Lido Implements Staking Rate Limit Amid Record Inflow and Justin Sun’s Stake
Lido protocol, a liquid staking platform, has implemented a new feature called Staking Rate Limit in response to a significant daily stake inflow of 150,000 ETH.
This mechanism mitigates the adverse effects of large inflows that can dilute rewards without pausing staking deposits.
The staking rate limit reduces the amount of stETH minted based on deposits in the last 24 hours and gradually replenishes the capacity block by block.
Lido protocol has registered its largest daily stake inflow so far with over 150,000 ETH staked. 🎉
Upon reaching this number, a curious (but important) protocol safety feature called Staking Rate Limit was activated.
Here’s how it works🧵👇 pic.twitter.com/ngBtWz7q18
— Lido (@LidoFinance) February 25, 2023
Anyone attempting to mint stETH may encounter a “stETH cannot be minted at this time” error and is advised to try a smaller amount or wait for capacity to replenish.
The founder of Tron, Justin Sun, has staked over 150,000 ETH tokens on Lido, increasing his stake by 10,000 ETH, bringing his total to 201,000 ETH ($320 million).
READ MORE: Robert Kiyosaki Warns of Financial Meltdown
Sun is likely to earn passive income with an APY of approximately 4%. Meanwhile, Lido’s liquid derivatives token (LDO) has risen by about 9% to $3.03 in the last 24 hours, with renewed community interest due to the upcoming Ethereum Shanghai update.
Lido is the largest staking service provider with $8.92 billion of locked assets, according to DeFiLlama.
However, some LDO whales have been dumping the token, including Rune Christensen, the founder of MakerDAO, who sold 18.8 million LDO for $27 million DAI, 7,553 MKR ($4.67M), and 92 ETH. Another whale has also profited from LDO’s price action.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
