CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino

crypto.news 2025-06-27 14:30:02

Tezos collapses 15-day withdrawal bottleneck with lightning-fast Etherlink exits

What once took half a month now takes a moment. Tezos has activated fast withdrawals for Etherlink, using a native liquidity bridge and smart contracts to unshackle users from the long delays of optimistic rollups. According to a press release shared with crypto.news on June 27, Tezos has rolled out Fast Withdrawals on its Etherlink Layer 2, enabling users to transfer Tez ( XTZ ) to Tezos Layer 1 in roughly one minute. The upgrade replaces the standard 15-day waiting period associated with optimistic rollups by introducing a built-in liquidity mechanism. Unlike third-party bridging solutions, the feature is embedded directly into the protocol, allowing users to withdraw XTZ almost instantly by paying a nominal fee, while liquidity providers front the funds and are later reimbursed. You might also like: Bolt targets merchant friction with stablecoins, one-click onboarding How Tezos sidestepped layer 2’s most annoying trade-off Optimistic rollups have long been a double-edged sword for Ethereum scaling—offering cheaper transactions at the cost of painfully slow exits. While networks like Arbitrum and Optimism impose a 7-day dispute window to secure optimistic rollups, Tezos’ Etherlink extends this period to 15 days. Until now, users had to either wait it out or rely on a centralized bridge and navigate counterparty risk. Tezos’ fast withdrawals eliminate that dilemma by keeping the process entirely on-chain. The system works through a decentralized liquidity pool model. When a user requests a fast withdrawal, liquidity providers on Tezos Layer 1 immediately send them the Tez, minus a small fee. In return, those providers are guaranteed reimbursement once the standard 15-day challenge period lapses. Smart contracts enforce the entire flow, meaning no middlemen or external custodians are involved, just code. For traders, the implications are obvious: no more locked capital during volatile markets. But the upgrade’s real significance lies in how it rethinks Layer 2 architecture. Most rollups treat slow withdrawals as an unavoidable byproduct of fraud proofs. Tezos, however, treats it as a solvable liquidity problem—one that doesn’t require sacrificing decentralization for speed. At the same time, Etherlink’s EVM compatibility means Ethereum developers can port their dApps without inheriting its scaling pain points. Combine that with near-instant withdrawals, and Tezos suddenly becomes a compelling alternative for projects tired of Ethereum’s Layer 2 bottlenecks. Read more: Few central banks see Bitcoin reserves on horizon but interest in diversification still grows

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.