Lido Issuing NFT Attached To User’s ETH Withdrawal Request

Key Points:

• Liquidity staking protocol Lido announced plans to issue an NFT representing a user’s ETH withdrawal request.
• Withdrawals will be enabled after Ethereum completes its Shanghai upgrade next month.
• Users will receive a transferable NFT representing a withdrawal request for their deposited ether.

Lido, a staking liquidity protocol, has announced its NFT issuance plan, and each NFT represents a user’s ETH withdrawal request.

We're live https://t.co/ficdMC6ou8

— Lido (@LidoFinance) March 28, 2023

The most significant decentralized finance (DeFi) platform by total value locked revealed intentions to create a non-fungible token (NFT) to reflect a user’s withdrawal ETH request amount as part of the process of unstaking their ether during its Node Operator Community Call #5.

Withdrawals will be enabled after Ethereum completes its Shanghai upgrade next month.

Lido was the first to provide liquidity access to ETH holders looking to stake their tokens by issuing a derivative token, stETH.

Mariya Muzyko, product manager of Lido, said that users could quit staking stETH on this protocol and receive ETH at a 1:1 ratio. After a user requests a withdrawal, they will receive an NFT issued by Lido representing their withdrawal request.

Users can then use NFT to receive their ETH rewards. After the user redeems their ETH, the NFT will be destroyed. Each NFT is transferable, meaning a user can transfer the NFT to another address, making the new address the corresponding ETH reward.

Lido says that if users decide to sell their NFTs on the secondary market, they will not collect royalties. The withdrawal cycle takes approximately 1 to 5 days, depending on the amount of stETH withdrawn and the number of withdrawal requests.

Lido Finance, in early February, completed the design for the second version of the protocol, which added support for Ethereum staking withdrawals following the Shanghai upgrade.

The LDO token recorded positive signals, with an increase of more than 12% in the past 24 hours. Currently, LDO is trading at $2.34.

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