May 15th marks a new dawn for the Ethereum liquid staking protocol, Lido Finance, as it seeks to launch the highly anticipated V2 update on its platform.
According to Lido contributors, the V2 update is its biggest platform update yet and a step in the right direction toward further decentralization in the blockchain industry.
The update aims to enhance the user staking experience on Lido Finance protocol by introducing two new features which achieve this purpose.
LDO, the official native token of the Lido finance protocol and liquid staking platform, is seen to soar in price in today’s trading session as bulls gear up in response to the incoming update.
What Is The Lido Finance Protocol V2 Update
Earlier in February 2023, an official Lido Finance announcement release introduced a V2 update proposal that brings unique enhancement features to its Ethereum liquid staking platform.
— Lido (@LidoFinance) February 7, 2023
Fast forward to May, the team scheduled a final on-chain voting process for its V2 update proposal to take place from the 12th-15th following the success of the Ethereum Shapella upgrade in April.
According to a tweet from Lido’s official handle, if the vote on the proposal passes and is successful, the V2 update will go live on May 15th, which is today, and support direct in-protocol stETH: ETH withdrawals and staking router architecture.
So far, the V2 update proposal has been approved as it got the required approval and support rating needed for the update.
— Lido (@LidoFinance) May 15, 2023
The V2 update on the biggest liquid staking platform brings two new core platform features, including a Staking Router and a Withdrawal feature.
The Staking Router feature on the V2 update promotes a diverse and decentralized ecosystem of validators by allowing the admission of new node operators. Using a new modular architectural design and framework, the V2 Staking Router enables anyone to develop on-ramps for node operators ranging from Distributed Validator Technology (DVT), solo stakers, and Distributed Autonomous Organizations (DAOs).
The second feature on the update, withdrawals, will be a game changer for Lido Finance as it enables stakers on the platform who hold stETH to have access to withdrawals at a 1:1 ratio.
LDO Daily Chart Analysis
Data reports from Coinmarketcap see the native token of the biggest liquid staking platform, LDO, trading at $2.12, a 9.58% increase in the last 24 hours. LDO market capitalization has also increased by 9.43% at the time of writing. LDO opened with a bullish candle on the daily timeframe and is among the top three gainers in the cryptocurrency markets today.
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LDO trades at the strong resistance area at $2.12, with bulls looking to break that level for more upside movements. However, if bulls fail to break that critical area, the asset could experience a retracement in price and trade lower.
This resistance line and 50 EMA at $2.13 are major hurdles the asset must break to experience a rally.
Lido (LDO) bulls take charge on the daily timeframe but faces key resistance level | Source: LDOUSD on TradingView.com
Featured image from Istock, chart from TradingView.com