Withdrawals FAQs

Why isn’t there enough liquidity for me to withdraw? What should I do?

You can only withdraw as much liquidity as is available in the buffer contract. Choose an available collateral asset, or alternatively, check back in an hour – collateral will become available to withdraw from new user deposits, protocol rewards and / or unstaked assets from Ethereum beacon chain validators and / or EigenLayer.

Why isn’t the target buffer capacity much larger?

All assets that sit in the buffer contract are not productive – because they are idle, they do not generate rewards for ezETH holders. To provide the best returns for ezETH holders, Renzo aims to have as high a utilization rate as possible while managing withdrawal demand. Setting the target buffer capacity too high would lower the amount of collateral delegated to securing AVSs and decrease the amount of generated rewards.

To illustrate the point, imagine if Renzo had 100% of assets in the buffer contract. There would be no staking rewards and no assets to restake and secure AVSs. Ideally, the target buffer capacity should be big enough to match demand for withdrawals while simultaneously restaking with as much collateral as possible. Given that there is up to a 10 day waiting period to make funds available, the protocol needs to predict the demand for withdrawals in advance, there may be times when collateral takes longer than 3 days to withdraw.

How is the target buffer capacity set?

Renzo has partnered with leading research firms to set the ideal target buffer capacity, considering the risk/reward ratio of productive assets and the predicted demand for future withdrawals. Renzo will be monitoring activity and usage of withdrawals to set targets for both normal and high demand scenarios.

Why is there a 3 day cooldown period for my withdrawal?

The cooldown period exists to ensure potential tail end scenarios like slashing are discovered, conclusions are finalized, and that users can’t front-run these events. To exit collateral from EigenLayer takes 7 days, but until slashing is implemented, Renzo withdrawals will have just a 3 day cooldown period.

When will the cooldown period increase to 7 days?

Slashing is expected to be implemented on EigenLayer at the beginning of Q4 2024. Any changes to cooldown periods will be communicated and / or managed via governance once live.

Does my collateral generate rewards while going through the cooldown period?

No, assets do not generate rewards when in the 3 day cooldown period after withdrawal. This is because when in cooldown, the collateral is no longer being staked or restaked.

How is the value of my claim calculated?

The value of a withdrawal claim with respect to underlying collateral is calculated at the time of request and again at claim after the cooldown period has passed. If the value at claim is lower, users get the lower value. This is to maintain security during tail risk events like slashing or protocol exploits.

What is the exact time that the withdrawal buffer will refill?

Due to Ethereum's variable block time (12-15 seconds) it is impossible to predict the exact timing of collateral entering the withdrawal buffer. This is because unstaking must take place 10 days before collateral enters the buffer.

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