Lido Finance has activated their safety features to stake rate limits as 150k ETH got staked in one day. They are now activating a safety feature.
Lido Finance, a liquid staking protocol has opened their staking rate limit after they got a huge pile of 150K ETH staked up in one day.
The business is a liquid staking solution for the digital assets, and it helped the users to stake ETH without the users having to lock their tokens. When a user deposited Ether, the company issued the user with a liquid ETH variant. It gave the users a staking reward for every day the token stayed in the wallets of the user.
As per the liquid staking protocol, this safety mechanism got activated after their daily staking limits reached in one day. In another guide, Lido said that the safety valve was aiming to limit the amount of this staked ETH which can get minted during higher inflows. It is said that it was intending to address any negative effects like dilution of the rewards.
Lido Finance Activated Safety Features:
The mechanism works in a fashion where it limit the amount that might get minted based on the last deposits and it replenished the capacity of 6.2k Ether every hour.
Lido said that this feature works by reducing how much of the stETH can get minted at a particular time based on the latest deposits. Lido also said that this staking rate limiting mechanism will affect the parties that might try to mint stETH despite the approach.
sharp on-chain analyst According to a snapshot given by Lookonchain, the 150k and a hundred ETH may have been contributed by a single person, who made three deposits of 50,000 apiece and one of 100.
