Lido Finance votes to switch to version 2

Lido Finance stands out as the most important liquid staking protocol on Ethereum. On May 15, his community members decide to adopt the v2 upgrade. What does this upgrade consist of and what does it bring to Lido Finance? Decryption.

Lido Finance v2 upgrade enables Ethereum withdrawals

The Lido Finance v2 upgrade primarily allows users to make ETH withdrawals on the platform. In fact, this update constitutes La an architectural improvement of the largest liquid staking protocol on Ethereum.

Now it is entirely possible for stETH holders toinitiate a withdrawal request. After requests are initiated, an oracle determines which Lido operations need exit validation. Lido Finance operators will then make a validator exit request, submitted to a consensus node on the Ethereum mainnet. When the specified validators are out, stETH holders can claim their ETH.

There v2 update of Lido Finance does not only benefit its users. She also turns out particularly important for Celsius, the bankrupt crypto lending company. According to Nansen’s data, Celsius holds over 400,000 stETH through Lido Finance. That would be the equivalent of $720 million. Thanks to the new update, Celsius users could therefore recover their ETH.

Version v2 introduces the Staking Router

This is a feature to provide a modular infrastructure at LidoFinance. Concretely, it offers many possibilities to new types of node operators on the liquid staking protocol. Ranging from solo stakers to DAOs… Validators can now perform validations independently or collaboratively for example using distributed validation technology.

The new version of Lido Finance follows Ethereum’s Shapella update. It enables withdrawals on Ethereum, in addition to strengthening the decentralization of the network.