Grayscale, a renowned digital asset management company, has recently included Lido’s liquid staking protocol’s governance token in its DeFi fund. The firm announced that it has made adjustments to the fund’s portfolio by selling a specific amount of the existing Fund Components based on their respective weightings. The cash proceeds obtained from the sales were then utilized to purchase Lido’s token, known as LDO. According to a press release from the company last week, Lido’s token now holds the second position in the Grayscale DeFi fund, constituting 19.04% of the overall portfolio. Uniswap, denoted as UNI, remains the leading asset in the fund, accounting for 45.46% of the total fund value. Other cryptocurrencies present in the DeFi fund include Aave (AAVE) at 11.53%, MakerDAO (MKR) at 10.82%, Curve DAO Token (CRV) at 7.03%, and Synthetix (SNX) at 6.12%.

Lido’s Liquid Staking Solution Gains Popularity

Lido, a liquid staking solution designed for proof-of-stake cryptocurrencies, has experienced a significant surge in popularity since Ethereum’s transition to a PoS mechanism. The platform allows stakers to receive a substitute token in exchange for ETH or any other cryptocurrency they choose to lock up in a staking pool. Liquid staking has emerged as the favored method for individuals to stake ETH, attracting the attention of institutional investors as well. Presently, over 10 million ETH has been staked through a liquid staking pool as of July 8, with Lido accounting for nearly 80% of this total. Currently, Lido’s staked Ether (stETH) ranks as the seventh largest cryptocurrency, boasting a market capitalization exceeding $14.2 billion.

Grayscale’s Influence in the DeFi Ecosystem

Grayscale, recognized as one of the world’s largest digital asset managers, has strengthened its presence in the DeFi ecosystem through its recent acquisition of a substantial number of LDO tokens. This acquisition grants Grayscale voting rights on the protocol’s governance proposals, providing the asset management firm with the ability to shape policies that align with their interests. Consequently, Grayscale holds the power to influence Lido’s future trajectory.

Lido DAO Enhances Staking Rewards

In June, Lido DAO conducted a vote and decided to increase staking rewards for the largest participants in its staking pool. This decision further showcases the significance of Grayscale’s acquisition since the asset management firm now holds authority over Lido’s governance decisions, potentially impacting future policies related to staking rewards.


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