Liquid staking platform Lido launched the second version (V2) of its mainnet to allow users to redeem their staked Ether (stETH) assets and receive Ethereum (ETH) tokens in a 1:1 ratio.
The announcement came a month after Ethereum developers released the Shanghai upgrade to enable staking withdrawals.
Calling it the platform's most important change to date, Lido stated that the V2 upgrade underwent comprehensive security audits from Sigma Prime, MixBytes, Certora, and four other firms before its release.
The upgrade has also modified the platform’s architectural design by enabling a staking router. Lido claimed that the implementation of the staking router will create a more diverse validator ecosystem by enabling the development of on-ramps for new node operators.
As per Lido’s blog post, the platform will take less than a day to process withdrawals requested by users with less than 1000 stETH tokens in their wallets. On the other hand, withdrawal requests greater than 5,000 ETH may require a maximum of 10 days to complete.
Moreover, Lido will represent each withdrawal request by minting a corresponding NFT to user wallets. Clients can then use the NFTs to claim their staking rewards. However, users will lose the right to claim their ETH rewards should they sell the NFT associated with their withdrawal request.
According to blockchain intelligence firm Parsec, Lido has received withdrawal requests for over 700 stETH tokens (worth $1.25M) since the platform released the V2 upgrade. Similarly, data from Nansen revealed that Lido users have successfully withdrawn 277K ETH tokens.
LDO, the governance token of Lido DAO, recorded an uptrend in its pricing following the launch of the V2 upgrade. The token is valued at $2.12 as of writing, up by 9.1% in the last 24 hours.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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