{"id":16901,"date":"2023-01-26T01:23:32","date_gmt":"2023-01-26T01:23:32","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/lido-protocol-reveals-plans-for-withdrawal-feature-ahead-of-ethereums-shanghai-hard-fork-defi-bitcoin-news\/"},"modified":"2023-01-26T01:23:32","modified_gmt":"2023-01-26T01:23:32","slug":"lido-protocol-reveals-plans-for-withdrawal-feature-ahead-of-ethereums-shanghai-hard-fork-defi-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/lido-protocol-reveals-plans-for-withdrawal-feature-ahead-of-ethereums-shanghai-hard-fork-defi-bitcoin-news\/","title":{"rendered":"Lido Protocol Reveals Plans for Withdrawal Feature Ahead of Ethereum’s Shanghai Hard Fork \u2013 Defi Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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While the Ethereum community prepares for the upcoming Shanghai hard fork in March, the development team for the liquid staking project Lido revealed plans to create an in-protocol withdrawal feature. Lido\u2019s team is seeking community feedback on the proposal that would allow withdrawals after the Shanghai upgrade is completed.<\/strong><\/p>\n

Lido Dominates Defi Economy With $7.9 Billion in Total Value Locked, Team Prepares for Shanghai Withdrawals<\/h2>\n

As of the time of writing, the decentralized finance (defi) liquid staking protocol Lido is the most dominant defi protocol today, in terms of total value locked (TVL). Statistics<\/a> from defillama.com show that Lido\u2019s $7.92 billion TVL dominates the $46.56 billion TVL held in defi today by approximately 17.01%.<\/p>\n

Lido is the largest holder of staked ethereum as the protocol commands around 29%<\/a> of the staked ether supply<\/a>. Lido\u2019s ethereum derivative token STETH<\/a> is the 13th largest market valuation in the cryptocurrency economy with $7.73 billion. Furthermore, Lido has a governance token called lido dao (LDO)<\/a>, which has a market capitalization of around $1.96 billion on Jan. 25, 2023. The day prior, Lido\u2019s development team published a proposal<\/a> concerning withdrawals after the Shanghai upgrade.<\/p>\n

\"Lido
Diagram of the Ethereum slashing penalties timeline highlighted in Lido\u2019s in-protocol withdrawal proposal.<\/figcaption><\/figure>\n

Ethereum developers are determined to make the Shanghai hard fork<\/a> happen this March and the main focus is allowing staked withdrawals. \u201cThe design proposed by Lido on the Ethereum Protocol Engineering team addresses these challenges with the in-protocol withdrawal requests queue,\u201d the Lido team explains in a summary<\/a> of the withdrawals landscape via the Lido protocol. \u201cThe process has to be asynchronous, due to the asynchronous nature of ethereum withdrawals,\u201d the Lido developers add.<\/p>\n

The Lido developers explain there would be various modes of withdrawals including a \u201cturbo\u201d feature and a \u201cbunker\u201d feature. Further penalties and slashing would be codified for validators that break the rules. The summary explains how slashings affect a user\u2019s withdrawal request fulfillment.<\/p>\n

\u201cWe are seeking the community\u2019s feedback to make sure that our proposal takes all important considerations into account and to identify any potential improvements,\u201d the Lido team details. \u201cYour feedback is invaluable to create a proposal that is effective, efficient, and fair for all stakeholders.\u201d<\/p>\n

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asynchronous<\/a>, community<\/a>, community feedback<\/a>, Cryptocurrency Economy<\/a>, DeFi<\/a>, defillama.com<\/a>, Dominant Defi protocol<\/a>, effective<\/a>, efficient<\/a>, Ethereum<\/a>, Ethereum Developers<\/a>, Ethereum withdrawals<\/a>, fair<\/a>, feedback<\/a>, Focus<\/a>, governance token<\/a>, in-protocol withdrawal requests<\/a>, LDO<\/a>, Lido<\/a>, lido Dao<\/a>, Lido Defi<\/a>, Lido Protocol<\/a>, Lido Staking<\/a>, Lido team<\/a>, Liquid Staking<\/a>, Market Capitalization<\/a>, penalties<\/a>, proposal<\/a>, protocol<\/a>, queue<\/a>, Shanghai hard fork<\/a>, slashing<\/a>, staked Ethereum<\/a>, stakeholders<\/a>, STETH<\/a>, total value locked<\/a>, user’s withdrawal request fulfillment<\/a>, Validators<\/a>, withdrawal feature<\/a>, Withdrawals<\/a><\/div>\n<\/div>\n

What are your thoughts on Lido\u2019s proposal for in-protocol withdrawal requests and the upcoming Shanghai hard fork? Do you think this feature will have a significant impact on the crypto and defi market? Share your opinions in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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