How to Release your Pledged ETH and Unlock your Rewards on Bitfinex After Ethereum Shapella Upgrade

On April 27th, it was reported that after the upgrade of Ethereum Shapella, Bitfinex customers can now release their pledge and withdraw their previously pledged ETH for the first time, and unlock their ETH pledge rewards. If you want to release the pledge ETH2 or unlock ETH2Rewards, Bitfinex customers first need to use the currency conversion tool on the platform wallet page to convert their ETH2 or ETH2Rewards to ETH2Unstacking. Bitfinex customers need to input the number of ETH2 or ETH2Rewards they wish to cancel the pledge, and then select “ETH2-ETH2X” or “ETH2Rewards ETH2R” from the “From” drop-down menu, and select “ETH2Unstacking ETH2U” from the “to” drop-down menu. After completing the conversion, its balance will be irreversibly converted to “ETH2Unstacking”, and based on the results of the unbinding process of pledged funds on the chain, the ETH2Unstacking balance will be converted to ETH, which can then be traded, withdrawn, and so on.

Bitfinex releases a notice introducing the ETH for releasing pledges and the process for extracting pledge rewards after upgrading Shapella

Introduction

Bitfinex is a leading cryptocurrency exchange that offers various trading products and services to its users. On April 27th, Bitfinex announced that its customers could conclude their pledged ETH and unlock their previously pledged ETH rewards after the upgrade of Ethereum Shapella. This article will provide step-by-step guidance on releasing pledge ETH and unlocking rewards on Bitfinex.

Understanding Pledged ETH and ETH Rewards on Bitfinex

Firstly, let us consider what pledge ETH and ETH rewards are. Pledge ETH is a feature on Bitfinex that enables users to stake their ETH and earn rewards. According to Bitfinex, the pledged ETH is used as collateral to support the Bitfinex lending market, and pledging ETH can earn users staking rewards.
ETH rewards, on the other hand, are rewards that users earn for holding their pledged ETH on Bitfinex. These rewards are calculated as a percentage of the user’s total pledged ETH and are paid out in ETH daily. Users can unlock their ETH rewards by releasing their pledged ETH.

Releasing Your Pledged ETH and Unlocking Rewards on Bitfinex

To release your pledged ETH and unlock your rewards on Bitfinex, follow the steps below:
Step 1: Convert Your ETH2 or ETH2Rewards to ETH2Unstacking
Before you can release your pledged ETH and unlock your reward, you need to use the currency conversion tool on the platform wallet page to convert your ETH2 or ETH2Rewards to ETH2Unstacking. The conversion tool can be accessed on the Bitfinex wallet section.
To convert your ETH2 or ETH2Rewards, you need to input the number of ETH2 or ETH2Rewards you wish to release, and then select “ETH2-ETH2X” or “ETH2Rewards ETH2R” from the “From” drop-down menu, and select “ETH2Unstacking ETH2U” from the “to” drop-down menu.
After completing the conversion, your balance will be irreversibly converted to “ETH2Unstacking.”
Step 2: Wait for the Unbinding Process to Complete
After converting your ETH2 or ETH2Rewards to ETH2Unstacking, your ETH balance will be locked until the unbinding process of pledged funds on the chain is completed. Bitfinex notes that the unbinding process typically takes around seven days to complete, as it depends on the Ethereum network’s speed.
Step 3: Withdraw Your ETH after the Unbinding Process Completes
Once the unbinding process completes, your ETH2Unstacking balance will be converted to ETH. You can then withdraw your ETH balance, trade it on Bitfinex, or use it for other purposes.

Conclusion

Releasing your pledged ETH and unlocking your rewards on Bitfinex is a straightforward process that involves converting your ETH2 or ETH2Rewards to ETH2Unstacking and waiting for the unbinding process to complete. Once complete, your ETH balance will be converted to ETH, which you can then withdraw or use for other purposes.

FAQs

Q: How long does it take to convert ETH2 or ETH2Rewards to ETH2Unstacking?
A: The conversion process typically takes a few minutes.
Q: What happens to my ETH rewards after the unbinding process completes?
A: Your ETH rewards will be converted into ETH and added to your balance.
Q: Can I cancel the unbinding process after initiating it?
A: No, the unbinding process is irreversible.
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