Daily Doots Leaderboard

📣 Join the Ethfinance Livestream every Friday 12pm EST in the EVMavericks Discord for a roundup of the top 10 Doots of the Week! Recordings will be posted to YouTube and Spotify.

🗓️ Weekly Doots   |   👤 Community Profiles
🗳️ EthFinance Delegates   |   🦁 Chrome Extension

1036 Dooters - Last Updated May 17, 2024

Rank Username Daily Doots
. superphiz 195
. logristhebard 128
. benido2030 121
. tricky_troll 98
. cryptowocurrency 94
. set1less 93
. syentist 83
. 696_eth 80
. hanniabu 80
. haurog 73
. ethical-trade 71
. phimarhal 62
. stablecoin 62
. nixorokish 61
. kbrot 60
. austonst 55
. the-a-word 54
. bob-rossi 53
. pa7x1 51
. etheraider 50
. alexiskef 49
. okdragonfruit1929 49
. swagtimusprime 49
. interweaver 46
. realjohnbmaclemore 42
. savage-dragon 39
. spacesider 38
. thecryptosandbloods 38
. minimalgravitas 36
. pr0nh0li0 36
. seamonkey82 36
. 15kisfud 35
. maleficent_plankton 35
. itur_ad_astra 32
. rooftopportapotty 32
. eggill7227 31
. domotheus 30
. mrvodnik 30
. needlerop 30
. liberosist 29
. revanchist1 29
. waqwaqattack 29
. _weboftrust 27
. bagogel12 27
. ender985 27
. asdafari12 26
. busterrulezzz 26
. papazio 26
. ro-_-b 26
. maswasnos 25
. barthib 24
. kudeta 24
. -lightfoot 23
. aaj094 23
. ber10 23
. hipaces 23
. decibels42 22
. silentjxhn 22
. thehansgruber 22
. wolfparking 22
. insidethesimulation 21
. not-ngmi 21
. 2nice4allthis 20
. cryptrd285 20
. ethlongmusk 20
. im_this_guy 20
. moschus11 20
. savage_x 20
. coldsnap 19
. vvpan 19
. wulkingdead 19
. chapo_rouge 18
. coinanon 18
. ethacct 18
. vedran_ 18
. 1l0o 17
. abcoathup 17
. arcadesofantiquity 17
. eth10kisfud 17
. heringsalat100 17
. kingleo23 17
. krokodilmannchen 17
. masterroshi9 17
. nikola_j 17
. skythe4 17
. sourdoughpretzel4444 17
. spontaneousdream 17
. dcinvestor 16
. dreth 16
. hblask 16
. luukiemans 16
. somedaysitsdark 16
. thehighflyer 16
. bigglybillbrasky 15
. maninthecryptosuit 15
. offmyporch 15
. sikhsoldiers 15
. ab111292 14
. mrcatface13 14
. oyurukemono 14
. pbrody 14
. sonotyou 14
. teedeepee 14
. barleythecat 13
. cheeky-gorilla 13
. dashby1 13
. etherbie 13
. kwadrax 13
. turbojetmegachrist 13
. 2peg2city 12
. fast_contract 12
. mrs_willy 12
. quadraticsharting 12
. replykindly 12
. timmerwb 12
. unitedterror 12
. buyethordai 11
. cemalpersimsek 11
. cutsnek 11
. eth2353 11
. keynya 11
. odds-bodkins 11
. pegcity 11
. proof-of-lake 11
. t0bii 11
. vuduchyld 11
. altsaretrash 10
. bakedent 10
. defirobot 10
. ev1501 10
. kallukoras 10
. kb1985 10
. magnushansson 10
. shiftli 10
. 18boro 9
. atyzze 9
. blueberry314e-2 9
. canadiens1993 9
. ch3white10 9
. concernedcustomer33 9
. defacticool 9
. doomfuzzslayer 9
. ec265 9
. harryzke 9
. jin366 9
. llamachef 9
. mkkoll 9
. monkeyhold99 9
. newman513 9
. nightfallsh4 9
. plaenar 9
. theethmeister 9
. theonlyhodlerincuau 9
. will_dance_for_coins 9
. aaqy 8
. accidental_green 8
. accountaccumulator 8
. ajmonkfish 8
. confucius_said 8
. degenkolotoure 8
. dray11 8
. edmundedgar 8
. eetherway 8
. fiberpunk2077 8
. glittering-duty-4069 8
. hereimalive 8
. hsuke 8
. ipeculiarly 8
. iscaacsi 8
. jumnhy 8
. nomad-nuance 8
. not_selling_eth 8
. pembull 8
. pocketwailord 8
. roargrrrr 8
. showbizza 8
. vandelay101 8
. weedstocks 8
. yeahdave4 8
. childsp 7
. corn-potage 7
. cosmiccollusion 7
. doubtstarsarefire 7
. hauntedjockstrap88 7
. hocilef 7
. jbroja 7
. jmart762 7
. juxtanotherposition 7
. keepontruckinbag 7
. lawfultots 7
. mayneminu 7
. miaviv 7
. revolutionarysoil11 7
. sku 7
. spinz808 7
. stalslagga 7
. steven_a_mma_goat 7
. strtrd 7
. thenextbestguess 7
. thepaypay 7
. twelvemeatballs 7
. wanderingcryptowolf 7
. _etherium 6
. chromes 6
. datacruncha 6
. ecguy1011 6
. el-coco-no 6
. frenkthetank 6
. hombredecamote 6
. kukai_walker 6
. logic_beach 6
. lops21 6
. nefariousnaz 6
. offthewall1066 6
. oldskool47 6
. phigo50 6
. pudgypeng 6
. sal_t_nuts 6
. sbdw0c 6
. sfcpfc 6
. splintercole 6
. stobie 6
. strawdar 6
. themoondancekid 6
. ugottrisomy21 6
. wholesome_crypto 6
. yeopaa 6
. 404bachee 5
. bad_investment 5
. best_coder_na 5
. breeezyyyy 5
. charitablechair 5
. clamchoda 5
. curious-b 5
. danksharting 5
. ethdefiance 5
. fatlever2 5
. geoffbezos 5
. hamberdler 5
. intmmtsir 5
. kainzilla 5
. kairepaire 5
. kedos25 5
. labrav 5
. lazy_physicist 5
. lobsterspider 5
. mirved 5
. mr_cheese_curds 5
. nooku 5
. nothingnotnever 5
. ournumber4 5
. perleflamme 5
. physalisx 5
. rapante 5
. rapidlysequencing 5
. red_corneas 5
. shadowking94 5
. sinnu2s 5
. skidseverywhere 5
. sm3gh34d 5
. sparta89 5
. the_statustician 5
. the_swingman 5
. thefightingtemeraire 5
. thoughts4food 5
. vvander 5
. wanglubaimu 5
. whovillage 5
. wootnasty 5
. zk_snacks 5
. 100acrewood 4
. 16withscars 4
. 18cimal 4
. ambidextrous12 4
. anderspatriksvensson 4
. anguier 4
. baggygravy 4
. bebopnosering 4
. cocleric 4
. dataalways 4
. dentonnn 4
. dinny14 4
. djlywtf 4
. domingo_mon 4
. epic_trader 4
. epiphany153 4
. ethmaxitard 4
. ethsomesense 4
. fiah84 4
. friedchickentrailer 4
. gethwethreth 4
. hitman616 4
. i_love_mom 4
. imelia29 4
. jebediahkholin 4
. johnbmaclemore 4
. johnnydappeth 4
. mango_sake 4
. megroovin 4
. mister_eth 4
. moneygobye 4
. need-a-bencil 4
. nevilleharris 4
. pulisordie 4
. reuptaken 4
. rumblecat 4
. sabishiifury 4
. sfdao91 4
. shoedollarbill 4
. silver5005 4
. simonds2 4
. suddenmind 4
. syzygy00778 4
. theunderdogrutten 4
. thewalkinglive 4
. toethmooonguy 4
. tutamtumikia 4
. watch_dominion_now 4
. wegotsumnewbands 4
. wurstgewitter 4
. 0xboba 3
. aggravating-ear6289 3
. asus_wtf 3
. atleft 3
. auseve 3
. badassmotherfker 3
. baerbelleksa 3
. bazzravish32 3
. bbqcaramelbrulee 3
. believeinapathy 3
. bhiitc 3
. bitzgi 3
. breakeizer 3
. candlethief724 3
. cash 3
. chokeman 3
. coin010309 3
. cometothecaml 3
. communist_mini_pesto 3
. cryptomoon2020 3
. cryptonomikon 3
. culi122 3
. davidahoffman 3
. defijie 3
. diego-d 3
. dvdglch 3
. esoa 3
. ethlinkwin 3
. ethnocent 3
. evanvanness 3
. fecalreceptacle 3
. fheredin 3
. general_illus 3
. gravy_vampire 3
. gumbeat007 3
. hipattern 3
. hlpe 3
. iliiililii 3
. imaybeslow 3
. itchy_ad_3659 3
. iwanttobeweve 3
. jbmai 3
. kotmynetchup 3
. llupine 3
. mhotdemnot 3
. midnightonmars 3
. morganzero 3
. mountainminer 3
. mrnog 3
. mwiwm 3
. newtosh 3
. niktak11 3
. nonocoiner 3
. nuadhaargetlam 3
. obitwokenobi 3
. oblomov1 3
. outrageous-emu-939 3
. pinkpuppyball 3
. pinkyandthebrainer 3
. pooeygusset 3
. productdude 3
. professionaiact 3
. profstrangelove 3
. proto-n 3
. readreed 3
. reno007 3
. sayno2mids 3
. shitshotdead 3
. sinuio 3
. smidge 3
. sorangutan 3
. splinunz 3
. stevieraykatz 3
. survivaleast 3
. tinfoilheadphones 3
. tittyfuckmountain 3
. username_error 3
. wizad23 3
. -darkknight 2
. -filterfeeder- 2
. 0xdepositcontract 2
. 0xtimer 2
. _anedi 2
. adankairo 2
. aelowsson 2
. allinat40 2
. allmightlove 2
. angelbattles 2
. art__ 2
. aur3l1us 2
. ausgear1 2
. ayreuan 2
. bakindhuman 2
. batmanrockss 2
. bennybennygg 2
. bibilieli 2
. biketourthrowaway 2
. blocksandpixels 2
. braden87 2
. brambrameth 2
. btoast777 2
. bushmage 2
. calaber24p 2
. calvinhedge 2
. captainofthegate 2
. carpathianinsomnia 2
. caterpillarkitchen67 2
. caturday_yet 2
. comfortable_novel_49 2
. consideritwon 2
. cory_eth 2
. coxenbawls 2
. criminalnoodle 2
. crispykfc 2
. crumbumcrumbum 2
. crypt0curios 2
. crypto_rasta 2
. cryptomonger 2
. da3vr 2
. damien_targaryen 2
. damonkey47 2
. danaraya 2
. davethetrousers 2
. deep_archivist 2
. defidude 2
. destreich 2
. dhartz 2
. diligent-mouse3679 2
. dirtyundiesthewhites 2
. distant-shores 2
. dondochaka 2
. dose_of_placebo 2
. doyourduty 2
. dr_lambo_mcmoontard 2
. drogean3 2
. durkalurk 2
. dwdwfeefwffffwef 2
. eddie_eddie 2
. edrews99 2
. educatemybrain 2
. eliirs 2
. ethdreamer 2
. etherenthousiast10k 2
. experiencegoblintown 2
. fernadopoo 2
. free__will 2
. goatwasher 2
. gulmorgg 2
. gumpa-bucky 2
. hakuna_m4t4t4 2
. hashtagfuzzmaster 2
. healthandwealth365 2
. ican20 2
. ieperen 2
. imnotthomas 2
. impliedpotential3497 2
. inter_mirifica 2
. itchykittehs 2
. jackfreeman_ 2
. jacoblongesq 2
. jamjodsnaj 2
. jaypeaem 2
. jimyxx 2
. jjohncs1v 2
. juankestein 2
. kenzi28 2
. kirill_stakewise 2
. kooky-mouse-9216 2
. koratickle 2
. kscoleman 2
. larrybob4 2
. laughing-mime 2
. leaguegreedy 2
. leraq 2
. lickmytongue77 2
. ltwln 2
. lucadonnoh 2
. maconbacon01 2
. maeby_a_bluth 2
. majorpickle01 2
. maskedman24 2
. mattau05 2
. mcmatt05 2
. mediumrarestake 2
. meyamu 2
. mgr37 2
. midoridrops 2
. moderatelytortoise 2
. moneyprintergobrbrrr 2
. morkogoz 2
. namtaru_x 2
. nick_badlands 2
. nomadic8893 2
. nyruds 2
. o-l-o 2
. old_world9768 2
. originalbaconslab 2
. perpetualcamel 2
. prostmelone 2
. psullzzz 2
. ptuchinho19 2
. red4141 2
. redditor31415927 2
. reststoprumble 2
. rhader 2
. robohack 2
. rockjones 2
. romborg 2
. rsblk 2
. samueth_peapks 2
. seanathanwaters 2
. silktouchm 2
. sirrayshio 2
. smegma_farmer 2
. smellymammoths 2
. sn0w_l30pard 2
. speedemon92 2
. srirachaferrari 2
. statsticks 2
. stripedbluewallpaper 2
. suburbiton 2
. supermarkit 2
. tech_consultant 2
. temporary-music-5468 2
. theubiquitousbubble 2
. thisisnotlegal 2
. timwithnotoolbelt 2
. tiny-height1967 2
. tokenizedhuman 2
. trent_vanepps 2
. unthinkablecryto 2
. vectorvictorious 2
. vinegar_strokes__ 2
. viners 2
. wanna_know_more 2
. wrekhesh 2
. yadude11 2
. yareane 2
. yourburningpizza 2
. zerotrick 2
. zerotricks 2
. zestykite 2
. —truthseeker— 1
. 0661 1
. 0xcazador 1
. 0xdefiant 1
. 0xrel0aded 1
. 10kethisfud 1
. 1stpickbird 1
. 5quat 1
. 5upergeil 1
. 63rd 1
. 66616661666 1
. 69__lol 1
. 917redditor 1
. 9risk 1
. actionpaulson 1
. ahbartsch 1
. airportatheist 1
. aitalianstallion 1
. ali-dabool 1
. andrewmrobbins 1
. andrjor 1
. andykaufmantm 1
. anor_wondo 1
. apoiiocreed 1
. arbtrg 1
. asdafari 1
. associationseveral46 1
. astronautthis 1
. atheartengineer 1
. atleastimnotabanker 1
. attygalle 1
. awardfabrik-sof 1
. back_to_samadhi 1
. bagsmcbaggins 1
. ballsonyah 1
. barkieg 1
. battlepine 1
. belligerent_chocobo 1
. benjamin 1
. bennyggbennyg 1
. bergmannskase 1
. betterstartliving 1
. bigdumbidiot01 1
. bigoldweapon 1
. bigwiseguy55 1
. blackdowney 1
. blartarus 1
. bleeddonor 1
. blur93 1
. bman0920 1
. bmitch567 1
. bosticetudis 1
. box_of_hornets 1
. brandon_indy13 1
. breakmegently 1
. brent_the_adventurer 1
. brickeaters 1
. broccoleet 1
. bugfrag3 1
. builder_bob23 1
. bullet_king1996 1
. burfdurf 1
. butta_tribot 1
. buyvalve 1
. c0smic_0wl 1
. calistadodd 1
. canadian_stv 1
. canwetalketh 1
. catfoodlover 1
. caymannan 1
. ccgirl21 1
. cheezin05 1
. chicoconcarne 1
. chris_dea 1
. chrismartinasd 1
. christi0007 1
. cjuha 1
. ckh27 1
. clark_now 1
. claystring 1
. clearlyjustsomeguy 1
. coinedprince 1
. colangelodid911 1
. competitive-regret21 1
. cow_tipping_olympian 1
. cowsclaw 1
. cozypinetree 1
. cpayyyy 1
. cptnobvs3 1
. crap___shoot 1
. crypolyf 1
. crypt0w0currency 1
. cryptobuddy_1712 1
. cryptojimmy8 1
. cryptopuzzlers 1
. cryptotaxbro 1
. cryptowarjournalist 1
. d-banana-eth 1
. d0ck3r 1
. d0hey 1
. daliroth 1
. danarchist 1
. danassidewife 1
. dangerismyusername 1
. danieltomby 1
. danseidansei 1
. darkestchaos 1
. datadude92 1
. daw_ 1
. dazzlingbasket 1
. dc-covid-trash 1
. dear_cartoonist5660 1
. deariedearieme 1
. defewit 1
. definoob01 1
. degnerone 1
. delicious_truffles 1
. delusionsofether 1
. dennyjets 1
. deppep 1
. detroitlions81 1
. deukey 1
. dim-pap 1
. dizzy_activity 1
. doctor_schmee 1
. doctornoisewaterr 1
. dog_the_explorer 1
. doje_a_vu 1
. dont_forget_canada 1
. dont_waver 1
. dotslaxx 1
. dpxlumpi 1
. dretherious 1
. drew41 1
. drogean2 1
. dudeeggs 1
. dudermeister 1
. dybsy 1
. dysus1 1
. earthquakequestion 1
. easy_like_sunday 1
. eddyg987 1
. ekapadabak 1
. el_reconquista 1
. electricmutiny 1
. elliottmatt 1
. emkoscp 1
. emp2b3 1
. ennygbennyg 1
. epicgoblet 1
. equal-jellyfish1 1
. etereve 1
. eth_scholar 1
. ethdude8686 1
. etherduck 1
. etherornot 1
. ethfan 1
. ethordie 1
. ethrevolution 1
. ethrocketeer 1
. eththermadness 1
. eviljordan 1
. evilphiz 1
. evm_lion 1
. exdedinside 1
. exploreddit 1
. fact_contract 1
. fair_raccoon9333 1
. faithlessnesscold380 1
. fatcateconomist 1
. fatsopiggy 1
. feichalo 1
. fibrepunk2077 1
. fifthrooter 1
. fiftyfirstsnails 1
. first-flower-3465 1
. fishlover3909 1
. flamesrisehigher 1
. flatpak2021_08_2021 1
. fluffaypenguin 1
. flydeon 1
. flyinglineman 1
. foodloverfoodhater 1
. forgetitz 1
. freefactoid 1
. fuckmyfate 1
. fuckschickens 1
. fuckswithfire 1
. fuego710 1
. fuglserrand 1
. futureofeverythingz 1
. gand_ji 1
. genz_ofcourse 1
. geppetto123 1
. ggunit1875 1
. giraffenmensch 1
. girlamongstsharks 1
. goobergal97 1
. gou-ranga 1
. gumba_hasselhoff 1
. gurkang 1
. guyfawked 1
. gwenvador 1
. haidren 1
. hairyguch 1
. halzen627 1
. happyfrom2016 1
. hawaii_fact 1
. hawkbit 1
. headwar 1
. hehechibby 1
. helponadme1 1
. henrycharles007 1
. hgfyuhbb 1
. highqi 1
. hiredgoon 1
. hodleth 1
. hodlingsteady 1
. hokumbafflegab 1
. holyflatulence 1
. hot_lava_poured_in 1
. hotgirls-eth 1
. hwoarangatan 1
. i_haven-t_reddit 1
. ianazch 1
. iknowyougotsole 1
. ilovestaplers 1
. import-antigravity 1
. inelukistormking 1
. infer114 1
. infinite-breath8917 1
. infinitemilieu 1
. inhuman_moose 1
. internal-strategy512 1
. ironicspeech 1
. issac_hunt1 1
. itamarl 1
. its_spelled_iain 1
. itswhatevermannn 1
. izz2011 1
. jade_sorceress 1
. jadenpls 1
. jamcowl 1
. jbgt 1
. jbudz 1
. jenkempuffer 1
. jimjimmyjim-the-1st 1
. jironzo 1
. jokl66 1
. jonace 1
. joshuawakefield 1
. joskye 1
. jrmrx 1
. juanbmaclopez 1
. juustosuikero 1
. juxtaposezen 1
. kadauserer 1
. kaisermerkle 1
. kamikazesexpilot 1
. keeldoteth 1
. keystrokesinyourhead 1
. khad3 1
. kindreply123 1
. knownoshade 1
. kristkind 1
. laninsterjr 1
. lanztar 1
. laphroaigrules 1
. laughing__cow 1
. lavop 1
. lawsonm9 1
. ledrsatan 1
. leperen 1
. lifelonghodl 1
. littlebigdondon 1
. loksfox 1
. looselaugh 1
. lostick 1
. lotec 1
. lowievr 1
. loyalmedavid 1
. lpsupercell25 1
. make_me_think 1
. malooky-spooky 1
. mark0pollo 1
. martian0x 1
. masahirox 1
. mathje 1
. matt0x_eth 1
. maxahoy 1
. maxstandard 1
. melodic_bet1725 1
. merklechainsaw 1
. metalsun6 1
. metanull-operator 1
. middle-athlete 1
. mikemx123 1
. mikkeller 1
. momonosquito 1
. movingintoturquoise 1
. mrecon 1
. mrnobodyman 1
. mxyz 1
. mylhowse 1
. nagus 1
. neetzscie 1
. nervous_yak_2538 1
. new_start_2020 1
. newone1255 1
. nichlaes 1
. nightshadeemoji 1
. ninjadk 1
. nlnico 1
. no-tackle-8652 1
. no_operation1906 1
. no_speaker8945 1
. nodesinformatziya 1
. nomadic8893- 1
. nomakoa 1
. nomorealcohol2017 1
. notimplementedtype 1
. notios 1
. numuhukumakiakiaia 1
. oakridgefarm 1
. oblvnxknight 1
. oc3anwav3 1
. oldmando 1
. order_book_facts 1
. overcookedchicken 1
. ovitodistati 1
. paddyputthepipedown 1
. palegirlshnnng 1
. pandemoniumpermad 1
. panthoreon 1
. paper-gains 1
. passetisse 1
. pennvic 1
. phillywalsh 1
. phonethic 1
. piezoelectron 1
. pikag 1
. pkickel92 1
. plenix 1
. pm_me_your___issues 1
. pnwether66 1
. politicsandcrypto 1
. popsncats 1
. post_orgasm_mind 1
. prais3thesun 1
. projectequal 1
. puzzled_badger 1
. pyroxyze 1
. qwertybop1 1
. randomzileanmain 1
. rayzhueth 1
. realarthurok 1
. recoveringcanuck 1
. redicko 1
. responsiblegrass8080 1
. reterical 1
. revras8 1
. ribilla_ 1
. rickandmowgli 1
. rickshawjojo 1
. ridgerunners 1
. rinmusya 1
. robertloblaw2 1
. roberto250b 1
. robmacca 1
. samuelshix 1
. samus3015 1
. sandworm87 1
. santamansanta 1
. saturnright 1
. scheistermeister 1
. scribblebutter 1
. scurrox 1
. seat-is-occupied 1
. sendn00dles1 1
. sepyke 1
. several-listen7915 1
. sexyborisjohnson 1
. shiba_son_of_doge 1
. shittysurgeon 1
. shortstack02 1
. shredthefed 1
. shtafoo 1
. simonlimonsmith 1
. simtrix33 1
. skilhgt 1
. skyy7 1
. slay_the_beast 1
. slocken 1
. slowmushroom741 1
. smithgift 1
. sosayethweall 1
. sp3xl 1
. special-meaning3539 1
. spectacledhero 1
. squaredk2 1
. stache1 1
. stoopslife 1
. strictorganization 1
. strongllc 1
. substantial_hurry_25 1
. suclearnub 1
. suicidaleggroll 1
. sure-example-1425 1
. swannymatt 1
. swiss_confederate 1
. swissthoemu 1
. tacitus19 1
. teamredundancyteam 1
. techno-peasant 1
. terminal_laziness 1
. texasblum 1
. thailand_facts 1
. thatguythatguythagay 1
. thatwhichshinesforth 1
. thebestboner 1
. thebitlebowski 1
. thebowlofbeans 1
. thecurious0ne 1
. thehulotribe 1
. thenowl9 1
. theprodigalbootycall 1
. therethno2ndbest 1
. theyeatcheese 1
. thoushaltnotfomo 1
. three-polish-cowboys 1
. thuanjinkee 1
. tigawood 1
. timwmusic 1
. tmturbo 1
. tomr750 1
. toothache0 1
. traumerx 1
. travist85 1
. tricky-troll 1
. troyboltonislife 1
. truthman1990 1
. truuy 1
. tsokos 1
. turbulent_video_2723 1
. turtlesaur 1
. txstreet 1
. tyrolf 1
. ubiest 1
. urbandystopia 1
. usesbinkvideo 1
. vacremon2 1
. vashstamp3de 1
. vbuterin 1
. vechain_10_dollars 1
. vegetable-agent-6491 1
. visciousvenison 1
. vitalik-is-jesus 1
. vlatkovr 1
. vsesuk1 1
. washedupdiamond 1
. waste_statement_6404 1
. west_compton 1
. whatup1111 1
. whcrawler 1
. wmsy 1
. wompydonk 1
. yllfigureitout 1
. yogofubi 1
. zamicol 1
. zebradice 1
. zephyrflash12 1
. zkstx 1
. zoopzo 1
. zora 1

↑ Back to top ↑

Weekly Doots

Recordings:   Libsyn   |   Pods   |   Youtube   |   Spotify

Week #66: May 17, 2024

Listen Live | POAP Checkout

Special guest Waq joins us from Rocket Fuel, a daily summary of all the happenings in the Rocket Pool community.

Upcoming Guests

The morning roundup

View on Reddit →

u/hehechibby

Ethereum

u/usesbinkvideo

90,440 hodlers subscribed (+4)

u/Vinegar_Strokes__

$2949

u/the-A-word

0.044

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

While you walk the walk,

Remember to talk the talk,

Blockchain needs no stock.

Shitpost of the week: u/NeedlerOP

View on Reddit →

It is late 2026, total crypto market cap reaches $50T after 10 consecutive memecoin seasons, all cyclical rotations in the cryptocurrency market have been replaced by memes.

Top 10 - all memes. Dogecoin and pepe replaced BTC and ETH, both receiving an ETF while the ETH ETF is still awaiting approval due to volatility and underlying utility concerns.

BTC and ETH linger at the low end of the top 25, just under recent newcomers: SkibbidyToiletInu69420XL, Kek, and Gamestop (unrelated coin, not the stock)

A soft hard recession that doesnt land is forecasted by JPow, whose forward guidance is expected to reduce some of the froth and risk seeking behaviour in the markets. 

u/eetherway thinks that fully on-chain games are now possible

View on Reddit →

Posting directly here, as I was informed people don’t like clicking through to Twitter links:

Building a fully onchain game is stupid, and you could just do it with existing infrastructure without needing the blockchain… at least that’s what I’m told.  

After spending 3 years building a FOCG, here are some of the least known and most impactful reasons to build them:🧵

1. Peer-to-peer infrastructure for gaming

To create a player driven world, that enables play to flow between players without an intermediary requires significant infrastructure.

Traditionally this would be a set of servers that are rented/bought, maintained, and tooled by the gaming studio. 

While possible it is exorbitantly expensive, time consuming, and requires engineers to maintain. For an indie studio it’s likely not a great use of resources, hence why we likely haven’t seen it in traditional gaming. 

Building fully onchain significantly reduces cost and maintenance for teams which would otherwise make it prohibitive to build such games. 

Cost down, efficiency up

2. Blockchains give us a world computer

Blockchains like Ethereum have revolutionized the development landscape by enabling the creation of decentralized, peer-to-peer systems without the burden of maintaining costly infrastructure.

Teams no longer need to find independent solutions to develop applications that are universally accessible online without acting as intermediaries in transactions. 

This additionally helps eliminate many of the issues with “money exchanger” laws, as seen with platforms like Uniswap, where users transact directly, rather than something like Venmo that holds your funds. 

Reduces operation cost and maintenance needs ✅ Helps avoid potential legal issues ✅

3. Free Market & Asset Exchange

Blockchains enable more efficient markets by allowing users to own and control their accounts and assets separate from the game itself. 

While traditional companies can support the buying, selling, and trading of items within games, these activities are usually centralized and restricted. 

By fostering open markets where players can freely transfer items without fear of bans or deletions by the game studio, we empower players to determine the value of their goods. 

This model also supports asset trading across different games, enabling players to use their collected items to access new games through trading. Players can do this without needing to download new launchers, software, third-party applications, or create new accounts and spend additional money.

Free Markets ✅ Unrestricted trading ✅ Trading across game titles ✅


We could make cars powered by steam, but we don’t. We do this because it would be impractical.

Building fully onchain creates a new way to build games, and with recent advancements to scaling, blockchains have become incredible efficient in enabling this new way to build.

Lastly, these types of games whether built on traditional rails or with blockchain still need to be fun.

So even if one day we all believe building onchain games for specific game types is the best solution, it’s up to the studio to craft experiences players want to play.

Curious to get your thoughts :)

u/cryptOwOcurrency tells a clever story to explain why Ark Invest may have intentionally put staking in their ETF only to remove again

View on Reddit →

There once was a famous interior designer who served many high value business clients. She noticed her clients always wanted to have a hand in the design - after she laid out their place, they would always want to change it a little. They’d want it to ”pop more”, or “feel more chill”, or “more cozy”. This slowed down the designer’s job significantly, as she had to make a costly and time consuming second design pass to appease the client.

After a pattern of this happening, the designer realized that her clients always felt like they needed to make at least one change to her designs, to convince their bosses that they added value and weren’t just standing around and letting a contractor make all the big decisions.

It was upon this realization that the designer had a brilliant idea. From then on she added a wooden statue of a duck to each of her new interior designs. Her new clients, when shown these designs, would say “that looks good, just remove the duck statue.” As this was an easy fix to make, it saved the interior designer a considerable amount of time and effort in redesigns. Her new designs were always approved, minus the duck, and she never had to do a second design pass again.

ETH ETFs are the design, staking is the duck, and the SEC is the manager who needs to feel like they had some input.

u/KuDeTa gives us an update on Aestus

View on Reddit →

I wanted to give a short update on the EigenLayer Aestus AVS Operator - especially since the $EIGEN “stakedrop” (lol) went live earlier today. Over the last 3 weeks or so we’ve attracted about ~3000ETH from ~100 participants. This is a pretty reasonable(!) start and we’re obviously tremendously grateful for the continued support from members of this and the wider solo-staker community. That said, we’re also keen to grow this significantly over the next 6 months.

u/AustonSt and I have been pretty focussed on onboarding with all the AVS that will have us. The vast majority require explicit whitelisting so communication is essential. Many of the teams have been very straightforward to deal with, but there are others who make contact very difficult, or will only accept KYC’d (institutional) capital. I’m not surprised by this, but it’s kind of depressing, and it’s important we push back against this as much as we can.

While slashing isn’t live (and it looks like it will be some time before it’s developed) - the risks to Operators and re-staked capital is pretty small. But it will grow, and we’ve been having conversations with a few neutral participants who are interested in figuring out how to manage this. The independent development of a risk framework seems important and we hope to be able to share some kind of plan in the near future.

For now, we’re publishing a table with an overview of our status and progress with various services. We’d eventually like to be able to share a proper dashboard with live data, but this is some way off. We’re also opening a Telegram channel for those of you who want to help us coordinate, receive updates or just want to ask us questions.

u/DaW_ shares a cool new airdrop checking tool they just built!

View on Reddit →

Today I launched my first project built on Ethereum, this is the best day of my life. The name is AirdropScan, it’s basically Etherscan for airdrops 😊

What’s the airdrop you can’t wait for?

u/Syentist shares some thoughts on a recent thread by hasu

View on Reddit →

This recent thread by Hasu has a lot of great points on what Lido has been doing to better align with the ethereum ecosystem this past year. One specific comment - which encourages Lido to participate in Ethereum roadmap research has received some negative comments from community members which makes me scratch my head

  1. “a player with a financial interest should not take part in Ethereum research and governance”. Wut? We literally built a monetary coordination platform, Ethereum, where every single user has a financial incentive. And then we say that if you have a financial incentive, you can’t take part in governance? Makes no sense to me

  2. “a large player should not be allowed to take part in Ethereum governance”. If that view is normalised, that large players - who are by definition successful players in the ecosystem - are discouraged from contributing to ethereum’s future, who does that leave? One could make the argument, via the process of elimination, that then we are encouraging unsuccessful players, people who never had the competency nor the courage to spin off their own project or to do it in a successful manner at scale - we instead encourage them to exert their voices. That is instilling a negative selection process which leads to a poorer quality of discussion within the Ethereum ecosystem. Besides that, large players have a wealth of information and experience pertinent to our ecosystem, and it’s unwise to exclude their voices.

The key point I think we should be mindful of, is that success isn’t a bad word, having financial motives isn’t a bad word. Using your protocol dominance to arm twist other players to get your preferred outcome, or using your financial competency to bribe other players to get your preferred outcome, outcomes which are at odds with the long term good of Ethereum - these are what needs to be focused on. But if a protocol isn’t engaging in such behaviour, they certainly should have a seat at the governance table.

u/Tricky_Troll relates the recent auroras to Ethereum

View on Reddit →

I saw auroras from mainland NZ last night. They weren’t exactly spectacular without a long exposure photo to bring out the colours, but it was still pretty incredible. Now before you say this is off-topic, yes, this is related to ETH.

It would seem to be something which doesn’t get much attention, but likely since it is a developing thing which may just be noise and not a sign of things to come. However, there is an increasingly alarming trend which started about 150 years ago which has gone exponential in the last 20-30 years. This is the shifting of Earth’s magnetic poles. Now this isn’t unprecedented. It has actually happened hundreds of times in Earth’s history, but it is the first time since we have had advanced technology. Now, if the trend continues and Earth’s magnetic poles shift, we could be in for a few hundred years of a reduction of Earth’s geomagnetic shield which protects us from the sun’s damaging radiation. What this means, and what we have already seen, is that the solar storms which have recently hit Earth are causing more electromagnetic disruption and auroras than storms of their size historically have because our shield is in a weakened state. This can result in localised blackout and infrastructure failures across the world. While a global outage is very unlikely, these localised impacts can be very disruptive to the global economy. This weekend alone dozens more platforms and services have had outages than usual and if any of these services are core infrastructure like banking or credit card services then the economy can grind to a halt.

This is yet another reason why we need Ethereum. We need resilient payment and settlement networks. Otherwise, our ever increasingly unstable world will perpetuate more instability. Especially as we constantly increase our reliance on a larger number of infrastructure systems from roads, to power, internet, AI and beyond. We have a unique chance to solidify one of the flimsy legs which hold up society and replace it with a rigid, decentralised and resilient system.

Edit: If you want to watch a good YouTube video on the ongoing pole shift and what it might mean for us, I highly recommend this one:

YouTube link: https://youtu.be/ridb9olnqLc

Watch privately: https://invidious.fdn.fr/ridb9olnqLc

u/TheCryptosAndBloods nearly fell for a phishing scam

View on Reddit →

All these years in crypto and still just barely avoided falling for a phishing scam toda

These guys are so incredibly good it’s scary - I had my Ledger in my hand to sign the fake transaction and there was juust enough friction to drop me out of autopilot and make me think “what is actually going on here”.

I have some liquidity in Reya Network - it’s a (legit) new trading optimized L2 with a “shared liquidity” model for all DEXes on the L2 and some major backers. It’s launching this week but liquidity deposits for points have been open for some weeks.

I went and checked my rank on the Leaderboard on the (real) reya.network site, and then I thought “Oh they are launching today - better go check their Twitter to see what’s going on”

So I checked their Twitter update, and at the bottom of their (real) thread about the new Session and points etc, there was a final tweet saying something like “check your position on the Trading Leaderboard for Session 1 here” and I thought “Oh, is this a separate leaderboard to the liquidity leaderboard I am on? Better check it out”

[NOTE: the final tweet was of course from a phishing account but I only noticed when I checked later - the language, wording, PFP etc, were all perfect except for a one-character difference in the username]

So I click over to the [FAKE - DO NOT CLICK - “Reya Labs” site].

But the psychology was really interesting to kind of think about how someone like me who should know a lot better can still get taken in and the brain smooths over all the cognitive dissonance “warning” moments until they piled up enough that I was forced to acknowledge it..

u/coinanon breaks some bleak news and u/eth2353 dives in deeper

View on Reddit →

u/coinanon:

Alexey Pertsev (Tornado Cash dev) is found guilty in the Netherlands and sentenced to 5 years in prison. That seems crazy! Someone please tell me that they proved he did more than just deploy open source code to mainnet.

https://www.coindesk.com/policy/2024/05/14/tornado-cash-developer-alexey-pertsev-found-guilty-of-money-laundering/


View on Reddit →

u/eth2353:

Court statement in English available here - https://www.rechtspraak.nl/Organisatie-en-contact/Organisatie/Rechtbanken/Rechtbank-Oost-Brabant/Nieuws/Paginas/Developer-of-Tornado-Cash-gets-jail-sentence-for-laundering-billions-of-dollars-in-cryptocurrency.aspx

Well, this is a sad day for crypto, privacy and building permissionless systems in general. Some excerpts:

Tornado Cash functions in the way the defendant and his cofounders developed Tornado Cash. So the operation is completely their responsibility. If the defendant had wanted to have the possibility to take action against abuse, then he should have built it in. But he did not. Tornado Cash does not pose any barrier for people with criminal assets who want to launder them. That is why the court regards the defendant guilty of the money laundering activities as charged.

Tornado Cash is not a legitimate tool that has unintentionally been abused by criminals, as the defendant presents. Tornado Cash suits criminal use.

He also behaved lazily when victims of hacks or investigative authorities reported to him, simply stating that he could not do anything for them. He continued the development and exploitation of Tornado Cash with blinders on. He chose to look away from the abuse and did not take any responsibility.

The court follows the prosecutor’s demand and sentences the defendant to an imprisonment of 5 years and 4 months.

I don’t fully remember the technical details but IIRC the contracts, once deployed, were not upgradable, so him saying “he could not do anything for [victims of hacks or investigative authorities]” was the truth right?

u/haurog explains the evolution of Ethereum’s sharding vision

View on Reddit →

u/etheraider has mentioned sharding yesterday and when it will come. Sharding as a scaling solution been discarded at least 3 years ago. I first wanted to write a short reply but it got longer so I post it here.

Sharding was the idea, that the Ethereum chain will be split up into different shards with each shard being able execute transactions. The core of the idea was that nodes would only have to validate a subset of all the shards leading to an increase in throughput without pushing home stakers out of the network by increasing resource demand. The problem in this approach is that shards cannot easily communicate with each other which complicates transactions as one would have to make additional transactions to move from one shard to another. Overall it became a rather complex solution.

With the advent of rollups, people found that this allows for an easier and even more scalable solution. So in about 2021 the original sharding concept was abandoned and scaling through L2s is now considered the way to go. In my understanding there still is the concept of shards, but they were renamed to blobs and they cannot execute transactions. So the nodes do not have to run and validate the transactions which are stored in blobs. Rollups do this.

With the dencun upgrade we got the first iteration of this scaling plan with EIP-4844 (proto-danksharding). This allowed scaling of the Ethereum ecosystem by about a factor of 50 to 100. Currently the rollups do around 10 times as many transactions than Ethereum does, so they still have room to grow. At the moment, we allow to have 3 blobs per block on average for rollup transaction data, which seems to be like a good value. It increases the load on nodes, but not so much to compromise decentralization. I guess there will be more analysis done in the coming months to see if we can increase the number of blobs a bit.

The next step in the L2 scaling roadmap is danksharding, which will allow nodes to only store a subset of blobs for a limited time but still make sure that all the data has been published by the rollups using data availability sampling. This will increase the available blob space by at least another factor of 20 without increasing the load on nodes by the same amount. The details of this upgrade is very much being worked on and as far as I understand peerDAS (EIP-7594) is currently the best proposal to achieve that goal. Not sure if peerDAS is already the end goal or just a minimal implementation of data availability sampling.

I am not sure when this is planned to be implemented, but if it will not come in the next Ethereum upgrade. But maybe in the one after that. The good thing is that going from proto danksharding to full danksharding does mostly (or even only) involve changes in the consensus layer, which means there is less coordination necessary between the different teams.

In addition there will be improvements of the Execution layer as well (like verkle trees, statelessness, history expiry and snarkifying the base chain). Those improvements will allow to increase transaction throughput on mainnet while keeping the resource demand for node operators in check. None of these will 100x increase throughput over night, but together they will massively scale Ethereum in the coming years. If you want to catch up on the current roadmap the bankless podcast from February does an amazing job explaining the different steps: https://www.youtube.com/watch?v=jqVaycBINdc

u/benido2030 shares a tweet which does a really good job at summarising the state of the crypto market

View on Reddit →

Tweet by Crypto Cred

Part of the reason there’s so much disagreement regarding where we are cyclically is because returns have been so unevenly distributed

Additionally, a lot of previous cycle signposts have been absent and/or entirely invalid

The conventional ‘risk curve’ trade of BTC —> ETH —> large caps —> mid caps —> shitters has been unprofitable. Barbell portfolio of BTC + memes has dominated.

ETH/BTC has been remarkably weak, whereas historically it has benefitted from a risk on environment. This has also spilled over into ETH L1+L2 proxy trades being suboptimal. ‘Crypto as a casino’ thesis has been captured by memecoins on SOL (vs previous cycle’s casino was NFTs on ETH).

Memecoins have been consistently leading and rotating from that sector has been costly, whereas memes pumping has historically been an indicator of being late in the cycle.

BTC hasn’t offered a series of previously ‘standard’ bull market pullbacks of 30-40%. This has created a bunch of early sellers/sidelined traders. Also led to proliferation of left-truncated cycle discourse, shorter cycle, super cycle, and other heterodox variants.

There are so many new tokens (amplified by memecoins) that “crypto bull market” no longer means “everything that’s listed goes up for weeks/months” - the rising tide has not lifted all boats and there are very clear winners vs losers (and they’ve broadly stayed the same, no massive rotations e.g. ETH eco/L1+L2 trade been weak relative to SOL for ages, with exceptions).

Taking all this into account, it’s entirely plausible that you have Trader A who rode BTC, SOL, and memes and feels like stuff is hot and needs to cool off, whereas Trader B has barely made any money and feels like stuff hasn’t even picked up yet, and everything in between.

We all have different portfolios, trading styles, time horizons, risk appetite, volatility tolerance, and a bunch of other stuff.

Most of crypto Twitter thinks crypto will go up and to the right over time, we just disagree about the fine print.

Thoughts? This seems to me to be a pretty good summary of this cycle so far. What we have seen at the end of last cycle and in the bear market was that some stuff still pumped while other assets were down only –> micro cycles. Is this cycle the one where things really are (more) uncorrelated, both from stocks etc. but also within the crypto ecosystem?

u/Set1Less shares a surprise new crypto court case which u/PhiMarHal has more on in another thread

View on Reddit →

u/Set1Less:

https://www.justice.gov/usao-sdny/pr/two-brothers-arrested-attacking-ethereum-blockchain-and-stealing-25-million

Two Brothers Arrested For Attacking The Ethereum Blockchain And Stealing $25 Million In Cryptocurrency

First MEV related bust.

Wild. Sharing some snippets from the indictment as Im reading

90% of ETH validators use MEV boost

These guys basically stole $25m by attacking MEV bots, they ran their own validators and when it was their turn to validate, they meddled and tampered proposed blocks with false signatures

Juicy parts Daddy Gensler may not like

The conduct described herein relates to the Ethereum Network. Among other things, Ethereum is a decentralized blockchain that is used by millions of people across the world. Since at least 2023, on average, there are more than one million daily transactions on the Ethereum blockchain. No central actor runs the Ethereum Network. Instead, the Ethereum Network is run through a decentralized network of participants across the world that operate based on a set of rules and protocols. These rules and protocols are typically executed through “smart contracts”-self- executing computer protocols with if/then conditions-which enable transactions to take place on the Ethereum blockchain without the need for a trusted intermediary. Ether or “ETH” is the native cryptocurrency on the Ethereum Network.


View on Reddit →

u/PhiMarHal:

The MEV situation worries me much more than any price action.

https://www.justice.gov/opa/media/1351996/dl

Those guys who outsmarted MEVbots about a year ago, baiting them to extract $25M of their money?

They’re now on trial for “conspiracy to commit wire fraud”.

Steal billions from small users through automated sandwiches -> A-OK.

Steal millions from extremely wealthy sandwichers through a clever exploit -> straight to jail.

It has been clear for a long time the MEV landscape is filled with well-connected, well-capitalized tradfi individuals looking to extract maximum rent out of our ecosystem. Conspiracy to commit fraud, you say? I would love to have full transparency on every MEV actor out there and their doings. Would not be surprised if it turned out some of them pushed pro MEV sentiment through various means over the years. For the acceptance of robbing users as an unavoidable fact, or even worse, a desirable property, seems absurd at face value.

Week #65: May 10, 2024

Livestream Recording | POAP

Special guest Prince Jindal joins us from Lantern Finance, a new liquid staking protocol.

Announcements

Upcoming Guests

The morning roundup

View on Reddit →

u/LifelongHODL

Ethereum

u/AuspiciousEther

€2812

u/Zeebrasurfer

0.048

u/usesbinkvideo

90,430 hodlers subscribed (+5)

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Feel the blockchain beat,

The protocol is complete,

Rest is obsolete.

Shitpost of the week: u/HauntedJockStrap88

View on Reddit →

Idk man. I doubt that Blackrock, Van Eck, Franklin Templeton, Stripe, Mastercard, Visa, PayPal, JPM Chase etc. being interested in ETH is important.

We probably won’t even see ATHs again, or even appreciate in price from here.

When Larry Fink talks about instantaneous guaranteed settlement and the tokenization of securities I’m sure he’s talking about Cardano or Solana.

I’m sure Base deploying as a layer 2 on ETH instead of as an alt Layer 1 that’s just noise.

The United States Federal Government being concerned about DeFi as a national security threat is obviously not the most bullish thing imaginable. They totally always embrace technological innovation quickly and without question. If ETH was truly as disruptive (and lucrative) as we’ve all been suspecting the United States Federal Government certainly wouldn’t be raising an eyebrow at it. No sir.

Sell it all. ETH isn’t just a security. It a mega-doodoo scary evil security that is also a shitcoin of no importance and will clearly go to 0.

u/charitablechair sees web 2 thinking in airdrops

View on Reddit →

After the EIGEN token announcement (and subsequent backlash) I’ve been thinking a lot more about how so much in the world of crypto right now seems to be the product web2 thinking i.e. VC money, financialized governance, etc etc.

One big plot hole with this web2 thinking, as I see it, is that it’s really hard if not impossible to create a moat in crypto. Liquidity is never truly locked, vampire attacks are a thing, etc. etc. I personally believe that the crypto future that we were promised is not built on the back of for-profit, but rather autonomous public goods that are built and then kind’ve just put out into the world. Therefore this is a misalignment.

Adding to this rift is the fact that it seems VCs have figured out the crypto equivalent of the traditional attract->extract model. Since it is so hard to “turn a profit” in crypto, the main way to get paid is via this charade we call governance tokens. The attract cycle is building up TVL and hype, and the extract cycle is a user-hostile TGE and exit. This would explain…

  1. Tiny and arbitrary allocations (5-10% for the community, airdrops for random NFT projects, etc.)
  2. Opaque snapshot and TGE dates that of course insiders know beforehand
  3. No withdrawal functionality until after TGE as a way of inflating TVL numbers (looking at you Renzo)
  4. Non-transferable tokens (that is, until VCs are vested)
  5. Arbitrarily limiting regions and putting serious effort into blocking VPNs

The EIGEN announcement is of course disappointing, but in retrospect it’s obvious that it would go this way.

The silver linining in all this is that once the dust settles we’ll find that some things did get built with all this VC money after all. Those interested in creating public goods can take what’s been built, clone it, and undercut it. Since I don’t see a shift in how we fund crypto projects anytime soon, this is what I rest my optimism on.

u/PhiMarHal does their due diligence on the Swell L2

View on Reddit →

The other day, one of us asked if depositing assets into Swell L2 was safe.

I took a look today!

Swell L2 isn’t live, so currently you’re depositing into a staking contract. The code looks clean and intuitive.

If you deposit rebasing assets like eETH or stETH or plain ETH, your deposit is first routed through a zapper contract to convert it to weETH, wstETH or wETH.

The zapping contract is here: https://etherscan.io/address/0xbd9fc4fdb07e46a69349101e862e82aa002ade0d#code

There’s no issue with this contract. It’s immutable, no access control, everything is clearly defined.

Then in either case, your assets end up in the proper staking contract.

The staking contract is here: https://etherscan.io/address/0x38d43a6cb8da0e855a42fb6b0733a0498531d774#code

It’s a simple contract with a couple functions. When your assets are inside this contract, they are dormant, not used for anything and not exposed to extra risk.

Only you can deposit and withdraw your assets.

**EDIT: relevant update -> u/ennui85 points out the emergency function can’t actually touch your deposits. That was a misread on my part.

This means the contract is 100% safe, much better than my “fairly safe” assessment.

– end of original post below –

Save for one emergency function: the “owner” of this contract can withdraw the full balance of any allowed token inside the contract.

