- Lido passed the vote to upgrade the protocol to Lido v2.
- stETH holders can now exchange stETH for ETH one-to-one.
- Among the biggest potential draws of stETH is percentage.
Ethereum recently implemented a Shapella upgrade that allowed validators to withdraw their ETH for the first time since 2020.
Contrary to popular belief, the event had almost zero impact on the price of ETH. Not only that, the number of active Ethereum validators has only increased.
This may change as Lido, the largest Liquid Staking Derivative (LSD) The protocol, has enabled stETH withdrawals.
Lido enables stETH withdrawals
Lido announced on Monday that the proposal to upgrade the protocol to version 2 has been passed.
Lido v2 brings two new features. The first is that servers can now finally exchange their stacked ETH (stETH) tokens for ETH.
Lido was the last major protocol to be enabled ETH withdrawals. Now there are no other protocols whose unlocking of ETH could affect the price of ETH or incentivize validators to exit.
The second new feature that Lido v2 brings is staking Router. Lido said that the new feature will allow “ramp development for new node operators.”
“The new modular architectural design allows for the development of on-ramps for new Node Operators, ranging from solo stakers to DAOs and Distributed Validator Technology (DVT) clusters. This will create a more diverse validator ecosystem.”
With Lido v2 now live, all eyes are on who is withdrawing StETH and how much.
Celsius moves massive amounts of stETH
In about 24 hours since stETH withdrawals were enabled, a significant amount of stETH has already been withdrawn.
According to data from NansenAlmost 12,000 stETH has been withdrawn from Lido. 12,000 ETH is equivalent to about $22 million.
However, another massive pullback is on the horizon. Celsius, a bankrupt cryptocurrency lender, transferred 428,000 stETH, worth about $780 million, minutes before Lido enabled withdrawals.
Percentage then made a test withdrawal of 0.1 stETH. However, the full amount has not yet been withdrawn.
ETH is currently trading at $1,820, according to data From CoinGecko.
on the flip side
- Celsius may need court approval to withdraw stETH. It is also likely that the company will continue to accumulate ETH independently rather than through an intermediary like Lido.
Why should you bother
Lido enabling stETH withdrawals is a milestone for the Ethereum community. Users can finally withdraw their stakes and use them elsewhere.
Read more about ETH validators numbers:
Read more about the potential polygon Air drop: