Justin Sun stakes 150 100 ETH on Lido Finance

This is a record indicator of the daily inflow of deposits on the platform

27.02.2023 - 12:30

983

3 min

What’s new? On February 25, Lido Finance, a staking platform, recorded a record daily inflow of deposits of 150 100 ETH (about $240 million). This event automatically activated a security feature called Staking Rate Limit. According to blockchain analysts at Lookonchain, the TRON blockchain founder and Huobi exchange CEO Justin Sun contributed this amount to the platform in four transactions.

Justin Sun staked 150,100 $ETH($240M) on @LidoFinance just now.https://t.co/VbqAnBqojA pic.twitter.com/QieWaJkmHY — Lookonchain (@lookonchain) February 25, 2023

What is Staking Rate Limit? The feature is a dynamic mechanism that responds to large inflows of funds and eliminates possible side effects in the form of reduced rewards without having to suspend new deposits. The mechanism reduces the amount of stETH (staked ETH) generation at a certain point in time based on the last deposits (sliding 24-hour window), restoring this amount later on a block-by-block basis at a rate of about 6200 ETH per hour.

Lido protocol has registered its largest daily stake inflow so far with over 150,000 ETH staked. 🎉 Upon reaching this number, a curious (but important) protocol safety feature called Staking Rate Limit was activated. Here’s how it works🧵👇 pic.twitter.com/ngBtWz7q18 — Lido (@LidoFinance) February 25, 2023

What is known about Lido Finance? It is a liquid staking protocol that does not require running nodes, locking assets, or involvement in maintaining infrastructure. Ethereum, Solana, Kusama, and Polygon networks are available for staking with Lido. According to a report from analytics firm Nansen, 31% of staked ETH is controlled by Lido.

From January 1 to January 3, the native token LDO rose by 38,5%. This came after the platform overtook DAO Maker in total value locked (TVL). Santiment analysts later listed LDO as one of the six fastest-growing altcoins. As of February 27, 12:30 UTC, the asset ranks 30th in the cryptocurrency ranking with a capitalization of $2,6 billion and is trading at $3,1, having gained 0,78% in 24 hours, according to Binance.

Author: