Lido V2 Mainnet Launch is Here

Lido Finance, a staking mechanism protocol, launches Lido V2. It will enable a smoother Ethereum staking experience while moving the Lido towards a greater decentralized platform for staking.

What is Lido ($LDO)?

A cryptocurrency staking mechanism called Lido (LDO) is currently supported by Ethereum, Solana (SOL), Polkadot (DOT), and Kusama (KSM).

On proof-of-stake (PoS) blockchains like Ethereum, staking is the process of depositing cryptocurrencies as collateral in order to verify and build blocks. Blocks that are validated give stakers the opportunity to win rewards.

Users must lock up their ETH as of January 2023 in order to stake on Ethereum. The Shanghai network upgrade, which is anticipated to occur in the first half of 2023, will allow Ether stakers to withdraw their tokens.

What is Lido V2?

The Lido V2 upgrade brings a host of exciting new features to the platform with two key focal points:

  • Withdrawals: The Lido on Ethereum protocol upgrade allows Lido on Ethereum stakers to burn their stETH and exit the protocol at a 1:1 ratio, achieving a key milestone of an open on/off ramp into the Ethereum staking ecosystem.
  • Staking Router: The new modular architectural design allows for the development of on-ramps for new Node Operators, ranging from solo stakers to DAOs and Distributed Validator Technology (DVT) clusters. This will create a more diverse validator ecosystem.

Lido V2 Mainnet Launched. What’s different?

The most major Lido protocol update to date, Lido V2 vastly enhances the Ethereum staking experience while moving the Lido protocol closer to greater protocol decentralization.

The most user-facing feature of Lido V2’s two main components is Ethereum withdrawals. This enables Lido users who stake Ethereum to directly unstake ETH using the protocol.

Withdrawals are enabled

According to Nansen Research, Only 11,972.91 ETH has been requested to be withdrawn, with one user, 0xfdd…16a92 requesting 6k ETH. However, this is just a drop in the ocean compared to the 6,274,752 ETH staked with @LidoFinance.

For more information on Lido V2, check out the official document by Lido Finance; Introducing Lido V2.

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