ETHW and ETHS are two recently introduced chain split tokens that allow users to trade in the fork event.
iFinex, the company responsible for Bitfinex derivatives, announced on Tuesday the launch of a new service available to users ahead of the long-awaited Ethereum merger. The exchange now offers Ethereum Chain Split (CST) tokens.
The tokens available to users represent the two systems involved in the merger: ETHW with Proof of Work (PoW) and ETHS with Proof of Stake (PoS). Bitfinex has released new trading tokens to allow users to trade on a potential fork.
The coins will be available for sale through the Bitfinex derivatives platform.
Bitfinex CTO Paolo Ardoino said they are launching these new tokens to better prepare users for all the possibilities that come with the merger. However, tokens come with an expiration date set for the end of the year.
Related: 3 Strategies Investors Can Use to Trade the Upcoming Ethereum Merger
According to the exchange, there are three predictable outcomes that these tokens can help users prepare for.
If there is no consensus change in the proof-of-work chain, ETHS will expire and ETH will be available for all ETHW assets. However, if the consensus change succeeds without forking, the opposite will happen, ETHW will expire and ETH will be replaced with ETHS.
In case of a successful change of consensus and a successful bifurcation, ETHW and ETHS tokens will be deposited in ETH.
The merger, scheduled for mid-September, brought the entire industry to a standstill. Users want to see if the event takes place within the time frame promised by the developers and if there are any devastating side effects.
The merger has been delayed several times in the past. Protocols like Aave encouraged users on the network to switch to PoS early, although the PoW community resisted.
Miners are particularly faced with the choice of how to proceed with the defragmentation process. While some major mining pools have switched to staking, other PoW miners plan to freeze contracts to support PoW despite opposition.