eth2 DeFi and ETH2 Staking

[Whited35 15285]

Ethereum's most ambitious upgrade Ethereum 2.0 is on the way as Phase 0 was launched on Dec 1, 2020. In 2020, It's been seen the extreme craze for DeFi but currently, it is experiencing a cooldown. Ethereum devs say ETH2 is to improve the network architecture to handle a huge number of transactions securing the blockchain and it will be a "boon" for DeFi. 
Now I am more curious to see the upcoming moves of ETH DApp devs to get tuned with ETH2 as they were working for the DeFi applications based on the current Ethereum blockchain network that follows PoW algorithm, can DeFi be the massive threat to ETH2 staking? Expecting your constructive ideas, guys.
 

[huesca123 946]

I really dont understand all that much about the ins & outs of everything that concerns ETH 2.0. I do know that its supposed to speed up the transaction times & make it more safe. I think, that is the reason why ETH has had such a bull rally. ETH just isnt riding the coattails of the BTC bull run, there is a reason why its num. 2 in the listings.

[MrSpasybo 1049]

POW or POS is just a protocol to divide the authority to confirm transactions, it has absolutely no effect on the transaction confirmation process or the operation of Dapps built on Ethereum. So I think everything will still be stable, it is just that we cannot experience the speed of ETH2.0 yet. The Ethereum community in general & DeFi users in particular will need to wait a while longer. But the scheduled release of ETH2.0 on Dec 01 was a 50% success of ETH2.0.

[Ridam 7455]

On 12/4/2020 at 9:41 PM, Whited35 said:

, can DeFi be the massive threat to ETH2 staking? Expecting your constructive ideas, guys.
 

As the consensus model is going to changed to POS, Ethereum will be able to support 1000 tx/s from current 17 tx/s. I like how you you say it will be boon for DeFi. As the craze for De-Fi has been reduced significantly these days, I believe De-Fi will get huge privelage from the new fee model.

And it's matter of questions, until the Eth2.0 fully launches ,De-Fi will sustain or fade like 2017 Ico.

And if the craze remains same untill then , De-Fi will be factors make network congested . I have read that Eip-1559 has fee model to automatically adjusts the fee during the congested network conditions, hope it will be able to handle huge number of tx with lower gas fee. 

Anyway I believe we won't see the spike in gas fee like some months back after Eth2 updates completely and it will save De-Fi from being massive threat to Eth2.0.

[Whited35 15285]

2 hours ago, Ridam said:

De-Fi will be factors make network congested . I have read that Eip-1559 has fee model to automatically adjusts the fee during the congested network conditions, hope it will be able to handle huge number of tx with lower gas fee. 

Transaction cost will be lower and network will be itself handling the huge number of transactions per second. Bigger investors with more than 32ETH will run their own validator nodes to get more benefits but small investors have to depend on staking pool and I think DeFi DApp developers will be also concerned for small retailer users too. I just wish to see its impact. 

[Ridam 7455]

11 hours ago, Whited35 said:

Transaction cost will be lower and network will be itself handling the huge number of transactions per second. Bigger investors with more than 32ETH will run their own validator nodes to get more benefits but small investors have to depend on staking pool and I think DeFi DApp developers will be also concerned for small retailer users too. I just wish to see its impact. 

I found out that the current APY is less at least for me and we have to lock our eth untill eth 2.0 complete update, for me it's pretty long time (unless anyone is wanting for passive income). And talking about pools Rocket Pool, stkr are good. Ankr Blockchain even launch it's own application for eth2.0 staking "stkr". Also Binance launches it's own staking Pool so it seems Eth 2.0 has enough Eth staked for it's security also.

 And Beacon Chain is already live and we have a long journey ahead for Eth2.0 final update completion. So We should wait little bit longer for final impact 😊.

 

[Whited35 15285]

2 hours ago, Ridam said:

I found out that the current APY is less at least for me and we have to lock our eth untill eth 2.0 complete update, for me it's pretty long time (unless anyone is wanting for passive income). And talking about pools Rocket Pool, stkr are good. Ankr Blockchain even launch it's own application for eth2.0 staking "stkr". Also Binance launches it's own staking Pool so it seems Eth 2.0 has enough Eth staked for it's security also.

There is the multi years locking policy for ETH to receive the block rewards. Those who run validator nodes are more likely to get a huge profits for being the part of blockchain. So you say Ankr Blockchain, actually it is just Ankr and not ETH 2.0 , just ETH2 or Ethereum 2.0  😉. Well, so many DApp developers are working into it to get tuned with ETH2 and we might expect the good outcomes. 

