Unstaking

The unstaking process allows users to redeem their ETH and the rewards generated by their staked ETH using hETH. It's noteworthy that Restake implements a predefined percentage as a unstaking fee while unstaking.

There are two scenarios where the users can unstake their tokens:

Immediate Unstaking:

In this scenario, the protocol swiftly utilizes the reserve vault for immediate unstaking, ensuring a seamless process for users. Assuming there is a sufficient amount of ETH in the reserve vault, users unstake their hETH, triggering the protocol to burn it. Subsequently, ETH is transferred to the user based on the current exchange rate (hETH-ETH), and the request is promptly finalized without batching.

Batch Unstaking:

If there is no sufficient ETH available in the reserve the unstaking request becomes the part of an active unstaking batch. When a user requests to unstake, the hETH is transferred to vault. Once the unstaking is complete hETH is burned, ETH and accumulated rewards will be automatically distributed to users.

The unstaking mechanism is governed by three pivotal criteria:

• Unstake Threshold: The minimum withdrawal request required for an unstake batch. (This should be : Minimum amount hETH needed/required to close/dispatch an unstake batch to L1)

• Number of Unstakers: The count of unstakers in the current unstaking batch.

• Time Elapsed: The duration since the last unstake batch was closed/dispatched to L1

User unstaked hETHs are grouped together to form an unstake batch which is ultimately sent to L1 and is unstaked on protocols StaderLabs or Lido or protocol uses the DEXs like Uniswap, Curve, to sell ETHx/wstETH tokens to fulfill the unstaking request.

Upon successful unstaking on L1, the received ETH is sent back to L2 and then will be distributed to unstakers of that particular batch.

User-unstaked hETHs are grouped together to form an unstake batch, sent to L1, and unstaked on protocols such as StaderLabs or Lido. Alternatively, the protocol may leverage DEXs like Uniswap and Curve to sell ETHx/wstETH tokens and fulfill the unstaking request.

Upon successful unstaking on L1, the received ETH is sent back to L2 and subsequently distributed to the unstakers within that particular batch. This comprehensive process ensures a secure and efficient unstaking experience for users.