Ethereum Lido Finance’s stake protocol exceeds one million validators

Lido Finance, the leading liquid stake protocol on Ethereum, has reached a significant milestone in its development by leveraging one million Ethereum validators.

This essentially represents a massive scale of stake in Ethereum 2.0.

Such a large number of validators is expected to improve the security and resilience of the network, making it stronger against potential attacks.

In addition, it would further decentralize the validation process, thereby reducing the influence of any individual entity or group.

According to data compiled by Dune Analytics, Lido Finance currently holds the majority at 28.5% of the Ether stake, followed by Coinbase at 13.6%, with more than 27% of the total Ether supply currently.

1 million validators pic.twitter.com/fELATWQPIu

— Lido (@LidoFinance) April 29, 2024

These protocols, like Lido, have seen rapid growth due to their liquidity benefits, allowing users to receive Lido Staked ETH (stETH) in exchange for their staked Ether, which can be used in other DeFi protocols. This is in contrast to regular staking, where the staked Ether remains locked and unusable during the staking period.

Liquid stake protocols like Lido Finance play a crucial role in “democratizing” stake.

By allowing users with limited capital to stake their assets, these protocols remove the barrier of the 32 Ether requirement needed to run individual validator nodes. This accessibility opens up participation to retail users who may not have the resources to bet independently.

Through Lido and similar platforms, users can pool their assets together, collectively reaching the required threshold and earning participation rewards. In addition to promoting decentralization, it connects a wider audience to participate in the security and validation of the network.

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