{"id":63478,"date":"2022-06-25T13:40:04","date_gmt":"2022-06-25T10:40:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=63478"},"modified":"2025-09-06T09:11:20","modified_gmt":"2025-09-06T06:11:20","slug":"lido-community-proposes-capping-the-protocols-stake-in-ethereum-2-0-staking","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/lido-community-proposes-capping-the-protocols-stake-in-ethereum-2-0-staking\/","title":{"rendered":"Lido community proposes capping the protocol&#8217;s stake in Ethereum 2.0 staking"},"content":{"rendered":"<p>The decentralized organization behind the Lido Finance project has initiated a vote on limiting the protocol&#8217;s share in the Ethereum 2.0 staking pool.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Should Lido on Ethereum self-limit? <\/p>\n<p>A multi-leg vote has been set up to determine whether or not Lido should limit itself to a share of staked ETH and, if so, how. <a href=\"https:\/\/t.co\/WbvuX69JfC\">https:\/\/t.co\/WbvuX69JfC<\/a><\/p>\n<p>Start: 24.06 \/ 9AM UTC<br \/>End: 01.07 \/ 9AM UTC <a href=\"https:\/\/t.co\/U4uUZYzfaw\">pic.twitter.com\/U4uUZYzfaw<\/a><\/p>\n<p>\u2014 Lido (@LidoFinance) <a href=\"https:\/\/twitter.com\/LidoFinance\/status\/1540258690942615555?ref_src=twsrc%5Etfw\">June 24, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"u-8\"><\/script><\/p>\n<p>Lido Finance \u2014 service for <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-liquid-staking\">liquid staking<\/a> of cryptocurrencies. The protocol allows depositing coins into the relevant contract and receiving in return a quantity of \u201cderivative\u201d tokens, which can be used in DeFi services. In the case of Ethereum, these are stETH tokens.<\/p>\n<p>According to <a href=\"https:\/\/dune.com\/LidoAnalytical\/Lido-Finance-Extended\">Dune Analytics<\/a>, Lido accounts for over 31% of all ETH in staking.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"805\" height=\"338\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/staked.png\" alt=\"In the Lido community, a proposal to limit the protocol's share in Ethereum 2.0 staking was proposed\" class=\"wp-image-177054\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/staked.png 805w, https:\/\/u1f987.com\/wp-content\/uploads\/staked-300x126.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/staked-768x322.png 768w\" sizes=\"auto, (max-width: 805px) 100vw, 805px\" \/><figcaption>Data: Dune Analytics.<br \/><\/figcaption><\/figure>\n<p>In the discussion preceding the vote, the authors of the proposal noted that eminent community members recommended limiting the share of a single protocol in staking.<\/p>\n<p>For example, Ethereum cofounder Vitalik Buterin stated that no more than 15% of ETH should be attributed to a single project. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Speculative controversial take: we should legitimize price gouging by top stake pool providers. Like, if a stake pool controls > 15%, it should be accepted and even *expected* for the pool to keep increasing its fee rate until it goes back below 15%. <a href=\"https:\/\/t.co\/cOtuM7Occd\">https:\/\/t.co\/cOtuM7Occd<\/a><\/p>\n<p>\u2014 vitalik.eth (@VitalikButerin) <a href=\"https:\/\/twitter.com\/VitalikButerin\/status\/1525301234516652032?ref_src=twsrc%5Etfw\">May 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The authors of the proposal argue that Lido&#8217;s dominance in the Ethereum 2.0 staking pool would pose a security threat to the blockchain after the so-called <a href=\"https:\/\/u1f987.com\/en\/news\/the-merge-what-to-expect-from-ethereums-largest-update\">The Merge<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Lido passing 1\/3 is a centralization attack on PoS.<\/p>\n<p>We\u2019re bad at assessing tail risk, but staking in Lido at these thresholds has a lot of it.<\/p>\n<p>In blockchain systems, tail risk isn\u2019t even necessarily so far fetch. Systems tend to hit edge cases, systems tend to get exploited 1\/2<\/p>\n<p>\u2014 dannyryan \ud83e\uddf1\ud83d\udd25 (@dannyryan) <a href=\"https:\/\/twitter.com\/dannyryan\/status\/1524044527828303872?ref_src=twsrc%5Etfw\">May 10, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The vote will close on July 1. If the Lido DAO approves the proposal, the authors will initiate another discussion on how exactly developers will limit the protocol\u2019s participation in staking.<\/p>\n<p>In June 2022 the stETH discount exceeded 5%. At the time of writing, derivative tokens trade about 4% below native Ethereum coins (decentralized exchange <a href=\"https:\/\/curve.fi\/steth\">Curve<\/a>).\u00a0<\/p>\n<p>CoinShares analysts urged not to compare the stETH situation with the Terra ecosystem collapse.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our Telegram \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The decentralized organization behind Lido Finance has initiated a vote on limiting the protocol&#8217;s share in the Ethereum 2.0 staking pool.<\/p>\n","protected":false},"author":1,"featured_media":63479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1289,46,1387],"class_list":["post-63478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-staking","tag-ethereum","tag-lido"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=63478"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63478\/revisions"}],"predecessor-version":[{"id":63480,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63478\/revisions\/63480"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/63479"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=63478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=63478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=63478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}