The Ethereum Group is making preparations for the upcoming Shanghai Fork on March and the Lido liquid staking improvement crew is discussing plans to roll out a withdrawal function. Lido’s team is inviting feedback from the community to help refine the proposal for withdrawals after the event.

Lido Becomes Dominant Force In Defi Space With $7.9B Total Value Locked As They Secure Financial System Ahead Of Shanghai Withdrawals

This writing covers the liquid staking protocol for decentralized finance, or defi. Lido has become the most popular defi protocol currently, when it comes to total value locked (TVL). Data from Defillama.com shows that Lido’s $46.56B TVL is dominated by $7.92Billion TVL. This figure continues to grow at a rate of around 17.01%.

Lido is now the biggest stakeholder of staked-ethereum, controlling around 29%. Lido’s Ethereum spinoff token STETH is ranked thirteenth in the cryptocurrency financial market. In addition, Lido’s governance token, lido dao (LDO), has a market capitalization of over $1.96 billion as of January 25, 2021. The day before, Lido development team put forward a proposal on withdrawals following the Shanghai update.

The Ethereum developers have been working on the Shanghai hard fork and their main aim is to enable stake withdrawals. “The design proposed by the Lido protocol engineering team seeks to address these challenges with the withdrawal request queue within the protocol,” the Lido team explains the withdrawal landscape in an abstract by the Lido protocol. “The process has to be asynchronous, due to the asynchronous nature of ethereum withdrawals,” the Lido developers add.

The Lido developers point out that there are several ways of withdrawing funds, aside from a withdrawal by check. These include a “turbo” function and a “bunker” function. Furthermore, for validators who violate the rules, penalties and cuts can be codified. The Abstract outlines how user withdrawal requests are successful in reducing costs.

“We seek feedback from the community to ensure that our proposal takes into account all important considerations and to identify potential improvements,” the Lido team details. “Your input is invaluable in creating a proposal that is effective, efficient, and fair to all stakeholders.”

What do you think of the Lido proposal to implement withdrawal requests in the protocol and the future Shanghai hard fork? Are you a hard fork operator? Do you think this feature could have a significant impact on the cryptocurrency or defi