Decentralized staking platform Lido Protocol recently announced on Twitter that it recorded its largest daily staking outflow to date with more than 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.
#Lido Protocol Register the largest daily equity inflows, by #Justin Sun @azcoinnews https://t.co/AcdDbnY9Gv
— Kyptos (@azcoinnews) February 25, 2023
Even more interesting, however, is the activation of an important protocol security feature called the Staking Rate Limit. This feature is designed to accommodate large staking inflows and eliminate potential side effects, such as reward dilution, without explicitly suspending staking deposits.
The Staking Rate Limit works by automatically reducing the total amount of stETH that can be minted at any time based on recent deposits (24 hour sliding window), and then increasing this capacity block by block. This ensures that the platform maintains a healthy staking environment even if a large amount of assets are suddenly staked.
It’s worth noting that the pledge rate limit affects all parties attempting to mint stETH, regardless of the method used (UI, direct contract calls, integrations, etc.). This means that if encountering the “stETH cannot be minted at this time” error, users should try smaller amounts or wait for capacity to replenish.
While enabling the Staking Rate Limit may seem like a hindrance to some users, it is actually a positive development for Lido and its users. By proactively managing the flow of staking funds, the platform can ensure that rewards are not diluted and that the staking environment remains healthy and sustainable.
Overall, Lido Protocol’s recent maximum daily staking inflow milestone is a positive sign for the platform and the broader decentralized staking ecosystem. With the Staking Rate Limit enabled, platforms can ensure they maintain a healthy and sustainable staking environment, even in the face of a sudden influx of staking assets. This heralds the future of decentralized staking and its potential to revolutionize the world of crypto investing.
The Lookonchain report identified Justin Sun as the owner of the wallet.
Justin Sun bet 150,100 $ ether($240 million) @Lido Finance Now.https://t.co/VbqAnBqojA pic.twitter.com/QieWaJkmHY
— Lookonchain (@lookonchain) February 25, 2023
- Lido Finance joins forces with Optimism to launch a productive farming campaign for Stakers
- Lido considers selling or staking $30 million in ETH from treasury
according to Kyptos