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). statistics According to defillama.com, Lido’s $7.92 billion TVL exceeds the $46.56 billion TVL currently held by defi by approximately 17.01%.
Lido is the largest owner of staked Ethereum, as the protocol dictates 29% of staked ether supplyLido’s Ethereum Derived Token Steth is the 13th largest market valuation in the cryptocurrency economy at $7.73 billion. Additionally, Lido has a token called the Governance Token. Lido Dao (LDO), with a market capitalization of approximately $1.96 billion on January 25, 2023.The day before, the Lido development team suggestion About withdrawal after Shanghai upgrade.
Ethereum developers shanghai hard fork occurred in March of this year and the main focus is to allow wager withdrawals. “The design proposed by Lido on the Ethereum protocol engineering team addresses these challenges with a withdrawal request queue within the protocol,” he explains the Lido team. summary Status of withdrawals via the Lido protocol. “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” function and a “Bunker” function. 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.
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