While interest in people wanting funds is increasing ETHW by reason of their ETH, already some services DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. are taking steps to prevent demand from compromising their operations.
- With the arrival of ETHPoW, the holders of ETH receive the same amount in the new token
- The services DeFi can register high demand for ETH within the framework of the hard fork
- Platforms such as Aave y Compound measures are already being taken
- The Merge will officially arrive in the next few days
The arrival ofThe Mergehas put many scenarios on the table, and one of the ones that is starting to gain more strength is the idea of a possible hard fork to Ethereum, which would create an alternate version of the network a network refers to all nodes in the operation of a blockchain at any given moment in time. that would continue to operate with traditional mining, better known as ETHPoW o ETHW.
And as it usually happens when a network goes through a hard fork, this can represent an opportunity for the users of its digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency, who will receive the equivalent in the new network of the native tokens they had in the other one at the time of the split. This is the scenario that is being presented right now with Ethereum, since the expectations about the above have caused many people to begin to accumulate so much money that they have ETH as possible, which is a disadvantage for many product and service platforms that operate on its Blockchain.
Receiving ETHW for having ETH
According to an article published by the media BlockWorks , Many platforms have already made it clear that they will continue to operate over the main network of Ethereum, i.e. that version that will work withProof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked.afterThe Merge.However, while this may not represent the best case scenario for an alternate version of the network, there is a lot of interest among people to receive tokens. ETHW simply by having them in your accounts before the upgrade.
In this regard, the co-founder of the protocol DeFi Euler, Michael Bentley, indicated that this scenario generates in the users the expectation of receiving free money, similar to what happened with the birth of Ethereum a decentralized open-source blockchain with smart contracts functionality. Classic, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. y Bitcoin SV.
About this new token, analysts are very clear that it won’t have the same cost of a ETH at present. Already, the futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. markets estimate that each unit of ETHW shall have a value estimated at 2.5% of the capitalization of each currency currency is a medium of exchange that defines value. of Ethereum, so the co-founder and CEO of CoinGecko, Bobby Ong, insists that despite the low value, it is not negligible to have these assets:
“Assuming prices remain constant and the Merge snapshot a recording of the state of a blockchain at a particular block height. is taken now, this means that all existing ETH holders will also get ETH PoW tokens; in other words, another token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. worth [2.47%] of their ETH holdings.”
According to Ong, this scenario could be risky for non-incumbents interested in buying. ETH to have the equivalent in ETHW. It is expected that the native currency of Ethereum increase before the arrival ofThe Merge,but once it happens it may drop in price once all the furore has passed.
Services DeFi are prepared
However, in this scenario Bentley proposes that there are other alternatives that come from the hand of the protocols DeFi. Users could avoid the risk of buying ETH beforeThe Mergesimply by applying for loans from platforms such asCompound, Aave o Euler.
In this regard, BlockWorks explains:
“For example, a person can put USD$1,000 in USDC into a loan protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. to borrow USD$500 in ETH. If he keeps that loan in his personal wallet a place where cryptocurrency users can store, send and receive digital assets. during the fork, he will have $500 worth of ETH that will generate ETHW tokens, which he can theoretically sell for approximately $12.50.
Faced with this possibility already several protocols DeFi are adopting approaches to mitigate the associated risks. For example, they are Aave made the decision to temporarily suspend the loans from ETH, Compoundis setting maximum limits for interested parties, but it is Euler opted to continue operating as normal for the time being.
Depending on the possibilities, the protocols DeFi should avoid several things:
- Reduce the liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. of ETH The holders financing the loans cannot withdraw their assets if they wish to do so.
- Avoid the fall in the price of tokens representative of ETH, in order to maintain parity between stETH y ETH.
- Ensuring the liquidity of pools that operate with ETH, to keep them operational within the framework of theThe Merge.
What can holders of ETH?
As always, the decision rests with the holders of the digital currency, but in the face of the scenario associated withThe Mergealready some exchanges have been preparing.
The first thing that some platforms have done is to announce that they will support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. trading with ETHW, and will enable marketing spaces and will allow the holders of ETH receive the equivalent in the new digital currency through their accounts.
Other platforms have gone even further and opened up futures and derivatives trading, taking advantage of the hype and investor interest.
However, the safest thing in this case is that the interested parties will have their ETH in a wallet/address that runs over the Ethereum.
As for the possible hard fork, at the moment there is no official information about tentative dates, but it seems to be a fact that the update that will give rise to the version of Ethereum underProof-of-Work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. could arrive in the next few weeks.
- Binance.US introduce staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. de Ethereum mientras se acerca The Merge
- IIA? Cloud cloud servers are typically located throughout different data centers all over the world. Computing? Ethereum miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. look to other projects ahead of The Merge’s imminent arrival
- Ethereum Bellatrix update goes live: countdown to The Merge begins
Article by Angel Di Matteo / DiarioBitcoin
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