- The much anticipated Ethereum Shanghai upgrade is now only a few days away.
- The Shanghai upgrade is causing a lot of activity on Lido Finance.
- The “Staking Rate Limit” was activated once the daily staking limit of 150,000 Ether was reached.
As reported in our earlier news, Lido Finance Protocol is witnessing an increase in activity in the coming days Ethereum Shanghai / Capella upgrade, The increase in activity is mainly due to increased ETH staking Lido Dow (LDO) PriceThe native token of Lido Finance has gained a lot in the past few days.
As of press time, LDO was trading at $3.09, up 4.09% over the past 24 hours.
“Staking rate limit” activation
On February 25, Lido Finance was forced to activate its “Staking Rate Limit” protection feature after more than 150,000 ETH tokens were staked in a single day. according to a tweet by lido,
“The Lido Protocol has recorded its largest daily inflow ever with over 150,000 ETH staked. Upon reaching this number, a curious (but important) protocol security feature called the Staking Rate Limit was activated.
A keen on-chain analyst, LookOnChain, shared a screenshot showing that 150,100 ETH could be created by a single user with three deposits of 50,000 ETH each and one of 100 ETH.
As a liquid staking protocol, Lido Finance allows users to stake Ether (ETH) without locking up their tokens, as is the case with most crypto staking platforms. When a user deposits ETH on Lido, they are issued with a liquid version of the deposited ETH, called Stacked ETH (STETH). stETH entitles users to daily staking rewards.
How will the rate limit work?
one in guideLido Finance said that the “staking rate limit” acts as a “safety valve” and aims to limit the amount of stETH that can be minted during high flow times in order to minimize side effects such as reward dilution. Can go
In the guide, Leod states that “Staking Rate Limit”:
“How much total stETH can be reduced at any one time is based on recent deposits, and then works by offsetting this capacity on a block-by-block basis.”
The refill capacity is set at a rate of 6,200 Ethereum ETH per hour.
As of February 27, over $9.162 billion in ETH has been staked with Lido Finance. Protocol’s website, The amount of ETH staked on the protocol has increased by almost $4 billion since the start of the year.