Ethereum Withdrawals Now Active
Lido V2 is now live on Ethereum's mainnet. The successful launch followed an affirmative on-chain vote, marking the most pivotal upgrade to the Lido protocol to date.
The Lido V2 update not only enhances the Ethereum staking experience but also propels the Lido protocol towards a future of further decentralization.
The most noticeable aspect of this update for users is the activation of Ethereum withdrawals, enabling Ethereum stakers with Lido to directly unstake ETH through the protocol.
Unraveling Lido V2
The Lido V2 upgrade introduces an array of intriguing features, with the main focus on two key components:
- Withdrawals: The upgrade empowers Ethereum stakers to burn their stETH and leave the protocol on a 1:1 ratio, thereby creating an open on/off ramp into the Ethereum staking ecosystem.
- Staking Router: The new design architecture enables the development of on-ramps for new Node Operators, from solo stakers to DAOs and Distributed Validator Technology (DVT) clusters, fostering a more diverse validator ecosystem.
The upgrade also incorporates several other changes, including a major rewrite of the Oracle smart contract and off-chain daemon software necessary to support the withdrawals functionality and enable more Node Operators.
Navigating Ethereum Withdrawals with Lido
The most notable addition to Lido V2 is the in-protocol ETH withdrawals functionality.
This feature, developed in line with the recent Ethereum Shapella Upgrade, simplifies the Lido staking experience, allowing users to unstake their ETH directly from the Lido protocol.
This streamlines the staking process, mitigates previous inconveniences, and facilitates a more efficient utilization of Lido’s staked ETH throughout the Ethereum DeFi ecosystem.
V2 Security Assurance
As part of its commitment to security, Lido V2 underwent extensive security audits, with Sigma Prime auditing the updated dc4bc version, ChainSecurity auditing the Staking Router code, and further audits conducted by Oxorio, Statemind, HEXENS, MixBytes(), and Certora.
These checks ensured that the protocol upgrade rendered Lido on Ethereum feature-complete, enabling stETH to Ether withdrawals and providing opportunities for experimentation and collaboration with the Staking Router architecture.
What's ahead for Lido
The Lido community has expressed excitement over the progress of Lido V2, eagerly anticipating how these new features will augment the staking experience.
Maintaining its commitment to secure and reliable protocol for staking ETH, Lido looks forward to building on this foundation in the coming months and years.