Ethereum (2.0) Consensys: how earn on changing mechanics from Proof-of-Work to Proof-of-Stake?

Macro situation:

Ethereum is the number 2 cryptocurrency in the current capitalization rankings. It differs fundamentally from Bitcoin in that it has a virtual machine module (EVM) that allows the creation of indefinite, decentralised smart contracts. This feature has allowed the blockchain to become the underlying platform for a multitude of platforms and applications. The most popular and successful decentralized applications are currently deployed on the Ethereum network: Uniswap, 1inch, OpenSea, AAVE, Maker.

Local trend:

The cryptocurrency market is currently under pressure from global political and economic uncertainty. Despite this, ETH is evolving rapidly technologically — the upcoming rollout of a new blockchain solution, Consensus layer, will solve the problem of high fees and network performance at peak times. One of the latest test upgrades, Kiln, has now been completed, after which a transition to the new proof-of-stake consensus algorithm is already planned.

Investment idea:

The planned improvements will lead to a significant increase in network performance, changing the revenue generation systems from running mining farms to stacking Ether in validator nodes. This change will organically create additional demand for ETH. The idea is to go long on Ether with target levels of 3 500 within a month.

Entry options:

1. Purchase on the spot market. Expected yield is ~18% for the month (~216% p.a.).

2. Selling a put option with a 2800 strike price and buying a call option with a 3100 strike price and the same execution date of April 29.

In the case of options, the return will be complex and with a different probability level. The total will consist of the premium received from the sale of the option and the expected return on the option purchased (depending on the exit point).



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P2P options trading platform on Binance Smart Chain, Ethereum