Request For Quote (RFQ)

depositors can request quotes from liquidity providers to sell validators in exchange for ETH.

An RFQ is done when a Depositor wants to sell a validator to a Liquidity Provider in exchange for liquid ETH.

An RFQ for a set of validators is first submitted via Northstake API. When requesting a quote for their validators, depositors need to specify which validators they want to sell by providing the validator indices.

The set of active validators belonging to a Depositor can be retrieved from the Northstake API and is ranked according to their time to withdrawal estimated by Northstake's beaconchain connection.

The provision of exiting estimates may improve the sale of validators by prioritizing liquidity and reducing uncertainty related to the time to withdrawal.

LPs receive the RFQ indicating the ETH balance on the validators for sale and the estimated time to delivery via a webhook. Notice that the amount of ETH includes any incentives provided by Northstake.

LPs can submit all-or-nothing quotes as responses to requests for quotes using the API. Depositors are presented with the highest quote for acceptance. If accepted the depositor and the LP that provided the accepted quote receive settlement instructions via the webhook. EXPLAIN WEBHOOK?

To learn more about the Depositor & LP Journeys please see: