Celsius, the bankrupt crypto lending firm, has been quite anxious to receive its staked Ether stash back from Lido- the liquid staking platform, which would enable all forms of withdrawals this week.
The firm initiated this process of withdrawing from the protocol itself. According to the transactional data, it has further requested the withdrawal of around 428,084 stETH in batches of 1,000. The stash is currently valued at a price of around $784.7 million. This move further follows a transaction of a similar amount of stETH on 15th May in preparation for yet another withdrawal. Once the process of withdrawal is done with, the company would be receiving the equivalent in Ether and the tokens of stETH will be burnt by Lido.
Celsius Is Looking To Get Its stETH Back From Lido
According to Dune Analytics, the total amount of stETH in the withdrawal queue is around 442,000 from close to 141 requests. It also has a valuation of $808 million, though Celsius seems to be held responsible for a vast majority of it. The total amount that has been processed by now is 629 ETH, according to Dune.
On 16th May, Lido mentioned that it had enough ETH as a buffer to absorb the multiple requests that were placed. However, there were quite a large number of Ether withdrawal requests from Lido, which could have a major impact on the entire queue of network withdrawal- which is in itself a dynamic process. For those wondering, Lido is the single biggest staking provider- with a market share of around 30%- therefore this company might have to wait for a long time for ETH.
One of the research analysts at 21Share, Tom Wan, went on to suggest that if the requests for unstaking exceeded 10%, it could definitely cause a far larger number of validator exits. This would, in retrospect, potentially lead to bigger queues for withdrawals. This capital would then be used as a part of the restructuring efforts by Celsius.