• Lido Finance recorded its highest daily stake inflow on Saturday, with more than 150,000 ether (ETH) staked.
• Justin Sun was the major contributor to this large stake inflow by depositing 150,100 ETH worth $240 million on Lido.
• The large inflow caused the protocol to activate its Staking Rate Limit safety feature in order to avoid any side effects due to such inflows.
Lido Finance Records Highest Daily Stake Inflow
Lido Finance recorded its highest daily stake inflow on Saturday, with more than 150,000 ether (ETH) staked on the platform. According to Web3 data analytics platform Lookonchain, Tron blockchain founder Justin Sun staked 150,100 ETH worth $240 million on Lido. On-chain data shows Sun deposited the assets in four separate transactions.
Justin Sun’s Contribution
Justin Sun was the major contributor to this large stake inflow by depositing 150,100 ETH worth $240 million on Lido. On-chain data shows Sun deposited the assets in four separate transactions.
Staking Rate Limit Activated
About four hours after Lookonchain’s tweets, Lido Finance noted that the large inflow caused the protocol to activate its Staking Rate Limit. This safety feature is designed to avoid any side effects due to such inflows by limiting the number of staked ETH (stETH) that can be minted in a timeframe and replenishes this capacity block-by-block basis. Most users are unlikely to be affected as it recovers around 6200 ETH per hour according to Lido.
Connection With Ethereum’s Shanghai Upgrade
The latest development of increased ETH staking on Lido can be attributed largely due to Ethereum’s upcoming ‘Shanghai’ upgrade where users will witness several performance improvements and better gas fees for smart contracts deployed through Eth 2.0 network layer protocols like Uniswap and Aave also contributed towards greater adoption of DeFi protocols like Curve and Balancer which are powered by Ethereum’s Layer 2 scaling solutions like Matic Network and Optimism .
Conclusion
All these developments indicate an increasing demand for yield farming which has resulted in higher amounts of deposits being made into various DeFi protocols like Curve and Balancer leading them towards higher market capitalization and liquidity as well as greater profits for investors who actively participate in yield farming activities within these platforms