LooksRare Unveils Risk-Mitigating Plan Ahead of the Ethereum Merge

LooksRare has unveiled its policy for mitigating risks of the Ethereum PoW/PoS chain-split ahead of the highly anticipated merge in September.
Image source: looksrare.org

Quick take:

  • LooksRare has unveiled its plan for the Ethereum proof of stake merge.
  • The leading decentralised apps ecosystem will be rolling out its proof-of-stake platform a process that has been dubbed “the merge”.
  • LooksRare has shared its risk-mitigating policy ahead of the ETH point-of-work (PoW)/proof-of-stake (PoS) chain split in September.

LooksRare has unveiled its risk-mitigating policy ahead of the Ethereum merge. The world’s leading decentralised apps ecosystem will be moving to a proof-of-stake blockchain from the high energy-consuming proof-of-work this September, according to co-founder Vitalik Buterin.

The risk mitigation policy was previously introduced in April, but the non-fungible token (NFT) marketplace is now laying it out in more detail.

Before the merge

In a document published on the LooksRare website, the company said it will go into maintenance mode shortly before the merge.

“The multi-sig that currently operates the LooksRare protocol will update the Currency Manager so that WETH is no longer a supported currency,” the document reads.

This second part will prevent any trades from executing thus mitigating the risk of potentially re-executing orders after the merge is completed.

The aftermath

The multi-sig operators will confirm that the Proof-of-Work fork no longer uses ChainID 1, LooksRare’s hard-coded domain separator on the Ethereum mainnet.

The multi-sig will also update the currency merger to add WETH support to the PoS. The company will then take LooksRare.org out of maintenance mode to allow NFT trading and other activities to take place.

LooksRare developers said that its risk-mitigating plan will be able to take care of future risks associated with native forks of chains, negating any chances of replaying transactions.

Recently, Yuga Labs revealed that it will not support PoW ETH chains after the merge. LooksRare seems to be taking the same stance after declaring that “forked versions of the Ethereum blockchain [that] may occur (including PoW forks) will not be supported by the LooksRare protocol.”

Traders will receive an execution error if they try to trade during the maintenance mode, the company wrote, also pointing out that the period could last as long as an hour.

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