{"id":536123,"date":"2023-06-01T21:00:29","date_gmt":"2023-06-01T21:00:29","guid":{"rendered":"https:\/\/wncen.com\/?p=536123"},"modified":"2023-06-01T20:01:56","modified_gmt":"2023-06-01T20:01:56","slug":"lido-centralization-risks-ethereum-concerns-ldo-crash","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/defi\/lido-centralization-risks-ethereum-concerns-ldo-crash\/","title":{"rendered":"Lido Centralization Risks On Ethereum Raises Concerns: Will LDO Crash?"},"content":{"rendered":"
Lido, the liquidity staking protocol that supports staking, is now under some of the Ethereum community members’ <\/span>crosshair<\/span><\/a>. There are fears that the platform is centralizing Ethereum and could make the blockchain fragile. As of June 1, Lido is the largest decentralized finance protocol. DeFiLlama data\u00a0<\/span>shows<\/span><\/a> that the platform manages $13.2 billion\u00a0 in staked assets.\u00a0<\/span><\/p>\n At this level, Lido has nearly twice the total value locked (TVL) as in MakerDAO, one of the original decentralized money markets in the sphere.\u00a0<\/span><\/p>\n MakerDAO has $6.29 billion in TVL and only serves Ethereum.<\/span><\/p>\n Concern from critics is not only about the dominance of Lido in terms of TVL but the number of validators using the protocol.\u00a0<\/span><\/p>\n According to on-chain\u00a0<\/span>data<\/span><\/a>, over 19 million Ethereum has been staked in the Beacon Chain, that is, the proof-of-stake network.\u00a0<\/span><\/p>\n However, out of this amount, 6 million Ethereum has been staked through Lido. This translates to roughly 36% of all staked Ethereum passing through the liquidity staking protocol.<\/span><\/p>\n Moreover, parallel data\u00a0<\/span>shows<\/span><\/a>\u00a0that 32% of all Ethereum validators use Lido infrastructure.\u00a0<\/span><\/p>\n In Ethereum’s proof-of-stake system, validators are needed to verify transactions and secure the network against external attacks.\u00a0<\/span><\/p>\n
\n<\/span><\/p>\nLido Is Ethereum’s Weak Point?<\/span><\/h2>\n