What will happen after the ETH hard fork? What should we do about it?

Industry News 1years go (2022) Dexnav


What will happen after the ETH hard fork? What should we do about it?


What will happen after the ETH hard fork? What should we do about it?


Recent information aboutEtherThe hard fork stand is intensifying, and after the merger, a hard fork of Ether will be inevitable. If a hard fork occurs in Ether, as an ETH holder/investor, you may want to.

Maximize on-chain ETH (exit from centralized exchanges)

  • Apply for an ETH loan
  • Selling all PoW assets for ETHPoW
  • Have a ready-to-use account on the exchange to support the forked chain
  • How exactly will the Ether hard fork end up?

If you knowBitcoinBifurcationBCH/BTG, may have a bottom in mind. At the time, BCH and BTG were probably the first free airdrops. Now, the prices of these two bitcoin forks are as follows.

Bitcoin Cash (BCH) - Market cap: $2 billion. Price: $140

Bitcoin Gold (BTG) - Market cap: $5 million. Price: $30

And the price of Bitcoin (BTC) is now: $24,000

The supply of BCH, BTG, and BTC is the same, all 21 million. Imagine how you support an ethereum hard fork, would it be the same way? Let's take a closer look at the projection below.

What will happen after the ETH hard fork? What should we do about it?

BCH Price Chart

When the Ether merger happens and ETH transitions to POS, there will be two chains: POW and POS.

Miners try to get the last value before they sell the hardware: the

They will work to keep the POW Ether running, effectively hard forking the Ether blockchain.

After the hard fork, everything you previously owned on the Etherchain will be in the new POS chain, as well as in the existing POW chain: the

  • NFT and assets in the wallet
  • Mobility provided (e.g. Uniswap)
  • Lending (Aave, Compound positions)

Yes, your on-chain assets will be duplicated.

When this happens, some things will cause serious damage, especially in DeFi. For example, there will be 20,000 CryptoPunks and BAYC, 2 UNI, 2 ETH, 2 wBTC, and 2 USDC.

USDC is currently pegged 1:1 to the U.S. dollar and has a market value of $54 billion.

After the Ether hard fork, the two chains will have a total of $108 billion USD in USDC and only $54 billion USD in collateral to back USDC in actual circulation.

Therefore, all USDCs in one of the chains will tend to → 0. Can you imagine which chain it will be?

Users will probably sell everything on the POW chain (USDC, USDT, DeFi tokens, meme coins, NFT) for ETHPoW, which will be the only token with some speculative "value".

This could happen within the first block. gas wars, MEV, bribery, these are bound to happen.

In the first few minutes of the fork, everyone will want ETH PoW. the price may even briefly exceed ETH.

Each person will.

  • Dumping everything they got on ETHPoW
  • Send ETHPoW to any of the supported centralized exchanges
  • Finally, trade other assets, such as ETH.

The result of these actions is most likely to give money to the robot for nothing.

In response to this situation, Twitter user DavidHoffman.eth said, "The application layer of the DeFi workload proof ecosystem will divide by zero. This is going to implode."

So, what should we do to prepare for a hard fork?

The following practices are for readers' reference only and do not constitute any investment advice.

  • Withdraw all ETH from centralized exchanges to on-chain ETH
  • If you hold stETH (one of the fastest selling assets), lend on Aave and then borrow ETH or other assets. Monitor APY closely, it may skyrocket.
  • Don't buy fork coins, it will plummet
  • Study how to connect to the PoW chain after the merger (MetaMaskand other wallets may not be automatically connected)
  • Cancel any of your Opensea bids, as they will be accepted on the PoW chain and your WETHPoW will be withdrawn
  • Remove liquidity from the pool before the merger. You are better off having ETH/USDC in the proof-of-work chain than ETH/USDC positions in PoW UNI-v2.

If you do not do this in advance, you will not be able to remove liquidity in time (because of the large number of bots) and there will be no ETHPoW.

  • Open an account on an exchange that supports ETHPoW so that you can sell ETHPoW immediately after the merger.
  • Lending with ETH (Aave, Compound). If you have other assets, you may want to take out an ETH loan to maximize your ETHPoW

It is easier to sell ETHPoW in the CEX than it is to sell USDCPoW in the DEX. Watch out for APY, it will probably skyrocket.

For me personally, I support POS and decentralization.Greedy miners want to sell ETHPoW to retail investors, don't believe this and buy ETHPoW. I will sell ETHPoW as soon as possible.

Of course, all of this doesn't really matter, the most important thing for me is ETH POS.

The Ether merger will take place in September, and we'll see if the prediction above will happen.


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Copyrights:Dexnav Posted on August 13, 2022 at 10:09 am.
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