Lido Finance’s [LDO] latest audit data is out, here’s what you need to know
- Lido’s audit disclosed critical points of weakness.
- Lido’s TVL approached its previous ATH as platform demand recovered.
Lido [LDO] recently went through an audit process and the results were published on 3 May. According to Statemind, the blockchain auditing firm that conducted the audit, multiple issues were uncovered.
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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 included funds at risk of being stolen by malicious staking modules and reentrancy when depositing buffered ether. The first issue underscores a potential risk that may lay the foundation for loss.
?We hereby release @LidoFinance V2 audit report! Biggest report for the biggest DeFi protocol.
?120 Total issues found
Congrats to our fellow audit teams on finding some portion of them?
Full report here: https://t.co/zviXLkv2k4#defi #lido… pic.twitter.com/spuEhfnKwU
— Statemind (@statemindio) May 3, 2023
So, should users be worried about their funds being at risk? Not necessarily because the whole goal of the audit was to assess the state of the network and iron out any kinks before they evolved into bigger problems.
Evaluating the state of Lido staking
There is no doubt that the market has recently been experiencing a slowdown and lower investor confidence. But has this affected the Lido staking platform, as well as demand for its services?
A slowdown was observed in the number of active addresses, which is in line with the bearish market conditions in the second half of April. However, active addresses have increased slightly since the start of May, confirming a bit of recovery.
This is contrary to expectations of accumulation during bearish conditions. Meanwhile, the total addresses maintained steady growth in the last four weeks. A confirmation that the network is still achieving healthy user growth despite the recent market slowdown.
The month of May is shaping up to be a healthy month for Lido’s total value locked. Roughly 6.39 million ETH is currently staked, representing $12.19 billion at ETH’s current market value.
The current level of ETH staked is noteworthy because it is rapidly closing in on the previous high of 6.37 million ETH in May 2022.
How many are 1,10,100 LDOs worth today
Lido had a higher ETH value staked in May last year because of the higher price tag at the time. Nevertheless, the current uptick represents a recovery in the amount of staked ETH, hence underscoring a healthy recovery in demand for the platform.
We may see a new high in the amount of ETH and other cryptos staked on Lido especially if market conditions improve.