Ethereum staking services agree to 22% limit of all validators

At least five Ethereum liquid staking providers have committed to self-limit their ownership to 22% of the Ethereum staking market to ensure decentralization, while the largest provider, Lido Finance, voted against the self-limit proposal and currently holds a dominant market share.

cointelegraph.com

Relevant topic timeline:

8/25/2023

Lido Set To Complete Final Token Unlock

Leading Liquid Staking Protocol Lido Finance is unlocking nearly all of its 1B LDO tokens, providing an opportunity for token holders while potentially impacting the market.

9/4/2023

Lido Dominance Prompts Warnings About Liquid Staking Derivatives - Decrypt

Lido Finance, the leading liquid staking solution for Ethereum, is causing concern among community members who believe it is undermining the decentralization of the Ethereum ecosystem, with Lido accounting for 32.7% of all staked ETH and potentially amassing undue influence over the network's governance. Critics warn that this centralization could harm Ethereum's reputation and long-term valuation, and Lido is exploring a "dual governance" model to address these concerns.

9/5/2023

Explaining Ethereum's 'Risk Free' Rate of Return

Staking in the crypto market is rebounding, with proof-of-stake revenue generation reaching almost all-time highs, driven by the surge in total value locked for liquid staking protocols and the appeal of staking as a safer investment option in a year of liquidity challenges and DeFi hacks.

9/11/2023

Lido Responds to LDO Token Contract Vulnerability, Says User Funds Remain Safe

Ethereum staking protocol Lido Finance has reassured users that their funds remain safe despite a known security flaw in Lido DAO's token contract that enables "fake deposit" attacks on exchanges, according to blockchain security firm SlowMist. Lido Finance argues that this flaw is present in all ERC-20 tokens and is not specific to Lido's LDO token. The company has pledged to update the token integration guides to address the issue.

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Posted 9/1/2023, 3:18:12 AM