Maintaining Liquidity with Fast Unbonding

Challenge

Fast unbonding allows BTC holders to regain liquidity quickly, but PoS chains typically impose long unbonding periods for security reasons. These periods are designed to mitigate risks such as chain reorganizations, slashing events, and potential validator misbehavior. During this time, users are unable to withdraw their staked assets or rewards, creating a significant liquidity bottleneck. Also, in Babylon, the unbonding time can take several days due to the Covenant Committee finalizing withdrawal requests and the potential occurrence of slashing activities.

Nativerse Solution

Instant Unstake addresses the liquidity needs of BTC stakers by leveraging the Satoshi Reserve Pool. When a user initiates unstaking, they transfer their 2PC-MPC account used for BTC staking to Nativerse, which manages the remainder of the unbonding process. Users receive BTC immediately from the Satoshi Reserve Pool, enabling fast access without compromising security. Unlike directly unstaking with using Babylon where unbonding can take several days due to slashing risks or covenant commitee withdrawal finalizations, with advanced 2PC-MPC technology allows users to bypass these delays by securely delegating their staked accounts, ensuring instant liquidity.