Lido: The highest daily pledge flow has been set today, and the “Staking Rate Limit” limit has been triggered

On February 25, Lido, the liquidity pledge agreement, announced that the number of pledge ETHs flowing into its platform today exceeded 150000, setting the highest daily pledge flow so far. However, after reaching this number, the platform triggered the security limit function “Staking Rate Limit”. This function is a dynamic mechanism, which can respond to the problem of dilution of pledge rewards due to the inflow of large flow of pledge tokens without suspending pledge deposits, but will reduce the number of cast stETH and then gradually supplement it.

Interpretation of this information:

On February 25, Lido, a liquidity pledge agreement, made an announcement that over 150000 ETHs had flown into its platform. This record-breaking achievement had made Lido the leading platform in terms of the daily flow of pledge tokens onto the platform. However, with such a large influx of pledge tokens, Lido activated its security limit function, the “Staking Rate Limit”. This mechanism operates dynamically, responding to the problem of dilution of pledge rewards that can occur when large-scale pledge tokens are flowing into the platform without suspending pledge deposits.

The Staking Rate Limit function is critical in maintaining the integrity of the reward system for pledge tokens. When activated, it reduces the number of cast stETH gradually and supplements it over time. By doing so, the function ensures that the casting of stETH remains proportional to the inflow of pledge tokens. Thus, Lido ensures that the reward rate remains stable and does not fluctuate much in response to the varying inflow of stakes.

The Staking Rate Limit function is one of the many intelligent mechanisms that Lido has put in place to manage stake inflows dynamically. Lido’s system is flexible, allowing token holders to stake small or massive amounts on the platform, without affecting the reward system’s stability. Lido’s approach ensures that the reward system stays stable even as the token’s value fluctuates. Thus, using Lido’s platform, holders can mint ETH effortlessly and securely.

In summary, Lido has set the record for the highest daily pledge flow, exceeding 150000 ETH, showing their ability to manage massive inflows of stake tokens on their platform. They have implemented a “Staking Rate Limit” function that dynamically responds to fluctuations in stake inflow, maintaining the integrity of the reward system. This shows that Lido has built a flexible and intelligent system that ensures the stability of rewards, irrespective of the amount of stake deposited.