The First-Of-A-Kind Solution to Un-Stake Your ETH

Article source, here.

TL;DR

• Lido, the largest DeFi   protocol by total value locked, may have just answered how users will be able to un-stake their ETH.

• In return for their withdrawal request, users will receive a Lido-issued NFT representing the request which will be burned after the ETH is redeemed.

• Lido has kicked things off with the 'NFT withdrawal solution,' and we look forward to seeing if this becomes the norm, or if it simply stimulates other, simpler ways to un-stake ETH.

Full Story

Something big is happening next month on the Ethereum blockchain.

The 'Shanghai' upgrade is set to be released which will enable withdrawals for staked ETH.

So far, you've been able to stake ETH - earning interest, and helping the network along the way - but not withdraw it.

But how exactly will users withdraw it?

Lido, the largest DeFi   protocol by total value locked, may have just answered that.

Today, users who have staked their ETH through Lido hold stETH.

In order to un-stake their stETH and receive ETH at a 1:1 ratio, users will need to request a withdrawal.

In return for their request, they'll receive a Lido-issued NFT representing the withdrawal request.

They can then use the NFT to claim their ETH rewards; and once the ETH is claimed, the NFT is burned (i.e. destroyed forever).

While you may be thinking this news is as bland as your Aunt Patty's soup, it's a bigger deal than it sounds.

It's one thing to be able to stake ETH, but for the system to really work as expected, we need ways to pull that cash back out.

Lido is leading the way in DeFi innovation - they've kicked things off with the 'NFT withdrawal solution,' and we look forward to seeing if this becomes the norm, or if it simply stimulates other, simpler ways to un-stake ETH.