• Lido upgraded to its second version (“V2”) on Ethereum, allowing users to unstake their stETH and receive ETH at a 1:1 ratio.
• The maximum time that it might take for a validator to exit and withdraw from the staking queue stands at 5 days and 14 hours.
• Users will also receive an NFT as an intermediate step between requesting to unstake and claiming one’s ETH.
Lido Upgrades to Second Version on Ethereum
Ether (ETH) holders are rushing to stake their tokens, with network validators pushing deposit activity to the highest level since the Shapella upgrade earlier this year. More than 200,000 ether have been deposited to the network since the start of the week, according to data from Nansen. eToro US Investment Analyst Callie Cox weighs in.
Unstake stETH for ETH 1:1 Ratio
Lido upgraded to its second version (“V2”) on Ethereum later Monday, sending LDO, its native governance token, up 10% to $2.15 in the past 24 hours, CoinDesk data shows.Users can now unstake their stETH and receive ETH at a 1:1 ratio, which takes about a day for most users if the exit queue on the Beacon chain is empty, according to a blog post. The maximum time that it might take for a validator to exit and withdraw from the staking queue stands at 5 days and 14 hours, data from network explorer Rated shows.
Intermediate Step with NFTs
When a user requests to unstake, they will receive a Lido-issued NFT representing their withdrawal request. Afterwards, the user uses the NFT to claim their ETH rewards and the NFT is burned. Even though such NFTs could be listed for trading on Blur and Opensea marketplaces according Commanding about nearly 80% market share of liquid staking derivatives on Ethereum per blockchain analytics firm Nansen , secondary market activity does not play a role in this withdrawal process.
Staking Activity High Since Shapella Upgrade
Lido has already withdrawn more than 278,000 ETH at press time making it fourth largest entity by ETH withdrawals trailing only crypto exchanges Kraken CoinBase Pro Binance Huobi Global .
Conclusion
Withdrawal of tokens from liquid staking protocols has seen an increase due improved features across platforms like Lido’s V2 upgrade which allows users who have staked their tokens receive them back in return along with earning rewards via intermediate steps such as Non fungible Tokens (NFT).
