Lido Finance to Introduce Major Upgrades with Lido V2
Lido Finance is pushing forward with its plans to enhance the platform’s decentralization by supporting Ethereum staking withdrawals post-Shanghai and rebuilding the Staking Router. As outlined in a recent blog post, the design for the second iteration of the protocol, known as Lido V2, has been completed and will be put to a vote on Lido’s governance platform at the end of February.
Key Features of Lido V2
The main focus of Lido V2 is to provide support for staking withdrawals after the upcoming Shanghai-Capella improvements and revamp the Staking Router. This will enable users to unstake their Lido’s liquid staking derivative token and receive the underlying ether in a 1:1 ratio. However, it should be noted that unstaking can take anywhere from 24 hours to a week, and there may be some pricing differences as a result.
Decentralization and Security Enhancements
Lido V2 will also introduce new routers, allowing for increased protocol decentralization and participation in the platform’s ecosystem. Six audits will be conducted by security firms such as Sigma Prime, ChainSecurity, and Oxorio, to ensure the safety and reliability of the upgrades. The code for the staking router, withdrawals, and a key ceremony will be the focus of these security inspections.
Implementation Timeline
The upgrade will be implemented on the Goerli testnet in early March, with plans to go live on the mainnet ahead of the Shanghai-Capella improvements, which are set to take place in late March. The vote to approve Lido V2 as an official proposal will take place at the end of February, and the results will determine the timeline for implementation.
Moving towards a More Decentralized Future
Lido V2 represents a major milestone for Lido Finance and is a significant step towards further decentralization of the platform. With the introduction of new routers and the ability to support staking withdrawals, Lido aims to provide a more user-friendly and secure experience for its community.