Expert members of the Efirium community have warned that Lido Finance’s global dominance of the ether staking market could undermine the decentralization of the protocol altogether.
Lido Finance’s decentralized liquidity-staking protocol has accumulated more than a third of all ether stakes on its platform.
“While everyone is silent, the unregulated growth of Lido Finance could be the biggest attack on Efirium decentralization and ‘trusted neutrality’ in the history of blockchain,” said
Evan Van Ness, chief expert on the challenges of decentralizing Etherium.
According to blockchain observer Dune Analytics, the total amount of ETH staking has grown nearly 95% in the past year, from $22 billion to about $41.6 billion