Lido, the dominant liquid staking platform, is voting to execute its second iteration on the Ethereum blockchain, a pivotal moment for users in the decentralized finance (DeFi) community that want further decentralization and better on and off ramps into Ethereum’s staking ecosystem.
Lido’s Twitter account is calling v2 the “most important upgrade to date” since its launch in December 2020 as Ethereum is Lido’s first and largest market for liquid staking tokens.
With two main focal points, ETH staking withdrawals and the introduction of a “Staking Router” said to increase participation from a more diverse set of node operators, v2 on Ethereum comes as Lido commands the lead as the largest liquid staking platform in the DeFi space, with $11.77 billion in total value locked across the Ethereum ecosystem, per DefiLlama.
According to a blog post, “The implementation of withdrawals coupled with the Staking Router proposal will contribute to an increase in the decentralization of the network, a more healthy Lido protocol, and enable the long-awaited ability to stake and unstake (withdraw) at will, reinforcing stETH as the most composable and useful asset on Ethereum.”
The vote ends on May 15. If it passes, Lido’s smart contracts will upgrade and v2 will go live.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.