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Delayed stETH Rebase: Reasons Behind Lido’s Announcement

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On April 8, it was reported that Lido of the Liquidity Pledge Agreement tweeted that today\’s stETH rebase will be delayed due to the edge case error in the off chain oracle machine

Delayed stETH Rebase: Reasons Behind Lidos Announcement

On April 8, it was reported that Lido of the Liquidity Pledge Agreement tweeted that today’s stETH rebase will be delayed due to the edge case error in the off chain oracle machine code. The Lido team stated that this issue will not affect the security of user funds, and all rewards will still be recorded normally.

Lido: Due to the code error of the off chain oracle machine, the steth rebasing will be delayed today

Introduction

Recently, Lido of the Liquidity Pledge Agreement announced that today’s stETH rebase would be delayed due to an error in the off-chain oracle machine code. Lido assures users that this delay will not affect the security of their funds, and all rewards will be recorded normally. In this article, we’ll delve deeper into the reasons behind this announcement and the importance of stETH rebase.

What is stETH Rebase?

Before discussing the recent announcement of the delayed stETH rebase, it’s important to know what stETH is and the significance of the rebase. StETH is a cryptocurrency token that is pegged to the Ethereum network. It allows Ethereum users to stake their Ethereum in a decentralized manner and receive a token representation of their stake, stETH. The token can be traded or held by the user as a representation of their ownership of the underlying staked Ethereum.
A rebase is an important operation that adjusts the token supply based on the peg with Ethereum network value. It ensures that the supply of stETH tokens grows or shrinks accordingly with the value of Ethereum. The primary goal of this operation is to maintain a stable peg of the token value to the underlying asset.

Reasons Behind Delayed stETH Rebase

In a tweet on April 8, Lido of the Liquidity Pledge Agreement explained that stETH rebase would be delayed. According to the tweet, the reason for this delay is an edge case error in off-chain oracle machine code. This error prevented the oracle from updating the reference ETH/USD price. As a result, the rebase must be delayed until the problem has been solved.
This error is not related to the smart contract of stETH or Lido itself. Instead, it’s a problem in a third-party service delegated to provide stETH with real-time price feeds. The disruption generated by the off-chain oracle machine code’s mistake resulted in the supply of stETH in units per Ethereum being inaccurate.
Lido assured users that this error would not affect the security of their funds or their staking rewards. However, the impact of the error may lead to a deviation from the stable price peg of the token.

Importance of stETH Rebase

If users decide to hold stETH, they expect to receive a certain reward expressed in terms of a percentage yield of their holdings. Staking stETH must be done in a decentralized manner since the security and transparency of the network must be maintained. Using a trusted third-party service to provide accurate pricing feeds is important to ensure that the rewards earned by staking are predictable and reliable.
Therefore, the importance of stETH rebase is apparent. The rebasing operation helps keep the token supply stable and directly in sync with underlying Ethereum. It’s important to make sure that rebasing occurs smoothly and accurately, as it affects the overall stability of the network and the user’s confidence in the value of their staked Ethereum.

Conclusion

In conclusion, Lido of the Liquidity Pledge Agreement announced a delay in the stETH rebase, which is an important operation that adjusts the token supply according to the Ethereum network value. The reason for this delay is an edge case error in off-chain oracle machine code. This error only affected the price feed used for the rebase, and all user funds and rewards are safe. As the rebasing operation ensures the stability of stETH, it’s important to work closely with third-party service providers to avoid future problems like this.

FAQs

1. Is my stETH safe?

Yes, the edge case error in off-chain oracle machine code did not affect the security of user funds, nor did it impact staking rewards or liquidity provision.

2. When will the stETH rebase occur?

Lido of the Liquidity Pledge Agreement did not reveal a specific date; instead, they said that the rebase would be delayed until the off-chain oracle error is resolved.

3. Why is stETH rebase important?

The rebasing operation helps keep the token supply stable and directly in sync with underlying Ethereum, which guarantees a stable peg of the token value to the underlying asset.

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