by The Lido protocol of the Liquid staking platform activated a security feature called Staking Rate Limit after seeing the largest daily influx of stakes of 150,000 ETH.
On February 25 statement, the protocol clarified that the feature is a mechanism to deal with large stake inflows. Such large inflows can have side effects such as dilution of prizes, but this feature solves this problem without directly stopping deposit wagering.
The stake limit essentially reduces the amount of stETH that can be minted at any time based on deposits made in the last 24 hours. It then replenishes capacity block by block at a rate of 6,200 ETH per hour. Lido added that the limit will affect anyone who tries to mint stETH, regardless of their approach.
“If the error ‘stETH cannot be minted at this time’ is encountered, either try a smaller amount or wait for the capacity to replenish,” the protocol added.
Justin Sun deposits over 150,000 ETH
Meanwhile, a detective on the Lookonchain reported that Tron founder Justin Sun has staked over 150,000 ETH tokens on Lido.
According to Lookonchain, the crypto entrepreneur increased his holding by another 10,000 ETH, reaching a total of 201,000 ETH ($320 million).
With an APR of around 4%, many believe the reason for staking it is to earn passive income. Sun earned 18.68 ETH on his stake in the last 24 hours.
LDO increases by 9%
Meanwhile, increased activity has seen the liquid derivatives token surge by about 9% to $3.03 in the past 24 hours, according to BeinCrypto data.
LDO is one of the best performing digital assets this year. The cryptocurrency is receiving renewed interest from the community due to the upcoming Ethereum Shanghai update.
According to DeFiLlam, Lido is the largest staking provider with a total value of locked assets of $8.92 billion.
But some of the whales holding the LDO drop a token. MakerDAO founder Rune Christensen used the proceeds to sell LDOs and buy MKRs. lookonchain reported that he sold 18.8 million LDOs for $27 million DAI, $7,553 MKR ($4.67 million), and $92 ETH. The detective on the chain ahead indicated another whale that took advantage of the LDO price action.
Reservation
BeInCrypto has contacted the company or person involved in the story for an official statement on recent developments, but has yet to receive a response.