This “owner” leads to a Timelock: https://etherscan.io/address/0xCa2DF225ba3c4743E02611EC423FaAC311dEEEd4#readContract

The Timelock delay is set to 259200 seconds (3 days).

The “admin” of this Timelock leads to a 4-of-6 multisig: https://etherscan.io/address/0x20fDF47509C5eFC0e1101e3CE443691781C17F90#readProxyContract

Overall I’d rank this as “fairly safe” = less safe than Uniswap, but safer than PT/YT on Pendle and safer than money markets like Aave/Compound.

The 3 days delay on owner withdrawals should be a guarantee against any wrongdoing, provided you assume between $500M of TVL some depositors will monitor the multisig (or do it yourself). The code is simple, in a good way, your assets simply sit in this contract. There is no upgrade function of any kind, presumably the bridging to Swell L2 will be an entirely manual process once it goes live (which is also a good thing).

u/back_to_samadhi returns from a long time off and wants to catch up with how Ethereum is tracking compared to its initial vision and u/pa7x1 and u/hblask share the important stuff.

View on Reddit →

u/back_to_samadhi:

Invested in Ethereum in the 2014 ICO. I have been away for a long time. I’m currently unwell and do not have the energy to try to get up to date, I barely understood how POW worked.

Whatever Ethereum is today, does it still have promise of building a new financial ecosystem and being the backbone of finance? Mass adoption will come if the correct/needed applications are being built.

But at a quick glance the space seems to be slightly empty, and all I see are airdrops and yield farming, when Ethereum and in general crypto has (had?) the potential to create a real revolution and change humanity.

Can someone direct me to good sources of information I could read or watch to catch up with what has been happening since 2021? As I said, I’m very unwell and do not have the mental sharpness or strength to go in depth right now…even if I want to.

Ever since August 2015 I’ve been following the ETHBTC ratio, and although I’m not worried, I am starting to think perhaps my timeline for seeing a ratio bull market is farther away than I had hoped…perhaps this still needs a few years. Or perhaps this is a retest of the ratio breakout from 2021 before moving higher.

But we need a catalyst, and airdrops along with yield farming won’t cut it. Ethereum needs to prove that a new financial system is on the way before a bubble similar to the dot com bubble is possible. Perhaps that’s here, hence I’m asking for information to help me build an objective narrative. Thanks, and bless you all with good health…its much more important than any of this.


View on Reddit →

u/pa7x1:

After the latest update that made rollups economically viable, Ethereum is ready for primetime. The vision for a new, efficient and transparent backbone for finance that dis-intermediates middlemen is finally possible technically. Before we were limited to 10-20 transactions per second which is clearly insufficient to meet global settlement needs. Right now we have room for around 300-500 tps and the scalability roadmap will keep pushing it further to the order of 100K tps.

The most significant roadblock right now is regulatory, the SEC and current US administration is very antagonistic of crypto and Ethereum in particular. But technology is unstoppable, once the genie is out it cannot be put back in. These hurdles will be overcome too.

If you have not been following you can hear it from the mouth of Blackrock’s (biggest asset manager in the world) CEO himself. https://www.youtube.com/watch?v=HTveRlW7QPo

Wish you the best, take care of yourself.


View on Reddit →

u/hblask:

I think people always look to the consumer/retail side to see if Ethereum is living up to its potential, but I think that is a mistake. I think the real potential is in the commercial side of things, such as the stuff Paul Brody is doing with EY. Just google “Paul Brody EY Nightfall”. There are tons of videos.

The tl;dr is: EY is working on a set of business tools for supply chain tracking, so that companies can track every input and output of the supply chain from raw materials to consumer. Additionally, companies can ask for bids over the blockchain, award contracts, track performance, and do all the necessary accounting and payments.

They thought it would take about a decade to really build momentum – like turning a battleship, you need a lot of lead time. I believe we are about halfway through that, and many companies are trying it and starting the transition.

u/issac_hunt1 shares our biggest frustration right now and u/cryptrd285 shares news behind it

View on Reddit →

u/issac_hunt1:

The “regulation by enforcement” is so frustrating. You cant seriously tell me Coinbase, Uniswap and Metamask are the bad guys in crypto.. when so much blatant insider trading, pump and dumps every single day. It suggests that there is just some ulterior motive

Robinhood is one of the largest non-crypto companies to get into crypto in a big way (I mean for retail they have wallet/dex, and please the BTC ETF doesn really count in this), and now they are being sued. This is just intimidation and send a message to rest of the companies that if you get into crypto, you will be sued

Its no wonder no other big company has even tried. Last cycle there was genuine hope that companies will push into crypto. Nike, Coke, many played around with NFTs. Reddit came up with tokens. This cycle many more were gonna experiment….but now do you think a big company like Apple or Google will launch even a crypto wallet? If they dont know they are going to be charged as a “broker dealer” or “clearing agent” or “unregistered security” or whatever

Its just to kill crypto …. Its all part of the agenda to stifle any growth of crypto


View on Reddit →

u/cryptrd285:

SEC sues $COIN and claims SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO are securities

$HOOD gets sued and only list BTC, ETH, DOGE, SHIB, AVAX, LTC, UNI, ETC, LINK, XLM, and AAVE

So either SEC is making it up as they go or they missed a lot of “securities” when they sued coinbase

https://twitter.com/UncleRewards/status/1787493240767140087

u/krokodilmannchen is now a mod of r/EthFiance

View on Reddit →

Completely offtopic but she said yes today. :) 🌟

u/Syentist covers their favourite recent Ethereum podcast series

View on Reddit →

Infinite Jungle podcast by Christine Kim (she used to do the tweetstorms after each ACD call back in the day) is easily my top podcast on the Ethereum ecosystem lately. Beats out the Daily Gwei which was my previous must-listen

There’s two 30min episodes a week, the first which covers what the core devs decided in the previous week’s ACDC/ACDE call, and the second which interviews someone from the Ethereum ecosystem.

The best part is she has a way of explaining hard to understand concepts almost like a school teacher - I’ve learned so much about account abstraction, Verkle tries, the EVM, EOF etc, even despite having a rough understanding of these areas already.

u/llamachef shares a cool product they have been using since ETHDenver

View on Reddit →

EthDenver follow up regarding Exponential.Fi, which was one of the stalls in the hall and had an offer for those that signed up during EthDenver. The offer was for those that verified by the end of the gathering, deposited and held the investment for 60 days, those that deposited 1,000 USDC got 100, and a 10,000 deposit got 1,000. Just got passed the 60 day mark and got the offer paid out, so that’s neat.

The Exponential product, in my view, is trying to make defi appear through a more traditional investment bank wrapped. You login, do the KYC and all, and can either deposit from your Bank through Bridge or send via an Eth wallet, on mainnet, Arb, Polygon, and others, and you can send Eth or usdc. Once deposited you are presented with a variety of portfolios and projected APRs to invest in, denominated in currencies like eth, BTC, stables or some alts. They have pretty charts and stuff, and easy to understand descriptions of what’s being invested in and the risk (and I just found you can click on “Full Report” to get a detailed breakdown, like quality of code, usage, reliability and more, and links to the actual defi site and a discord to discuss), like USDC-Across bridging, the Arb TriCrypto, etc . Pretty easy to invest into something, isn’t instant like defi, I suspect they delay a day or two to try and batch transactions. Once invested it shows your average return and projected, again with charts and percentages. Pretty slick overall.

I like the product for a couple reasons. First, it keeps (and kept) me from doing wilder defi things because I knew I had to invest for the 60 days. It also allows automatic reinvesting of profits, like a traditional investment fund. Will probably keep my investments there since it pretty much was funded with eth profit taking. It’s a very nice site and I don’t need to be doing lots of wallet approvals and transactions to do anything. I’m assuming the tax report will be pretty nice when the time comes. And hey, they followed through on their 60 day promise of a USDC reward and I can’t be sad with free USDC.

Cons, though not super cons I guess. KYC with ID, so very tradfi. Also, for some reason you can only withdraw in the same amount as you deposited, you can’t divide it up, which is weird cause I can do that with stocks and the like. So I’ve got the ability to withdraw my whole initial deposit, or my profits. The fee page says they can take up to 1%, when I looked at mine it said 0.2%, so a positive in understanding the fees involved, but no variability for onchain gas or timing to make it cheaper.

Not shilling (the majority of my defi is still via wallets), but just think it’s a good way to take defi into the tradfi space.

u/benido2030 introduces the Ethereum Defence Alliance

View on Reddit →

Good day EthFinance,

I would like to share a new initiative: The Ethereum Defense Alliance. So what is the Ethereum Defense Alliance or EDA?

We are a group of individuals and entities with the goal of protecting Ethereum against risk vectors and fostering a robust and sustainable network.

The EDA was initiated last year when the threat of Lido was even greater than it is today and as you all know it has evolved since then. Some EthFinance members like u/hanniabu, u/bob-rossi, u/minimalgravitas and myself are EDA Stewards and we are trying to coordinate people and ideas. There are already many more members and entities that have joint the EDA.

We saw the power of coordination and importance of governance to protect the network. The EDA’s mission is protect Ethereum from centralization and risk vectors in every shape of from through:

We believe this community understands the risks as well. Basically the search for delegates is/ was already one of the EDA’s initiatives. But governance is only a means to an end and there is obviously more than that. We are looking forward to your input. The goal is to become even more proactive and drive changes before threats even show up. If you have any questions, you can post them here, contact one of us or use the contact form on the EDA homepage.

u/asdafari12 has the latest US regulatory shenanigans

View on Reddit →

https://x.com/CodyCarboneDC/status/1788263944034934964

Even if there are bipartisan pro-crypto agreements in congress, Biden is prepared to veto it according to a press release from the White House today on one such potential agreement that is being voted on later today. Is this how democracies should work?

Basically, the SEC issued guidelines (SAB 21) that banks, brokers-dealers, and many other entities can’t custody digital assets. They did so without first asking for comments or coordinating with other agencies.

See link below for full reasons given why they want to nullify the SEC SAB 21. It is a good brief read that makes sense to me. Risks are also bigger if all custody is concentrated to Coinbase.

https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409242

Week #64: May 3, 2024

Livestream Recording | POAP

Special guest Swagtimus joins us from Scroll, an EVM-compatible ZK rollup.

Upcoming Guests

The morning roundup

View on Reddit →

u/hehechibby

Ethereum

u/FrenktheTank

$3000

u/TimbukNine

0.05025

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Time to sue Gary,

It’s not even that scary,

The man can’t parry.

Shitpost of the week: u/doomfuzzslayer

View on Reddit →

As a marketing gimmick EL offers an F-35 fighter jet for some seemingly impossible amount of points. Rogue degen discovers a levered YT exploit - obtains required points. EL sued and forced to provide the jet -degen learns to fly it. F35 with ETH symbol appears over Ukraine - Russia requests cease fire. Jet appears again over Iran then Israel - both sides lay down arms. Same jet appears over San Francisco - solana headquarters hit by mysterious electronic warfare attack. Solana goes down for 17 days - SOL token does a 5x (it’s still in beta guys). Degen closes levered long and pockets 320 million - retires - two decades of world peace ensue.

u/benido2030 has an important warning to anyone taking on extra risk

View on Reddit →

Guys, I am absolutely in favor of trying out new stuff, that’s perfectly fine and normal (and somehow incentivized). But please keep in mind: If you have no idea what the protocol or asset really does, you probably don’t understand the risks.

I am saying this today because of the liquidations yesterday and some questions in today’s daily, but I was already very surprised some months ago when some members here deposited (rather large sums of) ETH into Eigenlayer without understanding what it does, what this deposit does (or does not) do with your ETH, timelines, etc.

You all are obviously free to do stuff with your money, this is a permittionless industry, but I am a conservative boomer that cares for you. I don’t want you to lose money, because you fucked around and found out. You can lose money, we probably all do from time to time. But don’t risk too much of your stack in protocols and assets you don’t understand, for unclear upsides.

In a bull market you literally have one goal: Keep your ETH. The problem in a bull market. They all want your ETH. If you part with it, do so after spending some time really understanding what you’re doing and getting yourself into.

Boomer Bearnido out.

u/coinanon shares some top picks for the latest Gitcoin Grants round

View on Reddit →

This is a reminder that the latest Gitcoin Grants round is active. My picks for this round:

dApps & Apps

Web3 Infrastructure

Developer Tooling

u/haurog shares a big disappointment

View on Reddit →

Let me ramble about my biggest disappointment from the last year which is Eigenlayer.

When I first heard about it, the concept was a bit difficult to grasp. Once I started grokking it my mind was blown. Decentralized trust, where validators can start to run various services along their nodes and they can make truth statements about the world. It would lead to a world where we would be getting independent of centralized truth brokers. Projects could easily and trustlessly tap into the decentralized Ethereum network and start, for example, a decentralized oracle without having to kick start such a network on their own. It could even encourage the decentralization of the Ethereum network by giving small home stakers a better revenue than centralized operators as decentralization would have a value. Rainbows and unicorns everywhere. Obviously, I filled some of the gaps in my understanding and Eigenlayers very minimal docs with the best possible outcome.

Last autumn when I first saw the requirements for running the first AVS which is EigenDA, I realized that is not something just any node operator will be able to run on their node. Their delegated stake requirements made the problem even worse such that only a selected few operators will be able to run the EigenDA AVS.

Now, with EigenDA mainnet release, we have a few powerful entities like etherfi and other LRT providers which are the king makers in the protocol apparently having bilateral agreements with AVSs to make sure they can get the most profitable deals. The AVS operators have pretty much nothing at stake. If they loose money, they loose the money of the restakers, and meat space legal agreements will be the only thing keeping them in compliance. Not sure this is enough to be honest. All in all it is not much better than if projects outsource running their services to a service provider which will run stuff on a data center somewhere. The restaked assets were historically meant to be ETH on the beacon chain, which would directly map operators to their stake. Now, a large part is just ‘restaked’ LSTs and as far as I understand it soon could be any token. This is a far cry from the original vision. Not sure if it is good enough to even be long term profitable for restakers considering the nothing at stake risk for AVS operators.

EDIT: I love all the different takes and nuances. Thank you.

u/Fast_Contract has some more Gensler goss and u/Set1Less shares their thoughts

View on Reddit →

u/Fast_Contract:

“Securities and Exchange Commission Chairman Gary Gensler said Thursday that cryptocurrencies and intermediaries that allow holders to “stake” their coins might pass a key test used by courts to determine whether an asset is a security. Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties."

I wouldn’t say eth fits into that since you don’t gain anything from just holding it in a wallet, but Reth and steth certainly do.


View on Reddit →

u/Set1Less:

I think that a court if presented with the right facts, will find that a pure proof of stake consensus mechanism like ETH 2.0 does not infact satisfy the howey test, because there is no demonstrable common enterprise that is built into the protocol. Solo stakers who earn rewards from staking do so, not because another party does the work and they earn their share from others work, but because they put in the effort themselves and whatever rewards they earn are the results of their own work

I remain pretty confident that if this matter goes before a court, the court will have no option but to rule that proof of stake consensus mechanism by itself does not violate howey’s rule.

If it comes to other staking mechanisms like delegated proof of stake or liquid staking, then there could be various entities playing the common enterprise role. But in a pure pos mechanism, there is none. The rewards are baked into the network - like new issuances to fund the staker rewards, sync committee rewards etc.

If SEC were to make this claim in a court, I would be ultra bullish on a highly likely defeat for the SEC. Crypto companies arent exactly fucking around either, both Coinbase and Consensys have got the best law firm in USA to represent them, the calibre of lawyers is 2 or 3 leagues better than the muppets at SEC

u/asdafari12 shares a new feature on Etherscan

View on Reddit →

New Etherscan feature launched called Cards, in a special section. One shows unclaimed airdrops. It seems to be a cooperation with Bankless. I found it still listed STRK despite me already claiming and it didn’t give the ETHFI airdrop so it might not be 100%, but still pretty nice. Especially if you have multiple wallets, you can check them easily.

It also shows blockchain messages and token approvals - pretty nifty. Anyone can apply to Etherscan in a form with their project and they might consider it as a card, if it’s useful enough.

How it looks on Vitalik’s address below:

https://etherscan.io/address/0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045#cards

Edit:

Looks like Bankless hides a lot of the drops between a paywall. Not a fan of that.

u/Set1Less covers some really bad legal precedents which may be set in the TornadoCash case

View on Reddit →

Tornado Cash case. Government’s response to motion to dismiss

https://storage.courtlistener.com/recap/gov.uscourts.nysd.604938/gov.uscourts.nysd.604938.53.0.pdf

The gov is basically arguing that smart contracts are money transmitter businesses and should KYC users and run a BSA program.

This is real bad. If this sticks ( most likely does unless the judge specifically over rules these arguments) it means DOJ can go after any company or person that created a wallet or a dapp (smart contract) or any crypto product claiming they are unregistered money transmitters - irrespective of the fact that the wallet or smart contract doesnt allow them to control customer funds

It opens up the potential for a 6 AM FBI Open the door and arrest for anyone working in crypto

u/BazzRavish32 celebrates the one million active validators milestone

View on Reddit →

One Million Ethereum Validators Reached!!!

u/Wulkingdead is feeling a bit down about all the news and u/pa7x1 busts some of the FUD in a linkl they shared

View on Reddit →

u/Wulkingdead:

Damn reading yesterday’s reddit im feeling down…

Consensys complaint isn’t looking too good: https://reddit.com/r/ethfinance/s/Y0pWVVy3CM

Potential huge risk in the tornado cash case targeting smart contracts: https://reddit.com/r/ethfinance/comments/1ce6bam/comment/l1j4tzk/

R/cc has 2 top posts about vitalik talking about centralization and it’s filled with Ethereum hate.

And with the SEC being on a war with crypto,… Yes they are losing a lot but they aren’t done yet.

I hope this all turns out ok. Why is crypto investing never relaxed, it’s always stressful lol.


View on Reddit →

u/pa7x1:

I went over it quickly but I have a hard time to take them seriously when there are obviously in bad faith arguments. Let me pick the one that most quickly jumped to me while I was scrolling through.

At some point they make this argument:

And they go on a long tirade to argue against it as provably false. But the complete opposite is true. It’s a provably true argument. After EIP-1559, transacting on Ethereum necessitates ETH, this is completely unavoidable. The argument Consensys is using basically boils down to, to use the Ethereum network ETH is necessary. Going after ETH, kills the possibility to use the network. And this is true, even if you assume all the fancy goodies of account abstraction. Someone needs to pocket the ETH to transact on Ethereum, either the end-user or the wallet provider with account abstraction. Now let’s look at the arguments:

Can I install a fresh instance of MetaMask in my browser or as an app & generate a fresh Ethereum address with no ETH? ✅

Not a transaction settlement.

Can I go to EthCC or wherever & get a cool POAP dropped to this Ethereum address with no ETH? ✅

LOL, not a user transaction settlement. But someone is paying for that use of the network. If they kill ETH through regulatory maneuvers I can assure you, you will not be getting a POAP or anything in the US.

Can I login, check-in, connect to cool blockchain dapps, sites, friends, and spaces with my ETHless EOA that has my new POAPs on it, to maybe get more POAPs, or just to browse, or whatever? ✅

Not transactions on the network. And the POAP argument was just covered.

Can I sign messages & authorizations & authentications with my ETHless EOA? ✅

Not transactions on the network.

Heck, can I sign contracts with my ETHless EOA? ✅

I start to see a pattern here. 100 ways to say I can still sign stuff with my public key. Everything except actually using the network which is the argument Consensys was making.

Can I be served with legal process to my ETHless EOA? ✅

?

Do at least some of these interactions constitute “transactions on the blockchain”? ✅

Absolutely not. They are not transactions on the network. To transact on the network you must spend ETH, this is unavoidable after EIP-1559. EIP-1559 is what made ETH a commodity in the most literal sense. Is the commodity you consume to settle computation on a global settlement layer. Signing something with a public key is not using the Ethereum network. It’s not propagated nor settled on the network.

Do people do things like this onchain 🦊 and irl, even without ETH? ✅

?

Is this legally significant? ✅✅✅

Dunno if it’s legally significant but it is factually wrong.

EDIT: And to clarify why I think this article is written in bad faith. Whoever wrote it understands well enough the technology to very meticulously choose a niche use case of your public key (i.e. you can use it to sign messages) and conflate that with transacting on the network which is not. There is a lot of intent in whoever built this argument to confuse things, they are arguing for US-based users to not be able to use the Ethereum network, period. And they are willing to twist reality to get there.

u/hanniabu is disappointed by some of the influencers takes on EigenLayer and u/Tricky_Troll relates this to a wider trend he has been noticing

View on Reddit →

u/hanniabu:

It’s so frustrating seeing the marketing push happening right now with influencers on Twitter acting like Eigen Layer’s token is some amazing breakthrough.

They act like it’s some amazing new revelation that EL will have it’s own protocol rules and not affect Ethereum consensus. Like no shit, why would it have any bearing at all on Ethereum. And this is coming from people that I know are definitely smart enough to understand this, all using the same language, so the only reasonable conclusion is they’re getting paid to push this narrative.

When you have enough money you can create your own reality b/c there’ll always be people willing to bend their morals for payment.


View on Reddit →

u/Tricky_Troll:

I’m slowly giving up on meaningful things coming from the space beyond what has already been or is being built. Most things from this point onwards feel like they’re increasingly more disconnected from the core values of this space. Instead it’s VCs building yet another level of financial engineering just because they can. So aside from some less hype-y DePIN projects, a small selection of aligned L2s, teams working on FHE and other core values related projects, I’m getting pretty over this all. I look forward to the day where I can cash out at my target price and just perpetually stake my only validator node to do my part in keeping the decentralised vision alive.

u/austonst digs into the EigenLayer token whitepaper

View on Reddit →

I actually never put funds into any sort of EigenLayer restaking; while I was always interested in the concept, the points system and insane levels of hype for an unreleased protocol triggered some circuit breakers in my brain and I just couldn’t let myself participate materially. So congrats to those with access to a good amount of EIGEN, and my condolences to those who feel rugged by the distribution parameters and/or geographical/IP blocking.

The more interesting topic for me is the release of the EIGEN token whitepaper. The authors present EIGEN as having a critical role in restaking and I’d like to try to break it down a little.

Staking Faults

Restaking provides economic security to AVSs through the threat of slashing deposited collateral. If you (or more specifically, your delegated operator) follow the rules, you get paid. If you break the rules, you get slashed. But under the hood, slashing rules are encoded into smart contracts, and preferably the logic isn’t just “the AVS devs have complete power at any time to choose who to slash”. The contracts can be smarter than that.

Objective Faults

The paper looks at two different categories of faults, the bad things that would trigger slashing. These are objectively attributable and intersubjectively attributable faults. Objective faults are the more straightforward of the two. This is where the contract can directly verify that the fault occurred. Think of double signing: the contract can easily check that yes, the same private key did sign two different conflicting messages, and therefore committed a fault. Fraud and validity proofs can also fall under this category: someone does something malicious, someone else creates a SNARK proving it was wrong, the contract verifies it, and slashing occurs.

These are not always easy or possible to implement for an AVS, but detection and resolution of these faults is straightforward. EigenLayer with restaked ETH is perfect for this.

Intersubjective faults

Intersubjective faults occur when there is a generally agreed upon truth but it is not mathematically provable on-chain. The standard example is price oracles. The contract doesn’t know what’s happening in the real world. We can all agree that the current market price of ETH is ~$3200, but the contract has to find some way to get a price feed from a source it can trust. Maybe that would be an AVS with a decentralized group of validators casting votes about the current price. The majority vote wins, so if the validator set is sufficiently decentralized, the correct price becomes a Schelling point.

If everyone says ETH market price is $3k but I cast a vote saying it’s worth $10k, despite my number being much better, I’m not following the rules of the AVS. Anyone can look at actual market data and confirm that the price was actually $3k and that I’m in the wrong. But the contract itself can’t objectively confirm that $3k is correct and $10k is wrong. So it’s through agreement of the validator set, and my lone disagreement, that determines that I have committed an intersubjective fault. Other potential sources of intersubjective faults include censorship resistance/detection, data availability, and as a stepping stone in verifiable computation before proving can be fully SNARKified.

Tyranny of the Majority

Identifying intersubjective faults through majority votes works well… as long as the majority is honest and can all agree on the truth. There are a few ways this can break down. First is when a malicious attacker gains control of a majority of votes: they can trick the system into accepting an incorrect truth, and simultaneously slash any honest validators. Bribes make this possibility scarier. Second is when the truth itself is ambiguous, and honest voters may come to different conclusions. Maybe we’re giving Ethereum an oracle price feed of another chain’s native token, and that chain undergoes a contentious fork; which fork’s token price do we follow?

In the end, with the intersubjective on-chain voting mechanism having broken down, the system has to fall back on social consensus, usually implemented through forking. If a malicious majority is saying the market price of ETH is $1, the rest of the world knows that’s wrong, so we’ll come to off-chain social consensus to make a fork. The old system is abandoned, and at the social layer everyone agrees to move to the new fork, which likely introduces socially-agreed-upon state changes to slash the attacker and “unslash” any honest validators caught up in the attack. A forkable oracle could also do just that to mirror a fork in the tracked token.

Overloading Ethereum Consensus

So what happens in the case of EigenLayer when an attacker gains majority ETH control of an AVS with intersubjectively determined slashing conditions? We have actual honest Ethereum validators who could end up slashed and effectively (or literally, post-Pectra) booted from the Ethereum network. The social layer could come to the rescue again, but it would mean a hard fork of Ethereum itself to slash the malicious actors and restore the honest ones.

Vitalik wrote a well known blog post on this subject, referring to the issue as the overloading of Ethereum consensus. One of the greatest risks is that we get a repeat of The DAO, where disagreement on if/how the social layer should resolve an application issue caused the Ethereum chain as a whole to fork. It’s not too hard to imagine a situation where a large AVS gets intersubjectively attacked, an uncomfortable number of honest validators have their ETH slashed, and we once again have to decide between allowing some harm to the health of the network, or forking on behalf of a broken application. We really don’t want to find ourselves in a position where we have to seriously have that debate again, and EigenLayer needs to be careful to not enable that.

The EIGEN Token

The paper talks about social consensus from the perspective that tokens/projects have certain social conditions agreed upon during their initial setup phase that determine how to resolve intersubjective faults later on. Bitcoin’s community agreed on the longest chain rule for PoW consensus. Ethereum’s community agreed on its fork choice rule as well, but with a stipulation that the goal would be to move to PoS, an important decision during the “setup phase” that eased the social acceptance of the transition. Rollups and national governments also follow this paradigm. EigenLayer’s perspective is that allowing intersubjective restaking of ETH would be a violation of Ethereum’s setup phase–citing the same Vitalik post. They argue that intersubjective restaking in general requires a very specific setup phase where the entire community engages with the token with a very specific set of expectations around its principles and intended use.

So the answer: Design the EIGEN token specifically for the purpose of universal intersubjective staking. Design all AVSs so that all objective faults are backed by ETH, and all intersubjective faults are covered by EIGEN. In case of a failure of the intersubjective systems that requires social intervention and forking, that will be handled through the EIGEN token’s own forking system rather than overloading Ethereum’s social consensus.

Two Token Model

EigenLayer actually envisions a system that contains two tokens, EIGEN and bEIGEN. I’m not going to go into full detail about the tokens and forking behavior, but I can provide an overview, specifically of their V1 design. bEIGEN (b is for “backing”) is what is used internally within EigenLayer; it is what is actually staked with an operator and may be forked into different versions over time to resolve issues at the social layer. EIGEN abstracts that complexity away for the purposes of DeFi, providing a token that can be used without worrying about the forks going on behind the scenes.


View on Reddit →

bEIGEN

bEIGEN forking is pretty interesting. An intersubjective fault can still result in slashing, as usual, but each AVS must implement a system by which anyone can raise an alarm about a fault to suggest that there is a need for social consensus to resolve a dispute. If there is an issue, e.g. attacker controlling majority stake, a challenge can be raised in the form of an ERC20 contract fork of the bEIGEN token. So you end up with the old pre-forked bEIGEN1 and new post-fork bEIGEN2. bEIGEN1 holders can claim their bEIGEN2 for a limited time.

In order to raise a challenge, the challenger must burn a significant amount of bEIGEN1–this is the cost to them if their challenge turns out to be incorrect and bEIGEN1 remains canonical. The challenger must also tag a sufficient amount of bEIGEN2 tokens as malicious, these will be burned in bEIGEN2, and punish the attacker if the challenger is correct and bEIGEN2 becomes canonical. Once both tokens exist, the social layer takes over and through market price discovery, adoption of the tokens by AVSs and other protocols, etc, decides which token is correct and canonical.

Through this method, the need for a social layer to intervene in some intersubjective faults can be realized. Ideally, AVSs are designed to minimize ambiguity about which fork would be correct if you just check the real-world source of truth. So in most cases it should be obvious. But it’s probably unavoidable that some will be contentious, those will be more fun to watch play out and I’ll be glad Ethereum validators aren’t at risk.

Technical note: the reason why bEIGEN2 redemptions are limited-time is because it needs to be shorter than the withdrawal time in order to prevent an attacker from committing a fault, withdrawing, and claiming the bEIGEN2 tokens anyway. By having t_redeem < t_withdraw, the attacker has no way to get around their punishment. This carries the unfortunate design issue of putting a limit on redemption time. bEIGEN holders who delay may see all their value evaporate.

EIGEN

The EIGEN token is designed to be insulated from all that, because imagine what a nightmare that would be for DeFi integrations. Anyone with bEIGEN can wrap it to become EIGEN. The EIGEN contract provides its own governance to follow the various forks of bEIGEN and swap its contents to reflect its view of the canonical bEIGEN token. When unwrapping, it will only ever return the bEIGENx it considers canonical, not any other others. In short, if you hold EIGEN, you are trusting its governance system to accurately follow the canonical fork and in exchange don’t have to worry about the forks yourself. The obvious risk is that if governance is wrong or corrupt, you may end up holding junk.

V2 Tokens

The big change in their proposed V2 is that the EIGEN contracts become immutable, and so must also be forked to create a EIGENx to match each bEIGENx. This creates a sort of historical record of the fork history through the various contracts, which gives EIGENx holders the option to hold passively and later claim all the bEIGEN tokens along the fork history, while protecting them from malicious EIGEN governance.

This seems to hurt the DeFi usage of the token, as each EIGENx will remain its own tradeable token. I think only the most recent EIGENx will be used, as it’s the only one that could be actively wrapped from bEIGENx, so that would mean DeFi protocols would have to add each new EIGENx as they come out. But it’s still much more convenient than using bEIGEN in DeFi. At least with EIGEN there’s no pressure to redeem forks immediately; with bEIGEN if you don’t manage to untangle it from nested DeFi positions and redeem forks in time you’re screwed.

Conclusion and Thoughts

The big thing here is that ETH restaking will only be used as economic security for objective faults, while (b)EIGEN provides economic security for intersubjective faults. Intersubjective faults often require social consensus to resolve through a fork (e.g. The DAO) and can sometimes be contentious. So the biggest benefit of this system is that the Ethereum social consensus layer is not pressured to fork the chain in order to resolve issues with an AVS. Without this there’s a really good chance that a too-big-to-fail AVS would eventually get attacked and Ethereum would face a difficult decision about whether to fork to protect the honest stakers caught up in the incident, possibly bad enough to create an Ethereum Classic 2.0.

What is EigenLayer Actually?

The biggest downside to me is the breakdown of EigenLayer as an ETH REstaking platform. Anyone can deploy a smart contract through which you can stake an ERC20 token as collateral and earn rewards for computational services while taking on slashing risk in case of misbehavior. A general marketplace for buying and selling economic security, kinda neat.

EigenLayer is particularly interesting in that it uses ETH (which is possibly the world’s best collateral asset), and all of the ETH it has access to for security is also actively involved in regular ETH validator duties. For me it feels like there’s a fundamental difference there. That having your AVS’s economic security come from the same ETH that’s securing the network feels like you’re sharing in that same security, like you’re tapping into a particularly valuable, established set of actors. Ethereum validators are already committed to locking up their ETH to earn rewards, if EigenLayer makes it easy to access the same set of actors, you know you’re able to easily source high quality economic security for any project that’s willing to pay for it, rather than bootstrapping a validator set from scratch.

EIGEN isn’t “restaking”, it’s just… staking. To be fair, it’s a token designed to be the best universal intersubjective staking token, allows delegators to provide security to numerous shifting AVSs simultaneously, and will have tooling around it to make it easy for AVSs to adopt. So it’s the basis for a nice market for economic security for anyone who wants to buy or sell it. But in my mind it loses that critical edge that ETH has.

If EigenLayer dropped ETH altogether and EIGEN were used as the sole medium of exchange for economic security in their marketplace, I feel like I’d hesitate to use it. Wouldn’t you? To some extent I feel like EigenLayer gained a lot of prominence specifically because of the ETH restaking direction, and it’s a bit of a light rugpull to say “now that you’ve gotten on board, you have to buy our token in order to use half of our system”. Maybe it helps that the airdrop goes in part to ETH stakers who followed the incentives, making it easier for them to participate in both aspects? And maybe this is a necessary tradeoff to avoid overloading Ethereum consensus; there’s no other way?

Other Thoughts

Regardless of the above, I think it’s clear that EIGEN as a staking token is a riskier play for EigenLayer than ETH restaking. It means a notable increase in complexity and risk factors. The system described in the paper is in no way simple to design or implement. And this token’s close integration with critical staking systems means Ethereum as a whole has more risk exposure to Eigen Labs. Should we be putting more work into protocolizing EigenLayer in the same way that we’re working towards ePBS? In taking this step, EL further invite this discussion.

I have been a little frustrated with the rough state of AVSs at this point in EigenLayer’s launch, and how few of them have really described what slashing is going to look like (despite them being literally live on mainnet!). This announcement does explain it somewhat: AVSs are going to have to factor EIGEN and intersubjective faults into their designs, so it would have been unfair to expect them to develop their slashing mechanisms before this was described in detail. So cool, maybe they can work on their economics now finally. But at the same time… why the heck did EigenLayer deploy to mainnet before this info was released? Why?

I haven’t really done a deep dive on the theory of forking tokens, so I can’t really analyze that too deeply. But I have always thought it’s a cool idea, and enjoy reading about governance systems designed with forking as a central concept, e.g. The DAO, Nouns DAO. The paper draws comparisons to Augur’s REP token but doesn’t list others that really fork an application’s utility token. So this may actually be pretty novel, EigenLayer is huge and their forking system is very likely to be stress tested by malicious actors. I’m very curious to see how it plays out.

ty

And I guess that’s that. The paper is 43 pages, so I guess I shouldn’t feel too bad that this ended up so long. Always happy to explain more details from what I understood of the paper. And even happier to get corrections and different perspectives.

u/Set1Less sheds some light into why projects are geoblocking

View on Reddit →

One of the CT resident lawyers did a thread on all this yesterday. I’d suggest anyone having these questions to go through that

TLDR is that these are all legal issues. Its not that the project says lets take their money and defraud people or lets block US, that is a good idea for us.. No. 

Its all down to legal constraints, and projects trying to waddle through unclear regulations, protecting them from potential government charges. Projects tell users, infact make it very clear from the very start not to expect airdrops for the same reason - they dont want to trick people into thinking they are going to airdrop, but end up not airdropping few countries or jurisdictions because of sanctions or regulations. So they make it very clear there isnt gonna be an airdrop. If someone files a lawsuit - they can just point to the message posted 12 months ago in discord #Wen-token channel that says dont expect an airdrop.

Similarly, the locked is also locked to make the token appear decentralized from the start. There is a belief that a locked token has less chances of being labelled a security (since it has no value), so the project is airdropping a locked token. And they will want the community to create proposals to unlock it, add value to it

No doubt, for end users its painful - you locked $50k for 6 months only to find out you arent eligible and the whole country is blocked. At that point you are mad, and dont want to hear “legal thingies”. But the bitter pill is that all of this is due to not just unclear regulations but potential regulatory actions against projects/founders. US users must consider that there is a high chance they will be ineligible for most airdrops. So either they should not farm airdrops or acquaint themselves with gud airdrop claim technology (VPNs that work)

Of course, one will say that XYZ project 2 years ago airdropped us, and didnt do all this, you guys suck. Again the fact is that now the times have changed, regulatory environment has worsened. If you follow what is going on for the last 24 months, its kinda obvious…

Coming to Ryan from Bankless - I really dont envy his job of trying to explain all this to a crowd of people who think they’ve been sold short.

Week #63: April 26, 2024

Livestream Recording | POAP

Upcoming Guests

The morning roundup

View on Reddit →

u/DayTraderBiH

Ethereum

u/FrenktheTank

$3142

u/Equal-Jellyfish1

0.04889

u/syzygy00778

3,966 validators to go till a million active validators.

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Kindly taking note,

Blockchain is no antidote,

It is a lifeboat.

Shitpost of the week: u/Itur_ad_Astra

View on Reddit →

Ethereum: Undergoes infinity halvings. I SLEEP

Bitcoin: Undergoes one halving. REAL SHIT?

u/monkeyhold99 asks about which EigenLayer operators to delegate to and gets many great responses

View on Reddit →

Looking for a list or some comparison of safe Eigenlayer operators to delegate to. Any help?

I see Aestus mentioned here but not familiar with their background.

EigenYields seems sketchy upon further inspection.

Etherfi has like 8 different operators, but are they all the same?

I also see Staked.US and they seem to have a good track record, but they shut out Americans from airdrops so how would that work if you’re an American restaker?

Or, is it best to just wait until some of the larger exchanges like Coinbase and Kraken get in on the game?

u/STRTRD is doing the lord’s work reaching out to large staking providers still using the (almost) supermajority client.

View on Reddit →

(Reposting since reddit deleted last post because of links.)

Few weeks ago when finding of Geth bug was posted here I decided to contact top 11 majority-Geth/undisclosed staking operators listed on supermajority info (having 1% and more network penetration)

I presented myself as a current/potential user, concerned about client supermajority issue, asking about their current setup and potential plans to improve client diversity status.

Contact was made through emails, customer support or Discord. Here are the summaries of respones I recieved:

I think Binance, Kraken and OKX (8% combined) should be campaigned further through social media and other channels to ensure they make an action. It seemed to be effective with Coinbase, we saw Brian Armstrong responded personally to DC on twitter, it also worked with consensus clients.

Many smaller operators seem to be steadily working towards diversifying, but feel free to check up on them as well.

Community did bring awareness to the problem and it improved, we can get it to 50% or below.

u/KuDeTa is looking to hire an Ethfinancier as a DevOps engineer for Aestus!

View on Reddit →

The Aestus MEV Relay is hiring a DevOps Engineer.

Frankly when u/austonst and I started this projected ~20 months ago, we both imagined (hoped?) it would have become irrelevant by now. However, ePBS is an unsolved research problem that even optimistically feels years away from any kind of resolution. So - we intend to set things up to play a long term game. We still think it’s crucial to the long term health of Ethereum that credibly neutral players occupy this space - because MEV is an incredible centralising force.

We’ve recently received some funding from an Optimism retro PGF round, which ethfinancers were instrumental in supporting. So, it’s because of the fine work from people like u/superphiz and u/bendido2030 that we are in a position to hire at all. It would be great to return that trust by sourcing someone close to this community.

The ad suggests this is a full-time role, but we’re very open to committed part-time contributions — and this could be a fun, albeit intense, side-gig for someone. Your primary role will be to help us improve the performance and stability of our existing architecture and develop a plan for the future. The right person will have very strong cloud and k8s experience in domains including observability and security. Generalist coding capability, a willingness to absorb new information and learn new skills are also essential. You’ll also be part of an on-call rota.

This work brings you very close to the core Ethereum protocol and part of your job will to be stay on top of research and developments in the MEV and ePBS space. While for me the most exciting part of this project has been in the constant adventure of working at the bleeding edge - there are many unknowns - and that also means that whoever we hire will have to accept a bit of insecurity. Having said that, the additional capacity will allow us to spend more time exploring new services and opportunities both in the relay ecosystem and beyond - restaking and shared-sequencing are both ecosystems where we think our ethos and experience can make a difference.

Worth also noting that unfortunately and for complicated reasons, we can’t hire anyone resident in the US. I hope i’m not breaking any rules by posting this here!

u/atleft is looking to help reach out to StarkNet about misallocated airdrop tokens.

View on Reddit →

Starknet’s foundation is well aware that mistakes were made in the initial round of provisions. There are numerous efforts underway to address those mistakes and find a more positive way to move forward. In that vein, I am hoping that some of you who feel they were unreasonably excluded from the first round will share a) why you feel that way, b) the account address (DM me if preferred), and c) what criteria you feel *should* have been applied. I am asking in my capacity as a Starknet delegate and member of the Starknet builder’s council to provide as much guidance as I can back to the foundation.

Edit: doesn’t have to be limited to *your* account. If you know of any accounts that are good examples, please forward them along.

u/haurog shares some scams targeting him lately and u/austonst educates us on the latest evolution

View on Reddit →

u/haurog:

A very good indication that we are in a bull market is the pick up of the various scam attempts I come across. A few weeks ago my cold wallet on Ethereum was getting spammed with address poisoning attacks. Cost the spammer several dollars for each poisoning. I cannot really believe that these kind of things are worth it for them, but apparently they are ready to spend real money to do it.

Then came a cold DM on telegram from someone wanting to borrow my github account for a day. I blocked them so I never found out what they actually wanted with it, but I guess they saw my github account in the list of some airdrops and they would have wanted to claim them.

Yesterday I got DMs on Discord and Telegram with freelance coding job opportunities. These are close to 100% a scam as well. At the moment I am talking to them to try to find out how they would want to scam me. The slightly worrying part about the DMs is that they feel a bit closer to me than address poisoning. Especially, when these messages have been sent on two different apps (discord and telegram) simultaneously. Seems like someone is adding my user name to their scamming database.


View on Reddit →

u/austonst:

I’ve got an addition to /u/haurog ’s scam watchlist from yesterday. My more valuable wallets have been getting hit with address poisoning attacks, which at this point I would hope most people here are familiar with. And this should really be addressed with better tools at the wallet/etherscan level.

But more interestingly, my personal cell phone was hit today with a text message:

COINBASE: An unauthorized device from Salt Lake City, Utah has logged into your Coinbase account. If this was not authorized by you, please reply with “N”. If this was authorized by you ignore this message.

I caught on immediately, in part because I wasn’t actually sure I have a Coinbase account (I checked, and I do, but I didn’t even really complete account setup, never set it up to receive fiat or crypto funds). But also because I had just recently read this article on Ars Technica, which describes the abilities of the CryptoChameleon phishing-as-a-service toolkit. It’s a really good read, would recommend. But the first step of one of CryptoChameleon’s techniques is described to be similar: a phone call telling the recipient that there was an unauthorized login and asking them to press “1” or “2” to accept or deny.

This is kind of tricky because there’s not really any immediate danger in replying “N” (or pressing “2” to deny). If it’s legit then you’ve done your part to prevent an attack. If it’s not legit, then all you’ve done is sent a pointless text message. And users have become increasingly used to dealing with these kinds of messages from all sorts of account logins, so it may not ring any alarm bells. Why not send a quick “N” and be done with it?

But my understanding is that the first step of a scam is by far the most important. On one hand, some scams deliberately use dubious sounding claims (Nigerian prince, anyone?) as an initial filter, so that the savvy users weed themselves out, and the people who actually respond are more likely to be duped by the subsequent requests. But that’s probably just a side-benefit here, maybe allowing the recipients without Coinbase accounts to filter themselves out. And it’s notable that this message asks for action to deny and a non-response to approve. The vast majority of legit messages of this kind are the other way around: silence means deny. And that’s smart, that’s the way it should be.

More relevant this time is a sort of a sunk cost fallacy. In the world of video games that are “free to play” but with microtransactions for additional bonuses, it’s well understood that getting the user to make their first payment is a massive step. Once someone has caved and paid once, they’re much more likely to continue to do so. And at some point you can ask me about the fascinating ways in which a scammer on the streets of Istanbul employed a bunch of tricks to make it really hard for me to disengage once we had started talking, but that’s a longer story. But in short: if a scammer can get you to take the first step, you’re much more likely to fall for the following steps. So in this case, having the first step be something so likely to get casual responses means a higher success rate as a whole.

If the CryptoChameleon playbook described by Ars is accurate, there would probably be a followup text or email with a link to a fake phishing Coinbase login page, ready to take my password. I would hope even if people fell for the first step, they’d catch the issue at this point, but the danger could be that the first step being fairly risk-free would cause people to let their guard down.

This turned out longer than I planned, hope it reads all right. tl;dr: Scams nowadays will likely start with “unauthorized device/login” messages, these kinds of messages should make you consider if the source could be a scammer.

u/asdafari12 educates us on malicious transactions

View on Reddit →

Can I accidentally sign something malicious and it then drains my wallet?

Yes, hackers can be very creative. You could lose all of a single token, or an NFT or even native ETH. Not more than one type or token per signature.

I didn’t think they could touch your ETH but just recently learned of a way. It uses eth_sign to have you sign a TX that the scammer generated in advance. It will only be valid for one nonce though. Basically, your private key has signed a TX that the scammer can create later, for example an ETH transfer. The wallets warn of those signature types heavily though.

It is also possible to lose many NFTs at once. I don’t completely understand it but I remember when some people lost multiple Apes/Punks a couple of years back in a signing scam. Below is an article on it.

“However, signing a message like the second or third image on a website that turns out to be a scam will grant the scammers contract (and linked wallet) the ability to literally just buy all your approved NFTs to the specified contract under the “exchange” for ETH" -https://www.linkedin.com/pulse/what-gasless-signature-scam-heiner-garcía-pérez-u0ice

It can be difficult to spot a scam because the UI in Metamask is often abysmal for signatures. It’s a lot better in Rabby but even there sometimes it doesn’t understand things. It can then look like, you are trading asset 0xCY45… for asset 0x567DF… at a price of 85000000 gwei. That’s just ridiculous and easy to make a mistake on any of the contracts or even the amount might be a zero too much/little. I have read of people getting scammed this way.

You should always be careful when signing. If you are some public crypto MVP with millions of USD, you should even be extra careful. Use a separate PC only for crypto. I read about someone at a crypto company that opened a job resume PDF, it had some kind of malware that affected his metamask to push a modified TX to his hardware wallet which drained the company of millions USD.

Separating wallets and having a multi-sig are good practices.

u/evm_lion has caught the FHE bug

View on Reddit →

Logris got me very interested in FHE for the past few days. Thank you for sharing! The tech is super interesting as someone who consistently takes the long and dull path while navigating the internet to preserve privacy and reduce data-mining (even though I know that it doesn’t change anything in the grand scheme). A bit surprised I didn’t know about this technology before. Running algorithms over data without knowing the true input/output, while still knowing the validity of the computation is preserved, is mind-blowing, but also makes sense when looking a bit closer.

In a utopian future, where this is the new standard for how the internet and its services work, I wonder how companies will keep serving you things like relevant ads and a personalized experience. Although I’d be more than happy to live in a world without these “features”, the incentives are just so strong that it doesn’t make sense for them to let them go willingly. Anyone have any thoughts about this?

It would be nice if it turned into a marketplace, where you get these things served blindly through the same mechanisms, and got compensated for doing so (Brave had a cool visionary idea like this, but didn’t work out that well in practice). A less cool approach would be design-patterns for applications to gate-keep certain features, like premium services or exclusive content in exchange for users opting in to give their data.

(Feel free to delete this if its too off-topic, mods)

u/waqwaqattack will be filling in the Daily Gwei shortage!

View on Reddit →

Howdy y’all!

So, I think most of us here watch The Daily Gwei everyday. For those of you who do watch, you’ll know that Sassal is taking a 2 week break from recording the show starting on Monday. During that time, I’m going to help fill in the gap by providing Ethereum news on top of Rocket Pool news on Rocket Fuel.

Sassal talks about it in today’s episode: https://www.youtube.com/watch?v=qhI6OsMVZk8

For those of you who want to follow along, my YouTube channel is [www.youtube.com/@RocketFuel-RPL](http://www.youtube.com/@RocketFuel-RPL) and I also release episodes via podcast here:

I won’t be able to match his knowledge and insights (or bullish rants), but it might be a useful stop gap while he’s away.

u/SeaMonkey82 shares the latest Lodestar release

View on Reddit →

Lodestar v1.18.0 released today

Our new release contains some noticeable facelifts! We recommend this update to all users of Lodestar.

Our documentation located at https://chainsafe.github.io/lodestar/ is now using Docusaurus for a better experience. We’ve attached Plausible metrics to further help improve the contents of our documentation with minimal intrusiveness and open-source analytics. We continue to do content additions and improve our documentation for the best user and builder experience possible.

This release addresses many compatibility issues discovered from cross-client testing with Lodestar and other consensus clients. This also includes fixes for compatibility with some external DVT platforms and remote signers.

Target peers by default has been increased from 50 to 100 peers. Many users have already set this for better validator effectiveness and now we have it set by default to become a better peer on the network.

builder.selection now has a default setting that gives slightly preferential treatment to locally produced blocks via builderBoostFactor=90 . This configurable setting is set to 90 instead of 100 by default, requiring builder blocks from relays to be above ~10% profit to be selected. The previous default setting was maxprofit. This can be changed in your local configuration.

