What is the Ethereum “Shapella” upgrade?
- Ethereum’s Shanghai and Capella upgrade is known as “Shapella”.
- If the upgrade is successful, users with staked ETH will be able to unstake effectively.
- Previously, users could either exit their staked ETH on Cake DeFi and get back ETH via Cake-staked ETH, or to withdraw the csETH directly to an external wallet.
- With the Shapella upgrade, users have the flexibility to stake their ETH with no lockup on the Ethereum network, similar to other Staking coins (e.g. DFI, MATIC, etc.).
I hold ether (ETH) and have ETH staked on Cake, is there anything I need to do?
- In short, no.
- The Shapella upgrade effectively means you can unstake your ETH easily, just like other Staking coins.
- That means you could stake more ETH without being locked up indefinitely on the Ethereum network. You can continue to stake your ETH on Cake and earn up to 5% on your assets.
I have Cake-staked ETH (csETH) outside of Cake, what do I need to do?
- Deposits: You can continue to deposit csETH on Cake DeFi, which will be converted to staked ETH.
- Withdrawals: Once the upgrade is complete and unstaking of ETH is possible, we will stop withdrawals for csETH on ETH Staking service.
What’s the difference between unstaking and withdrawing?
- “Staking” = your ETH tokens are used to verify transactions on the Ethereum network, and you earn staking rewards as an incentive. For more information about Staking, please check this article: What is Staking?
- “Unstaking” is the opposite - your ETH tokens are taken out from the protocol where you have full autonomy over them, and you stop earning staking rewards.
- Unstaking is the prerequisite for withdrawing your staked ETH from your Cake account to an external wallet. For more information, please check this article: How do I unstake / withdraw from staking?
When can I unstake my staked ETH? How do I do it?
- The process is dependent on the Ethereum network withdrawal queue, and Cake is not able to provide an exact waiting period. We will notify you once ETH unstaking is possible.
- Before then, there is no change to the current process. ETH exit staking is still possible, whereby you can exit stake and get back ETH, or you can withdraw Cake-staked ETH (csETH) to an external wallet. For more information, please check this article: How can I exit ETH Staking?
When can I withdraw my staked ETH?
- You will still be able to initiate a withdrawal regardless of the outcome of the Shapella upgrade on 12 April 2023 to enable more flexibility.