Konstantin Lomashuk and Vasily Shapovalov founded the Lido project. They also created the P2P Validator staking service, and Vasiliy took the position of Chief Technology Officer at P2P Validator (p2p.org).
Almost nothing is known about Vasily’s personal life, and the information is mainly related to his development and participation in various projects in his professional path.
With over ten years of experience in software development and project management, he participated in architecture design and development projects in information security, formal verification, virtualization, and blockchain-based development.
One of these projects is Lido. Lido is an Ethereum protocol that provides liquid staking services. When customers stake their ETH with Lido, they receive a liquid token representing their stake, stETH. In the beginning, Lido was tested on the Görli Testnet, and the staking service started on 2020 December 19. LDO tokens were issued, which are used in voting.
The project raised $2 million In December 2020. The investors listing includes Semantic Ventures, ParaFi Capital, Terra, Stakefish, Staking Facilities, MakerDAO founder Rune Christensen, Aave CEO Stani Kulechov, and Synthetix founder Kane Warwick.
Subsequently, the Paradigm fund invested 15,120 ETH in Lido, receiving 70 million LDO. A vote approved the investment of the DAO. In March 2022, the service raised $70 million from Andreessen Horowitz.
Vasiliy Shapovalov, Lido DAO member and P2P CTO, commented: “Integrating Chainlink price feeds is an important step in supporting the next wave of consolidation in Lido collateralized assets, such as in money markets and certain yield farming applications.”
“Chainlink effectively serves as an important enabler for DeFi protocols looking to add support for assets like stETH quickly and securely, eliminating manual processes and reducing the security risks of using unproven oracle solutions,” Shapovalov clarified.
“In addition to democratizing access to staking rewards, one of Lido’s primary value propositions is to increase the utility of staking assets without sacrificing the potential cryptoeconomic security that staking assets bring to blockchains and various other protocols,” the announcement emphasized.
A proposal by Vasiliy Shapovalov to impose a limit on recreation facilities’ most stake is presently being debated by its community. It’s been instructed that recreation facilities could start to associate existential threats to Ethereum once it transits to Proof-of-Stake. Whether or not to limit the protocol’s maximum share of ETH tokens is the big issue that the recreation facility community is debating.
In line with the proposal set out by Vasiliy Shapovalov, reasons to limit Lido’s market share of the ETH total supply embrace the “possibility of Lido’s governance getting used to pressure operators into acting.
It’s joined to take advantage of things like multi-block MEV, execute profitable reorgs, and censor bound transactions” and recreation facility doubtless motility a general threat to Ethereum.
Arguments opposing the proposal embrace the chance of a KYC-abiding centralized exchange dominating the staking by-product market following the recreation facility’s self-regulation. The Lido team has declared that a core reason behind Lido’s existence was to stop precisely such a scenario.
Ethereum founder Vitalik Buterin supported the proposal on Twitter. He says that “price gouging by prime stake pool providers” ought to be legitimized and associated with disputation if pool management is over 15% of the provision and should be expected “to keep increasing its fee rate until it goes back below 15%.” Attainable alternative suggestions for acceptable ratios, similar to 22% or 33%, were additionally mentioned within the recreation facility proposal.
Crypto temperament Degen Spartan on the opposite hand, came out against the limitation, stating that “numerous pool operators operating below a unified liquid stacking protocol banner” was different from one entity having complete control over an ETH staking pool.
Intensifying the uncertainty towards Lido’s total ETH market share has been the timeline for Ethereum’s close transition from Proof-of-Work to Proof-of-Stake. The change is called the “Merge” and is scheduled for August; however, it has been delayed several times.