Ethereum Miners To Freeze Liquidity Pool After Hardfork, Here’s Why

Ethereum miners, particularly the ETHPOW group, have introduced a liquidity pool freezing expertise. ETHPOW is the group of Ethereum miners who’ve vowed to hardfork the chain after the merge. 

In a Twitter announcement, they reveal that the usage of liquidity pool freezing expertise was to guard the customers from hackers.

Liquidity Pool Freezing Plan Defined

On their Twitter account, the ETHPOW group reveal that they’re going to freeze some lending protocol good contracts. In accordance with them, within the preliminary days after the fork, customers’ ETHW tokens deposited in liquidity swimming pools may be compromised. Swimming pools like Uniswap, Aave, and Compound may have deposited ETHW tokens.

In accordance with the group, these tokens may be swapped by hackers and scientists with worthless USDT, USDC and WBTC. Subsequently the ETHW core is making the choice to freeze good contracts of lending swimming pools until these corporations can provide you with a greater answer. 

They’ve additionally revealed that the freeze is not going to be utilized to staking contracts in the event that they solely take care of a single asset. The ETHW core has additionally beneficial that customers take away their tokens from liquidity swimming pools like decentralized exchanges and lending platforms.

This transfer has drawn criticism from varied influential figures within the crypto neighborhood. Foobar, a developer and blockchain auditor, has ridiculed the group by questioning their competence to efficiently pull off this transfer.

Alberto Rosas, the CEO of Gamium Corp, has questioned the blockchain’s decentralization if a small group could make such huge choices. He believes that the ETHW chain will develop into a gradual, centralized chain with none market worth.

Is The Ethereum Hardfork Doubtless

The Ethereum merge will change Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. This may cut back Ethereum’s power consumption by greater than 99%. Nonetheless, it additionally replaces the miners presently required by the PoW system with validators.

Consequently, the miners may shift to a PoW chain like Ethereum Traditional, or onerous fork the Ethereum blockchain. Nonetheless, with quite a lot of strain piling up in opposition to Ethereum hardfork, such a transfer will most likely not achieve traction.

Nidhish is a expertise fanatic, whose purpose is to seek out elegant technical options to resolve a few of society’s largest points. He’s a agency believer of decentralization and desires to work on the mainstream adoption of Blockchain. He’s additionally huge into nearly each common sports activities and likes to converse on all kinds of matters.

The introduced content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.