As per the recent development, the popular liquid staking protocol, Lido has enabled Ethereum (ETH) withdrawals for the first time. More than 260 staked Ether was redeemed within the first three hours, which is worth approximately $500,000. However, Ethereum was upgraded to allow withdrawals of staked Ethereum back in April, but Lido did not exactly integrate with the upgrade in any way. Furthermore, the version 2 upgrade by Lido would allow users to unstake their ETH and receive ETH at a 1:1 ratio.
stETH withdrawals dashboard:
– individual & aggregate withdrawal requests.
– current withdrawal queue.
– stETH large balance changes.https://t.co/HxZc2Izfax@parsec_finance @wilburforce_ pic.twitter.com/2ZBZWzcrTZ
— mhonkasalo.lens (@mhonkasalo) May 15, 2023
Unstaking and receiving ETH on a 1:1 ratio would take up to almost a day for a few users if the exit queue on the Beacon Chain is empty. The maximum time required by a validator to exit and withdraw from the staking queue currently stands at 5 days and 14 hours. At the same time, the new version by Lido would offer users an NFT, mainly as an intermediate step between requesting to unstake and claiming ETH. As soon as a user requests to unstake, they would be offered a Lido-issued NFT that would represent their withdrawal request. The NFT would be used to claim ETH rewards, which leads to the NFT being burned.
The version 2 upgrade set the stage for the price of the Lido DAO token to shoot up. The majority of the crypto market is trading in the red, but the Lido DAO token has made impressive gains. Lido (LDO) has surged by an impressive 10% in the previous 24 hours, however, it is currently trading at $2.0952. The total market cap of the token currently stands at the $1.8 billion mark.
Lido (LDO) Makes a Surprising Move
Prior to the introduction of the Shapella upgrade, it was not possible for validators to withdraw their staked ETH that was held in a staking contract. However, Lido users faced the same issue even after the Shapella upgrade as the firm’s software did not have a withdrawal function.
Based on data from Parsec, it has come to light that it took almost an hour for users to understand that they could now withdraw. The first hour managed to produce 4 ETH worth of transactions of staked ETH. However, things started to speed up an hour later as redemption surged to 227 ETH. However, the pace of the redemptions fell to a mere 44 ETH the following hour. More than $500,000 worth of ETH was withdrawn in the first three hours of the withdrawals being enabled.
Lido mentioned that the version 2 upgrade was subject to a total of nine audits from a number of firms. Some of them include Statemind and MixBytes, and so on. However, all firms have completed the audit process, except for Oxorio. At present, it is believed that the firm would conclude the audit process by the end of May.