Lido V2 Upgrade May Soon Be Live, Pending On-chain Vote

The V2 upgrade will introduce withdrawals and a staking router to simplify the crypto on-ramp

article-image

mstanley/Shutterstock modified by Blockworks

share

Popular Ethereum liquid staking solution Lido will soon deploy its V2 upgrade, pending an on-chain vote that will go live on Friday.

This much-anticipated upgrade will enable withdrawals for ether (ETH), and introduce a staking router that is intended to simplify on-ramps. This will make it easier to run individual staking nodes on the network.

Over 6.5 million ETH is currently staked with Lido, and only after the V2 upgrade can this locked-up ETH be withdrawn from the network. 

Withdrawal requests can be placed immediately after the upgrade and are expected to be finalized the following day, Eugene Mamin from the Lido development team wrote in a proposal.

Mamin notes that Lido will use a withdrawal vault to fulfill these requests. An estimated 270,000 ETH is currently in the vault, which is designed to streamline the validator exit process.

An initial snapshot vote saw that LDO holders overwhelmingly supported the upgrade plan, with 52 million LDO holders (almost 100% of voters) voting in favor of the proposal.

A series of security audits have also been conducted, where nine independent auditors have reviewed the V2 smart contract code, resolving issues related to withdrawals, claims, oracle reports, safety, consistency and NFT withdrawal.

Loading Tweet..

A post-Shapella look at staking

Following the Shapella upgrade, staking yields have remained high, a report provided by Staked, a non-custodial staking provider and Kraken subsidiary, showed. 

In fact, ETH staking demand too had seen a significant increase following the upgrade. 

The report shows that ETH deposits had increased by more than 4x at the beginning of May compared to deposits just a week before the Shapella upgrade. 

The month of March saw $600,000 worth of ETH staked, and this number increased to $750,000 in ETH just six days later.

Web3 startups such as the Lisk Foundation are also looking to move their bitcoin into ether where they see more opportunities to maintain “a sustainable long-term yield.”

Although they have plans to eventually stake ETH, this move will not be immediate, List’s co-founder Max Kordek tweeted

Staked predicts that staking demand will steadily increase over the next year to year and a half, from around 15% today to over 20%-35%.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million