Basic devcontainer support is now integrated for easier development setups such as Github Codespaces. For more information, see https://chainsafe.github.io/lodestar/contribution/getting-started#devcontainer.

Week #62: April 12, 2024

Livestream Recording | POAP

Special guest Paul Brody joins us from EY and the Enterprise Ethereum Alliance.

Announcements

Upcoming Guests

The morning roundup

View on Reddit →

u/BazzRavish32

Ethereum

u/usesbinkvideo

89,856 hodlers subscribed (+7)

u/Vinegar_Strokes__

$3541

u/FrenktheTank

0.0499

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

SEC focused,

Uniswap got Wells noticed,

Block anecdotist.

Shitpost of the week: u/Fast_Contract

View on Reddit →

Give me one good reason why I shouldn’t 80x leverage my entire stack then 80x that 80x then deposit all of that into a 980 day lockup of yxBgkLklyupyupYupfgCc-xETH to get frank points that can be exchanged for 200 yarn credits (at a rate of 649 Galaxy cones to 400 ant points I should have an apy of 49080%)?

u/LogrisTheBard does a deep dive on freedom

View on Reddit →

Let’s take a moment to talk about freedom. Here in the US there’s this point of national pride they try to imprint on you that the US was founded on principals of freedom and somehow spreads the torch of freedom around the world. There’s the bill of rights they trot out, right to free speech etc. A pedantic point I sometime raise with people is that if something is discretionally permitted by the government, it is not a true freedom. Right to free speech? Not if you yell fire in a crowded room, start a riot, libel, slander, etc. If a judge can issue a gag order, speech itself is not a freedom; it is permitted. Driving is not a right; it is permitted. Owning a firearm is not a right, it is permitted, despite what all the 2A folks want to believe.

In terms of true freedoms, you have very few true ones and even amongst your permitted rights they are often being deprecated by technology. For example you had the right to privacy, the government couldn’t open your USPS mail without a warrant. This is still technically true, but the vast majority of mail has instead become email and the US doesn’t need a warrant to scry that. You had the freedom to transact with cash, but increasingly every payment is digital and those rights don’t carry over. We hear frequently stories of people that go to deposit to a bank and have the deposit frozen. You have to report transactions over $10k, which practically means less and less expensive things in purchasing power each year due to inflation. Legislative inaction and judicial activism, in the face of technological progress, are eroding what few permitted freedoms we still have.

The notion that everything every citizen does should be permitted is attractive to those who wield power. They want you to have to ask their permission so they can say no and only permit actions that preserve or expand their position of power and at a time and place most convenient for them. The days tick by and the vice constraining what you are allowed to do silently tightens each day. The people who need freedoms the most are those with the most controversial ideas, the ones most likely to destabilize the status quo; for good or ill.

People like Warren fundamentally disagree with me on the freedom to transact. They want the freedom to transact to fully transition to a permitted freedom. They make arguments like “equal playing field” with the banks that are already wound in the straight jacket for them. They argue that the only people who need these freedoms are those with malicious intent. They reductively argue that blockchains are financing North Korea and child porn. Of course, they are only here to protect us. It’s very much analogous to the “nothing to hide” arguments you get from the surveillance state encroaching on your right to privacy and it’s every bit as ethically wrong. They couldn’t be further from the founding principals of this nation if they tried.

Your transactions are an expression of your values. You invest in things you believe in, you buy things that add value to your life, you donate to causes you hold dear. Limiting your transactions is fundamentally an attack on your ability to express your values and shape the world to align with them. The moral compass of crypto is a controversial one, precisely because it bucks the trend and creates true freedom; for good or ill. So yes, there are scammers abound, memecoins with deliberately hateful content, and rugs every day but there are also people escaping the oppressive inflation of their nation state, financing art and innovation, and eroding the role parasitic middlemen plaguing our society.

So, asking for permission simply won’t do. I’d rather just be free.

u/Stobie explains token approvals

View on Reddit →

approve() is part of the most common standard token interface, erc20. It has nothing to do with ethereum and is unrelated ethereum upgrades. Tokens can be any contract which implement any interface, or if you want they can all be from the same factory and you can check if they’re in that factories mapping of built tokens if you want to be sure what they are.

There have always been tokens which do it differently but erc20 isn’t going anywhere, you’ll stop noticing it when account abstraction becomes standard. For example on starknet ethereum rollup where account abstraction is default the approve and function call all take place within a single tx. Same can be true with dapps which use dsproxy.

ERC 4337 is going to win and become account abstraction standard. I hate it but it’ll be fine. Would rather hard fork and do it properly.

u/Bob-Rossi has an $ARB delegate update and a $HOP delegate update

View on Reddit →

ARB DAO updates:

I’ll also update everyone here that the March delegate incentive program data is out - here. This is a trail program looking at ways to incentive delegates to participate more meaningfully in governance, rewarding active voting and discussion. I actually ended up being rank #1 out of all those who participated! Hopefully those who delegate to me here feel adequately represented :) and know that I try my best to make sure your voting power isn’t wasted.


View on Reddit →

Quick HOP governance update.

I’ve spent the last few months working on applying to the ARB Long-Term grant program on behalf of Hop, heading up a team with a few other HOP delegates. Council voting results have been released (list of all passing projects here) and HOP has passed the first round! So now it goes to the ARB delegates for vote this week for final approval.

The grant is asking for 500k ARB tokens with the goal of making bridging to the ARB networks cheaper for users. This will be done through fee rebates and liquidity incentives (to reduce slippage), and if it goes live should hopefully help users switch between L2 networks to take advantage of the growing space.

I’ll also add, I worked as well to apply for a similar grant through Optimism. Hopefully with similar results.

u/interweaver looks into the different mentalities of people buying crypto

View on Reddit →

Like most of the rest of you, I sometimes ponder why Ethereum in recent years tends to perform so… differently… from many other cryptoassets out there.

I keep coming back to this one reason:

Most people today buy crypto to gamble, not to invest.

The market, broadly speaking, is not interested in fundamentals. It sees crypto as a giant casino, where if you’re lucky better and faster at reading the trends and moods and narratives, you can become rich overnight, and escape the increasingly dystopian financial state of society. Fundamentals are not the bedrock of deciding what is and isn’t a good deal, in this mentality - they are a ball and chain that keeps an asset tethered to reality, when what you actually want is one that is free to ascend into outer space with no pesky P/E ratios or highly technical upgrades to slow understanding and buzz. The more innocent an asset is of any practical use, the less beholden it therefore is to actually needing to support that use, to actually addressing that market, to actually working. If you’re not supposed to do anything, you can’t fail, and the market can’t fail to understand what you do!

By contrast, most of us here would consider ourselves investors. We do care about utility, and we do care about real yields, and we do watch each upgrade with bated breath, and we do follow the discourse on roadmaps and adoption. We care about those pesky fundamentals, because we understand that having a fundamentals-driven thesis is the difference between investing and gambling, and we are not here to gamble. Ethereum, which by this point is deeply embedded in the crypto and web3 ecosystems, and which has, by most metrics, already won the adoption war - that’s something we can sink our teeth into, and the fundamentals look pristine. Ethereum is bae for us because in buying it, we can feel secure that we are investing in something that has real underlying value beyond memes and narratives and the attention economy.

Consider the chasm between those two mentalities, and consider that we are in the incredibly distinct minority right now. We’re rocking up to a casino with spreadsheets and reams of research. And we’re shocked when the degenerates around us take one look at our stodgy “internet of value”, our “global settlement layer”, our “world computer”, and pass it by, because it has won a battle that memecoins are not even trying to fight.

Times are changing, of course. The gamblers that still make up the large majority of the market are soon going to be dwarfed by the massive capital that institutional investment can bring to bear, and make no mistake, those investors of size do do their homework, they do care about fundamentals. They know, like we do, that selling shovels during this gold rush is the best way to profit, and that Ethereum is that shovel, and moreover, that it will grow into the digital equivalent of Manhattan real estate in the fullness of time. How soon these more competent investors will arrive en masse is hard to say, of course - we’ve been crying out, “the institutions are coming, the institutions are coming” like some kind of latter-day Bilbo Baggins for years now. But I think most would agree that the ETF approvals, whenever they may come, will in many ways herald that advent. The time of fundamentals is not here yet, but it is coming.

So while we all sit here gnashing our teeth and pulling our hair while the markets happily ignore our precious Ethereum, keep in mind that while we’re a tiny component of those markets today, what we really are is forerunners.

We’re not the last of our kind in a world devoid of reason, raging against the dying of the light.

We’re the first.

u/reuptaken thinks something is missing in DeFi

View on Reddit →

I have this idea for quite some time now and I’d like to share it with you.

I think that DeFi lacks it’s own high level script language. All major systems have SDKs (for advanced developers) and – on the other hand – UI, but nothing in between.

Take Uniswap as an example: you have low level SDK, where you have to deal directly with all the components (and bignumbers, various notations and so on) or pretty clumsy UI (try to move your position to a different range, even if it doesn’t require swapping tokens – it takes lot of clicking, waiting and it’s almost guaranteed that price will move while you’re doing all of this.

The solution would be high level language or set of scripts which would allow to execute all the most important functions of given Defi system by using simple commands. It should eg. understand token symbols, decimal numbers.

So instead of 100+ lines of code or using browser etc you could do:

`movePosition 29133 2000 3000` and after confirmation (which could be disabled) it’s done for you.

or, in interactive mode, you could do

`movePosition` and you’d be asked to select from list or type which position, then set range.

Those commands could be executed as scripts. There could be also an event watcher (eg. watching price on some pool) to which you could bind scripts, executed when some conditions are met. Eg. when APY on AAVE is lower than on sDAI, withdraw USDC, convert to DAI using Curve and stake on Spark. Even if not automated it’s much easier, faster to execute and probably cheaper.

What do you think about it?

EDIT: If there are some devs who’d like to do such project, please pm me.

u/alexiskef tells us about one of the original cypherpunks

View on Reddit →

Yesterday, u/syzygy00778 posted a link to a comment discussing the identity of Satoshi. Buried in the comments is another link, to an EXCELLENT article titled “Len Sassaman and Satoshi: a Cypherpunk History”.

I’ll paste the first two paragraphs, and let you read the rest..

"We’ve lost too many hackers to suicide. What if Satoshi was one of them?

Embedded on every single node of the Bitcoin network is an obituary. Hacked into the transaction data, it’s a memorial to Len Sassaman, a man essentially immortalized in the blockchain itself. A fitting tribute in more ways than one.

Len was a true Cypherpunk— equal parts brilliant, irreverent, and idealistic. He devoted his life to defending personal freedoms through cryptography, working as a developer on PGP encryption and open-source privacy technology, as well as an academic cryptographer researching P2P networks under blockchain inventor David Chaum."

u/nixorokish is looking for feedback from all solo/home stakers!

View on Reddit →

Any node operators / solo stakers!

EthStaker & Obol are putting out a survey to get to know the landscape of home stakers and solo stakers. The goal is to create publicly available data that accurately represents what home/solo stakers care about, what kind of software and services we mostly use, what we need, etc. The info can be used to advocate for stakers in ongoing research based on their own words. Some questions were contributed by EF researchers themselves

It shouldn’t take longer than 15 minutes, most questions are optional, and no data collected can be tied back personally to people (the survey software is FOSS!). We aim to repeat the survey every 6-12 months to get an idea of how the landscape is changing. It’s available in English, Mandarin, Spanish & Italian. We’ll leave it open for 2-3 weeks depending on volume

The survey is primarily aimed at those running personal validators (anywhere! Cloud services, bare metal services, at home, with a staking-as-a-service provider), minipools, or DVT clusters. If folks have any feedback or suggestions for the next iteration of the survey, would love to hear them! Feel free to direct them to me or to the EthStaker team email (team at ethstaker dot cc)

Survey Link: https://stakinglandscape.limesurvey.net/748278

u/KuDeTa brings us an Aestus update and u/superphiz endorses it

View on Reddit →

u/KuDeTa:

The Aestus Relay team (that’s me, and /u/austonst) have decided to run an experiment in the EigenLayer AVS Operator space. I want to test whether our service and reputation in the MEV-Boost ecosystem as a credibly neutral and solo-staker focussed infrastructure provider, might be of benefit in other domains. I honestly don’t know how this is going to work out, but it’s an interesting sideline to pursue.

So, as EigenDA hits mainnet today, i’m announcing our intent, and hoping that you might support this by delegating your Native or Liquid Restaking Tokens to us here. Once we hit the required threshold of 320 ETH, we’ll begin operations. I expect this to take a few days.

I’ll write out a longer post that sets out our motivations and intent, soon. But in brief: it seems clear that the restaking and AVS ecosystem is in danger of rapid domination by staking pools. We hope to make a small difference by leveraging our existing infrastructure in pursuit of decentralisation.

The technology doesn’t appear to support it yet, but once it’s possible - we’ll figure out how to make sure native solo re-stakers don’t pay any fees to use our AVS services.


View on Reddit →

u/superphiz:

I don’t encourage anyone to participate in Eigenlayer restaking because of their stated intention to onboard all validators (that’s a form of network capture), but if you DO use Eigenlayer and need to delegate your LSD tokens to a node operator, I’d really encourage you to choose Aestus.

Aestus is made up of two long time members of /r/ethfinance, /u/austonst and /u/KuDeTa. In all of my interactions with them I’ve found them to be working in the right directions.

https://app.eigenlayer.xyz/operator/0x30eafe8869a1528660a97b7a7e8e2d0037dcb922

u/LogrisTheBard explains how big of a deal fully homomorphic encryption is

View on Reddit →

So on the EVM call last Friday I went on a rant for a few minutes after JT read my doot. It’s so good I’m literally just cleaning it up and transcribing it here:

FHE is complementary to zk-proofs. Zk-proofs say that I did the calculation honestly. We can prove something like I calculated 4+5 honestly and you don’t have to go and rerun it yourself to get the answer to that. FHE can be used for many things outside of AI but it’s especially valuable for things like DePin.

For example Biometric Authorization. When you want to take your thumbprint or eyeprint and use that as an authorization mechanism. You don’t want to give someone your decrypted eyeprint. Today, without FHE, we encrypt your data in transit so the people in the middle can’t get it, then we decrypt it on the receiving side, and then the person on the receiving side now has your decrypted eyeprint and can basically just impersonate you. There is fundamentally trust with whomever is the processor of your data.

With FHE, we can give you an encrypted eyeprint, they can check that your eyeprint is actually you, without knowing it’s you. They don’t have something that can be reused. So they can do authorization without you leaking your public data.

The same thing would be true if I was in healthcare and wanted to make health predictions about you. If I know it’s you and you give me all your health data what am I going to do? As a centralized provider I’m going to take that data, I’m going to jot it down, and then I’m going to sell it on the data market to some health insurance companies so they can jack up your rates.

As a user, I want the output of the LLM that tells me what might be wrong with me without the processor of the data being able to jot it down and sell it maliciously against me and add that extra monetization. The same thing would be true in a lot of places. It should be true throughout all of web2. This should explode and become mandatory in certain environments where privacy should be sacrosanct. But in DePin especially, because of permissionless compute, I can’t even just say I trust Amazon. I have no idea who the processor of the data is and due to market forces it is going to devolve into the most malicious operator who is able to extract the most monetization out of the data they steal.

So for DePin to be applicable to any area where there is the remotest sense of secrecy or privacy we need to be able to do calculation on an untrusted operator and both prove that they did the calculation honestly (zk-proof) and that they didn’t have access to the underlying data (FHE). So you put these two technologies together and you get something that can eat into the margins of centralized compute providers like AWS in a significant way.

To put their margins in perspective, a P5 instance on AWS right now is $92 an hour. I can buy that machine for about $350k. At $92 an hour that’s over $800k a year, Amazon is making over 200% APR on the investment of the machine. There is an extraordinarily huge margin there and the effect of that is that the highest grade of compute we have isn’t democratized and therefore the apps that require that grade of compute are increasingly being centralized into a few tech oligarchs.

Due to the compute requirements, this basically translates to AI. So we’re seeing brick wall around AI being built every time we add another parameter to the LLM. Chat GPT was 1.5B parameters; it takes about 13 gigs of video ram to hold and use the model. Chat GPT 4 is bigger. We’re going to go to a trillion parameters. We’re going to get to a point where you need to have hundreds of gigs of video ram just to serve on the model and that’s not going to be accessible to the average person. The average person isn’t going to buy a half million dollar machine from NVidia. We need to be able to provide that high end compute to them at a lower margin than AWS is charging.

That is both an opportunity and a moral imperative of Defi and Depin. We need to make the compute required to access the technologies we are pioneering more democratically accessible before they become permanently locked behind brick wall and only accessible to a few tech oligarchs and used in their most extractive possible way against humanity.

u/Itur_ad_Astra discusses the pros and cons of an ETH issuance change

View on Reddit →

Today’s Bankless discussion came at the perfect time. I had just finished reading u/AElowsson ’s analysis and I think I understand more clearly what’s really at stake (heh) here. I have to admit my initial reaction when I read the proposal was pretty negative, so in order to help others make up their mind and also keep track of all the arguments that I see, I’ve made a list of the pros and cons as I’ve understood them, and explained them as simply as possible. If there are any more that you can think of and ELI5, I’ll be happy to add them to the list.

Pros of issuance change:

Unclear if issuance change will be a pro or a con:

Cons of issuance change:

—Personal opinion below—

So here is my view now: I am still mostly on the fence regarding the immediate (see:Pectra) issuance curve change, but at the same time I want to come out in support of an eventual change of the issuance curve towards one where staking much more than 50% of the supply is heavily disincentivized by negative issuance.

The main reason for this is that most of the disadvantages of changing the issuance are short-term troubles, and won’t have any effect on the long-term longevity of Ethereum. I’d rather see the project succeed and change the world, than make a bit more money for a year or five. “I’m in it for the tech” might be a meme, but it’s also the best way to analyze long-term investments, and it would be much easier for me to leave a project that has ossified before being finished, than it would be to leave because the price dumped. Changing Ethereum’s issuance will not only make it a more robust network, but also better money, especially for smaller holders that cannot stake.

ETH needs to keep changing for the better, so don’t sacrifice the future to the present. That’s what Bitcoin did, and apart from the fact that it will have huge issues eventually, it ended up being only a shadow of what it could be.

Week #61: April 5, 2024

Livestream Recording | POAP

Special guest Don Gossen joins us from Nevermined, a decentralized AI payments protocol.

Upcoming Guests

The morning roundup

View on Reddit →

u/nothingnotnever

Ethereum

u/Equal-Jellyfish1

0.04895

u/Zeebrasurfer

$3275

u/usesbinkvideo

89,835 hodlers subscribed (+13)

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

The meme franchises,

Stupid games with stupid prizes,

Down turn surprises.

Shitpost of the week: u/hblask

View on Reddit →

You know the old saying: “Buy ETH on April Fool’s Day, $8000 by end of May”.

Don’t ignore it this time.

u/benido2030 investigates the risk of restaking to the Ethereum network

View on Reddit →

So a couple of days I asked if the EF wants to kill or at least tame restaking. I relistened to the UCC episode and here’s my understanding.

Restaking is not restaking. At least in the case of Eigenlayer (and I think for now its fair to assume Eigen will be 80%+ of the restaking market) technically any asset could be used as collateral. Just because right now it’s validators via eigenpods or staked ETH via LSTs doesn’t mean that’s the endgame. Actually pure ETH, USD or even other tokens could be used to secure the AVS. This seems to play an important:

If the AVS really requires the restaker to be a validator then the plan is to “smoothen” rewards, which likely (!) means that MEV spikes will be captured and burned/ redistributed. Even though they didn’t mention this I guess something like based sequencing where the validator sequences the L2 could be one of these cases. The goal is to make sure big entities aren’t in a better position to capture value than solo stakers.

If the AVS is just secured by capital provided, but the security is not connected to a validator and could be done by someone with USD and a computer, then that’s a different story.

I still have many questions…

u/superphiz is brainstorming a beacon chain incident severity scale

View on Reddit →

I’m a big fan of the work that /u/hanniabu and EthStaker (/u/nixorokish) have done with https://ethstaker.cc/incidents to document Beacon Chain incidents in a publicly aggregated way. I think this is awesome for transparency and accountability.

I was brainstorming ways that it might be improved, and I think it could be helpful to convert this page to a table and include a severity scale. Here’s an idea what that might look like, and I think it would be awesome for other people to take that apart.

I’m never good with these scales, I wonder if the most severe incidents should have higher or lower incidents. This example is ranked with lower severity = lower higher number. I also think it’s good to leave room for a 10 point scale and realize that there may be shuffling over time.

ALSO, I think it may be useful to indicate that different events can trigger the same level of severity, as I’ve tried to illustrate below.

Note that this is a very first draft and it would need a ton of editing by others to be useful.

Beacon chain incident severity scale:


Minor

Severity 10 - Minority client issue that caused that client to miss attestations, participation above 95%, no missed slot.

Severity 9 - A client or multi-client issue causes participation to drop between 85% and 95%, no more than 1 consecutive missed slot.

Severity 8 - A client or multi-client issue that causes participation to drop between 66% and 85%, no more than 1 consecutive missed slot.


Medium

Severity 7 - A beacon chain consensus or execution client becomes a majority client (greater than 66% use)

Severity 6 - more than 1 consecutive missed slot; or any entity exceeds 33% of validators

Severity 5 -


Major

Severity 4 - Any entity exceeds 50% of validators

Severity 3 -

Severity 2 - No transactions were processed on the beacon chain for < 1 hour


Extreme

Severity 1 - No transactions were processed on the beacon chain for > 1 hour; An entity exceeds 66% of validators

u/KuDeTa explains why many block relays are closed source

View on Reddit →

To monetise their infrastructure, relays need a performance edge - which they can’t possibly maintain if everything is open source. So to some extent, competing at all necessitates competing in private. At the moment, ultrasound are running a fee delta / bid adjustment experiment in which they try to capture the difference between the highest and second highest bids - effectively depriving the validator of it. By doing so, they can take a fee - but also break some of the natural resilience of the mev-boost system - as bids are now unique to their relay. As i understand things, they also have a closed source rust implementation of the relay codebase, and have done some work with reth to try and improve bid simulation performance (vs geth). Those are the broad strokes, and you’ll see that they do open source some of their core thinking.

Frankly, it’s very difficult to work out exactly who is running what code, and what is clear is that none of the relays (including Aestus - though all our code is opensource) are vanilla MEV-Boost anymore, except Flashbots. /u/benido asked me elsewhere if this can’t also be seen as a “good” thing. Judge for yourselves based on the recent incidents. I would much rather find a way to incentivise relays (until we can get rid of them entirely) such that they want and need to work together. An upfront fee is probably more healthy. However, we should also face facts: the validator set is pretty mercenary and convincing Coinbase, LIDO and others to e.g. only use open source relays seems unlikely to happen.

To make matters even more interesting, we seem to be entering the early stages of a race to compete on timing. Bloxroute proudly boast they are making validators who sign up to their gateway an additional 6.4% of MEV income. Where does that come from? The next proposing validator (not using their service). I haven’t managed to get to the bottom of whether other relays (including US) are yet doing this, but i wouldn’t be surprised if they are.

I’ve spent time with people from across the MEV (relay/builder/searcher) ecosystem at various events, and i want to underline that while it’s somewhat tempting and human to try and reduce this to a question of individual/entity behaviour or ethics, threatening everyone with the ethereum police really misses the point entirely. The incentives are broken and the competition increases fragility. Don’t hate the player - hate the game.

u/mango_sake updates their exit strategy app

View on Reddit →

Another update!

After y’all crushed my app for planning your exit strategy, I used the weekend to get it on a proper hosting plan.

It’s live on kollit.ai now!

Thousands of people entered in a matter of a day, i utterly speechless and so greatful you guys found my app useful!

For the folks who missed it:

I made an exit strategy planner using game theory. It’s called Kollit - you call the prices, enter your risk tolerance and a few more optional things and the app will spit out an exit strategy that mathematically minimizing your total regret, be it regret of selling early or regret of waiting for a higher price that never comes. I think it’s really cool and im super excited to hear what you have to say! If you have any questions or suggestions please dont hesitate :)

u/AElowsson introduces the topic of the day and don’t skip on the amazing replies which are too numerous to doot

View on Reddit →

Here is a long-form “EIP research post” on my reward curve with tempered issuance.

u/impliedpotential3497, u/KuDeTa, u/asdafari12, and u/pa7x1 discuss protocol proposals

View on Reddit →

u/impliedpotential3497:

There shouldn’t be any significant issuance or monetary policy change unless the issue is something so obvious and objectively agreeable or existential already. The reasons for any significant changes to issuance now seem to be for highly subjective reasons. The threat to centralization comes much more from some central body trying to tweak monetary policy, not from the market, institutions, individual users, and the broader ecosystem naturally figuring itself out. Even if only a small percentage of ETH is in circulation in the future then so be it… Anyone drumming up ideas for changes to monetary policy right now should rather maybe consider simplying user experience for solo stakers or try to educate the masses on holding or using ETH the hard asset. Even advocating to LST’s and the like to follow some kind of better defined framework would be a better approach. There are so many other ways to address subjective issues like the ones being brought up imo. Monetary policy changes are like the absolute last resort.


View on Reddit →

u/KuDeTa:

There are good arguments on both sides of the issuance debate. I don’t, however, believe consistency of monetary policy is a good argument in favour of doing nothing. It’s naive to imagine we could have ever designed the yield curve correctly the first time around, given MEV, LSTs and restaking had yet to appear. It would therefore be hubris to suggest that any changes we make now will ever be considered final, given all the unknown unknowns. Crypto just moves too quickly. The capacity for evolution and adaptation is a core strength of the ethereum community and we should embrace it to stay ahead of the competition.


View on Reddit →

u/asdafari12:

Some things I believe are true. I could be wrong on some.


View on Reddit →

u/pa7x1:

For me this is the best take on the issuance reduction so far: https://warpcast.com/orangesamus.eth/0x7668549c

My thoughts on issuance reduction:

To target < 100% staked ETH you assume:

  • There is some yield “x%” where the market finds it irrational to take on the risks/opportunity costs of even delegating to someone else to stake
  • Issuance curve is chosen such that we cross below x% before we get to 100% staked ETH

The problem is that I think:

  • There is also some nominal yield “y%” that makes it irrational to be a solo or home staker after you get any lower than y%

And until you find a way to make solo/home staking more competitive relative to centralized alternatives:

  • y% will always be greater than x%

So I think the worst case scenario is the one that we get an issuance curve that leads to:
- crossing below y% (no longer rational to solo/home stake)
- And even worse: we are still > x% even at 100% ETH staked, meaning we didn’t accomplish our primary goal, and our validator set is highly centralized

Even if we choose a good x% and land at less than 100% staked ETH, we could still end well below y% and our validator set may end up highly centralized.

I’d rather Ethereum “over pay” for a robust validator set in the short term, than “under pay” and end up without a robust validator set

I think we should prioritize research to make decentralized staking more competitive, like ideas shown below:
- https://ethresear.ch/t/how-optional-non-kyc-validator-metadata-can-improve-staking-decentralization/17032
- https://ethresear.ch/t/supporting-decentralized-staking-through-more-anti-correlation-incentives/19116

If solo staking equilibrium yield is lower than pooled staking equilibrium yield. Then we must overpay issuance to ensure solo stakers can exist, otherwise the network will become strongly centralized.

Another argument on top of this one, whatever the optimal issuance curve is (if there is even one), we must approach it from above. Because if we overtighten we will end up having to raise issuance. And this creates a very bad precedent that will likely erode any monetary credibility Ethereum may have.

u/LogrisTheBard explains the potential of Fully Homomorphic Encryption

View on Reddit →

A limitation of permissionless execution for as long as I’ve been around has been that everything is necessarily public. We use mixers on occasion to obfuscate fund movements but the underlying program and underlying data for smart contracts is always public. If there’s a chain adjacent service like an Oracle, everything about its function is public. If I wanted to use a smart contract or a keeper to serve some data for me conditionally on authorization I end up having to use a centralized service at some point to issue a decryption key. Otherwise whomever wants the data could simply join as a data provider, download everything, and then exit without paying for the data. The root problem is just that if a system is permissionless then it can’t be entrusted with secrets.

This has become an acute pain point for AI x crypto applications recently. We can’t use DePin to train on private data or to serve answers from private models. However, there’s some math magic just on the fringe of development at the moment that could blow this space open: zk-proofs + fully homomorphic encryption (FHE)1.

Here’s an ELI5: I want you to add two numbers for me but I don’t want you to know which numbers I’m adding. Let’s say I want the answer to 1+1. So I add a secret number known to me but not to you to each input, let’s say 3 and 4, and I give you the problem 4+5. You calculate 9. To get the decrypted answer I just subtract the sum of the secret numbers in my input from your answer: 9-(3+4)=2. This looks silly in the reductive case but makes a lot more sense as the number operators (+, -, *, /) and operations in the calculation grows. Today, there are workable FHE encodings that can support any combination of multiplication and addition on an encrypted space. This is promising because as it turns out neural nets are nothing but a very large combination of simple arithmetic operations…

Hence a FHE encoded neural net can potentially be run on DePin infrastructure while protecting property rights to the underlying model. Once we see some of the initial projects like zama, privasea, and based.ai prove out this concept and it becomes more widely understood the full applications of FHE in crypto are going to be huge. I highly suggest Rabbit Holing on this one for a few hours.

u/dondochaka share a cool new DAO product they created for Reddit users!

View on Reddit →

The startup I work for just shipped https://www.rdatadao.org. Without sharing my own opinion or involvement, I’m curious what impression it leaves you all with…


Warning: It was realized this also exports your DMs.u/dondochaka is bringing this up with the team.

Week #60: March 29, 2024

Livestream Recording | POAP

Special guest Ram Ahluwalia, CFA and CEO of Lumida Wealth, a digitally native, SEC registered investment advisor specializing in alternative investments and digital assets.

Upcoming Guests

The morning trinity

View on Reddit →

u/fatsopiggy

Ethereum

u/2peg2city

$3570

u/2peg2city

0.07

u/bagogel12

561 days since The Merge

u/usesbinkvideo

89,770 hodlers subscribed (+4)

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Jailed FTX bro,

It’s six halving in a row,

Raise and fall below.

Choda time!

View on Reddit →

༼ つ ◕◕ ༽つ ETH TAKE MY ENERGY ༼ つ ◕◕ ༽つ

Shitpost of the week: u/Tricky_Troll

View on Reddit →

Is “you don’t have enough points” the new “you don’t have enough ETH”?

u/aaqy explains why they aren’t voting to increase the gas limit

View on Reddit →

Hey guys. As a genesis solo validator, I would like to share with you the reasons why I oppose the increase in block size at the present time.

  1. It is pointless. We are not going to attract new users or new use cases by simply reducing fees for a very limited time. No one is going to consider using Ethereum because a transaction costs $4 instead of $5. I understand it is annoying to hear the same complaints over high fees over and over again, but those complaints are not going to be tamed with a fee reduction that would anyway last very little. As an example, the last hard fork has indeed reduced fees on L1 more or less on the same scale that a block increase would do, but almost no one noticed.
  2. It is not sufficiently tested and could be dangerous, especially for small validators. When reasons for increasing size are cited, reference is usually made to disk size, but other more important factors for small operations are bandwidth, data-rate limits, computational capacity or ram installed. Increasing the block size increases resources and could expose small validators to spam attacks that cause them to lose their turn and thus allow an attacker to steal rewards or MEV from them.
  3. It could hurt L2 scaling plans. The last hard fork allowed Ethereum L2s to start competing with more centralized alternative L1s. However, even with 3 blobs per block the tps we are seeing are very low with respect to for example Solana, whose transactions per second are close to 1000. An increase in the number of blobs can be very significant to achieve equivalent capacity. This improvement, in contrast to a limited increase in block size, can indeed attract new users, developers and use cases, since the chosen L2 could offer the same tps as L1 alternatives, but with the added security provided by the Ethereum network, as well as compatibility with existing tools and ease of development. In short: the space we would lose by increasing the block size in a rush might be needed in the future to increase blob capacity.

Therefore, I think this is not the right time to increase the block size. I think we should wait until Ethereum L2s have reached a point where they can compete with alternative L1s in terms of capacity and the cases where complex blocks can cause small validators to miss blocks have been thoroughly tested and eliminated.

u/_WebOfTrust is grateful for this amazing community

View on Reddit →

I recently read Polynya’s latest blog, which reminded me of how grateful I am to be a part of this group. X is nothing but a shitshow; Farcaster looks promising, but the conversation is fragmented. The only place where the comment-to-quality ratio is high is here, with a wholesome bunch of strangers discussing the whole ecosystem and offering help without prejudice. It’s a rare find in the current market, especially now that meme mania seems to be leading the charge.

Even beyond this group, some fellow members have offered their guidance and support. MinimalGravitas, my dude, if it weren’t for your kind words, I would have left the DAO in ’22. Do you know, a fellow member even offered me their NUC, its up and running. Every time I look at it, I forget the gloom I see elsewhere, it gives me hope. This motivation to run a node, even if it’s non-staking, was inspired by Nixo’s tweet. Not directly, but Logris has taught me valuable lessons through his well-explained comments. Whether on vacation or gone camping, no worries, Tricky got you covered with doots when you’re back. Benido and Hanni have written extensively on different topics, from DAO to LST to client diversity. And the list goes on… all that without an expectation of any financial return.

Sometime we take things for granted or we are unaware of impact of our action but not today, today I want to show my gratitude and thank you all for contributing to this forum. Even if I have nothing to say, I ready the daily and learn something from it and I am greatful for that.

u/pa7x1 does some L2 education and FUD busting

View on Reddit →

L2beat.com does an amazing job at explaining the trade-offs in detail. L2s are definitely not web2 technology. In fact, it’s so novel that they are still being built, that’s why they have some amount of training wheels and safety guards at the moment.

The first thing to observe is that you can give up decentralization for an L2 as long as some protections are guaranteed to the user programmatically. It’s OK for a rollup operator to run the rollup themselves, it may even be permissioned, it may even be censored. And that’s OK as long as you can always escape hatch with your assets to the L1. And the analogy I would use here is that this is the exact same thing that happens with private businesses. A restaurant doesn’t have to serve you, they may reserve the right to not have you as a customer sometimes for trivialities like dress-code. A web forum may ban you. And that’s fine because you can go anywhere else. If you are unhappy with the rollup you get your stuff and go somewhere else. Your fundamental rights are preserved in the public space, the L1 is the public space. And the L1 is permissionless and censorship-resistant so you can be sure there will be somewhere else to go.

Here is an example of how this works in Arbitrum: https://l2beat.com/scaling/projects/arbitrum#risk-analysis

Sequencer failure Self sequence

In the event of a sequencer failure, users can force transactions to be included in the project’s chain by sending them to L1. There is a 1d delay on this operation. Proposer failure Self propose

Anyone can become a Proposer after 6d 8h of inactivity from the currently whitelisted Proposers.

Even if Arbitrum went for the ultimate censorship, turning off their rollup, you would be able to use the L1 and escape hatch.

Bitcoin maxis have been parroting a never ending stream of FUD arguments for years, systematically being proven wrong and when that happens instead of recognizing their mistake they move to new FUD arguments. Facts be damned. I would recommend updating your bayesian priors taking their track-record into account.

u/OkDragonfruit1929 lists the few ways which may result in failure for Ethereum

View on Reddit →

I am dealing with internalizing the hate toward Ethereum, but am also trying to prevent myself being blinded by my own bias.

One trap that people often fall into is refusing to acknowledge any scenario where their beliefs, convictions, or ideals could ever be “wrong”.

As a result, I am compiling a list of things which would indicate to me that I was wrong about Ethereum. That Ethereum was a failed experiment doomed due to irreparable flaws. Of the 4 listed here, any one of the first 3 coming true I think would be enough for me to concede the “death of ETH”.

  1. Unresolvable security vulnerabilities causing finanacial losses, undermining trust in Ethereum’s security model. This could include supermajority bugs causing a chain split, or repeated successful attacks against the network.
  2. If Ethereum’s development or governance becomes heavily centralized, contradicting its ethos of decentralization.
  3. A breakdown in the Ethereum community, whether due to internal conflicts, disillusionment with the project’s direction, or a mass migration to other projects, could severely impact the development and support of the platform.
  4. To a lessor extent, I would also concede that regulatory actions against Ethereum specifically, or decentralized platforms in general, could be a huge blow to ethereum’s vision as the settlement layer for the world’s finance and uninteruptable web3. I say this would prove ethereum’s “failure” in my mind to a lessor extent than the other scenarios I listed here, because even if the governments of the world put aside their differences to all agree to attack ethereum or restrict it, ethereum would never truly die. It would simply go underground. It would be vastly less profitable, but it would not disappear entirely.

For myself, and hopefully some of you here who are deeply invested in Ethereum’s success, these scenarios would likely need to be demonstrable, systemic, and irreparable to convince us that Ethereum was a failed experiment.

u/hereimalive shares Vitalik’s comments on getting Ethereum ready for real world adoption

View on Reddit →

What you think about Vitalik 5 year time-frame for Ethereum to prove its ready for mainstream real world adoption?

https://thedefiant.io/vitalik-says-ethereum-must-achieve-mainstream-adoption-within-five-years

Despite the cc subreddit pushing a negative narrative, it seems like Vitalik is actually bullish.

“I expect Ethereum to be a very leading player in helping to make stablecoin accessible to people in a way that actually is open, actually is decentralized, and actually doesn’t require trusting fragile third-parties.”

Also, improvements to be able to run a node (not sure if validators but probably) without the need for a lot of storage space. zk-SNARKs would help us move from our staking rigs to just a phone/very light processing on a computer.

“With Verkle Trees, as a node, you would not have to store the state locally. And with EIP-4444: History Expiry, you would not have to store most of the history locally,” Buterin said. “The amount of data that you would need to be a node would decrease from multiple terabytes to… being able to run a node in RAM.”

“In the long term, running a node will feel like… a few very simple computations that will be very easy to do as a background process on any computer, maybe even a phone, even inside a browser,” Buterin said. “There’s a pre-existing technology roadmap to get to that point.”

u/strawdar explains why ETH staking is in 32 ETH chunks

View on Reddit →

With EIP-7251/MaxEB coming I was curious why the beacon chain did not launch this way in the first place. It has an interesting backstory.

From the EIP itself:

The limit on the MAX_EFFECTIVE_BALANCE is technical debt from the original sharding design, in which subcommittees (not the attesting committee but the committee calculated in is_aggregator) needed to be majority honest. As a result, keeping the weights of subcommittee members approximately equal reduced the risk of a single large validator containing too much influence. Under the current design, these subcommittees are only used for attestation aggregation, and thus only have a 1/N honesty assumption.

u/asdafari12 questions the magnitude of the benefit of increasing maximum validator balances while u/interweaver delivers the answer

View on Reddit →

u/asdafari12:

maxeb is now planned for the next hard fork. This will remove the 32e max limit for validators, greatly reducing bandwidth consumption for stakers. - eric.eth https://twitter.com/econoar/status/1770836409848332554

Will maxeb really reduce bandwidth greatly? Only if the whales with thousands of validators actually consolidate to big validators instead of many small ones, something that is yet to be seen. You could argue that they don’t want to have 3200 ETH validators as the impact of a bug would be 100x bigger. It would lower Ethereum protocol risk though so should be in their best interest.

It seems unlikely to me that we will lower the number of validators by 50-75%, which is what I would consider greatly reducing consumption. More likely we will drop by some 10-30%, so not really making a big difference in terms of bandwidth.


View on Reddit →

u/interweaver:

This is almost certainly referring to attestation subnets.

For each validator a solo staker has (up to 64), they have to subscribe to a new attestation subnet, with all the gossip and increased traffic that causes.

If that solo staker consolidates their validators under maxEB, they could go back down to a single attestation subnet, reducing bandwidth usage significantly.

u/FrenktheTank shares the great combo of Paul Brody and the EEA

View on Reddit →

On my LinkedIn feed I saw that Paul Brody just got appointed as Chairman of the Ethereum Enterprise Alliance. Curious as to what his plans are to speed up enterprise adopotion.

Source: https://www.linkedin.com/posts/pbrody_enterprise-ethereum-alliance-announces-new-activity-7175838502155079680-idgW

u/dentonnn is grateful for this community

View on Reddit →

Just wanted to amplify u/_WebOfTrust post from 2 days ago… what an awesome community this is. I am a relatively late comer into the community.

Thank you all for consistency sharing your knowledge with internet anons like me. I’ve learnt more from this sub than any other place on the internet. I literally got a job offer because I dove into MEV because of the daily doots posts about it consistently throughout the past few years (I didn’t take the offer in the end).

Your selfless sharing has consequences, and I my career trajectory is one of them.

Other than that this year has been transformative for me career-wise (got back in the crypto industry after a stint in fintech) and personally as an artist (did my first solo exhibition yay!). Going to ETH Denver for the first time and meeting u/jtnichol and other folk was the most wholesome experience I’ve had in a long long time.

I work on consumer side of crypto, specifically in games and 99% of the ppl are talking about the casino/degen aspect of crypto, I think they are firmly in the camp of “it’s just how it is” , and perfectly captures what polyna’s sentiment that

“this evil in crypto is banal and normalized. This has become the identity of crypto - sure, some useful stuff, but mostly just infested with scams and absolute degeneracy.”

Despite the mis-aligned incentives, greed, grift in the space, I don’t see any other system that can even attempt to fix the problems we face at scale. I don’t know what the answer is, but I believe it starts with places like ethfinance, that can influence the culture of the ecosystem.

I also finally got my EVM today yay.

u/dataalways investigates client diversity

View on Reddit →

It’s not a topic I look at much, or one that I plan to spend much more time on, but I spent my morning trying to fill in some knowledge gaps about execution layer clients this morning. Most of you guys rely on supermajority.info, but obviously there are some unknowns since not all proposer sets have publicly stated their client usage (Binance, Kraken, OKX, Bitcoin Suisse, etc.).

The idea is that even though most blocks are built through PBS, every proposer still has a small share of locally built blocks (min-bid reversions, network latency delaying payloads from relays, local blocks being more valuable than PBS if there isn’t much MEV during the block, etc.) and for those subsets of blocks we can look at the extra_data encoded on-chain to tag what clients proposers are using.

Part of the issue with this methodology is that besu and erigon don’t actually embed extra_data so the field is blank, and at the same time there are some MEV builders who try to stay anonymous and don’t embed data, so we can only cleanly tag geth and Nethermind, and then we need to check vs off-chain MEV data to see if the empty data blocks are from anonymous MEV builders or from one of besu/erigon.

On top of that, there’s occasionally been MEV builders using the Nethermind tag that briefly crop up. I think this is just from misconfigurations because they go away pretty quick, but it adds a bit of noise to the data. Basically the methodology is a bit of a mess.

As a quick summary:

The data is here for anyone that wants a peak:

[https://hackmd.io/@dataalways/execution-layer-diversity](https://hackmd.io/@dataalways/execution-layer-diversity)

u/not-ngmi rounds up all of the many pieces of ETF news from the day

View on Reddit →

The CFTC refers to ETH as a commodity in their KuCoin complaint.

On the same day, courts side with SEC on the staking issue in Coinbase case.

Meanwhile, Fidelity files S-1 form for spot Ethereum ETF with staking included.

Within 24hrs, Larry Fink says on Fox News that if ETH were designated as a security, that wouldn’t be deleterious to the approval of an ETF.

Perhaps spot ETH is a commodity (CFTC regulated), but staked ETH is a security (SEC regulated).

Prediction: Staked ETH ETF approved before spot ETH ETF.

u/pbrody is looking to catch up with EthFinanciers like YOU this year!

View on Reddit →

Where are people going to be the next few weeks? Is there some way to share where we will be?

I’m headed to:

Who am I going to see where?

Week #59: March 22, 2024

Livestream Recording | POAP

Special guest Adam Blumberg of Interaxis. Adam is a Certified Financial Planner, and a former Registered Investment Advisor. He co-founded Interaxis in 2019 to educate advisors and investors on digital assets and decentralized finance. His Interaxis YouTube channel is viewed by thousands across the globe. He is a regular contributor to Coindesk’s Crypto For Advisors and was featured on Bloomberg TV and Blockworks.

Upcoming Guests

The morning trinity

View on Reddit →

u/FrenktheTank

Ethereum

u/usesbinkvideo

89,714 hodlers subscribed (+11)

u/TimbukNine

$3517

u/alexiskef

0.0528

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Good code for your peers,

Great discussions and some beers,

Blockchain pioneers.

Choda time!

View on Reddit →

༼ つ ◕◕ ༽つ ETH TAKE MY ENERGY ༼ つ ◕◕ ༽つ

Shitpost of the week: u/ev1501

View on Reddit →

I wish the ETF passes and gets pushed down all the haters throats like bad medicine.

In May, when SEC nods in grace,
ETH ETF takes its rightful place.
Skeptics scowl, in disbelief they stare,
As Ethereum soars, slicing through despair.

“Impossible!” they cried, their words so cold,
Yet forward moves the future, bold.
Their doubts, like shadows, quickly flee,
As ETH ascends, for all to see.

The haters cope, their voices dim,
Against the tide, their chances slim.
For in this dance of digital fate,
Ethereum’s rise, they can’t abate.

So let them cope, let them despair,
While Ethereum’s light fills the air.
For in the end, it’s clear to see,
The SEC’s nod sets Ethereum free.

u/haurog highlights a post about Optimism’s new fee structure

View on Reddit →

It might have gone under in yesterdays daily, but u/KnowNoShade posted a very interesting link about the new fee structure on Optimism and why they had such a huge reduction in cost after the Dencun hardfork. Blobs alone could not have reduced the fees by that much. What optimism did in addition was that Optimism started to consider priority fees in their fee calculation. The base fee can be close to 0 and optimism still makes enough money through the priority fee. Optimism does not directly subsidize transactions, but the way they calculate the transactions and set average gas usage for the base fee to increase it essentially means that the actors which pay a high priority fee are indirectly subsidizing the fees for the other users. And apparently there are enough users paying a high priority fee which makes OP chains still profitable. Quite interesting to be honest. According Ryan Berckmans tweet OP Mainnet and Base still make enough money through priority fees. I am not sure if this is also true for Zora as I would expect not too many people pay a priority fee there, I might be wrong there though. Overall, I think it is quite interesting how Dencun now has kicked off a rollup fee competition. Apparently arbitrum will also improve their fees soon.

u/Bob-Rossi has some ARB delegate updates

View on Reddit →

Few more ARB DAO updates beyond what I brought up a few days ago, more personal to what I’ve been up to if anyone is curious. (As well as open to feedback before I go ‘live’ with one of these items).

Late to the party, but ARB did release their 2023 Transparency Reporting (https://docs.arbit rum.foundation/foundation-documents#transparency-reports). If anyone wants to give it a read there is some good things too look at, although I will note page 11 might be my favorite :). And please note that 100% of the work was done by Questbook, I was just there becase I posted it to Tally / Snapshot. Just having a “LeonardoDeCapriopointsatthetv” moment.

I’ll admit this sort of came up in January and then I got busy so it got pushed aside once Feb rolled around, but I’m probably going to start working towards it now that I have the time… I’m going to try to get some of ARB’s council election processes standardized. More info here (https://forum.arbit rum.foundation/t/rfc-create-a-standardized-guideline-for-non-security-council-elections/20915). Basically, these different councils have elections and the process isn’t very standard as different people are running the programs each time. I think that detracts from how effective these elections can be. My thought is that a minimum there is a lot of community support for “Shielded” voting (results hidden until completion). So I’m hoping at least that will get support, as I’m breaking it our into three categories:

- Mandating certain election types be used to avoid common pitfalls with less effective voting methods.

- Mandating “Shielded” voting, as there are too many ways to game the election if results are public as they go along.

- Mandating some type of minimum period for applicants to apply for roles to ensure we can get the best possible field possible.

u/Sparta89 covers the fee flippening while u/pa7x1 explains why Ethereum is only just getting started

View on Reddit →

u/Sparta89:

Solana fees have spiked and are currently ~4X higher than most L2 fees. The Solana low fee narrative is dying.

Solana average fee (24 hours): ~$0.048

Optimism/Starknet average fee (24 hours): ~$0.01

Sources:


View on Reddit →

u/pa7x1:

And with some very rough numbers L2s may scale 3x their use of blobspace without even raising the blob fee. Currently the network is averaging 1 blob per block. So until it reaches 3 or more blobs per block there won’t be actual pressure on the blob fee. https://dune.com/hildobby/blobs

According to l2beat the L2s did yesterday 133 tps. A factor of x3 will place it around 400 tps. Solana seems to do around 500 tps. https://realtps.net/

With this rough numbers Ethereum seems to have beaten in scalability Solana. Can manage same order of magnitude tps but cheaper. But unlike Solana it has an actual roadmap to keep scaling:

All that without having to give up on decentralization.

u/BuyETHorDAI shares a futuristic Ethereum demo

View on Reddit →

I saw a presentation at EthDenver that used a mock dapp from the future, showing what the UX would be like if we had the complete roadmap. In this case it was for buying and selling cars and had assumptions baked in like digital identity, smart wallet, etc.. I really like these types of demos and would be cool to see more. This is the video I’m talking about: https://youtu.be/TrLbTglwzXg

u/vvpan mulls over decentralisation

View on Reddit →

“Decentralization” is a complicated term. In crypto we usually see the system as decentralized based on criteria like “how many nodes have to collude to censor the system” or “how many nodes need to be taken out for the system to fail” or “how difficult it is for a single entity to take over governance”. But there is a more traditional meaning for decentralization, a pre-digital one, which defines it not as a large system but many local ones and this is where blockchain has some shortcomings.

