Categories: MarketsMenafn

LayerZero’s Testnet Bridge Between Ethereum And Goerli Sparks Community Backlash

Developing for the Ethereum ecosystem often involves using one of its testnets. Goerli is, along with Sepolia, a fan favorite. Unfortunately, getting testnet ETH for development purposes can be difficult, although the solution by LayerZero isn’t the best approach either. 

More Liquidity For Goerli Developers

It is commendable to see a new approach to bring more testnet ETH to Goerli. Unfortunately, while there is a faucet developers can request funds from, it doesn’t have an infinite supply. Pre-PoS, it used to generate coins through mining, but that is no longer the case. Goerli is subject to proof-of-stake rules, making itmore challenging to get testnet currency. Overall, there is a hard limit on available Goerli liquidity, which has become a hindrance.

Developers relying on solutions like Blockdaemon can have an account manager send them some funds. Unfortunately, that supply isn’t endless either. Eventually, the funds will run dry unless something changes. Developers already have to wait hours – if not days – to claim funds from the default faucet. LayerZero came up with a potential solution, although it meets some criticism.

One way of bringing more liquidity to the testnet is through a bridge. The testnet bridge lets users convert mainnet Ethereum liquidity into Goerli-based ETH. Moreover, the project has an initial Goerli-ETH price is $0.1, with a seeded pool on Uniswap. Users can convert between ETH and gETH, or ETH to mETH on the Goerli network. That should make it easy to create two-way liquidity and ensure developers don’t have to twiddle their thumbs.

The Community Isn’t Amused

The approach by LayerZero solves a pressing issue, but there are many uneasy questions. First, it introduces another ETH-based ticker on Uniswap, which may cause novice users to buy the “wrong Ethereum”. While they can eventually convert gETH to ETH again, they would also pay fees and potential slippage costs. That is not fair, yet it will likely cause issues eventually. 

Second, the community consensus is how Goerli-ETH should be a public good. However, when tying that good to monetized services, things take a very dark turn – a bridge needs to make money. In addition, some people feel this will drain the faucet even further and prevent developers from using the testnet altogether. The Goerli-ETH supply is already limited, and making it a “premium feature” through this bridge sends the wrong signal. 

Furthermore, the liquidity on Goerli today could be used as liquidity for the Uniswap pool. That further strains the circulating supply and creates monetary incentives that shouldn’t even exist. People now have an extra reason to hoard an already scarce asset and convert it to Ether to the highest bidder. That will have long-term consequences for Goerli-ETH. 

The post LayerZero’s Testnet Bridge Between Ethereum And Goerli Sparks Community Backlash appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

PivAssets Rewards Excellence: 3 Luxury Villas in Florida Up for Grabs!

California, USA, 23rd December 2024, ZEX PR WIRE, At PivAssets, we believe in rewarding our…

5 hours ago

Rexla Global Launches Multi-Service Digital Platform with RXG Token, Targeting Widespread Adoption of Blockchain Services

Dubai, UAE, 23rd December 2024, ZEX PR WIRE, Rexla Global, a next-generation multi-service digital platform,…

5 hours ago

Ripple’s RLUSD Stablecoin Sees Muted Launch, $3 Million in Daily Trading Volume

Ripple’s highly-anticipated stablecoin RLUSD has seen a relatively muted launch, with trading volumes in the…

2 days ago

Bitcoin ETFs Face Record Outflows Amid Market Decline

Bitcoin exchange-traded funds (ETFs) experienced a substantial sell-off on December 19, recording net outflows of…

3 days ago

Paytora Simplifies Your Finances: Instant Crypto Conversion with an All-in-One Platform

Vancouver, Canada, 20th December 2024, ZEX PR WIRE, Paytora, an all-in-one digital banking platform that…

3 days ago

Crypto Liquidations Exceed $1B Following Controversial Fed Statements

The Federal Reserve announced a 25 basis point interest rate cut, reducing the federal funds…

3 days ago