[MrSpasybo 1049]

Most of DeFi is built on Ethereum platform, they make Ethereum platform stand out more in the crypto world. ETH owns an extremely large number of users, making DeFi projects more accessible to users.
ETH2.0 with the advantages of high speed & low cost will bring great benefits to all DeFi users. With the speed of hundreds of thousands of tps as we are expecting, we will enjoy a more comfortable DeFi space than ever.

[Whited35 15285]

On 12/11/2020 at 12:57 AM, MrSpasybo said:

ETH2.0 with the advantages of high speed & low cost will bring great benefits to all DeFi users.

Certainly as scalability problem in Ethereum blockchain network leads it to upgrade Ethereum 2.0. Personally I also believe like DeFi space will find Ethereum 2.0 more comfortable than the current one but if you have carefully read my topic, I have clearly mentioned to expect ideas like will ETH2 staking get affected from DeFi ? 

[Whited35 15285]

1 hour ago, Allah ditta said:

Dafi and ETH 2 staking I think I know about ETH but that of defi I have no idea about it I don't even know what it is at all.it is just that we cannot experience the spped of ETH2.But the scheduled release ETH2. May I know more about it plezzzz

Hi @Allah ditta if you have no ideas about DeFi and Ethereum staking, please visit my already created topics. I have also created a topic to make the things clear about DeFi and you might love to check the following topic. 

 

[Aqsa1234 142]

It is general to wait on this site.so those who work they have to wait very much in it . mostly defi iss formed on this platform which is helpful in trading. Most of my friends had tried this and they have really benefited by this one.

[Whited35 15285]

On 1/16/2021 at 6:31 PM, Aqsa1234 said:

It is general to wait on this site.so those who work they have to wait very much in it . mostly defi iss formed on this platform which is helpful in trading. Most of my friends had tried this and they have really benefited by this one.

What to wait on this site? Update about Ethereum 2.0 staking or anything else. I barely understand what do you mean to say here. You can explore more informative topics about DeFi and Ethereum 2.0 staking in the other section on this forum. 

[MrSpasybo 1049]

On 12/13/2020 at 6:56 PM, Whited35 said:

Certainly as scalability problem in Ethereum blockchain network leads it to upgrade Ethereum 2.0. Personally I also believe like DeFi space will find Ethereum 2.0 more comfortable than the current one but if you have carefully read my topic, I have clearly mentioned to expect ideas like will ETH2 staking get affected from DeFi ? 

@Whited35 I have not found any connection between DeFi (which works on liquidity pools) with Staking on ETH2.0.
In DeFi on Ethereum, most people lock crypto/stable coin pairs on DEX protocols to make profit.
For staking ETH, holders lock their ETH in order to receive profits from the block reward & transaction fees.
If we count to the end, I think a portion of ETH will go into DEXs to serve DeFi with high profits instead of going into the staking pools of Ethereum.

 

So my answer is YES, but not much!

[Whited35 15285]

8 hours ago, MrSpasybo said:

If we count to the end, I think a portion of ETH will go into DEXs to serve DeFi with high profits instead of going into the staking pools of Ethereum.

Perfect ! You have made the points here. I was expecting the constructive feedbacks like this 😉. Basefee burning features in Ethereum 2.0 can also inspire some investors to go for DeFi. So your balanced thoughts for both Ethereum 2.0 staking and DeFi does make the sense here. So we can just wait to see, how DApp developers will get tuned with the hybrid system of ETH 2.0 ! 

[MrSpasybo 1049]

On 3/13/2021 at 8:25 AM, Whited35 said:

Perfect ! You have made the points here. I was expecting the constructive feedbacks like this 😉. Basefee burning features in Ethereum 2.0 can also inspire some investors to go for DeFi. So your balanced thoughts for both Ethereum 2.0 staking and DeFi does make the sense here. So we can just wait to see, how DApp developers will get tuned with the hybrid system of ETH 2.0 ! 

@Whited35 Together we look at this in detail.
APY on Uniswap ranges from 3% -27%.
APY from ETH2.0 staking is 8-9%
Thus, ETH from liquidity pools with APY lower than 9% will tend to move into pools with higher APY & ETH2.0 staking.
In contrast, ETH from staking tends to move into pools with high APY.
However, the problem is not so simple. Stakers & LP investors also expect an increase in the price of both ETH and other tokens. Thus, it can be seen that ETH movement is very slow.
At the same time when ETH2.0 is completed, the DeFi wave has reduced heat, I believe APY will also decrease and not put pressure on ETH staking.

