Ethereum
Lido Sees Increase of About 100,000 Ethereum Staked Following SEC Review
Pool reported an increase in Ethereum staked on its platform despite the fact that the United States Securities and Exchange Commission (SEC) classifies its staking programs as securities in its legal action against Consensys.
Ethereum Staking Increase
A July 2 report showed that Lido users wagered an additional $95,616 ETH between June 24 and July 1. This increased the total value of assets staked on the platform by 1.26%, reaching $33.48 billion.
During this period, Lido has been the leader in Ethereum net deposit flows, surpassing centralized exchanges like Binance and Gate.io and the fast-growing re-staking project Liquid Ether.fi.
Lido stETH TVL (Source: Lido)
The platform also revealed significant activity in its wrapped staked ETH (wstETH) on Layer 2 networks like Scroll, Base, Arbitrum, Optimism, etc. The total number of assets on these blockchains increased by 7.19% to 141,586, bringing the 7-day trading volume to $1.23 billion.
However, the annual percentage rate (APR) for staked ETH decreased slightly, dropping from 0.04% to 2.96%.
Decentralization of nodes
Lido is strengthening its decentralization efforts by launching a Community Staking Module (CSM) to promote more decentralized Ethereum node operations.
According to the authorities DocumentationCSM will integrate a diverse range of node operators, including solo stakers, into the network. The module will also enable permissionless entry for node operators. He added:
“The ultimate goal of this module is to enable permissionless entry into the pool of Lido node operators on Ethereum and give individual participants the ability to participate in the protocol, thereby increasing the total number of independent node operators across the entire Ethereum network.”
The move would mark a clear departure from its previous approach, which required its DAO to approve a new node operator before they were added to the platform. However, its current initiative would allow solo staking to become more attractive and accessible to validators of interest by introducing a “reasonably low collateralization requirement for node operators” and requiring “no secondary token collateral.”
The module is in early adoption mode on the Holesky testnet and is expected to transition to a permissionless state on July 11, 2024.
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Published in: Ethereum, Technology