27.06.2025 18:48

Tezos has significantly enhanced its user experience with the launch of its groundbreaking Fast Withdrawals feature. This innovation dramatically reduces the time required to transfer funds from Etherlink to the Tezos Layer 1 blockchain.

Previously, users faced a lengthy waiting period of approximately two weeks for these transfers. Now, thanks to this new functionality, the process is completed in a mere minute, eliminating a major pain point for both users and developers alike. This improvement promises to significantly boost the platform's overall usability and attractiveness.

Fast Withdrawals operate by allowing users to swiftly receive their tez – Tezos' native cryptocurrency – from Etherlink to Layer 1 for a small fee. Unlike many solutions, this system utilizes Tezos' native infrastructure, foregoing the need for third-party bridges. The mechanism relies on smart contracts deployed on both Etherlink and Tezos.

The ingenious system works by leveraging liquidity providers on Tezos Layer 1. These providers advance the requested funds to users (less the transaction fee), subsequently receiving reimbursement after the standard 15-day period. This innovative approach enables rapid transfers for users while fairly compensating liquidity providers for their services, operational costs, and risk.

Security is paramount, and the system incorporates a robust verification mechanism. A bridge ensures liquidity providers receive their funds once the transaction is finalized on the Tezos blockchain. This entire process is facilitated by a pre-compiled smart contract on Etherlink, interacting seamlessly with a corresponding fast withdrawal contract on Tezos Layer 1. Liquidity providers actively monitor requests, claim them, and expedite the transfer of funds to users. Should a provider not respond within 24 hours, the request automatically expires, and the user retains their funds.