As the Ethereum community prepares for the upcoming Shanghai hard fork in March, the Lido liquid staking project development team revealed plans to create a withdrawal feature within the protocol. The Lido team is seeking community feedback on the proposal that would allow withdrawals after the Shanghai update is complete.
Lido dominates Defi economy with $7.9 billion in total value locked up, team prepares for Shanghai withdrawals
As of this writing, the decentralized finance (defi) liquid staking protocol Lido is the most dominant defi protocol today, in terms of total value locked (TVL). Statistics from defillama.com show that Lido’s $7.92 billion TVL dominates the $46.56 billion TVL held in defi today at approximately 17.01%.
Lido is the largest Ethereum holder staked, as the protocol mandates. 29% of the ether staked. Lido ethereum derivative token STETH it is the 13th largest market valuation in the cryptocurrency economy at $7.73 billion. Additionally, Lido has a governance token called read dao (LDO)which has a market capitalization of around $1.96 billion as of January 25, 2023. The day before, the Lido development team published a proposal regarding withdrawals after the Shanghai update.
The Ethereum developers are determined to make the Shanghai hard fork happen this March and the main focus is to enable staking withdrawals. “The design proposed by Lido in the Ethereum Protocol Engineering Team addresses these challenges with the withdrawal request queue within the protocol,” the Lido team explains in a resume of the retreat landscape through the Lido protocol. “The process has to be asynchronous, due to the asynchronous nature of ethereum withdrawals,” the Lido developers add.
The Lido developers explain that there would be several modes of withdrawals, including a “turbo” feature and a “bunker” feature. More penalties and cuts would be codified for validators who break the rules. The summary explains how the reductions affect the fulfillment of a user’s removal request.
“We seek feedback from the community to ensure that our proposal takes into account all important considerations and to identify potential improvements,” the Lido team details. “Your feedback is invaluable in creating a proposal that is effective, efficient, and fair to all stakeholders.”
What do you think about the Lido proposal for withdrawal requests within the protocol and the upcoming Shanghai hard fork? Do you think this feature will have a significant impact on the cryptocurrency and defi market? Share your thoughts in the comments below.
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