In a recent video on her highly popular YouTube channel “Crypto Tips,” Heidi Chakos, a well-known crypto educator and influencer, discussed the increasing influence of Lido, a liquid staking platform, on the Ethereum network.
According to Heidi, Lido currently controls 29% of the staking power on the Ethereum network. She pointed out that Ethereum has recently transitioned from a proof-of-work to a proof-of-stake model, which means that entities with significant staking power could have considerable influence over the network.
Heidi emphasized that in Ethereum’s new proof-of-stake model, a 33% staking power is akin to the 51% power in Bitcoin’s proof-of-work blockchains. She warned that if any node gains 33% staking power, it could potentially compromise the network’s neutrality and immutability. She clarified that Lido is not acting with malicious intent but has gained this level of influence due to being an early market player.
Heidi noted that Lido offers a 10% commission rate, significantly lower than other staking options like Rocket Pool and Coinbase, which charge 15% and 25%, respectively. She attributed Lido’s rapid market share growth to this competitive advantage and its user-friendly staking process, which requires only a MetaMask or a hardware wallet like Trezor.
Heidi warned that if Lido encounters a bug or other issues, the entire Ethereum network could be at risk. This would affect decentralized exchanges, DeFi platforms, NFTs, and layer-two solutions. She had initially thought that centralized exchanges would pose the most significant risk of centralized control over Ethereum, but Lido has proven her wrong.
According to Heidi, Lido is actively working to become more decentralized. She explained that when users stake through Lido, their stakes are dispersed across multiple staking operators, not just those connected to Lido. She also mentioned that Lido offers a robust bug bounty program, with up to $2 million for the discovery of any code vulnerabilities.
Heidi revealed that she and her partner Toby have been staking their Ethereum on Lido, inadvertently contributing to the platform’s growing influence. However, they are now considering other staking options, taking into account factors like commission rates and ease of use. She also mentioned that she would discuss other staking options in a future video.
Heidi encouraged her viewers to subscribe to her channel for updates on other staking options and to join the CT Club for exclusive content. She emphasized that if Lido’s influence becomes a significant concern, they would consider withdrawing their stakes, and CT Club members would be the first to know.
Featured Image via Pixabay