Crypto
Lido Moves $16B Staked ETH to Post-Pectra Validators Amid Governance Update
Lido's staked ETH has been moved to Ethereum's larger post-Pectra validators as part of a governance update. This move is aimed at collapsing thousands of identical 32 ETH validators into far fewer, much larger ones.
The update also requires operators to lock up their own ETH as collateral for the first time, which means they have skin in the game and must post bonds to ensure operational integrity.
The migration will take months due to Ethereum's limits on how quickly validators can exit and be restaked. This will result in lost rewards, with Lido estimating a cost of about 738.5 ETH over the next 117 days.