Lido records a daily inflow of 150,000 ETH in deposits.

The daily inflow of deposits to the liquid-staking platform liquid staking on Lido Finance exceeded 150,000 ETH. Reaching this record level activated the Staking Rate Limit feature.

Lido protocol has registered its largest daily stake inflow so far with over 150,000 ETH staked. ?

Upon reaching this number, a curious (but important) protocol safety feature called Staking Rate Limit was activated.

Here’s how it works?? pic.twitter.com/ngBtWz7q18

— Lido (@LidoFinance) February 25, 2023

The team described it as ‘curious, but important’. It is a dynamic mechanism that responds to significant inflows of funds into staking to mitigate potential side effects such as dilution of rewards without the need to pause deposits.

It works by reducing the total amount of stETH that can be issued at any given moment based on the latest deposits (a rolling 24-hour window), and then replenishing this capacity in increments, the developers explained.

They say that, thanks to a recovery rate of about 6,200 ETH per hour, most users will not feel the effects of the Staking Rate Limit triggering.

If the platform is unable to issue stETH, developers recommended reducing the deposit size or waiting for the protocol’s capacity to be replenished.

According to Lookonchain experts, the record daily deposit on Lido was made in three tranches by Tron founder Justin Sun. The total funds in the wallet within the protocol exceed 200,141 ETH (~$327.5 million).

Justin Sun staked 150,100 $ETH($240M) on @LidoFinance just now.https://t.co/VbqAnBqojA pic.twitter.com/QieWaJkmHY

— Lookonchain (@lookonchain) February 25, 2023

According to DeFi Llama, TVL of the platform stands at $9.31 billion.

Earlier in February, Lido developers announced the release of a new version of the protocol.