Lido Finance Records Largest Daily Stake Inflow of $240M

Lido Finance, the liquid staking protocol which recently exceeded MakerDAO as the top Decentralized Finance (DeFi) protocol per TVL has reached another significant milestone as it registered its very first largest daily stake inflow ever. According to the official Twitter handle of the protocol, more than 150,000 Ethereum (ETH) valued at around $240 million were staked in one day 

“Lido protocol has registered its largest daily stake inflow so far with over 150,000 ETH staked,” Lido Finance tweeted, adding that “Upon reaching this number, a curious (but important) protocol safety feature called Staking Rate Limit was activated,” to ensure that safety and integrity are upheld In the protocol.

The Staking Rate Limit is a peculiar mechanism that responds to large inflows of stake and at the same time, counteracts likely consequences which may arise including result dilution. Markedly, the system runs in such a way that there would be no need to put a stop to stake deposits.

“It works by decreasing how much total stETH can be minted at any one time based on recent deposits (sliding 24h window), and then replenishing this capacity on a block-by-block basis. Due to the rate of recovery (~6.2K ETH/hr), most users are unlikely to be affected.”

No entity whether based on the front end, direct contract call, or integration is exempted from the Staking Rate Limit, provided that they plan on minting the staked Ether (stETH). There exists a possibility that users may get an error message saying “stETH cannot be minted at this time.” If this is the case, these users could either mine a smaller amount or take a break to give the system time to replenish.

Justin Sun Expands Crypto Investments

Dragonfly Capital’s data scientist, hildobby under the Twitter handle ‘Lookonchain’, claims that TRON founder Justin Sun solely staked the 150,000 Ether.

While this is yet to be admitted or denied by the young crypto industry leader, it is significant to acknowledge that Sun has recently flaunted his capacity to make tangible financial investments.

In January, the Chinese billionaire revealed his plans to spend up to $1 billion to acquire assets that belong to the troubled conglomerate Digital Currency Group. Although, he did not announce by the specific assets he planned on purchasing.