[Whited35 15285]

8 hours ago, MrSpasybo said:

At the same time when ETH2.0 is completed, the DeFi wave has reduced heat, I believe APY will also decrease and not put pressure on ETH staking.

DeFi space is at the cooldown phase and there are multiple reasons. I am also seeking the core turning points if ETH 2.0 staking has impacted on it but as you said, yes a little bit influence is there. Majorly, once Ethereum blockchain gets upgraded, we can see how it impacts the DeFi sector as it is expected to get boomed. 

[MrSpasybo 1049]

On 3/28/2021 at 8:13 AM, Whited35 said:

DeFi space is at the cooldown phase and there are multiple reasons. I am also seeking the core turning points if ETH 2.0 staking has impacted on it but as you said, yes a little bit influence is there. Majorly, once Ethereum blockchain gets upgraded, we can see how it impacts the DeFi sector as it is expected to get boomed. 

@Whited35 

It is true that when ETH2.0 is released, DeFi will explode, but it will not only be DeFi profiting from LP, it will be P2P peer-to-peer lending platforms, investment and sponsorship platforms...
DeFi LP will still exist on DEXs but when everyone wants to lock the ABC123/ETH pair, the size of the pool will be very large while the transaction volume is limited, the APY profit will decrease.
The more transactions there are, the more ETH is burned thanks to EIP-1559, the ETH price will be pushed up, the holders & stakers will receive higher profit than those who sold half of the ETH to take ABC123 tokens to lock in the LP.

It is easy to see that the Ethereum ecosystem remains in balance even though the flow of money within it is enormous.
Currently there are many investors willing to lock their ETH into staking that cannot be withdrawn, their vision of the future of ETH price is very far away. Ethereum development team will also act to protect this ecosystem, so the community can rest assured.

[Whited35 15285]

7 hours ago, MrSpasybo said:

Currently there are many investors willing to lock their ETH into staking that cannot be withdrawn, their vision of the future of ETH price is very far away. Ethereum development team will also act to protect this ecosystem, so the community can rest assured.

Multi years locking of ETH is looking impressive and it will prevent the most dangerous problem i.e. nothing-at-stake problem and eventually the locked ETH make the ETH 2.0 more secure and powerful. Smart contracts burn the basefee that means ETH will become more powerful to prevent malicious validators to abuse the system. Everything is looking impressive and staking ETH craze will be still there IMHO. 

DeFi space is attempting to grow up and as you have mentioned about the DeFi LP, despite the decreasing APY according to the increasing delegators, those who are willing to enjoy at the staking rewards might still prefer that way. 

[Fiyyaz7711 51]

On 12/4/2020 at 9:15 PM, huesca123 said:

I really dont understand all that much about the ins & outs of everything that concerns ETH 2.0. I do know that its supposed to speed up the transaction times & make it more safe. I think, that is the reason why ETH has had such a bull rally. ETH just isnt riding the coattails of the BTC bull run, there is a reason why its num. 2 in the listings.

I think both Defi and ETH 2.0. are many members using and getting easier earnings platforms. It's best and marvelous idea that BTC coin speedy with the time getting more transaction.

[Oksana Ksyusha 272]

Now there is next version of Ethereum V3. So it is excellent that creators develop the software. It will make more safety and transactions will be quicker also.

[Whited35 15285]

1 hour ago, Oksana Ksyusha said:

Now there is next version of Ethereum V3. So it is excellent that creators develop the software. It will make more safety and transactions will be quicker also.

Actually, it is Ethereum 2.0 and Ethereum's Beacon chain already has a huge amounts of locked ETH that has given us the hope for brighter future of ETH 2.0! Let's see what happens next and what would it do with the ETH 2.0 staking and DeFi. DeFi is still the hottest trend to go and it's still at the experimental phase. 

[XcelToken Plus 7]

Staking is risky as well, complete with different trade-offs from DeFi. Not only can your initial deposit be slashed for failing to keep up with the network, but hidden software risks still exist.

Each Eth 2.0 validator has to choose its own specification to work with from five different teams that programmed Eth 2.0 in various languages. Those specifications could have exploitable flaws, regardless of how smoothly testing went throughout the second half of 2020. That’s one reason staking rewards are set so high by developers.