As of April, people who bet on Pool you will receive NFT as part of your deposit withdrawal process. As such, the decentralized finance (DeFi) protocol intends to issue NFT certificates whenever a user stops participating in Ether; these NFTs will be used to claim your ETH tokens.
Through the initiative, holders of the NFTs can transfer them to another address and allow a third party to redeem the rewards, or they can sell the NFTs on secondary markets. In the latter case, Lido will not take any percentage of royalties from the sale.
Launched in 2020, Lido is the largest DeFi protocol by total value locked (TVL). The platform was one of the first to offer liquidity to ETH holders through its stETH token. Now, it is pioneering a new way to redeem staking rewards through non-fungible tokens.
Additionally, the NFT representing the withdrawal request is transferable, so the address receiving the NFT could claim ETH instead. One more step, the NFT could be traded on the secondary market 👀
— satBalwyn (@SatBalwynnorth) March 29, 2023
These plans were discussed during Node Operators Community Call #5 and will go into effect once the Ethereum blockchain undergoes the Shanghai or Shapella upgrade in April. Lido allows users to stake ETH to stETH at a 1:1 ratio. The token represents the participant’s initial deposit plus accrued interest.
Lido withdrawals involve two steps
According to Mariya Muzyko, Lido’s product manager, the process will consist of two steps: request and claim.
When a “user requests a withdrawal, they will receive a non-fungible token representing the withdrawal request.” This NFT will be used to claim your ETH staked plus accrued interest. Once a user redeems the tokens, the NFT will be burned.
That being said, Lido notes that withdrawal periods will take anywhere from one to five days and will depend on the amount of stETH being removed, plus the total number of requests being processed at that time.
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*All investment/financial opinions expressed by NFT Plazas come from the personal research and experience of our site moderators and are intended for educational purposes only. People are required to fully research any product before making any type of investment.
Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the world.
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