Ethereum 2.0’s ‘Lock Up’ Will Drive DeFi Innovation

[kolbalish]

ETH 2.0 bonds
The locked ether presents a contract that promises a set of contingent future cash flows, with properties akin to certain types of bonds. In fact, that is what DeFi-ers will create: tokenized ETH 2.0 bonds.

By transferring a token created by a fully collateralized smart contract to a creditor, validators can receive funds in unlocked original ether and, in return, promise that when the blockchain merger happens and the lockup ends, the creditor will automatically receive the original 32 ETH plus the accumulated staking rewards.

Based on staking reward projections built into the system’s monetary supply, these “bonds” would earn a 20% yield on an annualized basis and then fall according to a sliding scale, as the total amount of staked grows.

What’s not known is the precise date at which the funds will be unlocked or the value of the ether in dollar terms at that time. Both are somewhat dependent on how well and how efficiently Ethereum developers progress toward the goal of a full integrated Ethereum 2.0 transition. But they are also dependent on whether, all things considered, the broader Ethereum community thinks the migration to the new proof-of-stake system is worth it.

What we could see, then, is the market prices for tokenized locked ETH bonds becoming, in effect, an assessment of how well these pieces are coming together. Whether this creates a positive feedback loop that gives developers a real-time sentiment signal to help them gauge whether the market thinks they are on target to achieve their goals, or whether it creates misaligned incentives to rush through upgrades that aren’t yet ready, remains to be seen.

WHAT WE COULD SEE, THEN, IS THE MARKET PRICES FOR TOKENIZED LOCKED ETH BONDS BECOMING, IN EFFECT, AN ASSESSMENT OF HOW WELL THESE PIECES ARE COMING TOGETHER.

I just highlight a part of this article and the rest is here. Just go through the link below-- https://www.coindesk.com/ethereum-2-lockup-defi-innovation?amp=1

[blockman]

People will be more encouraged to locked up Ethereum and trust it more than any other new Defi projects. We're all waiting for it and I think if I'll ever be eligible to stake with the remaining Ethereum that I've got, I'd be more than happy to stake it.
Being part of the network confirmation and earn at the same time by doing nothing is one of the best source. It wouldn't be that much profit I think but it's a legit crypto that we'll be earning once this ha happened.

[Twinkledoe]

People will be more encouraged to locked up Ethereum and trust it more than any other new Defi projects. We're all waiting for it and I think if I'll ever be eligible to stake with the remaining Ethereum that I've got, I'd be more than happy to stake it.
Being part of the network confirmation and earn at the same time by doing nothing is one of the best source. It wouldn't be that much profit I think but it's a legit crypto that we'll be earning once this ha happened.

That is one advantage of eth platform, the credibility they have, so crypto users are trusting their network with their funds. And I guess, I am with that mindset. Better trust a known platform with solid dev team rather than new one trying to impress the crypto community. As many platforms are trying to imitate the success of eth, and yet nobody come close to their popularity of usage. I have high hopes with eth 2.0 as well and I bet many others do.

[blockman]

People will be more encouraged to locked up Ethereum and trust it more than any other new Defi projects. We're all waiting for it and I think if I'll ever be eligible to stake with the remaining Ethereum that I've got, I'd be more than happy to stake it.
Being part of the network confirmation and earn at the same time by doing nothing is one of the best source. It wouldn't be that much profit I think but it's a legit crypto that we'll be earning once this ha happened.

That is one advantage of eth platform, the credibility they have, so crypto users are trusting their network with their funds. And I guess, I am with that mindset. Better trust a known platform with solid dev team rather than new one trying to impress the crypto community. As many platforms are trying to imitate the success of eth, and yet nobody come close to their popularity of usage. I have high hopes with eth 2.0 as well and I bet many others do.

It is one of the most awaited event and people do trust Ethereum than any other staking token. The rewards that ETH can give is fairly sure and there's no other altcoin that can par with the trust that it's giving to the community. When everybody have heard about the news of Ethereum 2.0. The questions were quickly raised about how much would be the minimum staking for someone to be eligible to join and get the reward. Until we see the progress and actual application of ETH 2.0, we have to wait.

[Tipstar]

People will be more encouraged to locked up Ethereum and trust it more than any other new Defi projects. We're all waiting for it and I think if I'll ever be eligible to stake with the remaining Ethereum that I've got, I'd be more than happy to stake it.
Being part of the network confirmation and earn at the same time by doing nothing is one of the best source. It wouldn't be that much profit I think but it's a legit crypto that we'll be earning once this ha happened.

