Decentralized liquid staking protocol Diva announces it will shut down and will not launch its mainnet.
52 minutes ago
Decentralized liquid staking protocol Diva Staking announced in a social media post that it will shut down the project and will not launch its mainnet. The team stated the decision was reached after thorough discussions, and apologized to users who deposited in its Early Staker Vaults; related funds can now be withdrawn via Enzyme with no further waiting. Since running out of funds in mid-2024, the three-person team has operated without income or compensation for roughly two and a half years. While they believed Ethereum needed a staking solution where validator keys are not controlled by a small number of centralized entities, they are no longer able to continue development. Diva launched on the Hoodi testnet earlier this summer, running stably for about four months without incidents. However, the project failed to secure support from large institutional backers for mainnet launch, and the small three-person team cannot cover the costs of a new audit and mainnet operation and maintenance. The official emphasized prioritizing security, opting for an honest wind-down rather than risking a problematic mainnet launch. The announcement also cited shifts in market conditions: the demand structure for liquid staking tokens (LSTs) has changed since the Shanghai upgrade. As of the end of June this year, BitMine, Coinbase, and Binance together hold approximately 30% of all staked ETH (11.5%, 10.9%, and 7.9% respectively), a concentration level comparable to the market’s earlier concerns when Lido’s share neared one-third. The team also congratulated Lido on advancing its Simple DVT framework and opening it to independent stakers.
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