Lido Protocol Reveals Plans for Withdrawal Feature Ahead of Ethereum’s Shanghai Hard Fork

While the Ethereum assemblage prepares for the upcoming Shanghai hard fork successful March, the improvement squad for the liquid staking task Lido revealed plans to make an in-protocol withdrawal feature. Lido’s squad is seeking assemblage feedback connected the connection that would let withdrawals aft the Shanghai upgrade is completed.

Lido Dominates Defi Economy With $7.9 Billion successful Total Value Locked, Team Prepares for Shanghai Withdrawals

As of the clip of writing, the decentralized concern (defi) liquid staking protocol Lido is the astir ascendant defi protocol today, successful presumption of full worth locked (TVL). Statistics from defillama.com amusement that Lido’s $7.92 cardinal TVL dominates the $46.56 cardinal TVL held successful defi contiguous by astir 17.01%.

Lido is the largest holder of staked ethereum arsenic the protocol commands astir 29% of the staked ether supply. Lido’s ethereum derivative token STETH is the 13th largest marketplace valuation successful the cryptocurrency system with $7.73 billion. Furthermore, Lido has a governance token called lido dao (LDO), which has a marketplace capitalization of astir $1.96 cardinal connected Jan. 25, 2023. The time prior, Lido’s improvement squad published a proposal concerning withdrawals aft the Shanghai upgrade.

Diagram of the Ethereum slashing penalties timeline highlighted successful Lido’s in-protocol withdrawal proposal.

Ethereum developers are determined to marque the Shanghai hard fork hap this March and the main absorption is allowing staked withdrawals. “The plan projected by Lido connected the Ethereum Protocol Engineering squad addresses these challenges with the in-protocol withdrawal requests queue,” the Lido squad explains successful a summary of the withdrawals scenery via the Lido protocol. “The process has to beryllium asynchronous, owed to the asynchronous quality of ethereum withdrawals,” the Lido developers add.

The Lido developers explicate determination would beryllium assorted modes of withdrawals including a “turbo” diagnostic and a “bunker” feature. Further penalties and slashing would beryllium codified for validators that interruption the rules. The summary explains however slashings impact a user’s withdrawal petition fulfillment.

“We are seeking the community’s feedback to marque definite that our connection takes each important considerations into relationship and to place immoderate imaginable improvements,” the Lido squad details. “Your feedback is invaluable to make a connection that is effective, efficient, and just for each stakeholders.”

What are your thoughts connected Lido’s connection for in-protocol withdrawal requests and the upcoming Shanghai hard fork? Do you deliberation this diagnostic volition person a important interaction connected the crypto and defi market? Share your opinions successful the comments below.

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