Posted:
- Lido continued to make changes to its protocols as the LSD sector got crowded.
- Sentiment around the network fell, price remained unaffected.
Lido [LDO] has been one of the most dominant networks in the liquid staking derivatives sector. However, the recent surge in popularity of Jito has brought Lido’s dominance into question.
The Lido DAO has remained unfazed and continued to work on governance proposals on the protocol.
Lido marches on
In light of increased competition, Lido DAO faced challenges but continued progressing. On 22nd November, vulnerabilities were discovered in the validator infrastructure of Curated Set Node Operator InfStones, a user of Lido on Ethereum Protocol.
Acknowledging the potential risks, InfStones voluntarily withdrew their validators.
The 10,001 validators’ stake began returning to Lido through the Withdrawal Vault. InfStones addressed the issues, and initiated a bug bounty program.
They agreed to reset their validator limit, preventing new deposits, and are in the process of removing previous validator keys.
The DAO must now decide if InfStones has adequately addressed the issues and can remain in the Curated Operator Set, along with determining when new validator keys can be submitted.
It’s voting time 🗳️
New DAO Snapshot votes are live and in need of your attention:
1. st2024 GOOSE Funding
2. Continued InfStones NO participation
3. Lido Community Staking Module
4. wstETH to ZkSync
5. wstETH to Linea
6. wstETH to Mantlehttps://t.co/E7cZTHx09k pic.twitter.com/dYqA6GJQMh— Lido (@LidoFinance) December 8, 2023
Further changes
Moreover, the Lido Community Staking team is asking for the Lido DAO’s signal approval for the Community Staking Module (CSM). This module will allow anyone to join the Lido on the Ethereum validator set, but there will be a bond requirement.
Currently, Lido on Ethereum has a set of chosen node operators.
Validators are important or making sure transactions on the network are secure. Right now, only a chosen group of node operators can do this job.
With the CSM proposal, the goal is to make things more decentralized by letting more people be validators.
This could improve the sentiment around Lido DAO in the future.
However, at the time of writing, the weighted sentiment around Lido had fallen. This showed that there wasn’t much optimism around Lido on the social front.
Despite the negativity faced by the network, the price of LDO remained unaffected.
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At the time of writing, LDO was trading at $2.45 and its price had grown by 0.33% in the last 24 hours.
Network growth of LDO fell during this period. This showed that new users were losing interest in the LDO token.
Source: Santiment