Lido Finance, the leading liquid staking protocol on ethereum, has reached a major milestone in its development by tapping one million ethereum validators.
Basically, this represents a massive scale of participation in ethereum 2.0 staking.
Such a large number of validators is expected to improve the security and resilience of the network, making it stronger against potential attacks.
Additionally, it would further decentralize the validation process, thus reducing the influence of any individual entity or group.
According to data compiled by Dune Analytics, Lido Finance currently holds the majority of 28.5% of the Ether staked, followed by Coinbase at 13.6%, with over 27% of the total Ether supply currently staked.
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1 million validators pic.twitter.com/fELATWQPIu
– Lido (@LidoFinance) twitter.com/LidoFinance/status/1784849162212724820?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>April 29, 2024
These protocols, like Lido, have seen rapid growth due to their liquidity benefits, allowing users to receive Lido Staked eth (stETH) in exchange for their staked Ether, which can be used in other DeFi protocols. This is in contrast to regular staking, where the staked Ether remains locked and unusable during the staking period.
Liquid staking protocols like Lido Finance play a crucial role in “democratizing” staking.
By allowing users with limited capital to stake their assets, these protocols remove the barrier of the 32 Ether requirement needed to run individual validator nodes. This accessibility opens up the possibility of betting to retail users who may not have the resources to do so independently.
Through Lido and similar platforms, users can pool their assets, collectively reach the required threshold, and earn rewards for staking. In addition to promoting decentralization, it attracts a broader audience to participate in protecting and validating the network.
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