[TASK] LST withdrawal request w/NFT issuance

[monaiuu]

Description

Each withdrawal request is represented by an NFT. This NFT acts as a tokenized receipt for the withdrawal request and must be redeemed to finalize the withdrawal process.

Potential User Flow

1. Initiating Unstaking and Receiving Unlock NFT

• User Action: The user initiates an unstaking request through the interface.
• Protocol Implementation: The protocol processes the unstaking request and issues an Unlock NFT to the user. This NFT represents the amount of staked assets to be withdrawn and includes details such as the maturity date when the assets can be claimed.

2. Holding the Unlock NFT During the Unbonding Period

• Unbonding Period: The user holds the Unlock NFT during the unbonding period, which is specific to the underlying blockchain network (e.g., 7 days for DOT on Polkadot). During this period, the assets are in transition and do not earn rewards.
• Time-Risk Arbitrage: Market actors can purchase these Unlock NFTs at a discount based on the slippage fee charged. The discount decays linearly to zero as the maturity date approaches, allowing for time-risk arbitrage.

3. Redemption of Unlock NFT

• Maturity: Once the unbonding period is over, the Unlock NFT reaches maturity, and the underlying assets become available for withdrawal.
• User Action: The user or a relayer redeems the Unlock NFT to claim the underlying staked assets. This involves providing the NFT to the protocol to finalize the withdrawal.

4. Providing the NFT to Finalize Withdrawal

• Redemption Process: The user navigates to the interface and selects the option to redeem the Unlock NFT.
• The user provides the Unlock NFT by sending the NFT to a specific contract address designated by the protocol.
• The protocol verifies the NFT, ensuring it has reached maturity and represents the correct amount of staked assets.
• Execution: Upon successful verification, the protocol burns the Unlock NFT and releases the underlying staked assets to the user’s wallet.
• The user receives the unstaked assets (e.g., DOT) in their wallet, completing the withdrawal process

Examples

( On Lido via Ledger, the NFT will change appearance when the ETH is ready to be claimed. )