I am on this subreddit for the blockchain ideologies that resonate with me (and ma bags, of course). But I would also say that being “all in” is not great. Take Bitcoin maxis. The idea that all the complexity of expression and exchange of value should be scorched and replaced by a single system derived from a single limited resource (which at the onset has every uneven distribution) to me is nothing short of fascist. That idea is despotic and anti-human in the sense that it deprives us (you know, the people who are supposed to be benefitting) from the ability to decide how we want to express human relationships.

Now fans of smart contract chains (say Ethereum) are not Bitcoin maxis at all. Smart contracts are foundation for building any kind of system on top of it. In case of Ethereum experimentation and possibility of human expression (new forms of value, new forms of organization, new forms of interaction) are at the core of the ethos. Yet a blockchain network is still a single system, with one governance, with one limited-supply token, requiring electricity and internet, insecure and with potential middlemen. That said I think what is actually a corollary to Ethereum ethos is cherishing of the good meat-space things - not everything needs to be onchain, digital has security limitations, organization comes in many forms, non-digital governance is important.

u/5quat summarises the EtherFi airdrop

View on Reddit →

High level summary

  1. We listened to our community and increased our token allocation by over 10M tokens, representing an additional 1% of total supply
  2. For Season 1, in total we’re giving away 68M tokens, representing 6.8% of supply
  3. The average size of airdrop each user received was 575 tokens, the median was 175 tokens
  4. The largest allocation was for approximately 3M tokens, this individual deposited $480M during the Final Countdown campaign
  5. Deposits during the Final Countdown campaign resulted in an increase of 7.7M tokens for everyone else!

Season 1 Token Allocation: 90% to stakers 6% to partners 4% to Early Adopters (fan NFT Holders and EAP participants) Stakers received a proportional share of the 90% (59M tokens), the distribution was linear but skewed in favor of smaller stakers Bottom 50% of wallets contributed 1.8% of TVL and received 18% of token allocation Top 10% of wallets contributed 88% of TVL, and received 65% of token allocation Eligibility Rules: What were the rules to be eligible? Anyone who earned more than 1000 points or more from staking 1,000 points was equivalent to staking 1 ETH for 1 day, or staking 0.1 ETH for 10 days Holders of fan NFTs received 430 tokens for each NFT Participating solo-stakers in Operation Solo Staker received 4200 tokens Badge holders and referrers received boosted allocation Specifically who wasn’t eligible? Users with less than 1000 points from staking activity, (i.e. if a users points came entirely from badges, they didn’t get an airdrop) Users who didn’t not transition out of the EAP

u/shiftli reminds us of a growing scam to watch out for

View on Reddit →

Appears to be wallet running an “address poisoning” scam:

Scammer -> new wallet -> victim

The scammer sends a small amount of eth dust to a newly created wallet, which sends it to the victim. The new wallet W* is created to have the same first and last four characters in the address as an address W the victim transacted with recently.

The idea is that the victim in a future transaction copies the target address from the transaction history and because of the address similarity takes the scammer-controlled wallet W* instead of the legit wallet W.

Good catch!

u/cryptrd285 shares another L for the SEC

View on Reddit →

SEC absolutely got bodied here. It should help with ETH ETF filing, I would think. I am sure SEC doesn’t want another embrassment

https://twitter.com/iampaulgrewal/status/1769835308559032608

“For the reasons explained below, the court imposes sanctions against the Commission for bad faith conduct in obtaining, maintaining, and defending the TRO, and denies the Commission’s Motion to Dismiss without prejudice to refile in accordance with the District of Utah’s Local Rules.The Commission’s above-discussed conduct constitutes a gross abuse of the power entrusted to it by Congress and substantially undermined the integrity of these proceedings and the judicial process.”

u/Bob-Rossi has a HOP governance update

View on Reddit →

A quick HOP governance update. Although honestly it’s a pretty light one as ultimately most votes over the last few months have been fairly standard DAO things. To run through a quick list (https://snapshot.org/#/hop.eth):

I’ll also share that I’ve been heading HOP’s application for the upcoming 12 week ARB grant program. Me and two other delegates that assisted with this just submitted our finalized application located here. The goal is to subsize bridging fees to Arbitrum, as well as incentivize AMM pools, over those 12 weeks. Decision pending council / DAO vote, but I was really happy how it came out. So I have my fingers crossed.

Which, btw shout out to u/seamonkey82 as you’ll notice a link to a certain ARB forum actually works now :)

u/BigglyBillBrasky shares some big news from BlackRock

View on Reddit →

Ya’ll we’re in before BlackRock 🥂

“JUST IN: BlackRock launches digital asset fund and deposits $100 million $USDC on the Ethereum network.”

https://twitter.com/WatcherGuru/status/1770177665099596282

u/Syentist has the latest on the gas limit increase movement

View on Reddit →

Eric and Mariano starting an awareness campaign to increase gas limit from 30 to 40mn.

Gas limit can be increased in a coordinated and rational manner by validators. It doesn’t need a hard fork.

This is the exact amount that Vitalik suggested during an AMA last year

How much gas limit can we safely increase now? and after Verkle?

Honestly, I think doing a modest gas limit increase even today is reasonable. The gas limit has not been increased for nearly three years, which is the longest time ever in the protocol’s history (that 2x bump in the chart in late 2021 is “fake”, in that it reflects the EIP-1559 transition, which increased the “limit” by 2x but only increased actual average usage by ~9%). And so splitting the post-2021 gains from Moore’s law 50/50 between increased capacity and increased ease of syncing/verification would imply an increase to around 40M or so.

Long overdue and Godspeed!

u/benido2030 tries to prepare us for what is to come

View on Reddit →

If this drop bothers you, I potentially have bad news for you. Well, not really, but if we are really just at the start of a bull run, similar drops at higher USD values might make you sick… So prepare mentally for crazy stuff that will happen. Some random numbers to showcase the things we might be witnessing:

Disclaimer: Everything that follows is based on the assumption that your whole portfolio is in ETH and that we basically went from 4k to 3k (which, at least until now, we didn’t, but we also peaked slightly over 4k, so 25% is as good as it gets). You’re probably a little diversified, so your port value fluctuates a little differnet. Just pretend it is 100% ETH!

If you have:

Good news: 1 ETH = 1 ETH, but from my experience from the last cycle it’s the USD value that hurts.

Bad news: If this is just the start of a bull we might 2.5x from 4k to 10k or even 4x to something like 15-16k. This is great, but a 25% drop will hurt even more. With ETH = 10k USD

or with ETH hitting 16kish

Now why am I posting this? I know I can’t really prepare you for these scenarios. You probably will have to go through these to really understand what this means. Also let me tell you I have no idea how I will feel if we hit 10k or 16k and drop 25%. May 2021 (basically down only from 4k to 2k within 2 weeks and even below 2k within 2 months) killed a lot of emotions and changed me long term I think. But if you just joined in the last 2 years, you should try to play through some scenarios and get used to losing a lot (USD) value in a short amount of time.

And while I am at it… Think about how you would feel if we hit 15k and then the bear hits and we go down 75% :)

Week #58: March 8, 2024

Livestream Recording | POAP

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/ETHdude8686

Ethereum

u/HITMAN616

$3889

u/usesbinkvideo

89,573 hodlers subscribed (+11)

u/domotheus

0.058161

u/bagogel12

540 days since The Merge.

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

There’s none his kin,

Tokens can’t do the talkin,

A dead man walkin.

Shitpost of the week: u/aur3l1us

View on Reddit →

Now I lay me down to sleep, I pray that Wall St. will pump my ETH. But even if the ETFs should fail, I know and I trust in good ol’ retail.

Choda time

View on Reddit →

u/clamchoda:

༼ つ ◕◕ ༽つ ETH TAKE MY ENERGY ༼ つ ◕◕ ༽つ

u/El-Coco-No shares his knowledge about finalization

View on Reddit →

Finalization

I’ve just been learning more about finalization and had a few ah-ha moments that made me very happy. I figured I’d share them here and also ask anyone to check my thinking.

Finalization is not some magic 2/3 number, where an almost finalized block just needs to get over that hump of 2/3 of the validators attesting to it and then it’s safe. It’s just a line that we’ve chosen to define and say “here’s a good bar to meet and we can say the block is “finalized.”

So what is it and why does it matter?

The beacon chain chooses one validator at random to propose a block in each 12-second slot of the blockchain. That validator is the only one who can propose a block, and they can only propose one block. If they propose more than one block for the same slot, they get slashed and force-exited as a validator.

The interesting thing to note here is that an Ethereum block reorg only has two possible outcomes: the proposed block or an empty block. That differs from Bitcoin, in which reorged blocks contain different transactions and were proposed by different miners.

Anyway…blocks are only validated by a fraction of the existing validators, as each validator only attests to 1 out of every 32 blocks. This is a way to keep Ethereum nimble, as requiring each validator to attest to each block would bog down the network.

However, at the end of every 32 block section (32 blocks is an “epoch”), there is a block called a “checkpoint.” When a validator casts their 1-out-of-every-32 blocks vote, they also cast a vote attesting to the last checkpoint. When a checkpoint garners attestations from 2/3 of all validators in existence, that checkpoint (and every block before it) is considered “justified.”

And when two checkpoints in a row are justified (which naturally takes at minimum of two epochs or 12.8 minutes), the oldest of the two justified blocks is considered “finalized” along with every block that preceded it.

So why is this important? Because of the double vote slashing offense.

Each validator can only vote one way per block. They can’t change their vote, or a double vote slashing occurs. When a validator is slashed, they lose around .5 eth and are forced-exited after a certain amount of delayed time. This time delay allows the protocol to see who else is being penalized around the same time period. If there are many slashing offenses, the protocol assumes they were colluding to attack the network, and the slashing offenses start to get angry and impose an additional penalty. It’s important to understand the formula for this additional penalty. It’s:

validator_balance * 3 * fraction_of_validators_slashed

In other words, if you’re the only offender, your additional penalty is negligible. However, if at least 1/3 of the other validators were also slashed around the same time, you lose all of your stake. (This is one reason that it’s so stupid to be running a super majority client, but I digress).

So let’s look at this in terms of a justified block. Most conservative case:

A block is justified because exactly 2/3 validators have attested to it (and the other 1/3 haven’t voted yet). In order to get reorged, 2/3 + 1 validators need to attest to a different block in that slot. We’ll, 1/3 of validators are still free to vote, but to get the other 1/3 + 1 validators, 1/3 + 1 of all total validators will need to cast a second vote. They can do this, but they’ll get slashed. And a quick look at our handy formula above tells you this will result in a total slashing event of all of these validators’ shit.

And if it’s this costly to change a justified block, imagine how difficult it would be to reorg a finalized one. The details get a little tricky here for me, but I believe it would require over 2/3 of all validators losing all of their stake. Right now, that’s $73 billion dollars worth of security. Not only would the benefit of coordinating this attack have to be worth more than $73 billion, but the attacker would also have to corrupt over 2/3 of the decentralized validators of Ethereum. That last statement is the reason that decentralization matters in Ethereum, and why home stakers are soooooo important. Ethereum needs to be able to withstand a full on moloch attack worth all the money that will ever be settled on top of the chain. Since we like to think that’s the entire world’s economy, the value of the eth securing the network by validators will only take us so far. Decentralization does the rest.

u/Wulkingdead shares their bull case over at r/cc

View on Reddit →

i made a ‘my bull case for Ethereum’ post in r/cc if any of you are interested, or have any corrections :D

somehow i spent 2 hours on making that post LOL! Also posted on eth subreddits but check out the r/cc one ;)

u/accidental_green shares their validator updater for the upcoming hard fork and the circles back shares their story of writing a useful staking script

View on Reddit →

To help validators with the upcoming hard fork, I improved my open source Validator Updater so everyone can easily update their validator in under a minute!

Detailed instructions can be found on the Ethstaker post, quick summary below.

Note: The updater is adapted from Somer Esat’s guides, and saves the updated binaries to /usr/local/bin. If you have a different setup, you can move the binaries to your desired location after download.

Validator Updater Summary:

  1. Select Execution Client: (Besu, Geth, Nethermind)
  2. Select Consensus Client: (Lighthouse, Nimbus, Prysm, Teku)
  3. Update MEV-boost? (Yes/No)
  4. Click “Update”

That’s it, updates process in the terminal and you can be back online before missing a single attestation!

Feel free to check out my other open source Ethereum projects:

Validator Install - Install a full validator from fresh Ubuntu in minutes
Client Switcher - Instantly switch execution clients to improve client diversity

All code is open source but has not been audited, so any testing/feedback is always appreciated.


View on Reddit →

A Prysm dev forked my code!

I wanted to share my story in case anyone here is considering contributing to Ethereum and isn’t sure how to get started.

So to start, I’m not a programmer. I was the “Excel guy” at the office because I knew how to do vlookups. I started dabbling in VBA and eventually wrote a macro to take an Ethereum address and lookup the balance using Etherscan API.

One day while updating my validator, I decided to try a Python script rather than copy/paste the 10 commands. I ran the script and was shocked it actually worked. I slowly added more clients and eventually created the validator-updater.

I figured if I could write a script to update, maybe I could write a script that took commands from Somer Esat’s guides and create a full validator-install script.

It took a few months, but I finally got it working. I decided to create a Github account and share on Ethstaker. People responded positively, but no one actually wanted to run it (would you trust your 32 ETH to a random script on Github?)

It was pretty disappointing to know I created something that made staking 100x easier, but no one wanted to run it. I made updates, added clients, but in the end it felt like I was screaming into the void (props to u/superphiz for saying he liked my project and encouraging me to continue working on it).

Eventually u/nixorokish at Ethstaker reached out and said they liked my initiative and wanted to send some DAI as a thank you. Once that DAI hit my wallet I remember thinking I made it, I’m officially on the Ethereum payroll!

A few months later, I got a notification that someone created a pull request on my repository. I went to investigate and noticed it was Preston Van Loon (Prysm dev) fixing a typo in my validator install code. Pushing the merge button made me feel like an actual developer.

He also forked my repository, which means it’s now hosted on hisGithub. That was a major boost to my confidence and Github street cred.

u/hanniabu reached out and suggested adding a keystore import to the installer. I worked up a few changes and he graciously reviewed the code and provided valuable feedback.

As the client diversity stuff became popular, I created client-switcher to help people switch execution clients with a single click. It was well received and multiple people reached out saying they were able to successfully switch to a minority client.

Recently u/coincashew forked my code and created their own one line installer, mentioning that because of my code they were able to write the whole thing in a single day. People were actually building off my code, and the idea of open source started to make more sense.

So what’s the point in writing all this? I’m not really sure. I spent years as a silent observer of this sub, so decided it’s finally time to share my story and maybe inspire someone to start that project they’ve been thinking about.

This hasn’t been very lucrative financially, but it’s nice knowing I’ve contributed to Ethereum and made staking a bit more accessible. Not sure where it goes from here, but I’m cleaning up the code in hopes to eventually have it audited.

Thanks to everyone who provided guidance and encouragement. This really is a special corner of the internet, and I’m happy to be a part of it!

u/plaenar shares a crazy scammer tactic of address poisoning (be careful!)

View on Reddit →

Be careful, someone is address poisoning transactions pretty efficiently. I sent some ETH from wallet A to a new wallet B, and after the transaction went through, someone sent me a dust amount of ETH to wallet A. The scammer’s address has the same first 4 and last 4 characters as wallet B. Now I have to be really careful not to accidentally send anything to the scammer’s address.

Its alarming because of how quickly they did it, being able to brute force a vanity address with 8 matching characters, fund it, have the txs go through within a minute.

u/superphiz shares an idea of something like the equivalent of the Nobel prize for Ethereum

View on Reddit →

Free idea: a few years ago, someone told me they’d like to see a Nobel Prize equivalent for Ethereum, but it hasn’t happened yet.

The chain will turn 10 years old in ~18 months, which seems like great timing for this! It gives enough time to make it happen properly, too 😄

- Tim Beiko

I really love this idea and could see it being something that EthFinance and/or the EVMaverick’s spearheaded.

u/Wurstgewitter shares a nice site he made gashighdontcry

View on Reddit →

Hi guys, I am currently building a little website, mostly to improve my typescript and next.js skills. I am a backend dev trying to get more into frontends for a while, partly because of my job.

I wanted to come up with an educational page about ethereum gas and L2s. The main points I want to bring across are how gas cost is not the same for every transaction, but depends on the type of transaction and especially the gas limit. Also I wanted to cover L2s and have an interactive option to compare the gas prices between L1 <> L2 (so far only mainnet and arbitrum)

There is a lot of confusion among newcomers about these topics, and maybe a website like this will help someone. I know there are similar pages, but as I said I mostly needed an excuse to build something haha.

Check out my prototype here gashighdontcry.net

Mobile view works but is not optimized yet.

While working on it I noticed that the arbiscan api always returns 0.1GWei for the gas price, so that part is kinda static, but afaik there is no better way to estimate arbitrum gas.

When you have ideas for more content, or notice bugs or whatever let me know!

u/Maswasnos Cheers to the folks who stuck around in the daily!

View on Reddit →

Pretty incredible to be closing in on $4k again after 2 years. Cheers to the folks who stuck around in the daily, I wasn’t as active as I was in 2021/22 but I still read it almost every day.

u/jtnichol Rocketschool in session

View on Reddit →

Rocket School now Live! EVMavericks ManeNet DAO + EthStaker + Rocket Pool - Class Is In Session!

💓♻️ https://twitter.com/ProDJKC/status/1765032313962811697

https://nitter.net/ProDJKC/status/1765032313962811697

📺 https://youtu.be/uue49JOSqjg

https://therocketschool.xyz/

u/SeaMonkey82 Reminds us Dencun March 13 (approx. 13:55 UTC)!

View on Reddit →

Reminder:

Dencun will activate on the Ethereum mainnet at epoch 269568, occuring on March 13, 2024 at 13:55 UTC. Node operators & stakers must upgrade their software to releases listed in this announcement.

u/Tricky_Troll ’s van got hit and the camping is jeopardised for now OO

View on Reddit →

Sorry guys, this is my fault. My van has been damaged after someone reversed into it and the door won’t close properly so camping has been jeopardised. I will do everything in my power to get the old girl up and running again so camping and the subsequent bull run can continue. Thank you for your understanding.

—(This is not a joke)—

EthDenver daily updates from u/austonst
EthDenver daily updates from u/llamachef
Week #57: February 23, 2024

Livestream Recording | POAP

Special guest Kevin Owocki joins us from Gitcoin and Green Pill (https://greenpill.network/), a network-society that exports regenerative digital infrastructure to the world.

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/Kitchen-Pudding8750

Ethereum

u/usesbinkvideo

89,343 hodlers subscribed (+23)

u/TimbukNine

$2,957

u/the-A-word

0.057

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Accumulate points,

The new crypto muscle joints,

Legal disappoints.

Shitpost of the week: u/Tricky_Troll

View on Reddit →

How do you do fellow digital asset securities investors? I would like to enquire about which registered broker-dealer you use to trade your digital asset securities such as Ethereum and others. I just don’t trust these “crypto exchanges” like Coinbase, nor do I trust open source code as you never know when it might fail! Could one of you please recommend me an SEC compliant platform which I can trust to be properly regulated? I only feel comfortable holding crypto under such regulations as anything else makes me worry about a 2007-style collapse.

u/SeaMonkey82 breaks the news of Besu being Dencun ready

View on Reddit →

Besu 24.1.2 released

Besu is Dencun Ready!!

This release is the minimum version that is required for the upcoming Ethereum Mainnet Dencun upgrade on March 13th. You must upgrade to this version (or greater) before then, or your node will no longer follow the chain. This is also a required version for Besu nodes on Ethereum Classic (ETC). This release does not contain other fixes or improvements. We plan on releasing more fixes, improvements, and features in our next release.

u/Infer114 has a remediation process for incorrect $STRK allocation

View on Reddit →

A resume for solo stakers and STRK airdrop, if you are not correctly identified, I think you should :

If you want to keep privacy regarding your public keys, you can DM wenmerge on X : https://twitter.com/Wenmerge2022/status/1757897430992056580

Hope I didn’t forgot anything about everything I’ve read here and there, and hope it helps !

u/Distant-Shores celebrates their 1,000th day on-chain!

View on Reddit →

This week I turn the page on being a 1000 days on chain. I like to share this with you, as I have a lot to thank this community for.

Getting from CEX to on chain is daunting and feels like stepping into the dark with dangers left and right.

By lurking on Ethfinance I learned some best practises for basic security and common on chain sense. This made me confident in exploring the early L2’s and dApps and qualifiing for, among others, ARB and OP. I got gifted an EVM lion and went on to stake on Gnosis and test for Diva. I rode the 2021 bull hype, and survived the 2022/2023 bear depths and despair.

From time to time I try to contribute here and help others out.

Thank you Ethfinanciers for having me! May you live long and prosper.

Now onwards to the next 1000 days!

u/newtosh breaks some NFT news and u/nothingnotnever explains what it means

View on Reddit →

u/newtosh:

NFT news: Yuga Labs bought the Moonbirds project. They already “own” Bored Apes (which they created), and CryptoPunks (which they bought from Larva Labs).


View on Reddit →

u/nothingnotnever:

Moonbirds is CC0 so no one has the copyright to individual NFTs, but Yuga now owns the name and the team. It was an “all stock deal”, no money. The plan is to integrate them into their Otherside metaverse platform. Many apes are pissed as they see it as diluting the ape brand, but Yuga leadership is saying it’s good for all holders in their ecosystem, which includes apes, mutants, cryptopunks, meebits, 10KTF, Kodas, Otherdeeds, HV-MTL, Mara, and doggos. Maybe I missed one.

u/pbrody shares the return of the EY blockchain summit!

View on Reddit →

GM Everyone! EY Blockchain Summit is back (again). You can’t keep us down :)

Registration is here and we’ll do our usual collaboration with EthFinance on Q&A.

This year we’re VERY FOCUSED on finance because of the global regulatory convergence going on. We’ll be doing the summit from London with a big focus on Europe’s increasing regulatory maturity.

Speakers include the Lord Mayor of London and we’ve got folks from Fnality, Coinbase and more. We’ll also be showing our newest state-of-the-art privacy tech as well.

Registration & Agenda (Continuously Updated)

u/domotheus was just interviewed on Bankless!

View on Reddit →

Bankless episode with yours truly is out

It’s a long one, but it’s fairly comprehensive of the whole roadmap (still had a lot to say tho)

u/benido2030 updates the community driven ETH bull case

View on Reddit →

Some months ago I started to ask for input for a community driven ETH bull case. Today I would like to update it, cause I think the bull market and developments of the past 5 months have changed some of the points we collected back then!

Ethereum the network

Ether the asset

I have deleted one bullet (that talks about nation state demand) and have exchanged it basically with the ETF , cause at this point this seems like a plausible narrative and all institutions could buy ETH that way. On top I have added new demand drivers like Eigenlayer and the effects it already had and will have.

I am sure there is more, so keep it coming if you think there should be more added!

u/hanniabu is back to building cool things, this time for Farcaster users

View on Reddit →

After creating my farcaster account, I realized there wasn’t a way to easily share your handle in a frontend-agnostic way so i created https://mycaster.xyz.

With Mycaster you can easily create a share link which will redirect to whichever frontend the person opening the link uses.

How does it work?

The person that wants to share their account enters their farcaster handle and selects Generate Link. This will automatically copy the link to clipboard so you can share it.

For the people that click your link, they can select their preferred frontend to be redirected to. Their selection will be remembered and automatically forward them the next time they use a MyCaster share link.

Try it out! https://mycaster.xyz/?p=hanniabu

https://twitter.com/hanni_abu/status/1759638494551363609

u/benido2030 introduces EthFinance’s 3 $STRK delegates

View on Reddit →

The day has (almost) finally arrived, Starknet has announced the $STRK token will be launched and airdropped tomorrow. If you are part of the airdrop: Congratz! 

Now some of you will probably dump it and that’s okay. But for those that will keep it, you probably know that you will have to make a decision soon, because $STRK is a governance token and so you will have to pick a delegate. In the past couple of weeks and months we have found three delegates that would like to represent the community within the starknet ecosystem:

While atleft and _weboftrust are delegates already (governance was kicked off even before the token was airdropped, they both got $STRK delegated by the starknet foundation), panthoreon is a new delegate. You can find a little more info about that here. Panthoreon shared some thoughts, insights and motivation here

So when you claim and delegate, keep these three names / delegates in mind. The goal is that all three delegates are open to listening to your feedback and vote based on comments and discussions happening on reddit. So instead of delegating to some maybe famous name from CT, that will probably not take your opinion and arguments into account, I think it would be beautiful if some of us delegated to “our delegates”. 

u/benido2030 explains StarkNet for anyone out of the loop

View on Reddit →

Starknet is one of the very few non-EVM layer2s. The other very famous ones (OP, ARB, zksync, etc.) are (zk)EVMs. So it is unique in that sense, users need a different wallet and hence the UX is different than what we “usually” see. This is also true for developers, since they need to develop in Cairo, the programming language for Starknet. Because of that (almost?) all apps you can use on starknet are starknet-only since it’s not easy to bring e.g. Uniswap or AAVE to Starknet.

I believe there are only smart contract wallets. Account abstraction is natively built into Starknet. Also STRK can be used to pay gas in the future.

u/baerbelleksa reminds those receiving an airdrop to take a moment to think about helping others

View on Reddit →

now that ETH’s nearing $3K, consider sharing some wealth to help folks in need 💗

Seeds: Crypto Mutual Aid is on Juicebox:

https://juicebox.money/v2/p/624

If unfamiliar, Seeds has helped folks in need in 29 countries & counting. Because DeFi, the ecosystem can successfully offer aid where tradfi and traditional aid fail.

**

One example:

Kana Piath, a schoolchild in South Sudan, couldn’t afford to continue elementary school, so her grandmother redeemed a SEED to ask for help.

The Seeds community got them the funds they needed so she could continue school.

They sent a thank you note that said Kana was so excited she ran to school at 6 am the first day back to catch up with her friends. :)

Week #56: February 16, 2024

Livestream Recording | POAP Checkout

Announcements

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/Colombian_Meatsmoker

$2847

u/FrenktheTank

0.0544

u/usesbinkvideo

89,350 hodlers subscribed (-17)

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

The next fork in March,

Continously overarch,

Leave the rest to parch.

Shitpost of the week: u/doomfuzzslayer

View on Reddit →

Guys I’m really worried. Cardano. You’ve heard of it right? Pretty sure the founder and lead dev - can’t remember his name but he has a dope beard - also the founder of playboy (or maybe it’s one of those boomer porn mags - hustler?) Anyway dude is LEGIT and recently announced they’re moving to ON CHAIN GOVERNANCE! You can’t get more decentralized than that. Pure democracy. Tokens = votes just like in the REAL WORLD. Eth and dare I say Btc need to get their shit together. Btc is a horse and buggy (with shitty suspension). Eth is a stock car (leaking oil). Solana is a space ship (leaky o ring - we know how that ends). Algorand is…sorry lost my train of thought. Cardano tho. They’ve FIGURED IT OUT!

You’re on alert eth devs. The time of autocratic rule will soon be over. On chain governance - pure clean democracy as it should be - is our future.

u/benido2030 was looking for a new EthFinance $STRK delegate and u/panthoreon stepped up!

View on Reddit →

u/benido2030:

Argent yesterday announced on twitter (you’ll not see me using that new “brand”) that

The Starknet airdrop is coming soon 🪂

I think Argent and Starknet are in a rather strong partnership. Argent is now a Starknet only wallet (Ethereum etc technically still works, but I think all other chains are “legacy” by now). If they post stuff like that, it’s really close.

We have two members from the community already that would like to be “our” delegate:

They both have been delegates for some time, since Starknet governance is already up and running. This is great, they know how it all works, they are known (both here and within the starknet ecosystem), so these are great people to delegate to.

But I would still like to find a 3rd, “fresh” delegate, someone who has not been a delegate but is familiar with Starknet, wants to go into governance and has the time and energy to listen to this community.

This time I would like to change the process a little. If there are people that want to be a delegate there, feel free to leave a comment. But since last time there was only tricky (and they sadly had to drop out again because of missing free time for such an adventure) I think we could also propose people we feel would make a great delegate. Those members of course have to decide if they want to do it (and potentially starknet is not the best protocol if they are not users/ familiar) but at least we can get a discussion started :)


View on Reddit →

u/panthoreon:

So in response to this post from yesterday and the thread on farcaster: I would like to get more involved with the ethereum community, so I would be honored if elected as a delegate for starknet.

I am a non-dev person with a mechanical engineering background, working in the supply chain field with a wide variety of functional experiences like network planning, procurement, demand planning, and logistics. My background equipped me with strong logic-based thinking, process mapping, and root cause analysis / problem solving skills.

As a person, I come from a very humble background that I believe has granted me a more holistic worldview; born and raised in Turkey, where corruption and poor fiscal management are like bread & butter (hence we see a wider adoption of crypto there):

I am very familiar with oppression, I know how it feels to be completely insecure in the midst of a military coup. I know what being tear gassed just for walking on the wrong street feels like. I know first-hand that to a third worlder, blockchain technologies mean a whole lot more in financial sovereignty.

Yet, I have also gained perspective of the Western world as i have been living in US for the past 10+ years, developing my expertise in Supply chain.

A bit on the lighter side; I am a fitness enthusiast and have been a division 1 athlete in the past, I have self-taught art to a pretty serious level (primarily drawing) from imitating Spiderman comic books as a kid, and a huge animal-lover that spends a lot of his time with his two dogs.

I have known about ethereum since the single digit price times but was at the time not interested in “crypto”, seeing only gambling as its usecase back then.

I got more interested as the ecosystem developed and we started seeing real applications of DeFi, when I joined this community and have been a relatively silent reader that contributes every once in a while ever since. I am part of EVMavericks and active in a few other groups on Discord where you can find me under another handle: Aybala.

My real “Aha” moment happened when - thanks to this awesome community - I attended an EY blockchain conference in NYC, and learned about Baseline and the potential applications of zero-knowledge within my industry, supply chain. Ever since, I have been more invested, both financially and timewise, in the overall blockchain ecosystem.

As a non-dev and a non-social media person, there are fewer possibilities to contribute to the ecosystem but being a delegate is something I can do.

I can commit to you all that I would invest the necessary time to ensure the best interests of this group, that I can bring to the table a perspective that is able to empathize and consider a wider ranges of human experience and be meticulous and process-driven in approaching any proposals / initiatives.

I appreciate everyone’s time reading this and the consideration. Let me know if there is anything I can answer for you.

u/HombreDeCamote shares a long journey with a happy ending

View on Reddit →

A year ago I lost access to a significant to me amount of ETH. Since then I had been working with developers from Offchain Labs and The Arbitrum Foundation to retrieve the funds. Two weeks ago, following an incredible amount of effort from some big-brained devs, developers from The Arbitrum Foundation deployed retrieval contracts. Unfortunately the contracts were front run which resulted in the ETH being sacrificed and converted to a large block proposer fee. This would be similar to if I dropped a dollar on your front yard and asked you to pass it to me but when you reached out to do so, someone ran between us and grabbed the dollar.

I followed the transactions using a block explorer and noted that white hat hacker c0ffeebabe.eth had also attempted to rescue my funds but was also unable. I learned that c0ffeebabe.eth has used their skills to protect everyday users, in once instance they rescued $5.7M/2879 ETH from hackers and returned every cent/gwei, so I reached out for help. They, and users from this sub, were able to help me confirm that the proposal fee address belonging to Staked, which was recently acquired by Kraken Digital Asset Exchange.

I was able to get in touch with several decision makers at both organizations. I explained the situation and provided documentation to prove the ETH had belonged to me till I lost access. Within a few short days they told me they had decided to return my ETH to me. As far as I know this is the first time a validator has returned a block proposal fee in an instance of theft or exploit , but please correct me if I am wrong. Regardless, I hope that the actions of Staked, Kraken, the Arbitrum Foundation, and OffChain Labs helps to set industry precedent moving forward.

I am incredibly grateful and incredibly lucky for the way this turned out. Without the support, sympathy, and skill of many strangers this outcome would not have been possible. Thank you to all those involved and to members of this community who helped me see this through.

u/Itur_ad_Astra reminds us to keep pushing for execution client change as we are currently in the danger zone

View on Reddit →

So, I’ve had an idea about client diversity (and how to push more people to switch clients).

See, we are right now in a “tragedy of the commons” situation, where people CBA to switch from Geth because its usage is falling anyways, so someone else will do it, right?

Plus, psychologically, a 72% Geth dominance looks way better than a 85% Geth dominance. And on top of that, the risk seems lower to just stay on Geth.

But we all know that there’s no difference whether the supermajority client is at 66% or at 90%. A bad block will finalize immeiately, and stakers will lose their stake. Most people on Ethfinance are aware of that.

The risk is the same… right? Well, no.

So, here’s my idea. I think that, if you believe in the dynamics of “Layer 0”, a 66% supermajority is much, much worse than a 90% supermajority for stakers running the supermajority client.

At 90% supermajority, I can easily see the community deciding on either a rollback (yeah, yeah, I know, never again, code is law etc., but let’s be realistic) or accepting the Geth block as the correct one and going forward from there, either with some kind of compensation for Nethermind/Besu clients, or even no compensation.

At 90% supermajority, there would be little discussion and it’s clear to me what would happen. And it’s clearer the higher the Geth dominance is.

However, I think that at 66% things would be way more messier and contentious. This is now the “danger zone” where enough of the community did the right thing and have a strong enough voice, that the outcome of a supermajority client bug will be respected. This is where Geth users find themselves losing their stake.

And they might have a much more quiet voice than they expect. Centralized staking services, which are the ones that are mostly refusing to do the right thing (I’m looking at you, Coinbase and Binance) will just lose someone else’s money, not their own. They got their cut on your profits, they lost your stake, c’est la vie. There might be some lawsuits, they are used to that.

Change your clients. We are far from dealing with this and the situation is still critical.

*Sidenote: I’m very much a layman (albeit a staking one), so I’d like some input if my thinking is wrong.


Something to note with the values on clientdiversity.org is the lower the geth dominance does, the less accurate it is

/- hanniabu

u/superphiz reminds us to be cautious with unnecessary protocol risk

View on Reddit →

As of today, Eigenlayer reports 2,470,100 Ether staked. With a total of 30,338,443 Ether staked (according to Hildobby), this represents about 8% of the total staked Eth under withdraw contract addresses developed by Eigenlayer. This is far from the 22% threshold I advocate, but it’s wise to look ahead.

On one hand, I don’t see this as a problem at all. Eigenlayer is cool, and restaking is interesting. I’ve made a small deposit into Eigenlayer and I look forward to seeing what it does.

On the other hand, amassing 8% of the validator withdrawal addresses prior to launch might send some red flags, especially considering that Eigenlayer has indicated that they have no intention of self limiting (It’s somewhere in that chat, I don’t have a time stamp, feel free to offer it).

Why is this concerning? It represents unnecessary protocol risk. Our ultimate mission as stakers is to secure the beacon chain. It’s great if we can eek out extra revenue doing other tasks, but the social contract is to secure the beacon chain. We ought to recognize the real smart contract and governance risks here and recognize that any time we shift the balance and aggregate risk in one large pool we’re posing a threat to the underlying protocol.

As usual, I’m not directing this to you, dear friend, I’m talking about the larger ecosystem risk. I imagine you’re participating in Eigenlayer with less than 300,000 staked Ether and you likely represent less than 1% of the Ether staked on the beacon chain. I’m telling you that large entities who have no commitment to the success of Ethereum may put our network at risk and you ought to be aware of that AND ready to protect the protocol as well as your investment. You don’t have to stand idly by as your work is eroded by anyone.

I’m not asking you to avoid Eigenlayer or any of the cool ancillary platforms that have sprung up around it, I’m asking you to zoom out and recognize the dangers of aggregating risk. This isn’t about Eigenlayer - it’s about ANY risk aggregator who is ever willing to add existential risk to our chain. And I’ll repeat myself: I LIKE the Eigenlayer concept.

u/Tricky_Troll wants to put pressure on certain teams to implement better anti-scam systems

View on Reddit →

So, regarding u/HiPattern’s post yesterday about wallet dusting attacks which impersonate the most recent wallet you sent funds to in an effort to make it look like the top wallet in your Etherscan history is yours but it’s actually just a similar wallet which is not yours in an effort to get you to accidentally send funds to their wallet next time you need to send to your previous sender. (Sorry, it’s hard to explain, check out the post if you didn’t get that.)

So currently, people are losing lots of money to these sneaky scams. I could very well see a dark future where I myself let my guard down when selling some ETH to get on the property ladder one day and when I go to transfer the funds to an exchange, I click the wrong account since it’s right there at the top of my wallet’s history and boom. My hopes and dreams of stability in where I live are gone for years to come.

Just imagine thinking you can finally buy a house for your family and then at the last minute one slip up and that whole dream was taken from you. This has happened to people before and it will happen again.

But this is completely avoidable! This is an extremely easy issue to solve. While it would be nice to get everyone to have better OpSec, it’s not going to happen. However, one really minor tweak to Etherscan and it could be solved.

  1. They could add a simple bit of code to either display the Jazzicon/block profile pic next to every wallet address. This way, even though it is small, one could see that the address is different since the colour/design is different.

  2. They could add some code to flag wallets which have similar starting and ending letters. It could be a simple orange warning sign or something which has more info if you have over it or a big banner if you actually click on said wallet.

Best of all, Etherscan is good at this sort of stuff usually. They added a revoke token permissions app to prevent those affected by exploits and that was a much more complicated addition. On the simpler side, they tag known scam wallets as such.

So I’d like this to be a call to action for this community. We have done this before. Previously when we have wanted to get an idea broadcast out to the wider Ethereum community or a certain protocol, we have been able to do it if we all do our part. So please, if anyone knows someone who works for Etherscan or if you have followers/influence on other platforms like Twitter. Please, tell Etherscan to automatically flag dust attack wallets. If we are successful, we could successfully save many people from losing their life savings to this avoidable tragedy.

This is quite possibly one of the easiest changes which could be made to prevent a lot of money from falling into the wrong hands.

Edit: I guess this also should be done in wallets too like MetaMask. So why stop at Etherscan? Let’s make a fuss to every wallet provider which doesn’t have some kind of system to prevent this. It should be as simple as if you shorten wallet addresses, have a kind of warning bubble if there are similar addresses you have previously sent funds to.

u/TheHansGruber is grateful for retroactive public goods funding

View on Reddit →

As some of you may know, since the launch of the holesky testnet last September I have been maintaining and testing several thousand genesis validators alongside a dozen or so other meganerds from the rocketpool community. This is in spite of the fact that I almost certainly am responsible for bringing the average IQ of this group down a couple of points.

Over the last few months I have picked up a number of skills required for this sort of thing and I get a great deal of satisfaction knowing I am contributing in a small way to the development and progression of ethereum. I’ll have these guys running for as long as the testnet needs ’em.

Anyway…I am proud to be able to say that, as of yesterday, I have received my first ever retroactive public goods funding from the folks over at ethstaker for operating these validators. Some months ago u/nixorokish posted in here about there being the possibility of a small grant/funding, and I inquired. I have a little extra pep in my step today. It isn’t a huge pile of cash or anything, it’s only meant to cover most of the cost of operating the machines. But it feels like a huge pile of cash to me, because for the first time I have tangible proof that I am, in fact, doing something useful in the space…other than shitposting on CT and farcaster, which I will contrinue to do regardless.

u/OkDragonfruit1929 summarises Ethereum

View on Reddit →

Ethereum is not just a cryptocurrency; it’s a platform for decentralized applications, smart contracts, and various decentralized finance projects. This ecosystem supports a wide range of applications, from finance and gaming to art and identity verification and tokenization of real-world assets and tokenization of commodities, offering a utility that goes infinitely beyond what Bitcoin was designed for. Bitcoin primarily serves as digital gold or a store of value, whereas Ethereum aims to be an open, transparent, equitable settlement layer for the entire planet.

The Ethereum network has spawned numerous Layer 2 solutions (L2s) like Optimism, Arbitrum, and zkSync, which aim to scale the network by handling transactions off the main Ethereum chain, thereby increasing throughput and reducing fees. This is in contrast to Bitcoin, which has largely remained focused on Layer 1 (L1) with some off-chain solutions like the Lightning Network, which is dying in front of our eyes. The growth and adoption of L2s arguably add to Ethereum’s utility and value. With zero-knowledge proofs coming sooner than anyone expects, liquidity fragmentation between the L2s and L1 will soon be a thing of the past.

Ethereum’s transition to Proof of Stake (PoS) with the Merge significantly altered its issuance model and energy consumption. In PoS, validators stake ETH to secure the network, which is more energy-efficient than Bitcoin’s Proof of Work (PoW) model. The issuance model under PoS is designed to be fairer and more sustainable, with rewards not exponentially weighted toward the ultra-wealthy with exponentially more computational power, but on rather on a linear model that scales fairly with the amount of ETH staked. This levels the playing field for earning transaction fees and block rewards, contrasting with Bitcoin’s model where mining power concentration can lead to extreme disparities in earning potential where the APR of the ultra-wealthy is magnitudes higher than the APR allotted to the lower 99%.

EIP-1559 introduced a mechanism for burning a portion of transaction fees, reducing the overall supply of ETH over time. This deflationary pressure is unique compared to Bitcoin’s currently inflating supply until it finally caps at 21 million. The fee market mechanism of Ethereum also aims to make transaction fees more predictable.

Ethereum’s ecosystem supports multiple client implementations, fostering a diverse and resilient network. This diversity can reduce the risk of network-wide failures due to bugs in a single client implementation, a contrast to the single point of failure landscape of Bitcoin’s one and only client.

Despite these advantages, the market valuation of ETH compared to BTC has been far too heavily influenced by narrative, “store-of-value” meme-ability, speculation, investor sentiment, and market dynamics. While Ethereum’s technological and ecosystem advancements provide ETH a stronger value proposition, the market has failed to notice.

u/hanniabu warns us of a clever new scam going around

View on Reddit →

PSA: New toxic address scam

They register an ENS with your address, such as 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045.eth (vitalik’s address) so when you search for an address in an app it’ll show in the results, potentially even as the first result as shown here:

https://x.com/haydenzadams/status/1757632516444311937

u/skythe4 breaks the news of the StarkWare airdrop, u/Luukiemans breaks down the distribution, and u/superphiz tells us how to claim and more

View on Reddit →

u/skythe4:

itshappening.gif

gm STRK ✨✨✨ Read more: https://medium.com/@StarknetFoundation/introducing-the-starknet-provisions-program-05d03ce13970

https://twitter.com/StarknetFndn/status/1757676598730342761


Let us intro: The Starknet Provisions Program Claiming starts Feb 20, 2024, 12pm UTC Check your eligibility 👇 provisions.starknet.io

https://twitter.com/StarknetFndn/status/1757676600596811928


View on Reddit →

u/Luukiemans:

Happy Valentine’s Day stakers ETH Community:

You staked ETH up until the Merge - September 15th, 2022. Note that if you staked via a staking pool or centralized exchange you can’t claim ETH directly through the portal. Your provider should claim the allocated STRK and distribute it to you.

Allocation:


View on Reddit →

u/superphiz:

In case no one has mentioned this, to check your STRK eligibility on an Ethereum address, you have to go to the claim page and click the third tab on the left before you enter the address. This is kind of a confusing ux.

Here’s what the claim page looks like after you click the third tab: https://ibb.co/KVX2C4S

And the claim may be based on your deposit address or your withdrawal address, so check both if you don’t see it.

I think all pre-merge beacon chain depositors are eligible.

Don’t forget to appreciate Starknet for being the first airdrop to show significant support to the solo/home staking community!

Also, it looks like Rocket Pool stakers aren’t able to claim right now, but I’m aware of internal discussions that are very like to conclude with Rocket Pool node operators claiming STRK.

Week #55: February 9, 2024

Livestream Recording | POAP Checkout

Announcements

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/FrenktheTank

$2450.76

u/alexiskef

0.053

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

The next fork in March,

Continously overarch,

Leave the rest to parch.

Shitpost of the week: u/doomfuzzslayer

View on Reddit →

I got your points. Meet me on the corner of West 32nd and Buterin at 10 tonight. Dress like you’re leaving the bar early heading home to a WoW raid. Act casual - like you know me. Talk in a Lithuanian accent - my devs don’t like Americans. Bring your seed phrase and pass it when we shake. If you hear somebody with a Swiss accent just keep moving and don’t make eye contact. Our danger word is Cardano. You hear that word. Get the hell out of there. if this works your points will show up within 48 hours. These are loyalty points - for fun. Like maybe we’ll let you on an AMA with the devs some day. We’re NOT doing a token - hear me? Don’t even mention a token. If you do…let’s just say not all airdrops end well if you catch my drift

u/TheHansGruber is looking into cool new staking hardware

View on Reddit →

Spent some time at the rack last night. Updating the staking machines, swapping some patch cables, etc. I’ve got a new (to me) managed POE+ switch I’m pretty excited about. Gonna learn how to do vlan stuff for better security, and so I can install some POE cameras. Gotta rent a trenching machine and bury some cable too…not really excited about that part.

In going down the POE rabbit hole I came across a couple of interesting POE devices…including a POE NUC…which is awesome. It’s priced like enterprise grade hardware…because it is. But a fanless, POE NUC that has the processing power to stake, yet is power efficient enough to be able to operate over POE is the dream. I already have the machine I’ll be using as a nodeset operator setup, but I am considering throwing my hat into operation solo staker with etherfi too. If I could just hit one of these lottery blocks people keep talking about I would consider grabbing one of these POE NUCs.

While doing my normal monitoring I noticed that, on mainnet validators, the rewards per epoch have begun to consistently drop below 10,000 gwei…and I wonder if we will ever see 5 figure rewards epochs again. Holesky validators never saw 10xxx gwei rewards…it launched with well over a million validators…I think we have closer to 1.5 million validating currently. These lil guys are receiving 7xxx gwei per epoch. Will we see 1.5 million active validators on mainnet? I’m guessing that might be close to the upper limit of what people will accept as a return on their investment. Depending on what restaking does to overall APR, of course. I don’t have enough info to begin to speculate on that.

The dencun upgrade went boringly (good!) on sepolia, and after updating the holesky machine the consensus client log reads “INFO Ready for Deneb”. Me too, computer. Me too. Mainnet soon after.

(in the voice of the thing): IT’S BLOBBERIN’ TIME

u/benido2030 gives us a comprehensive rundown on restaking

View on Reddit →

What is restaking?

I will try to explain using EigenLayer as an example, following up on u/stablecoins post, but also because I have seen a lot of comments/ questions and think the concept isn’t really clear. Please keep in mind that I am also writing this to structure my thoughts, but am not an expert at all, so things here might be wrong. If you spot mistakes, please correct them!

What is the general idea of restaking?

Restaking means that we use capital that is staked to secure Ethereum - both staked ETH in validators but also via LSTs - and also use it to secure something else (and something else).

What kind of things can be secured by restaking?

Basically anything. It could be an oracle. A data availability solution. An L2/ appchain. Anything that needs security.

Why is this needed?

Bootstrapping security for a new protocol is hard, especially if you want the validator set to be decentralized. Eigenlayer wants to be “a marketplace for trust”. On this marketplace protocols that need trust/ security can tap into the already existing staked capital that Ethereum offers and build on that. Eigenlayer’s thesis is that this is way easier than building it on your own. Their argument also builds on web2: Why have your own servers/ authentication etc. when you can just build in the cloud (e.g. AWS) or use Auth0 etc. = existing solutions that allow you to focus on your core product.

Important: the existing solution is not Eigenlayer, but the security offered by stakers / holders of LSTs.

So how does this marketplace = Eigenlayer work?

New protocols that want to build on Eigenlayer basically define what kind of trust/ security they need. This comes down to: Do they want only solo / home stakers to secure their network? Or are LSTs okay as well?

At the same time they define what they are willing to offer for that service: How much are they willing to pay for securing their network? This could be in ETH, their native token etc.

Also they of course define what the restakers have to do to secure the network. This means they provide a software/ client that the restakers have to run to secure the protocol. This is similar to what stakers run with execution and consensus clients to secure Ethereum. All these are called “AVSs”. Actively validated services. Actively. Someone needs to do an action.

Restakers start by either creating an Eigenpod or by depositing LSTs. An Eigenpod is a smart contract that a validator points to. So if a validator wants to exit the beaconchain, the ETH goes to the Eigenpod first. Similarly by depositing LSTs into Eigenlayer you deposit it into a smart contract. If the restaker wants to exit Eigenlayer there is a 7 day period before they can finally really withdraw their assets.

