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The risks posed by Lido, a protocol for staking Ethereum, to the Ethereum network have been examined amidst ongoing debate. Lido allows stETH holders to veto Lido Finance proposals next year, reducing governance risk. However, concerns about smart contract risk and attack vectors have been raised. Ethereum Foundation's Mike Neuder has published an article delving into the mechanics of these attacks. Danny Ryan of Ethereum Foundation has sounded the centralization alarm, with 30% of Ether currently staked with Lido. Despite the debate, a beginner's guide to Lido highlights its importance and how it works. As the discussion continues, it is crucial to consider the risks and mechanics of Lido without resorting to sensationalism.
a lot of people i respect are concerned with lido i understand the concerns but what are the solutions? what’s stopping ethereum from enshrining LST’s?? seems to be the only solution in my smol brain
There's been a lot of debate around Lido recently, but not everyone has context on why it's so important. A beginner's guide to Lido - what it is, how it works, and the risks it poses to the Ethereum network 🧵: https://t.co/FJcArq0YXS
Yes, there is nuance to the Lido debate and 33% threshold. No, that doesn’t mean I’m going to just accept them acting like it’s not a threat to Ethereum.
PREMIERE: Is Lido a threat to Ethereum? Should we be worried? At the time of recording, 30% of Ether is staked with Lido @dannyryan is sounding the centralization alarm but are there solutions? This is what Danny has to say 👇 https://t.co/yCVkXYqjoO
Fantastic article by @mikeneuder from the Ethereum Foundation on the attack vectors on @LidoFinance Generally, I hope people look more into the actual mechanics of these attacks rather than just scream LIDO IS BAD BAD AAAAAA Lido isn't the "enemy" https://t.co/b2T4PojNLp https://t.co/cB7gBq4CEd
all the lido is bad and we should fork people would rather have ethereum be secured by social pinky promises than just fixing the protocol
An important convo @sassal0x and I had last night on his show is, just because Lido gets to 33% doesn’t instantly mean Ethereum is in trouble. Ya it’s not great but you still have to understand that Lido’s 30+ node runners would have to collude and burn down their own business.
The risks Lido poses to the network that are brought up are mostly the following 1. LDO governance risk 2. Smart contract risk On (1), Lido will let stETH holders veto LDO proposals next year (if vote passes). Long-term, the protocol will ossify so there is less need for… https://t.co/WCUGxsxPgZ