Lido Community Considers On-Chain Vote for Ethereum Version 2 Deployment

Lido, the leading liquid staking platform, is currently holding a vote to implement its second version on the Ethereum blockchain. This is a significant moment for users within the decentralized finance (DeFi) community who seek increased decentralization and improved accessibility to Ethereum's staking ecosystem.

Lido's Twitter account has dubbed the release of v2 as the "most significant upgrade yet" since its inception in December 2020. This is because Ethereum represents Lido's primary and most extensive market for liquid staking tokens.

Lido, the leading liquid staking platform in the DeFi space with a total value locked of $11.77 billion across the Ethereum ecosystem according to DefiLlama, has launched v2 on Ethereum. This upgrade focuses on two key areas: ETH staking withdrawals and the introduction of a "Staking Router" designed to encourage participation from a more diverse group of node operators.

According to a blog post, “The implementation of withdrawals coupled with the Staking Router proposal will contribute to an increase in the decentralization of the network, a more healthy Lido protocol, and enable the long-awaited ability to stake and unstake (withdraw) at will, reinforcing stETH as the most composable and useful asset on Ethereum.”

Lido's smart contract upgrade to v2 will go live if the vote, which concludes on May 15th, is approved.

As of press time, all LDO token holders who participated in the vote have approved the deployment of the upgrade. CoinGecko reports that LDO, the governance token for Lido, has surged 16% in the last 24 hours to $1.89 following this development.

Source Coindesk