Withdrawal Queue

If the current buffer capacity is not large enough to accommodate a user’s balance, they can request to be added to the withdrawal queue. Once a request is added to the withdrawal queue, Renzo Protocol unstakes funds from both EigenLayer and the Ethereum beacon chain to make available for the user.

The withdrawal queue works on a first come first serve basis - requests are fulfilled in the order in which they were received. E.g. if one user requests 100 ETH, and the next user requests 50 ETH, the user who requested 100 ETH will receive their collateral first. Queued withdrawal requests receive priority over refilling the buffer capacity, so any incoming deposits, rewards, and unstaked collateral will be allocated to the withdrawal queue.

In extreme cases, it may take up to 10 days after queuing a withdrawal before a user receives their collateral to begin the cooldown period. This is determined by the time to exit the Ethereum Beacon Chain and EigenLayer (see below).

1. Exiting the Ethereum Beacon Chain - Can vary from a day to 8.9 days or more as of this writing (Exit Queue + Sweep Delay). https://www.validatorqueue.com/

2. Exiting EigenLayer - All funds unstaked from EigenLayer are required to go through a 7 day escrow period before being eligible to be fully withdrawn. https://docs.eigenlayer.xyz/eigenlayer/restaking-guides/restaking-user-guide/liquid-restaking/withdraw-from-eigenlayer

The implementation of the withdrawal queue feature does not change the operation detailed in the Withdrawal Flow document. The withdrawal queue is an additional feature that is used only when the amount that a user requests to withdraw is greater than the current balance available in the buffer capacity.

Please note that the withdrawal queue feature only applies to native $ETH and does not allow for requesting $stETH and $wBETH.