This means that the assets don’t leave the validator or the Eigenlayer smart contract. The secured protocol does not control the assets.

After depositing restakers then opt-in if they are willing to secure the new protocol. They accept the offer made by the protocol, run the client and secure the network and are paid for this service according to the terms.

There will also be operators that run the clients for you. So the restaker deposits, but delegates the actual management of the clients to a 3rd party. In that case you obviously trust someone else to do the job of securing correctly. Just like you do with LSTs or dPoS in other ecosystems. These operators of course ask for a fee to do that.

If they behave according to the protocols rules (= they secure the protocol as intended) they are paid. If they misbehave (=they attack the protocol they are supposed to secure) they can be slashed just like someone could be slashed on the beaconchain.

So how does the slashing work now? If they are caught, the protocol can ask Eigenlayer to slash the restaker. Eigenlayer right now has a “slashing committee” (my term, don’t know if that’s the real name of it). This committee basically checks if the restaker really misbehaved and if the slashing request is fair. So right now a protocol can’t just slash you as a restaker, there is a (centralized!) security mechanism in place.

If the restaker indeed attacked the network, they can’t withdraw their LSTs and the LSTs are slashed. If they have a validator right now (!) no one can force them to exit the validator, so they can continue validating Ethereum. But when they want to exit, they will withdraw to the eigenpod and then the Eigenlayer protocol can slash the portion that is supposed to be slashed before the restaker can withdraw the rest.

I don’t know what happens to the assets that are being slashed. Maybe someone can add that? Are those burned? Going to the protocol that did the slashing? (That would be a strange incentive, but maybe that’s the case)

So where does the yield come from?

First of all: There is no yield by just depositing. Only if you start securing one (or more) protocols, you will receive yield. This also means that right now there is only smart contract risk, no slashing etc.

This yield is what these protocols offer to restakers for their service securing the new protocol. It can be paid in different tokens (or a mix). Could be new issuance. Could be from their treasury. Could be part of the fees they make with the product running on top.

-–

But Benido, this all sounds great, I was told Eigenlayer is a huge risk, I don’t get it, that is like risk free yield on top of risk free yield?

If you were around in spring of 2022, you might remember 3AC (Three Arrows Capital). They were long when the market was going down and at one point lending firms ask for more capital from 3AC. What did 3AC do? They used the same collateral over and over again. So what happened? All lending firms found out that the collateral they thought they could liquidate (“slash”) was posted as collateral with other lenders as well. 3AC basically “restaked” the same collateral over and over again. No lending firm could liquidate the collateral and they all went tits up, the whole market crashed and it was a dark time…

Of course this was off chain and Eigenlayer is onchain. With restaking we know how many times a certain asset is used to secure a certain protocol. But in the end something similar could happen. Deposit asset X once, attack several protocols and all protocols find out that they can’t slash, because it was slashed already.

On top we could see borrowing and lending protocols that allow LRTs (Liquid Restaking Tokens) to be deposited. So an attacker could even borrow against it to acquire more and attack cheaply…

Using the same collateral several times is something that can be abused. Yes, it’s onchain, so more transparent, but that doesn’t make it bullet proof. We will witness attacks. This might lead to a cascade of liquidations and could take down so many protocols… and always remember: These assets started as stake to secure Ethereum, in a worst case scenario ETH’s security might be diminished and attacks might be possible in ways we can’t even imagine today.

-–

I hope this explains restaking, but it might just be more confusing because I am missing things, the structure sucks etc., I don’t know. If you have questions, post them!

u/alexiskef introduces POAP Global, a cool new use case!

View on Reddit →

Exciting news for the POAP enthusiasts!

Poap Global, a project which is not officially related to POAP but rather a community project that utilizes the POAP tools, just had their official launch!

(Before publishing this comment, I asked Patricio Worthalter, the POAP founder, regarding the projects legitimacy, and he gave me a thumbs-up: "Yes! We support them. The founder is a valued member of the official POAP curation body. This is a side gig")

So, I went through their website and will try to explain what they are, and what it is that they are launching!

What is Poap Global? It’s a "a groundbreaking extension of the proof of attendance protocol concept operated by hodl labs. Imagine being part of a worldwide irl scavenger hunt. Only in this game, the treasures are unique digital collectibles at every landmark, and the playground is planet earth"

How do you participate? “You can either “****host****” a poap at a location of your choice or travel and collect other people’s poaps!"

Hosts
You can ‘host’ a poap at a location of your choosing. Whether it’s a favorite hiking trail, a landmark, or a hidden gem in your city, you can make it a part of this global game.

So, how can you be a “Host”? Well, there are 3 steps:

  1. Submit location. You first choose a landmark, then design a POAP and submit it..
  2. Purchase a POAP NFC dispenser from their store. This is designed to be installed in proximity to your selected landmark. Visitors will be able to tap their phone against the nfc to instantly receive your special poap for that location.
  3. Program dispenser. When you first receive your dispenser you will be given a menu to select your approved poap and program it to the nfc.

There is also a Global Leaderboard (in the works) to "showcase top explorers and collectors", and a “dynamic globe that pinpoints where all the poaps are hidden”.

Collectors
As a traveler and explorer, you can embark on a journey to collect poaps from various locations hosted by others. It’s a digital treasure hunt that takes you to new and exciting places.

The idea seems to be a perfect use-case on how to further utilize the POAP protocol. I jumped right in and bought a small number of the NFC dispensers.. I plan to “install” them at my home town center and at my local sports teams’ soccer grounds..

u/_WebOfTrust shares their experience as a newcomer to running a node

View on Reddit →

Folks here understand and are comfortable running an ethereum node but sharing my learning and experience in running a non-staking node.

There is a learning curve and documentation needs some improvement, knowledge is silod within discord and in some case you are at the mercy of support from dev team. I learned a lot, definetly more comfortable sharing and talking about different clients, node and confident that I can help someone strugling with running a node. This was a test run on my Pi, waiting for proper hardware to test the script again.

Without the support and motivation from the members of this wholesome community, I would not have considered heading in this direction. So, thank you, my dudes.

u/superphiz gives some sound advice around taking worthwhile risks

View on Reddit →

Naw, this is pretty wise, even though it means you won’t get an early participant advantage IF restaking is successful.

In 2009, people who took a risk on bitcoin did well.

In 2014, people who took a risk on Ether tokens did well.

In 2015, people who took a risk on The DAO we’re bailed out in a one-time network fork.

In 2017, people who invested in ICOs like EOS lost lots of money on products that never materialized.

There’s really no way to say what will happen with restaking. I’m not convinced that there’s a large enough market to support what’s being built- maybe it will develop or maybe it’ll just trend toward other solutions. All of this is a risk and it’s wise to wait and see. As I’ve said publicly, I’m okay missing a huge win, and I’m going into all of these opportunities with a total of about 1% of my coins. I’m okay with any outcome.

I can sense that a lot of my investment-oriented friends think I’m just being negative, but I’m here for the long term success of Ethereum, not the flavor of the week. Just be who you are 😊

u/Ethical-trade shares some great news on the client diversity front!

View on Reddit →

Green day on the client diversity front!

A month ago, Geth’s market share was 84%, yesterday it was 78%, today it is 73%.

And also good news, the 5% difference between yesterday and today went to Nethermind, which makes the execution layer clients list as follows:

Geth - 73%

Besu - 14%

Nethermind - 12%

Erigon - 2%

I’ve not been able to identify the provider(s) that kept their words but I’m hoping one of our experts will soon be able to tell.

u/austonst shares Vitalik’s latest EthResearch post on the gas limit

View on Reddit →

Toni and Vitalik put together an ethresear.ch post on increasing the block gas limit. This topic had moment in the spotlight a few weeks ago when Vitalik suggested we might be able to handle a block size increase and kicked off a flood of discussion. I haven’t seen as much social media fuss recently, but with this post we’re getting into the research of if to do it, and how to do so safely. Their strategy for increasing the gas limit? Decreasing it first! Kinda.

The trouble is that large blocks are possibly an issue today, even without an increase. There’s a great figure in the post showing that reorged blocks tended to be almost two times larger (in bytes) than blocks that get finalized. Discussion about confounding factors aside, it does seem to suggest that a naive gas limit increase would hurt consensus health.

But block size comes in a distribution. The biggest blocks are a problem, but the median block size is 14.5x smaller than the maximum possible, very conservatively low. So what Toni and Vitalik are aiming to do is decrease the maximum block size and reduce variance so that we can safely increase the average block size.

With blobs coming up soon, the central idea is to increase the gas cost of calldata, the current way of getting data to the EVM. Increasing the gas cost of calldata means that blocks can hold less before they fill up, so we get a reduction in max block size. Then we could feel safe increasing the gas limit somewhat, presumably making space for more EVM execution, rather than data storage, to occur. And possibly make room for more blobs per slot.

The post has 5 different suggestions for how to do this. Personally, I like multi-dimensional EIP-1559 with a separate market for calldata, but the post argues that may be overly complex.

u/Set1Less warns us about a bad experience with a certain smart wallet

View on Reddit →

After many years in crypto. I seem to have run into the first instance of “losing” my wallet which is an account abstraction wallet from Particle Network(Ally.build created for the Linea tasks) created through signing in with email or twitter/discord, but Im unable to recover it for whatever reason. Apparently I may have used a different email or social account but I doubt that - I have tried logging back in with all my accounts and various combos, but it only loads a brand new wallet and not the ones which had the funds in it. The particle network discord is filled with people complaining about losing access to their wallet and the only reply they are getting is “read faq”

If you are a crypto native, using an AA wallet seems rather pointless - not only does it create a dependancy on a centralized wallet provider (another example is people losing access to Argent) but also bugs and or glitches can lead to you losing your wallet

Update: Particle wallet seems to be extremely poorly designed. There are multiple channels on their discord with people complaining about being unable to access their funds. Seems signing in with the original social media/email account sometimes results in a brand new wallet being created, and not the earlier wallet that was in use and funded by users. Whats worse is that the team is not willing to accept there is an issue, but instead seem to hold their ground that everything is working as expected - despite hundreds of users complaining about being locked out of their wallets. The fact that so many people have the same issue in accessing their wallet at the very least requires the wallet team to look at the issue more closely, instead of firing off “Read FAQ” template messages…

Its shameful that Linea are using such operators for points scheme where scores of users are unable to even access the wallet they created earlier.

At this point I can only warn others from using any wallet related to Particle network including Ally.Build

u/696_eth starts a discussion about securing your stack

View on Reddit →

Caught up on the last few dayllies and I’ve seen a feel people lose a lot. Can we talk about securing our bags a bit and thinking of how to avoid losing the entire stack? yes, it’s an unpleasant to thing to think about but I’d rather do it and not get rekt completely.

I’ll start with some of the things that I do and remember off the top of my head and feel free to chime in w others.

u/SikhSoldiers shares his latest write up about RocketPool

View on Reddit →

It has been a long time since I’ve made a top level post here it feels like. Alas, that’s what medical school does to a person. I am back to share with everyone my first major writing piece in over a year -

Hybrid Theory: Rocket Pool’s Middle Way Between Native Liquid Restaking and Pure Staking.

The Rocket Pool pDAO will soon be voting on allowing, alterning, or denying my proposed integration bounty. This essay outlines why I think it’s a good idea for Rocket Pool, Eigenlayer, and Ethereum writ large.

The broad idea is that we can enable node operators to join Eigenlayer without adding risk to rETH holders if we integrate in a way that retains senior debt for rocket pool. I dub this hybrid restaking. The essay goes through all the different ways people can restake today and outlines their flaws.

Hybrid restaking enables permsionless node operators to be sustainably profit maxi without harming rETH. Rocket Pool node operators could experience many airdrops and yield from different AVS services.

I am happy to answer any (sincere) questions.

https://mirror.xyz/jasperthefriendlyghost.eth/Xv7lLt8SVTfCaFnVie50IvvFrI4-TkQTgZcxb\_omEnA

Week #54: February 2, 2024

Livestream Recording | POAP

Special guest Lucas from PODS, a new way to publish, discover, and own your favorite podcasts.

Announcements

The morning trinity

View on Reddit →

u/Tilligan

Ethereum

u/FrenktheTank

$2307.80

u/Equal-Jellyfish1

0.0536

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

The hacker running,

While the tables are turning,

Ether is burning.

Shitpost of the week: u/SeaMonkey82

View on Reddit →

Every day thousands of validators are forced to toil away in centralized server farms under the dangerous working conditions of using a supermajority execution layer client. For just 32 ETH, you can give a validator a home and keep their stake safe from harm. Please give today.

u/superphiz updates us on client diversity moves and the Ethfinanciers who are helping us to track the situation. And u/alexiskef chimes in with a positive reply after putting pressure on Consensys.

View on Reddit →

u/superphiz:

You should know that the tide toward client diversity is changing dramatically. I’d like to thank the folks who have supported this work and those who have provided great updates here and I’d 100% encourage you to continue engaging in that community service role.

On January 22, 2024, Brian Armstrong from Coinbase responded to DCInvestor to say that he was taking a look at client diversity within Coinbase’s staking operation and they’ll report back in February. If they continue to suggest that other clients aren’t mature enough, we’ll wonder why Coinbase is utilizing open source software without contributing back to the code base as would be expected.

AllNodes, p2p.org, and Anker announced switching to minority clients within the past 24 hours. This switch is a great illustration of how efficiently large operations CAN shift clients if they choose to. The value of these victories, and the contributions by their respective contributors cannot be overstated. Thank you, Allnodes, P2P.org and Anker.

After an initially tone deaf defense, Stakefish seems to be changing its tune a bit, but despite a reference to the responsibility of client diversity, there’s little apparent commitment to make real changes, so lets watch this one closely.

Lido operators represent the largest group of validator operators, and our data suggests that they’re still highly reliant on geth. /u/yorickdowne has been a great advocate for decentralization from within lido, as a node operator for reducing the supermajority client, but the push hasn’t been very successful yet. I’m optimistic that at some point they’ll act in their own best interest.

Hanni Abu’s ClientDiversity.org is our best view into client diversity, and the execution client data currently sourced by word of mouth. While I look forward to more and better data, I deeply appreciate and value this source.

I’d like to send good vibes to everyone who is working on this front, groups like EthStaker, led by /u/nixorokish, Jasper the Friendly Ghost, who is pouring his passion into this [and I sure af hope he’s still thriving in med school], and Anthony Sassano who, through The Daily Gwei, beats this drum CONTINUOUSLY, also /u/interweaver for reaching out to providers and educating about the risks of a majoriy client fault. And perhaps the biggest thanks to /u/hanniabu through EtherAlpha who tirelessly develops data that enables all of us to see the threats ahead of us. Without his efforts we’d be flying blind toward a black hole.

None of this even mentions the deep and detailed academic work and research going into client diversity. Thanks to /u/haurog for providing insight into the academic and EIP efforts.

For my part, I’m continuing to go back to home stakers as the best future for the network. Giving lots of control of the network to third parties with little or nothing at stake is dangerous and undermines the goal of a decentralized network. If you have any way to stake from home, as a solo staker, Rocket Pool operator, DVT operator - whatever - I really encourage you to do that.

I’ve started a very [very] basic document to help us track these events, please feel free to hop in and help develop it as you see fit.


View on Reddit →

u/alexiskef:

😊 More good news on the client diversity front!

About 4 days ago, both u/0xboba and myself (following the news that 🦊/Consensys have began offering their users the ability to stake through their “own” validators), were wondering if anyone knew which Execution (and Consensus) clients Consensys Metamask Staking are using..

So, I contacted Consensys, who directed me to 🦊 support.. I asked the following:

“What are the client combinations (EL/CL) that my validators will be running? I understand from some (very) basic information the MM Staking web page provides, that you”operate diverse validator clients and distributed infrastructure hosted across multiple regions and cloud providers”, but in light of the recent software bugs in Besu and Nethermind, I need to know that my capital is not at risk by depending on a super-majority client like Geth"

They answered by just pointing me to some vague articles on their support page.. I pressed on, asking for details, and they just answered!

"As a company, Consensys is deeply committed to client diversity: we are developing an Execution Layer client (BESU) and a Consensus Layer client (Teku). Consensys Staking infrastructure uses an algorithm to distribute validators across multiple Execution and Consensus Layer clients. On the consensus layer, we run 2 clients for validator duties: Teku and Lighthouse. Our algorithm allocates new validators to Teku or Lighthouse to maintain a 50%-50% split between Teku and Lighthouse across the entire platform. On the execution layer, we currently run the majority of Geth. Our top priority is to increase BESU’s footprint: we aim to reach 50% of BESU in the coming weeks before the end of February. After the Merge, Consensys Staking evaluated the use of BESU and provided feedback and support to improve performances, in order to optimise rewards for End Users. The BESU team worked tirelessly, releasing new features such as a fully flat state DB and other improvements that bring BESU much closer to Geth performances. We started BESU rollout across our platform and will iteratively increase BESU’s footprint to reach 50% of all validators we operate before the end of February 2024. This progressive rollout aims to ensure no or limited performance degradation for our users. Beyond client diversity, Consensys Staking validators are distributed across 2 clouds (Azure, AWS) and 6 regions (2 in the US, 2 in Europe and 2 in Asia)"

😊

u/nixorokish reviews the Keystone hardware wallet and u/alexiskef also chimes in with a review.

View on Reddit →

u/nixorokish:

i tried out the keystone hardware wallet and wrote up some thoughts on it: https://twitter.com/nixorokish/status/1751319725274214825

i had more criticisms than praise and feel pretty lukewarm on it
summary:

I doooo like

kinda wanna try the Hito next. what i REALLY want is for Grid+ to make a smaller, travel-friendly wallet


View on Reddit →

u/alexiskef:

Huh! I actually saw your comment during Xmas (the one telling us you were going to try it..) and.. bought one right there and then!

I was actually meaning to ask you about your initial impression!

Personally, I have been more than happy with it. To the point where it has replaced my Ledger play-money wallet!

I too encountered an initial software upgrade problem, but everything worked at my second attempt.

I see what you mean with the too-much-QR codes, however that IS how the device works.. And on that note, I’ll add that both the scanning by the device (of the laptop QR) AND the blurred scanning by my laptop (of the wallet QRs), works flawlessly and super fast.. I find myself going through txs much faster than with my Ledger..

I do agree with you on the “start page” point. It IS quite confusing. I too initially wanted an “anchor” type of screen. Possibly (as you said), with a clear list of my wallets..

However, after reading more on the way the device works, I came across the article which explains the security provisions for multiple wallets.. The device loads each wallet with a different (seed phrase) AND pin. And you can only have one wallet active.. This is quite logical, as only YOU know the number of wallets (seed phrases) that are loaded (but hidden). This wouldn’t be possible with an “anchor” screen.. And even if users did not care for all their wallets to be listed on that screen, they’d still need to input a (different) pin, each and every time they went back onto that screen and selected a wallet..

My screen has not been scratched so far, but I do see your point here.. I am very (too..) careful while using and storing it.. I already ordered the pouch from their website..

I do also like the screen size, the clear signing info, and most importantly the biometrics..

One other thing I have to add, is that I got really really confused when trying to connect it to my (already Ledger-connected) Metamask extension.. As in super confused..

So I downloaded Rabby (thank you u/superphiz), and started fresh.. Everything made sense right there..

u/pa7x1 clarifies the fact that not all slashing is equal.

View on Reddit →

Most people confuse the different penalties the protocol may apply, because we tend to be a bit lazy with the penalties and call everything slashing. But there are different penalties. Slashing is just one of them and is almost impossible to trigger by a bug. And even when it happens due to operator mistake it slashes for 1 ETH. Just so you can see it directly, here is a very recent slashing.

https://beaconcha.in/validator/1061987

This validator lost 1 ETH (and a bit extra due to missed attestations after, but rounds to nothing) and is exited. But if there had been a mass slashing affecting many people, then the correlation penalty and inactivity leak kicks in, that’s what can take you to total loss of capital.

So as I was thinking about it these days I noticed that mixing all the penalties under slashing might be partly why we have supermajority issues. Nobody wants to lose money for something they don’t have control of. Much like people tend to fear traveling in airplanes more because the situation is out of your control. So losing your stack because of a bug you have no responsibility of is avoided, and everyone flocks to the client that is perceived safest.

But this is the wrong mental model of the network penalties, the network is not gonna punish you for uncorrelated issues because it’s designed to work under imperfect conditions. So this doesn’t really bother the network. If you have a bug with a very minor client you may be offline and missing attestations a few hours, maybe a day. That’s nothing, penalties for that are very small. You would need to be 60% of the year offline to lose money for inactivity. That’s how small those penalties are, a few hours here and there is not even something you can feel.

But if it loses at least 1/3 of the validators then the protocol gets pissed, because it cannot fulfill its duties. And then punishes, and can punish very heavily. The penalties here are the inactivity leak and the correlation penalty. This is what you should fear.

So the TL;DR of the story is that you shouldn’t fear client bugs per se. You should fear having the same bug as many people, that’s what triggers severe penalties. And the good news is that you have total control over it. You have the choice to not suffer significant loss of capital. It’s entirely on you. Choose minority clients.

u/HairyGuch made a website outlining the latest Ethereum roadmap.

View on Reddit →

Hey all. After Vitalik’s roadmap update, I took a stab at putting all the relevant information I knew of in a single place. Some of the sections remain a WIP, but I’m mostly happy with the layout.

https://ethroadmap.com/

I’m looking for feedback (or even contributors) to help make it better. I have thick skin so feel free to let her rip.

What’s not here that you think would be useful? How would you like to see each section fleshed out more?

u/interweaver shares Rocket School needing some final touches before launch and shares a sneak peek then shifts the focus onto the next hardfork

View on Reddit →

Do you run Rocket Pool minipools? Or are you interested in learning how to do so? EVMavericks have spent the past year and a half building Rocket School, a video course about Rocket Pool, and we need your help reviewing or testing it!

See the main post in r/ethstaker here: https://reddit.com/r/ethstaker/comments/1ae56h9/do_you_run_rocket_pool_minipools_or_are_you/

Sneak Peak


View on Reddit →

I would highly recommend anyone interested in Ethereum’s upcoming upgrades read Christine Kim’s notes on this week’s ACDC call. They contain a fantastic review of some of the EIPs under consideration for the Prague/Electra small-feature hardfork currently being targeted from the end of 2024, prior to the Verkle fork coming after it.

Only a few relatively small (but important) EIPs have been tentatively scheduled for inclusion; some of the slightly larger ticket items are still under debate, mostly because client devs believe including them would push Prague/Electra into 2025.

https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-126/

u/LogrisTheBard shines a light on the darker side of this space

View on Reddit →

I usually think of the minimum requirements for a PoW system as:

  1. There is basically infinite work to do. We can’t have the consensus of the chain halt because it’s waiting for work to arrive.

  2. Anyone can do work and submit a proof of that work for verification. If this was limited to known entities they could form a cabal that halt or at least slow the chain at will.

  3. Anyone can verify/validate how much work was done objectively (at least statistically). We have to be able to reach consensus on how much to reward each miner. Again, anonymity and open access prevents effective conspiracies.

  4. Validation takes far less time than it took to do the work. A system that relies on massive redundant computation for consensus will have to compensate too much per unit work done to be economically effective in the long run (looking at you Bitcoin).

In my previous post I talked about GenSyn which swapped out useless hashing for useful model training and the economic potential of such a solution. AI training just happens to be a task that meets all these criteria. There is basically infinite demand for AI training. I can think of a few other tasks such as protein folding (folding at home) or private key cracking but most computational tasks don’t meet these criteria and even some of those that do wouldn’t have much economic value. As such, while Gensyn seemed to have a neat idea, it didn’t seem to be a paradigm shift so much as a cool footnote in history. However, what happens if we relax requirement 3 a bit and allow for subjective consensus?

“But Logris, what the hell is subjective consensus?” Glad you asked! Basically it’s group think for deciding on things with no objective answer. The most common example of this is every oracle you’ve ever known. Smart contracts can only refer to chain state. They can’t see BTC price feeds on Kraken for example. All data that is off-chain is subjective from the perspective of the chain. Consensus on that data is decided subjectively by oracles. But not all oracles work alike. Chainlink is optimized for a small number of data streams with high liveness. UMA is optimized for the long-tail of queries with latency that can be measured in days.

The interesting part about UMA in my opinion is they apply a commit-reveal scheme and use stake to keep people honest. All participants submit their data in an encrypted way before a deadline, then submit the decryption keys for that data after the deadline when no answer can be changed. The do something like average the result and people with answers too far from the mean lose some of their stake. The obvious Schelling point for a submission is the truth. Expecting the average to be anything but that requires a conspiracy of submitters to distort the data. Unless you believe such a conspiracy exists, the rational answer to submit is the truest one you can find. All you’re really doing is measuring what you believe everyone else will believe, but in practice this works well when there is an objective answer rather than something either unknown or disputed. You could imagine how this could be used for anything: “Did Trump lose the 2020 election?”. I expect you’d get a very different answer if you shoved that question through this system than if you polled the average US voter. Honestly, I expect you’d get a better one.

So what would happen if you applied something like UMA consensus to a PoW blockchain? Addressing the points above in order.

  1. You would still need a stream of continuous work for miners to do. Either that work has to be submitted by validators or it needs to be self-evident to miners. Nothing here says the work has to actually be useful, just eventually verifiable.

  2. You still need permissionless mining but if the work isn’t self-evident the network may need some type of sampling to throttle the participants which means you’ll need miner stake for Sybil resistance.

  3. Validation would still be permissionless but validators would definitely need stake for subjective consensus to function.

  4. This is basically unchanged but I will note that nothing says payouts in a blockchain have to be immediate. It’s totally fine if people receive their payout a couple days later. That said, you want consensus to happen continuously so you probably want each participant running a program rather than manually voting.

What types of tasks could you now do that you previously couldn’t have? In order of least to highest villainy:

  1. Miners provide DePIn resources like data availability; Validators validate using data sampling.

  2. Miners submit a predictive price of the S&P 500 for the next day; Validators grade it retroactively. If this ever gets competitive it will distort global markets as large players buy and sell to make their predictions come true.

If you’re willing to have the validators create synthetic work to fill in any gaps as well:

  1. Break web2 Sybil resistance. Full multi-model media. Solve Captchas for bots so they can break into accounts easier. Create fake videos and images for KYC for identity thieves. Create explicit photos of Taylor Swift and distribute them on a data availability layer. Create Fake news for Russia to destroy democracies. Entirely peer to peer and anonymously. Destroy society as we know it.

“But Logris, who would create such an evil thing?” Glad you asked! Before you say this is far-fetched and sounds terrible, this is in principle the concept of BitTensor. So, uh, this is happening today and the payouts right now are about $25M a day. Just your heads up that we’re heading into hell!

I know you like the darker stuff /u/nixorokish so here you go!

u/OkDragonfruit1929 introduces one of the up and coming execution clients, Silkworm

View on Reddit →

Because of the recent push for client diversity, I’ve been researching a few of the alpha and pre-alpha EL clients in the works, and the Silkworm Ethereum client has me really excited. I’m always looking out for new and innovative projects that can push the technology forward.

Silkworm aims to be the fastest Ethereum client while still maintaining high code quality and readability. That combination really appeals to me - performance without sacrificing robustness or security. The fact that it builds on top of the well-regarded geth/Erigon codebase, but uses a completely different programming language gives me confidence that the developers know what they’re doing.

I also like Silkworm’s use of more modern C++ standards and the libmdbx database engine. Adopting C++20 features and leveraging a high-performance embedded database seems like a recipe for speed.

I’m eager to try it out once testnet builds are available. The documentation around building and testing Silkworm locally is already pretty good.

Overall, I think the team has laid out a compelling technical vision with Silkworm. If they can deliver on faster sync and execution times without reducing decentralization or security, it could be a big win for Ethereum. I’ll be following the project closely as it develops.

u/cheeky-gorilla shares Tim Beiko’s recent proposal

View on Reddit →

Tim Beiko published the “Protocol Guild Pledge” yesterday, his quantitative framing for why projects built on Ethereum should donate 1% of their tokens to help onboard and retain Ethereum’s unbelievably talented core protocol contributors:

https://tim.mirror.xyz/srVdVopOFhD_ZoRDR50x8n5wmW3aRJIrNEAkpyQ4_ng

For those who prefer to watch/listen, a great summary by Anthony Sassano: https://www.youtube.com/watch?v=PlSaGTDtDXA&t=715s

Tim’s announcement was front-run by Ether.fi, announcing they’d allocate 1% of their upcoming token to the Guild, and there are a few other (major) projects who are waiting in the wings to make the same announcement! 👀

If you know of any projects that would like to host Protocol Guild for a community call or Spaces, please feel free to DM me here or Twitter or Farcaster!

u/proof-of-lake shares some thoughts on points

View on Reddit →

IMO, points have been developing a bad rep mostly for nothing.

(Though I will say, there are two fairly different approaches, and one is worse than the other).

What’s good about points:

-they let teams be explicit about the sorts of user behaviour they want (to drive adoption or growth)

-they allow teams to evolve and develop those goals in a way that supports real-time testing and feedback (so for example, “how will user behaviour change if we tweak these variables and incentives?”)

-they give teams a chance to “claw back” or change these metrics quite rapidly if needed (something that is harder to do if a token incentive program is already live and running)

-they reduce Sybil airdrop farming because they generally relate to actual capital (x time) being put in, or at least, to behaviours that are deemed desirable and useful by the protocol team

-they give users who are keen to pursue a token allocation some transparency, prior to token generation (meaning you can see where you sit overall relative to other users, and you know what behaviours will be “rewarded” and whether your time and effort is being well directed).

For all these reasons, points seem to me to be (on balance) a logical development that has mostly been positive.

However - what I will say is that it begins to cross the line once too much gamification is brought in. By this I mean instances in which teams make their points program too complex, too casino-like, and too demanding: countless fancy ranks and tiers, NFTs and badges, quests, pointless or tangential tasks (daily check-ins??) super aggressive referral programs, etc.

These are the ones that (to me) feel exploitative and annoying. I’d sadly put EtherFi in this category, even though I think the team is legit and the core product makes sense. Orbiter has trended this way too.

Eigenlayer’s points, on the other hand, look simple, justifiable and useful.

So next time you’re thinking about points, start by asking - what’s the point? Sometimes there is one! …but to any devs out there - don’t make it a carnival game, please.

A Huge shoutout to u/Twelvemeatballs for preparing our substidoots 🍎 and maintaining the impeccable use of emoji shorthand ✏️ while Tricky_Troll was on the frontlines ⛺️

Credit to u/usesbinkvideo for the gem of a suggestion “Put that name on a McDonald’s nametag for him”🍟

Week #53: January 26, 2024

Livestream Recording | POAP

Special guest Kevin Owocki joins us from Gitcoin and Green Pill, a network-society that exports regenerative digital infrastructure to the world.

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/djlywtf

Ethereum

u/jaskidd05

$2225

u/UgotTrisomy21

0.055

u/usesbinkvideo

89,046 hodlers subscribed (+12)

u/bagogel12

497d since The Merge

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Seek consistency,

More client diversity,

Bring persistency.

Shitpost of the week: u/Ethsomesense

View on Reddit →

When you were partying, I studied the blade. When you were having premarital sex, I mastered the blockchain. While you wasted your days on crypto twitter in pursuit of vanity, I farmed eigenlayer points. And now that the world is on fire and the soylana manlets are at the gate you have the audacity to come to me for airdrops.

u/breeezyyyy is really grateful for this community

View on Reddit →

Good Morning. I just wanted to say how truly grateful I am for this group from the bottom of my heart.

The folks in here are caring, sincere, curious, and hungry for the truth. In this world we live in, it’s really a rarity to have this quality of human concentrated in one place.

Yesterday I got hacked through my own fault and signed off-chain approval for 2 assets that were drained from my wallet. This was my first time being scammed/hacked.

Somehow, they also managed to pay down a significant portion of my USDC debt [huzzah!] from my AAVE position by withdrawing/paying out to get my ETH- so it did not end up being completely catastrophic. I still don’t fully understand what happened with this piece of the puzzle.

No less than 8-10 people reached out, offered help, pointed me in the right direction, and that means the world to me. I know I’m not getting the tokens back.

Last night I wrapped my head around what happened and tossed back a bunch of beers with friends in real life–nothing like joking about it to get over it mentally.

Just wanted to say thanks again to everyone in here that makes this such an amazing community.

u/waqwaqattack shares a RocketPool update

View on Reddit →

I’m here with a new Rocket Pool update!

A few weeks ago, I mentioned the process for new tokenomics had started. We were looking for (and still are, I guess) submissions, and we got over 20! These range from changing collateral systems, new RPL rewards dynamics, MEV theft protections, and much more.

A new committee to analyze the submissions has been created with 5 members. You’re welcome to follow along (and provide feedback on the submissions if you are interested). There are three community members and two team members. They will inspect every submission, rank them, and make suggestions. This process is expected to take place over the next few weeks.

Next, it is likely the new tokenomics will be a blend of the outstanding submissions. We already have one community member share ideas on what they think the new tokenomics for Rocket Pool might look like. This is all still very early, though, and there are going to be many changes and suggestions in the coming weeks.

This whole process has been hugely exciting (for tokenomics nerds like me haha). I’ll let you all know what the outstanding submissions were once we get some clarity on that and what direction the next steps will take.

u/Tricky_Troll discusses the ethics of airdrop farming, u/superphiz and many other provide great responses

View on Reddit →

u/Tricky_Troll:

I’m curious as to people’s thoughts on the ethics of airdrop farming after a discussion I had deep in replies yesterday.

Firstly, I have two airdrop farming wallets. I try to stick to projects I like and not get too degenerate. This helps it feel legitimate to me as the original airdrop idea was to give shares and a stake in the platform out to the community. But two wallets? A true sybil resistant system would call me out for that and either penalise me or only reward me once. Is having two wallets being greedy? Maybe. Personally it feels like a rational balance between the following:

On the other hand, to me, the idea of having a dozen wallets or more to farm an airdrop feels wrong. The developers will set a certain amount tokens to the community and if you game their mechanisms and qualify on 10 wallets, then you get 10 slices of the pie instead of 1. This adds 9 more slices to the pie than an anti-sybil minded developer would have ideally intended. Since this has no effect on the total number of tokens in the airdrop, your sybil wallets have eaten into the size of the slices of everyone else. In short, airdrop distributions are a zero sum game and more tokens for you means less for someone else.

Now I’m not trying to virtue signal or shame anyone for having 10 wallets. There’s no ethical code about how much free money someone is entitled to. Furthermore, there is a justifiable and rational argument that since others are sybil attacking, you need to too. After all, you’re not eating into the average Joe’s piece of the pie, you’re eating into the faceless big airdrop farm in China with 1,000 wallets run by a computer program. At the end of the day, it is the developer’s job to ensure that the distribution is sybil resistant and makes it to the community and not the spammers.

This is in the same vein of human coordination problems we face with MEV — an arms race appears to capture economic value as no amount of virtue signalling and solo stalkers opting to build their own blocks will be enough coordination to stop rational actors from doing what makes the most economic sense. In fact, being virtuous just leaves more profit for the “bad” and less values driven actors. So with that said, does that make being virtuous and leaving more value on the table actively counter productive for our values? In the bigger picture, this is why we need things like proposer-builder separation. To remove as many of these mechanisms of value capture which involve some kind of arms race. This is because in these areas of competitive value capture, there is almost always a centralising force over time towards those who are the most successful and in some cases, the most brutal with their tactics (see block proposal timing games for the latest development here).

To get back on the original topic, why two wallets? I guess it’s just the way I was raised to not be too greedy or selfish in a zero sum game. As I said above, I’d be taking more from someone else’s slice. But on the other hand, I’m not lost in an idealistic world. The rational side of my brain sees how the game theory plays out and says farm that airdrop and take a slice out of the big boys’ pie as they’d only spend the money on stupid things anyway. So here I am, somewhere in the middle. I’m definitely putting effort into farming airdrops and with 2 wallets, maybe taking a larger slice than I’m fairly entitled to. However, it is still less than I could get if I really wanted more.

All this is probably a similar reason to why I just want a house in the countryside somewhere and not a gazillion rental properties, a ferrari and a yacht. I would get very marginal enjoyment out of such fancy things and that marginal enjoyment nowhere near equates to the amount of good for others which those millions of dollars could do if they were put to more productive work. After all, spending money tells society where to put its effort. Collectively we get much more from feeding and housing people than we do from vroom vroom shiny car go fast. But still, even 90% of the world aren’t lucky enough to own their own home and live in a safe, stable, country. So at this rate I’ll likely be getting a bigger slice than I’d be fairly entitled to if the world’s resources were split evenly. But in the situation I have been fortunate enough to find myself in, I don’t feel overly greedy and I hope that’s good enough.

Anyway, thanks for reading me share my thought process. I learned a bit just trying to articulate this. So let me know, where do you lie on the scale of u/Superphiz to hyper-capitalist rational actor? Or what are your thoughts on any of the above. In the end this discussion covered way more than I thought it would.


View on Reddit →

u/superphiz:

No flowery preamble because my wife is demanding that I get in the shower for a day trip. I do adore you in so many ways tricky, and I’m honored that you consider my positions and our alignment. Here are too many bullet points that will definitely make me late for the shower.

  1. I don’t want anyone to exaggerate my wholesomeness and assume that I am too “good” to airdrop farm or use multiple accounts. I definitely have and will continue to use multiple accounts if it appears that those mundane actions will increase my qualifications for an airdrop.

  2. In general, I see airdrops differently than other people. I don’t typically view airdrops as a benefit to the end recipient, but as a combination of a VC liquidity tool, or an engagement farming technique that allows startups to more easily create a case to VC for additional funding or valuation. I guess what I’m trying to say is that you’re probably not abusing the airdrop, but in most cases I think the airdrop is taking advantage of you by farming you. They’re trying to pump key metrics through farming user activities, this lets them prove to VC that their platform really is worth funding.

  3. My recent pushback against points is along this vein - if you’re farming away for imaginary points but startups are using your metrics as proof of success to VC, then there’s a good chance you’re just straight up being abused. Do you know what VC likes even MORE than users who exert little outflow on a startup? FREE users. If a startup can generate a ton of activity for ZERO cost AND have a rabid user base, they’re going to win big. I really adore big winners, but I want those winners to be good products, not just good incentive farmers.

  4. I’m really just encouraging people to take their own farming to the next level by engaging intelligently with projects that they like rather than being mindless zombies jumping through hoops. I don’t know why, or if it even makes sense, it’s just where I’m at right now.

  5. I feel like EVERYONE thinks I’m targeting eigenlayer, and I’m not. I have hesitancy about Eigenlayer because of its impact on the security layer, and I accept it as a natural evolution of our space. I have no intention or desire to target them for their airdrop mechanism, other than to say, farming for points can be risky and create a house of cards in certain cases.

  6. Regarding the greed issue (ferraris and yachts), I definitely align with you - I want to carve out a fair share and leave enough pie for others, but that doesn’t mean I’m some kind of altruistic monk. I DO enjoy the benefits of wealth and I do hope to continue building wealth, but it’s true that I take a more socialistic approach than many others. I feel like if we build Ethereum to be super powerful and valuable, then we will also benefit from that value; but if all of us focus on greed and extraction now, everyone will suffer in the long run. I prefer to think of cryptocurrency as a nascent project that has 1000x growth potential (platform, not price) if we foster healthy growth, or it can have a quick death if everyone extracts without regenerating.

  7. Finally, I want to remind everyone that value and wealth are represented by more than money. Money is fun, but money is only useful when it’s used in an environment where it can bring you benefit. As a worst case scenario, money was useless in the stone age because it couldn’t bring benefit. I have a real belief that if we bring blockchain developments to fruition, then the entire world will have access to more benefit. NFTs are a horrible (but useful) example of this. Prior to blockchains, you could have billions of dollars, but still no access to NFTs. Money could not provide that benefit because blockchains hadn’t been developed to the extent that they were possible. There are MANY other developments that will be possible in the future if we continue developing this technology, and when we do, our money will be even more useful than it is today because we’ll have access to more value from it through blockchain developments.

u/cryptOwOcurrency explains what would happen if the Nethermind bug happened to Geth

View on Reddit →

Assumptions:

If a Nethermind fork happens (this is what actually happened today):

If a Geth fork happens (exactly like what happened today, but just swap geth and nethermind):

TL;DR: Stake with nethermind, a nethermind bug causes you to lose 0.0005 ETH. Stake with geth, a geth bug causes you to lose 28 ETH.

Disclaimer, this is all to the best of my knowledge and I don’t consider myself to be an expert in this.

u/interweaver reminds us how important it is that Ethereum succeeds and how we can protect it as best as possible

View on Reddit →

Perfection is an illusion.

No software is perfect.

When a system is built on a software monoculture, it will inevitably fail when that critical software inevitably fails.

When a system is built on a diverse polyculture of software, it becomes resilient enough to not fail overall when any particular piece of supporting software fails.

Ethereum is too important to fail. It’s too important to the future of money and the internet, too important in the fight against Moloch, and too important to the inhabitants of a world that is becoming more and more centralized as time goes on.

If I were on the side of Moloch, if I were going to attack Ethereum, I would do exactly what a sophisticated attacker might indeed be doing: releasing blocks designed to give minority clients issues, in the hope that people would be scared back onto Geth, in hopes of shutting down the nascent polyculture that its proponents have been desperately trying to cultivate before it’s too late.

I would tell people that it’s much more important to avoid the possibility of a few hours of downtime once or twice a year than it is to avoid the permanent destruction of the chain’s Lindy and legitimacy.

You all know Ethereum is too important to fail. Of those of you running nodes or especially staking, most have done the responsible thing and run minority clients.

Don’t let anyone scare you into switching back into the supermajority. Don’t let the occasional minor hiccups distract you from the looming impact of the supermajority bug asteroid that we’re desperately trying to divert from its path towards planet Ethereum before it’s too late.

Embrace the fact that no software is perfect, and that helping run Ethereum will always mean the possibility of unexpected adventures, no matter what software you run. But it’s your choice whether those adventures will be a fun afternoon resyncing your execution client in the good company of your fellow client users, or a less fun loss of every single Ether you staked, while the community fractures around you and all of our dreams for a better, more decentralized future lie in tatters around us.

Choose wisely.

u/pa7x1 shares a list of the largest entities staking with Geth and u/interweaver shares a timeline of Coinbase’s comments on client diversity

View on Reddit →

u/pa7x1:

Here is a list of some node operators with a lot of ETH staked using Geth. The easiest way to fix the EL client diversity issue is to knock on their doors and let them know why it matters. If you are staking with them, be aware that your stake is at risk if a bug in Geth would cause a mass slashing. You should unstake with them and let them know why you are doing so.

I have added client teams staking with Lido in there because I find it particularly problematic that they do not lead the charge of client diversity with their example. Them more than anyone should be aware of the risks.

Operator Total ETH Staked Estimated Geth usage
Coinbase 4400000 100%
Kraken 860000 100%
Binance 1000000 100%
Nethermind 10000 68%
Prysmatic Labs 10000 100%
Consensys 10000 100%
Sigma Prime 10000 70%
Kiln (Lido) 10000 100%
Kiln (non-Lido) 790000 100%?
Allnodes 700000 100%
Bitcoin Suisse 550000 100%
Stakefish 370000 100%

These guys together represent 1/3 of all ETH staked. If the do something about it the problem is gone.

Sources:

https://app.hex.tech/8dedcd99-17f4-49d8-944e-4857a355b90a/app/3f7d6967-3ef6-4e69-8f7b-d02d903f045b/latest

https://dune.com/hildobby/eth2-staking

https://execution-diversity.info/

https://www.stakingrewards.com/provider/allnodes


View on Reddit →

u/interweaver:

Just to recap Coinbase’s public statements about execution client diversity (to my knowledge):

Viktor Bunin, head of the Protocol Operations team at Coinbase Cloud (Coinbase’s staking infrastructure provider), May 31st, 2022:

Thank you and yes, we’re looking at supporting other execution clients :)

Will Robinson, VP of Engineering, December 9th, 2023:

We do care.

Thank you for the push. Ethereum’s client diversity is one of the most striking manifestations of its commitment to decentralization.

I don’t have a firm commitment to share today, but please know that we hear you, and we’re working on it.

Jesse Pollak, creator of Base and Head of Protocols, December 12th, 2023:

i hear you - lots of internal conversations ongoing. appreciate your patience as we work through it!

Viktor Bunin again, December 12th, 2023:

Thanks! We’re looking into it, but nothing to share at this time.

Will Robinson again, January 2nd, 2024:

We’re going to do it. Timeline is still TBD. I want to under-promise and over-deliver. :-)

Ben Rodriguez, Senior Protocol Specialist, today:

Hi! I’m a Protocol Specialist here. I have been pushing for this and we are actively pursuing it.

And that we’re actively pursuing another execution client

And now Brian Armstrong, CEO, today:

Taking a look

u/hanniabu outlines the aftermath of a hypothetical critical supermajority Geth bug

View on Reddit →

Catostrphic.

u/Ber10 shares the Tornado Cash developer legal fundraiser

View on Reddit →

2 tornado cash devs that got in legal trouble are looking for donations

https://twitter.com/rstormsf/status/1749490246000238942

links to:

https://wewantjusticedao.org/

and then to:

You can donate Eth and get an NFT.

[https://juicebox.money/@free-pertsev-and-storm](https://juicebox.money/@free-pertsev-and-storm)

Alternatively Go fund me or directly through justicedao.

The precedent set in that legal case might have a significant impact on the future of ethereum.

I dont see any Monero/Zcash donations so far. But maybe that wouldnt be in their best interest anyway.

u/Ender985 writes a post mortem on the recent nethermind incident

View on Reddit →

I wanted to write a small post-mortem on the Nethermind incident, as a small solo staker.

Nethermind started having problems around block 19056922. Block sync became more infrequent than usual, there were some missed attestations, but the node somehow kept up. Finally, 1h and 50 minutes later, Nethermind started reporting “No incoming messages from the consensus client that is required for sync” and Prysm “Execution client is not syncinc”, effectively putting the node offline (let’s call this T+0).

I became aware of the issue at about T+45min. Tried restarting the services at T+50min, but quickly found out that this did not resolve the issue. After that, I checked if Eth prices had crashed to see if the whole blockchain had been attacked and brought down, but saw no price action. Then I went on discord, and found out that this was a Nethermind-specific issue.

After reading that a full resync might solve the issue, I rebooted Nethermind into a fresh data dir at T+1h20min, to begin the process. I was shocked to find that at T+2h23min the node was already submitting attestations, only 1h and 3 minutes after starting the sync from scratch. The first time I did this a number of months ago, it took more than 10 hours to get to this point. The node was not fully operational yet (I think block proposals would still have failed), but at least I was back attesting the network.

At around this time the Nethermind team announced that a fix was released (at T+1h40min apparently), but it took a while for the ubuntu repo to propagate the last version. My node was already attesting, so I was in no rush to update. About 1h later, I applied the fix, reverted back to the old database, and the node was fully online again.

In total, the attestation downtime made each validator earn 0.0007 eth less that it would have in normal operating conditions. This comes up to $1.57 per validator at today’s prices, quite literally pocket change. Of course a missed block would have meant a much larger missed cost, but the chances of getting a block within the downtime window were quite low.

All in all, the issue was identified and fixed by the Nethermind devs incredibly quickly for a Sunday evening, and only caused a few hours of downtime. If anything, the speed of the fix only gave me more confidence on the Nethermind team, now that I’ve seen them working under fire. True, if I had been running geth I would have avoided this incident, but if I’d been running geth and there was a similar incident with that client I’d probably have lost most of my eth.

u/haurog shares a blog post about their experience with all of the different staking clients

View on Reddit →

A few weeks ago a wrote a blog post about my experience with the various execution and consensus clients as a solo staker and the small differences they have. I never shared it here. It grew out of a longer message I wrote on the gnosis chain discord and it was well received there. It is a personal view so I am definitely missing a few angles, but hopefully there is no wrong information in there. If you think something could/should be improved, please let me know. I wrote it shortly before the Besu bug, so nothing about the recent bugs is discussed. I am still debating if I should add a short section about the bugs, but at the moment I leave it like that.

https://hackmd.io/@haurog/HkS3VqhVa

u/accidental_green releases an automated tool that makes switching clients a breeze

View on Reddit →

In pursuit of client diversity, I simplified the open source client-switcher and removed any code that wasn’t absolutely necessary.

It’s now a basic Python script of 439 lines that does the following:

1) Prompt user for inputs and validate inputs:

2) Remove old client and install new client
3) Create new service files, reload daemon, print final results

That’s it! Same process as Somer’s guides just simplified and automated. The switch takes 5 minutes with validators attesting again in ~2 hours (nethermind).

There’s a CLI (terminal) and GUI version to fit various setups and preferences.

It’s all open source, so you can check github or ethstaker to view detailed images and review the code.

I’m working to get it audited asap, but any help in the meantime is appreciated.

Week #52: January 19, 2024

Livestream Recording | POAP

Special guest Mike Silagadze joins us from Ether.Fi, a native liquid restaking protocol.

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/Fiberpunk2077

Ethereum

u/UgotTrisomy21

$2461

u/PooeyGusset/

0.059

u/usesbinkvideo/

89,027 hodlers subscribed

u/5quat/

490d SM

u/5quat/

799d since ATH (ratiogang)

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Ether beats the odds,

Upscaling the rollup squads,

Welcome to the blobs.

