Friday, December 9, 2022
 

EthereumPoW To Freeze LP Contracts To Prevent Post-Merge Dump

  • EthereumPoW will freeze liquidity pool contracts after The Merge.
  • This is to prevent hackers from swapping or lending unsupported cryptocurrencies.
  • In context, Tether and Circle said they will not be supporting their stablecoins on the PoW network.

EthereumPoW, a subset of Ethereum holders and miners who prefer to keep a Proof-of-Work (PoW) version of Ethereum after The Merge, announced that it will be freezing certain liquidity pool (LP) contracts to “protect users’ assets.”

According to a Twitter thread, this is to prevent people with malicious intent from taking advantage of the event and its repercussions.

This announcement is in anticipation of the possible scheme of hackers to swap or lend unsupported and therefore valueless tokens – stablecoins and other highly liquid digital assets – on liquidity pools. In context, stablecoin issuers such as Tether and Circle stated that they will only be supporting their stablecoins USDT and USDC, respectively, on the Proof-of-Stake (PoS) Ethereum network.

Consequently, stablecoins that are in the EthereumPoW fork will be worth zero. Given this, EthereumPoW discussed that it is possible for people to trade or lend these unsupported tokens on liquidity pools, especially of Ethereum-based decentralized exchanges like Uniswap, SushiSwap, Aave, and more.

The post received the ridicule of people, with one person claiming ETHW is even worse than Ethereum Classic (ETC).

For those who are new in the crypto space, Ethereum Classic is an old fork of Ethereum. In 2016, back when Ethereum was still in its infancy, a hack occurred on the prototype in which the attacker siphoned 3.6 million ETH.

The community then resolved to perform a hard fork after a majority voted to revert the blockchain before the hack began, hence preventing the above-mentioned loss. Meanwhile, some people wanted to keep the current blockchain – along with the incident – to show that blockchain is indeed tamper-proof.

Fast forward to 2022, and an overwhelming number of Ethereum community members are backing the PoS transition. However, some people want to keep the PoW version, with Tron Founder Justin Sun as one of the most prominent supporters.

  • EthereumPoW will freeze liquidity pool contracts after The Merge.
  • This is to prevent hackers from swapping or lending unsupported cryptocurrencies.
  • In context, Tether and Circle said they will not be supporting their stablecoins on the PoW network.

EthereumPoW, a subset of Ethereum holders and miners who prefer to keep a Proof-of-Work (PoW) version of Ethereum after The Merge, announced that it will be freezing certain liquidity pool (LP) contracts to “protect users’ assets.”

According to a Twitter thread, this is to prevent people with malicious intent from taking advantage of the event and its repercussions.

This announcement is in anticipation of the possible scheme of hackers to swap or lend unsupported and therefore valueless tokens – stablecoins and other highly liquid digital assets – on liquidity pools. In context, stablecoin issuers such as Tether and Circle stated that they will only be supporting their stablecoins USDT and USDC, respectively, on the Proof-of-Stake (PoS) Ethereum network.

Consequently, stablecoins that are in the EthereumPoW fork will be worth zero. Given this, EthereumPoW discussed that it is possible for people to trade or lend these unsupported tokens on liquidity pools, especially of Ethereum-based decentralized exchanges like Uniswap, SushiSwap, Aave, and more.

The post received the ridicule of people, with one person claiming ETHW is even worse than Ethereum Classic (ETC).

For those who are new in the crypto space, Ethereum Classic is an old fork of Ethereum. In 2016, back when Ethereum was still in its infancy, a hack occurred on the prototype in which the attacker siphoned 3.6 million ETH.

The community then resolved to perform a hard fork after a majority voted to revert the blockchain before the hack began, hence preventing the above-mentioned loss. Meanwhile, some people wanted to keep the current blockchain – along with the incident – to show that blockchain is indeed tamper-proof.

Fast forward to 2022, and an overwhelming number of Ethereum community members are backing the PoS transition. However, some people want to keep the PoW version, with Tron Founder Justin Sun as one of the most prominent supporters.

 

Latest news