Withdrawals

The withdrawal process for obtaining underlying assets from wrapped assets involves the following steps:

Initiate Withdrawal Request: Begin by creating a withdrawal request to convert wrapped assets into their underlying counterparts.

Processing by Another User: Once initiated, another user can choose to process your withdrawal request. They will send you the corresponding underlying assets.

Off-chain Verification: Off-chain workers verify the receipt of the underlying assets. This ensures the security and authenticity of the transaction.

Unique Amount Requirement:

When withdrawing assets, users will receive a unique amount in order to preserve transaction security and integrity. This unique amount prevents impersonation or fraudulent activities.

Note: The system will determine the unique amount automatically (e.g., if the user indicates that they would like to withdraw 1 BTC, the system might request to withdraw 0.99999578 BTC).

Off-chain Verification:

Off-chain workers verify the receipt of the underlying assets. This ensures the security and authenticity of the transaction.

Off-chain workers search for a transaction with the following details by periodically scanning the external chain data (e.g. Bitcoin blockchain):

Recipient: The verified address of the user that requested the withdrawal

Amount: The unique generated amount minus the fee (1%)

After the particular transaction has been minted successfully on the external chain, the user's withdrawal is verified by the off-chain workers.

Transfer of Wrapped Assets: Upon verification, your wrapped assets are transferred to the user who processed the withdrawal request.

Processing Fee Distribution: A processing fee of 0.5% of the withdrawal amount is sent to the user who processed the withdrawal. Additionally, another 0.5% is distributed to the pool of off-chain workers as a reward for their contributions.

Seamless Exchange of Assets: The withdrawal process ensures a seamless exchange of assets between users, while also compensating those involved in facilitating the transaction.

The exchange pool of the asset being withdrawn needs to be initialized before executing the withdrawal.

To initiate a withdrawal, users must follow these steps:

1. Minimum Withdrawal Amount: Ensure that the Unit wallet contains more than $100 worth of ETHU to initiate a withdrawal.

2. Add Address: Navigate to Profile -> Settings -> Wallet -> Token (ETH) to add the desired withdrawal address.

3. Initiate Withdrawal: Once the address is added, initiate the withdrawal process.

4. Pending State: The withdrawal enters a "Pending" state after initiation, indicating that it requires processing by another user.

5. Processing by Another User: Another user must process the withdrawal request for it to be executed.

6. Execution: Once processed, the withdrawal is executed, with ETHU being minted for the second user and deducted from the first user's wallet.

7. Rewards: As compensation, 0.5% of the initial withdrawal amount goes to the staking workers, and another 0.5% is awarded to the second user who processed the withdrawal.

By following these steps, users can efficiently initiate and process withdrawals of ETHU tokens within the Unit Network, ensuring seamless asset transfers and appropriate rewards for participants.