Less Than Half a Percent Processed: Is the World Falling Behind on Vital Tasks?

Lido Finance, the largest liquid staking protocol based on Ethereum, has recently upgraded to version 2 which allows holders of staked ether (stETH) to withdraw stETH to ETH from Lido at a 1:1 ratio. However, just 0.42% of withdrawals have been processed so far. Lido Finance currently owns 31% of the total ETH staked whilst there are approximately 6.7 million stETH in supply. Of which, upwards of 448.04k stETH has been requested for withdrawals. Celsius Network accounts for the vast majority of withdrawal requests with roughly 448.04 stETH, based on analytics from Dune.

Lido currently has a 470k ETH buffer for handling the withdrawals, which come from execution layer reward (Priority Fees/MEV), partial withdrawals, and daily ETH deposits from new stakers through the staking platform. With only 0.42% of withdrawals processed so far, Lido has a good chance of honouring all withdrawals without the need to exit any validator from the network.

The upgrade to version 2 of the platform includes enhanced security measures and reduced gas fees. This follows the Shapella hard fork that allowed staking validators to withdraw Ether. Furthermore, Lido’s v2 iteration underwent nine total audits from different firms including Statemind and MixBytes. Celsius, meanwhile, unstaked the $779 million of ETH it had with the liquid staking derivatives protocol and speculation suggests the crypto lender will use the funds as part of its restructuring and creditor repayment efforts.

Lido Finance currently has over $12.41 billion in total value locked (TVL) and deployed the upgrade through an on-chain vote. Community members deliberated over the proposal, and the upgrade has brought much excitement to the community.

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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