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Withdrawals for Ether bet on Ethereum 2.0 could become available as early as the first quarter of 2021, according to a blog post by the Rocket Pool staking service.
While Phase 0 of the Eth2 roll-out was launched with its Beacon Chain on December 1, the 900,000 Ether deposited by the stakers will not be available for withdrawal until Phase 1.5, which is expected to arrive around early 2022.
However, last week, Ethereum developer Danny Ryan introduced a new proposal that would allow “simple (but meaningful) withdrawal agreements to be entered into today,” which means users would be able to make withdrawals of their Ether.
If the proposal is implemented, he estimates that “80% of the use cases of the withdrawal agreement will be satisfied,” but admitted that the solution will not unlock full functionality:
“There are potentially more sophisticated features that can’t be built with the simple scheme until Beacon Chain reads are implemented, but I’d say most designs can be built.”
One of the utilities supported by Ryan’s proposal is the ability for staking pools to initiate payments, further enhancing Ethereum’s decentralized nature.
Rocket Pool, an Australia-based decentralized staking platform designed to allow hodlers with less than the required 32 ETHs to pool their funds for staking, has indicated that the platform is waiting for smart contract withdrawals to be enabled before is published.
In a blog post today, founder David Rugendyke explained that since withdrawals are not currently supported in Eth2, “to democratize staking in the current environment, projects must use a centralized custodian to control the validator withdrawal keys. “. He added that the trust issues involved in this “it’s not worth sacrificing our core values and risking user deposits.” Rugendyke called Ryan’s proposed solution “a fantastic step” and something that “we want to show tremendous support!”
“Rocket Pool will choose to launch following the implementation of smart contract withdrawals, to adhere to the non-custodial and trustless nature of the staking solution we set out to build more than two years ago. This is slated for Q1 2021 and we hope to launch alongside it. “
Blockchain firm Consensys noted that Ryan isn’t the only potential solution. Ethereum developer Jeff Coleman’s “Dirt Simple Withdrawal Contract” also provides a solution for withdrawals. Ethereum staking service co-founder Jim McDonald’s Attestant has another proposal called “Simple Transfers of Excess Balance”.
Stakeholder company LiquidStake took a different approach, allowing stakers to take out a USDC loan on their stake ETH in order to provide better liquidity to users. Coinbase has also announced support for Eth2 staking, however it will provide liquidity for users:
“While the Eth2 tokens targeted remain stuck on the beacon chain, Coinbase will also allow trading between Eth2, ETH and all other supported currencies that provide liquidity to our customers.”
In the past, Ethereum co-founder Vitalik Buterin has warned users of the risks associated with using third-party staking services.
