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.
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Posted 8/25/2023, 5:06:18 AM
thedefiant.io
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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.
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.
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.
Lido, an ether staking giant, is collaborating with two Cosmos blockchain projects, Neutron and Axelar, to bridge its staked ether tokens to the Cosmos network, potentially transferring large amounts of liquidity between the two blockchains. This move aims to enhance the accessibility and usability of Lido's tokens on various blockchains within the Cosmos ecosystem.