The Ethereum network is undergoing a major upgrade known as "the Merge." This event transitions Ethereum's consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). It represents a significant milestone for the entire blockchain ecosystem, aiming to improve scalability, security, and sustainability.
Matrixport is fully committed to supporting this upgrade and ensuring a smooth experience for all users. We understand that such events can bring uncertainties, and we have implemented measures to safeguard user assets and minimize potential risks.
Below, we outline the key steps and adjustments Matrixport will make during the Merge period.
Service Adjustments During the Merge
To protect user assets and maintain platform stability, Matrixport will temporarily adjust several services. These changes are precautionary and will be lifted once the network stabilizes.
ETH and ERC-20 Token Deposits and Withdrawals
Matrixport will suspend deposits and withdrawals for ETH and all ERC-20 tokens. This temporary halt is to prevent any issues arising from chain reorganizations or unexpected network behavior during the transition.
We recommend completing any necessary deposit or withdrawal transactions in advance. Once the Ethereum network is stable after the upgrade, we will promptly resume all deposit and withdrawal services.
Handling of Potential Hard Fork and ETHW Distribution
The Merge may lead to one or more hard forks. If a new chain emerges and a new token (referred to here as ETHW) is created, Matrixport will take a snapshot of user ETH holdings before the execution layer upgrade.
Eligible users will receive ETHW tokens on a 1:1 basis based on their ETH balance at the time of the snapshot. This distribution will occur after the fork is complete and the new chain is operational.
It's important to note that the hard fork outcome is not guaranteed. If no new fork occurs, we will simply resume normal ETH services as quickly as possible.
Trading Services
Spot trading, OTC trading, and API trading for ETH and other ERC-20 tokens will continue uninterrupted during the Merge. This includes services like flash swap and bulk OTC trading.
However, please be aware that any ETH trades settled within 24 hours before the snapshot will not be eligible for ETHW distribution. Matrixport may decide to list ETHW for trading at a later date, depending on market liquidity and conditions.
Third-party fiat-to-crypto services integrated with Matrixport will suspend ETH purchases. Some partners may also pause ERC-20 token conversions. Please refer to the specific partner's page for detailed information.
Impact on Matrixport Financial Products
The Merge will affect various financial products offered on Matrixport. Below is a breakdown of how each product category will be handled.
Fixed-Income Products
New subscriptions for ETH-denominated fixed-income products will be temporarily suspended. Existing orders that mature after a specified cutoff time will not be eligible to receive any potential ETHW tokens.
Flexible Savings Products
Users holding ETH in flexible savings products do not need to take any action. These assets will automatically be included in the snapshot and will qualify for ETHW distribution. All accrued earnings during the fork period will be unaffected.
Dual Currency Investment
The platform will snapshot dual currency investment orders at the same time as the main fork snapshot. Orders holding ETH will receive ETHW according to their order details.
Trend-Based Products
The launch of new trend-based products with ETH as the investment currency is paused until the fork event concludes. Users who wish their ETH assets to qualify for ETHW should ensure they disable the auto-renewal function before the deadline to allow orders to settle and return funds.
Structured Products
Similar to dual currency investments, structured product orders will be snapshotted. ETH holdings within these orders will receive ETHW distributions based on the order information.
Crypto-Backed Loans
ETH lending functionality will be temporarily suspended. To avoid potential liquidation due to high volatility during the fork, users are advised to repay loans and retrieve their ETH collateral before the deadline.
Repayments and ETH collateral additions will be paused during the fork. Users who wish to maintain their loans should add extra ETH collateral in advance. The platform will snapshot loan orders, and ETH collateral will qualify for a 1:1 ETHW distribution.
Leverage Trading
Hedging Strategy
Users engaged in hedging should repay their loans before the specified deadline. Failure to do so will prevent further repayments until after the fork. After the fork, Matrixport will collect the equivalent value of ETHW owed from the user's loan amount or deduct it from their margin balance.
Accumulation Strategy
Users utilizing leverage for accumulation are also advised to repay before the deadline. If unable to repay, users should maintain sufficient margin to avoid liquidation due to price swings. Note that margin used in accumulation trades will not be eligible to receive ETHW.
Staking Products
For users with locked assets in staking products, eligibility for ETHW depends on how the forked chain handles contracts related to ETH 2.0 staking. To ensure eligibility, users who wish their flexible staking ETH assets to receive ETHW should redeem their orders to their personal wallet before the deadline.
Frequently Asked Questions
What is the Ethereum Merge?
The Ethereum Merge is an upgrade that changes the network's consensus mechanism from Proof-of-Work to Proof-of-Stake. This aims to drastically reduce energy consumption and set the stage for future scaling improvements.
Will I receive ETHW tokens if I hold ETH on Matrixport?
Yes, if a hard fork occurs and a new chain with a token (ETHW) is created, Matrixport will take a snapshot of user balances. You will receive ETHW tokens on a 1:1 basis based on your ETH holdings at the time of that snapshot.
Are my assets safe on Matrixport during the Merge?
Matrixport has implemented several precautionary measures to protect user assets. This includes temporarily suspending certain services like deposits and withdrawals to prevent any issues related to network instability during the transition.
Can I trade during the Merge?
Spot and OTC trading for ETH and ERC-20 tokens will remain operational. However, services involving fiat currency conversions via third-party partners may be temporarily paused.
What should I do with my crypto loans?
It is highly recommended to repay any ETH-backed loans before the specified deadline to retrieve your collateral and avoid potential liquidations due to expected high volatility.
Where can I get more information about advanced trading strategies during market events?
For those looking to deepen their understanding of market dynamics around significant upgrades, explore more strategies to help navigate volatility.
Conclusion
Matrixport is dedicated to ensuring a secure and seamless experience for all users throughout the Ethereum Merge. We have taken comprehensive steps to manage potential risks and will distribute any forked tokens fairly should they arise.
All timelines and details are based on the latest information from the Ethereum Foundation and are subject to change. Matrixport reserves the right to adjust the measures outlined in this announcement. As always, users are encouraged to exercise caution and implement their own risk management strategies.
For further updates and detailed information, please refer to official Matrixport communications.