Shitpost of the week: u/Sourdoughpretzel4444

View on Reddit →

Today is a banking holiday in the states and because of that I cannot:

  1. Deposit/withdraw my monies

  2. Receive direct deposits of monies

  3. Have any monies cleared/settled in my accounts

  4. Buy the stonk :(

THE FUTURE OF FRANCIS

u/accidental_green developed an awesome tool to encourage client diversity. With more indepth Here!

View on Reddit →

In the spirit of client diversity, I created an open source tool that allows anyone to instantly swap to a minority client with 0 configuration or effort. Just 1 click, new client.

I added a simple GUI, so switching clients can now be done with 0 programming experience in under 30 seconds.

Installation is based on Somer Esat’s guides and works with Geth, Besu, and Nethermind on both mainnet and testnets.

Feel free to check out the ethstaker post or see the details on Github:

These are personal projects that have not been audited, but the code is open source and fairly easy to understand. Any testing or feedback is always appreciated!


View on Reddit →

I created an open source validator updater that allows home stakers to update their entire setup in a single click with almost no downtime!

Github repo: https://github.com/accidental-green/validator-updater

Validator Updater Summary:

  1. Select Execution Client to update: (Besu, Geth, Nethermind)
  2. Select Consensus Client to update: (Lighthouse, Nimbus, Prysm, Teku)
  3. Select Update MEV-boost: (Yes or No)
  4. Click “Update” to close the window and return to the terminal

Once complete, restart the services and ensure the validator is still attesting.

The updated binaries are installed at /usr/local/bin to be compatible with Somer Esat’s guides, but can be adapted to work with non-standard installations.

Feel free to review my other validator related repos below:

Validator Install: Fresh Ubuntu to syncing validator in 1 minute
Validator Controller: Validator GUI for easy operation (start, stop, journals, etc)
Client Switcher: Instantly switch between Execution Clients

The code has not been audited, so use with caution. These are all open source community resources, so testing and suggestions are greatly appreciated.

Cheers and Happy Staking!

u/Syentist makes a case for raising the gas limit while u/thewalkinglive and u/16withScars share developer sentiment that we should be more cautious

View on Reddit →

u/Syentist:

Going to bring this up again: I strongly think we need to increase the gas limit, and Dencun is probably the best time to co-ordinate around this (although a HF is not needed for validators to increase the gas limit).

A few things to point out again:

  1. The last gas limit increase was early 2021, almost 3 years ago. Cost of SSDs have substantially reduced since then
  2. Most L1 native apps (Maker vaults, ENS, LSTs) have not completed migration to L2s. Partly because we still don’t have a Stage 2 L2 anyways. Which means users are still forced to use the L1, and pay high fees for basic and essential functions like taking a DAI loan or staking ETH for stETH.
  3. We are clearly on the cusp of mainstream attention, especially as an ETH ETFapproval nears in May. Which means we are going to run into exceptionally high gas fees under current settings, and a constant narrative that the “Ethereum chain is unusable”. An entire cohort of new users (probably the largest wave of new on-boarded users to date) will see the ridiculous fees on L1 (and by extension, L2s), see the sub-cent fees on Solana, and simply gravitate to the cheaper narrative. We will unnecessarily lose out on the narrative war, and the Nov-Dec period of scorn to the ethereum community is, I fear, just a prelude.
  4. Most importantly: Vitalik has soft-signalled this twice in the past week. First, in the tweet thread on the roadmap update (when he pointed out gas limit increase doesn’t need a HF and can be done anytime), and secondly and more explicitly, in yesterday’s EF AMA. Now, the problems with increasing the gas limit: State growth, client stability, cost of minimal equipment - *of-fucking-course these variables are playing out in Vitalik’s head*, he has written more on this than pretty much anyone alive. Of course he is aware of it, no? But pragmatic choices need to be made, and that is what I see here in his comments.
  5. Finally, I think it is time the ethereum community and core protocol development process “formalised” a framework for minimum validator specs per fixed cost of fiat. It can’t be based on just vibes. It can’t be that we want to - eventually - run a full validator on the computing power of a microwave (running lightclients is a differnet story). We need a reasonable threshold - something like a full validator should not cos more than $800 to assemble. And every 12 months or so, we review the hardware prices, and if it costs cheaper than $800 (or X threshold) to run a validator, we raise the gas limit (or number of blobs or whatever else).

View on Reddit →

u/thewalkinglive:

What problem does increasing the gas limit solve?

Increasing it definitely has a downside. State will grow faster, sync time will get slower quicker, DoS potential will grow. Would be nice to have a number on those.

That said, what does increasing the gas limit net us?

I feel we’re kind of yoloing this. Do we have the monitoring and metrics in place to see how things evolve? If not, IMO we should fist have tooling that can point to the effect of a change before making that change. Otherwise it’s gonna get summed to “look, not dead yet”.

If we had a solid monitoring, we could just bump by 1M, see what happens. Nothing gets wonky, ok, bump by another 1M.

Going 10M in one go hoping nothing will get borked in the next 5 years is a bit too optimistic to my taste. Even though it might as well be the case

- Geth Team Lead - Péter Szilágyi

https://twitter.com/peter_szilagyi/status/1745374731824439531

What are your thoughts on this? It does make sense and I understand why he is annoyed. He is the one who has to deal with the impact of the increase in state size.


View on Reddit →

u/16withScars:

On increasing the gas limit, I agree with Francesco and Dankrad (researchers at EF).

My take is similar:

Bumping the gas limit just as EIP-4844 is about to be shipped which already increases storage and network bandwidth costs is a bad idea

this isn’t the right time at all

given the better hardware argument, we should definitely be increasing the size of blobspace (not blockspace). But only after the Deneb HF.

u/benido2030 thinks we should organize around a community $STRK delegate. And then updates the search for an EthFinance/EVMavericks $STRK delegate

View on Reddit →

The result from the OP RPGF round 3 is a big motivation for me because it shows me that if we coordinate as a community, we can really get things done and improve the ecosystem.

I believe $STRK is around the corner. The snapshot for the airdrop is in according to an official tweet beginning of December 2023. The last upgrade allows tx to be paid in $STRK (but you obviously still use ETH as well). And afaik $STRK that lived on L1 for a long time now also is briged/ deployed on starknet.

I am also rather sure that $STRK will be a governance token because it is a governance token now and there are delegates participating in governance already, see this vote/ example.

So here are some questions:

  1. Who has used Starknet a lot and knows the ecosystem? (whatever that means, hard to answer tbh)

  2. Who has the time, energy and willingness to act as a delegate for starknet?

I think it would be great if we could informally agree on 1, 2, 3, x delegates that could represent this community in the starknet ecosystem and governance. That obviously doesn’t mean that you can’t delegate your $STRK to someone else outside of this community! But if we agree on candidates beforehand, those potential delegates can setup everything when the token drops.


View on Reddit →

So a quick update on the $STRK delegate search I started on Friday:

We have a first candidate: u/Tricky_Troll is interested and I would probably borrow $STRK to delegate even more to him! (I won’t, but I think Tricky is a great first candidate!)

But let’s not stop here, I think we should have 2 or maybe even 3 candidates. First of all it would be great if we as a community had a choice from ETH Finance (and let me get that straight: not because I think Tricky is not a great candidate, as I said I would delegate to Tricky without thinking twice!). More importantly though, I think we will likely - as a community - have a lot of $STRK power that we probably should spread across at least 2 delegates. So I would be really happy to see more people coming forward!

Also u/bob-rossi said that he would be happy to share his experience with people thinking about being a delegate. So if you wanna understand what it is like before you make a decision, feel free to contact him. Maybe a channel in the EVM discord like he suggested also makes sense and maybe other delegates would have a look as well, to share their thoughts. In a best case scenario “our” delegates not only receive voting power from Eth Finance, but maybe the more experienced delegates can tell us how they convinced people to delegate to them!

So: I would be very excited if some people thought about being a delegate and of course best case share their interest here so we can coordinate.

Let’s go!

u/Bob-Rossi will be running for an Arbitrum Grants council spot

View on Reddit →

Discussions on the next version of the Arbitrum grants program have been underway and I wanted to share this for two reasons.

  1. It is currently in the Snapshot voting stage. So, if anyone here is involved with projects that are interested in that type of thing it might be a good idea to start coordinating what an application would look like. I don’t believe they have any official application template just yet, but I’d imagine it will be pretty similar to the STIP rounds. This new round already has some changes that should hopefully make it less chaotic then the first STIP grants.

  2. One of the changes is creating a 5-member council that gives a first pass at all applicants. The goal here is to cut down on some of applicant volume so when delegates vote they can be less overwhelmed and have the ability to review the proposals a little more thoroughly. And then they are adding 3 “Applicant Advisor” roles as well. That group can help assist projects with polishing their application for a best chance of success. I wanted to mention that specifically for any projects that may apply, that the assistance is there. Both are an elected and paid position.

Relating to point two… part of my post is to let everyone here know I will be running for one of the council spots. I’m not sure how successful I will be honestly, but I wanted to at least make people here aware since I’m sure many of my delegates come from here. I actually applied a week+ ago, but wanted to wait until voting was closer to ‘announce’.

I’m trying really hard to toe the line between being the overbearing “hey vote for me” guy while still being effective at least getting the word out. So I’ll leave it simply at this - if there are any questions you have for me relating to my application, or even just any thoughts on what a successful council would look like if I got elected, please let me know. And of course, if you do decide to support me always know I will be grateful!

I really, really wish I could link the post… but probably easiest to find more info about the grant program would be going to the Snapshot Vote and clicking the corresponding link to the main Arbitrum governance forum. Then if you are interested in who is running for council, the 17th post in that thread will have a link directly to the “LTI Pilot Program Position Application Thread". Which alternatively can be found by going to the main forum page, clicking under the blue”Dao Grants Program" subsection, and finding that thread near the top. Sorry for the runaround, but Reddit does really make it this much of a pain…

u/Ethical-trade discusses the future of France Finance

View on Reddit →

By now I’m sure we’ve all seen Larry Fink, CEO of the world’s largest asset manager Blackrock (with $9 trillion in assets, 3 times France’s entire GDP), saying that the future of france is tokenization of assets “on one single ledger” (source). More specifically, he talked about bonds and stocks.

But what could this “one single ledger” be?

In this other interview, Fink again mentions stepping stones towards tokenization right after speaking about an ether ETF.

Since that I’ve read a few Ethereum detractors saying that there’s no way tokenization of stocks and bonds will happen on mainnet Ethereum, because issuers will need an environment they can control. And this is probably sort of right.

But what they’ll also need is an environment that fully communicates with the leading tokenization platform.

Ethereum currently holds 55% of all of defi’s TVL, here’s your leading platform. That’s the “one single ledger” Fink talks about. And that’s without counting rollups and sidechains. And before a 10x scaling of rollups in a couple of months.

But interoperability and control, how to you reconciliate these two?

In the past banks have created their own permissioned Ethereum clones (Hyperledger, Quorum, … more about these here). They looked like intranet, closed and safe versions of the internet. But have you heard of projects that crossed the chasm and made it to mainnet? I haven’t. Just like intranet, these projects were fun playground but didn’t take advantage of the full potential of Ethereum. What good is a website others can’t reach?

Today, the scaling solution(s) chosen by the Ethereum community happen to be absolutely perfect for reconciliating interoperability with control. A rollup, a volition, a validium or any other hybrid solution is just what’s needed to solve this problem.

You can be part of the ecosystem, but still retain some degree of control.

Not only that but the cost will soon basically be net zero: we can safely expect that launching your own L2 on Ethereum will be as trivial as launching a smart contract: copy some open source code and let stakers manage security for you through Eigenlayer. How much did Hyperledger and Quorum cost to create and operate? I couldn’t find figures but a shitload I’m sure. How much will launching a rollup cost in 2 years? 1,000 or 10,000 less?

I don’t like Fink and probably never will. But it truly amazes me how far we’ve come.

Today, the CEO of the world’s largest asset managers sees the future we’ve seen for years, a future of finance with Ethereum at its core.

u/Defacticool thinks that many are missing the looming product market fit for Ethereum and u/JebediahKholin expands on that

View on Reddit →

u/Defacticool:

I wanted to repost the article u/vvpan provided the other day about the progress and interest in tokenising securities by institutional firms.

In this case Brewan Howard.

I wanted to repost it because I really dont think it got the recognition it deserved. You know those “steps” Larry Fink talked about which eventually culminate in full tokenisation of everything. This is the next big step

And as I said I believe this usecase alone, if eventually succesful at scale (such that it picks up a network effect) could swell Ethereum to unfathomable degrees. I truly think this is being slept on by us crypto natives.

This is the “crypto taking over tradfi” moment. This is the “Ethereum is the new internet” moment. If it succeeds.

“Product market fit”? This is it.

I’ve provded an archive link to bypass the paywall and I’ll paste the artivle text too.

https://archive.ph/v4BVk#selection-4891.0-4891.13

https://news.bloomberglaw.com/crypto/brevan-howard-joins-in-on-institutional-push-to-tokenize-funds

Brevan Howard plans to tokenize at least one of its funds through a partnership with a startup backed by Nomura’s Laser Digital, making it the latest financial heavyweight to experiment with putting money on blockchains.

Libre Capital, the startup which includes Laser Digital and the Alan Howard-backed incubator WebN Group as investors, said it will offer zero fees to asset managers who tokenize funds on its namesake platform. Brevan Howard, along with Hamilton Lane, said they’ll be the first asset managers to do so. Libre’s public blockchain technology is supported by Ethereum scaling firm Polygon.

“The tokenisation of funds allows us to offer investors a new way to access our strategies, providing them with optionality, and further develops our platform to serve client needs,” said Natalie Smith, head of strategy and client partnerships group at Brevan Howard, in a release.

Brevan Howard is one of the earliest Wall Street participants in the digital-asset sector. Its digital-currency fund rose 44% last year. Even so, this will still be the Jersey, Channel Islands-based investment firm’s first tokenized fund. The process has been promoted heavily recently as one of the few viable use cases for blockchains. Citigroup estimated the tokenization market could swell to $5 trillion by 2030.

“Ultimately, our goal isn’t to make money on the distribution side,” said Avtar Sehra, CEO and founder of Libre, in an interview. “For us, we want to take the money and the operational costs as close to zero as possible.”

Libre also plans to launch collateralized lending and automated rebalancing of separately managed accounts later in 2024, according to Sehra.

With Libre taking zero fees from fund distributors for tokenization, Sehra anticipated that the company will profit mostly from the lending and SMAs businesses.


View on Reddit →

u/JebediahKholin:

I often find myself thinking that eth is a natural solution to a lot of global financial problems. The latest is the fink tokenized asset commentary.

Another was the issue of central banks not having a fast trustless way to trade currencies. To an eth enthusiast, this is an obvious fit - issue currencies as erc20s, and let the trading simply occur in a trustless format.

The imf didn’t even consider this, but instead addressed all kinds of cbdc variants. The obvious problem is that they’re all trusted, and countries simply don’t trust each other enough to use one another’s private chains. The imf briefly addressed bitcoin as a possibility before dismissing it.

I wonder if a lot of this reflexive hostility to eth and permissionless programmable chains is a response to bitcoin and its dominant narrative. Bitcoiners talk about fiat being worthless and central banks as enemies - of course central banks are going to view this with hostility. They view an attack on their fiat as an attack on their sovereignty. The digital gold/SoV approach makes much more sense for how bitcoin is set up, but also is less of a direct challenge.

Anyway, all this to say that closed eth clones are always going to have the problem of being trusted, and if you’re not part of the consortium running the chain, you’re ultimately at their mercy. Now matter how big that consortium is, there will always be some outside it, thereby limiting its network effects.

u/bagogel12 shares the latest exploit and in light of this, u/PhiMarHal shares some pointers on best practice security

View on Reddit →

u/bagogel12:

Security alert!

Bungee / socket being exploited.

Revoke contract 0x3a23f943181408eac424116af7b7790c94cb97a5

source Spreek

https://twitter.com/spreekaway/status/1747337879771033632

Edit: Only mainnet exploited, other chains could be exploitable. Same contract on other chains, 0xaDdE7028e7ec226777e5dea5D53F6457C21ec7D6 on zksync era.

Edit2: Afaik if you used bungee you should be fine, as their webapp does only approve the amount you like to send.

Edit3: https://twitter.com/SocketDotTech/status/1747349422730813525 Socket confirmed and paused the contract.

Edit4: Hopefully last edit. Revoke cash has created a tool to easily check. Although contracts are paused, it’s recommended to revoke if your address is affected. It could also happen that you bridged with services like zerion or rainbow. [https://revoke.cash/exploits/socket?chainId=1


View on Reddit →

u/PhiMarHal:

Fast reaction from Bungee.

This sent me on a revoke binge regardless. It’s easy to get sloppy for the sake of convenience. The other day I mentioned using Odos rather than other aggregators so I limit my approvals. Of course, this requires actually revoking previous approvals!

I like the idea of a 2 addresses setup, to limit risk. Address A holds all funds. Only ever sends and receives tokens to address B. Address B is the trader. Approves everything, does the swaps, gets into the tokenized positions, transfers everything back to A once each series of operations is done. This protects against many hacks since A holds everything and approves nothing.

However… It’s hard to have the discipline to stick to this. It would be fantastic if there was wallet software to automate this behavior. You “start a session” and this triggers A sending whatever to B, then you operate B as a normal wallet, then as you “close your session” this triggers a transaction of B sending whatever newly acquired funds back to A. Even restricting any action from A that’s not send to B (unless you enter a password to override, or whatever).

Probably hard to build but man I would love this.

u/interweaver discovered and reported a bug in their execution client!

View on Reddit →

Guess what, I had a u/seamonkey82 moment today, and helped find a client bug! Story time :D

Some of you may be aware that there’s an ongoing debate about whether Ethereum can handle a slight increase in its block gas limit. This would make L1 gas slightly cheaper by creating more blockspace, at the expense of being harder to keep in sync with the chain for the weakest machines on the network.

The gas limit is currently at 30M units of gas per block (which means 15M units is equilibrium). Some folks are proposing raising it 33%-50%, to e.g. 40M-45M, while others oppose any raises, especially in light of the upcoming EIP-4844, which will raise requirements a bit too.

The fun thing is, individual stakers actually are able to change this number themselves whenever they propose blocks. Unlike many other changes, you don’t need a hardfork to accomplish it. Rather, individual stakers can pick their own “target gas limit”, which their client will attempt to move the gas limit towards. The protocol allows the block gas limit to change by 1/1024th of the previous block’s value, per block. In this way, if the majority of the stake decides on a new number, the value will start random walking its way to that new value, and stick there more firmly the greater the consensus. This mechanism is a holdover from the days of mining, but it’s pretty neat.

Anyway, as a solo staker, I decided to YOLO raise my own limit last month, and set it up to 40M. This involves setting some flags in your execution and consensus clients. I run Besu/Lodestar, and set their flags appropriately.

Since then, I proposed (at least) one MEV-boost block. As expected, that block’s gas limit was 30M + 30M / 1024, i.e. 30029295 units. A slightly less than 0.1% increase over the standard amount. It isn’t much, but it helped make Ethereum L1 slightly cheaper for that block and (indirectly) the next few! Cool, everything’s working!

Since then, I proposed (at least) one locally-built block (I have a min-bid set, like most responsible solo stakers who care about avoiding too much censorship, and it triggered.) As a reminder, locally built blocks are constructed by your execution client, in my case Besu, from the contents of their public mempools.

My locally built block(s), upon examination, looked great, except for one thing! Rather than 30029295 units of gas as expected, and rather than the 30M units of gas I would expect to see if I had misconfigured something, my locally built block(s) had a gas limit of 30001024. WTF? It’s supposed to change by 1/1024 of the parent block, not by 1024!

Some in-depth adventures into the Besu Github later, I confirmed that indeed, there was a bug that was causing all Besu locally built blocks to only be able to shift up or downwards by a maximum of 1024 units of gas, rather than the (at present) 29295 units of gas expected. Put another way, Besu stakers with locally built blocks would only be able to move the gas limit about 3% as fast as locally-building stakers running other execution clients.

Jumping into the Besu Discord, I reported this situation, and worked through it with Matt Nelson, one of the excellent Besu team members who can be found there. He confirmed the bug and figured out the needed fix, and that should be making it into a future Besu version.

So anyway, moral of the story is, just YOLO changing numbers is apparently a great way to find client bugs, with your face :P Hopefully as the gas limit discussion continues, this means Besu stakers will be fully equipped if there is more of a mass movement in the direction of increasing that limit!

u/LogrisTheBard, u/pr0nh0li0, and u/Set1Less comment on the SEC vs Coinbase lawsuit

View on Reddit →

u/LogrisTheBard:

I am glued to this Coinbase case today. You couldn’t have asked for a friendlier judge. The judge was practically feeding arguments to Coinbase. Gensler should be screaming at the screen if he’s watching this.

The only argument Coinbase made that bounced seemed to be the major questions doctrine where the judge is hesitant to remove the authority of anyone but Congress to regulate anything about this space.

However, the SEC has completely failed to define why a baseball card or fantasy football team wouldn’t be a security but tokens would. The SEC wants any anon trade on Coinbase to be a security contract if someone promoted it on Twitter. Coinbase wants a security contract to include at minimum some type of contract or legal right. Unless the token includes inherent rights like on-chain governance and a claim to dividends it’s hard to argue you are entering a contract when purchasing a token.


View on Reddit →

u/pr0nh0li0:

Promising start to the SEC/Coinbase Trial:

Judge Failla is on fire right out of the gate.

She says to the @SECGov lead lawyer, and I paraphrase: The “DeFi people” gave a “really fine” amicus brief explaining what staking is and what the wallet is used for, “arguably better” than how the Commission explained it in its briefing.”

She also says the @SECGov hasn’t presented an opposing narrative for the legal foundations of Howey in its briefing.

<3 all you “defi people”


View on Reddit →

u/Set1Less:

Looks like the SEC is not done losing, they are looking to take another big L in the Coinbase / Staking case

https://x.com/eleanorterrett/status/1747641703626924431

Bruh….

Failla then addresses the Howey Test: “We’ve had a god run. We’ve had 90 years where these securities laws have been able to apply to these markets. But now we have something new.”

Holy smokes, hope the judge rules this way. This is the equivalent of complaining about someone encroaching on your parking spot only to end up losing your home in court

https://x.com/RSSH273/status/1747647514302689553

Favorite moment of argument so far:

SEC — “the tokens themselves are not a security”

Failla — “that’s what the folks in the back table think (Coinbase). And they are wondering why we are here”

Week #51: January 12, 2024

Livestream Recording | POAP

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/Fiberpunk2077

Ethereum

u/usesbinkvideo

88,973 hodlers subscribed (+17)

u/FrenktheTank

$2620.17

u/alexiskef

0.0567

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Suspens removal,

A court ordered approval,

Not fiducial.

Shitpost of the week: u/Itur_ad_Astra

View on Reddit →

OMG! 😭Cant believe ETF is approved ! Thank you SEC team ! ❤️ keep doing the great work. 💪🏻💪🏻💪🏻🚀🚀🚀


Context

u/pr0nh0li0 warns of the scammy state of crypto twitter right now

View on Reddit →

Current Twitter experience as a long time crypto user. Seeing this same scam ad for a fake ZKsync airdrop every ~5 tweets, and some other scam ad every other 10 tweets.

Just got this now, my heart’s full of joy, what an amazing day 🌟

lol; At least a/b test the copy scammer guy I really can’t imagine this headline works that well

(I still love crypto Twitter despite how god awful the spam has gotten on the platform)

u/LogrisTheBard covers how Eigen layer is affecting the peg of LSTs 🧠

View on Reddit →

So many people hyped into the swETH EigenLayer contract that it has seriously affected the swETH peg. Prior to the EigenLayer deposit opening people were chain minting swETH for Pearls then selling it to ETH at almost a 3% loss. That is to say the market was speculating that the pearl to ETH ratio would be about .0015. As recently as Dec 10th swETH was at about 1.01 swETH/ETH. Right now it’s sitting at almost 1.05 (the native rate is 1.0471). So just holding swETH in the past 4 weeks has made you 4% almost on your ETH (more than an entire year of solo staking). It has also largely drained the swETH liquidity as apparently LPs exited their position to pure swETH and deposited the whole stack into EigenLayer. You can see volume hugely spiked, right around the time TVL halved.

Larger LSTs are less dramatically affected but there’s the same phenomenon are still visible in them. In many cases the lower liquidity has significantly improved the liquidity farming rates. Some of these new combination pools like cbETH/wstETH/rETH are yielding over 12% APR (like 5x solo staking). Even most of the older pools are still at or above 7.5% after accounting for the native appreciation of the LST in their yield.

u/hanniabu explains the risks of EigenLayer

View on Reddit →


Note: While Eigen Layer was specifically mentioned, I believe these are inherent risks to all restaking

u/stablecoin updates us on privacy tools

View on Reddit →

https://medium.com/@Railgun_Project/the-new-architecture-for-ethereum-privacy-introducing-railgun-v3-21e111fa297e

suggest everyone interested in privacy preserving technology read this update (from early December) around Railgun V3. Railgun is a privacy layer you can deposit to and withdrawal to any address, and now they are going to help incorporate defi onto the privacy layer so all your swaps and farming can be shielded.

Also Nocturne just launched a working product last month (which is I think maybe what spurned this update article, friendly competition), and it’s nice to see privacy projects still building even if the USG is trying to chill everyone away from the space. Vitalik is a known backer of Nocturne as well.

https://app.nocturne.xyz/

[EDIT Nocturne Announcement Article]

https://dailyhodl.com/2023/11/15/nocturne-launches-on-mainnet-to-bring-private-accounts-to-ethereum/

lastly don’t forget that Aztec network is supposed to launch sometime this year. we may have lost Tornado access in the US temporarily, but it didn’t shut it down (not even close) and more and more of these privacy solutions will emerge making it even more and more difficult to deter. at the end of the day blockchain doesn’t work without proper privacy being an option. I urge everyone to learn about and explore these tools.

u/sm3gh34d covers the Besu block bug

View on Reddit →

This wasn’t how I intended to spend my Saturday, but it looks like the sub already is aware of the mainnet block that halted besu this morning: https://etherscan.io/txsInternal?block=18947893

What you might not know yet is there is a hotfix release out that prevents this from occurring in the future for similarly crafted blocks. If you are running besu on mainnet, even if you have already addressed the problem and are caught back up to head, you should upgrade to this hotfix release:

https://github.com/hyperledger/besu/releases/tag/23.10.3-hotfix


Besu post-mortem

u/masterRoshi9 discusses one of the original reasons we’re drawn to crypto

View on Reddit →

Please excuse this minor pause in bullishness and meme sentiment while I vent a bit and reflect on larger problems.

I often think about how inefficient, backwards, corrupt, and self serving politicians of the world governments are; particularly my own. Without getting specific and political, there are so many obvious problems that politicians refuse to address, or can’t, due to clearly perverse incentives that drive them and make them worse over time. It’s one of the things that’s drawn me most to crypto. The guys at Bankless and others in crypto have stated many times that crypto is speed running the lessons learned from traditional finance. More importantly I think it’s speed running lessons around incentive alignment. When everything is financial, the incentive problems and consequences of system design become much more explicit and quantifiable than they are implied like many of the problems in meat space. Governance issues have been rampant in crypto, don’t get me wrong, but experimentation on a smaller scale creates lessons learned and informative feedback that could ideally be applied to broader government systems.

Unfortunately I often times think that we’re too far gone, or late in this game of informed discovery to be able to actionable apply these learnings to larger legacy systems. I’m not even sure we’ve discovered ways to solve a lot of the problems in crypto let alone the broader physical world. Internally crypto can feel fast moving and iterative at a blazing pace, but it also feels slow to me in aspects like these. I feel that if crypto came about 50 years earlier, we might have had a better shot at rethinking the way we govern as a society; that we’d have been able to take more preventative measures or seen problems coming much earlier as a result.

If there is a hope here, I’m confident it will come from younger generations and the lessons they learn from this industry. Everything is driven by incentives, and game theory should be considered everywhere when governing. Here’s hoping the US and other governments nurture innovation in this space going forward. Despite the scams and problems we have here, it is still the breeding ground for the ideas and minds that have the chance to turn things around. It is for this reason, among many others, that choosing pro-crypto candidates is a much higher stakes battle than I think many people realize, even in our industry. It is one of the most important aspects of candidates I will consider voting for moving forward. Long live crypto. Long live Ethereum. Long live innovation. Long live experimentation.

u/timmerwb shares some thoughts on staking after the Besu incident

View on Reddit →

A few further thoughts and opinions on the Besu failure yesterday. I think there is nuance in this situation that got overlooked. But before I begin, let’s get some facts straight - and these are well known and not up for debate:

1) No client should have a super majority.

2) The current, and wholly inappropriate situation with Geth is based on i) it’s code maturity and empirical reliability; ii) a completely unacceptable level of laziness, wrecklessness and short-term greed by large staking entities. (Which is sadly ironic because at least one of those is tied very closely to the overarching security mechanism of PoS - another example of how we cannot simply “code in” all required incentives.)

However, for some stakers, namely solo-stakers (and possibly other smaller, more responsible staking entites), the situation is much less clear. I think it’s fair to say that Geth is indeed a much(?) supererior client to the competition. Should, therefore, a solo-staker take on a more philanthropic role by worrying more about network health by say, running Besu - a less mature client - than their own immediate needs? In terms of measurable risk for them (as far as we can calculate) running Besu would seem to be a disadvantage. E.g. the probability of an event like yesterday for Besu (or NM?) is clearly higher, and their ability to recover from it expediently compared to a larger provider, probably much lower (hence larger losses in time, stress and income). Moreover, as stated at the outset, the systemic risk from the Geth super majority is not driven by solo stakers, and so solo stakers are not meaningfully mitigating that risk by avoiding Geth. (This is like the problem with global warming - we should all try our best, but in reality at this stage, due to the tragedy of the commons, the biggest, and possibly only meaingful improvements can be made by societal policy shift in law).

So, solo-stakers in particular have a question to answer. Should they willingly chose a client that is measureably poorer and riskier for them, basically in support of the “greater good”? Or do they stick with Geth, which is likely to be more reliable for them, and basically push the job of reducing the Geth majority onto the larger stakers (who are clearly much more culpable)? Ultimately, this is something of a subjective choice that boils down to estimates of risk, reliability and person attitude. Yes, Geth could fail in a catastrophic way, but Besu did fail in a catastrophic way. The (empirical) probabilities speak for themselves. Sadly, there is even a worse outcome here, in that (the short sighted) large stakers will now be extremely glad they were running Geth, and not Besu, because imagine having thouands of validators going down on a weekend, with no clear fix for ~24 hours. That would have been extremely costly. Bullet dodged.

In summary, if all clients were demonstrably equally reliabile, the choice of client and question of majority would be more straightforward. But they are not equal at the present time and pragmatism will prevail.


Besu post-mortem

In light of the Besu bug, u/Spacesider found a bug in Lighthouse too!

View on Reddit →

Due to the recent Besu issue, I found a bug in the Lighthouse VC.

If you are interested, the full details can be found here > https://github.com/sigp/lighthouse/issues/5044

u/cryptOwOcurrency share some wallet security tips

View on Reddit →

As we enter the early stages of the next bull market, please remember to keep your crypto wallet secure. While I can’t get into the specific schemes I use to keep mine secure, here are some general guidelines I follow that have worked for me since I created my first crypto wallet in the early 2010s.

My general paranoia has saved me several times since I started investing in crypto in the early 2010s. Remember, they ARE trying to get your keys. Always. You need to be perfect every time to win, they only need you to fuck up a single time to win, so the game is tilted in their favor. They will never stop, so you have to never stop defending.

u/skythe4 breaks the biggest news of the year only to moments later, bring the news which makes real life seem like a parody of itself

View on Reddit →

Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.

The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.

https://twitter.com/SECGov/status/1744829327294837236


View on Reddit →

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

https://twitter.com/GaryGensler/status/1744833049064288387

You can’t make this stuff up.

In a short and sweet doot, u/coxenbawls explains both the big news and what the market seemed to make of it

View on Reddit →

Spot BTC ETF approved. This is good for ETH.

u/KuDeTa expresses his gratitude for the Optimism rPGF Grant and support Aestus received

View on Reddit →

As you may/not know, [u/austonst](https://reddit.com/u/austonst] and I run the Aestus relay. To be frank, it’s been a hard hard slog in terms of funding and we’ve paid for the whole thing ourselves out of pocket this last year +. Well. A few months ago u/benido2030 raised this in here and practically pushed me into working through the OP rPGF round 3 process. I had assumed it wasn’t worth it. Today we found out that we’ve just been granted ~100k OP tokens (🤯). That is an ungodly amount of money for our little project. I don’t even know how to begin to say thank you, but none the less thank you, thank you and thank you to him, u/superphiz and everyone else that voted and pushed this through. 🤝

Week #50: January 5, 2024

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/Shitshotdead

ethereum

u/UgotTrisomy21

$2250

u/alexiskef

0.0512

u/usesbinkvideo

88,900 hodlers subscribed (-37)

u/bagogel12

477d since the Merge

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

ETF approved,

Uncertainty quite improved,

Market barely moved.

Shitpost of the week: u/NeedlerOP

View on Reddit →

2013 : “Wall street bonuses/chinese new year red envelope money”

2017 : “Institutional Money”

2021 : “ETF inflows right around the corner”

2025 : " 5% pension allocation across the board"

2029 : " Gov. crypto funds for all nations "

2033 : " Vitalik crowned god-emperor of mankind"

2037 : " Fully automated luxury abundant gay space communism crypto utopia as humanity spreads across the stars"

2100 : “ETH/BTC ratio surpasses 0.10 this cycle”

u/consideritwon starts a discussion about Vitalik’s latest ethresearch post

View on Reddit →

Saw it mentioned yesterday, but I think Vitalik’s latest thinking on Ethereum’s positioning within the blockchain trilemma design space deserves further discussion. For me this feels like it has the potential to be a large pivot in core Ethereum philosophy and my initial gut feeling is one of discomfort.

Ethereum has up until now allowed anyone with 32 ETH and moderate technical ability to run a validator. At least two of the options discussed by Vitalik in his post would reduce the decentralisation of Ethereum.

The Ethereum community are a pragmatic bunch who don’t see things in black and white. Technical solutions require compromise and decentralisation is a spectrum. Even so abandoning the principle of a relatively small fish being able to validate within the network without having to trust 3rd parties feels like a real departure from a long held value.

u/CaptainOfTheGate covers the best Staking as a Service/SaaS providers

View on Reddit →

The Best Staking-as-a-Service (SAAS) Providers

In approximate order, based mostly on their reputation among Redditors (I read more than I post). For each of these, the user controls their withdrawal keys.

Allnodes

It’s $10/month for their Advanced plan, which is the cheapest one that includes MEV (it’s worth the extra $5/month). That’s equivalent to a fee of only 0.16%, close to zero! They’re a top-15% performer on Rated Network over the last 30 days, and mostly use the Teku (a minority client) consensus client; they’re also large, if that gives you comfort: 2.6% of all staked ether.

Ethpool

They charge 15% of MEV (10% for 3 nodes, 8% for 30 nodes). That comes out to about 2.9% of all rewards (so yes, about 18x Allnodes). I can’t find them on Rated Network. They use minority clients: Lighthouse and Nethermind.

Blox Staking

They have a 0% fee forever (not a typo). Their effectiveness rating on Rated Network is below the 50th percentile as I write this. The company behind them is probably more focused on their new SSV Network now. I noticed that their website gets barely any traffic anymore (it ranks in the millions), but Rated Network says they still stake about 0.53% of staked ether, and they have an active Discord. They use mostly Prysm (the most popular consensus client).

Best solution for leftover amounts when you’ve staked all your 32-ETH blocks:

Competition in staking is heating up daily (e.g. with DVT solutions coming online), but I’ll nominate StakeWise v3. You can stake any amount and don’t need to get an LST. You get to choose an operator. Perhaps 4% fees is typical, but I see one offering 1%. Some reputable operators to consider are x (please reply with your opinions).

Some reasons you might want to use SAAS:

You don’t want LSTs because you’d have to generate a capital gain when selling ETH for them; and they have high fees, typically 10% for Lido’s stETH.

You don’t want to solo stake because you may not feel technically competent enough; you may have unreliable internet (or limited capacity) or electricity; or you may not have a stable place for your node (e.g. you’re a digital nomad).

u/superphiz has a smart contract shower thought

View on Reddit →

I had a shower thought that I wanted to crank out before I forget it. I probably won’t format it well, just trying to dump the idea.

Smart contracts are the basic building blocks, not the infrastructure of web3.

Smart contracts are more like transistors.. or more realistically simple circuits. They can do very small tasks, but having a box of simple circuits doesn’t really give you extraordinary power. Imagine having a bunch of 555 timer chips - it’s a simple but powerful tool, but by itself it’s not revolutionary.

The power of simple circuits comes when you string a bunch of them together to do something even more powerful.

We’re at the beginning of smart circuit development - when several contracts can work together to complete more powerful functions. From where we’re standing this seems difficult and complex. The Intel 8080 processor had 6000 transistors, but the i9-13xxx series have 25 BILLION. We haven’t even reached the capacity of building a smart circuit that includes 10-20 smart transistors/smart contracts yet.

Another way to imagine this is from an evolutionary perspective. We think about this stuff called Primodial Soup, the idea that a bunch of the right building blocks (amino acids) in the same place at the right time can give rise to more complex biological compounds. Our current primordial soup is the library of smart contracts we’re building now, and in time these basic building blocks will evolve into highly complex organisms.

All of this to say.. we’re at the beginning of all of this. We have the foundational building blocks to build complex contraptions that we can’t even imagine yet, but given the historical context of building blocks that get organized, it’s exceedingly likely that we’re on the cusp of rapid evolution in smart contracts.

u/Revanchist1 discusses Vitaliks post on why our industry sticking to crypto values is so important

View on Reddit →

https://vitalik.eth.limo/general/2023/12/28/cypherpunk.html

This is why it’s valuable for Ethereum to have a strong social layer, which vigorously enforces its values in those places where pure incentives can’t - but without creating a notion of “Ethereum alignment” that turns into a new form of political correctness.

I already felt some influencers were wielding “Ethereum alignment” as a weapon to criticize projects and L2s. Sometimes it’s warranted and sometimes you could feel that they were just posturing for their brand. You can feel the “sliminess”…it’s just off putting. Like seeing the the lazer eyes profile pics.

My favorite section is What are some of these values?

Vitalik prefectly describes what brought so many of us into crypto when it was solely BTC and dreams of what crypto could eventually do.

A few years later and the space has evolved so much - taking steps towards achieving some of those grand visions. But in taking those steps, we sacrificed the values that gave crypto any real meaningful value. Why remake the the same thing but worse? The values he outlines in the section are core to crypto and give the space value. Devs need to embrace it and figure a way to make it appealing to consumers. The easy path is centralization. The rewarding path is decentralization.

It is very possible to build things within the crypto ecosystem that do not follow these values. One can build a system that one calls a “layer 2”, but which is actually a highly centralized system secured by a multisig, with no plans to ever switch to something more secure.

One can build an account abstraction system that tries to be “simpler” than ERC-4337, but at the cost of introducing trust assumptions that end up removing the possibility of a public mempool and make it much harder for new builders to join.

One could build an NFT ecosystem where the contents of the NFT are needlessly stored on centralized websites, making it needlessly more fragile than if those compoents are stored on IPFS.

One could build a staking interface that needlessly funnels users toward the already-largest staking pool.

Resisting these pressures is hard, but if we do not do so, then we risk losing the unique value of the crypto ecosystem, and recreating a clone of the existing web2 ecosystem with extra inefficiencies and extra steps.

Beautiful. You could tell it was something that was bothering him for a while now. So much passion and humility in his writing.

u/domingo_mon reflects on why we hold ETH and u/EnvironmentDry1343 shares their thoughts too

View on Reddit →

u/domingo_mon:

2023 is coming to a close and I want to reflect on what Ethereum means to this community. I have two questions.

Why do you hold Ether?

What is something that Ethereum could accomplish that you can look back in 50 years and say “I held through the bear because I believed in Ethereum’s …” Or “Ethereum is a success to me because it …”?

For me, I got into crypto in general because I believe that the global financial system is rigged. Anything worth owning became more and more expensive every year, and the dream of owning a home or land became further and further out of reach. It felt like I was on one side of a ballon and my dreams were on the other side. The balloon was being inflated, and it felt like my dreams were literally being inflated away.

Bitcoin struck a chord in me because it espouses transparency, fiscal responsibility, and financial freedom. Here was a money that couldn’t be printed into oblivion. Here was a money that wasn’t first distributed to the mega-banks and the mega-rich where they buy up assets, creating inflation before finally filtering down to us little people. Here was a money that couldn’t be confiscated because the owners embrace ideas that weren’t popular. Here was a money that could be sent across the world at the speed of light, 24/7. Here was a money that was controlled by everyday people and not some nameless, unelected, unaccountable, government bureaucrat.

I believe that Bitcoin ossified too soon, and r/Bitcoin started banning anyone who suggested that the code should be upgraded.

That’s when I found Ethereum. It was a project that had similar characteristics and desires of Bitcoin but, unlike bitcoin, it was going to continue developing. I hope for Ethereum to become a neutral, global settlement layer. I hold Ether because I want to be a part of the money revolution. I want my children to inherit a world with a fair financial system where the average person can get ahead by saving their ether because the value of their ether isn’t being inflated away.


View on Reddit →

u/EnvironmentDry1343:

Alright I’ll bite, with the preface that a bunch of this is at least inspired by if not outright copied from posts from other people writing about Ethereum.

For me it is about increased coordination/cooperation. I’d been reading about bitcoin for years and didn’t really care about it because discussion was often centered around antagonism: a big bad ‘They’ that controlled this rigged system versus the persecuted victims seeking a new beginning. To me, btc has always seemed more like religion than anything else.

It wasn’t until I starting reading about Ethereum that I saw the value in the underpinnings of this new religion. Blockchains, when well designed and implemented, allow people to interact/transact without centralized actors.

People get more done when they work together and the history of human progress is in my opinion the history of humans learning how to cooperate more and kill each other less. Unfortunately, working together usually means giving power to a small group of people that oversee things and are given a mandate to make choices on behalf of others. These centralized actors all too often become corrupted, and the biggest man-made disasters would never be possible without a bunch of centralized actors abusing or misusing their power (“lol lets go kill all the sparrows”).

Ethereum obviously is not going to solve the problem of centralized power on its own, but it is one of the few developments that I have seen during my life that allow for improved cooperation without increased centralization. To me, that’s big and that’s worth sticking around for.

It is unfortunately also why I haven’t been as bearish about Ethereum in the past as I am now. A few years ago the question was “How do we implement this new tool in a credibly neutral way?”, a technical question with a relatively easily definable answer. Now the question seems to be “Do we really care about decentralization/credible neutrality or do we just want memecoins?”. To me (and I suspect most others here) the answer is clear but we have some convincing to do in the broader community.

So I believe in Ethereum’s credible neutrality. If we somehow manage to maintain that for the next 50 years, we’re golden in my opinion.

TLDR: Ethereum is potentially one of the all too few positive recent developments that might bring humanity forward (even if only by a little bit).

u/Pkickel92 asks about how L2s work and u/hanniabu delivers a comprehensive answer

View on Reddit →

u/Pkickel92:

I may have a massive misunderstanding on how the L2 to eth chain relationship works/will work, so I was hoping for some clarification.

Currently, I need to bridge my eth over the the L2 chain which costs a relatively high fee. I can then interact with the L2 and eventually bridge back if I choose to. My understanding is that this is the currently the only way L2 talks with L1. Is this correct? If this is the case, I do not see how Ethereum fees will ever get down to the prices of other L1 solutions which I believe is needed for mass/mainstream adoption since we are currently performing about 15 tps.

Is there someway Ethereum (L1) is getting this data in real time that I am missing? If not and you are forced to stay on L2s (more centralized) to have reasonable transaction what is the benefit of this setup over other L1s like Solona, Polkadot, etc.

Any explanation would be greatly appreciated.


View on Reddit →

u/hanniabu:

I think your understanding of how the rollups operate. When you bridge the only communication happening is the rollup’s balance sheet is updated to reflect the addition/withdrawal of this transaction.

In terms of consensus, for optimistic rollups (e.g. optimism, arbitrum) all the transactions happening on the rollup are compressed (like a zip file) and verified by L1. For zkrollups (e.g. zksync, scroll) a mathematical proof is created for all the transactions and all L1 has to do is verify the proof.

As L2 blocks get more transactions, the cost per transaction goes down as the shared costs are spread out across more transactions (economies of scale).

(Tangent: The compression of optimistic rollups requires less of the L2 and more of the L1 (and hence more cost). For zkrollups generating the proof requires a lot of effort from the L2, but is very cheap for the L1 to verify.)

L2 blocks don’t happen at the same time as L1. They vary depending on the rollup, but I think most have a target of 2 seconds per block. Ethereum blocks are 12 seconds, so there’s 6 L2 blocks in each L1 block.

So L2s benefit from math and compression for more efficient settlement as well as economies of scale to provide cheaper transactions. This will get even cheaper after the update in the next few months (~april 2024) by creating a separate fee market for L1 blockspace specifically dedicated for L2s. So they no longer need to be competing with L1 transactions for blockspace. This change also makes transactions costs more predictable for rollups, rather than needing to slightly overcharge to account for any potential unexpected gas spikes.

After this update L2 transactions will get cheaper (estimated at up to 1/100th depending on rollup design), falling in the range of a few cents to maybe even less than a penny in some cases.

u/interweaver is still fighting the good fight to diversify the stake. He later shares some results from such good work in action!

View on Reddit →

Hey EthFinance, happy 2024! I have some good news to start off the year :D

Something like 15% of all staked Ether is staked through Coinbase, and only a little over a month ago, they posted in a blog post that they’re using 100% Geth to operate that stake.

We’re still in the grips of a Geth client supermajority, with an estimated 75% to 85% of staked Ether using Geth under the hood, so Coinbase’s 15% stake using 100% Geth is a big impediment to bringing that number down below 66%, where we’ll be safe from an instant catastrophic fork if Geth has a forking bug.

Over the last month, some of you who are on Twitter/X may have been following my campaign to tweet every day at Coinbase to try to get them to diversify their Ethereum execution clients. This was partly an informational campaign to make more people aware of the issues supermajority clients like Geth present, and partly a gentle pressure campaign to get Coinbase to consider switching.

Today this campaign led to a clarifying tweet from Will Robinson, VP of Engineering at Coinbase, that Coinbase is definitely planning to diversify their staking execution clients!

There’s no timeline associated with this, so I expect it might still take a few months, but it’s very exciting that they’ve finally publicly confirmed that they are aligned on client diversity, and are working towards that goal internally.

I don’t think my daily tweets changed any internal Coinbase policy; they’ve likely been working on this for a while already. But it did enable us to get a public statement from them on their client diversity plans!

If you’re interested in my (now concluded) tweet campaign, you can see my most recent one here, with links to the previous tweets.

Thanks everyone who supported that campaign, and also for every one of you who’s running a node with minority execution clients! I’m super hopeful that we can finally get Ethereum to a place of full client diversity in 2024, with resilience against any single client’s forking bug.


View on Reddit →

Happy 2024, EthFinance!

I made a longer post on this below but it looks like it might be hidden, so I’ll just share the punchline -

Coinbase (or a high-up employee, rather) committed today to diversifying their staked Ether away from supermajority client Geth!

This is amazing news given they’re currently running 100% Geth with 15% of all staked Ether.

I’m considerably more optimistic now that this year will be the year Ethereum achieves full client diversity!

u/MrVodnik shares some key pointers on keeping your funds secure when signing on new websitesd

View on Reddit →

Oh, it’s a complex one.

tl;dr; There are two types of approvals. Don’t sign what you don’t understand. Otherwise, you’ll be fine.

Signing is all that your wallet do. If you prepare a signature of a tx, someone else can send this out. So the rule of thumb is - don’t sign anything you don’t understand. I.e., avoid signing “hex” data that is not translatable to human-readable text (e.g. don’t sign “0x2b3cf00321a…” but sign “I agree to terms and services of xyz”).

When it comes to approvals, these are NOT part of the Ethereum protocol! What we come to understand as approvals, is an ERC20 method to allow other parties (mainly contracts) to move your funds. In most (if not all) of legit ERC20 contracts/tokens, it works as expected, and in scamy ones - you don’t care about them anyway. It is good to understand what and how a malicious signature/transaction can do to your funds. Considering above - it can only drain ERC20 that you’ve approved. If you hold more exotic items in your wallet, then its up to you to verify how they act.

