Simplifying Ethereum Ecosystem-based deposits
In our continuous effort to enhance client experience and streamline our services, we have initiated a significant upgrade to our Ethereum Virtual Machine (EVM) deposit addresses system.
All Smart Contract deposit methods have now expired. Any deposits made to a Smart Contract address are at risk of being lost.
The drop down menu to select Smart Contract or Unified is no longer available as all deposit methods will now default to using the Unified method. Clients can continue to use the deposit addresses provided on the deposit page for each asset.
What this upgrade entails and how it benefits you:
Previously, our system relied heavily on a smart contract setup for Ethereum deposits. While innovative, this approach presented several challenges:
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Compatibility issues: Due to security measures, some exchanges restrict withdrawals to smart contract addresses and restrict the gas limit, thereby creating barriers for our users.
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Layer-2 Chain Conflicts: The emergence of new Ethereum-based Layer 2 solutions, not fully compatible with our contract setup, posed risks of irreversible fund loss.
In response, we are transitioning to use addresses that are simpler, more cost-effective, and widely compatible, offering a straightforward solution for depositing tokens across the EVM ecosystem.
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User-Friendly Deposits: You can now deposit the vast majority of listed EVM tokens to a single, consistent address, reducing confusion and simplifying the process.
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Reduced Costs and Complexity: Moving away from smart contract addresses eliminates costs. This change allows us to offer clients the ability to generate additional addresses, as we are removing the one-address-per-client limit.
Changes within the Kraken Web and Mobile Applications:
To ensure a smooth transition, from February 13th, you will see both current and new deposit methods when navigating to make a deposit.
New deposit methods can be identified by the Method Name “Unified” while the old Smart Contract based methods will have the Method Name “Smart Contract”. We highly recommend that you transition to using the Unified setup as the Smart Contract methods will expire on March 10th, 2024.
Both Kraken Smart Contract and Unified EVM addresses are hexadecimal addresses beginning with 0x.
This upgrade reflects our commitment to providing a seamless and user-friendly experience. We believe it is a strategic move towards a more reliable, efficient, and user-centric service.
For web and mobile clients a full list of expiring methods, new methods, and how to prepare for these changes can be found in our support article: How to Transition to New EVM Addresses for Kraken Deposits.
For API users, a full list of expiring methods, new methods, and how to prepare for these changes can be found in our support article here.
We have a complete guide on navigating through deposit methods on Kraken.
To stay consistent with network requirements deposit minimums for all EVM assets will continue to be updated. Deposits made to Unified deposit methods below the deposit minimums are not stackable and will be considered lost.
Additionally native assets already using the Unified deposit methods such as Ethereum (ETH), Ethereum Classic (ETC), Ethereum PoW (ETHW), Avalanche (AVAX), Matic (MATIC), Energy Web Token (EWT), Songbird (SGB), and Flare (FLR) will no longer be stackable beginning February 13th. For a full list of deposit minimums please see our deposit minimum support article.
Please be aware that the deadline to switch to the new Unified Deposit Methods is March 10th. After March 10th, Smart Contract deposit methods will be discontinued and no longer supported.
On March 10th, 2024 the Smart Contract deposit methods will disappear from the deposit pages and the default deposit method will be the new Unified deposit methods.
Please be aware that using a Smart Contract Method for deposits after March 10th, carries significant risks.
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Risk of Not-Crediting: There is a possibility that deposits may not be credited at all.
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Recovery Fees: Deposits may incur a fee for recovery if not credited.
We strongly recommend transitioning to the new Unified deposit method well ahead of the 10th of March. Acting now will help avoid any inconveniences or potential losses associated with the old deposit methods. You can prepare by deleting any Smart Contract Kraken deposit addresses you have saved on external platforms or wallets.