New record for Lido – Lido is the most requested Liquid Staking protocol on Ethereum. This breaks record after record and thus becomes the largest DeFi protocol in terms of TVL.
150,000 additional ETH in staking
Lido is a protocol of Liquid Staking. Therefore, it allows users to participate in the block validation process, without having to operate a validator node themselves.
On February 25, the Lido teams revealed that they had recorded a record day. In effect, 150,000 ETH, i.e. 240 million dollars, were filed on the protocol.
“The Lido protocol recorded its largest daily staking influx so far, with over 150,000 ETH deposited in staking. »
According to information reported by Hildobby of Dragonfly Capital, these funds would have been deposited by Justin Sun, the founder of the Tron network. In practice, this one deposited the funds in 3 transactions of 50,000 ETH.
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Staking Rate Limit: quesaco?
In its announcement, Lido explains that this massive deposit of ETH triggered the triggering of a security feature called “Staking Rate Limit”.
“This protocol security feature, called Staking Rate Limit, is a dynamic mechanism to respond to large inflows into staking and address possible side effects such as reward dilution, without having to explicitly halt staking deposits. »
In practice, this mechanism will come reduce the total amount of stETH which can be minted at any given time. And this, according to recent filings. The full capacity is then replenished block by block at a recovery rate of approximately 6,200 ETH/hour.
Lido: the unstoppable protocol
Lido is a protocol that has been at the heart of attention since the beginning of 2021. Indeed, at its peak in April 2022, the protocol had $20 billion worth of TVL.
Unfortunately, the collapse of Terra Luna has melted cash. This event brought the protocol to $4 billion in June 2022.
Since then, the TVL of the protocol has steadily increased, eventually reaching $9.31 billion.
Thus, this increase has enabled Lido to place itself tops the ranking of DeFi protocols in terms of TVL. Indeed, it has overtaken the giant MakerDAO, long spearhead of DeFi and its 7.2 billion dollars of TVL.
It remains to be seen whether the enthusiasm around Liquid Staking will continue when withdrawals open during the deployment of the Shanghai hard fork. Indeed, many investors are turning to these solutions to ensure better liquidity of their staking deposits.
On his side, Shapella update set to roll out to Sepolia testnet. Thus, it will be activated on February 28 and should land on the mainnet next March.
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