Victim of his own success ? The staking platform Lido Finance had to limit Ether (ETH) deposits, following an influx of 150,000 ETH. And the culprit would be none other than Justin Sun, the founder of Tron (TRX). Back to the gigantic transfer that caused this event.
Lido Finance limits its staking services
The news was announced over the weekend by Lido Finance, which announced the largest staking ETH deposit in its history. 150,000 ethers were transferred in several times, i.e. 245 million dollars at the current price. The protocol was therefore forced to implement a security measure called “Staking Rate Limit”.
As a reminder, the interest of Lido Finance is that the platform allows you to stake ETH by receiving an equivalent, in order to bypass the asset lock. Users deposit their ETH, and get stETH in exchange. The security measure put in place therefore dynamically limits the stETH that can be produced (mint).
We can therefore only submit 150,000 ETH to the Lido contract over a 24-hour period. The measure makes it possible to avoid certain negative effects, including the dilution of rewards:
” It works by reducing the total number of stETH that can be produced at any one time, based on recent repositories. This capacity is then gradually reopened.t, block by block.»
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Justin Sun behind this record?
According to Lookonchain analysis, the record deposit came from a single user, who made three consecutive transfers of 50,000 ETH. And that user would be no other than Justin Sun, the controversial founder of Tron (TRX) :
— Lookonchain (@lookonchain) February 25, 2023
The maneuver was also reported by the tracker WhaleAlert, which noted the transfers from Justin Sun’s wallet. The creator of Tron would therefore be solely responsible for this security adjustment of LidoFinance.
In recent weeks, we have seen a rise in the power of liquid staking protocols, like Lido Finance. The reason is the Shanghai update that Ethereum will be doing soon. This will allow users to withdraw ETH sent to the Beacon Chain. Liquid staking protocolswhich greatly simplify ETH staking, are therefore particularly scrutinized.
Justin Sun is therefore obviously very bullish on the future of Ethereum, and staking in particular. He is not the only one : Lido is currently the leading DeFi protocol in terms of total value locked, with over $9 billion in assets.
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Source: Lido Finance via TwitterDefiLlama– Image: Justin Sun via LinkedIn
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