liquid staking shines bright, promising a transformative impact on the crypto staking landscape.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Grayscale Investments ramps up DeFi interest  with Lido addition

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月9日 23:36
Next 2023年7月10日 02:24

Related articles

  • U.S. House Committee advances legislation to halt CBDCs

    TL;DR Breakdown The U.S. House Financial Services Committee is advancing two bills to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) without Congressional approval. The topic has become a divisive issue, even entering presidential campaigns, with candidates like Robert F. Kennedy Jr. and Ron DeSantis opposing a CBDC due to financial privacy concerns. Despite the legislative push against CBDCs, Rep. Stephen Lynch (D-Mass.) reintroduced a bill advocating for a digital dollar pilot program, highlighting the ongoing debate and division among lawmakers. Description The United States House Financial Services Committee, chaired by Patrick McHenry, is progressing with two bills aimed at preventing the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) without Congressional approval.   The first bill, known as the Digital Dollar Pilot Prevention Act or H.R. 3712, was introduced by Representative Alex Mooney (R-W.V) in … Read more The United States House Financial Services Committee, chaired by Patrick McHenry, is progressing with two bills aimed at preventing the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) without Congressional approval.   #NEW: Chairman @PatrickMcHenry…

    Article 2023年9月18日

  • Americana opens up physical vault for digital collectibles

    TL;DR Breakdown Americana has announced that its ‘phygital’ vault for collectibles is now open for public use. The company highlights the process of storing collectibles in its vault. Description In recent years, the intersection of blockchain technology and collectibles has given rise to innovative platforms aiming to revolutionize the way valuable items are exhibited, shared, and traded. Among these pioneering platforms is Americana, a venture that began as a community-specific project and has since transformed into a comprehensive one-stop shop. Americana seamlessly blends the … Read more In recent years, the intersection of blockchain technology and collectibles has given rise to innovative platforms aiming to revolutionize the way valuable items are exhibited, shared, and traded. Among these pioneering platforms is Americana, a venture that began as a community-specific project and has since transformed into a comprehensive one-stop shop. Americana seamlessly blends the convenience of an online marketplace with the security of a physical vault, all while leveraging blockchain technology for owner authentication. Americana is teaming up with firms to provide the feature Headed by CEO Jake Frey, whose Frey Labs…

    Article 2023年7月24日

  • Bankrupt lender Celsius founder faces $40M bail and traveling restrictions

    TL;DR Breakdown Alexander Mashinsky, the founder and former chief executive of bankrupt crypto lender Celsius, has recently been granted bail by a U.S. District Judge. Mashinsky will be prohibited from traveling and will be unable to open new bank or cryptocurrency accounts.  This arrest and subsequent bail arrangement are part of a coordinated effort by various entities, including the Department of Justice, the Federal Trade Commission, and federal securities and commodities regulators. Description Alexander Mashinsky, the founder and former chief executive of bankrupt crypto lender Celsius, has recently been granted bail by a U.S. District Judge. The bail amount has been set at a staggering $40 million following his arrest on Thursday on charges of fraud. According to court documents, Mashinsky has pleaded not guilty to seven counts, … Read more Alexander Mashinsky, the founder and former chief executive of bankrupt crypto lender Celsius, has recently been granted bail by a U.S. District Judge. The bail amount has been set at a staggering $40 million following his arrest on Thursday on charges of fraud. According to court documents, Mashinsky has…

    Article 2023年7月14日

  • Prime Trust faces customer withdrawal issues – Nevada regulator raises concerns

    TL;DR Breakdown Prime Trust, a prominent financial services business, is having problems fulfilling customer withdrawal requests. Prime Trust customers have been shocked by the announcement of its withdrawal issues Prime Trust’s financial status has “considerably deteriorated,” making it “unsafe or unsound” to conduct business, according to Nevada’s Department of Business and Industry’s June 21 cease and desist order. Description Prime Trust, a reputable financial services provider, has had trouble satisfying customer withdrawal requests recently. The reason for these distill being determined is unknown. However, sources say the Nevada regulator’s action suggests underlying worries about Prime Trust’s financial stability and liquidity. The FID, which supervises state-regulated trust organizations, discovered that Prime Trust has been running … Read more Prime Trust, a reputable financial services provider, has had trouble satisfying customer withdrawal requests recently. The reason for these distill being determined is unknown. However, sources say the Nevada regulator’s action suggests underlying worries about Prime Trust’s financial stability and liquidity. The FID, which supervises state-regulated trust organizations, discovered that Prime Trust has been running a significant deficit and might even be insolvent….

    Article 2023年6月26日

  • Elon Musk goes after Twitter acquisition lawyers

    TL;DR Breakdown Elon Musk’s X Corp has filed a lawsuit against law firm Wachtell, Lipton, Rosen & Katz over a $90 million fee charged during Twitter’s acquisition. Musk claims the law firm amended its fee arrangement to gain an “improper bonus payment” and took advantage of a vulnerable corporate client. The fee was paid during a time of tumult when Musk was initially reluctant to close the Twitter deal, leading to a lawsuit from Twitter. Description Silicon Valley’s famed pioneer Elon Musk is taking on Wall Street’s elite in a groundbreaking lawsuit that encapsulates a blend of tech, finance, and legal drama. Musk’s entity, X Corp, which now owns Twitter, is squaring off against one of Wall Street’s most prestigious law firms, Wachtell, Lipton, Rosen & Katz, in a battle over … Read more Silicon Valley’s famed pioneer Elon Musk is taking on Wall Street’s elite in a groundbreaking lawsuit that encapsulates a blend of tech, finance, and legal drama. Musk’s entity, X Corp, which now owns Twitter, is squaring off against one of Wall Street’s most prestigious law firms,…

    Article 2023年7月9日
TOP