Thread by @ConsenSys

The work to #buidl #Ethereum is going strong & the #web3 community is rallying behind the next upgrade on the Ethereum roadmap—the #Shanghai/Capella upgrade. Here is all you need to know about the milestone and the staked ETH withdrawals it will enable. 🧵
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The Shanghai/Capella upgrade is a significant event for Ethereum and will have several implications for #stakers ⚡️, the Ethereum staking ecosystem, and #DeFi more broadly.
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The activation of withdrawals is likely to encourage increased participation by validators 🔧, and precipitate further #decentralization and #security of the Ethereum network.
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Partial and full withdrawals will give long-term stakers access to funds that have been locked for more than 2 years.

Early stakers however, have demonstrated high conviction in Ethereum, and may be more likely to stake this newfound liquidity, rather than redeem rewards.💎
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By reducing the liquidity risk of staking ETH, withdrawals could inspire confidence🔑in liquid staking protocols and make ETH staking a more attractive opportunity in general, especially for typically risk-averse institutions.
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We expect to see an increased flow of liquid staking tokens into #DeFi protocols as both confidence in these tokens 🪙, and competition amongst their issuers, builds.
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Liquid staking incumbents such as @LidoFinance @Rocket_Pool @stakewise_io have been developing upgrades to their core protocol infra🔋 in light of withdrawals, to improve their offering for users and the broader Ethereum community.
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Stakers who utilize third-party staking services will gain an opportunity to (re)evaluate how and where to stake their ETH based on factors such as rewards maximization, validator performance, simplicity of the user experience, and fees. 🔒
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With the increased portability of stake, withdrawals will lead to increased #competition amongst staking providers—likely driving further #innovation within the sector, and progressively lowering barriers 🏗️ to entry.
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We explore all these trends, and dive deep into all things #withdrawals in our latest report--The Ultimate Guide to ETH Staking Withdrawals.🔷

Read it here, and watch this space in the coming days for more analysis from the report: consensys.net/shanghai-capel…
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One more thing: In celebration of the upgrade, ConsenSys will launch its 2nd commemorative NFT collection when the upgrade goes live in late-March/mid-April, and invite Web3 enthusiasts to participate by claiming an NFT. 🎉

Sign up for the drop here: consensys.net/shanghai-capel…
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