- Lido’s audit revealed critical weaknesses.
- Lido’s TVL approached its previous ATH as demand for the platform recovered.
Lido [LDO] recently went through an audit process and the results were published on May 3. According to Statemind, the blockchain audit firm that conducted the audit, multiple issues have come to light.
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According to the official announcement, a total of 120 issues were found during the audit and two of them were classified as critical.
They include funds that were at risk of being stolen by malicious staking modules and re-entry when depositing buffered ether. The first issue highlights a potential risk that can lay the groundwork for loss.
📖 We hereby release @LidoFinance V2 audit report! Largest report for the largest DeFi protocol.
🔥120 Total issues found
🔥2 Criticism
🔥8 highlights
🔥17 Med
Congratulations to our fellow audit teams for finding some of them😉
Full report here: https://t.co/zviXLkv2k4#defi #lido… pic.twitter.com/spuEhfnKwU— Statemind (@statemindio) May 3, 2023
So, should users worry about their money being at risk? Not necessarily because the whole point of the audit was to assess the state of the network and iron out any kinks before they grew into bigger problems.
Assessment of the state of Lido strike
There is no doubt that the market has experienced a slowdown and lower investor confidence recently. But has this affected the Lido staking platform and the demand for its services?
A slowdown was observed in the number of active addresses, which is in line with bearish market conditions in the second half of April. However, the number of active addresses has increased slightly since the beginning of May, confirming a slight recovery.
Source: Glassnode
The decline in the number of active addresses reveals the demand for Lido staking depending on prevailing market conditions. In the above case, the bearish market conditions attracted less activity.
This is contrary to the expectation of accumulation during bearish conditions. Meanwhile, the total number of addresses has continued to grow steadily over the past four weeks. A confirmation that the network is still achieving healthy user growth despite the recent market slowdown.
The month of May appears to be a healthy month for Lido’s overall value locked. There is currently about 6.39 million ETH wagered, which equates to $12.19 billion at the current market value of ETH.
The current level of ETH deployed is notable as it is fast approaching the previous high of 6.37 million ETH in May 2022.
Source: DeFiLlama
How much are 1,10,100 LDOs worth today
Lido had staked a higher ETH value in May last year due to its higher price tag at the time. Nevertheless, the current uptick represents a recovery in the amount of ETH staked, underlining a healthy recovery in demand for the platform.
We may see a new high in the amount of ETH and other cryptos wagered on Lido, especially if market conditions improve.
