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Retail Investor Operation Guide: How to Ensure the Most Airdrops Before the Merger of Ethereum

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7 Steps to Fully Reap the Merger Event Bonus

Original author: Bobby Ong, CoinGecko co-founder and COO

Original compilation: wzp&FYJ, BlockBeats

This article is compiled from CoinGecko joint creation and COO BlockBeats compiled and translated Bobby Ong's views on his personal social media platform as follows:

Ethereum is scheduled to merge on September 13, and soon ETH holders will receive airdropped ETH PoW Token.What should holders do? You can consider the following 7 Steps to fully enjoy the merger event bonus:

First, what is happening? Ethereum is undergoing an upgrade and it will transition from PoW to PoS. After the transition, ETH miners will not be able to continue mining. Miners are forking ETH to keep the PoW chain so they can continue mining.

1. To get the ETH PoW Token airdrop, you need to hold ETH in a wallet that supports Ethereum fork.

It is best to store ETH with a hardware wallet. If you hold ETH through a trading platform, there is a possibility that the trading platform will not fork the Token for the user. You need to choose a trading platform that supports forking to easily obtain the forked Token. Ideally, the trading platform also supports trading. Some exchanges may take several months to transfer tokens into accounts. The merger is about to take place, please check the announcement of the trading platform you are using.

2. Send all Tokens to the ETH mainnet

Users holding ETH in Optimism, Arbitrum, Polygon, Avalanche or any other L2 will not be eligible for ETH PoW airdrops. Before Merge, they need to be sent to the main network to obtain ETH PoW Token.

3. Convert all WETH to ETH

Maybe there will be a DEX on the new ETH PoW chain to support the conversion of WETH PoW Token, but why rely on a newly created and unstable ecosystem? Just convert WETH to ETH before merging, and get ETH PoW Token immediately

4 . Extract liquidity provided for DeFi

Users cannot obtain ETH PoW Token for ETH that provides liquidity for any protocol. I will withdraw liquidity now and provide it again after the merger. And as more people do, there may be a liquidity crunch in DeFi protocols.

5. Borrow ETH from Aave/Compound

Users can get ETH PoW airdrops corresponding to any ETH held during the snapshot period, that is, they can borrow as much ETH as possible. Combined with a possible liquidity crunch in Step 4 DeFi protocols, I expect ETH utilization to approach 100%. Current snapshot of Aave and Compound:

6. Monitor the stETH / ETH market

As the merger approaches, you can try to buy or sell stETH, anticipating the actions of others in the market. Some people are expected to sell stETH for ETH for PoW airdrops. Therefore, once the selling force is strong, you can smoothly buy low-priced stETH. StETH price curve in the past 30 days:

7. Buy expectations, sell facts

Maybe speculating on ETH PoW is not worthwhile for you. Currently, the market price of ETH PoW IOU is about 2.8% of ETH. I think ETH may see buying in the hours after the consolidation and be sold off immediately afterwards. You can choose to ambush in advance and take profits first.

We have about 10 days to do the merge, and many markets and protocols can become unstable, confusing and complex, especially in the hours before/after the merge. There may be one or more ETH PoW forks. I flipped through an old crypto report from 2017 on Bitcoin forks, and history bears it out.

Are we going to see another dozen or so ETH PoW forks pop up? who knows! But I know for the most part, I am only eligible for all these forked tokens if I hold ETH in my non-custodial wallet. That doesn't mean I'm asking for all airdrops, as some may be scams trying to get my signature/key.

My strategy with these forked tokens is to sell them all at once: almost all forked tokens eventually die, Because they were created just to keep miners temporarily busy mining and have no incentive to grow their communities and ecology. There are several strategies you can adopt for an upcoming merge. I'm sure I missed some other interesting strategies as well.

Of course it goes without saying that everything I've said above is NOT financial advice, do your own research!

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