transition was supposed to solve Ethereum’s scalability problems. However, MakerDAO claimed that the forked tokens could affect its system. Ergo, the question – How?that the Merge could lead to perpetual contract backwardation and negative funding. Additionally, MakerDAO mentioned that the launch itself could trigger selling pressure across chains existing on PoW.
Other factors considered include possible insolvency with liquidity pool protocols and stablecoins’ neglect as Tether [USDT] seems to be the only one in support of the Merge.
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