Lido Finance [LDO] prepares for major V2 upgrade; how are ETH stakers affected

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With the hope of implementing its V2 upgrade on 15 May, liquid staking platform Lido Finance is set to enable stETH:ETH withdrawals and a staking router architecture.

made in February, Lido stated that its V2 upgrade would be composed of two main components; the Staking Router, which is a modular infrastructure that allows the development of on-ramps for new Node Operators, and Withdrawals, which will enable stETH holders to withdraw from Lido at a 1:1 ratio.

Lido intends for its Staking Router to allow for a more diverse validator ecosystem. Also, by enabling withdrawals, protocol users will have the “freedom to stake and unstake at will.”“Liquid staking provider Lido still holds the largest market share, with 33.5% dominance, followed by the staking services of the centralized exchanges Coinbase with 11% and Kraken with 7.1%.”

Since the Shanghai Upgrade went live on Ethereum, the total amount of ETH tokens transferred to the ETH 2.0 deposit contract via Lido has rallied by 7.2%. Per data from , at press time, Lido housed 6.1 million ETH out of the total amount of ETH coins that have been staked.Further, Lido has experienced a spike in its ETH staking APR since the implementation of Shapella. Data from

showed a 62% jump in ETH staking APR since 12 April. For context, this stood at 4.37% the day Shapella went live on Ethereum. As of this writing, it was pegged at 7.09%.At $11.96 billion at press time, the protocol’s total value locked has also seen a 5% increase since the Shanghai Upgrade.

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