Lido launches vote on deploying the second version of its protocol on Ethereum

The liquid staking platform Lido Finance has initiated a vote to launch the second version of its protocol on the Ethereum network.

? The Aragon vote to implement the Lido on Ethereum V2 upgrade is now live! ?

You can cast your vote on Lido’s most important upgrade to date here: https://t.co/GMrXGuLIdT

Assuming the vote passes, Lido V2 will go live on May 15th ?️ pic.twitter.com/GE3aea83fD

— Lido (@LidoFinance) May 12, 2023

The developers described this event as “the most important update” since the project launched in December 2020.

First, Lido v2 will open the ability to redeem stETH for Ethereum. Initially, around 270,000 ETH will be available in the platform’s vault, enabling withdrawal requests without the lengthy process of validators exiting the network.

According to DeFi Llama, as of writing, about $12.35 billion worth of digital assets are locked on the platform.

As part of the update, a Staking Router will be launched to diversify the set of validators.

“The introduction of a withdrawal system in conjunction with the Staking Router will contribute to greater decentralisation of the network, more efficient operation of the protocol, and provide the long-awaited ability to withdraw funds, strengthening stETH as the most composable and useful asset in Ethereum,” the developers said.

The vote closes on May 15 at 18:00 (Kyiv/Moscow time). LDO holders are backing the proposals; as of writing, no votes against have been cast.

Back in April, Glassnode analysts reminded of Lido Finance’s promise to redeploy the earned rewards into staking.