Dear Community,
We would like to inform you that with respect to the upcoming Ethereum (ETH) Network Shanghai Merge, we will be discontinuing Liqueth (LQTH), an ETH-backed token for the ETH-2.0 stakers on CoinDCX Pro. For users who currently hold LQTH, we will make LQTH redeemable with ETH at a ratio of 1:1. Please keep reading for more details.
The timeline for redemption will be towards the end of April 2023 (tentative), further details for which will be shared with you in a separate announcement post the Shanghai upgrade.
What is Liqueth (LQTH)?
Liqueth (LQTH) is a bond-backed token based on proof-of-staking (PoS) reserve protocol, that is generated in a 1:1 ratio for every ETH staked through CoinDCX Pro.
The token was meant to provide an opportunity to users to get returns on ETH staking and at the same time make the staked ETH liquid in the form of LQTH.
What is the Shanghai Merge?
The ETH Shanghai Merge is a planned hard fork of the ETH protocol. Along with reduced gas fees and updates to smart contract facilities, this upgrade will also allow ETH stakers to remove their staked funds as validators.
How will this impact you?
Now that ETH foundation has announced the timelines for the Shanghai Merge, staked ETH can be withdrawn either partially (rewards only) or completely (rewards + staked quantity) as per the guidelines issued by ETH Foundation.
Consequently, we will be unstaking the staked ETH, on behalf of the users, and then withdraw the LQTH token from circulation. For users who currently hold LQTH, we will make LQTH redeemable with ETH at a ratio of 1:1.
What to do next?
Users can still earn passive income on ETH by putting their tokens on Earn, which allows investors to add passive earnings in addition to benefiting from market movements in the long term.
To know more about Earn, read our blog here.
In case of any further doubts, please contact our Support team.
Regards,
Team CoinDCX
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