2 - 4 minute read
Investors who have staked their ether (ETH) through Lido, the dominant liquid staking platform, can expect ETH withdrawals “no sooner than early May,” a Lido protocol developer who goes by Kadmil.eth said in a Twitter space on Thursday. This delay comes as a result of Lido needing to properly prepare the launch of its V2 test network and complete several security audits of its V2 upgrade.
Shapella, a software upgrade that will enable ether withdrawals, is set to occur on April 12. However, the preparation of Lido’s V2 testnet and completion of its multiple security audits won’t be ready by Shapella. LidoDAO community members had previously voted for the software overhaul in early March.
Lido’s V2 upgrade is the “biggest upgrade” for Lido on Ethereum and the “significant in scope.” The upgrade will enable ETH withdrawals on the liquid-staking platform. As of now, more than 5.9 million ETH have been staked.
Lido is currently the largest decentralized-finance protocol with $11.2 billion in total value locked. Lido’s governance token, LDO, was down 6% in the past 24 hours and is currently priced at $2.50, according to CoinGecko.
Lido’s Staking System: A Cybernetic Principle
Talking about the complexity of staking withdrawals for Lido on Ethereum, Kadmil cited a cybernetic principle and said, “The system we are building on top of something should be at least as rich and robust as something we are building upon.”
What This Means for Traders
It is understandable that investors may feel frustrated with the delay in Lido’s V2 upgrade. However, it is important to note that the primary concern for Lido developers is security. By not rushing the upgrade, Lido can ensure that it is safe and secure for its users.
Additionally, while this delay may cause some volatility in the market, it is ultimately a short-term setback. Lido’s dominance in the liquid staking sector is not likely to wane, and once the V2 upgrade is completed and ETH withdrawals have been enabled, we can expect a surge in the platform’s popularity.
Traders should remain patient and understand that these delays are ultimately in their best interest. As Kadmil noted, the system being built on top of Ethereum should be as rich and robust as Ethereum itself. By taking the time to properly prepare and complete security audits, Lido is ensuring just that.