Posted:
- Lido continued to make changes to its protocols as the LSD sector became busy.
- Sentiment around the network dropped, the price remained unaffected.
Lido [LDO] is one of the most dominant networks in the liquid staking derivatives industry. However, Jito’s recent rise in popularity has called Lido’s dominance into question.
The Lido DAO remained unfazed and continued to work on governance proposals based on the protocol.
Lido marches on
In the face of increased competition, Lido DAO faced challenges but continued to make progress. On November 22, vulnerabilities were discovered in the validator infrastructure of Curated Set Node Operator InfStones, a user of Lido on Ethereum Protocol.
InfStones recognized the potential risks and voluntarily withdrew their validators.
The deployment of the 10,001 validators began returning to Lido via the recording vault. InfStones addressed the issues and started a bug bounty program.
They agreed to reset their validator limit, which will prevent new deposits, and they are in the process of deleting previous validator keys.
The DAO must now decide whether 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 need your attention:
1. st2024 GOOSE financing
2. Continued InfStones NO participation
3. Lido Community Staking Module
4. wstETH to ZkSync
5. wstETH to Linea
6. wstETH to Mantelhttps://t.co/E7cZTHx09k pic.twitter.com/dYqA6GJQMh— Lido (@LidoFinance) December 8, 2023
Further changes
Additionally, the Lido Community Staking team is requesting signal approval from the Lido DAO for the Community Staking Module (CSM). This module allows anyone to join the Lido on the Ethereum validator set, but there is a bond requirement.
Currently, Lido on Ethereum has a number of chosen node operators.
Validators are important and ensure that transactions on the network are secure. Currently, only a chosen group of node operators can perform this task.
With the CSM proposal, the goal is to make things more decentralized by allowing more people to be validators.
This could improve sentiment around Lido DAO in the future.
However, at the time of writing, weighted sentiment around Lido had fallen. This showed that there was not much optimism around Lido on a social level.
Despite the negativity the network faced, LDO’s price remained unaffected.
Is your portfolio green? Check the LDO profit calculator
At the time of writing, LDO was trading at $2.45 and the price had risen 0.33% in the last 24 hours.
LDO’s network growth declined during this period. This showed that new users were losing interest in the LDO token.
Source: Santiment