The Lido Liquid Staking (LDO) protocol will finally enable Ethereum (ETH) withdrawals after the promulgation of the community-backed V2 update.
The protocol Announced this development on May 15, saying that final checks were underway and that users should stay tuned.
Voting for the update began on May 12 and was met with no resistance as all 59.5 million tokens involved in voting supported the update.
Lido V2 Update
The Lido V2 improvement would allow users of the decentralized staking protocol to withdraw ETH locked on the platform. Although the upgrade was completed in February, it required DAO approval before it could be fully rolled out to the Ethereum mainnet.
“The implementation of withdrawals together with the Staking Router proposal will contribute to an increase in network decentralization, a healthier Lido protocol and will enable the long-awaited ability to stake and unstake at will, reinforcing stETH as the most composable and active useful on Ethereum.”
The V2 update will further decentralize the protocol through the introduction of the Staking Router. This is a driver contract that will enable more node operators and more diverse sets of validators through the introduction of additional modules.
Several cryptanalysts have predicted that the update could lead to a shakeup among multiple liquid stake protocols. Spicy noted that the withdrawals could also lead to “a continuous gradual increase in the total staked Ether as the deposit signal has already completed 2 weeks without withdrawal sign.”
Meanwhile, Lido is currently the dominant liquid staking protocol, with over 6.2 million ETH staked through its platform. According to Nansen panelhe controls 79.5% of the liquid betting market.
$7k ETH withdrawn
Blockchain analytics firm Arkham Intelligence reported that approximately 3.6 ETH, roughly $7,000, has been withdrawn since Lido enabled withdrawal on its platform.
The firm added:
“We hope that these unprecedented events will not have an adverse impact on the market.”
Meanwhile, a developer of the Lido protocol, pshe.eth, saying someone led the executive transaction to get Lido’s first withdrawal NFT.
LDO is up 12%
Following the news, Lido’s LDO token rose approximately 12% in the last 24 hours to trade at $2.16253 at the close of this edition, according to CryptoSlate data.
The LDO token has enjoyed some advantage over the past week, rising 26%. However, its value is down 15% since the Shappella update was enabled, and the total value of assets locked in the protocol is down 2% compared to rivals such as Frax Ether and Rocket Pool (RPL), which posted double-digit gains. according to DeFilama data.
Lido Post Rallies 12% As It Allows Staked Ethereum Withdrawals, Appeared First On CryptoSlate.
