Liquid staking platform Lido protocol has activated a safety feature called Staking Rate Limit after seeing its largest daily stake inflow with 150,000 ETH.
In a Feb. 25 statement, the protocol explained that the feature is a mechanism to deal with large inflows of stake. Such large inflows could have side effects such as diluting rewards, but the feature fixes this issue without directly pausing staking deposits.
The staking rate limit essentially reduces the amount of stETH that can be minted at any one time based on deposits within the last 24 hours. It then replenishes the capacity block by block at the rate of 6,200 ETH per hour. Lido added that the limit would affect anyone trying to mint stETH regardless of their approach.
“If a “stETH cannot be minted at this time” error is encountered, either try a smaller amount or wait for capacity to replenish,” the protocol added.
Justin Sun Deposits Over 150k ETH
Meanwhile, on-chain sleuth Lookonchain reported that Tron’s founder Justin Sun staked over 150,000 ETH tokens on Lido.
According to Lookonchain, the crypto entrepreneur increased his stake by another 10,000 ETH, taking his total to 201,000 ETH ($320 million).
With an APY of around 4%, many believe that the reason behind his stake is to earn passive income. Sun has earned 18.68 ETH on his stake in the last 24 hours.
LDO Rises 9%
Meanwhile, the increased activity has seen the liquid derivatives token rise by around 9% to $3.03 in the last 24 hours, according to BeinCrypto data.
LDO is one of the best-performing digital assets in the current year. The cryptocurrency has enjoyed renewed interest from the community due to the forthcoming Ethereum Shanghai update.
Lido is the largest staking services provider with the total value of assets locked on it at $8.92 billion, according to DeFiLlama.
But some of the whales holding LDO are dumping the token. MakerDAO founder, Rune Christensen, has been selling LDO and buying MKR with the proceeds. Lookonchain reported that he sold 18.8 million LDO for $27 million DAI, 7,553 $MKR($4.67M), and 92 $ETH. The on-chain sleuth further pointed out another whale that has profited from LDO’s price action.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
