As the Ethereum community prepares for its Shanghai hard fork scheduled for March, the development team of liquid staking project Lido has revealed plans to create an in-protocol withdrawal function. Lido’s team is seeking feedback from the community on their proposal to allow retraction after the Shanghai upgrade is complete.
Lido Locks $7.9 Billion To Dominate Defi Economy, Team Prepares For Shanghai Exit
At the time of writing, Lido, a decentralized finance (defi) liquidity staking protocol, is the most dominant defi protocol today in terms of Total Value Locked (TVL). According to defillama.com statistics, Lido’s $7.92 billion TVL exceeds the $46.56 billion TVL currently held by defi by approximately 17.01%.
Lido is the largest holder of staked Ethereum, with the protocol claiming around 29% of the staked Ether supply. Lido’s Ethereum derivative token STETH is the 13th largest market valuation in the crypto economy at $7.73 billion. Additionally, Lido has a governance token called lido dao (LDO) with a market cap of approximately $1.96 billion on January 25, 2023. The day before, Lido’s development team released a proposal for withdrawal after Shanghai’s upgrade.
Ethereum developers are determined to bring the Shanghai hard fork to life in March this year, with the main focus being on enabling wager withdrawals. “The design proposed by Lido on the Ethereum protocol engineering team addresses these challenges with a withdrawal request queue within the protocol,” the Lido team explains in his Overview of Withdrawals Via the Lido Protocol. increase. “Ethereum withdrawals are asynchronous, so the process has to be asynchronous,” he adds the Lido developer.
The developers of Lido explain that there are different withdrawal modes, including a “Turbo” and a “Bunker” feature. Further penalties and thrashings are codified for validators who violate the rules. The summary explains how thrashing affects the fulfillment of user withdrawal requests.
“We are seeking community feedback to ensure our proposals take into account all key considerations and to identify potential improvements,” the Lido team elaborated. . “Your feedback is invaluable in creating an effective, efficient and fair proposal for all stakeholders.”
What are your thoughts on Lido’s 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 crypto and defy markets? Share your views in the comments below. please.
image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS, OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.