The team behind a proposed fork of the ether ETH/USD Blockchain, to maintain its Proof-of-Work (PoW) mining consensus, has advised users to withdraw their ETH from DeFi protocols and decentralized exchanges (DEXes).
What happened: In a series of tweets on Tuesday, the EthereumPoW ETHW/USD The core team said it is introducing liquidity pool freezing technology to protect user funds.
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to return users’ assets.
The freeze will not be applied to staking contracts that affect only a single asset (e.g. ETH2.0 deposit contract and Wrapped Ether).
— EthereumPoW (ETHW) Official #ETHW #ETHPoW (@EthereumPoW) August 16, 2022
For context, a group of miners and ETH community members have proposed another hard fork of the ETH blockchain post-merger on September 15th, taking ETH from Proof-of-Work to Proof-of-Stake (PoS) consensus mechanism would shift .
See also: PROOF OF Stake VS PROOF OF WORK
The ETHW core team said that the hard fork would likely result in the loss of several ETHW tokens deposited in liquidity pools such as Uniswap UNI/USD, SushiSwap SUSHI/USD, Spirit AAVE/USD and connection COMP/USD.
The ETHW tokens would likely be “swapped or lent out by hackers and scientists,” the team said, adding that it would “create huge chaos for the entire network and community.”
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Last but not least, ETHW Core recommends everyone to withdraw their ETH from LPs (e.g. DEX and Lending Protocol) before hard forking.
— EthereumPoW (ETHW) Official #ETHW #ETHPoW (@EthereumPoW) August 16, 2022
As such, the team said it would “temporarily freeze” certain LP contracts, aiming to protect crypto assets deposited by users.
“Last but not least, ETHW Core recommends everyone to withdraw their ETH from LPs (e.g. DEX and Lending Protocol) before hard forking,” they said.
See Also: Controversial Ethereum Fork Token ETHW Tanks 50% In IOU Market
Price promotion: At press time, ETHW is trading at $63.94 on the IOU markets, down 4.86% in 24 hours. ETH traded at $1,885, down 0.86% over the same period.
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