Lido’s Liquidity Pledge Agreement Sets Daily Record, Triggers Security Limit Function

02/25/2023 11:32 • Tech Trends • 80 views

On February 25, Lido, the liquidity pledge agreement, announced that the number of pledge ETHs flowing into its platform today exceeded 150000, setting the highest daily pledge flow so far. However, after reaching this number, the platform triggered the security limit function “Staking Rate Limit”. This function is a dynamic mechanism, which can respond to the problem of dilution of pledge rewards due to the inflow of large flow of pledge tokens without suspending pledge deposits, but will reduce the number of cast stETH and then gradually supplement it.

Lido: The highest daily pledge flow has been set today, and the “Staking Rate Limit” limit has been triggered

Analysis based on this information:

The Lido platform recently made an announcement that the number of pledge ETHs pouring into its liquidity pledge agreement reached a daily record high of 150,000. This is a significant milestone for the platform, which has been growing in popularity in recent times. However, this also led to the site triggering a security limit function known as the “Staking Rate Limit,” which is a dynamic mechanism that aims to prevent the dilution of pledge rewards that can arise from a sudden influx of pledge tokens.

The Staking Rate Limit function is designed to respond to the problem of dilution of pledge rewards by reducing the number of cast stETH, and gradually supplementing it over time. This function can help to balance the flow of incoming pledge tokens while ensuring the system remains secure and stable. The mechanism responds automatically to the amount of incoming pledge tokens and adjusts the staking rate to ensure that the platform can handle the incoming flow without compromising the security of its operations.

Despite the activation of the security limit function, this is a clear sign of the growing demand for Lido’s liquidity pledge agreement, which has become one of the most popular platforms for staking ETH. This platform allows users to stake their ETH in a decentralized manner while earning rewards in the form of stETH tokens. stETH tokens are ERC-20 tokens that represent a user’s stake in the ETH pool, and they can be used to vote on protocol upgrades or exchange them for ETH at any time.

Overall, the Lido platform’s achievement of a daily record high in pledge flow is a testament to its popularity among users. The activation of the Staking Rate Limit function is a clear indication of the platform’s commitment to security and stability, which is essential for any blockchain-based platform. With its growing user base and innovative features, it appears that Lido will continue to be an important player in the world of decentralized finance (DeFi) in the coming years.

In conclusion, the success of Lido’s liquidity pledge agreement is an indication of the increasing demand for decentralized staking platforms. While the Staking Rate Limit function may serve as a temporary obstacle, it ultimately reflects the platform’s focus on security and stability, which will ensure its continued growth in popularity among the crypto community.

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