This week released the details of their plan to enable staked ETH withdrawals. It's a fairly straight forward process for stETH holders but it raises important risks that users should be aware of when staking through a 3rd-party intermediary.
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Read my full take on how staking pools and exchanges are preparing for staked ETH withdrawals in this week's newsletter:
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In order to reduce the amount of trust needed for staking through an intermediary, Ethereum community members have proposed code changes to better support staking through smart contracts, instead of centralized intermediaries.
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The process for unstaking will in part be dictated by the intermediary in control of validator node operators. This creates an additional layer trust through the unstaking process for users.
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At least 75% of all staked ETH is controlled by an intermediary, such as an exchange like or a staking pool like Lido. For the vast majority of stakers, they will not be able to directly initiate their own withdrawals.
Data h/t
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We compared the risk-adjusted returns of BTC & ETH to a handful of other global assets across asset classes. On almost every time frame, BTC is a top performer and ETH is THE top performer. Here’s the data from each asset’s early-COVID low to present (Jan. 25, 2023).
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friendly reminder, there is no acdc call today and hence, no regular writeup tmrw. ethereum devs will reconvene next thurs, feb 2, for acde call #154!
meeting agenda here:
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Today the GM team dropped the 2022 Bitcoin Mining Review…and we know what that means..another year in mining, another mining map! And wow have we grown…
A short thread. 🧵
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question about the latest issue , based on the yield curve today, what is the target quantity/desired size of validators?
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curious to understand how the beacon chain calculates validator rewards and why there's no fixed block reward post-merge? highly recommend reading 's NL series which dives into the fundamentals of how the beacon chain works! ⛓️
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please may 2023 be the year of good crypto ui 🤞🐰
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Withdrawal-Mainnet-Shadow-Fork-1 is finalizing 🚀🚀🚀
It started out with a few issues because the config wasn't correctly applied on geth (we disallow overriding the mainnet config). The config is applied correctly and all nodes are in agreement. We will start some evil nodes,.
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*dates are my own interpretation, above timeline tentative and subject to change
full recording of today's call here:
youtube.com/watch?v=uTWpSY
thank you and all the other core devs for hosting the call!
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and 2nd is the rough timeline for upgrade testing:
- spinning up devnets (currently underway)
- launch dedicated public withdrawals testnets (soon)
- upgrade existing public testnets like sepolia and goerli (february)
- fork mainnet ethereum (march)*
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highlighting two things from the shanghai community call just now, first is this faq doc about withdrawals:
Notes.ethereum.org/@launchpad/wit.
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- eof implementation is now planned for inclusion in cancun
- first community call about shanghai is happening in 7min! github.com/ethereum/pm/is
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We wrapped up another @ethereum #AllCoreDevs a few hours ago - covered Shapella/Withdrawals, SELFDESTRUCT deprecation, and Cancun next steps 
Agenda: github.com/ethereum/pm/is
Recording: youtube.com/watch?v=hVeMHo
Recap below 
Agenda: github.com/ethereum/pm/is
Recording: youtube.com/watch?v=hVeMHo
Recap below Show this thread
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- eof implementation is now planned for inclusion in cancun
- first community call about shanghai is happening in 7min!
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tldr;
- devs are making good progress testing shanghai, mainnet shadow fork planned for next monday, looks to be on track for public testnets next month
- devs decided against making more involved changes to staked eth withdrawals
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gm, happy friday, ethereum devs wrapped up another acde call yesterday.
full writeup of the call here:
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Another important angle to this is that LSDs will have reward ETH available to cover withdrawal requests without having to actually exit validators.
Additionally, important to know how LSDs plan to integrate these reward ETH in their oracles.
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TIL Ethereum validators have earned about 973,269.30 ETH since the launch of the Beacon Chain. Here's why that matters for staked ETH withdrawals.
Shout-out to @waltjsmith for inspiring this thread.
Shout-out to @waltjsmith for inspiring this thread.Show this thread
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finally, if you have questions about the shanghai/capella upgrade that you'd like to ask eth core devs, there's going to be a community call organized by next friday. i highly encourage folks interested in learning more about shanghai to tune in!
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for another perspective on yesterday's acdc call, be sure to check out 's notes here:
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a final decision about el/cl data field harmonization for withdrawals will be made during next thursday's acde call. full agenda for next week's call here:
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because of this, most cl client devs were in favor of moving forward instead with a more limited change, that is updating the units for returning withdrawal amounts in the engine api from wei to gwei.
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certain cl client devs expressed concern that changes to the serialization formats between the el block header and the cl execution payload header this late in the game for shanghai, even if it would help light client functionality, could delay withdrawals.
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this was a topic raised during last week's acde call. full summary of last week's call here:
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tldr; devs are making good progress on both staked eth withdrawals for shanghai/capella and proto-danksharding for cancun/deneb. most notably, devs did not come to a consensus about harmonizing data field formats between el/cl block headers.
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gm, consensus layer clients teams met up yesterday for their first acdc call of the year. here's my writeup of what they discussed:
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to stakers in the days immediately following Shanghai.
For more information about the staked ETH withdrawals process, be sure to read this Galaxy report:
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to process all partial withdrawals and the withdrawals for fully exited validators. So at a minimum, since partial rewards and exited validators are not subject to the churn limit, expect about 1m ETH (which is still less than 1% of total ETH supply) becoming accessible
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If you add a few days (~4 days) for updating withdrawals credentials, and another few (~4 days) for getting through the withdrawals queue, which as points out is not really a queue, but a recurring sweep, it should take about a week post-Shanghai
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As of January 12, Ethereum validators on average have earned 1.96 ETH in rewards. Assuming all validators want to sell this ETH at Shanghai, that would mean roughly 1m ETH, worth $1.4bn, of sell pressure shortly after upgrade activation.
Chart:
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These rewards will become liquid after Shanghai, so in addition to the ~35,008 ETH unstaking, we should also consider the ~973,000 ETH in rewards that will become available to stakers too.
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The existence of 1,094 exited validators on Ethereum suggests that there will likely be at minimum 1,094 full withdrawals processed and >35,008 ETH un-staking from the Beacon Chain shortly after the activation of Shanghai.
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TIL Ethereum validators have earned about 973,269.30 ETH since the launch of the Beacon Chain. Here's why that matters for staked ETH withdrawals.🧵
Shout-out to for inspiring this thread.🙌
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Who’s ready to summon the spirit of the dankshard tomorrow? 🕯.oO
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KZG ceremony (ceremony.ethereum.org):
- Going live this Friday 
- Grants open for people who want to write their own implementation or do fun, crazy entropy-generation things. Apply!
- Grants open for people who want to write their own implementation or do fun, crazy entropy-generation things. Apply!Show this thread
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Ethereum Hard Fork Naming in a Nutshell:
Bellatrix<>Paris=The Merge (PoS)
Capella<>Shanghai=Shapella (Staked ETH Withdrawals)
Deneb<>Cancun=Dencun (EIP 4844, Proto-danksharding)
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the merge 
shapella 
dencun 
shapella
dencun 1
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Most of the talks went over my head so I'd encourage folks interested in learning more about the technical details of PETs to listen back on the recording.
Thank you to Flashbots for organizing another 🔥 roast session.
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... I will say one leverage point is like a lot of this can be punted to Intel. They have PR skin in the game, not that we shouldn't answer these questions." -
Timestamp to listen to this point of the roast is 3:41:29
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"We don't understand the economics of all [SGX] exploits. It really depends on the marginal cost of breaking additional chips....
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