Ethereum enters the 2.0 era, can it bring new wealth effects?

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Mining is a major upgrade of Ethereum. The launch date of Ethereum 2.0 is determined as the number of validators pledged exceeds the set value. That is, on December 1, Ethereum will officially enter the 2.0 era. However, Ethereum 2.0 will be implemented in parallel in stages due to high difficulty and other reasons. The most recent one is called “stage 0”.

In other words, this public chain project with a market value second only to Bitcoin, an ultra-high adoption rate, and a strong developer community will likely bring a new wave of wealth effects. It is not too late to seize the opportunity. Understand the beginning of ETH2.0 pledge…

Why participate in ETH2.0 pledge?

Mining 1. What is ETH2.0 pledge

ETH2.0 pledge, we can understand it as an upgrade of the original mining method of Ethereum 1.0, which is the same as Bitcoin. In the past, mining was to buy a mining machine, then connect to the Internet and supply power. But now due to the change of the “consensus mechanism”, the “mining” of ETH2.0 no longer obtains the right to process transactions by comparing computing power as before. Now it only needs to run a program on a networked machine uninterruptedly, and then this The program is responsible for deployment by the system to verify “activities” such as transactions, so that when there are hundreds of thousands or even millions of “nodes”, a large number of transactions can be processed through technical means such as “sharding”.

Of course, no longer competing for computing power, how can we ensure that these “nodes” that are under the control of different people can be honest, stable, and do not do evil? That is pledge. Each node is a unit, and 32 ETH must be deposited as a deposit to be able to run the verification program and obtain the corresponding “reward”. The system ensures the entire network by penalizing dishonest, unstable and even malicious nodes. Most of the nodes operate reliably.

2. The benefits of participating in ETH 2.0 pledge

As the most important part of ETH 2.0, participating in staking and running the validator node client will definitely bring rewards to itself and the network. At present, it has at least the following benefits:

a) Stable income

In order to incentivize more people to participate in ETH 2.0 pledges and achieve a balance of ensuring network security, the current setting is that the fewer the number of pledges, the higher the income, and the return rate ranges from 21.6% to an infinitely close to 4.9%. That is to say, the income is between 4.9% and 21.6%. In the early stage, most people expected that the ETH pledge at stage 0 might maintain a return rate of about 10%.

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In fact, at first glance, this rate of return is not high compared to some current DeFi liquidity. But in fact, the profit is directly proportional to the risk. With the 20% profit of mining with liquidity, you need to consider the risk of impermanence and the security of the principal, and the risk is relatively high. The ETH2.0 pledge contract and program have undergone multiple rounds of audits, and they are very safe, relatively stable, and large in size. Even if the bottom line is 4.9%, it is already very tempting compared to many traditional financial interest rates. Not to mention the interest rate pledged on MakerDao for ETH, so this rate of return is still quite tempting for people who are pursuing steady income.

b) The appreciation of ETH itself

As DeFi continues to prosper, there will be more and more ETH locked-up pledges, and the amount of pledged ETH2.0 will also rise rapidly, market circulation will continue to decrease, and when demand continues to rise, the price of ETH itself will naturally be affected. Push up. “The biggest risk is that we can’t hold it.” We have verified this point countless times on Bitcoin, and participating in staking may be a good way for ordinary people to participate in the ETH wealth feast.

How to participate in ETH2.0 pledge and maximize the income?

Mining Since the validator pledge of Ethereum 2.0 can only be pledged in units of 32 ETH, there can be no more or less, and most users have no technical background, and may not be able to complete the deployment and stable operation of the validator node by themselves. It will inevitably give birth to a huge validator pledge market.

With the continuous disclosure of pledge details, many institutions and developers are already gearing up to enter this field. Therefore, for most people, there is no need to worry about how to deploy validator nodes, just like Bitcoin mining. The cloud computing power is the same. It only needs to provide ETH pledge, and other things are divided into some profits and left to professional people.

