Lido, the market-leading liquid staking platform, has enabled staked ETH withdrawals following the launch of its V2 upgrade on May 15. The upgrade, which is the largest for the protocol, has two major components with the most user-facing aspect being Ethereum withdrawals. This allows Ethereum stakers with Lido to directly unstake ETH through the protocol. Lido now has a withdrawals page where users can deposit their stETH tokens to get ETH in return. Under normal circumstances, the stETH or wstETH withdrawal period can take anywhere between 1-5 days. The announcement added that the upgrade lowers a number of previous inconveniences surrounding Lido on Ethereum staking experience, allowing for a more efficient use of Lido’s staked ETH throughout the Ethereum DeFi ecosystem.
The token unlocks dashboard is projecting a spike in withdrawals on May 16. It reports 45,830 ETH currently in the pending withdrawal queue, which is likely to grow once Lido stakers start withdrawing. It estimates that almost 7,000 ETH worth around $12.6 million will be withdrawn over the next eleven hours. Lido has 29% of all staked Ether, so withdrawals may add some selling pressure to markets in the short term.
Lido’s native LDO token has gained 7.2% on the day, climbing to $2.09 at the time of writing. Furthermore, Lido DAO tokens are up 15% over the past week. The upgrade also includes a staking router that allows for the development of on-ramps for new Node Operators, promoting staking diversity by allowing solo stakers, DAOs, and Distributed Validator Technology (DVT) clusters.
Ethereum prices are marginally down on the day, trading at $1,812 at the time of writing. ETH has retreated 13% over the past month as crypto markets continue to correct.