Lido Finance Unveils V2 Protocol: Unlock ETH & Earn Yields
• Lido Finance has released version 2 of its staking protocol, introducing new features for post-Shanghai Ether (ETH) withdrawals.
• Two modes, Turbo and Bunker, will be available for withdrawing staked ETH.
• The upgrade also focuses on decentralizing the network by assigning validators through a staking router.
Lido Finance Unveils Version 2
Lido Finance has unveiled version 2 of its protocol which launched with new upgrades in preparation for the much-anticipated Shanghai update. This is the company’s largest upgrade to date.
New Modes For Withdrawal
Users can withdraw their staked ETH using one of two modes, Turbo or Bunker. The proposals would first be voted on before developers begin trying out the upgrades. In Turbo mode, Lido will process withdrawal requests quickly and use all the available ETH collected from deposits and rewards. Bunker mode is a fail-safe mechanism that prevents certain actors from gaining an unfair advantage over other users by delaying withdrawals across the entire protocol.
Decentralizing The Network
The second proposal focuses on decentralizing the network by assigning validators through a staking router. Currently, there’s only one router on Lido version 1 so adding more routers would allow for better decentralization of the network.
Minimum Requirements To Stake On The Blockchain
A minimum of 32 ETH is required to stake on the blockchain while Lido allows users to stake any amount of ETH in exchange for staked ETH (stETH). This allows everyone to earn a yield on their Ether coins.
Final Approval From DAO
Although the upgrade has been completed on the protocol, it must still be approved by its decentralized autonomous organization (DAO) before it can be fully deployed.