1. Common ETH2.0 pledge methods

a) Directly participate in running the verifier node by itself. Simply put, in addition to depositing the pledge 32ETH in steps, you also need to buy a cloud computing server from cloud computing service providers such as AWS, the price is 5-20 US dollars, and then follow the deployment instructions to deploy and run the validator node client . This requires certain technical knowledge and is responsible for ensuring the safety and stability of the operating environment. b) Participate in staking through solutions provided by wallets, trading platforms, staking service DApp projects, etc. through third-party assistance, for the majority of crypto investors who cannot run verification nodes on their own, do not want to bet 32 ​​ETH at a time, and must be able to issue The Tokenization of pledge rights to release liquidity and other needs. These providers provide corresponding solutions. All participants need to do is to choose a suitable solution, then deposit it in Ethereum, and then pay a portion of the proceeds in proportion (the service provider deducts ) As a service fee.

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2. How to maximize revenue

For most people, a solution that maximizes returns while ensuring the safety of funds is the best choice. Sweeping a circle of some ETH2.0 pledge solution providers that have appeared on the market, we have seen that some institutions are already “making profits”. For example, it has just announced that “100,000 ETH will provide 20% annualized The exclusive subsidy of “Whale Exchange” caught our attention:

a) Exclusive 20% annual subsidy On November 25, the Whale Exchange officially announced that from now until December 1st, the Whale Exchange will provide an exclusive 20% annual subsidy for the first 100,000 ETH. To put it simply, the funds pledged to the ETH2.0 deposit contract before the beacon chain goes online on December 1st cannot calculate the income. This part of the gap period is subsidized by the Whale Exchange at a maximum annualized income of 20%. b) Triple income returns are more generous and guaranteed. In fact, most pledge service providers provide similar solutions, but according to the official announcement of the Whale Exchange, in addition to the services provided by everyone, it has an additional two The heavy income, plus the pledge income, has a total of three incomes: pledge income, liquidity mining income, and market-making income. How does triple benefit do it? Tall? It is understood that in addition to providing the pledged income and services that everyone has, the Whale Exchange will also anchor the received ETH pledge funds to issue pledge rights Token: iETH, which is also provided in a few programs to release pledge liquidity Pledged equity tokenization plan (the time required to pledge ETH for running a node is expected to be as long as 1.5-3 years). This iETH Token can be freely traded and transferred. At this time, use the popular social DEX IFSWAP to perform liquidity mining of iETH/ETH, iETH/USDT and other trading pairs to get rewards for IFC Token income and at the same time. Market-making fees. At the same time, IFSWAP can flexibly set the ratio of assets in the liquidity pool. For example, the ratio of iETH/ETH liquidity pool can be set to 80:20, which means that compared with the traditional 50:50 pool, market makers only need to provide 1/4 Matching assets improves the efficiency of asset utilization. Simply put, after the pledged rights are Tokenized, not only can they freely circulate and release liquidity, but they can also get rewarded DEX platform Tokens and enhanced income from handling fees by participating in liquidity mining (similar to participating in the liquidity mining of Uniswap designated trading pairs The mine gets rewarded UNI and market-making fees) to maximize revenue.

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Mining c) Slash penalty (absolutely no loss of principal)

In addition, Whale Exchange also bears the loss of Slash confiscation caused by problems such as unstable operation and service. One thing that many users are very worried about is running a node by themselves or staking through a custodial service provider. If the verification node is unstable due to a machine failure offline and is fined by the Ethereum system, this may be deducted from the escrow ETH pledge income A fee allows users to bear the risks and expenses, and the Whale Exchange directly promises that if there is a penalty, it will be borne by the platform itself, and users can get theoretical benefits without worrying about this risk.

summary

Mining Bitcoin represents blockchain 1.0, Ethereum represents blockchain 2.0, and Ethereum 2.0 is the long-awaited optimal solution for almost all crypto enthusiasts and institutions. Naturally, there is no need for much future prospects. Words. Unlike many projects, Ethereum 2.0 did not happen overnight, but rigorously ensures that all aspects are implemented in stages under the best conditions, so that we have enough time to prepare and participate in a new “wave” and new Go among opportunities.

Fortunately, in the face of various seemingly difficult conditions required for Ethereum 2.0 pledge, “there are always more methods than difficulties”. ETH2.0 pledge solution providers like the Whale Exchange have brought us more, While more stable income and fuller asset utilization rate, it also lowers the threshold and risk. There is no shortage of good choices.