That is one advantage of eth platform, the credibility they have, so crypto users are trusting their network with their funds. And I guess, I am with that mindset. Better trust a known platform with solid dev team rather than new one trying to impress the crypto community. As many platforms are trying to imitate the success of eth, and yet nobody come close to their popularity of usage. I have high hopes with eth 2.0 as well and I bet many others do.

It is one of the most awaited event and people do trust Ethereum than any other staking token. The rewards that ETH can give is fairly sure and there's no other altcoin that can par with the trust that it's giving to the community. When everybody have heard about the news of Ethereum 2.0. The questions were quickly raised about how much would be the minimum staking for someone to be eligible to join and get the reward. Until we see the progress and actual application of ETH 2.0, we have to wait.

Ethereum is surely an established and tested platform. It's the second name people hear after bitcoin. With the smart contracts and sidechain support, the use of the network are unlimited. With controlled supply and faster execution, Ethereum and Ethereum network would be worth much useful when the next upgrade of Ethereum comes. I'm really bullish about the future of Ethereum and though it has decreased a lot against bitcoin in last couple of days, I'm still holding it as such.

[Gozie51]

People will be more encouraged to locked up Ethereum and trust it more than any other new Defi projects. We're all waiting for it and I think if I'll ever be eligible to stake with the remaining Ethereum that I've got, I'd be more than happy to stake it.
Being part of the network confirmation and earn at the same time by doing nothing is one of the best source. It wouldn't be that much profit I think but it's a legit crypto that we'll be earning once this ha happened.

That is one advantage of eth platform, the credibility they have, so crypto users are trusting their network with their funds. And I guess, I am with that mindset. Better trust a known platform with solid dev team rather than new one trying to impress the crypto community. As many platforms are trying to imitate the success of eth, and yet nobody come close to their popularity of usage. I have high hopes with eth 2.0 as well and I bet many others do.

The 2.0 is a big support for etheruem platform. Etheruem itself is highly trusted coin just after bitcoin. So that is a sure coin that is expected to also grow and lead the DeFi way. DeFi is a new hyped project and this expected increase will not leave etheruem alone as the platform keeps going.

[Igor17Krik]

I will be happy to block my ETH and become a blockchain validator. We are all looking forward to the implementation of Ethereum 2.0. I'm sure this will be another victory for the Ethereum team.

[BayAngelo]

Ethereum faces a huge campaign from platforms that offers smart contract services. Although ethereum stands to be the leading platform when it comes to OFFERING smart contract services, there are so many alternatives offered by NEO, EOS, tron and solana with high speed transaction services. this have affected ethereum market cap

[blockman]

It is one of the most awaited event and people do trust Ethereum than any other staking token. The rewards that ETH can give is fairly sure and there's no other altcoin that can par with the trust that it's giving to the community. When everybody have heard about the news of Ethereum 2.0. The questions were quickly raised about how much would be the minimum staking for someone to be eligible to join and get the reward. Until we see the progress and actual application of ETH 2.0, we have to wait.

Ethereum is surely an established and tested platform. It's the second name people hear after bitcoin. With the smart contracts and sidechain support, the use of the network are unlimited. With controlled supply and faster execution, Ethereum and Ethereum network would be worth much useful when the next upgrade of Ethereum comes. I'm really bullish about the future of Ethereum and though it has decreased a lot against bitcoin in last couple of days, I'm still holding it as such.

The control and limit to its supply will only happen once Ethereum 2.0 has started. But as long as it hasn't started yet, the supply is caught to be unlimited and that's what making others worry about it before. Now that it has been found a solution, everyone has to be patient although it's taking a long time for tests and results but we can do nothing about it. We all have to wait until everything has been set and done by the ETH devs. So before the staking happens, make sure that you have enough to be part of it and I'm also holding mine.

[Yaunfitda]

I don't think that we need to wait as we have seen the there are big amounts of ETH already locked up in anticipation of ETH 2.0 and it is still growing. But as far as driving innovation? I don't know, it will just drive the gas fees, but will attract more investors to the crypto sphere, it might not mean adoption though. However, if none crypto investors like gold bugs will suddenly shift or at least diversify to crypto, specially with this ETH 2.0, then in the long run it will be good for all us.

@BayAngelo - I agree that there are a lot of competition out there, but we haven't heard anyone really getting close on challenging ETH for the top spot.

[tbct_mt2]

They: ETH and DeFi tokens are very different assets. DeFi tokens are types of derivative products on Ethereum network. Ethereum investors are all waiting for the launch of Ethereum 2.0 and hope it will be launched successfully but the success of ETH 2.0 does not mean it will cause a massive successful wave for all DeFi tokens.

If you look at how people are led by greed and invested blindly into DeFi tokens, you will know soon they will recognize their mistakes and they will more hesitate to invest in DeFi tokens. I imply that the chance to get success of DeFi projects will be lower for later projects.