While the Ethereum community prepares for the upcoming Shanghai hard fork in March, the Lido liquidity staking project development team has revealed plans to create a withdrawal feature in the protocol. Lido’s team is seeking community feedback on a proposal to allow withdrawals once the Shanghai upgrade is complete.
Lido dominates default economy with $7.9 billion in total locked, team prepares for withdrawal in Shanghai
As of press time, decentralized financial liquidity (defi) staking protocol Lido is the most dominant defi protocol today, in terms of total value locked (TVL). Statistics from defillama.com shows that Lido’s $7.92 billion TVL dominates the $46.56 billion TVL held today by about 17.01%.
Lido is the biggest bet ethereum holder when protocol commands around 29% afterward provide ether deposit. Lido .’s ethereum derivative token STEEL is the 13th largest market valuation in the crypto economy at $7.73 billion. Furthermore, Lido has an governance token called Lido knife (LDO)had a market capitalization of around $1.96 billion as of January 25, 2023. A day earlier, Lido’s development team published a suggestions regarding the withdrawal after the Shanghai upgrade.
Ethereum Developers Determined to Make Shanghai hard fork takes place this March and the main focus is on allowing deposit withdrawals. “The design proposed by Lido in the Ethereum Protocol Engineering team addresses these challenges with an in-protocol withdrawal request queue,” the Lido team explained in an article. summary on the context of withdrawals through the Lido protocol. “The process must be asynchronous, due to the asynchronous nature of ethereum withdrawals,” added the Lido developers.
The Lido developers explained that there will be various withdrawal methods including a “boost” feature and a “shelves” feature. Other penalties and cuts will be codified for validators who violate the rules. The summary explains how the slashes affect the execution of a user’s withdrawal request.
“We are looking for community feedback to ensure that our proposal takes into account all important considerations and to identify any potential improvements,” the Lido team detailed. “Your feedback is invaluable to creating an effective, efficient and fair proposition for all stakeholders.”
What do you think of Lido’s proposal for withdrawal requests in the protocol and the upcoming Shanghai hard fork? Do you think this feature will have a significant impact on the crypto and defi markets? Share your opinion in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons
deny the responsibility: This newspaper only gives true information. This is not a direct offer or solicitation to buy or sell, or to recommend or endorse any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.