ConsenSys expects DeFi providers and protocols to be fair enough and provide liquid tokens that resonate with the ETH value that an investor stakes.According to ConsenSys‘s latest Q3 DeFi report, the surge of DeFi and its high yielding liquidity provision opportunities could, in the future, be a barrier to participants who want to stake as soon as ETH 2.0 Phase 0 is unveiled. Better earning opportunities that are found on decentralized finance protocols may limit staking on Beacon Chain, Ethereum’s forthcoming project. Beacon Chain launch could take place within the next six to eight weeks since the ETH 2.0 deposit contract launch is almost near, according to Ben Edgington, developer of ConsenSys.Your newest news in #Ethereum 2.0 is here! https://t.co/97X85jdCzMSorry it's a bit late, and a
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ConsenSys expects DeFi providers and protocols to be fair enough and provide liquid tokens that resonate with the ETH value that an investor stakes.
According to ConsenSys‘s latest Q3 DeFi report, the surge of DeFi and its high yielding liquidity provision opportunities could, in the future, be a barrier to participants who want to stake as soon as ETH 2.0 Phase 0 is unveiled. Better earning opportunities that are found on decentralized finance protocols may limit staking on Beacon Chain, Ethereum’s forthcoming project. Beacon Chain launch could take place within the next six to eight weeks since the ETH 2.0 deposit contract launch is almost near, according to Ben Edgington, developer of ConsenSys.
Your newest news in #Ethereum 2.0 is here! https://t.co/97X85jdCzM
Sorry it's a bit late, and a bit rushed. I took some time off; it was nice ?
Back now, refreshed and raring to go ?
— Ben Edgington ⟠ benjaminion.eth (@benjaminion_xyz) October 18, 2020
ETH Holders Should Get Better Staking than DeFi Returns
Last week, Edgington revealed the Ethereum 2.0’s deposit contract address feature is the last “missing link” needed to enable participants to send ETH between both Ethereum and ETH 2.0. Through the new proof-of-stake consensus mechanism, holders of more than 31 ETH will benefit from various staking opportunities, but scaling improvements would not come that soon.
ETH holders will, for a currently unspecified period, have to lock up their funds in a deposit contract in order to gain a variable return – and that is where the challenge arises. DeFi protocols competing to give Ethereum holders greater returns for liquidity are on the increase. As a result, ETH 2.0 would be denied from reaching the staked ETH threshold required for rendering it sufficiently decentralized and secure.
The report warned as follows:
“It is not unreasonable to worry that ETH holders would (at best) wait to see how early staking returns compare to DeFi returns, or (at worst) decide altogether not to ‘risk’ locking up ETH until Phase 1.5 (which is likely at least a year away) in case another similar bull run occurs in the meantime.
ConsenSys expects DeFi providers and protocols to be fair enough and provide liquid tokens that resonate with the ETH value that an investor stakes. The token might be easily presented or be redeemable as collateral for other protocols leaving the ETH staked on Beacon Chain to remain locked away for some time.
On Sunday, ConsenSys Codefi, a firm that facilitates tokenization and trading, DeFi products, said that it plans to collaborate with Protocol Labs to unveil a Filecoin DeFi Bridge and Storage Market to enable cheaper and faster storage of data.
Ethereum 2.0 Launch Eminent despite Testnet Woes
As Ethereum upgrades a proof of stake (PoS) consensus mechanism and further solves the network’s scalability, deployment of ETH 2.0’s “Phase 0” will need 500,000 ETH deposited for the users to run more than 16,000 validators. ETH’s new release is expected to shield the platform from denial-of-service attacks, curb temporary penalty fees from quadrupling, and implement the genesis delay.
In August 2020, after its launch, the Medalla testnet suffered from very low participation since people were already bored of testnets as per Edgington. On the client front, the testing seemed somewhat one-sided as Prysm Ethereum 2.0 client dominated over other projects like Teku, Nimbus, and Lighthouse. Spadina test network in September also faced a “slightly bumpy” dress rehearsal time at its genesis.
All is not lost, since last week, Zinken testnet conducted a successful trial, which Anthony Sassano – Co-Founder of Etherhub & Product marketing manager for SetProtocol – stated that was the second last dress rehearsal testnet before the platform settles on a date for the ETH 2.0 phase 0 mainnet launch.
James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then. An author with experience writing for tech, digital, and cryptocurrency blogs!