What basic information do you need to know before participating in Ethereum 2.0 pledge ETH?
Original title: "The Initial Launch of ETH2.0"
Source: Blue Fox Notes
With the storage of ETH2.0 The contract is released, and the market's interest in ETH is gradually rising.
(ETH2.0’s storage contract release, etherscan)
ETH2.0’s Beacon Chain main network (Beacon Chain) plans to launch on December 1st, in order to To start, the storage contract needs to deposit a minimum of 524,288 ETH (16,384 verifiers). As of the writing of Blue Fox Notes, 39,973 ETHs have been pledged, including 3,200 ETHs deposited by Vitalik, the founder of Ethereum. According to the current market value is close to 1.5 million US dollars, and the overall minimum deposit of ETH is about 250 million US dollars.
(Vitalik deposits 3200ETH into the storage contract, etherscan)
(The minimum pledge requirement for ETH2.0 mainnet launch, ethereum.org)
Why do people participate in the launch of the ETH2.0 beacon chain mainnet?
One of the most important reasons is the expectation of stable returns with relatively low risk. If only 524,288ETH is deposited, then its APR income can reach 21.6%; if the ETH participating in the pledge reaches 2,450,000, its return rate can reach 10%; even if the locked ETH is as high as 10,000,000, its APR income can also reach 4.9%, much higher than the ETH storage income of other DeFi protocols.
(The relationship between the amount of ETH pledged tokens and the expected return, ethereum.org)
(APY of Aave's ETH lending market, Aave)
(APY of ETH aggregation mining on YFI, Yearn)
(APY of the ETH lending market on Compound, Compound)
At present, the number of Ethereum addresses holding more than 32 ETH is about 13%. Seven days before the start of the day, a total of 524,288 ETH needs to be deposited. If the activation requirement cannot be met, it will be activated 7 days after the requirement is met. In the next two weeks we can see the development of ETH deposits.
In addition, it should be noted that the annualized rate of return of ETH pledge is calculated in ETH, not USD, which means that with the increase of ETH price Growth, its actual APY may be higher than the current rate of return, which will motivate more people to pledge ETH and earn more ETH.
Of course, there will also be certain liquidity problems here. After depositing ETH into the storage contract, ETH cannot be withdrawn, which will lead to liquidity problems. Of course, there are also some projects dedicated to helping ordinary users solve this problem, such as RPL (Rocket Pool) and so on.
Will the launch of the ETH2.0 beacon chain affect the current PoW chain of Ethereum?
According to the past iteration history of Ethereum, it may take several years for the final complete transition from PoW to PoS chain, so in a long period of time, the two chains will coexist. So, what does this mean for ETH holders? What work needs to be done?
If the token of the current Ethereum chain is called ETH1, and the token on ETH2.0 is called ETH2, what is the relationship between the two? (Blue Fox Note: Some people also call ETH2 BETH, which means ETH on the Beach Chain)
First, when the PoW chain transitions to the PoS chain, no matter whether it is ETH1 or ETH2, it will run on the ETH2.0 network. In the end, there is only one ETH. However, for now, ETH1 and ETH2 are tokens of two different chains. After the launch of the beacon chain, there is a transition period between the two Ethereum chains. Users deposit ETH into the storage contract, and can obtain ETH2 token incentives through the ETH2.0 network. With the stability of the ETH2.0 network, ETH1.0 will gradually become a fragment of ETH2.0.
That is to say, ETH2.0 is not a hard fork of Ethereum, so there will be no forked tokens, and the current ETH ( ETH1) holders will not get two assets. For example, in the BCH hard fork in the history of Bitcoin, users who own BTC at that time will get the same amount of BCH. Since ETH2.0 is not a hard fork, there is no free candy.
ETH1 tokens come from the current PoW chain of Ethereum, while ETH2 tokens are generated through the PoS mechanism after the launch of the ETH2.0 Beacon Chain network (there is no transfer and smart contracts, etc.), when ETH2 tokens are launched, ordinary users can choose to keep ETH1 tokens, or they can choose to convert their ETH1 tokens to ETH2 tokens, but from the current point of view, due to liquidity reasons and one-way Most users may not choose to convert their ETH1 to ETH2 for the time being. If conversion is really needed, subsequent exchanges or wallets can help users complete the conversion.
In short, for ordinary users, after ETH2.0 goes online, they don’t have to worry about their ETH assets, nor do they need to worry about the exchange of ETH1 and ETH2 in the future . The impact of the launch of ETH2.0 on DeFi The launch of ETH2.0 is not only beneficial to the long-term development of ETH, but also beneficial to its DeFi ecological development. The launch of Ethereum 2.0 brings certain expectations for the scalability of Ethereum in the future. Of course, if ETH2.0 does not go well, it will also have an adverse impact on the ETH and DeFi ecology.
The compound effect of two horse-drawn carriages
At present, the demand for Bitcoin exceeds the production At least double the output, as shown in the picture below:
, TheBlock)
The halving effect of Bitcoin is gradually emerging. At the same time, the launch of the ETH2.0 storage contract will also lock a large amount of ETH in the future. Assuming that at least 2.5 million ETH is deposited into the pledge contract of Ethereum, and the APY is around 10%, then this will at least lock ETH worth over $1 billion.
The halving effect of Bitcoin and the pledge effect of ETH will be gradually revealed in the next few months to a year.
When the two carriages of Bitcoin and Ethereum start, they may show different market characteristics from those at the beginning of 2017. Not only Bitcoin will become the protagonist, ETH And mainstream DeFi may also have shining moments. As for how to evolve, it will gradually bloom in the next few months to a year. Of course, ups and downs during this period are also necessary, which is also the normal state of the market.
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