Coinbase Staking Shanghai Support
Major US crypto asset (virtual currency) exchange COINBASE announced on the 15th that it will start accepting unstaking of ETH 24 hours after the implementation of the next upgrade “Shanghai” of Ethereum (ETH).
1/ Ethereum’s Shapella Upgrade is almost here. The upgrade will enable unstaking for the first time since ETH staking was introduced in December 2020. Here’s what you need to know. pic.twitter.com/7J9mlCUsXO
— Coinbase (@coinbase) March 15, 2023
The main purpose of the “Shanghai” upgrade is to unlock the ability to withdraw staked ETH and its rewards. On the 15th, we tried Shanghai on the final testnet. Regarding the timing of the mainnet implementation, it was previously thought that it would be March or April, but the official website says “until June 2023”.
Coinbase launched a staking service in April 2021. At the time of writing, it has 2.07 million ETH in custody, accounting for 11.67% share of Ethereum’s total staking volume, making it the second largest brokerage provider after Lido.
connection:Ethereum “Shanghai”, final testnet implementation
recommend cbETH
The Ethereum network has a daily withdrawal limit. ETH withdrawal requests made by users on Coinbase are accumulated as a withdrawal queue in the order in which they reach the Ethereum network, and the base assets and rewards can be collected only after the queue has passed.
Since the waiting time fluctuates according to the number of withdrawal queues, the exact period is not certain, but it is expected that there will be a flood of withdrawal requests immediately after the Shanghai implementation. Coinbase says:
We expect the Ethereum protocol to take weeks or months to process unstake requests immediately after an upgrade.
For users who are concerned about this waiting period, Coinbase emphasized that they can immediately cash out by selling the derivative token “cbETH (Coinbase Wrapped Staked ETH),” which represents the staked ETH position.
Coinbase introduced a liquid staking derivative (LSD) in August 2022, and the corresponding token “cbETH” is distributed not only in its own trading market but also in DeFi (decentralized finance). Since cbETH includes staking rewards, it is traded at a weak added value (premium) of 1.0147 ETH.
On March 7, the institutional platform Coinbase Prime released another liquid staking called Liquid Staked ETH (LsETH). Differentiation from cbETH is high security, KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance.
Issuers are compensated even in the event of penalties (thrashing) caused by network outages, node operator failures, etc. LsETH itself can be operated on DeFi like cbETH.
connection:What is the ETH “Shanghai” upgrade?Summary of each company’s view on staking cancellation and ETH selling pressure
Lido is cautious
On the other hand, Lido, the top LSD provider, has announced that it will start redeeming the derivative token “stETH” and staked Ethereum + rewards in mid-May, and Lido’s governance token (LDO) will be It is down 16.6% from the previous day.
ETH withdrawals on Lido Finance, the largest liquid staking provider, will be enabled in May — estimated at least a few weeks after the Shanghai upgrade is switched on. [security audits are needed, Lido said] https://t.co/jUaUoE93WI
— Vishal C.
(@vishal4c) March 14, 2023
Lido is about to update v2, and the explanation that “withdrawals will not be supported until the code audit and corrections are completed” and “in addition, a two-week safety period will be provided” betrayed the expectations of investors. can also be heard.
connection:ETH staking giant Lido to implement withdrawal function in V2
US Coinbase to accept withdrawals of staking ETH the day after “Shanghai” implementation appeared first on Our Bitcoin News.
