LSD and Lido engage in a war of words over Rocket Pool's centralization issues, with accusations of seeking credit flying back and forth.

Two well-known Ethereum liquidity staking protocols, Lido and Rocket Pool, recently engaged in a heated debate on Twitter. The dispute began when the Lido team criticized Rocket Pool for its centralization issues and risks. However, Rocket Pool seemed unfazed by Lido's accusations, as they are no strangers to such criticisms.

During the deep dive into the @Rocket_Pool contracts @LidoFinance Community Staking team discovered an astonishing fact – the Rocket Pool team owns EOA (https://t.co/rTCAZAfrQ8) that can CHANGE ANY PARAMS and call ANY method on the pDAO contracts!

— Dmitriy Gusakov (@d_gusakov) July 4, 2023

Lido Team Criticizes Rocket Pool

According to a report by CoinTelegraph here, Lido's community staker, Dmitriy Gusakov, pointed out on Twitter that Rocket Pool appears to have a centralization issue.

He mentioned that after a thorough review of Rocket Pool's contracts, the Lido team discovered that Rocket Pool team controls an EOA external account that can change any parameters and call any methods on the pDAO contract.

In other words, the team can freely control the inflation rate of PRL, deposit fees, and even embezzle the protocol's reserve funds.

Note: pDAO is a governance DAO composed of Rocket Pool node operators.

In response, Dmitriy stated that this should not be the way a permissionless protocol operates, and mentioned that such actions in Lido are controlled by LidoDAO.

Rocket Pool Team Working on Addressing Issues

In response to the accusations from the Lido team, a Rocket Pool community supporter, Jasper, mentioned that Dmitriy did not mention that Rocket Pool is developing an on-chain voting mechanism for pDAO and stated that the upcoming Saturn upgrade will address the lack of decentralization issue.

Additionally, Rocket Pool Grants Committee member, Waq, sarcastically commented that the Lido team has brought forth another "fresh" discovery of how bad Rocket Pool is, without acknowledging the improvements and progress made by the Rocket Pool team over the past year. Once the team resolves this issue, Lido will rush to take credit as usual.

Here we go again with the "brand new" discoveries of @Rocket_Pool being super malicious again 🙄 Not a single word of how the community has been working for over a year on fixing this and the progress we're making. Once we fix this, they'll rush to take the credit like always.

— Waq | Rocket Fuel | 🦇🔊 | 🚀🪐 (@waqwaqattack) July 4, 2023

Lido Maintains a Significant Lead Over Rocket Pool in Market Share

From Waq's statement, it seems that Lido enjoys pointing out where Rocket Pool falls short and promoting the strengths of its own protocol. Looking at the market share, Rocket Pool, as the second-largest decentralized staking protocol, views Lido as a reasonable competitor.

However, the market shares of the two protocols are still significantly different, with Rocket Pool's 8% compared to Lido's 74.5%, making Rocket Pool's position as a non-threat and Lido's dominance unshaken.

Recent Progress by Rocket Pool: Atlas upgrade completed! Run an Ethereum node for just 8ETH