When it comes to approvals, there are two main types out there. The first one is the standard “approve” function of the ERC20 spec, which sets on-chain record of whom and for how much, can move the token in question. The second one is “permit2” introduced by Uniswap and slowly adopted by other dApps. It extends standard approval systems and allows off-chain approvals, which I guess is what you’re asking about.

u/benido2030 has the monthly staking update

View on Reddit →

Here’s the ninth edition of the monthly staking update
First monthly staking update for 2024. Obviously the state of staking will be something to watch this year. A lot of people expect way more ETH staked, especially if there is an ETH ETF and it is allowed to stake the underlying ETH. Lido dominance will be something to have an eye on. Then there is eigenlayer of course… And maybe if there are some solo staker airdrops, we will also see new inflows from “small guys”. So let’s dive in!

Validator overview - total: 1051685 validators*

The validator set keeps on growing. The growth isn’t crazy and there are also continuous exits every month, but generally speaking number go up. Right now we are at 24,2% of all ETH staked. In my opinion, there’s nothing really “fancy” to see here.

Client diversity numbers**
Consensus

Execution

Client diversity is more or less the same it was at the end of last year. Nimbus slightly gaining share, which is good, but not really important, since Consensus clients are looking okay.
Execution keeps on being an issue. Geth’s share with a constant 84% is still way too high. How can we change that?

  1. Switch from Geth to a minority client. It really isn’t that hard and might have other benefits like a better feature set (e.g. auto pruning), which might help to make a decision.
  2. There is e.g. Arbora.eth on Twitter asking Coinbase to stop using Geth as their sole execution client. Join them, retweet, post, pressure bigger entities to change their setup. I think retweeting is rather low effort, but might help to spread the word.

Pool distribution***

With the launch of Blast Lido was gaining market share last month. This has stopped and interestingly Lido is basically back to 31,x% like before the launch. Now obviously we can’t really tell where it would be without Blast, but my guess is lower and in a best case the launch only pushed it up temporarily and market share will continue to fall.

Obviously we should not rely on the market handling it! If you have (w)stETH please think about withdrawing from Lido and/ or depositing into Diva. If you participate in the “Diva vampire attack” you will not only receive a new LST but also Diva tokens. Interestingly Diva already has 0.4% market share and hasn’t even launched yet. Let’s make that number go up!
All percentages are rounded, so this is not 100% accurate, but should be good enough to show changes in the coming months.
* https://beaconcha.in/validators#all
** https://clientdiversity.org/#distribution
*** https://dune.com/hildobby/eth2-staking

P.S. Completely unrelated, but Murs 3:16 (The 9th Edition) produced by 9th Wonder is imo still one of the best LPs ever. 9th is an incredible producer and I really like Murs flow. He’s probably not the best lyricist, but innovative and even had a track about Bitcoin in like 2016 or 2017.

u/ElectricMutiny shares their story of loss as a warning for each of us to look after our own ETH carefully

View on Reddit →

Two days ago I wrote in the daily about how I lost all of my holdings. The next two days were the worst in my grown up life, just hours of hours of despair and sleepless anxiety. The worst part was seeing all of my ETH in that foreign wallet address, so close, yet so far away.

Today is better. The sun is shining. I have my little apartment and my family and friends. I did realise some gains during the last bull run which i reinvested in something safer. And my sister still have her holdings, and I will enjoy seeing her get rich during the upcoming bull. She deserves it.

So take my carelessness, my stupidity, as a warning. If you are not careful, you will get recked.

Week #49: December 29, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/Defacticool

Ethereum

u/FrenktheTank

$2355

u/alexiskef

0.055

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Turning up the crowd,

Blackrock goes blockchain aloud,

Excitement allowed.

Shitpost of the week: u/superphiz

View on Reddit →

Grifting 101

  1. Find the grift. Contrary to popular belief, you never need to start your own grift, just find one that’s in progress and join in.
  2. Fill your bags. It’s EXTREMELY important that you fill BEFORE you shill. If you’re joining the grift too late, you’re only going to be exit liquidity, so it’s important that you join a grift as early as possible. Bonus points here if you’re an accredited investor and you can buy into the grift early before the retail investors (you’re going to need them later!).
  3. Buy the narrative. It doesn’t really matter what the narrative is: “faster than bitcoin”, “cheaper smart contracts”, “tons of partnerships”, “a new banking system”, “Visa-level capacity”. Whatever. It doesn’t matter what the grift is as long as you know it. The BEST grifts include promises of future activity and “unlocks”.
  4. Shill like your life depends on it. This is where you REALLY earn your money. Just like any ponzi, you’ll need to convince EVERYONE to buy into the grift because you need the price to go up and you need tons of exit liquidity so you don’t get dumped on. You’ll need to tap into all the socials you can, and even better if you can get podcast/youtube hits. Use whatever tactics work for you: education, insight, sarcasm, humor.. it doesn’t matter. The goal is just to saturate the ecosystem with discussion about the grift. It doesn’t matter whether the traffic is flattering or not, you’re just looking for saturation. If you do a good job, you’ll get free rent in everyone’s mind AND you’ll amplify the power of the shill.
  5. Wait for the flywheel to kick in. With enough social activity, the flywheel will eventually kick in. This means that the price will go parabolic because the social work has made everyone aware of the grift, and when they see price movement they’ll have fomo and buy in. The MOMENT the flywheel effect kicks in you’ve GOT to be on your toes to prepare your exit. THIS is where retail investors are critical. You’re looking for dudes who want to make a quick buck and put all of their faith in charts. These are the guys who will put their “fun money” into the grift in hopes of maybe buying a car or something with the money they make.
  6. The parabolic spike/game of chicken. Timing here is critical. Venture Capitalists and Angel Investors are primed to dump hard, so since you’re lower on the food chain you’ll need to dump first. This is the game of chicken: you need to dump BEFORE everyone else does. This is pretty easy, take 10x and get the hell out of there - no one wants to be left holding this worthless shit. (If you’re a dumbass, you’ll hold too long and be the exit liquidity. If this happens once, you’ll survive, but if this happens more than once you need to quit grifting - you’re not a grifter, you’re just dumb exit liquidity. )
  7. The crash will come, but you’ll have made a fuckton of money and you’re sitting pretty, but you CAN’T stop now! if you only survive one grift you’ll die poor. The crash requires a lot of continued social activity to SIMULTANEOUSLY convince all of your followers that you were duped just like them, but ALSO that you made a ton of money. You’ve GOT to maintain your credibility if you’re going to grift again. Don’t blow this step! Your followers need to build faith in your ability during this stage.
  8. Okay, so you completed a successful grift! Congratulations!! You might get 5-6 grift cycles out of the same coin if the climate is right. This is harder if the grift had promises of future activity, but those are really sweet because you’ll make a LOT more money on it. Most grifters will take a month off before spending another six month cycle pumping the next grift. In that month off, they’ll re-establish their credibility by promoting solid assets like Ether. So, I mean, grifters really are good folks after all, right?
u/LogrisTheBard explains Gearbox V3

View on Reddit →

As ever, I wish we had more discussion around here about app developments on Ethereum rather than… whatever the depressive topics have been the past few days.

In the spirit of being the change I want to see in the world let me plug Gearbox V3. Basically Gearbox is a leverage application that removes the leverage component from the underlying application and allows you to apply leverage using Defi legos on their own. Think of it like ‘modular Defi’. The key insight that enabled leverage is that when you borrow funds, the funds aren’t given to you, they are held in escrow by the protocol so you can’t just run off with them. Now, there’s no sense having the protocol just hold onto borrowed funds. The reason you’re borrowing is to do something. So, since you aren’t being given the funds the protocol has to do that something on your behalf.

For older leverage applications, the something they would do on your behalf was the application. You could use dydx and get leveraged price exposure to an asset but the leverage was tightly coupled to a dex. This leads to liquidity fragmentation. While the nature of the price exposure mechanism changed with apps like GMX, perps still tightly couple the liquidity source for leverage with their application. By contrast, Gearbox allows you to execute leveraged strategies that actually execute against Curve or Uniswap.

To execute a strategy with Gearbox you put up your collateral, borrow the funds required to execute your strategy, and then execute it using a plugin to any Defi application they support. For example if you wanted to go 3x long, you could put up 1x collateral, borrow 3x whatever you’re shorting, swap to 3x of your long asset using any supported Dex, and hold that position while paying interest on the borrow. When plugged into something like Aave this also let’s you do fancy stuff like profit from interest rate spreads or leverage your way into a Curve LP Yearn pool which auto compounds rewards back to you. The potential here is open ended and incredible.

Gearbox v3 does a few cool things. First it allows borrowers to have better granularity on which position is secured by which collateral. The basic idea is they create a smart contract with your name on it that is executed according to a strategy you configure. Second it enables lenders to underwrite their own risk and choose what types of risk their funds are exposed to. This is a common trend I’ve seen lately in Defi. We are steadily moving away from pooling everyone into the same risk bracket and moving towards programmable money where everyone can adjust their own risk.

If you have time I’d suggest you dig in or you know, try it yourself. It’s far more fun to focus on exciting things happening at home than to focus on narrative noise from CT and bring it here.

u/Defacticool shares their experience getting phished so you don’t have to

View on Reddit →

Alright so got hacked for the first time

Well “hacked”, I accidentally approved something in metamask that allowed them to take all my eth and one NFT.

Like 24k USD worth in total, which isnt the end of the world luckily enough. Luckily my main stack isnt on this adress.

I got fooled because I was trying to do the Frame airdrop and when looking at their twitter (the correct twitter) a fake frame account with a check mark (thanks for that Elon) were in their replies and I wasnt observant enough.

idiotic of me, but anyway

I still want to utilise this adress to claim airdrops and the like but I obviously cant do so when I have this hanging over it. I’m looking at the approvals checker on etherscan but cant find any approvals I did today or any access given today, so this fraudulent acces/approval isnt there.

Does anyone else know how I do/how I should do to remove their access to my address?

Thanks for any help

Edit: Also I suppose it doesnt matter now so for any interested sleuths heres my address for your perusal: 0x139373F9FFeDCf909518096fC165f3b87fD7046C

After looking over it it doesnt seem like I have any offending approvals. Is it possible for a phisher to have some other kind of access still?

Edit 2: The offending transactions seem to have been these ones, in this chronological order:

https://etherscan.io/tx/0x07344545d7b3e3ce7032dc5319ee9e3dbce291bcdbe3b798982055bb7b6a6567

https://etherscan.io/tx/0x4b7a6c41aed26af4280b24c7da787b0b5732a43e34bf81d6cea79c02857c2bed

https://etherscan.io/tx/0x8c374ec10e5254289a4c224e6dfae6c0a76a0466f0ab4bf7d803844f05c421f3

What I’m worried about now is that the scammer can repeat some function in order to drain my adress again in the future, if I fill it with some ETH for gas for example

If anyone with that are above my hobbyist level of ability could help tell me if anything in these transactions point to this being repeatable I would greatly appreciate it! (or just point me in a helpful direction would be really nice too)

u/haurog has a post about wallet security and phishing protection which you simply can’t miss

View on Reddit →

There have been too many people being scammed out of some of their crypto holdings with the recent frame airdrop. The frame airdrop is legit, there are just too many fake claim websites wanting your money. If you use the network please consider installing/enabling transaction previews. These help you understanding what you are actually signing before it gets broadcasted:

Either use:

All of these solutions put another actor in your signing process which could get attacked. Be aware of that. I am also not sure how much information is shared with whom in all these solutions. The additional extensions have served me well in the last months in combination with the frame wallet. I think the Rabby wallet is the most user friendly one, but a bit too paranoid for my taste, especially if you are using very new protocols.

I tested all of these solutions on my go-to scam website I found some time ago, a tornado cash fork, which wants to steal all my funds. All of the above solution told me exactly what I sign and Metamask even wanted to prevent me from visiting the scam site.

u/Qwertybop1 shares a big moment they’re celebrating on-chain!

View on Reddit →

https://etherscan.io/tx/0xde92b790ebd82fa73b69b3f1d32d1f5b3d11649971da43e20593c7e7099a0fba

We got married onchain yesterday!

u/strawdar summarises the new ETH research proposal

View on Reddit →

So if I’m reading this proposal correctly:

  1. Beacon stakers would no longer receive MEV rewards

  2. MEV relays would sort of be replaced by execution ticket markets. This opens up the possibility to introduce burn on what today is MEV rewards.

  3. Block builders would buy execution tickets and run execution proposers

EDIT: I think I’m making some assumptions on number 3, because the proposal says this is orthogonal to PBS. So number 3 could involve multiple parties or it could not.

EDIT2: Before stakers get up in arms about MEV rewards going away, this proposal would open up a new avenue for speculation on execution tickets: “Explicitly defining an execution proposer lottery allows validators to participate only by choice. If they like the idea of flipping a coin and getting a high-value slot, they are free to buy execution tickets.”

EDIT3: More stuff is sinking in now. You could in theory choose to run your validators in a mode similar to today by configuring them to purchase an execution ticket for each upcoming slot, but the cost of that ticket will be market driven while today they are essentially distributed uniformly and randomly.

u/krokodilmannchen has the latest on the ETF front

View on Reddit →

Latest on the ETF front: issuers have until next Friday to amend their filings. The SEC wants cash create only, and AP agreements. Whoever gets these done, will get a “go”.

Also, Blackrock will seed with $10m on January 3rd (subject to change).
Also, they have an Ether ETF filing. ;-)

u/masterRoshi9 shares a grounded investment thesis

View on Reddit →

If you frequent crypto Twitter and are feeling doubt about ETH, and FOMO or anger over Solana, it’s worth checking yourself and asking why you’re invested the way you are, and why you feel like that way. Personally speaking the vast majority of my stack is, has been, and will remain ETH because I can hold it and sleep well at night expecting it to go up over time with minimal downside risk relative to other crypto assets. It has arguably the best fundamentals of any asset, not only in crypto, but in any market. On short time horizons it won’t always or even often perform the best, especially in a bull market where narratives rule the day, but it will provide the best risk adjusted returns imo, and wealth preservation can be just as difficult if not more, than capital appreciation. I’m still buying.

 

Having said that, The recent performance of Solana, and other tokens that are purely speculative bets, is a great example of why it pays to be open minded and why it can be helpful to diversify. I maintain a percentage of my portfolio for speculative bets, trading, gambling, etc. Doesn’t work for everyone, you have to be honest and cut yourself off if you’re just burning capital, but it’s fun, curbs FOMO, and ideally lets me capture some additional upside from narratives or short term plays. I missed Solana, but made some gains on WIF, and had some fun shit posting with friends about it in our own internal group chats. Also have some medium-term holds and narratives I plan to dabble in this bull market.

 

It’s easy in crypto, especially if you’re on CT, to feel like you’re in a rat race against everyone else, look at gains someone else has made off of something you consider vaporware, and let it upset you. Even easier to let narratives that ETH is dead and that X-coin with no fundamentals is the future of France upset you. Don’t. If you’ve been here for the bear and have been buying ETH then you’re up too. Normies aren’t even here yet. Enjoy the ride. Be happy for newer or smaller participants coming into money for the first time. This is how crypto grows. Most importantly do not feed into tribal hate. Talking down about the ecosystem that just made users money doesn’t attract participants to our ecosystem or encourage learning, it just pits you against them and feeds into negative sentiment. Be welcoming and focus that energy towards more productive endeavors. Learn from Vitalik. It’s impossible to hate a guy that is perpetually positive towards others. And he does an excellent job framing all of crypto as an “us” vs the them, if I do say so myself. https://x.com/matthuang/status/1738810362022232210

 

In the end I think the Ethereum ecosystem will capture Solana’s moat, but that time is not now. If you too think that time will come, good news, you can position for it. These are my biggest catalysts for ETH this year:

 

Basically what I’m saying is this: we should all be happy that the bull market seems to be back, and that we all have the opportunity to make money again in the coming year. If you disagree and are still bearish than maybe this post isn’t for you. Either way, enjoy the holidays, and may golden showers rain upon /r/ethfinance dailies every week for the next year!

u/Bob-Rossi reflects on a year of delegate representation

View on Reddit →

In the spirit of year-end reflection and New Year’s resolutions, I am looking for feedback / suggestions regarding my delegating duties of ARB and HOP I’ve taken on this year. Asking as I’m still relatively new to this and want to improve when I can - don’t be shy or holdback anything in feedback. For some context, my goal has largely been to take on these roles to help get some of the great minds on r/ethfinance a way to feel represented in governance. I’m not sure that has happened to the extent I’ve envisioned, but hopefully I’m making some impact and will grow into that in the future.

Obviously, I have no way to tell who actually delegates to me, but I’m assuming a bulk of the people are those who post here. So figured this was the best place to ask. So in short, do let me know if there are things you think I can improve on or ways you felt I’ve let you down. As well as things I’ve done that you would like to see me keep doing. Even if you aren’t specifically a delegate to me.

Some thoughts / questions of my own:

Voting Transparency — I do try to post DAO updates here both for informational purposes and to keep myself transparent. I know following actually Tally / Snapshot votes is a pain, so I hope this helps. Unfortunately, ARB is a little difficult since the forum links are shadow-banned. I do try to comment in the Arbitrum / HOP forums on my votes where it feels warranted (or on the actual Snapshot votes themselves). No good way around the ARB problem, but I do link the votes and do a summary of decision here to help with that. I also try to wait until a few votes have passed to ‘batch’ my updates and avoid clogging up the daily toooo much, however if people would prefer immediate updates (say, within a few days of the vote ending) I can switch to that.

Voting Participation — I do try to vote on everything that comes up, since that is ultimately the fundamental role here. Regrettably, I did miss a few votes over my time doing this. I think about 5 or 6 overall earlier in the summer across both DAOs. No excuses, and I’ve made sure not to miss stuff going forward. I’ll add, the Arbitrum STIP voting I did probably vote in maybe 1/4th of the total pool of candidates. The structure was a major issue IMO, which I brought up in the DAO forums. Expecting delegates to vet and vote on 100+ projects in that timeframe was impossible, and it does sound like future STIP / LTIPs are making note of that. And I’m not sure many delegates did vote in 100% of those (hats off to those who did). Sort of a one-off, but wanted to clarify that situation, and I do wish in hindsight I took a little more time for that.

Calls — I do try to attend the ARB and HOP calls when I can. I work full time, so it’s as schedule permits (although ARB does record the call and HOP has notes). ARB I’ve been admittedly lacking, but I’ve been better having joined the last 2. This is one of my top goals, to have better attendance here. My Q here is this - do people want updates on this type of thing? Is that too much? It sort of goes along the lines of r/ethfinance input as I’ll discuss below.

r/Ethfinance Input — I know sort of the point of being a delegate is so that people don’t have to worry about day to day minutia. However, I do want to feel out people’s opinion on this. For notable / larger / more controversial topics should I try to reach out for input more? Do people rather just me ‘read the room’ and vote that way. I try to vote in a way that is best for the particular DAOs & the Ethereum chain, but again I want to leverage the mindshare that is here to do that as I am still only human. Also, I want to re-iterate that I welcome people to reach out. that doesn’t happen much, so if there are ways people think I can be more inviting, for a lack of a better word, let me know. I’d love to be able to be a bridge between ideas here and ultimately discussion in front of said DAOS.

Updates — Basically, a mis-mash of the above. I want to walk the line as best I can between over and under updating on issues. So thoughts on this would be appreciated!

Twitter — I don’t really like Twitter, but I made one as I can’t stick my head in the sand. I don’t really use it that much… I’d be curious to those who think if I should use it more? I’m thinking maybe just doing updates there as well for those who follow. I don’t want to dive into CT degeneracy, but I probably should use it as a space to get updates out?

And finally, a thank you! There isn’t a day that goes by where I’m not aware of the number of people that trust me with this. I know governance isn’t that sexy of a thing, but it’s really cool that people feel they can trust their vote with me and that isn’t lost.

u/lotec needs your help to push Coinbase into diversifying their stake

View on Reddit →

It would be great if we could give Arbora.eth a bit more publicity for his campaign to have Coinbase switch away from Geth.

https://twitter.com/arboraeth/status/1739856214727557241

u/the_swingman points out the struggle newcomers would have in finding good crypto information

View on Reddit →

Interesting you’re saying this today, I was just thinking about how lost a newcomer is in this space. Even if they found this subreddit, (could you imagine the lost faith in crypto if they visited r/cc or even r/Ethereum first?) I’m not so sure it would be obvious this is the place to trust or realize this sub is putting out the most critical/thoughtful info/discussion.

Imagine someone out there today (which I’m sure happens everyday) says, today is the day I’m going to get into crypto. Ugh, I’m getting a migraine just thinking about being that person.

Legitimately, im wondering where that person goes. The options are wild. Crypto Twitter, YouTube, reddit, discord, overall asking Google? Ooof. All of those can be very hit or miss with more misses than hits. Even finding coinbase and reading through their learning center can lead you down the wrong path.

There is just so much to comprehend on a fundamental level, then deciphering what is a quality crypto and why? The space is so polarized. For someone brand new, how quick would they learn the differences between ETH and BTC or XRP for that matter, or literally any other crypto. What’s the chances of them learning about LSDs or even the basics of Defi? Where is the drop off on the learning curve for most people?

Thinking about if I was brand new, jumping into “crypto” today, what would be the most helpful thing for me to learn and understand.. and how would I find it?

Off the top of my head, personally, I would like a flow chart. Something that could help me visualize the crypto space. Maybe a few versions of the flowchart, basic, intermediate, advanced .. clickable keywords that give a popup of basic definitions.

How would I find it? Idk, maybe this is where the Maverick funds do some SEO and try to find it’s way on the first page of Google.

u/benido2030 shares some thoughts on winning and not comparing to others

View on Reddit →

Some thoughts on winning

When I was a student, online poker became popular. By chance (I don’t even remember how) I found an online poker school that handed out 50$ for free after passing a quiz. I started playing Fixed Limit on the low low stakes (well, because 50$ isn’t a lot) but learned a lot, became better, moved up. When I reached 5/10$ (still in FL), I couldn’t handle the daily swings anymore. After all I was still a student, had like 750$ a month for everything from rent to food to cloths to drinks. So being in a position of losing 1000 + onanygivenday, basicallywithin30minswastoomuchforme.Iplayed3/6 for a long time, switched to NL at some point and made it to NL200 games, but felt uncomfy again. I think I was a decent player (but nowhere near the best players on the high stakes) and could have moved higher with my bankroll and skill, but never did. I met a lot of high stakes players that made a lot of money (e.g. I am pretty sure I talked to Hasu a few times). A lot of friends made a lot of money just playing mid stakes, not even grinding nose bleeds. Later I lost interest, because I started working and didn’t want to grind at day and night.

As my second job, I joined a startup rather early, just after they had secured the first significant funding. The startup had created a new product, which turned out to be very successful, used the funding to do performance marketing and within 3 years, the company grew from basically 100 to 1000 FTE. A lot of “high profile” people were hired, earning a lot more than I did, despite being assholes, not being a cultural fit and also not delivering any meaningful results. But they were great politically, knew what to say, when to say it and how to impress the (also rather young) founders. I was living the culture, delivering, but earned like 50% and hated everything about the bullshit bingo guys.

When a very good friend of mine quit his job, he still had some free time before his new gig started and he asked me what to do with it. That was at the end of 2017/ beginning of 2018. I said “there’s this crypto thingy, seems to be interesting, maybe dive it?”. We decided to invest 1000$ together. I was still very risk averse and didn’t feel comfortable putting money into something that went up and down so fast, so I was happy we did it together. We bought the literal top in January 2018. Got like 0.7X ETH on a Friday, which made +100$ until Saturday. I still remember the euphoria, that day marked the literal pico top of the cycle. I learned a lot, eventually started living on-chain, but never really participated in farming, cause I still dislike spending ETH for tx I don’t really need to do for a potential airdrop I might or might not receive. I did receive a lot of airdrops, but I am also pretty sure that compared to others here, my airdrops are tiny.

Also I had a neteller credit card connected to my Amazon account and basically ordered stuff for free as a student and bought a new (small) car just after finishing university, because I had made 50k in online poker.

While I was “only” earning 50% of the supposedly high flyers, my salary 2,5xed within 3 years and I had way more money than I needed (and you are probably aware by now, that spending / investing money is not a strength). I also started as a senior role, but at one point managed 150 people and three departments.

While I probably should have invested more, invested earlier, farmed more and should have way more ETH than I have now, I have received a decent amount or airdrops that are a huge boost to my portfolio. More importantly, I have learned a lot, about investing, finance, how poorly I invested before, how many basic concepts I didn’t fully understand and how important it is to make conscious financial decisions.

Don’t compare yourself to the guys that make more money in poker, at work or in crypto. Compare yourself to the guy in the mirror that wouldn’t have played poker, wasn’t lucky to join a growing startup that allowed you to grow a lot in a short amount of time (both financially, but also when it comes to responsibilities and hence your CV), or wouldn’t have invested in crypto because that friend you needed would have said “no”.

If there is one thing that I have learned it’s that comparing usually won’t help you. It usually doesn’t motivate. It actually kills motivation. It gives you a hard time emotionally. Don’t compare yourself to the guy on twitter that brags with that 7digit PnL. Don’t blame yourself for not receiving the next airdrop on 5 wallets instead of one.

Comparing doesn’t make sense, because your risk appetite is unique. If you accept that you are defined by who/ how you are, you will be able to accept outcomes way better. We can’t expect to make millions if we don’t invest a lot (of time, money, ETH). And that’s okay!

Celebrate that one airdrop like it was the lottery. Be happy about your first ETH like it was worth a million. Don’t try to be/ act different then you truly are. And you’ll be winning!

2024 Predictions
Week #48: December 22, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/Fiberpunk2077

Ethereum

u/alexiskef

$2260

u/usesbinkvideo

88,715 hodlers subscribed (+6)

u/bagogel12

Day 463 since The Merge

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Yes we tokenize,

No you won’t believe your eyes,

New money arise.

Shitpost of the week: u/doomfuzzslayer

View on Reddit →

Sold my ETH for a 2020 Honda yesterday. I’m out of crypto entirely now (gladly). I know the used car market has been hot the past year but I’m betting it has some room to run. IF I buy into crypto again (with my used car profits) it’ll be a basket of sub 1000 MC coins with 100x potential and some SOL/AVAX for stability (they’re the new BTC). I’ll be fine with a 10x tho. Regardless Eth is done imo and everyone here is wasting their time. Advice (not financial) get out before the inevitable epic crash and buy something with more upside. Aside from used cats, garbage pail kids (first edition only with stickers intact) are looking strong.

EDIT: meant to say used cars in that last sentence, but used cats also have more potential than ETH so not gonna correct.

EDIT2: meant this whole post is a joke. Bad timing I know but hoping to lighten the mood a bit

u/benido2030 has found 2023 to be their favourite year in crypto

View on Reddit →

I am tired. Hyped, cause I believe 2024 will be a good year, but more tired now that it’s still 2023. I think that’s partly the bear market which is exhausting, because I promised myself to learn a lot and pay attention to benefit during the bull market. But probably also just psychology cause the year is coming to an end and humans are strange. It’s an arbitrary date, but still it feels significant, I guess also because of the holidays. In any case this year was my favourite year in crypto. I have learned a lot, developed new interests (eg for the importance and details of governance) and the past 12 months made me feel like home in ETHfinance. I love this community since I joined (2019 or beginning of 2020, don’t remember) but somehow 2023 was special and I would like to thank all of you!

That being said I’ll post less for the next 2 weeks I guess, but I’ll stick around, will read and will be back in 2024. love you all!

u/hanniabu defines some terms which some people seem to be confusing

View on Reddit →

There seems to be some confusion around terminology. Maybe the terms have been diluted from when I learned them, but this is how I’d define these terms:

u/haurog explains parallel execution on Solana and some criticisms of its consensus mechanism

View on Reddit →

In my understanding the solana parallelism relies on the transaction submitter to tell them what contracts/states they touch. It is assumed that they are honest. The attack vector on the paralellisation then goes like this. Just tell the SVM you are touching all AMM contracts, even if you do pretty much nothing in your transaction. The SVM then cannot process the other AMM swaps in parallel, but has to wait until it has processed yours before it can do the other swaps. You force it in doing at least one step serial. Transactions are cheap, so nothing stoping you spamming the network reserving resources left and right. I do not think one can bring Solana down with such an attack, but it would slow down the SVM quite a bit.

If you want to learn about some real issues with solana in the consensus mechanism they use, there is a recent conference paper by the distributed computing group at the ETH, a university, in Switzerland: https://tik-db.ee.ethz.ch/file/9d40dad802dd12d9ba1f1b7c1759920c/

I only skimmed over it, but here are some juicy bits:

App devs might want to develop on SVM for its speed, but to be honest, there are not that many dApps on Solana, so it seems to be difficult to find dApp devs. They had quite some incentives in 2021 I think to onboard people, but it was a limited success as far as I remember. Maybe now with the renewed speculation they might attract more settlers, but we will see what happens. I guess generally Ethereum people are interested in Solanas tech, because they implemented things which need to be solved on the Ethereum side as well. In my opinion, parallelization is not the bottleneck on Ethereums side just yet, it is probably more important for L2s. The Bottleneck is rather the state size and how it is stored/accessed which needs to be solved before one can reap benefits from a fully parallelized EVM. And I am not aware that Solana has solved that issue, but as always I could be very wrong there.

u/SpontaneousDream has a Coinbase vs the SEC update

View on Reddit →

Surprised there isn’t more talk about the SEC decision today against Coinbase’s petition. This is over a year in the making. Essentially, they are going against Coinbase’s view that:

"the Petition’s assertion that application of existing securities statutes and regulations to crypto asset securities, issuers of those securities, and intermediaries in the trading, settlement, and custody of those securities is unworkable

Official SEC release.

Gensler comments.

Coinbase has appealed and will be taking them to court. This will probably be the most important court case in crypto’s history.

In my mind, when Ethereum held its ICO, it was probably security. IANAL but a brief look at the three prongs of the Howey test makes ETH sound like a security offering back then. BUT, Gensler I believe has said before that something can start out as a security and “become decentralized enough” to become a commodity. Don’t quote me on that.

u/TheHansGruber has a staking node update

View on Reddit →

It’s been about two and a half months since the holesky testnet re-launch, and all is quiet on the western front. My several thousand holesky validators are choochin’ away with no significant hiccups. Running geth/lighthouse at the moment. Still haven’t gotten around to setting a withdrawal address for them. For some reason I started having a difficult time picking up peers on this machine. Since launch I have been stable at 1round 15 peers, but over the last week that has dropped to 1-2 and sometimes 0 peers. Surprisingly, and this is more of a testament to the design of the network, my average effectiveness hardly dropped at all during this. I remained in the mid to high 80’s.

I did do some changing of my network setup and for a few hours I had the holesky machine connected to both wifi and ethernet…I believe the machine had two IP addresses assigned to it and that may have caused some wires (or em waves?) to cross.

I decided to go ahead and forward the ports associated with the EL/CL applications, something I have not had to do with the rocketpool or solo machines. Both of those machines have 50+ peers running out of the box setups and nothing besides a static IP assigned to them. Anyway, running this setup overnight has brought the machine up to the max specified 50 peers and I foresee no other changes needing to be made as far as networking goes.

The other fun part about all this is that I have finally pulled the trigger on a nice little rackmount setup. Not necessary (by a longshot), but a lot of fun for a self-proclaimed computer enthusiast. Over the last couple years I have collected some rackmount equipment that I have come across for free/cheap. UPS’ that are being tossed just needed a couple new batteries. Gigabit switches that just need a new SFP adapter, etc. Color coding the patch cables and swapping out USB/HDMI/ethernet keystones to make it all look neat and professional. I made a custom mount for a gas spring arm for a monitor on the back of it. There are these cool 1U flip up monitors you can buy that are like 700 quatloos ….yeah….nah….I’ll use my free, collecting dust in a corner monitor instead. I have discovered that any normal computer component becomes 10x more expensive if it has “enterprise” or “rackmount” in the name.

I am trying to convince another local ISP that I am a business so they will install a fiber line directly to me. My understanding is that the install would be free, and the monthly cost would be more than what I am paying now, but not wholly unreasonable considering how much time and bandwidth I use. I have been close to picking up a dream machine pro because of the sale ubiquiti has had on it…apparently they never do discounts…but after perusing through the rest of their hardware if I fall down that rabbit hole it’ll take eth breaking 100K before I can pay off the credit card bill. They’ve got some good lookin’ hardware. That said…if I am a business, then that can all be written off…so less taxes…and there I go talking myself into it again. I’ll stop now.

The nodeset machine is up and running as well, just waiting to be assigned. I am looking forward to that launch next year. There’s a lot to look forward to, and a lot of good work being done combat the biggest threat to ethereum’s credible neutrality. It should remain on everyone’s mind that the priority needs to be the health of the network. Any entity that approaches 33% is a threat to credible neutrality. Doubly so for an entity that says out loud that they do not care and will continue to grow in an attempt to harm the network in pursuit of greater profit.

Just so everyone is clear: there is no debate about this. Let us keep fighting the good fight, less we lose the greatest value prop of ethereum.

I’ll keep the staking machines running. Sip some coffee. Get my steps in. Enjoy the beginnings of the bull and patiently await new ATH’s. Post here, and occasionally degen 100x some coins no one should touch with a ten foot pole. You know…for fun. Because if we don’t remember to have fun doing all these frontier-of-the-internet shenanigans…what’s the point?

u/stablecoin discusses the difference between high and low conviction investors

View on Reddit →

weak conviction endlessly follows price pumps, strong conviction requires years of building on ideas and integrating within the ecosystem to deliver on the promise of decentralized uncensorable monetary system that any entity can build on.

there’s a difference and some of you don’t seem to understand. for example is retail going to deposit directly into CRV pools or is retail going to use an app that pays their transaction and draws liquidity from the CRV pools in the background? stop worshiping retail pumps like they mean anything other than CT rotations and drummed up VC exit liquidity.

FTX estate recently announced they are giving people cash equivalent of crypto when Bitcoin was at 16K prices, and keeping the rest (ie spread between 16K and 42K). guess who also happens to have a lot of SOL to pay back their estate in such a generous way? strange how it all works out huh?

u/Nyruds shares the EthFinance farcaster channel

View on Reddit →

Someone created an ethFinance channel at Farcaster. Certainly not to replace reddit, but to try to gather like-minded people in a group on Farcaster.

If you’re a user of Farcaster, be sure to join up!

u/austonst has an unfortunate piece of block relay news

View on Reddit →

BloXroute have announced that they are no longer accepting block submissions from builders that contain any transactions that interact with OFAC-sanctioned addresses. For now they’ve enabled their OFAC checks on their max profit relay, but obviously this makes it kind of the same as their regulated relay and at some point we’ll see them merge into one.

BloXroute’s max profit relay currently has an inclusion rate (market share? it’s complicated) of ~20%. Turning it into a censoring relay doesn’t mean 20% more overall Ethereum blocks are going to be censoring. It’s more likely that the remaining non-censoring relays will still deliver those blocks, and the impact on Ethereum will be minimal. But clearly this is a trend in the wrong direction for network health.

P.S. reminder that censorship at the builder level is a much bigger concern than censorship at the relay level right now.

u/nixorokish sings the ultrasound team’s praises

View on Reddit →

man, this makes me so mad. dude misses a few blocks and sees ultrasound relay being transparent about looking into user issues and engaging with the community and makes a fud post about them on ethstaker… and mixes it in with a good message about bloxroute censorship, so it’s getting upvoted

https://reddit.com/r/ethstaker/comments/18lpd53/update_your_relays_bloxroute_is_now_censoring/

ultrasound is seriously such an amazing team for this space. both justin and alex do a huge amount of work to try to keep projects censorship resistant, including reaching out to staking orgs to ask them to run non-censoring relays, doing censorship resistance research, liaising with businesses on keeping ethereum credibly neutral, communicating with the public, helping users troubleshoot, etc. and the relay works great for most users around the world. the fact that there’s an issue in hong kong and australia is newly discovered, thanks to user feedback. and this brand new user who has never even interacted in the subreddit misses a few blocks and immediately makes a post to shit on them. this is why we can’t have nice things

u/LogrisTheBard discusses the concept of useful proof of work

View on Reddit →

Have any of you heard of “useful” proof of work? Now I know most of us here are thoroughly in the proof of stake camp for consensus but at the end of the day all our stake is doing is serving as a basis for Sybil resistance so a bunch of nodes can vote on what the truth is. At the end of the day it’s just majority rules. Ethereum solves Sybil resistance by making participants proof they have something. Bitcoin solves Sybil resistance by making participants prove they spent something. That’s obviously quite wasteful if you spent that something while getting nothing but Sybil resistance in return but what if the work produced something of inherent value?

The most famous form of proof of work is hashing. However, the nature of the work can take many forms so long as the task meets a few basic requirements.

So, are there any other “infinite” demand tasks exist with a statistically verifiable outcome? At least one important one is AI training. At least for certain types of AI you’re basically just tuning an extraordinarily large array of numbers. That tuning works like a search that takes place over many iterations. Each iteration outputs a vector in that space which is basically your proof of work. In a large enough search space, guessing the right direction is basically impossible. So, to get a coherent direction consistently you need to actually do the training work. This is basically the insight of GenSyn.

So, now you spend electricity and rather than getting BTC which is just a proof of spend, you get ownership over the model you helped train. Once you have Sybil resistance through this means you can pile on an EVM, SVM, or whatever you like on top of it. Think of it as swapping out just the consensus client. People do work and prove they are real, real people just vote on the truth of the state machine. Majority still rules.

There are some potential advantages here to decentralization. PoS at least has a cost of the time cost of the capital that is parked there. Useful PoW might have actually no cost if the economic value of what is produced by the work is greater than the spend required to produce it. Also, anyone with a graphics card powerful enough to iterate on the model can participate without having to hold $64k in ETH. The waste of the system is reduced to the verification time on all participants. That can be offset by the transaction costs of the network being secured.

I just thought it was an interesting line of thought worth sharing. There are forms of work outside of AI but this is one that I came across in my consulting work. Also BitTensor had a pretty good primer on the ecosystem of PoW systems if you want to get your head out of the Ethereum ecosystem for a minute.

u/696_eth compares all of the major chains

View on Reddit →

What’s good bearfinance. Since I stopped being a decentralization maxi I got to be more free and open minded and explore many other chains, here’s my quick summary.

SOL.

Pros: good fees. Phantom wallet is way better than Metamask and any wallet for any other chain that I’ve experienced. You can still enjoy the defi, NFTs, etc but for low prices so it’s more appealing to masses. All of that is good until you hit their main concern, so let’s get into cons.

Cons: when needed aka when demand comes in the shit doesnt work but even w/o that half of the time my TXs on dexes don’t go thru. I’m assuming when there would be even more demand in the bull run the chain would stop or half of the shit wouldnt work. So yes, the fees are low but the chain doesn’t work. It doesn’t make me feel secure to hold more than a few $k on the chain and I’m sure real world whales wouldn’t want the chain to stop at any time either.

AVAX.

I might’ve gotten to degen there in the wrong time but the fees WERE INSANE. I paid more than Ethereum fees for prices. I don’t know what their adv is and I don’t care, the experience sucks. Oh, and I also have gotten my TX’s failing for unknown reasons while still losing like $10-20 on trying to swap..

Cardano.

Cardano is a poor man’s Solana. Basically all the same shit except it’s even worse. Fees are not as low neither. Sometimes the chain just stops, oh well. People say you wait 1-2 days and try again lmao.

Osmosis (or whatever its called)

I didn’t have a bad experience but I haven’t done much there. I’ve already ran into a few hiccups and I’m assuming there would be more if I explore. Also, it’s also probably working ok cause not much demand and again I think that will change when there’s lots of demand.

BSC

I guess it works but the emphasis on the ‘guess’. Cheap fees but yeah idk.

Bitcoin

30-40min blocks, insane gas fees ($40-50) per tx, no good fucking wallet cause they have their lightning and other ones and there’s taproot and some other shit and it’s all over the place and I need 3 wallets but then I can’t send from different parameters aka lightning, taproot, to each other. Doing NFTs there is a fucking joke, let me tell ya, but free money is free money.


Out of all of these, honestly, SOL is probably the best experience for a normie user. You don’t have to have much money and it generally works relatively well until it doesn’t. Bitcoin has the opposite issue, works poorly awful but it ain’t gonna stop.


ETH L2s

Linea: fees are like mainnet at 30 gwei, wtf is that?

Scroll: fees not too bad but could be better.

Arb1: somewhat better than scroll.

OP, Base: almost 0 fees and quick confirmations. love it!

Zksync: pretty good fees tbh compared to zkrollups and arb1 but high compared to OP stack.

Polygon ZkEVM: similar to zksync I’d say.

Arbitrum nova: similar to OP w almost negligible fees but idk who uses it.

Gnosis scan: similar to Arb nova.

Starknet: fragmented out of Ethereum’s ecosystem, getting there felt worse than to an alt L1, fees are higher and Linea doesnt look that awful with the Starknets presence.

Polygon PoS (sidechain): actually has an ecosystem, fees more similar to Arb1 & zksync when there’s more demand and activity, but usually it’s a few times cheaper. You gotta have matic to use it tho so that’s a downside.

ETH.

Secure. The fees are kinda high, they are ok but def not for the normies. When the demand spikes up and when more demand comes back it is def going to be only for whales or for degens. The chain never stops tho. Gas wars exist but chain works perfectly. Idk, not really much to say, things seem obvious to me. There’s hella liquidity too, there are options like defi that let me do things that I wouldn’t do on the other closest chain by security - Bitcoin, and then compared to that the block times are magnitudes of order faster. ETH definitely wins for me as a settlement layer and makes me feel comfy holding assets there.


Will I still use other chains? Probably.

If I can make free money - sign me up!

Will I still airdrop farm them? Hell yeah, duh?!

Will I store there a significant amount of money? Hell naw, sometimes I’m withdrawing from them faster to my CEX and holding it there cause I trust Kraken more.

That said, I’m looking excited for zkrollups after 4844 upgrade and just looking forward to a more mature ecosystem of Ethereum where scalability is solved thru L2s without compromising the security and decentralization of the settlement layer. Also, we badly new a way better wallet and for front ends to be a nicer experience and at least handle the capacity of the users that Ethereum is gong to attract.


Lastly, I’ll leave you with this.

Decentralization is undervalued until it doesn’t.

u/haurog looks into Solana’s decentralisation

View on Reddit →

The discussion in here has gotten a bit out of hand while I was asleep. The ETH sentiment seems to have reached a breaking point, at least for some people. Looks to me like the concentrated marketing and FUD campaigns seems to bear fruit on some. Not surprising, but still sad to see. Someone mentioned Solana nodes, so I share something I realized in a discussion I had on farcaster DMs this week:

Solana has close to 3000 nodes. We do not know how independent they are, but someone asked an interesting question a few days ago: ‘Why does solana have over 10% of its validators in Ogden (Utah)’. It was also mention here in ethfinance, but I cannot find the comment anymore.

When you check the solana decentralization statistics today. Ogden ‘only’ has 133 nodes (5%), but Wichita (Kansas) has 375 (13%). By the way, the Bar chart on the right side still shows Ogden as having 293 231 servers, yesterday it was 304 (or so). So it seems slightly delayed.

If you click on ‘staked nodes’, which are nodes that are also validating, solana has close to 2000. Do not ask me why there are more staking nodes than actual nodes in some locations. Maybe these numbers are filtered in a certain way. Maybe the numbers are just delayed and fast relocations of the nodes gives these weird results. I do not know. 123 of the staking nodes are in Ogden (6%). The bar chart to the right still has Ogden listed with 314 (16%). But now, Wichita seems to have 492 of them, which is a staggering 25% of all solana staking nodes. This in itself is not a healthy number being in one location. What I think is even worse is that it looks like hundreds of nodes have been moved from one location to another within days.

I would interpret that as a single entity has control over a large part of these nodes/validators and moves them around at a whim. It definitely is very fishy. Much decentralization…
Week #47: December 15, 2023

Livestream Recording | POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/OffMyPorch

Ethereum

u/epic_trader

$2,266.44

u/alexiskef

0.053

u/anderspatriksvensson

Current supply: 120,203,798.439280234596606888 ETH and dropping!

u/bagogel12

456 days since the merge

u/Kukai_walker

250 days since last JBM post

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Many objectives,

Assessing the perspectives,

Blockchain collectives.

Shitpost of the week: u/15kisFUD

View on Reddit →

A rumor goes around in insider circles that Michael Saylor bought a second chair

u/Papazio explains how they may have just sent someone down the rabbit hole

View on Reddit →

Tiny tid bit of random but potentially interesting information… (emphasis on the potentially)

I spoke to a pension adviser recently, while discussing my assets/plans he assumed that I’d need to sell my ETH to pay for various things. He was blown away at the prospect of permissionless borrowing and even more so at what’s possible with Alchemix.

He was neutral on crypto in general and had a basic understanding of Bitcoin and Ethereum. He asked me to explain Ethereum in a way that he might not have heard before and I said something like ‘a credibly neutral digital settlement layer’. That totally clicked with him. He said that because media/people always focus on the assets themselves, he hadn’t twigged that the asset are valuable because the networks are valuable.

It was a brief but really enjoyable chat about what the technology is and what it enables. He asked me to send some links to defi projects as examples for what can be done using Ethereum. I might have just nudged him down the rabbit hole that we’ve all been down, I hope so.

u/Mrs_Willy finally returns with TA (Terrible Analysis)

View on Reddit →

Good evening lovelies. Not logged on for over a year. Good to see some old names still active. Been completely out of the game for a year, life and all that = positive, investing in myself.. Will deffo be on over xmas holidays and in the run up, doing some Terrible Analysis and being silly as usual..

I have no idea about any fundamentals as usual, staking still means having ribeyes in the fridge to me. I can post a pic of a 28 day matured Hereford (UK local) ribeye as my proof of steak. Hope it all went well and eth is saving the planet and buterin being claimed as the second coming of christ etc.

It seems just like last week where the 180 darts memes were in full flow, and you could double your money in the time it takes to go for a piss. I think I nearly virtually got married on here, to someone whose name I can’t remember (small Corey) , but it didn’t happen cos the groom refused to accept DC investor as the vicar. If you are watching, I still love you and require regular suckles from your moobs.

I ditched my premium Trading view acct over a year ago and called up this one yesterday, untouched for a year from my now basic membership , thankfully it keeps the lines drawn, but loses oscillators and fibs.. So here it is. Our beloved Raymond. 4u ratiogang…

But what’s does this mean mrs willy? All I see is slices of pizza everywhere? Well I would urge you to look at the lower green diagonal, rays trusty long term upward support. We now have five touchpoints. I remember ranting on about the significance of xmas period for crypto, aka big movements. So why has ray tickled this every xmas bar one touchpoint since 2017.

Disclaimer : Rays erections can lose you money, but he usually gets viagra for xmas. .

https://www.tradingview.com/x/kNP8iVOi/

u/OkDragonfruit1929 shares an overlooked threat to cryptographic systems

View on Reddit →

Most of the discussion around blockchain encryption algorithm security has shifted to concerns around advances in Quantum Computing, however, I fear there is another, less sexy and therefore less popular, but far more dangerous risk lurking in the shadows.

Most encryption protocols that are no longer used weren’t “cracked” by brute forcing, but rather, a fatal flaw or new mathematical concept was discovered which rendered the necessity to brute force the encryption moot.

There are algorithms that, if the flaw had not been discovered, would otherwise take millions of years to “brute force” in the traditional sense, even with modern advances in GPU performance.

One of the most prominent historical examples of this is the encryption algorithm, RC4.

When RC4 was designed by Ron Rivest in 1987, it was considered secure against brute force attacks even with large key lengths. At the time, there were no known “fatal flaws” in the RC4 algorithm itself that would enable shortcuts to finding the encryption key.

However, over time, cryptographers discovered vulnerabilities in RC4 that completely broke the algorithm:

RC4 turned out to have latent mathematical vulnerabilities unknown when it was first introduced. When discovered and properly exploited, these flaws made brute forcing irrelevant - the keys could be recovered much more quickly by exploiting previously undiscovered flaws.

If those flaws had not been uncovered, even with the advanced computing power we have today, untreated RC4 encryption, like Keccak-256, the hashing algorithm used to secure Ethereum, would have otherwise taken millions of years to brute force.

As AI continues to advance, especially in areas like mathematics and cryptography, it raises the risk of AI systems potentially finding vulnerabilities in existing cryptographic primitives that human experts have missed.

An AI system that has been specifically trained in cryptography, number theory, abstract algebra etc… could potentially have capabilities beyond any individual human cryptanalyst. If focused on analyzing something like Keccak-256, the hashing algorithm usedto secure ethereum, it might conceivably find a mathematical weakness.

For the time being, human ingenuity and intuition still often exceeds AI systems, especially in creative realms like developing new cryptographic attack techniques. So I wouldn’t count on AI finding and exploiting flaws in encryption protocols right away within the next year or so.

Leading cryptographers do already actively think about AI safety and robustness in cryptography, so defenses are being developed with AI systems in mind. Things like quantum-resistant cryptography, algorithmic randomness testing, and cryptographic verifiability provide technical means to verify security assumptions even in the face of advanced AI.

