In this article:
Overview
You can stake and unstake Ethereum (ETH) with Wealthsimple. Make sure to review the following considerations before unstaking your Ethereum:
-
You can't cancel unstaking requests.
Once you submit an unstaking request, it won't be possible to cancel the request. During the unstaking process, you won't be able to trade, transfer, or stake any ETH included in the request.
-
Earning rewards during the unstaking process.
When you request to unstake your ETH, rewards stop accumulating on your balance that's being unstaked. Your ETH will be available to trade, transfer or re-stake after the unstaking period completes.
-
Check in-app for the timeline.
Unstaking requests are processed on-chain on the Ethereum network. The timeline is variable, depending on how many others are unstaking on the network and includes any time needed for Wealthsimple to complete the unstaking process. You can follow the steps below for a more accurate estimate of the current unstaking timeline.
-
Unlocked rewards will be added to your 'available' ETH balance.
This means that unlocked rewards can be traded, transferred, or staked.
How to unstake Ethereum
After reading the considerations, you can unstake your ETH by following these steps:
- Log in to the Wealthsimple app
- Select your Crypto account
- Under Staking Rewards, choose the coin you wish to unstake
- Select Unstake at the bottom
- Read through the unstaking information provided
- Tap Got it
- Choose the amount you would like to unstake
- Tap Continue
- Read through the review screen and tap Unstake
How to determine the current unstaking timeline
To determine the current unstaking timeline, you can take the current withdrawal queue length from Ethereum's blockchain explorer and add 27 hours to the figure. Adding 27 hours accounts for the time needed for the ETH to become withdrawable.
Please keep in mind that this is an estimate, and the actual unstaking time may vary by 1 to 2 days.
Frequently asked questions
What types of unstaking are supported?
Unstaking can be done either in full or partially* (see below for special context).
*How does partial unstaking work?
Partial unstaking occurs automatically when a validator's balance exceeds 32 ETH. The excess amounts are consensus layer rewards (CL). Any excess amounts won't earn additional rewards (doesn't compound) and aren't staked.
The excess ETH is automatically sent to a validator's address. In terms of an analogy, the water overflowing from a full glass would be the excess ETH rewards, and the existing water in the full glass would be the 32 staked ETH. Aside from ETH rewards being available automatically, you can't specify partial withdrawal amounts on a validator level.
How does full unstaking work?
Full unstaking involves a validator exiting the active validator set and having its unstaked ETH sent by the network to a specified address. Once out of the active validator set, the initial stake plus the accrued rewards are sent to the validator's address. This is why partial unstaking isn't possible due to the validator having to exit the active set.
How does unstaking ETH work?
The network will check one of the following two criteria:
- Validator who has the exit active validator set
- Validator balance is over 32 ETH
The validator withdrawal is processed and added to the current network block. Next, the ETH is sent to the validator's withdrawal address.
What is the active set vs exit active set?
As long as a validator remains in the active set and doesn't request an exit, the validator will continue accruing rewards. Only excess amounts over 32 ETH will be automatically available and sent to the specified address.
Exiting the active set requires a validator to submit this request. This request cannot be undone. Once out of the active set, unstaking of the original stake plus rewards is automatically processed and sent to the withdrawal address. Validators out of the active set don't earn rewards.
How long does it take to exit a validator set?
Exiting the validator set is a prerequisite for full unstaking, and validators must submit an exit request to the network. The timing to process the exit request depends on whether there are other validators waiting to exit.
If there are no other validators, then it would take around 4 epochs to exit if there are no other validators. 1 epoch = 32 blocks. 4 epochs = ~25 min
If there are other validators waiting to exit, then the validator joins the exit queue. Currently, only a max of 7 validators can exit per epoch (1575 validators/day). Once exited, there's an additional 256 epoch (~27 hrs) cooldown/lock up period before the validator can be unstaked. If there are 100,000 validators requesting exit, it could take ~63 days for all 100,000 validators in the queue to exit.
How long does it take to process unstaking requests?
A validator must first have exited the active set before it can unstake. At this state, 16 requests can be included per block, and the average block time is 12.1 seconds. The core Ethereum community set the 16-request limit per block. The Ethereum Foundation provided the following estimates based on the number of requests.
| Number of unstaking requests | Time to complete |
| 400,000 | 3.5 days |
| 500,000 | 4.3 days |
| 600,000 | 5.2 days |
| 700,000 | 6.1 days |
| 800,000 | 7.0 days |
From the start of the active set exit to the unstaking request processing, it would take a minimum of 1 day to complete the entire process, assuming there is no queue exiting the active set and the unstaked ETH is picked up immediately by the network to send to the address. The timing for unstaking requests to be picked by the network is random, and the size of the exit queue and the number of unstaking requests will impact the overall processing timing. This is why the unstaking process timeline can vary between weeks to months depending on factors described earlier.
Comments
0 comments
Please sign in to leave a comment.