Lido Pushes for Further Decentralization in Ethereum’s Next Upgrade

• Lido, Ethereum’s liquid protocol, has rolled out several key new upgrades in its latest update.
• Currently, withdrawing Ethereum after making a  deposit isn’t possible, not until the Shanghai fork slated for next month.

Lido Finance Proposes Upgrade to Improve Decentralization and Withdrawals

Lido Finance, the market’s largest staking pool, has proposed an upgrade that would improve the decentralization of its network and make it easier for users to withdraw their funds.

The upgrade, which is called V2, would introduce a new staking router that would allow Lido to diversify its validators. The staking router would also make it possible for users to withdraw their funds in two modes: Turbo and Bunker.

The Turbo mode would be the fastest way to withdraw funds, while the Bunker mode would be designed to prevent sophisticated stakers from avoiding penalties by passing the losses to unsophisticated stakers.

The V2 upgrade is scheduled to be deployed on the Goerli testnet in March and then mainnet following Ethereum’s Shanghai upgrade.

Eugene Pshenichnyy, a core contributor at Lido, said that the V2 upgrade would “significantly improve the decentralization of our network and improve withdrawal processes ahead of Shanghai, making stETH a valuable asset on the Ethereum network.