Lido Launches V2, Releases Staked Ethereum for Withdrawals

Lido, the market leading liquid staking platform, has enabled staked ETH withdrawals. The move comes as Lido launches the V2 upgrade to the live mainnet on May 15.

The upgrade is the largest ever for the protocol, and has two key components:

“Lido V2 introduces two key components, with the most user-facing aspect being Ethereum withdrawals. It allows Ethereum stakers with Lido to directly unstake ETH through the protocol.

Lido now open Page Where users can deposit their stETH tokens to receive ETH in return.

After a successful on-chain vote, the Lido V2 is officially here.

pic.twitter.com/sl4kjNpUYw

— Lido (@LidoFinance) May 15, 2023

lido staking withdrawals live

Lido explained that under normal circumstances, the duration of stETH or wstETH withdrawals can be anywhere between 1-5 days. In addition, stETH inserted back into the protocol will be burned to release ETH at a 1:1 ratio.

The announcement states that the upgrade alleviates many of the previous inconveniences surrounding the Lido on Ethereum staking experience. Additionally, it “allows for more efficient use of Lido’s staked ETH in the Ethereum DeFi ecosystem.”

the token is unlocked dashboard is anticipating an increase in withdrawals on May 16. It currently reports 45,830 ETH in the pending withdrawal queue, which is likely to increase after Lido stackers withdraw.

It is estimated that approximately 7,000 ETH worth approximately $12.6 million will be withdrawn in the next eleven hours.

Nansen’s dashboard Still reporting that there are more deposits than withdrawals on the Beacon Chain. It also claims that a total of 20 million ETH is at stake, although this is likely on the higher side. beconcha.in Explorer claims 18.3 million.

6,274,752 ETH at stake @LidoFinance, This is more than 29% of the total deposits!

And later today, Lido will enable ETH withdrawals for the first time.

What will happen? No one knows, but you can track it from our dashboard here: https://t.co/DFbiirSdxmhttps://t.co/1EvVjbDznm

— Nansen 🧭 (@nansen_ai) May 15, 2023

V2 also includes an upgrade called the Staking Router. This new modular component allows for on-ramp growth for new node operators. It promotes diversity by allowing single stakeholders, DAOs and Distributed Validator Technology (DVT) groups.

ETH price reaction

Ethereum price is down marginally on the day, trading at $1,812 at the time of writing. ETH has retreated 13% over the past month as the crypto market continues to correct.

Lido holds 29% of all staked Ether, so the withdrawal could increase selling pressure in the markets in the short term.

Its native LDO token is up 7.2% on the day, climbing to $2.09 at the time of writing. Furthermore, the Lido DAO token is up 15% in the past week.