The Metis tech stack continually evolves to provide robust and flexible solutions for its participants. With the introduction of the withdrawal feature of the Decentralized Sequencers on mainnet, Metis is making a significant leap forward in technological development.

This isn't just a new function or feature - it's a demonstration of our vision and commitment being executed. As the industry leaders, we're implementing innovations that others are merely contemplating. 

This blog post will delve into the details of both Users and Node Operators withdrawals, explain the mechanisms for users interacting with LST (Liquid Staking Tokens) partners, and cover the security, fees, speed, limits, compatibility, error handling, and documentation aspects of these features.

Withdrawal Feature Overview

Withdrawals for Users

Node operators must initially provide 20,000 METIS to become a Metis sequencer node, but after that threshold, METIS tokens can be deposited and withdrawn freely. Users who are simply depositing METIS tokens via LSTs or different staking mechanisms will be able to withdraw at any time, being only subject to the respective node operator’s own set of rules. 

Mechanism:

• Initiation: The sequencer owner (node operator) initiates the partial withdrawal.
• Frequency: Limited to once per cycle (every 3-5 days).
• Limits: The remaining amount after withdrawal must meet or exceed 20,000 METIS.

Withdrawals for Node Operators

Full withdrawal allows a sequencer node operator to completely withdraw all locked METIS, effectively exiting its node operation.

Mechanism:

• Initiation: The sequencer owner initiates a node exit transaction.
• Wait Period: After a 21-day wait, the sequencer owner can claim all locked METIS.
• Implications: Full withdrawal results in losing network ownership and operational status of the node.

Clarification

These withdrawal features are specifically designed for sequencer operators and are not directly available to community users. Community users interact with the system via LST partners, which manage the staking and redemption processes.

Functionality

Partial and Full Withdrawals

These features are already live on mainnet and can be executed by sequencer operators via L1 smart contracts, leveraging Ethereum’s security measures.

User Withdrawals with LST

Community users interact with the withdrawal process through LST partners like Artemis, which manage the specific rules and processes for redemption.

Security

Withdrawals are executed via Layer 1 (L1) smart contracts, relying on Ethereum’s robust security infrastructure. This ensures the safety and integrity of transactions.

Fees

Sequencer Owner

When a sequencer owner initiates a partial or full withdrawal, it must pay the gas fees associated with the transaction on the Ethereum network. These fees are determined by current network congestion and gas price, ensuring that the transaction is processed and validated securely on the Ethereum blockchain. The gas fees cover the computational resources required to execute the transaction, maintaining the security and integrity of the process.

LST Withdrawal

Fees are determined by the LST partner and are unrelated to Metis. For community users withdrawing their staked tokens through LST partners, the fees associated with the redemption process are set by the respective LST platform. These fees can vary based on the LST partner's policies and the specific mechanisms that partner uses to manage staking and redemption. It's important to note that these fees are independent of the Metis network and are directly related to the services provided by the LST partner.

Speed

• Partial Withdrawal: Initiated by the Sequencer Owner, funds are received after transaction confirmation. Partial withdrawals can only be performed once per cycle, which typically lasts between 3-5 days.
• Full Withdrawal: Sequencer Owners initiate a node exit transaction, and after a 21-day waiting period, they can claim all locked METIS. This process ensures a controlled and secure exit from the network.
• LST Withdrawal: User withdrawals are processed according to the specific rules of the LST partner. For instance, Artemis processes withdrawals within 3-5 days, with progress visible on the Artemis platform. This transparency helps users track their funds throughout the process.

Limits

• Partial Withdrawal: The remaining amount must meet or exceed a minimum of 20,000 METIS to ensure the node continues to operate efficiently. This threshold helps maintain the stability and security of the network.
• Full Withdrawal: All locked METIS are withdrawn at once, resulting in the complete exit of the node operator from the network. This ensures a clear and decisive exit process.
• LST Withdrawal: Subject to the redemption exchange rates set by the LST partner, allowing users to redeem their staked tokens based on current market conditions. These rates ensure a fair and transparent withdrawal process.

Compatibility

For Sequencer Owners:

The frontend currently supports MetaMask, making it accessible for most users. Direct contract calls have no restrictions, providing flexibility for advanced users who prefer interacting with the blockchain directly.

For Community Users: 

Compatibility is determined by the wallets supported by the LST partner, ensuring a seamless and user-friendly experience. Users can choose from a variety of compatible wallets to manage their LST interactions.

Error Handling

• Sequencer Owners should contact Metis support at sequencer@metis.io for any issues related to withdrawals. Our support team is equipped to handle queries and provide assistance to ensure smooth operations.
• Community Users should contact the respective LST partner for assistance. LST partners are responsible for managing user queries and resolving issues related to their specific staking and redemption processes.

Documentation

• Sequencer Owners should refer to the Metis operational guide (testnet guide) for detailed instructions on initiating and managing withdrawals. This guide provides comprehensive information to ensure smooth operations.
• Community Users should refer to the help documentation provided by the LST partner. These documents offer clear and detailed instructions tailored to the specific LST platform, ensuring users can navigate the staking and redemption processes effectively.

Partners

Artemis has already launched the redemption feature, enabling seamless interaction for users. Now you are able to redeem artMETIS for METIS, including sequencer rewards, offering more flexibility for your investments. For more details, check their announcement and step-by-step guide.

The next project to enable the withdrawal feature will be ENKI. We will make sure to inform you about it as soon as the feature is tested and available for users.

Benefits for Users

Aligned Incentives

Community members participating in Sequencer Mining earn rewards, contributing to the network's growth and security. The collaborative approach offers numerous benefits for the community by enhancing network decentralization and sharing rewards. 

By participating in Sequencer Mining, users can earn an Mining Rewards Rate of 20% while supporting the Metis ecosystem's growth and security. This creates a mutually beneficial relationship, fostering a strong sense of shared ownership and responsibility.

Moreover, LSTs on Metis are offering an additional yield offering way more attractive MMR (check current Artemis' rate).

Optimized Capital Efficiency

Instead of locking up their tokens, users receive Liquid Staking Tokens, offering a flexible and liquid alternative for their contribution to the network. These tokens can be freely used within the Metis DeFi ecosystem, allowing users to participate without sacrificing market flexibility.

Conclusion

The Metis withdrawal feature on mainnet provides crucial flexibility for sequencer operators while ensuring the security and integrity of the network. This development marks a significant step forward in our technological journey, reflecting our vision and commitment to pushing the boundaries of what's possible in the blockchain space. 

As Metis continues to grow, these functionalities will play a pivotal role in maintaining a decentralized, efficient, and user-friendly ecosystem. Exciting times are ahead, and we invite you to join us on this journey.