Teleport between ETH 1 and ETH 2.0 with stalked ETH pool

January 6, 2021

KaylaTurner
33

Ethereum 2.0 and stalked pool

There are great expectations for the new Ethereum 2.0. The expected launch of Ethereum 2.0 will happen very soon. Also, the up-gradation will happen from the existing Ethereum network to the new Ethereum 2.0. The new ETH 2.0 comes with a lot of hope and promise. It will reduce network congestion. It will also come at a lesser cost. But there is a small problem here. Before the ETH 2.0 launch, the users have to lock or stake their ETH tokens in a smart contract. The use or movement of these tokens will not possible till the up-gradation is complete.

Curve Finance launched a new innovation. This technology will be helpful, during the up-gradation from ETH 1 to ETH 2.0. It will be easy for the users to support both the networks during the upgrade. Till now, the amount stalked in Ethereum 2.0 is tokens worth $2 Billion.

The process

The process starts with Lido’s stalking service. It got launched in October. With this service, the users will stake the ETH tokens and will receive stETH tokens. stETH tokens will be an asset of equal value as the ETH tokens. In this way, the users will stake the ETH tokens and as well as use them.

Lido got funding in December. It was able to raise $2 million. In addition, it got funding from venture capital firms. It also got help from Defi investors. Stani Kulechov of Aave lending protocol also funded Lido. Kain Warwick of the derivatives protocol Synthetix also supported Lido.

The problem

stETH tokens are the same in value as ETH tokens. However, all the protocols are not designed in a way to handle the new stETH tokens. So, the stETH holders will not be able to utilize all the finance applications in the same way as Ethereum. Few automated financial protocols will not support stETH tokens. these are issuing loans, swap between digital assets, and gaining interest on deposits.

The possible solution

Curve Finance is famous for its cost-effective swap technology. It helps the users to swap between digital currencies and other assets seamlessly. Recently, Curve Finance announced the launch of a new trading pool. This pool will support the swap between native ETH tokens and stETH tokens. Due to this, the users will be able to swap between the ethereum tokens with the least cost. So, the stETH holders can utilize all the finance applications in Defi. They will also be able to stake the ETH tokens for the upgrade to ETH 2.0 version.

This new Curve pool is an important part of the Ethereum development. All people interested in the development of the Ethereum blockchain will welcome this step. This will provide the users to utilize the tokens in both ways. The users can stake the tokens till the upgrade. Also, in the meantime, they will be using the tokens for all Defi applications. This is definitely a remarkable step in the crypto world. This technology will ensure the users to trust in the development of cryptocurrencies.

Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.

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