• Lido Finance has implemented a safety feature called Staking Rate Limit to control the staking rate after recording over 150,000 ETH staked in one day.
• The safety valve limits the amount of staked ETH users can mint based on their 24-hour deposit, keeping the refill capacity at 6,200 ETH per hour.
• The firm noted that the Staking Rate Limit would apply to all users and aims to prevent potential issues like reward dilution that might arise from high inflows.
Lido Finance Introduces Safety Feature
Lido Finance, a liquid staking protocol, has employed a safety measure to control the staking rate after recording over 150,000 ETH staked in one day. The protocol announced this development via Twitter.
Safety Feature Aimed at Mitigating Side Effects
As per the announcement, Lido was concerned about the safety of its platform and intends to prevent such a massive inflow from continuing. Therefore, it decided to activate a safety feature called Staking Rate Limit to check the number of stakes and mitigate possible side effects.
Working Mechanism of Safety Valve
The safety valve limits the amount of staked ETH users can mint based on their 24-hour deposit, keeping the refill capacity at 6,200 ETH per hour. Therefore, the amount of stake ETH users can mint at a time is reduced based on recent deposits. Lido Finance noted that the replenishing capacity will now be block-by-block. It means users can only submit a limited amount of Ether to Lido staking Smart Contracts within a 24-hour interval.
Staking Rate Limit Applies To All Users
Also, the firm noted that the Staking Rate Limit would apply to all users and aims to prevent potential issues like reward dilution that might arise from high inflows.
Conclusion
In conclusion, Lido Finance has taken necessary steps by introducing Staking Rate Limit as a preventive measure against any potential issues arising from high inflows in order to ensure optimal performance on its platform and secure user funds as well as rewards earned through stETH tokenization process .