Lido, an Ethereum staking provider, has recently disclosed in its Node Operator Community Call #5 the intention to integrate NFTs into the unstaking procedure. Users will obtain a transferable NFT that signifies their staked ether (ETH) withdrawal request.
NFTs to Revolutionize Ether Withdrawals on Lido
During the community call, Mariya Muzyko, Lido’s product manager, clarified that users will be issued a Lido-created NFT symbolizing the withdrawal request once they initiate it. This NFT can then be used to secure their ETH rewards. After users redeem and claim their ETH, the NFT is subsequently destroyed.
Lido currently occupies the top position in total value locked among all decentralized finance (DeFi) protocols and now plans to facilitate withdrawals further by taking this innovative approach. The initiative will take place after the upcoming major upgrade of the Ethereum blockchain, known as Shanghai.
Ether withdrawals on Lido will follow a two-step process, request and claim, allowing users to unstake their stETH and obtain ETH at a 1:1 ratio.
Lido’s NFT integration marks another industry milestone
Lido had previously pioneered liquidity access for ETH holders looking to stake their tokens by launching a derivative token called stETH. The token embodies the combined value of an investor’s initial deposit and accumulated interest, making it compatible with a multitude of DeFi platforms.
Incorporating an NFT into the withdrawal request process represents yet another groundbreaking development within the industry.
Lido promises speedy withdrawals and no imposed fees
Withdrawal-request NFTs will possess the ability to be transferred, enabling users to send the NFT to a different address and giving that address the entitlement to the related ether rewards.
Lido has assured that it will not impose any royalty fees on the sale of these NFTs in secondary markets.
The processing time for withdrawal periods is anticipated to range between one and five days, contingent upon the stETH quantity in the withdrawal and the overall volume of requests, as discussed in the community call.
The move reinforces Lido’s dedication to innovation and improvement of user experiences in the DeFi landscape.
Source: nft.news
This news is published and verified by the NFT News media team.
