Lido Finance to Issue NFTs for ETH Staking Withdrawal

Lido Finance users will receive a transferable NFT representing their request to withdraw staked ETH.

Lido, the largest decentralized finance protocol by Total Value Locked (TVL), will issue NFTs to represent the ETH that users wish to withdraw from staking. As reported by Coin68, Ethereum’s highly anticipated Shanghai upgrade, which will allow for ETH staking withdrawals, is scheduled for April 13.

According to Mariya Muzyko, Product Director at Lido Finance, users can exchange their stETH for the originally staked ETH at a 1:1 ratio through a two-step process involving request and claim. After submitting a request, users will receive an NFT symbolizing the amount to be withdrawn. This NFT, issued by Lido, will determine the right to claim staking rewards and will be burned once the ETH is claimed.

Additionally, Lido-issued NFTs are transferable, maintaining the right to rewards when transferred to another wallet address. If users choose to sell the NFTs on secondary markets, Lido will not impose any royalty fees.

Information from a community call indicates that processing withdrawal requests will take between one to five days, depending on the amount of stETH and the total number of requests.

Lido Finance is renowned as the first liquid staking solution on the market and currently dominates the sector with over $10.6 billion in TVL, according to DeFiLlama. Lido allows users to participate in ETH staking and earn rewards without locking up their coins, instead providing stETH tokens at a 1:1 ratio for continued DeFi activities on other platforms.

• See also: Liquid Staking Dominates the Crypto Market

Two weeks ago, Lido projected that ETH staking withdrawals would open around May due to the need for additional auditing, review, and vulnerability handling. Meanwhile, Coinbase has set a 24-hour window for ETH staking withdrawals post-Shanghai upgrade.

The price of LDO has reacted positively in the past 24 hours, trading at $2.359. The upward trend continues, especially after the Ethereum team announced the Shanghai upgrade will take place at 5:30 AM on April 13 (Vietnam time).