In response to the massive ETH staking requests issued in one day, Lido Finance has implemented a new safety feature to limit staking rates. The popular liquid staking protocol announced the development on its Twitter feed and discussed how the new feature works for users.
The staking protocol had announced that it had “…registered its largest daily stake inflow so far with over 150,000 ETH staked.” In the same announcement, it noted to users that a feature, called the Staking Rate Limit, was to be implemented.
Lido Introduces Staking Rate Limit
In a Tweet, Lido Finance announced that it would implement a new safety feature to limit staking rates. Conversely, the decision follows a massive influx of ETH staking requests that resulted in the largest daily stake inflow for the protocol.
The feature is called the “Staking Rate Limit,” following the events of February 25, 2023. Thus, the massive single-day surge of ETH staking pushed the “curious (but important) protocol safety feature,” to be activated.
The Tweet then explains the protocol is a safety measure in the event of unusually large ETH staking inflows. Moreover, it would be initiated to address possible side effects of an increased influx.
The limit reduces the amount of staked Ether (stETH) that could be minted at any given time. That limit is realized based on the past 24-hour deposit window. Subsequently, EconomyWatch notes it is then replenished on a block-by-block basis. The replenishing creation is around 6,200 ETH per hour, as Lido has maintained confidence that the feature will not affect users.