Lido Prepares for Decentralisation Amid SEC Allegations
The post Lido Prepares for Decentralisation Amid SEC Allegations appeared first on Coinpedia Fintech News
Lido, which is a leading liquid staking provider, is preparing for a big move. It is set to integrate a diverse set of Ethereum node operators. The said decentralisation plan of Lido aims to enhance its staking protocol. Interestingly, the development comes at the time the liquid staking provider is facing serious allegations from the United States Securities and Exchange Commission.
How will Lido’s move impact the sector? What are those inner sectors which lie underneath this move? Let’s discover together!
Lido’s Move Towards Decentralisation Explained
Lido is preparing to take a few important steps to achieve decentralisation. The launch of the Community Staking Model on the Holesky test network is an important step, which is expected to happen as part of the move. What this step targets to provide is a permissionless entry for node operators. This will promote inclusivity for solo stakers and amateur operators. It ultimately leads towards the diversification of the node operator set.
SEC Allegations against Lido
As said earlier, some serious allegations were raised by the SEC against Lido. In a lawsuit filed against Consensys, which is an Ethereum software provider, the SEC implicated the liquid staking token of Lido, stETH, as an unregistered security. Notably, stETH has a market cap of $33 billion. The coin commands over 29% share of the total 33.3 million staked ETH. Importantly, Lido is a leading DeFi protocol by TVL.
Lido Market Response and Future Outlook
Lido decentralisation and SEC security are the two major factors capable of influencing the Lido market. Let’s see whether any of these has affected the market performance. LDO, which is a governance token of Lido, has seen a decline of 6.3% in the past 24 hours. The token is currently trading at $1.92, and it has a market cap of $1.7 billion. Notably, over 19.7% decline has been witnessed in the last 30 days.
The big question is whether the decentralization move of Lido can help it to overcome the difficulties it is facing due to the SEC scrutiny. It is yet to be seen.
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