LDO, its native governance token, increased 10% to $2.15 the previous day as Lido upgraded to its second version (“V2“) on Ethereum.
As mentioned in a recent blog post, users now have the ability to redeem their stETH tokens and receive an equivalent amount of ETH at a ratio of 1:1. If the exit queue on the Beacon chain is empty, this process typically takes one day for most users. According to information from network explorer Rated, it might take a validator up to 5 days and 14 hours to leave and withdraw from the staking queue.
In addition, users will get an NFT as a step between asking to be unstaked and obtaining their ETH. A Lido-issued NFT that represents a user’s request to withdraw funds will be given to them when they seek to unstake. The NFT is then burned once the user uses it to claim their ETH incentives.
According to Kasper Rasmussen, the marketing lead at Lido, the NFT can be listed for trading on Blur and Opensea. However, he clarified that secondary market activity does not affect the withdrawal process.
According to blockchain analytics company Nansen, Lido controls nearly 80% of the market for liquid staking derivatives on Ethereum. As of press time, the staking giant had already withdrawn more than 278,000 ETH, placing it behind Kraken, Coinbase, and BINANCE as the fourth largest entity by ETH withdrawals.
Lido has announced that the newly launched V2 of their platform has undergone comprehensive auditing by multiple firms, including Statemind and MixBytes, with a total of nine audits conducted. All have been completed except for one by Oxorio, which is expected to finish at the end of May.
According to Kydo, Vice President of Stanford Blockchain Club, the transition to v2 is significant as it helps in mitigating risks associated with the entire Lido tech stack. Kydo mentioned that the events of the day demonstrate the ability to enter and exit the staking process, ultimately contributing to reducing risks and enhancing the staking experience. Kasper Rasmussen also added that the v2 upgrade plays a crucial role in derisking the staking experience in various ways.