The prominent decentralized finance (DeFi) system Lido has revealed that it intends to integrate non-fungible tokens (NFTs) into the process of unstaking.
Yesterday, during its Node Operator Community Call #5, the DeFi protocol with the biggest total value provided a hint about its future ambitions.
According to Lido (1), users will be given a tradable NFT that represents their withdrawal request for their staked Ether (ETH).
During the next Ethereum network upgrade, users will be able to unstake their ETH, which includes the process of withdrawing their ETH. These withdrawals are part of the process.
The widely used blockchain is on track to receive its next significant upgrade, which will be known as Shanghai and will take place the following month.
Unstaking of the Lido NFT Process
Mariya Muzyko, a product manager at Lido, stated that the process of NFT unstaking will consist of two stages: the request stage and the claim stage.
The user submits a withdrawal request for Ether, specifying that they wish to unstake stETH in exchange for an equal amount of Ether. Following this, the user will be given an NFT issued by Lido and represents the withdrawal request.
The non-fungible token (NFT) is subsequently destroyed after the Lido user has used it to claim their Ether prizes using the Lido platform. The final step involves the user redeeming their ETH and claiming it.
Each withdrawal-request NFT is transferrable, which means that users are able to send their digital assets to an address of their choosing.
These users grant the new address the authority to claim the associated ETH prizes due to their actions, described above.
If a user decides to sell their NFT on secondary markets instead, Lido will not collect a royalty portion from the sale of the NFT (2).
The community call indicated that processing withdrawal periods will take around one to five days. This withdrawal will rely on the total requests received as well as the amount of stETH already held.
Access to liquidity was initially made available to ETH holders by Lido, who had been trying to stake tokens through the issuing of stETH. stETH is a derivative token that can be used across several DeFi platforms.
It reflects the whole value of the user’s initial deposit and any interest that has been accumulated on that deposit.
In February, Lido was the Recipient of a Substantial Amount of ETH from the TRON Creator
Late in the month of February, Lido was the recipient of a significant amount of ETH from Justin Sun, the founder of TRON. Reports indicate that in a single day, Sun put 150,000 ETH into the crypto-staking solution, giving the transaction a value of $240 million.
Because of this new information, the total value locked (TVL) of the Lido protocol increased by more than 2.09% in a single day. A researcher and data analyst at the time said the following:
“Today, [Justin Sun] staked 150K [Ether] using [Lido Finance], which accounts for around 0.9% of all the ETH that was staked. Since we started keeping track, this has been the week with the most money wagered on it.
This is now the biggest daily stake inflow for Lido and the first time that Lido’s rate limit feature has been triggered.
In addition, a statement from Lido read:
“With over 150,000 ETH staked, the Lido protocol has logged its greatest daily stake inflow to far. When this number was reached, a peculiar but essential safety component of the protocol known as the Staking Rate Limit was activated.
Recently, Lido DAO has seen an increase in demand, with transactions increasing by more than 55% in just one week in January.