Crypto staking platform, Lido Finance, has presented plans for its most significant upgrade, Lido V2. This second version of its protocol is expected to support Ethereum staking withdrawals post-Shanghai and restructure the Staking Router to boost Lido’s decentralization.
Announcing this in a Twitter post, Lido Finance stated that Lido V2 would drive a more inclusive, open, and transparent platform while making staking simple, accessible, and decentralized.
Lido stated that the two significant aspects of this upgrade are the Staking Router and Withdrawals. The Staking Router is a controller contract enabling Lido to grow into an extensible protocol using a modular infrastructure. It handles the various modules as sets of validator pools, serving as a potential supply for the protocol.
Also, each module will manage an internal operator registry, store validator keys, and allocate stakes and rewards between operators participating in the module. Hence, the Staking Router will benefit everyone, including the stakers, node operators, and developers.
According to a statement by Lido finance,
“The Staking Router architecturally shifts the Lido protocol towards an aggregator strategy, encompassing a more diverse validator set and offering the possibility for different approaches, technologies, and greater overall flexibility throughout the protocol.”
On the other hand, Withdrawals will allow users to unstake their stETH and receive ETH at a 1:1 ratio. To avoid the complexities of the Ethereum network, the proposed withdrawal mechanism on Lido’s protocol will have two modes. They are the Turbo and Bunker mode.
Lido states that the Lido V2 has undergone intensive scrutiny and will pass through seven audits. Some of the audit providers are Sigma Prime and Certora.
