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Lido announces the process of pledging ETH exchange

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After the Shanghai upgrade, Lido will allow stETH holders to exit the Lido pledge at a 1:1 ratio of exchange ETH.

Original source: Lido

Daiwa

After the Shanghai upgrade, which is expected to take place in March-April 2023, Lido will allow exchange withdrawals by Ethereum pledges who have supported the network since its inception and beyond. stETH holders can exit the Lido pledge at a 1:1 exchange rate for ETH. This is an important milestone in achieving Ethereum's pledging ecology and the longer term roadmap.

Operating process

1. Initiate a withdrawal request to lock stETH.

2. The applicant receives an NFT, which is your withdrawal certificate and contains all the information about the withdrawal.

3. Lido regularly collects and locks ETH required for withdrawal request and destroys corresponding stETH. After the withdrawal request is satisfied, the ETH can be claimed at any time by destroying the NFT.

Withdrawal mechanism

The withdrawal mechanisms are Turbo mode and Bunker mode.

The Turbo mode is the default mode and is expected to work normally most of the time. This mode is used unless there are unforeseen circumstances affecting the Ethereum network. In Turbo mode, withdrawal requests are processed relatively quickly. Although the exact length of time is uncertain, a reasonable estimate is 2-7 days. In the best case, the withdrawal request can be completed in a matter of hours without the verifier quitting. At worst, they can take much longer

Bunker mode ensures orderly processing of withdrawals in extreme cases (for example, hundreds of Lido validation nodes encounter slash). This leads to an additional delay in the time of withdrawal to ensure that any negative impact is shared by all the pledgees and to prevent the savvy pledgee from having an unfair advantage and completing the exit early.