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Lido Protocol Registers Largest Daily Stake Inflow, Fueled by Massive ETH Pledge from Justin Sun

Lido Protocol, a decentralized staking platform, recently announced on Twitter that it had registered its largest daily stake inflow so far with over 150,000 ETH staked. This is an important milestone for the platform, as it demonstrates the growing popularity of decentralized staking solutions among cryptocurrency investors.

However, what’s even more interesting is the activation of an important protocol safety feature called the Staking Rate Limit. This feature is designed to respond to large inflows of stake and address possible side-effects such as rewards dilution, without needing to pause stake deposits explicitly.

The Staking Rate Limit works by dynamically decreasing the amount of total stETH that can be minted at any one time based on recent deposits (sliding 24h window) and then replenishing this capacity on a block-by-block basis. This ensures that the platform can maintain a healthy staking environment, even when there is a sudden influx of staked assets.

It’s worth noting that the Staking Rate Limit affects all parties who may try to mint stETH, regardless of approach (frontend, direct contract call, integration, etc.). This means that if a “stETH cannot be minted at this time” error is encountered, users should either try a smaller amount or wait for the capacity to replenish.

While the activation of the Staking Rate Limit may seem like a setback for some users, it’s actually a positive development for the Lido Protocol and its users. By proactively managing staking inflows, the platform can ensure that rewards are not diluted, and the staking environment remains healthy and sustainable.

Overall, the Lido Protocol’s recent milestone of registering its largest daily stake inflow is a positive sign for the platform and the wider decentralized staking ecosystem. With the activation of the Staking Rate Limit, the platform can ensure that it maintains a healthy and sustainable staking environment, even in the face of sudden influxes of staked assets. This bodes well for the future of decentralized staking and its potential to revolutionize the world of cryptocurrency investing.

Lookonchain’s report identifies Justin Sun as the owner of this wallet.

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