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 will freeze some lending protocol good contracts. In response to them, within the preliminary days after the fork, customers’ ETHW tokens deposited in liquidity swimming pools could be compromised. Swimming pools like Uniswap, Aave, and Compound may have deposited ETHW tokens.
In response to the group, these tokens could be swapped by hackers and scientists with worthless USDT, USDC and WBTC. Due to this fact the ETHW core is making the choice to freeze good contracts of lending swimming pools until these corporations can provide you with a greater resolution.
They’ve additionally revealed that the freeze won’t 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 selections. He believes that the ETHW chain will turn into a sluggish, centralized chain with none market worth.
Is The Ethereum Hardfork Seemingly
The Ethereum merge will change Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. This may scale back Ethereum’s power consumption by greater than 99%. Nonetheless, it additionally replaces the miners at the moment required by the PoW system with validators.
Because of this, the miners would possibly shift to a PoW chain like Ethereum Traditional, or laborious fork the Ethereum blockchain. Nonetheless, with quite a lot of stress piling up in opposition to Ethereum hardfork, such a transfer will most likely not acquire traction.
