Ethereum’s Shanghai upgrade (also known as the “Shapella”) will take place on April 12, 2023. This is the last step in Ethereum’s transition to Proof-of-Stake (PoS), and it represents a major upgrade for users looking to stake ETH.
Shanghai or “Shapella” consists of several different Ethereum Improvement Proposals (EIPs), but the most notable difference is that it will enable withdrawals, or unstaking, of ETH that was previously locked in a smart contract. This opens a range of new possibilities for staking and has already generated a great deal of excitement within the industry.
Bitbuy is celebrating the Shapella upgrade by providing boosted ETH rewards for one month. For one month following Apr 12, Bitbuy ETH stakers can earn 4.07% - 6.0%*, which are the highest staking rewards of any regulated exchange in Canada.
If you are already staking at Bitbuy, then you do not have to take any action. Your staking will automatically receive boosted staking rewards for the upcoming month. If you haven't staked on Bitbuy yet, learn more on how to start staking Ethereum and earn rewards!
As a Bitbuy user, you will now have the flexibility to unstake your Ethereum in-app. When you initiate the unstaking process, your funds will move into an exit queue, where they will remain for about a week, before becoming liquid. You may not want to unstake if you believe in the long-term potential of Ethereum, or if you want to take advantage of our boosted rewards rates.
We want you to maximize and compound your returns. As a result, your rewards will be automatically restaked, allowing you to continue earning rewards, until you decide to unstake. It is important to note that any re-staked ETH will go through the network’s standard bonding period of 45 days (subject to change) before they start earning additional rewards. Any amounts that are already staked will not need to go through the bonding period.
By staying informed about the details of your investments, you can make thoughtful decisions that help you maximize your potential returns. New bonding and unbonding periods will be introduced for ETH staking. With a bonding period of 45 days (subject to change), users will start earning rewards on their staked ETH after the bonding period is over. And with an unbonding period of 7 days, users will have the flexibility to unstake their funds when they need to and receive them back into their account after 7 days. Plus, any rewards accrued during the bonding period will be automatically released to the user's wallet and restaked, maximizing their returns with a compounding effect.
If you have any other questions, check out the FAQs on the upgrade or contact our Support team.
*Boosted ETH staking rewards promotional period ends on May 12th at 11:59PM EST, and the promotional staking reward rate of 4.07% - 6.0% is calculated on a yearly basis.
The name “Shapella” comes from a mix of Shanghai – the city-host of the ETH Devcon 2 conference, and Capella – the brightest star in the northern constellation of Auriga.
Ethereum has two layers – the execution layer and the consensus layer. The Execution used to be the main layer, while the consensus layer was introduced as part of the initial merge to Proof of Stake. Shapella consists of upgrades to both layers simultaneously, each with a distinct name (Shanghai and Capella). This upgrade is expected to improve the efficiency and security of the network, leading to a more seamless user experience.
Even though Ethereum is the world’s largest Proof of Stake blockchain, currently only 15% of Ethereum is staked, while other blockchains have a staking participation closer to 50%. Until now, users who have staked their ETH have not been able to unstake their ETH, and the added flexibility is expected to make staking more attractive for investors.
Unlock the potential of crypto staking with a secure and regulated platform with Bitbuy. Learn more here.
