The staking liquidity protocol Lido reported that the amount of pledged ETH pouring into its platform today topped 150,000, which was the greatest single-day pledge flow to date. However, following this quantity, the platform activated security limits using Function "Staking Rate Limit."
Without suspending pledged deposits, this function provides a dynamic method that can address any issues brought on by a high influx of committed tokens (such as diluted pledge rewards) by reducing the quantity of minted stETH and gradually replenishing it.
It operates by limiting the total number of stETH that can be created at once based on previous deposits (a moving 24-hour window), and then restoring this capacity block by block. Due to the recovery rate of 6200 ETH each hour, the majority of users won't likely be impacted.
Users are reminded by Lido that this prohibition will apply to anyone attempting to mint stETH on the Lido platform. Users can try a modest amount or wait a while if the message "stETH cannot be minted at this moment" occurs.
Lookonchain, the on-chain data analytics platform, reported on February 25 that an address linked to Justin Sun invested 150,100 ETH, amounting to over $240 million, in Lido. In exchange, Sun received an equal amount of stETH.
Users may earn interest by staking any amount of Ethereum with Lido Finance, the most liquid staking system on the market. Users receive the staked Ethereum token stETH in return for their deposits.
As of right now, Ethereum deposits cannot be withdrawn, at least not before the Shanghai fork that will happen next month.