Instant Withdrawals

Instant Withdrawals allow users to exit their ezETH position almost instantly, enabling better leverage, faster position management, and more efficient strategies. Users can request an instant withdrawal with a fee, bypassing the traditional unstaking cooling-down period.

Benefits

• More Options – Choose between traditional withdrawals (with a better exchange rate) or instant withdrawals (with a fee) based on users' needs.

• Enhanced Liquidity & Zero Downtime – Eliminate long cooldown periods, ensuring assets remain liquid and productive. Capital is never sidelined, enabling seamless reallocation to high-yield opportunities.

• Better DeFi Strategies – Execute leverage adjustments, manage positions swiftly, and optimize yield strategies without delays.

• Reduced Peg Volatility – By providing an alternative to DEXs, fewer swaps may result in less volatility on pools.

Fees

With Instant Withdrawals, users can exit their ezETH position by paying a variable fee that changes based on the withdrawal buffer size. If a withdrawal would reduce the buffer below the minimum allowed threshold, the transaction will revert.

The contract determines the fee based on the following parameters:

• Minimum Fee (Basis Points)

• Maximum Fee (Basis Points)

• Minimum Withdraw Buffer Allowed

The contract calculates the fee percentage by:

• Measuring the buffer’s fullness before and after the withdrawal.

• Mapping the change proportionally between the minimum and maximum fee values using a linear scale. A fuller buffer results in a lower fee, and vice versa.

Error Handling

• If the protocol is paused, instant withdrawals will be disabled.

• Once slashing is enabled, Renzo will integrate Chaos Oracles (or similar safeguards) to prevent withdrawals if anomalies are detected.