The transition date to Ethereum 2.0 was officially announced by Ethereum co-founder Vitalik Buterin recently. If everything goes as planned and the sufficient stake rate is reached, it is planned to move to Phase 0 on December 1, 2020. However, the fact that only a small amount of ETH has been staked so far seems to have necessitated a significant change. Ethereum developers are also planning to solve the problem with so little ETH staking with LiquidStake, and the first announcement was made on this issue.
Announced today, LiquidStake seems to solve the problem of investors staying locked in ETH funds for a long time. What exactly is LiquidStake, which is stated to be implemented by DARMA Capital, and why did the price of ETH suddenly rise above $ 470?
What is LiquidStake?
Users who invest their funds in the Ethereum network by staking will be able to receive USDC-based loans and benefit from the staking reward provided by the network, thanks to LiquidStake. Normally, investors would not have access to the funds they have deposited for the Ethereum 2.0 network until all phases of Ethereum 2.0 have been completed. On December 1, only the transition to Phase 0 is expected, followed by Phase 1 and Phase 2. This caused investors to avoid sending their ETHs under lockdown for 2 years for some reason. LiquidStake, on the other hand, seems to address this concern of users to some extent with USDC-based loans.
$ 50 million could change the fate of Ethereum 2.0
Founded by Andrew Keys and James Slazas, former fixtures of the Ethereum development studio ConsenSys, DARMA will also invest $ 50 million in ETH for Ethereum 2.0.
"Andrew Keys and James Slazas of DARMA Capital will allocate more than $50 million worth of ETH to the contract deposit address for staking."
If/when this happens we go from 10% of the way to the required threshold for Phase 0 to something like 35%https://t.co/fuGcpnnGfz
— Steven (@Dogetoshi) November 11, 2020
Steven, the well-known name of the crypto money industry, emphasized that even only a $ 50 million fund investment can increase the amount of funds required for the transition to Ethereum 2.0 to 35%. According to Beaconcha.in data, only 10.71% of the funds required for Ethereum 2.0 have been completed, according to press time.
Especially after the trouble with Infura and the Ethereum network today, such good news may sound like a medicine to the community.