NOTE: Paxos no longer mints new BUSD, but allows customers to redeem BUSD for USD or convert their BUSD to USDP. Learn more.
The upcoming Ethereum Shanghai Upgrade is quickly approaching and is expected to take place on April 12, 2023. Listed below are key details on the upgrade and what support to expect from Paxos:
What is the Shanghai Upgrade?
The Ethereum Shanghai Upgrade is a planned hard fork to upgrade the Ethereum network. This upgrade does a number of things, but most notably allows for the withdrawal of staked Ether. It is a community supported, non-contentious planned upgrade that has been successfully tested on multiple test networks with little issue.
When will the upgrade occur?
The upgrade is set to happen automatically on slot 6209536 which is currently expected to occur on April 12, 2023.
How long is the upgrade?
The Shanghai upgrade itself will occur over a single block (~12 seconds).
How will this impact you?
Please note that no action is required on your part for this upgrade. Your balances will not be impacted and all assets are safe with Paxos. The corresponding amount of ETH and ERC-20 assets will be reflected on the new chain.
Should I expect interruptions?
We do not expect any interruption to trading during this period. Your customers will continue to be able to trade all Paxos-supported crypto assets on the Paxos platform including BTC, LTC and BCH, as well as Ethereum and ERC-20 assets such as ETH, LINK, MATIC, AAVE, UNI, USDP, BUSD and PAXG.
Will Paxos have a maintenance window during this time?
Paxos does not expect any interruption or pause to trading. Paxos will pause on-chain Ethereum network transfers approximately 1 hour prior to the Shanghai upgrade and will resume transfer activity once we’ve determined that the new network is stable. Ensuring network stability may require a longer maintenance window due to external issues related to the upgrade. On-chain transfers for Bitcoin, Bitcoin Cash and Litecoin are not expected to experience interruptions.
Where can I receive updates?
We will communicate all updates before, during and after the Shanghai upgrade through the Paxos status page. To receive real-time updates, select "Subscribe to Updates" in the upper right hand corner of the page.
For Transfers Users
During the Shanghai upgrade, Paxos will pause on-chain transfer processing on the Ethereum network (ETH, LINK, MATIC, AAVE, UNI, USDP, BUSD and PAXG). Specifically:
- Create Crypto Withdrawal - Withdrawals can be created, but they will remain in PENDING status until we resume blockchain processing.
- Create Deposit Address - Customers can continue to generate deposit addresses.
- Detection/Crediting of Deposit - Until Paxos resumes processing, deposits will not be recognized. At that point, we will process all deposits that have been made during the Shanghai upgrade.
On-chain transfer processing for Bitcoin, Bitcoin Cash and Litecoin is not expected to experience any interruption.
What does Paxos recommend that Transfers Users do in order to prepare for the Shanghai upgrade?
Paxos recommends pausing ETH and ERC-20 withdrawal initiation on your application. We believe that pausing this feature will reduce price risk for your end users that might arise from transfers remaining in a pending state during an extended maintenance window.
As a reminder, you will be able to monitor or receive updates on Paxos’ on-chain transfer processing availability through Paxos status page.
NOTE: This recommendation is not a requirement, and we are happy to discuss other options if needed.
How do I get more information about the Ethereum Shanghai upgrade?
We are closely monitoring any updates related to the Shanghai upgrade and will continue to inform you of any changes. We will also update the Paxos status page, so please make sure you are subscribed.
We expect minimal downtime without disruptions, but in the event that there are any issues that impact your ability to trade, please contact support, of your Paxos liaison.