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Lido Community Decides on Ethereum V2 Upgrade for Enhanced Decentralization and Accessibility

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Lido Community Decides on Ethereum V2 Upgrade for Enhanced Decentralization and Accessibility
Lido Community Decides on Ethereum V2 Upgrade for Enhanced Decentralization and Accessibility

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Lido, the popular liquid staking platform, is currently conducting a vote for the implementation of its second iteration on the Ethereum blockchain.

Lido’s V2 Upgrade Enhances Decentralization and Accessibility in Ethereum’s Staking Ecosystem

This move is a significant moment for participants in the decentralized finance (DeFi) community, as it aims to enhance decentralization and provide improved on and off ramps into Ethereum’s staking ecosystem.

Lido’s Twitter account has referred to this version, known as v2, as the “most important upgrade to date” since its launch in December 2020. Ethereum holds a crucial position for Lido as its primary and largest market for liquid staking tokens.

The v2 upgrade on Ethereum focuses on two key aspects: ETH staking withdrawals and the introduction of a “Staking Router.” The latter is designed to encourage greater participation from a diverse range of node operators.

Lido currently stands as the leading liquid staking platform within the DeFi space, with a total value locked across the Ethereum ecosystem amounting to $11.77 billion, according to DefiLlama.

The integration of withdrawals and the proposed Staking Router will contribute to decentralizing the network further, promoting a healthier Lido protocol, and fulfilling the long-awaited capability of staking and unstaking (withdrawal) at will.

This reinforces the significance of stETH as a highly composable and valuable asset on the Ethereum platform.

The voting process will conclude on May 15, and if approved, Lido’s smart contracts will undergo an upgrade, marking the official launch of v2.

At the time of writing, all participating LDO token holders have voted in favor of deploying the upgrade. The governance token for Lido, LDO, has experienced a 5.37% surge in the past 24 hours, reaching a value of $1.88, as reported by CoinMarketCap.

Lido DAO Deliberates Fund Restoration After SushiSwap Attack Experiencing Shift in Consensus

Lido DAO governance had been in the process of deliberating whether to restore funds that were unintentionally directed to its execution layer rewards vault as a result of a SushiSwap attack that caused a breach of $3.3 million last month.

The majority of the funds that were lost can be attributed to Michael Patryn, also known as Omar Dhanani, who is suspected of being a repeated scammer and was involved with the now-defunct QuadrigaCX. While more than 885 ether has been successfully recovered, approximately 39.8 ETH was rerouted to the Lido DAO treasury and remains unrecovered at this time.

After the submission of a proposal to return the funds, the Lido team conducted a snapshot vote. The vote revealed that an immense majority of the Lido community (99.92%) decided against taking any action and opted not to return the 39.8 ETH to Sifu.

During a discussion, Misha Putiatin, the CEO of Statemind, expressed concerns about potential consequences for the protocol if the proposal were approved. He highlighted the lack of a clear framework, explaining that accepting hack reimbursement proposals could significantly burden Lido DAO.

Being responsible for determining the legality of activities within other protocols goes beyond its usual capacity and could expose Lido DAO to unforeseen legal risks.

Recently, there has been a notable change in the voting outcome observed within Lido DAO’s governance. Overnight, the vote regarding the return of funds that were unintentionally directed to its execution layer rewards vault during a SushiSwap attack has experienced a complete reversal.

Consequently, the Lido DAO governance has made the decision to return the funds, marking a departure from their prior stance. This shift signifies a fresh consensus within the Lido community concerning the retrieval of the breached funds.

Lido DAO’s Struggle in the Bear Market, Rebound Gives Hope Amidst Lingering Concerns

The recent bear market has made its presence felt once again, leaving uncertainty regarding its duration. Since the beginning of March 2023, the cryptocurrency market has experienced a significant decline, causing anxiety among investors about the future of digital currencies.

Lido DAO too has been severely affected by the behavior of the market, although it did manage to make a slight rebound recently. While the upgrade may have helped push the price temporarily, investors remain concerned about the future trajectory of the token. We have a fair prediction of our own and believe it could be approaching the $2 level.

Lido DAO (LDO), a decentralized autonomous organization focused on building the staking infrastructure for Ethereum 2.0, has been heavily impacted by the prevailing market volatility. Over the past few days, Lido DAO (LDO) has experienced significant lows, leading to distress among its investors.

Currently priced at $1.88, with a trading volume of $80 million, Lido DAO (LDO) is expected to trade within a range of $2.31 to $2.68 before the start of Q4 2023, as investors continue to add the token to their portfolios amidst the ongoing price fluctuations.

With that being said, the target could very well distort given the volatile nature of the market. It’s best for investors to do their own research before investing in any token.

We recommend that investors put their efforts into new cryptocurrencies instead. These presale cryptos have stronger fundamentals and allow investors to make profits before the assets face the volatility of live trading.

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