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As per industry reports, Tron’s Justin Sun was behind depositing 150,000 ETH to Lido in a single day. Lido protocol’s total value locked jumped by more than 2.09% in a single day.
Last Saturday, February 25, liquid staking platform Lido witnessed the largest single-day staking inflow of around 150,000 Ethereum (ETH) worth a staggering $240 million. As a result, the total value locked (TVL) on the Lido protocol surged by 2.09% in a single day. Over the last month, the total value locked on Lido has surged by 9%.
In its official announcement last Saturday, it noted:
“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”.
The Staking Rate Limit is a protocol safety feature that employs a dynamic mechanism in order to respond to large inflows of stake. It also addresses possible side effects such as rewards dilution without any need to pause the stake deposits explicitly.
The Staking Rate Limit safety protocol can work by decreasing the total staked ETH (stETH) that can be minted at any one time depending on the deposits with a sliding window of 24 hours. Later, the protocol will replenish this capacity on a block-by-block basis.
In its announcement, Lido note that “this limit affects all parties who may try to mint stETH, regardless of approach (frontend, direct contract call, integration, etc.) If a “stETH cannot be minted at this time” error is encountered, either try a smaller amount or wait for capacity to replenish”.
Tron Founder Deposited ETH to Lido
As per market reports, Tron founder Justin Sun was reportedly behind the massive inflow of Ether at Lido Finance. Hildobby, a researcher and data analyst at Dragonfly Capital, explained:
“Today [Justin Sun] staked 150K [ether] through [Lido Finance] (~0.9% of all staked ETH). This is now the highest week by staked amount in almost a year. This is now the largest daily stake inflow for Lido, it also activated Lido’s rate limit feature for the first time”.
As the US SEC has been going after centralized players offering crypto-staking services, decentralized protocols like Lido have been benefitting from it. Thus, demand for Lido-like protocols is like to grow further amid regulatory action.
Last month, Lido also announced plans to create a withdrawals feature for Ethereum deposits just ahead of the Shanghai hard fork scheduled next month in March. “The process has to be asynchronous, due to the asynchronous nature of Ethereum withdrawals,” explained Lido developers.
In recent times, Lido Dao has also been gaining massive popularity. Last month, Lido Dao rose by more than 55% in one week.