A major partnership – Since its launch in 2020, Lido has become a staking giant on Ethereum. As a reminder, the protocol offers Liquid Staking. This means that users can stake ETH against a stETH token that represents the deposit. This token can then be reused in the Challenge.
Lido integrates with 1inch
On February 21, the protocol Lido has announcement her integration with DEX aggregator 1inch. In practice, this integration is a boon for users who will be able to free themselves from withdrawal periods.
Until now, when ETH is deposited in staking via Lido they have a 1-4 day withdrawal period to convert stETH back to ETH. Indeed, withdrawal limits have been put in place on Ethereum in order to reduce the risks of mass withdrawals. For this, a withdraw queue has been established.
Now, with the integration of Lido into 1inch, these Withdrawals can be made instantly by exchanging stETH for ETH via the aggregator.
Simplified withdrawals, but not without conditions
However, it is important to note that these withdrawals are not made at the same rate. So, classic withdrawals via Lido are not instantaneous, but they provide an exchange rate of 1 to 1. That is to say, one stETH withdrawn will allow you to obtain 1 ETH.
In the case of aggregators like 1inch, the rate is different. Thus, 1 stETH can be exchanged for 0.9995 ETH, a slightly less attractive rate, but for which the withdrawal will be instantaneous.
For the moment the functionality is available on Ethereum, Optimism and Arbitrum.
Last August, the Lido’s TVL was $15 billion. Since then, it has doubled to reach 29 billion dollars, notably boosted by the growth of EigenLayer.