Among the many takeaways, it is stated that "Attacks against Eth2 are easier to scale than against Eth1" and that "network security was highly dependent on the price stability of ETH ".
Researchers Tanner Hoban and Tom Borgers work in business development at ConsenSys, but their report on the network economics of Ethereum 2.0 was an independent journal.
Here's why DeFi is vulnerable
Researchers have noted that the physical and material expenses related to participation in the network "to reduce material consumption and electrical essentially minimal." They have raised the minimum requirements to run a node ETH compared to mining platforms current developed.
The trend is amplified as DeFi progresses. The researchers have also warned against the fact that the flash loans, derivatives and other financial products related to the ETH could have negative implications for the network.
In April of this year, MakerDAO was struck by such a scenario. Ethereum fell 45% in two trading sessions, which led to zero bid auctions for ETH on Maker . Lenders have lost their funds - over 4 million - in minutes, while buyers have purchased the ETH free.
A similar exploit was revealed last month as hackers drained Balancer pools of $ 500,000. As CryptoSlate reported, attackers took advantage of a deflationary token available on Balancer by taking out flash loans from other protocols, swapping between tokens and ultimately getting rid of LINK , Wrapped ETH, and others. alts.
ETH 2.0 is based on 100 variables
Researchers have built a business model built in Excel and executed various outputs of the system according to the recommended specifications "for some scenarios." As and progresses of the experience they have come to a conclusion on factors such as income, costs, yields and the issuance of the network of validators, all listed prominently in Serenity.
ETH 2.0 is based on more than 100 variables, notes the report. All of these have a significant impact on the results of the system. Based on simulations of these, the model was able to capture the profitability of the validator on different ETH prices and the total of ETH staked.
"The goal is to make attacks more expensive than the potential benefits of an attack and achieve a level of security similar to the current Ethereum blockchain (Eth1)."
A minimum return of 3.3% is required by validators to consider participation, under an optimized network. If the market is "more bearish but stable", the yield requirement increases to 11.6%, according to the report.
Ethereum 2.0 is a highly anticipated development in cryptographic circles. The update is shaky when it comes to its exact launch - the developers at the Ethereum foundation have said shipping could not be scheduled until 2021, but co-founder Vitalik Buterin is sticking to a launch in 2020.
We can only wait.