As the Ethereum community prepares for the Shanghai hard fork scheduled for March, the development team of the liquid staking project Lido plans to create an in-protocol withdrawal feature Revealed, the Lido team is seeking community feedback on a proposal to enable withdrawals after the Shanghai upgrade is complete.
Lido controls Defi Economy with a total value of $7.9 billion locked in, and the team is preparing for Shanghai withdrawals
At the time of this writing, decentralized financial (defi) liquid staking protocol Lido is the most dominant defi protocol today in terms of locked total value (TVL). According to defillama.com statistics, Lido’s $7.92 billion TVL dominates the $465.6 billion TVL held in defi today by about 17.01%.
Lido is the largest holder of ethereum whose protocol is approximatelystaked, accounting for 29%of the staked ether supply. Lido’s ethereum-derived token,. stethhas the 13th largest market valuation in the cryptocurrency economy at $7.37 billion. Additionally, Lido has a governing token calledlido dao (LDO)with a market cap of approximately $1.96 billion on January 25, 2023. The day before that, Lido’s development team announced aproposalregarding withdrawals after the Shanghai upgrade.
Ethereum developers are determined to make the Shanghai hard fork happen this March, and the main focus is to allow staked withdrawals.” The design proposed by Lido on the Ethereum Protocol Engineering Team addresses these challenges with an in-protocol withdrawal request queue.” The Lido team explains insummaryof the withdrawal landscape via the Lido protocol.” Since Ethereum withdrawals are asynchronous, this process must be asynchronous.” adds the Lido developer.
The Lido developer explains that there will be various modes of withdrawal, including “turbo” and “banker” functions. In addition, penalties and thrashing would be codified for validators who break the rules. The summary explains how thrashing will affect the fulfillment of a user’s withdrawal request.
“We are seeking feedback from the community to ensure that our proposal takes into account all important considerations and to identify potential improvements.” Your feedback is invaluable in helping us create a proposal that is effective, efficient, and fair to all stakeholders.”
What do you think about Lido’s proposed in-protocol withdrawal requirements and the upcoming Shanghai hard fork? Do you think this feature will have a significant impact on the crypto and defi markets? Share your views in the comments below.
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