Ethereum miners or better known as the ETHPOW group have announced to stop the liquidity pool technology which is a digital stack of cryptocurrencies locked in a smart contact that will create faster transactions.
In a Twitter announcement, ETHPOW has made a disclosure to freeze some lending protocol smart contracts. According to him, liquidity pools can be compromised by ETHW token users.
However, groups like Uniswap, Aave, and Compound will deposit ETHW tokens and often those tokens can be exchanged by hackers and scientists for worthless USDT, USDC, and WBTC.
Therefore, ETHW is firm in its decision to freeze liquidity pools so that the companies can find better solutions to improve their services.
They also revealed that the freeze will not apply to staking contracts if dealing with only one asset.
In the meantime, ETHW has submitted a proposal to users to withdraw their tokens from liquidity pools to decentralized exchanges as well as lending platforms.
This move has drawn heavy criticism from various influential figures in the crypto community. Foobar, a blockchain developer and auditor has ridiculed ETHW by questioning its efficiency in making the steps it took.
The Ethereum combination will replace Ethereum's consensus mechanism from Proof-of-Work to Proof-of-Stake. This will reduce Ethereum's energy consumption by more than 99%.
Nevertheless, it will also replace the miners required by the PoW authentication system.
