The digital asset management firm Grayscale added Lido liquid staking protocol’s governance token to its DeFi fund.
The firm announced that it has adjusted the DeFi fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings, and using the cash proceeds to purchase Lido (LDO).
Lido token now ranks second in the Grayscale DeFi fund, making up 19.04% of it, the company revealed in a press release last week.
Uniswap (UNI) remains as the no.1 asset in the asset, accounting for 45.46% of the fund.
Other crypto assets 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 Continues To Gain Popularity
Lido, a liquid staking solution for proof-of-stake cryptocurrencies, has gained massive popularity since Etherem’s shift to PoS mechanism.
Lido allows stakers to receive a substitute token in exchange for ETH or any other crypto they choose to lock up in a staking pool.
Liquid staking has become the most preferred way to stake ETH as it has also attracted institutional investors.
As of July 8, over 10 million ETH was staked via a liquid staking pool. Out of this, Lido accounts for nearly 80%.
Currently, Lido staked Ether (stETH) is now the seventh largest cryptocurrency with a market cap over $14.2 billion.
Grayscale Eligible to Vote on Lido’s Governance Proposals
Grayscale, one of the world’s largest digital asset managers, has gained more authority in the DeFi ecosystem with its latest move by acquiring a seizable chunk of LDO tokens and gaining voting rights on the protocol’s governance proposals.
The asset management firm could influence Lido’s future by shaping policies that are favorable to them.
Lido DAO voted in June to increase staking rewards for the largest participants in its pool.
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