Lido Token Jumps 24% as Staked Ethereum Slowly Repegs

Lido’s native token LDO has skyrocketed by more than 24% in the last 24 hours, reaching a weekly high of 0.66 cents.

Meanwhile, Lido’s bet Ethereum The token called stETH seems to have increased in value with Ethereum. Both rose over 5% overnight, with the stake version trading at $ 1,091 and Ethereum trading at $ 1,127.

However, the current gap between Ethereum and stETH represents a discrepancy of about 3% of Lido’s bet tokens.

This is important, but at the height of Depeg last month, stETH was 6% below the mark. report According to blockchain analysis company Nansen.

Lido’s proliferation of LDO tokens is for protocol governance, helping owners manage fees and token distribution, approve and remove Lido node operators, and vote for governance proposals at Lido DAO.

Lido: Ethereum Staking Solution

Anyone with 32 Ethereum that activates the software and locks up to earn rewards for storing data, processing transactions, and adding blocks to Ethereum can be an Ethereum 2.0 validator. increase.

But for those who lack those funds, Lido offers another option.

Lido is a staking pool that allows people to bet ETH on any amount Smart contract– Automated self-executed financial contracts. Users earn yields on stETH. It cannot currently be redeemed 1: 1 with Ethereum, but will be redeemed after the merge. You can also rent, bet and redeem other tokens.

Staked Ethereum is issued by Lido to represent Ethereum trapped in the Ethereum Beacon Chain.The network was integrated with Ethereum’s mainnet in August, making the entire network Proof of stake A consensus mechanism and allegedly render the network 99.95% More energy efficient.

Lido was at the center of the dispute last month after a crypto lender Withdrawal from freezing in Celsius To stop the run on the stETH, which could further deplete the price. It has been revealed that Celsius is betting client funds on Lido and currently holds at least $ 449 million worth of stETH. Public walletAccording to Nansen.

Lido is currently ranked fourth in Ethereum-maximum DeFi A protocol with a total locked value (TVL) of $ 4.79 billion. The platform also makes up the majority of depositors (31.6%) On the beacon chain.

Despite concerns about centralization 99.8% Members of Lido’s DAO voted not to cap the protocol’s Ethereum staking capacity.

Lido’s view is unpopular and is seen by many, including the founder of Ethereum. Vitalik ButerinBeacon Chain Community Manager SuperphizAnd Ethereum Foundation researchers Danny lyon Everyone who has publicly tweeted that the superiority of staking leads to centralization.

In response to the, Lido insists He said the bet was not against the spirit of Ethereum, but was formed “to prevent centralized exchanges from winning most of the bet Ethereum” and “to keep Ethereum decentralized.” I am.