Individual staking from April Lido Receive NFTs as part of the deposit withdrawal process. As such, decentralized finance (DeFi) protocols are meant to issue her NFT certificates whenever a user unstakes her Ether. These NFTs are used to claim ETH tokens.
Through this initiative, NFT owners can transfer their NFTs to another address, allow third parties to redeem their rewards, or sell their NFTs on the secondary market. In the latter case, Lido does not receive any royalty percentage from the sale.
Launched in 2020, Lido is the largest Total Value Locked (TVL) DeFi protocol. The platform is one of the first to offer liquidity to his ETH holders through stETH tokens. We are currently pioneering new ways to redeem staking rewards through non-fungible tokens.
Also, NFTs representing withdrawal requests are transferable, so addresses that receive NFTs can claim ETH on their behalf. One more step, NFTs could be traded on the secondary market 👀
— satBalwyn (@SatBalwynnorth) March 29, 2023
These plans have been discussed in Node Operator Community Call #5 and will go into effect when the Ethereum blockchain receives a Shanghai or Chapela upgrade in April. On Lido, users can stake her ETH and stETH in a 1:1 ratio. Tokens represent a staker’s initial deposit and accrued interest.
Withdrawing on Lido involves two steps
According to Mariya Muzyko, product manager at Lido, the process involves two steps: requesting and invoicing.
When “When a user requests a withdrawal, they receive a non-fungible token representing the withdrawal request.” This NFT will be used to recover staked ETH and accrued interest. NFTs are burned when users redeem their tokens.
That said, according to Lido, the withdrawal period is 1-5 days, depending on the amount of stETH being removed and the total number of requests processed at that time.
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*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Basil is an avid fan of blockchain technology and all its innovations, and is passionate about sharing this story with his audience. He has spent his 5+ years in the crypto space, specializing in research and creating his Web3 content for various media outlets around the world.
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