Lido Community Conducting Snapshot of V2 Upgrade Design Approval

Lido, the biggest liquid staking platform on the Ethereum blockchain, has begun preliminary voting on a software overhaul that will also clear the way for staked token withdrawals.

On Tuesday, the protocol opened a snapshot vote on its version 2 (v2) upgrade, which includes a “Staking Router” said to ease onboarding of different validator subsets. The second element of the v2 upgrade will allow users to buy back the flagship steth tokens from the lido for the underlying ether tokens once the Ethereum Shanghai upgrade, better known by the name of "shapella".

Lido had 5,669,612 eth staked at the time of the press, according, giving steth a stock market capitalization of more than $9.2 billion.

snapshot vote gives the Lido community a chance to signal its support or opposition to the proposal before it goes to an on-chain vote, the final step to approving the mainnet upgrade. This stage of the process continues until the 7th of March; at the moment of the press, support is very close to unanimity.

In an email to CoinDesk, Misha Putiatin, a representative from Statemind.io, a blockchain security firm conducting a cover-to-cover audit of Lido's entire codebase, wrote "Lido is a #1 [decentralized finance protocol] by [total value locked] and withdrawals are #1 event of the year close to EIP-4844 scaling update so the incentive to do this right is massive. All eyes, some of them utterly malicious, are going to be on withdrawals this spring so we're going to play our heyday."

The upgrade will bring a "significant rewrite" to Lido’s on-chain code and off-chain code, according to the vote’s forum discussion.

In addition to removals and a new modular architecture for staking, the upgrade will rewrite the Oracle Smart Deal and non-linear lido software to process removals.

The vote for the approval of these vast infrastructure changes started even before the vetters selected by the lido had finished their work. Lido lists seven auditors involved in controlling the safety of its v2 code. Only one, rail safety, appears to have been completed. The audit perimeter is enormous, 7.5k lines of code.

Lido leads the pack

The snapshot for v2’s design approval coincides with Lido surpassing 5.6 million ETH deposits, worth roughly $9.3 billion, according to a Dune dashboard created by Lido’s analytics team. A D V E R T I S E M E N TA D V E R T I S E M E N TLido leads the pack

Last week, Lido’s share of total weekly deposits in Ethereum’s staking contract was 71.6%, as tweeted by Lido’s official Twitter account, which included Tron founder Justin Sun staking 150,000 ETH, or $240.7 million, on Feb. 25 in three transactions (123). Monday, he performed the largest staking transaction, per , by staking 88,000 ETH worth about $141.5 million.

The liquid staking sector across blockchains has a total value locked of $14.03 billion, making it the second-biggest sector in the crypto space surpassing decentralized lending and borrowing, according to TVL aggregator DefiLlama. The blockchain liquid staking industry has a $14.03 billion total locked-in value, This makes it the second largest industry in the crypto space exceeding decentralized lending and borrowing, by defillama aggregator tvl.

Lido’s LDO governance token has jumped 44% to $3.04 since the beginning of February, making LDO’s total market capitalization stand at almost $2.56 billion. A d v e r t i s e m e n ta d v e r t i s e m e n tlido’s ldo governance token has jumped 44% to $3.04 since the beginning of february, the total market capitalization of the OLO amounts to nearly 2.56 billion dollars.

Sage D. Young

CoinDesk reporters are not permitted to buy titles on DCG. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, PEOPLE, DOGE, OS, and HTR.