A relatively simple question, but I am sure I'm missing details about the ETH 2.0 planned upgrades. Is there any reason to think that liquidity pool fees and the resulting APR/Y as a liquidity provider will change substantially after the upgrades?
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Welcome to the Ethereum Stack Exchange! What liquidity pool fees and APRs do you mean? The "Current APR" at launchpad.ethereum.org ?– eth ♦Oct 17, 2021 at 2:28
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It was more of a general conceptual question about DeFi exchanges being altered by ETH 2.0. We could use a specific example like Convex, would that platform be affected at all by ETH 2.0?– tertiusOct 18, 2021 at 5:41
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Thanks for clarifying, no they would not be affected; posted a late answer.– eth ♦Nov 10, 2021 at 8:22
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2 Answers
In a nutshell, the Ethereum of tomorrow replaces the brain of Ethereum (with a sustainable and secure proof-of-stake) while keeping the body we know intact. This translates into uninterrupted contracts and applications with stable APIs and tools
The body of Ethereum, the user and application layer, will remain intact, so DeFi rewards will not be directly affected by ETH 2.0 upgrades. (If the upgrades with data shards and rollups make transactions cheaper, and lead to more deposits to DeFi, then this could cause rewards to decrease.)
ETH2.0 is supposed to eventually let users unlock their staked tokens. If enough people start unstaking and providing liquidity it will affect the pool returns.
