Lido v2: what are the advantages of the new update

Lido Finance is a decentralized platform focused on betting on the Ethereum network. Thanks to this, users can place $ETH coins and get stETH in the same amount for it. At the end of the staking, there will be a reverse conversion to ETH, which can be withdrawn.

At the moment, the Lido is the largest platform where liquid bets are made. Its volume occupies more than 31% of the entire market. Also, the fastest growth in the number of validators per month is noticeable here, in comparison with other sites. The update happened a few days ago, and therefore their number will only grow.

The update was carried out to improve the work of staking. To do this, the stETH technology was integrated:ETH Betting and Withdrawal Router. Thanks to this, it becomes possible to introduce new staking functions in the Lido.

As a result, an efficient infrastructure appears with improved opportunities for carrying out actions for placing bets.

What are the key features of v2

The development team wants to enable users to choose alternatives to centralized betting sites. At the same time, it seeks to eliminate various technical and financial problems that arose due to the launch of the node.

Throughout their work, they adhere to high standards of security and confidentiality. The team also strives to make the platform user-friendly.

The update should help to improve an inclusive, open and transparent platform. Developers also strive to preserve the decentralization of the Ethereum crypto network itself.

What preparations were made for the launch

Since there are a huge number of coins in the system, the level of security plays an important role here. The company has created 7 different audit and test networks, where 27 validators are located. This ensures the safety of funds.

If you've been following the news, you probably know that 9 independent audits were conducted. During the inspections, various malfunctions were detected, which were subsequently eliminated.

Lido v2 makes a breakthrough

Thanks to the update, it becomes possible to withdraw ETH funds from staking. Users get a free choice to place tokens in staking or withdraw coins at their discretion. This will give a new impetus to the development of the market and ensure a larger layout in the project of decentralized finance.

The Staking Router technology, together with a model architecture for node operators, will help accelerate the development of the project on Ethereum and behind the main crypto network.

To reduce the risks that arise with distributed node operators, all accounting information is done on smart contracts with the ceremony. During its passage, participants sign a circular announcement. It is transmitted to the network at the consensus level.

When the update is deployed, network decentralization increases, and the Lido algorithm becomes more correct and efficient. Now you can not just place bets, but also cancel them.

The Staking Router becomes the core of the Lido. Due to it, there is a relationship between validators, developers and stackingers for further decentralized management. The benefits of the technology are as follows:

·     Users are provided with more diverse and secure node operators. Deposits are distributed among independent participants. Thanks to this, the dynamics of the network will not be idle and the stability of Ethereum itself will increase.

·     Absolutely any network participants can become validators, starting from individual users, ending with professional teams and companies. Due to this, the possibilities of conducting operations in the Lido ecosystem are expanded.

·     Developers can receive recommendations and deployment capabilities of modules with various elements directly from users.

As a result, all network members benefit from the upgrade.

Features of withdrawing coins from staking

As you know, in Ethereum, the consensus and execution levels function separately. Therefore, v2 offers two options for withdrawing coins from staking: Turbo and Bunker.

In the first case, applications for the withdrawal of tokens are processed quickly. To do this, coins from deposits and rewards are used. This mode is set by default. Applications are processed in a few hours (minimum), while the validator does not need to leave.

To organize the withdrawal of coins in difficult cases, the Bunker mode is launched. It is important not to allow experienced players to have an advantage over other participants due to the delay in withdrawing coins during this protocol.

Staking becomes convenient and safe. Thanks to the update, the decentralization of the main network is maintained.

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