Crypto Exchange Binance Announces Support For Staked ETH Withdrawals
- Binance will hold off processing withdrawal requests for staked ETH for a week.
- The exchange intends to implement a daily ETH redemption cap for each user.
The biggest cryptocurrency exchange, Binance, announced on Friday that it would process staked Ethereum withdrawals and is ready to support the next Ethereum Shanghai and Capella (Shapella) upgrades. Withdrawals of staked ETH from the cryptocurrency exchange, however, will be postponed for a week after the April 12 Shanghai upgrade to the mainnet.
After the successful Shapella update, Binance will begin ETH staking withdrawals through the ETH 2.0 Staking page, as per a March 17 release. This implies that Binance will hold off on processing withdrawal requests for staked ETH for a week.
On the ETH 2.0 Staking page, staking participants may exchange their BETH for ETH at a rate of 1:1. With the April 12 Shapella update, users have the option of continuing to stake their ETH or even staking additional ETH in order to gain BETH rewards.
Redemption Cap For Each User
When the Shanghai and Capella (Shapella) update has been implemented successfully, a second notice will inform users how to withdraw Ethereum ETH from staking. Due to Ethereum’s withdrawal limits, Binance intends to implement a daily ETH redemption cap for each user.
Due to the high demand for withdrawals and the limited capacity of the Ethereum network during the Shanghai upgrade, ETH staking withdrawals might take a while. Binance has warned that excessive demand would likely result in a queue for ETH withdrawals.
It was also stated this week that the withdrawal of Lido staked ETH (stETH) will likely be postponed until May by Lido Finance, the biggest Ethereum liquid staking platform. Although Binance is holding off for another week, Lido won’t begin withdrawals until all outstanding audits of Lido V2 codes have been completed successfully. As a result, mainnet stETH withdrawals are unlikely until about the middle of May.
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