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 Explained
On their Twitter account, the ETHPOW group reveal that they’re going to freeze some lending protocol good contracts. According to them, within the preliminary days after the fork, customers’ ETHW tokens deposited in liquidity swimming pools may be compromised. Pools like Uniswap, Aave, and Compound may have deposited ETHW tokens.
According to the group, these tokens may be swapped by hackers and scientists with worthless USDT, USDC and WBTC. Therefore the ETHW core is making the choice to freeze good contracts of lending swimming pools until these firms can provide you with a greater answer.
They have additionally revealed that the freeze is not going to be utilized to staking contracts in the event that they solely cope with a single asset. The ETHW core has additionally advisable 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 massive selections. He believes that the ETHW chain will develop into a sluggish, centralized chain with none market worth.
Is The Ethereum Hardfork Likely
The Ethereum merge will change Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. This will cut back Ethereum’s vitality consumption by greater than 99%. However, it additionally replaces the miners at present required by the PoW system with validators.
As a outcome, the miners would possibly shift to a PoW chain like Ethereum Classic, or hard fork the Ethereum blockchain. However, with a whole lot of strain piling up towards Ethereum hardfork, such a transfer will most likely not achieve traction.
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