Eht2.0 under the tide of the times, ETH fund creates a new era

Introduction: the main motivation of Ethereum to launch eth2.0 is scalability.As a matter of fact, Ethereum network has been very popular since it was launched. The transaction volume on the network has increased significantly. We can see one or two things from the recent breakthrough of Ethereum currency price of 600usd.In order for this growth to continue, all node operators and consensus agents (whether POW or POS) need to run ever more powerful computers (which also means more expensive costs).This will eventually lead to more and more centralization, which may reduce the anti censorship characteristics of the system, and eventually make the network meaningless if it continues.In this regard, Ethereum adopts sharding to solve the dilemma.

According to eth2 block browserbeaconcha.inData: at present, the amount of money received by the Ethereum 2.0 deposit contract address has reached the minimum requirement for the startup of Genesis block according to the balance of Ethereum 2.0 deposit contract, and the genesis block has been started.In the process of promoting the eth2.0 period, many teams are trying to implement the early work, and the eth2.0 designers temporarily plan to include slicing, Casper, state rent and ewasm VM.For investors, it seems that they need to cross the threshold to participate in early investment.

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Blockchain 2.0 investment threshold

Eth2.0 will change from the previous POW mining mechanism to the POS mining mechanism, that is to say, in the past, when Ethereum 2.0 was transformed into POS mechanism, it was necessary to purchase physical mining machines or search for mines. After Ethereum 2.0 was transformed into POS mechanism, ETH could be directly pledged for mining.However, the investment of Ethereum 2.0 has more stringent requirements. First of all, the minimum pledge amount required by the official requirements can only become a qualified node after reaching 32 Ethereum. According to the current price estimation, the minimum threshold is up to RMB 100000, which is not friendly for small and medium-sized investors.

Secondly, there is a certain technical threshold to become an eth2.0 network node. If the node is attacked, the node is not online, the network infrastructure is paralyzed, and the node does evil, the reward may be forfeited, and even the pledge token will be deducted. This is one of the major reasons why many users can not participate in the pledge of eth2.0.

When the Ethereum 2.0 deposit contract is launched, most of the participants are the early participants of the technical team or Ethereum ecology.The ETH 2.0 team reported a return rate of 21.6%, which is far higher than most current defi agreements. Numerous investors have shown great desire to invest in Ethereum 2.0, but they are unable to reach the investment threshold.To solve this problem, the third-party market represented by eht fund puts forward a new solution.

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Eth fund becomes the best choice for investors

Eth fund, initiated by the Ethereum foundation, is the best solution for the third market of Ethereum 2.0.Relying on decentralized smart contract, ETH fund reduces the participation threshold of Ethereum 2.0. By establishing smart contract in etherum network and taking DAPP as the carrier of constant financial protocol, ETH fund has established a completely decentralized, fair and just platform.Users do not need to limit the minimum threshold of 32 ethereums, and they can choose 1 to 50 ethereums according to their actual situation.At the same time, the ETH fund smart contract network is strongly supported by many technical communities, and the network nodes are stable and jointly maintained by members of the global ecological network.

The Ethereum foundation has invested 3000 Ethereum into smart contracts in the first phase. As a reward for early ecological promoters, the biggest reason for the establishment of eth fund is to enable the majority of Ethereum ecological participants to participate in and enjoy the early reform dividend of Ethereum 2.0 development, instead of being limited by many barriers and sighing.

The battle between eth fund and uniswap

2018Uniswap was born in November, 2004. This work from Siemens mechanical engineers did not receive much attention in the early stage.Until September 2020, the wave of defi broke out in one fell swoop. In order to repay support users, the uni airdrop worth hundreds of millions of dollars directly pushed it to a new height.

We found that the ecological development planning of EHT fund can be divided into three stages

The first stage: the ecological promotion stage of Ethereum 2.0. In this stage, the value return smart contract agreement of EHT fund is adopted. Due to its fully open and decentralized characteristics, all data are publicly available on the chain, and there is no risk of network shutdown of centralized platform. In eth fund transactions, only one public key is needed, which avoids KYC and AML problems, and greatly protects the privacy of usersThere is no single point cut in or single point of failure in fund, so the ecological security and stability of the whole chain; its original sharing return mechanism stipulates that each value asset enters into the ecology, and 0.8% of eth will be used as the reward for 100 users participating in the terminal, which ensures the continuous income of each participant, and will receive a large number of loyal Ethereum supporters for continuous attention and participation.

