Lido Finance recently upgraded to version 2, becoming the largest liquid staking protocol on Ethereum, allowing holders of staked ether (stETH) to withdraw at a 1:1 ratio. However, only 0.42% of the withdrawals have been processed thus far.
Aftermath of V2 Upgrade
21Shares estimated that Lido Finance owns 31% of total ETH staked with around 6.7 million stETH in supply, and 448.04k stETH has been sent to Lido for request withdrawals. Celsius Network accounts for the vast majority of withdrawal requests with 448.04 stETH, but Lido has a 470k ETH buffer to handle the withdrawals without requiring the exit of any validator from the network.
“With the current amount of $stETH requested to withdraw, Lido will not need to exit any validator from the network to honor all the withdrawals and still have 20k $ETH left as a buffer.”
Lido Finance Activating Withdrawals
Lido Finance deployed its v2 iteration on May 15th, which includes reduced gas fees and enhanced security measures, after an on-chain vote by community members. The upgrade underwent nine total audits from several firms like Statemind and MixBytes.
Meanwhile, Celsius unstaked the $779 million of ETH it had with Lido Finance as part of its restructuring and creditor repayment efforts.
