Ethereum

What Is Ethereum (ETH)?

‍Ethereum (ETH) is a decentralized, open-source blockchain platform that enables the creation and execution of smart contracts and decentralized applications (DApps). Launched in 2015 by Vitalik Buterin and a team of co-founders, Ethereum has become a foundational technology in the blockchain space, allowing for the development of various decentralized solutions.

Who Are the Founders of Ethereum?

‍Ethereum was co-founded by Vitalik Buterin, Gavin Wood, Joseph Lubin, and several other key figures in the blockchain community. Their collective vision and expertise have been instrumental in shaping Ethereum into the influential platform it is today.

What Makes Ethereum Unique?

‍Ethereum is unique for its smart contract functionality, which allows developers to create self-executing contracts with the terms of the agreement directly written into code. This innovation has paved the way for a wide range of decentralized applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs), and has established Ethereum as a leading platform for blockchain development.

How Many Ethereum (ETH) Coins Are There in Circulation?

The total supply of Ethereum (ETH) is dynamic and does not have a fixed cap. There are over 120 million ETH in circulation. With the transition to a proof of stake (PoS) consensus mechanism and the implementation of EIP-1559, which introduces a fee-burning mechanism, the rate of new ETH issuance has significantly decreased. In some cases, more ETH may be burned than created, leading to a potential decrease in total supply over time. The exact supply of ETH can fluctuate based on these factors, so it's important to refer to up-to-date sources for the most current information.

How Is Ethereum Secured?

‍Ethereum is currently secured through a proof of work (PoW) consensus mechanism, similar to Bitcoin, where miners compete to solve complex mathematical problems to validate transactions and add new blocks to the blockchain. However, Ethereum is in the process of transitioning to a proof of stake (PoS) model with its Ethereum 2.0 upgrade, which aims to improve scalability, security, and energy efficiency by having validators stake their ETH to secure the network.

What Is Wrapped Ether (WETH) and How Is It Used?

‍Wrapped Ether (WETH) is a tokenized version of Ether that conforms to the ERC-20 standard, making it compatible with the vast ecosystem of Ethereum-based decentralized applications (DApps) and smart contracts. WETH allows users to trade ETH on decentralized exchanges (DEXs) and interact with smart contracts that require ERC-20 tokens. Users can convert ETH to WETH through a smart contract, effectively "wrapping" their Ether to increase its interoperability within the Ethereum ecosystem.

How Can I Buy Ethereum (ETH) Tokens for cheaper than Market Price?

Simply buy some EUROs from a DEX, head over to TheStandard.io, and lock the EUROs into the Yield Account. Your EUROs will automatically start to buy up ETH at a 9.1% discount. This ETH is collected by people swapping on the protocol. Just so you know, you also need to stake TST in the yield account. Doing this will also earn you EUROs that will also be used to buy crypto at a discount.

How Do I Borrow against me Ethereum (ETH) holdings for 0% interest?

To borrow against ETH (Ethereum) with 0% interest using TheStandard.io, and considering the need to convert ETH to WETH (Wrapped Ethereum) as part of the process (since DeFi platforms typically require ERC-20 compliant tokens for operations such as collateralization), here’s how you can proceed:

1. Convert ETH to WETH: Before you can use your ETH as collateral, you need to convert it to WETH, which is an ERC-20 compliant version of Ethereum. This conversion ensures compatibility with the DeFi ecosystem, including TheStandard.io. To convert ETH to WETH, you can use a decentralized exchange (DEX) or a platform offering a wrap/unwrap feature. The process usually involves sending your ETH to a smart contract that returns an equivalent amount of WETH to your wallet.
2. Open a Smart Vault on TheStandard.io: With your WETH ready, navigate to TheStandard.io platform and initiate the creation of a Smart Vault. This is where you will deposit your WETH as collateral.
3. Deposit WETH as Collateral: Deposit your WETH into the Smart Vault. The amount of stablecoins you can borrow depends on the value of your WETH and the platform’s collateralization ratio requirements.
4. Borrow Stablecoins: Borrow the desired amount of stablecoins against your WETH collateral. TheStandard.io allows borrowing at a 0% interest rate, offering a cost-effective way to access liquidity without selling your ETH.
5. Manage Your Smart Vault: Keep an eye on the collateralization ratio of your Smart Vault, especially during volatile market conditions. You can add more WETH or repay some of the borrowed stablecoins to maintain a healthy ratio and prevent liquidation.
6. Repay Your Loan to Retrieve Your WETH: When you’re ready to retrieve your WETH collateral, repay the borrowed stablecoins. After repayment, you can withdraw your WETH from the Smart Vault.
7. Convert WETH back to ETH (Optional): If you wish to convert your WETH back to ETH, you can use the same platform or service you used for the initial conversion. This step is optional and depends on your preference or need for ETH in its original form.

This approach allows you to leverage your ETH holdings to generate liquidity while maintaining exposure to potential ETH price appreciation. It’s important to stay informed about the specific requirements and features of TheStandard.io, as platform policies and DeFi protocols may evolve over time.

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