Shanghai is fast approaching – Last September, Ethereum finalized the transition from Proof of Work to Proof of Stake. However, ETH deposited in staking still cannot be withdrawn. Now, users are eagerly awaiting the Shanghai hardfork which will mark the opening of withdrawals.
Shapella: ETH withdrawal scheduled for April
Ethereum successfully transitioned from PoW to PoS last September. However, the Proof of Stake will not be complete until the ETH deposited in staking can be withdrawn.
Thankfully, the Shanghai and Capella – frequently referred to as Shapella – updates should finally enable this feature, and it’s just around the corner.
Indeed, on March 14, Shapella has been successfully deployed on the Goerli public testnet through a hard fork. This is the last step before enabling unstaking on the mainnet.
The Shapella update should be deployed on the mainnet around mid-April. This will allow ETH holders to withdraw their staked ETH and stake more without being subject to an indefinite lock-in period.
In practice, Shapella will allow ETH deposited on the consensus layer to be withdrawn to the execution layer.
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Coinbase prepares for Shapella
On Wednesday March 15, the giant Coinbase published a blog post presenting all the useful information to its users regarding the deployment of Shapella.
Coinbase explained there that withdrawal requests will be processed by the Ethereum chain. On the other hand, Coinbase simply acts as a “ leadsto return ETH to customers. Withdrawal requests will be accessible from users’ Coinbase accounts approximately 24 hours after the upgrade is complete.
However, Coinbase warns that customers will need to be patient. Indeed, it is expected that the Ethereum protocol will put “ weeks to monthsto process withdrawals.
For the more impatient, Coinbase offers a liquid staking service called cbETH. This service offers a derivative of ETH in staking. It allows stakers to trade ETH deposited in staking through this derivative product.
“For those looking for immediate liquidity, Coinbase offers a token that allows users to unlock the value of their staked ETH. Users can now wrap ETH (ETH2) in cbETH on the Coinbase app to sell or use it in DeFi. »
You will have to be patient
Coinbase users will not be the only ones who will have to be patient. Indeed, in order to ensure that there is no excessive leakage of ETH which would put the security of the network at risk, the developers have implemented security mechanisms.
Simply put, they will intentionally restrict withdrawals. To do this, they have set up withdrawal limits.
Thus, approximately2,200 withdrawals can be processed by the channel per day. This means that only 0.4% of all ETH deposited in staking can be withdrawn each day.
For their part, Liquid Staking protocols are also preparing for the arrival of the Shapella hard fork.It remains to be seen whether Lido will be able to maintain its status as a DeFi leader following the opening of withdrawals..
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