The second stage: the foundation stage of platform currency value, ETH fund will air drop according to the contribution value of Ethereum 2.0 ecological participants. The greater the contribution value, the more airdrops will be obtainedFund, as a decentralized trading platform, will be launched into Dao community autonomy system. Users will vote to determine the process development of platform currency, open liquidity mining, decentralized financial reception, DEX and other one-stop services.

The third stage: the establishment of decentralized exchange and the explosion of uniswap make blockchain investors and practitioners pay attention to DEX, a new trading platform.It can be said that the establishment of eth fund decentralized trading platform is inevitable.As a DEX platform, it does not store the user’s funds and personal data on the server, but only serves as the infrastructure to match the two sides of the transaction. With the help of the matching engine, the transaction is carried out directly between the participants (point-to-point).This means that eht fund does not control user assets, which is the biggest difference between eht fund and centralized exchange. Funds are usually stored by users or trading software itself in a decentralized way, which greatly reduces the capital risk of trading users.

In the above development stage planning, we found that the development track of eth fund seems to be similar to uniswap.But from the core logic of decentralised exchanges, we find a huge difference between the two.

The biggest feature of uniswap is the constant product market maker model.The algorithm of this model was first published by vitalik, founder of eth: “improving front running resistance of X * y = k market makers”.

The formula of constant product market maker model is very simple: X * y = K.Let the two virtual currencies of the transaction be x and y, and their respective quantities are x and y. The product of the two currencies' quantity x * y is equal to K. The value of K is determined by the liquidity of the first injection.Therefore, the amount of △ y that can be obtained by purchasing y currency with X currency of △ x quantity, or the △ x quantity that needs to be paid in order to purchase △ y, is calculated according to this formula: (x + {x) (Y – {y) = k, and the transaction price is the ratio of two currency quantity} X and} y.

In short, the token price on uniswap is determined by the magnitude change of the liquidity pool and token pool. With the increase of eth in the liquidity pool, the number of tokens decreases and the currency price rises. This algorithm seems fair, but the biggest drawback is that this mechanism has become a catalyst for shortening the period of online projects on the platform and accelerating the death.

Eth fund adopts a completely different market maker model. In eth fund, the constant k is set and the constant mechanism of X / y = k is adopted, where X represents the price of currency and Y represents the quantity of currency. At this time, the price and quantity of currency are in direct proportion.This means that the price of the currency has risen, and the number of coins in the hands of users has become more and more, and vice versa.This mechanism ensures that the online tokens in the ETH fund decentralized platform can get very large growth space, and users can achieve a virtuous cycle of double increase by holding online tokens.It can be said that the emergence of EHT fund decentralized trading platform redefines the entire DEX ecology.

In the past two years, the total transaction volume of uniswap has exceeded 20 billion US dollars, and the liquidity providers have earned 56 million US dollars in handling fees. As of October, the liquidity has exceeded 1 billion US dollars. Uniswap issued its platform currency uni and airdropped it to its users. The value of the airdrop funds exceeded 500 million US dollars.As the platform supported by Ethereum supporters, ETH fund has the most potential to compete with it. Under the condition that a large number of users are supported by Ethereum 2.0, the future impact will be 100 billion level transaction volume, which also means that the platform token airdrop reward that eth fund plans to give back to users is expected to exceed $1 billion.

The tide of the times is rolling forward, none of us can avoid falling into it.Whether this wave of eth2.0 is knocked out by the influx of waves or become an early participant to grasp the dividend of the times is what we all need to think about.The emergence of eth fund makes it possible for each of us to board the early train of eth2.0 to share dividends.I firmly believe that eth fund will become a black horse in the development process of eth2.0. It can even be expected that the market maker strategy chosen by eth fund is a solid foundation for it to become the largest decentralized trading platform in the world.

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