Lido, the largest decentralized finance (DeFi) protocol by total value locked, revealed plans to issue NFTs representing the required number during Node Operators Community Call #5. A user’s withdrawal request as part of the unstaking process of their ETH. These withdrawals will be activated next month after the next major upgrade to the ethereum blockchain, also dubbed Shapella by developers.
According to Lido product manager Mariya Muzyko, during a conference call Tuesday afternoon, ETH withdrawals on Lido will involve two steps: request and claim, where users can unstake their stETH on Lido and stake it 1:1. Receive ETH proportionally. After the user makes a withdrawal request, he will receive an NFT issued by Lido representing his withdrawal request. Users can then use the NFT to claim their ETH rewards. NFT is destroyed after the user redeems and claims ETH.
Request to withdraw.Source: Lido Finance
Lido is the first platform to provide liquidity access to ETH holders who want to stake their tokens by issuing derivative tokens stETH. The token represents the combined value of a user’s initial deposit plus accrued interest and can be used across multiple DeFi platforms. The inclusion of NFTs in the withdrawal request process also represents another first of its kind.
Each NFT withdrawal request will be transferable, meaning that users can transfer NFTs to another address, granting this new address the right to receive the corresponding ETH rewards. If users decide to sell their NFTs on the secondary market, Lido says it will not collect a percentage of royalties from the sale.
Withdrawals take approximately 1-5 days to process, depending on the amount of stETH in the withdrawal and the total number of requests.
- Lido STETH has a market value of 10.24 billion US dollars and has risen to No. 8 on Coingecko
- Lido and Coinbase update ETH staking schedule after Shanghai
According to CoinDesk