According to Lido Finance, the surge in staked ETH in a single-day trade led to the activation of the protocol’s safety feature known as the Staking Rate Limit.is employed on Lido as a dynamic mechanism to ensure the protocol’s safety and prevent rewards dilution caused by large inflows of stake.
Based on recent deposits, this mechanism decreases the total amount of stETH that can be minted at any given time using a sliding 24-hour window.The protocol capacity is replenished on a block-by-block basis, with a recovery rate of around 6,200 ETH per hour. The limit applies to all parties trying to mint stETH, irrespective of the method employed., 5.35 million ETH tokens have been staked through Lido Finance, bringing its share of the ETH-staking market to 29%.
With the Shanghai Upgrade scheduled to take place in a few weeks, these past few months have seen a surge in the creation of new liquid ETH staking protocols, leading to a gradual drop in Lido’s market share. To provide context, Lido Finance held 32% of all staked ETH as of May 2022. However, with centralized staking platforms such as Coinbase offering higher Annual Percentage Rates to liquidity providers, these platforms witnessed a surge in ETH staking.
As for staking APR on Lido, it was pegged at 4.74% at press time. It peaked at a high of 10.20% last November and has since been on a downward trend.
Okay, thanks you very much