TechFlow news, the liquid staking protocol Lido has unveiled a plan to issue NFTs linked to user withdrawals of ETH, with each NFT representing a request to unstake their ETH. These withdrawals will be enabled after next month's Ethereum Shanghai upgrade.
Lido product manager Mariya Muzyko said at a meeting that users can withdraw stETH on Lido and receive ETH at a 1:1 ratio, in two steps: request and claim. Once a user requests a withdrawal, they will receive an NFT issued by Lido representing their withdrawal request. The user can then use the NFT to claim their ETH rewards. The NFT is destroyed after the user redeems and claims their ETH.
Each withdrawal-request NFT is transferable, meaning users can transfer the NFT to another address, granting that new address the right to claim the corresponding ETH rewards. If users decide to sell their NFTs on secondary markets, Lido says it will not charge royalties from the sales. The withdrawal process will take approximately 1 to 5 days to complete, depending on the amount of stETH being withdrawn and the total number of requests.
