Liquid staking giant Lido uses NFTs to manage Ethereum withdrawals
Lido’s ETH Withdrawal Feature
Lido Finance (LDO), the largest liquid staking protocol, announced on the 28th that it plans to utilize NFTs (non-fungible tokens) in the withdrawal process of cryptocurrency Ethereum (ETH). bottom. Acquired NFTs can be transferred, so the right to claim ETH staking rewards can be transferred and traded.
Also on the same day, Lido reported that it had successfully completed its first withdrawal test on the Ethereum testnet Goeli. LDO tokens are up 13.38% from the previous day (at the time of writing: data source CoinMarketCap).
In addition to successfully testing Bunker mode over the weekend, Lido contributors have successfully tested the user flow for Ethereum withdrawals and will be demonstrating this (along with the UI) on today’sNOM call at 18:00 UTC. https://t. co/jkyOa8ECfP
—Lido (@LidoFinance) March 28, 2023
Lido is the top provider of “liquid staking” accounting for 31% (5.64 million ETH) of Ethereum’s total staking (at the time of writing). Receive a derivative token (stETH) issued at a 1:1 ratio to the original capital (ETH) and operate it in DeFi (decentralized finance). When redeeming stETH, you can earn staking rewards (ETH) along with the original capital.
Ethereum is preparing for a large-scale upgrade “Shapella (Shanghai + Capella = Shapella)” on April 13 (Japan time), with 17.98 million ETH (equivalent to approximately 4.2 trillion yen) locked up and staking rewards You can withdraw for the first time.
In line with this, Lido is also planning to implement an upgrade “Lido V2”, which will allow stETH to be unstaked to recover the original funds and staking rewards. In addition, stETH can be sold on the market at this time, but in that case, the staking reward will be abandoned.
connection:Ethereum “Shanghai”, mainnet implementation date decided
Claim ETH with NFTs
According to Lido product manager Mariya Muzyko, the withdrawal process for ETH staked on Lido consists of two stages: “request” and “claim”.
Source: LidoDAO
When a user makes an ETH withdrawal request on Lido, they get an NFT that indicates their available balance for withdrawal. After a waiting period adjusted according to the withdrawal status on the Ethereum network, it will be possible to exchange this NFT with ETH resources + rewards. According to the demo screen, the waiting period for ETH withdrawals is expected to take approximately 1 to 5 days.
Lido users will be able to transfer the NFTs they receive during the stETH redemption process to other addresses, making their claims for ETH staking rewards transferable. Lido will not take royalties if it sells on the secondary market, he said.
On March 15, Lido set a mid-May redemption target for the derivative token “stETH” and staked Ethereum + rewards.
connection:US Coinbase to accept withdrawals of staking ETH the day after “Shanghai” implementation
The post Liquid staking giant Lido uses NFTs to manage Ethereum withdrawals appeared first on Our Bitcoin News.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Kurt Ebenzer, @Khareem Sudlow
