AAVE network halts ETH-lending ahead of Ethereum’s Merge

Sahana Kiran
Source – Unsplash

Ethereum [ETH] is just days away from moving into Proof-of-Stake [PoS]. Amidst this, an array of them have been signaling support for the same. As the network prepares for this much-awaited update, several platforms have been stopping ETH trading. Prominent lending network, Aave took a step ahead and decided to put a hold on borrowing Ether.

Last week, the platform went on to put up a proposal in light of the same. Considering the increased risks of crypto traders going big on Ethereum right before the Merge, Aave decided to temporarily pause ETH borrowing. It should be noted that the Merge is expected to occur between September 13-15.

Speaking about the same, Block Analitica, a research platform stated,

“Ahead of the Ethereum Merge, the Aave protocol faces the risk of high utilization in the ETH market. Temporarily pausing ETH borrowing will mitigate this risk of high utilization.”

Furthermore, the Merge is expected to completely negate the involvement of miners in the ETH ecosystem. Therefore, several miners have come forward in protest of the same. In addition to this, these miners have been pushing for a hard fork to retain the PoW chain. Meanwhile, prominent mining pools have denied support for the same.

HIVE to explore other options following Ethereum’s Merge

HIVE Blockchain, one of the largest crypto mining firms noted increased profits over the last month. The firm revealed that the mining production revenue for August hit a record. HIVE recorded a whopping 9.4 Bitcoin [BTC] approximately $187,500 and 97 Ethereum worth about $161,000 per day. The total number of ETH produced in August was 3,010 ETH worth $5 million.

It seems like Ethereum miners were going all in ahead of the Merge.

Additionally, since HIVE’s GPU cards would no longer be employed following the Merge, the firm is forced to pursue other options. Ethereum Classic [ETC] has been a prominent alternative. Ethermine, the largest Ethereum mining pool outrightly dismissed the support for ETHPoW.

HIVE further stated,

“HIVE has already commenced analysis of mining other GPU mineable coins with its fleet of GPUs, and is implementing beta-testing this week, prior to the merge.”