Important Shanghai Upgrade Coming Soon. What should PoS Service Providers do?
After the merger of the Beacon chain, Ethereum 2.0 will bring another major update in March (according the latest news, it is likely to be postponed until early April). This will be the Shanghai upgrade. Among these, the ETH 2.0 staking assets withdrawal issue is one of the most important issues that will need to be addressed in this upgrade. The market has been very interested in Ethereum staking products, especially with the Shanghai upgrade approaching. Users who have staked should complete withdrawal work before the Shanghai upgrade takes place. To be able to control the assets, they can withdraw any principal or income that they have previously staked on Beacon chains to the address they provide. You can divide withdrawal into both withdrawal rewards and withdrawals. Once the withdrawal address has been set, it cannot ever be changed. All withdrawals require that the user initiate a request to withdraw via the validator and wait for confirmation. All funds can be retrieved once the withdrawal request has been confirmed by the validator. Reward withdrawals are made in the form of an automatic distribution. This is credited to the account on average every few days. There is no gas fee for either type of withdrawal. The user must set the withdrawal address in advance. Prior to the upgrade in Shanghai users could only set the withdraw address when creating a validator. They could not change it after it was created. The Beacon chain doesn’t require validators to set a withdrawal address. The withdrawal address of some validators is null because the Beacon chain does not require them to set one. Based on the theoretical value that each block could set 16 withdrawal addresses, all settings are possible within 3 days (311874/115200 approximately 2.7). In extreme cases, all validators can be withdrawn at once. Theoretically, the longest time it takes to exit is 517052/1575, or approximately 328 days. The number of validators that can exit in each epoch depends on the total amount of validators. Therefore, it may take longer to exit all validators. The withdrawal conditions of the user are different for different situations. The validator must set a withdrawal address and the status must be active. The balance must not exceed 32 ETH (including unclaimed earnings). The second is full withdrawal. The validator needs to be set with a withdrawal address, and the status is withdrawable (usually, it indicates that the validator exited successfully).Eligible validators can enter the withdrawal queue, and Ethereum will automatically send ETH to the withdrawal address without additional operations by the user. The current withdrawal cycle is 517052/115200. This takes approximately 5 days. “To do” list for PoS service providerThere are many types of POS service providers at present, including traditional LSD products, centralized exchange PoS products and SaaS (Staking-as-a-service) products. The withdrawal process is the same, but there are some key differences. The withdrawal process is basically as follows:1) Provide product information and receive withdrawal requests from customers2) Set the withdrawal address and prepare to withdraw3) Depending on the number of withdrawal requests received, confirm how many validator Nodes must be exited4) Initiate a request for exit to the validator5) Disburse the withdrawal to the withdrawal address. The second step is to release capital riskBeacon Chain staking began in December 2020 and has been ongoing for more than two years. Users cannot access the staking asset or change the validator address. This increases the risk of withdrawal certificate leakage. The staking assets on the blockchain are at high risk. Therefore, it is important to prepare in advance. Three parts of the PoS service provider’s preparations are required: 1) Audit of staking asset on the Chain. The service provider must verify that the number of staking items on the chain is consistent with principal + income staking; to confirm that certificates under their control correspond with the assets on that chain; to confirm the withdrawal address and private account of that withdrawal address have been set; and to ensure that your key is controlled. The risk of leakage is possible due to the long-term asset stakes. The risk of leakage is possible due to the long period of asset stakes. It is recommended that you rebuild the validator before the Shanghai upgrade takes place. The market will soon recognize ETH-equivalent tokens as more valuable after the upgrade in Shanghai. Service providers can add more ETH-equivalent tokens to DeFi and CeFi products. You can use scenarios to increase liquidity and user income. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuHaroldCoincu NewsTags: Beacon chainETH 2.0EthereumPoSShanghai