Lido provides updates on the decentralization plans and the state of affairs. LDO fails to drum up a large enough rally to move out of its current range.
The latest update was about Lido’s migration to decentralization and self-custody. There have been concerns in the past about Lido being centralized. The update details the staking platform’s efforts to address those concerns and here’s what you need to know.
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According to the update, Lido must go through three steps to transform into a fully reliable protocol. The rotation of the withdrawal key is the first step necessary for the transition to a trustless future.
The update lays out the aspects of each step and why they are important to the direction of the protocol. However, the price of the token does not seem to have gained much from this new development.
An update on recording key rotation:
TL;DR
– dc4bc audit (published)
– Withdrawal key rotation ceremony (started)
– First key rotation message (signed)Importantly, this is the first of three major steps required to make Lido a fully reliable protocol.https://t.co/1Jm7dn5xLA pic.twitter.com/nFYRGuKuFL
— Lido (@LidoFinance) March 17, 2023
One of the most notable aspects of the update is that it clarifies the methodology involved in unlocking ETH deployed prior to July 2021. Lido expects the measures to facilitate a smooth unlocking and withdrawal process.
The update also reveals that eight issues have been fixed and there were no critical challenges. Lido noted that the generated messages will be broadcast after the Shapella hardfork.
A look at how LDO is doing after recent events
LDO supply in smart contracts fell from 45.74% at the start of the second week of March to 45.09% on March 16. The transfer rate experienced a marginal increase during the same period.
Source: Glassnode
The cryptocurrency market has just concluded a bullish week. However, LDO’s performance does not necessarily reflect that weekly result.
This is because the press price of $2.56 represented a 16% discount from the weekly high. Nevertheless, it managed a 12% gain from its mid-week lows.
Source: TradingView
LDO’s inability to rebound strongly and reach a new month-to-date high confirms a lack of strong momentum and low investor interest.
During the current rally, attention shifted more towards Bitcoin and Ethereum. Nevertheless, the price of LDO has shown relative weakness, evidenced by its inability to stay above its 50-day moving average.
How much are 1,10,100 LDOs worth today?
An analysis of LDO exchange flows reveals several important observations. The first is that both foreign exchange inflows and outflows have declined since March 15. This could explain the lack of strong bullish momentum that has prevented LDO from reaching a new high over the past two weeks.
Source: Glassnode
The second key observation is that the outflows from the stock market still exceeded the inflows at the time of writing, hence the bullish dominance. Nevertheless, the low volumes indicate low whale activity. LDO is not expected to generate much more profit if exchange rates continue to fall.
In addition, uncertainty about whether strikers will sell staked funds when unlocked can discourage strong accumulation.
This post Lido Finance expenses are updated on their journey towards full decentralization
was published first on https://ambcrypto.com/lido-finance-issues-update-on-its-journey-towards-full-decentralization/
