The Shanghai Upgrade marked a significant milestone for Ethereum, enabling the withdrawal of staked ETH for the first time. While many users rushed to access their funds, a large portion of staked ETH—particularly through Lido Finance—remained locked until the protocol’s V2 upgrade in May. If you're holding stETH and wondering how to convert it back to ETH, this guide provides a clear, step-by-step overview.
What is Lido and stETH?
Lido is a leading liquid staking solution that allows users to stake Ethereum while maintaining liquidity. Instead of locking up ETH indefinitely, stakers receive stETH (staked ETH), a token that represents their staked assets and accrues rewards over time. stETH can be used across various DeFi applications, offering flexibility while earning staking yields.
With the introduction of Ethereum’s withdrawal capabilities, Lido users can now convert stETH back to ETH through a straightforward process.
When Did Lido Enable stETH Withdrawals?
Lido officially enabled stETH withdrawals on May 16, following the successful rollout of its V2 upgrade. This release was audited by multiple cybersecurity firms, including ImmuneFi, Certora, Statemind, Hexens, and 0xOrigin, ensuring a secure and reliable user experience.
Do You Need to Unstake After the Shanghai Upgrade?
According to Lido, unstaking is entirely optional. If you prefer to continue earning staking rewards, you can keep your funds in stETH. Withdrawal is only necessary if you wish to exit your staking position and reclaim your original ETH plus accumulated rewards.
How to Withdraw stETH from Lido
The withdrawal process consists of two main steps: submitting a withdrawal request and later claiming your ETH.
Step 1: Submit a Withdrawal Request
Visit the official Lido V2 platform and navigate to the withdrawal section. Here, you can initiate a withdrawal request by specifying the amount of stETH you want to redeem.
Step 2: Claim Your ETH
After your request is processed—which typically takes 1–2 days—you can return to the platform and claim your ETH. The claimed amount will include your initial stake and any rewards earned up to the point of request.
👉 Explore the withdrawal interface
Understanding Withdrawal Timelines and Options
Lido offers two withdrawal routes:
- Via Lido Protocol: Withdrawals take 1–2 days and are processed at a 1:1 ratio.
- Via Third-Party Aggregators: Faster (1–5 minutes) but may involve slight slippage or fees.
For most users, the native Lido option is recommended for its simplicity and fairness.
Frequently Asked Questions
Do I continue earning rewards during the withdrawal process?
No. Once you submit a withdrawal request, staking rewards stop accumulating for that portion of stETH.
What is the withdrawal request NFT?
Each withdrawal request generates an NFT representing your claim. This NFT helps track the status of your request. You may need to manually add it to your wallet to monitor progress.
Can I withdraw stETH in batches?
Yes. You can initiate multiple withdrawal requests for different amounts, providing greater control over your exit strategy.
Are there fees for withdrawing?
Lido does not charge additional fees for withdrawals, but standard Ethereum gas fees apply based on network congestion.
What happens if a validator is slashed?
In rare cases where validators are penalized (slashed), your final claimable amount may be slightly reduced. However, Lido’s distributed validation network minimizes this risk.
What is Bunker Mode?
Bunker Mode is a safety mechanism activated during extreme network conditions or mass slashing events. It slows down withdrawals to protect the protocol. Under normal conditions, Turbo Mode allows faster processing, often within hours.
Pre-Testing Your Withdrawal
If you're new to the process, consider testing on the Goerli testnet. Lido provides a testnet version of its platform where you can simulate withdrawals without risking real assets.
Final Tips
- Always use official Lido platforms to avoid scams.
- Monitor gas fees and choose optimal times for transactions.
- Remember that withdrawal times can vary based on network demand.
Whether you’re exiting entirely or just rebalancing your portfolio, understanding Lido’s withdrawal process helps you make informed decisions in the evolving Ethereum staking landscape.