However, due to innate biases in human researchers, we may have likely overstated the capabilities of human ingenuity compared to rapidly advancing AI systems. There are a few reasons why AI may surpass humans in cryptanalysis creativity and intuition in the not-so-distant future (perhaps 3-5 years):

The historical compromise of once-secure encryption algorithms like RC4 demonstrates the risks posed by mathematical and cryptanalytic advances. Latent flaws can lurk for years before discoveries in codebreaking render brute force attacks unnecessary. As AI systems continue rapid improvement in areas like cryptography, they may have the scale, lack of bias, and creativity needed to surface new flaws in encryption primitives required for blockchains to remain secure.

u/pa7x1 explains what we seem to have forgotten about previous cycles and what really matters in the bigger picture

View on Reddit →

I think people forget easily the despair they felt on other occasions. Can’t even count with the fingers in both hands how many times people were giving up on Ethereum because of Solana, Tezos, EOS, Cardano, Ripple (it was the second biggest coin back 2017ish), Litecoin, Polkadot, Avalanche, BSC, Nano, Algorand, Tron, Iota, and of course Bitcoin. But if you zoom out the trend is clear, the previous challengers tend to irrelevance. Ethereum keeps crawling upwards towards the biggest market cap. The local minima that it sets with respect to Bitcoin keeps going up.

And it has wiped out the floor in terms of adoption metrics that can’t be manipulated with respect to everything else. You should never pay any attention to metrics that can be pumped up at no cost. # active addresses means nothing, they are created for free and this can be automated without any human intervention. It means nothing. Don’t care either about # transactions per se as an adoption metric. These are digitized systems, machines can generate transactions at insane speeds. A transaction here does not necessarily represent economic activity or a change of goods. In the same way moving coins from my left pocket to my right pocket doesn’t constitute economic activity nor bumps GDP numbers. The way you track economic activity in the real world is through VAT (value added tax), the moment someone pays a tax to participate in an economic exchange is the moment you can be pretty damn sure whoever participated in that exchange was willing to do so because it generated value added. The network fees are this type of non-fakeable metric. This is a very real cost to whoever participated in an economic exchange. Guess what, Ethereum wipes the floor. Solana does a measly 100K USD on a good day, Ethereum does 100x that, 10M USD.

Here lies the problem, if you are going to sell a very cheap good with low profit margins. You better sell a lot of it, to make up for it in volume. Solana transactions are very cheap so it generates a lot of potential demand for transactions, but even being this cheap they cannot sell enough to make up for it in volume. Solana would need to scale by x100 from 500 tps to 50000 tps keeping current transaction fees to challenge Ethereum. Or increase transactions fees by 100x, in which case we will see how many of those low value transactions remain on the chain. Or anything in between that makes up for the 100x.

The TVL onchain, which is a bit more gameable than the fees but still can be used as a proxy, is pitiful. There are 900M USD onchain on Solana. That’s not even 1 whale. Ethereum has 30 billion USD just on the L1, and another 16 billion USD on the L2s. All these Solana activity you see on Twitter is most likely completely fake, paid out by VCs or the Solana foundation. Or completely irrelevant users with barely any skin in the game.

https://defillama.com/compare?chains=Ethereum&chains=Solana&chains=Tezos&chains=Tron&chains=Bitcoin&chains=Cardano&tvl=false&volume=false&fees=true&revenue=false&addresses=false&txs=false

Remove the noise, focus on what matters.

u/im_THIS_guy bashes on Ray – but in a valid way (and not how you might expect!)

View on Reddit →

It’s time to address the elephant in the room. It’s time to admit that The Ratio© is the worst unit of measure since Fahrenheit.

The flippening is all about ETH market cap overtaking BTC market cap. So, then, why is the Ratio metric comparing price/price instead of market cap / market cap?

The flippening target, on the Ratio, currently stands at 0.16275. Does anyone know that off the top of their head? Is it a nice round number that’s easy to communicate?

The flippening target is a moving target that changes literally every second. Moving targets are absolutely garbage in the business world.

BTC and ETH supply are constantly changing. Thus, a Ratio of 0.05 today is different from a Ratio of 0.05 last month. In fact, a Ratio that stays flat moves us further and further from a flippening, due to ETH’s shrinking supply.

Because the Ratio means different things at different times, based on changing supply, graphs of the Ratio over time are misleading. Any TA performed on those charts is wrong. There would need to be inflation adjusted Ratio charts.

Now the alternative:

A market cap / market cap ratio solves all of this.

No moving target. The flippening target is always 1.00 and always will be.

It’s an easy to remember target and easy to communicate.

It is unaffected by changes in BTC and ETH supply.

The market cap ratio currently sits at 0.33. That tells you exactly what you need to know without any further information. The price of ETH needs to triple to flip BTC. Easy.

The Ratio currently sits at 0.05365. Quick, what does ETH need to do to flip BTC? Better pull up a computer. Because this Ratio tells you literally nothing.

Please, I beg this community to abandon the Ratio. Join me in welcoming the Market Cap Ratio. Think of me as Anders Celsius, introducing a sane metric that’s easier to use and understand.

u/Ethical-trade explains the difference in marketing for industry competitors vs industry leaders

View on Reddit →

It’s a common business strategy to go after your competitors’ market shares, because their customers already know the product category, have demonstrated a need for it, and have already been willing to spend for it in the past. Cost per customer acquisition tends to be lower.

But this strategy is only viable if you’re a challenger.

The leader of a niche usually has to market not only its own product, but the entire product category as well. The leader has to grow the market itself.

Recently Coinbase has taken the approach of a leader:

- The recent announcement of a new feature for sending and receiving usdc for free through Coinbase wallet has the potential to be a game changer for adoption.

- The legal battles Coinbase is fighting really do seem to aim at making the situation better for all players, and bringing the fight to public attention through transparency not only ridicules the opponents (the SEC) but also shows alignment with a crypto core value.

- The “update the system” short videos aren’t centered around crypto users pain point specifically, they’re targeting the general population.

Coinbase bets on its (non custodial) wallet. Coinbase bets on Ethereum L2s and by having its own, Base. Coinbase clearly sees in Ethereum what we all see in it, they see the future.

u/Bob-Rossi has an ARB delegate update.

View on Reddit →

Recent ARB vote updates:

A vote to Incentivize the “Rage Trade” platform was fairly unanimously voted down, with a ‘No’ vote from myself. This result was pretty expected, as the general consensus was this would better fit within the defined STIP framework.

The Security & Audit Framework passed, moving forward work on setting up a comprehensive request for proposal process for selection of auditors & security-based service providers. I voted ‘Yes’, as I am largely in favor of having service providing decisions be handled as uniformly as possible. The Rage Trade request above is an example of this, where it’s just easier to have frameworks instead of individual requests.

ArbOS Version 11 passed. For those interested, might be best to click the link. A lot of Github PRs to read! I voted Yes, as it felt like a formality more than anything.

I voted ‘Yes’ to extend the timeline for STIP & Backfund STIP funding. In short, longer than expected KYC approval times were really shortening the window grants could payout their ARB. Felt fair to approve this, given how relatively messy the whole process was. Grants that were looking to incentive users may suffer from only being able to provide ARB during a super-short window.

The Tally vote to backpay early Arbitrum community contributors has failed. I did vote Yes for this, but it seems most the No voting came from a place of general approval, but not comfortable with the specific implementation of it. With what seems like broad support for the basic idea, I’ll be curious if a re-worked proposal will come from this.

Currently active is a vote for an experimental trail period of paying active ARB Delegates. I did vote Yes, as I generally am for paying for crypto work where it feels appropriate. There are a lot of metrics that will (hopefully) incentive active DAO participation from delegates. I do wish a larger size of delegates were being paid… I pushed for this, and it was increased from 30 to 50, but would have rather seen more to entice more / new delegates. I understand the criteria, and having a cutoff is good for a DAO this size, but it probably could have been increased further.

This all comes with the caveat that I fully understand what this vote represents - a group of people voting to pay themselves. Not sure if there is ever a good way to handle that, but it the proposer has gone through a lot of revisions from community discussion, so at a minimum it feels to at least not be something thrown together in a hasty attempt at a money grab.

u/hanniabu is following the latest from the federal reserve

View on Reddit →

https://twitter.com/KobeissiLetter/status/1735012568291332458

SUMMARY OF FED DECISION (12/13/23):

  1. Fed leaves rates unchanged for third straight meeting

  2. Fed says growth of economy “has slowed” since Q3 2023

  3. Most Fed officials see interest rate cuts in 2024

  4. Median projection shows 3 rate cuts in 2024

  5. Fed sees 4.1% unemployment by end of 2024

  6. Fed sees US GDP growth at 2.6% in 2023 and 1.4% in 2024

The market is pricing in DOUBLE the number of rate cuts in 2024 than the Fed projects.

We could see a repeat of the pre-covid run, covid dump, then bull run. I’ll go ahead and call ~$3.6k top before a rate cut dump down to about where we are now, and then the real bull run starts.

u/Revanchist1 explains the significance of the FRAX x PayPal partnership

View on Reddit →

tricky told me to repost it since it got flagged by automod. I’ll remove the links but try my best to still make sure you can find the source.

Fraxchain testnet is Live

An ETH L2 that will use frxETH as the native token as opposed ot native ETH. Due to the dual nature of their staked ETH model, the more frxETH that is not staked means increased APR for their staked ETH derivative - sfrxETH.

Also a portion of transaction fees on Fraxchain will be sent to veFXS holders as rewards.

Afterwards Frax aims to launch their frxBTC product afterwards. I’m really interested in how Frax will keep the BTC peg while still being decentralized, like they claim.

From Sam:

Launch frxBTC after Fraxchain so that Frax Finance also issues a BTC-pegged stablecoin everywhere else outside of the Bitcoin blockchain and starts accumulating monetary premium in DeFi.

In my opinion, the best part of the FRAX ecosystem is that Frax is their biggest customer. They build products that Frax will use and benefit from. Similar to Amazon and AWS, turning their biggest expense into their greatest earners.

FRAX and PayPal Collaboration.

I find it interesting to see a US company partake in the CRV wars and DeFi as a whole. It’s incredibly cool to see a partnership forming between TradFi and DeFi. PayPal slowly testing the benefits of liquidity dApps like curve, convex, and Frax.

Frax received $10million pyUSD from an associated PayPal address and a governance proposal was submitted to Frax.

FRAX Finance Governance FIP-307

Summary:

This proposal seeks to officially whitelist PayPal USD (PYUSD) into the Frax Curve Automated Market Operator (AMO). This action aims to enhance the diversity and utility of the Frax ecosystem by integrating a stablecoin linked to a major financial service provider.

Background and Motivations:

The inclusion of PYUSD in the Frax Curve AMO will broaden the range of stablecoins within our ecosystem, providing users with more options and enhancing the overall resilience of the platform.

PayPal is a globally recognized financial services provider. The integration of PYUSD can leverage this reputation, potentially attracting new users who trust PayPal’s brand and services. The demand for stablecoins continues to grow within the DeFi space. By adding PYUSD, we are meeting this demand and ensuring our platform remains competitive and relevant.

Here’s a great $PYUSD blog post I found concerning the levels of safety with regards to customer protections.

Google “JPKoning PayPal” it should be the first link. Worth the quick read

Title: There are now two types of PayPal dollars, and one is better than the other

If you listen to Congresswoman Maxine Waters, who in response to PayPal’s announcement fretted that PayPal’s crypto-based dollars would not able to “guarantee consumer protections,” you’d assume the traditional non-crypto version is the safer one. And I think that fits with most peoples’ preconceptions of crypto.

Not so, oddly enough. It’s the PayPal dollars hosted on crypto databases that are the safer of the two, if not along every dimension, at least in terms of the degree to which customers are protected by: 1) the quality of underlying assets; 2) their seniority (or ranking relative to other creditors); and 3) transparency.

[PYUSD collateral] must be recorded on two separate days each month, or 24 times per year…these attestation reports must be prepared by an independent auditor. The only way to get vetted financial information about the assets backing traditional PayPal [accounts] is to read its audited financial statements, which come out just once a year. For the rest of the twelve months, customers are left in the dark.

The fact that one type of PayPal dollar ([PYUSD]) has robust protections while the other is only haphazardly protected, and only because the first is managed with a crypto database and not a traditional database, seems incredibly arbitrary to me."

The entire blog post is worth a read and is relatively short. It’s really interesting that the stablecoin regulations have ended up creating a safer asset for customers.

u/somedaysitsdark finds hope here

View on Reddit →

This place, this garden that we have here, we grow hope in it. Hope thrives here. It’s actually difficult to find places where hope grows, and many of us don’t even notice it.

Week #46: December 8, 2023

Livestream Recording | No POAP

Upcoming Guests

The morning trinity

View on Reddit →

u/0xBOBA

Ethereum

u/usesbinkvideo

88,620 hodlers subscribed (+18)

u/FrenktheTank

$2377,80

u/TimbukNine

0.0548

u/Mirved

Number go up!

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Harvesting the fruits,

Showing them bankers the boots,

Through fire and lawsuits.

Shitpost of the week: u/Itur_ad_Astra

View on Reddit →

Just imagine. ETH flips BTC in the span of a few months.

Then Saylor comes out and announces that he slowly unloaded his position and converted it to ETH.

Million.

Dollar.

Validators.

u/superphiz shares news of a major bug on Binance Smart Chain and what it means for Ethereum

View on Reddit →

Binance Smart Chain may have entered a fork condition because of a bug introduced into bsc-geth.

https://twitter.com/superphiz/status/1730239018619613667

I’d like to draw your attention to what this COULD mean for binance chain, and why it’s important for us to learn from it. To be clear, I didn’t study the binance incident, I’m taking a general lesson from what MIGHT have happened, and definitely editorializing to hammer the point. Please don’t tell me I’m wrong about the incident, I’m applying this to our chain and I don’t care about BSC.

It looks like bsc-geth, a majority client on Binance Smart Chain could have introduced a bug that was enshrined in the chain because bsc-geth is a majority client. bsc-erigon has been unable to follow the new canonical bsc chain because it did not accept this bugged version of the bsc chain.

There are two potential corrections:

  1. Introduce the same bug into bsc-erigon and make the wrong chain the canonical chain (with minimal disruption in the chain, but maximum social disruption)

  2. Undo/Redo/Slash/Roll-back bsc chain to correct the error in the chain and move forward with a correct state, but resulting in devastating chain consequences.

This should be a HUGE red flag to Ethereans that solidifies our concerns about client majorities. If geth introduced a bug into our execution layer we’d be in the exact same predicament.

How do we prevent it? By using minority clients, EVEN if they’re more buggy and/or less performant.

Why? We have about 4.5 execution clients right now: geth, nethermind, besu, erigon, and reth (rust Ethereum). If each of those clients has ~20% - ~25% of the share, ANY one of them could fail or introduce a bug and the network will shit a brick but keep going on the right chain, essentially falling to 75% efficiency until that bug is fixed in that single client.

AS IT STANDS, geth has 84% of the execution chain market share. If geth introduces any bug into the chain, it will become the canonical chain, and the other 3.5 clients representing 16% of the chain will just be ignored.

THIS is why client diversity on both the execution AND consensus layers is so important. See https://clientdiversity.org/ for more info.

If you’re not familiar with the design principles of Ethereum, one point you should know is that in Ethereum, the spec leads the implementation, the implementation doesn’t lead the spec. This can take awhile to understand, but it essentially means that we design the chain carefully, then write code to support that spec; we don’t write production code and then try to write documentation explaining what that code does.

u/eth2353 shares concerns about Coinbase’s staking ecosystem

View on Reddit →

Coinbase announced support for partial ETH staking through the Coinbase Wallet in their blog yesterday. While this is great for enabling access to staking yield to more people, in the same blog post they openly admit they only use Geth as their execution client (not sure if they ever confirmed it like this before, but everyone kind of knew). As the largest single staking entity (running around 15% of staked ETH) this is incredibly irresponsible behavior and they should be called out for it. I believe it is at this point in time a bigger issue than Lido having about 30%.

If you have your ETH staked with Coinbase, move to a better alternative for the network (e.g. Rocket Pool / StakeWise V3 / …). Reach out to Coinbase if you’re a customer. They have had so much time to improve their operations yet chose not to so far.

I think Coinbase is doing great things for the crypto ecosystem in general, especially in the US, but this is something that just needs to be improved and there is no excuse not to. They could almost single-handedly lower Geth’s dominance to a point where it’s a non-issue. It is currently believed to be around 80-85%, take away Coinbase’s 15% and we’re almost below 66% which is the bare minimum we need to reach to be safe from supermajority bugs.

u/lawfultots has the latest from the Gemini Earn bankruptcy case

View on Reddit →

Pretty big week for the Genesis(/Gemini Earn) bankruptcy, TLDR is that the judge has approved them to move forward with a vote on the recovery plan. If the vote passes in January people will start getting their assets back.

https://www.gemini.com/earn

I haven’t been able to find any details on the % recovery users should I expect from this deal, expect that to come out in the following weeks.

One thing I’m curious about is the the composition of the assets that are owed, and the composition of the funds Genesis/DCG have on hand to fund this recovery with. Anybody know the breakdown of what assets were tied up in this bankruptcy as far as USD/stables/ETH/BTC?

I’m wondering because there are billions tied up in this bankruptcy and if they had to exchange a significant amount of cash for ETH/BTC that could be meaningful buy pressure in crypto markets. Although I think a significant chunk of what they are providing is GBTC, and I suspect a large proportion of assets owed are USD/stables so I doubt its that big of a deal.

u/Revanchist1 went camping, hence the bull run

View on Reddit →

I went hiking at Zion National Park in Utah for the last week. Landed back last night, and woke up to this beautiful pump. I should have known ETH was waiting for someone to be out in nature to pump. Here are some poorly taken pics.

You’re welcome.

First hike we did was the Angels Landing hike, which was surprisingly easy despite all the reviews saying it’s one of the harder national park hikes. The Chain section was exciting and was the most fun I’ve had hiking.

Utah is such a beautiful state and everyone was very kind to us! Will definitely try to visit again to see the other national parks there.

u/edmundedgar educates us on some Reddit scammer tactics

View on Reddit →

Crypto scammers really seem to have upped their bot game lately. Previously you’d usually have 10s of upvotes on a scam post. Now we’re routinely seeing hundreds, for example this comment posted 9 hours ago on a dead ethstaker thread has 200 upvotes.

You’d think reddit could detect stuff like this but apparently no.

[Scam comment] https://reddit.com/r/ethstaker/comments/12srco7/rocket_pool_vs_lido_vs_stakewise/kbluf57/

u/EvanVanNess shares his take on the moderation of the Ethereum subreddit. With some great follow up replies

View on Reddit →

re: “let’s just clean up r/ethereum”

It’s probably fair to say that I hold a decent bit of soft power in r/ethereum policy, as I’m the longest-tenured moderator who does any modding, plus I literally was 98%+ of all mod actions in 2018-2019 until I added twigwam. Most of the mods are inactive, even the ones who have been added recently.

As the above may suggest, I care about r/ethereum, even gave an entire EthCC speech on it once upon a time.

i’m also from the time when everyone in Ethereum was angry about r/bitcoin censorship tyranny by Theymos. Even mild mannered people you might not expect like Phil Daian. Early Ethereum was quite fervent about free speech on Reddit.

Then came the DAO fork, and I got censored a few times for things not even close to being censor-worthy (in my view) though it was an emotional time for everyone and some temp mods had been added. I wasn’t a mod then. IMHO the censorship was part of what led to ETC. We didn’t feel heard.

fundamentally r/ethereum is never going to go back to being the way it was. We don’t have the tools necessary, and the deeply technical community will never come back. Ethfinance exists, and most of y’all prefer to hang out here, rather than there. Ethereum is magnitudes of magnitudes bigger than when people first started complaining about the quality of r/ethereum declining in 2014.

u/-DarkKnight shares a lesson they learned the hard way so that you don’t have to

View on Reddit →

These few weeks when the market has been pumping is making me really sad and anxious…

Here’s my story,

I joined 2021 bull, and bought BTC, ETH, and various shitcoins.

Thankfully quite early on in late 2021 I learnt about ETH with the upcoming merge.

Sometime around 2022 I coverted all my positions to ETH, but with the bear I had already lost a considerable amount of money. I then started buying more and at its peak in mid-late 2022 I had managed to save 24 ETH - all my life savings.

Then after the FTX crash I lost more in fiat terms, and I started taking more riskier bets. I tried trading LTFs and lost a lot of ETH. This made me irrational and I started converting ETH to Alts, first sound ones such as RPL, but later as I tried making back what I lost I started taking stupid and risky bets by coverting my stack into shitcoins hoping I can try and get back what I lost.

This was it, I lost the majority of my stack here.

This was a very expensive lesson for me not to trade. I dont think I can stomach buying anything ther than ETH now. Now I’ve started to accumulate with a measly 1.6E so far but the price rise is making accumulation even difficult 😢

I hope this was a useful lesson to you all as it was for me. Wanted to warn others here not to thread the same part I did as CT and seeing others with huge profits can make you do risky things.

u/PhiMarHal warns of a potentially widespread vulnerability

View on Reddit →

Certain thirdweb contracts deployed before the 20th of November were vulnerable:

https://blog.thirdweb.com/security-vulnerability/

thirdweb is a framework for low-code smart contract deployments. I’m not sure how many projects use them, but they’re a name that comes up often in the dev spheres. I’d guess the less technical projects are more likely to be users here, NFTs moreso than DeFi.

Building code abstractions in web3 is no small task. The more flexible you make your framework, the more attack vectors. Catastrophic bugs cannot be patched on a whim like in web2.

edit: we might get an idea of the vuln in question, even without being programmers, by checking the common dependencies in the affected contract list. I’d guess it’s tied to the ERC2771 upgradeable import, which has something to do with metatransactions. Maybe something allowing an exploiter to pose as a trusted relayer? I would love to understand enough to know.

u/im_THIS_guy reflects on previous ratio struggles and prepares us for a rough ride ahead but eventual payoff wwhile, u/696_eth focuses more on fundamentals

View on Reddit →

u/im_THIS_guy:

If you think this is bad, the first time BTC hit $44k, back in early 2021, the price of ETH was just $1770.

BTC had already more than doubled its prior ATH, while ETH was barely above its prior ATH.

This sub was losing its shit. ETH was dead. Then, things got worse. 6 more weeks of ratio bleed. The price of ETH dropped 10%! while BTC kept pumping, up 17%. How incredibly demoralizing.

Then something interesting happened. Over the next 6 weeks, BTC was flat and ETH pumped 365%! Oh my.

This market will wear you down. You’ll want to give up and switch from ETH to something that’s pumping. That’s when the rocket takes off. I guarantee you plenty of people switched from ETH to BTC right before the ratio popped from 0.3 to 0.8 that spring of 2021.


View on Reddit →

u/696_eth:

Honestly if someone has held both then they should understand how more valuable and practical ETH is and the ratio doesn’t even phase them much probably altho I’m the one who converted majority of my BTC stack at around 0.067, so yes I’m underwater on that decision, for now but not forever.

No matter the ratio my ethereum printrr stil goes brrrr.

No matter the ratio I can go ahead and get loans within minutes and get liquidity for IRL without selling my assets and triggering a tax nightmare.

No matter the ratio there are 10000, hell probably even way more, different projects and amazing developments that are going in the ecosystem that I can go and explore.

No matter the ratio the community has so many interesting topics to talk about between themselves.

No matter the ratio there are way more opportunities that exist and show up for me in this ecosystem.

No matter the ratio I can get other assets such as NFTs, providing me with an alternative leveraged investment on my position.

No matter the ratio I can randomly get hundreds, if not thousands, of $$$ airdropped to me.

No matter the ratio I can go ahead and build on top of my assets that live on Ethereum.

No matter the ratio Ethereum captures my attention more than Bitcoin ever has.

u/MinimalGravitas shares their experience with voting in the latest Optimism Retroactive Public Goods Funding round and u/nixorokish shares who she voted for

View on Reddit →

u/MinimalGravitas:

Finished with my Optimism RetroPGF ballot, finally! Allocated to a little under 300 projects (out of about 650 that passed through the initial filtering).

Honestly, this was a ludicrous amount of work, and I’m very glad we had such a long time to do it (4 weeks). The process of assesing and evaluating has probably consumed about 40 hours (rather than the 8 estimated at the beginning, lol).

Projects need to get onto 17 ballots to qualify for anything, then will they recieve the median amount from those ballots. To see which projects have got how many ballots so far check out:

https://www.growthepie.xyz/optimism-retropgf-3

It’s been quite sad to see the amount that some projects have felt forced to shill themselves to badgeholders, and also that it seems to have worked which will encourage more of it in the future. Just one example that I saw was Sonne, a fork of Compound, whose token holders clearly brigaded the OP Discord and now has reached quorum. How is a DeFi lending platform, with a token, a ‘Public Good’? I have no idea, but they are far from the only example.

Lefteris has been trying to point out that some of the projects which most quickly reached 17 ballots are things which really don’t need an extra injection of funds due to huge amounts of VC funding.

An example of this that I find particularly egrigious would be Synthetix, who not only received $20M in VC funding this year, but previously received 9M OP… of which they then used about 2M to give themselves a huge amount of governance power…

https://gov.optimism.io/t/synthetix-ambassadors-phase-0-delegation-2m-op-tokens/3726

… and then used that voting power to nominate their ambassador as a RetroPGF badgeholder:

https://snapshot.org/#/opcollective.eth/proposal/0x22d4c3ab56832de58c1774d1a0aeb61ba6dde8b16c0f8382f85d8935f3ee1f11

Synthetix are obviously huge in the Optimism ecosystem, and generate a lot of value… but I wouldn’t suggest they are the most worthy recipients of ‘public goods’ funding.

Anyway, governance is never perfect, Moloch is always present, and I’m sure we can learn and iterate over time. For now at least, I’ve done my allocations and so should have a little more time for commenting here again!


View on Reddit →

u/nixorokish:

Optimism RPGF round ends tomorrow - I have to cast my ballot - anyone want to tell me if I’m missing anything super important?

Focusing on things that don’t necessarily have an influencer for brand awareness - love Carl’s “Popular NPM packages” list, added a lot of those. And of course, staking tooling, infra, etc cuz Optimism doesn’t exist without Ethereum’s validators

Discriminating against things that have been well-known in the ecosystem for years but I can’t find significant progress that they’ve made in the past couple years… I find that some projects coast on reputation

Also added in some high-producing educators and data analytics providers

sidenote: I can’t vote for EthStaker cuz bias

special shoutout to u/minimalgravitas for the staking list!

Week #45: December 1, 2023

Livestream Recording | POAP

Upcoming Guests

Announcements

The morning trinity

View on Reddit →

u/5quat

Ethereum

u/usesbinkvideo

88,557 hodlers subscribed (+5)

u/FrenktheTank

$2092.06

u/TimbukNine

0.05432

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

A tale incomplete,

Where banks can not compete,

No one hits delete.

Shitpost of the week: u/seat-is-occupied

View on Reddit →

altcoin nostalgia series, part 01: Oyster Pearl (PRL)

In this series, I want to take you on a trip through some of the most interesting shitcoins from the past.

Oyster Pearl wanted to revolutionize online advertising and give website owners an alternative and private way to monetize their content. The idea was that website owners could insert one line of code, and visitors would contribute their spare computing power and storage space to support the protocol. In return, they would earn PRL tokens. The data would be stored on the iota tangle. There was also a second coin called Shell (SHL).

PRL was extremely hyped in 2017. Right before the binance listing, one of the team members did some insider trading. The anonymous founder bruno block wasn’t cool with that and rug pulled the whole project, minting and dumping more PRL coins.

After that, some team members founded Opacity (OPQ) and airdropped tokens to PRL holders, the project also died. Bruno founded a new scammy project called Akoya (AKYE) and airdropped tokens as well. Of course it died. There were some mental health issues involved ($5,000 banana). Apparently, he was caught on a yacht with safes full of gold bars. Amir Bruno Elmaani got 4 years in prison for tax evasion.

u/PhiMarHal shares a deep dive on the Kyber exploit

View on Reddit →

Deep dive by Doug Colkitt on the Kyber exploit: https://twitter.com/0xdoug/status/1727613541115429314

Careful manipulation to make the pool believe it has more liquidity than it does, then extract real funds through this phantom liquidity.

I don’t want to kick anyone while they’re down, the Kyber guys are good devs working hard and let’s hope for a good resolution. FWIW the hacker has signaled through blockchain messages he would be willing to talk today. https://etherscan.io/tx/0x7a8912583520304ce2364fa165dafe94461a91ab2dcf45dab942e296594dc40a

But, musing about security in the abstract… I have to say, I felt for a long while the engineering in Kyber seemed overcomplicated. I once got stuck in one of their farms, and without the team solving it for me, I would have been screwed. This is different from Uniswap or Aave where you can figure out the contracts on your own as an intermediate user.

Complex protocols have greater attack surface.

Sanity checks like 1-block delays on TVL sensitive actions seem like low hanging fruits to avoid catastrophic exploits. Kills flashloan abuse, for starters.

I get that those are tough calls, how do you implement such edge case checks without hurting genuine composability? But surely there must be some threshold of liquidity past which we have reasonable confidence no legitimate use would occur, because of slippage.

but then again, the concentrated liquidity design implies all of the liquidity in one tick can very well be a legitimate swap…

Basic x * y = k as per Uniswap v2 may have been capital inefficient, yet the simplicity was elegant in more ways than one.

I’m glad I don’t work on AMMs!

u/eth2353 shares Stakewise’s upcoming upgrade

View on Reddit →

Just wanted to let the good folks in here know StakeWise’s V3 launch is just around the corner. The V2-V3 contract migration proposal is live on their governance forum and the snapshot vote has reached quorum with 100% approval for now.

Their V3 architecture brings some big advantages, e.g. solo stakers can create their own (private if they like) vault and mint an LST against it. If you want to get a feel for what it will look like, I suggest you browse through the testnet vaults at https://testnet.stakewise.io/ .

It took more than a year since their V3 announcement to get to this stage and I’m proud to have contributed in a small way myself as well by adding remote signer support to their operator service.

Even though this post may feel like it, I am not in any way affiliated with StakeWise, I just appreciate all of the work that went into this and I haven’t seen this be discussed in recent days. This gives stakers who can’t stake at home a lot more choice and will hopefully help keep Lido’s power in check.

u/stablecoin answers some questions about Chainlink’s CCIP

View on Reddit →

  1. Does this potentially solve liquidity fragmentation?

Basically it should unlock all possible liquidity on all chains if it integrates CCIP into the protocol functions, Synthetix (SNX) is doing just that for helping to launch sUSD liquidity products on top of Base and Arbitrum I believe. Like many things, protocols need to be built from the ground up or upgraded to support it.

  1. Does this effectively move the security from ethereum to chainlink? or would it be better to say it moves security from a lot of shitty bridges to chainlink which is arguably an improvement.

It more or less just replaces bridges and the biggest security improvement is you can remove honeypots that are the bridge contracts. No longer do you need to store all the assets into one place, with one potential vulnerability always looming. If you attack the Chainlink feeds/CCIP features it is going to be more like to having to attack all the ETH nodes to get your unsanctioned blockchain instruction in. Chainlink node distribution will help secure bridging as long as the feeds are also proven to be secure.

u/waqwaqattack shares the latest Lido fuckery

View on Reddit →

Lido are up to fuckery again.

In this twitter post https://x.com/nero_eth/status/1728680630773575956, Nero shows how a lido node operator, p2p.org (run by a lido cofounder), has announced it will start waiting to produce blocks. There’s a function called ‘getheader’ that the block proposer is supposed to call at time = 0, but node operators have until time = 4 seconds to help home operators who might have latency issues.

By waiting to call that function, they will get up to 4 seconds more of mev into their blocks.

The impact this will have is they’ll further centralise the ethereum network to orgs who have the ability to still produce blocks while waiting the longest amount of time - home operators or decentralised services would not be able to wait so long because they’re more likely to fail in block production. People will go to services that give them the best yield in LSTs without thinking about the potential impact on the ethereum network.

Lido literally have a golden goose in their possession, but they’re killing it. It’s extremely shortsighted, and it might have horrendous impacts for the rest of us stakers.

Please speak out against this!

u/bagogel12 has an update from the KyberSwap hack

View on Reddit →

KyberSwap fell victim to a sophisticated exploit amounting to approximately $50 million on November 23, as reported by rekt.news (https://rekt.news/kyberswap-rekt/) .

This incident involved an in-depth comprehension of the underlying code to exploit it (u/PhiMarHal reported already the technical details). The exploiter displayed a peculiar level of psychopathic behavior, leaving on-chain messages throughout the exploit to explain their actions. The final message they left was:

“Dear Kyberswap Developers, Employees, DAO members and LPs,
Negotiations will start in a few hours when I am fully rested.
Thank you.”

KyberSwap chose to extend a 10% bounty to the hacker, with 90% intended for restitution.

What makes this incident even more disturbing is the fact that during the hack, a MEV bot operator was able to capture $5.7 M from Kyber by frontrunning the exploiter.

The deal has now been struck for the return of 90%, with the remaining 10% awarded to the frontrun bot operator (tweet). Morale does not seem to exist in the crypto landscape.

The situation draws parallels to the Euler hack, evoking a sense of déjà vu for those who have experienced similar events. Notably, the exploiter received a message from the origninal Euler Finance Exploiter wallet, shilling some meme coin (I don’t link it).

In the midst of difficult circumstances, it is important not to lose hope and to expect the best possible outcome. Christmas is soon. Speaking from the experiance as a victim of the Euler hack myself, navigating the aftermath won’t be easy.

I hope those among our community who have been impacted by the Ethfinancier incident can navigate through their losses with resilience (comments in the daily). Resilience and risk management remains a key virtue in the crypto realm. Remember, don’t put all your eggs or ETH in one defi protocol.

u/stablecoin shares news of EthereumGPT and u/johnnydappeth suggests one for ethfinance

View on Reddit →

u/stablecoin:

Someone built an Ethereum trained ChatGPT for developers and stakers. Looks like you have to have an OpenAI subscription account to use it though, and they are currently paused from new signups.

I built Ethereum GPT, which was trained with the Consensus layer API specifications. If you’re a builder looking to access specific data or just have a question about staking, try my fren:

https://chat.openai.com/g/g-T3pQLJpwi-ethereum-gpt

X link: https://x.com/Butta_eth/status/1729088377700671798


View on Reddit →

u/johnnydappeth:

u/stablecoin‘s post today got me thinking about developing an EthFinanceGPT that can answer newcomers’ questions, respond to FAQs, dispel FUDs, and overall encapsulate the spirit of EthFinance to provide unbiased guidance. For those of you who don’t know, GPTs are specialized tools capable of retrieving facts from an external knowledge base. This allows LLMs to utilize that information to generate answers. They can also follow instructions provided by the creator and have API access, as well as internet access, including an image generation tool.

We have a plethora of content that can serve as the knowledge base, such as the Daily Doots, the EVMavericks Discord, ETF forums, blog posts by prominent users, educational content, discussions on decentralization, tokenomics, technical analysis, Twitter posts, and even memes. A curated knowledge base can be provided to a community-funded GPT, and perhaps even a Reddit bot could be created to interact with this GPT through posts.

Unfortunately, I only have time to read through the dailies, so I won’t be able to spearhead this effort. However, if someone else is interested in pursuing this, please feel free to do so.

u/ajmonkfish brings very sad news from a long time contributor and later explains how it happened

View on Reddit →

Welp guys, it’s been fun, looks like my private key was compromised and my wallet was drained. No idea how my key got compromised.

About 7 hours ago (fast asleep at this time) some crook opened up my wallet, drained my aave position and absconded with about 15 eth and 600 dollars worth of shitcoins.

That’s all I had left.

https://etherscan.io/address/0x0d06340e5424EA2DE37E5A1d2f410f6A0b40D58a

RIP me.


View on Reddit →

Thank you all very much for your kind words and advice.

In case you missed my earlier post, my wallet got drained by a nasty man and unfortunately I had 15 eth in an aave position and about 800 dollars of shitcoins I had recently fomoed into.

Gone, never to be seen again.

I have a separate PC for crypto stuff and I thought this was enough to keep me safe.

Wrong. So very wrong.

I clicked on a dodgy “update chrome” link on my work laptop yesterday, not realizing that I had sync turned on in chrome, meaning metamask (and my seed phrase vault) were on there.

That’s the only way I can think this has happened.

Please, use me as a cautionary tale and be more careful with your crypto.

Here’s the address that got drained in the wee hours of this morning and when I was getting my kids ready for school/nursery.

https://etherscan.io/address/0x0d06340e5424ea2de37e5a1d2f410f6a0b40d58a

Feel free to do some sleuthing, it’s beyond me I’m afraid.

Peace.

u/timmerwb reminds us how tried and tested cold wallet seed phrases are for security and u/theethmeister shares their own diversification strategy for secure storage

View on Reddit →

u/timmerwb:

At risk of tediously adding to the security discussion, risk is always an interesting subject. YMMV but in the several years I’ve been involved in crypto, IIRC, among all the countless losses, hacks, exploits, compromises and thefts that have occurred, of between 4 and 9 $figures in value, (and some of which have sadly involved members of our community), I don’t believe a single one has involved the loss, discovery or theft of a physical passphrase, including a physical hardware wallet. It’s worth adding that during the Ledger leak, which included numerous active names and address (lol - it’s still hard to believe), there was mucho concern about wrench attacks. Again, AFAIK, not a single compromise occurred directly because of that leak, and not a single physical theft was attempted (although clearly email addresses got phished to death after that).

As such, the risk of loss is overwhelmingly associated with getting phished, or (usually mistakenly) storing credentials, including CEX accounts, on hot computers. For most people, best practice and good basic digital hygiene will ensure your crypto is safe.

Remember that security is an on-going process. If you create a new wallet, generating the seed or passwords is not the first step. You should already know what the wallet will be used for, the associated risks, how you are going to secure it and how you will maintain that security. Don’t be tempted to “jot down” the seed temporarily etc. Give yourself time to learn and understand the process before committing funds. Stay safe out there.


View on Reddit →

u/theethmeister:

To add to the discussion below about crypto security, my personal approach is to have about 20% in CEX and the rest split up among several (hardware) wallets, so if any single wallet gets compromised I can somewhat triangulate the cause of the hack. If you use Trezor you can create multiple wallets on one device using the passphrase function which in concept should protect you if your main seed phrase gets leaked or discovered.

If you do need to use Metamask you can create a separate wallet solely for your Trezor and don’t have to store your seeds in an online vault. This should maintain the security of the hardware wallet while also allowing interoperability with dapps. Unfortunately Metamask seems to be the most compatible with dapps but because it’s the most popular is a highly visible target for hackers/viruses.

Lastly, as to my CEX allocation I know “not your keys, not your coins” but having a sizeable amount gives me a higher transaction and withdrawal limit. Also if I need to liquidate assets quickly I can do so on my phone without having to tinker with my Trezor. Knocks on wood I haven’t had to re-verify my account and perform KYC for the past 4 years. Always make sure to whitelist your withdrawal addresses.

u/ro-_-b is bullish on Ethereum’s soul

View on Reddit →

A cryptocurrency is more than just an economic platform. Even though it has properties as some commodities it’s not just a commodity. Ideally there is a purpose, values and culture.

Beside the protocol we need the social consensus. People that keep up the values such as decentralization. In that sense it’s like a religion. People need to believe in it. And in order for people to believe certain properties need to be satisfied. And when you believe in something you naturally start to evangelize.

Whatever Vitalik has said in public was genuine and well thought through. There are so many people that speak for Ethereum and hold up its values. Whenever somebody of these does something harmful the community holds them accountable.

In my view the same standards are not met by other cryptocurrencies, definitely not by Soylano.

Ethereum has a soul. It’s more than just an ultrasound decentralized smart contract platform.

And for these reasons it has cultural relevance. A tokenized meme very often derives its value from being on Ethereum. And everyone who creates digital art wants to have it issued on the most pristine platform.

I’m certainly among the worst people to keep up these values. But I do rest assured because I know that there are many other people better than me precisely doing that and they’re doing it very well.

So all this cultural relevance, this community ethos and these people that have conviction and believe in Ethereum make me bullish long term. Because in the end precisely these values is all we need to succeed. Roar 🦁!

u/DegenKoloToure updates on the Kyber exploit and u/_WebOfTrust shares the latest message>

View on Reddit →

u/DegenKoloToure:

Kyber exploiter:

"Dear Kyberswap Executives, Employees, Token Holders and LPs,

I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team. That’s ok, I don’t mind.

I have prepared a statement concerning our (potential) treaty. I plan to release it on Nov. 30 at Noon UTC, sharp.

Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil. You need only say the word.

If not, we proceed as planned on Nov. 30.

Thank you."

https://etherscan.io/tx/0x5c27d8e9248608f36b028a945f3d6ff31244ab45eb89e1d1a631f608a36454a1


View on Reddit →](https://reddit.com/r/ethfinance/comments/187bfcu/comment/kbe94lv/)

u/_WebOfTrust:

Okey…this is a must read. New message from Kyber exploiter, their demands are not like others we have seen and interested to see how the story developed.

Between Hacker and Kyber, users funds are at stake.

https://twitter.com/TheDEFIac/status/1730196414154608785

Edit - c +v below

To ALL relevant and/or interested parties,

I thank you for your attention and patience during this uncertain time for Kyber (the protocol/DAO) as well as Kyber (the company). Below I have delineated a treaty for us to agree to.

My demands are as follows:

Once my demands have been met, I will provide the following:

This is my best offer. This is my only offer. I require my demands to be met by December 10, otherwise, the treaty falls through.

Additionally, should I be contacted by agents from any of the 206 sovereignties, concerning the trades I placed on Kyber, the treaty falls through. In this case, rebates will total to exactly 0.

Kyber is one of the original and longest-running DeFi protocols. No one wants to see it go under.

To assist with this transition of leadership, I may be contacted on telegram: @Kyber_Director

Thank you.

Week #44: November 24, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/LeagueGreedy

Ethereum

u/wordlemcgee

$2070.65

u/usesbinkvideo

88,530 hodlers subscribed (+5)

u/FrenktheTank

0.0554

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Flash loan imbiber,

Liquidity in Kyber,

Oracle briber.

Shitpost of the week: u/Vandelay101

View on Reddit →

Just finished a nice run through the woods. It just occurred to me that I am front-running the pounds I am about to put on tomorrow, the next day, and the day after that. I’m also mulling over my turkey fulfillment thesis and adjusting my risk appetite accordingly.

u/eetherway asks a great question about how we feel about different UXs

View on Reddit →

To all the experienced blockchain users: As we witness improvements in user experience, particularly in wallet interfaces, do you feel apprehensive when using wallets or dapps that offer a more streamlined, Web2-like account creation and management process?

I’ve noticed that some users, especially in the Influence community, are apprehensive about creating new accounts or using accounts that are set up with an email.

Both Argent and Braavos, the current wallets on StarkNet, that are users interact with, utilize account abstraction, enabling and introducing features that I believe are crucial for bringing the next billion users to blockchain. Yet, this ease of use can sometimes be met with skepticism from existing users. I’m keen to hear your perspectives on this.

u/Samueth_Peapks is ready to see some non-speculative adoption

View on Reddit →

Should we be surprised at the speed with which the ecosystem has encountered a new wave of toxic tribal bickering? No, because compared to the end of the last cycle nothing has materially changed. There has been scaling progress but it is not finished by any means, and e.g. UX is as trash as ever etc.

ETFs are said to be around the corner, but the type of demand they represent is the same kind we are familiar with. Speculative, cyclical demand. Only now it’s in a tax free wrapper! Don’t get me wrong, the level of incremental increase in demand could be substantial, but i contend it will not change the dynamics of the crypto ecosystem. So if nothing has changed, we should not expect the nature of the next cycle to have changed. One slight difference is that at this time, the remaining market participants are certainly feeling less flush than they were in the heady days of 2021. Hence the rabid zero sum thinking we see amongst us (well, mainly twitter). At this point we all know the drill, some new and useless protocol or project will make 1000x returns for the few people who rolled the dice early, and many more will volunteer themselves as exit liquidity.

Crypto has absolutely nailed the speculative use case; we do not need, and personally I am not interested in, any more. Games, quests, ponzis, whatever it is, it is all ultimately a waste of time, representing only a desperate grab for each others capital. What I think we crave, and what I am sitting here quietly waiting for, is utility. Yes, this is a 2017 era discussion, but nothing has changed since then. Large, non-speculative, non cyclical, fucking boring. Something that you would do anyway, even in a bear market, or if fees have increased a bit. Something that does not require a funny name for people to use. Something that companies or people will use due to economic gravity rather than hoping number goes up.

Are these use cases possible? I believe so, so I guess I was incorrect to say that I am done with speculation. I’m still hopeful that blockchains can be used for e.g. supply chains, or something else like that. Why? because with something like this, crypto potentially has the ability to translate economies of scale away from large corporations, and to empower small businesses. Fewer bosses - ace! Not zero sum - ace!

Not all problems need to be solved to open up utility. E.g. a business use case will rely less on UX than a consumer use case. The type of demand I am talking about probably only cares about a few things (assuming the chain being used has the requisite functionality), and secure block space is premier amongst them. Ethereum represents the best potential holistic solution to all of these problems, probably via some L2 solution, primarily because of the strength of its network. Network effects are powerful, if they were not then twitter would be 6 feet under by now. These reasons are why I have read the daily most days since early 2021. I am interested in client diversity, network health etc. Things of that nature are the means by which we create fertile soil for the future. And when the time comes we’ll be glad that infrastructure has outpaced the current level of demand in the system.

u/superphiz shares the “Stake from Home” Gitcoin collection for those looking to donate to public goods which keep the beacon chain decentralised

View on Reddit →

Gitcoin invited me to develop a bundle for Grants Round 19, and I developed the Stake from Home bundle. These 14 projects make contributions that empower individuals to run nodes and stake from home, and I strongly urge you to make a donation on gitcoin to the bundle. I’m familiar with all of the projects enough to vouch for them (on varying levels), and I’m excited for each of them to succeed.

If you don’t know how gitcoin funding works: It’s based on a concept called “quadratic funding”, the simple premise is that the number of individual donors guides matched funds more than the amount anyone gives. So 100 people who give $1 each gets matched A LOT more than 1 person who gives $100. The moral of the story is that many hands make light work, so please go donate.

u/haurog shares how his opinion on Lido has changed over time

View on Reddit →

Yes, economic incentives generally favours centralisation and monopols. That is the way things go. Societies try (or not) to find rules and regulations to fight against this general flaw in most modern economic systems. There are a lot of examples where societies failed to do so and have now very few monopolistic suppliers they cannot really break up anymore. There are also examples were societies managed to stop monopolistic set-ups in their track and these then are generally better off compared to societies which did not manage to do that in these specific industrial sectors.

The case with Lido, I did not really have an issue with them for a long time. My simple approach was “If they can break Ethereum it was meant to be broken”. I did not judge them to be a bad actor in the space.

Nowadays I see them as a pretty ruthless actor in the space strategically gobbling up key figures and projects that make them dependent on Lido and do their bidding. At the same time they are spreading false narratives about why they are destined to win. Like “liquidity begets liquity” which automatically leads to them winning. What actually happens is that in the background they have actors (Karpatkey anyone?) making sure that steth dominance is not really threatened. They preach open and free markets, but actually do backroom deals to achieve their goal.

They also spread the narrative of being the wall against CEX staking and funnily mention a time where CEX staking had more inflow than them as the reason for it. Actually, this was as far as I remember a just a 2 weeks period in spring of 2022 where this was actually true. Again they are gaslighting the community.

They made so much money in the last 3 years, which is understandable because it is a good product. But now they can simply direct their faucet at anyone they want and more or less buy them, or a project. This is especially dangerous during the bear market where everyone is looking for funding.

Same with the current proposal, in the first sentence the state decentralisation is the goal, but the rest of the proposal is a direct attack on the current relatively okayishly decentralised staker landscape. They love decentralisation as long as it is under their control…

Do I think Lido should be slashed rather today than tomorrow? No, definitely not, but I see them as a threat for the Ethereum ecosystem as they do not even try to hide behind a nice facade anymore.

u/austonst sums up the last day of DevConnect

View on Reddit →

Devconnect Day 9 (Yesterday)

The last day of Devconnect! The schedule does technically extend through Sunday, but that’s just the final day of the coworking space and the ETHGlobal hackathon. I had considered doing a little bit of sightseeing in the morning, but it was raining decently hard and I would have been pretty pressured for time, so I decided against it. Instead I just went straight to the day’s main event: censorship.wtf .

As you might expect, censorship.wtf was all about censorship: what are the problems and potential solutions, particularly as it pertains to Ethereum of course. The day was literally packed: between 11:00 and ~18:00 there were non-stop 20-minute talks scheduled. Not a single break, you just had to pick which talk excited you the least so you could cut out some time for a bathroom break and snacks. Using acronym “censorship resistance”=CR The content was mostly pretty good:

I guess I’ll do a final recap tomorrow. Flying out first thing in the morning back to the other side of the planet. Going to be a long trip.

u/Fast_Contract explains why they’re running RocketPool nodes

View on Reddit →

I think block/mev rewards will be crazy when the next bull starts. If these etfs really are approved, and tradfi money starts flowing in, I want to maximize my chances of winning that lottery. Solo staking I had a 96% chance of getting a proposal every 2 months. Now I have that same chance every 2 weeks. Sure joining the smoothing pool is probably safer, but holding eth as is, is already a lottery ticket to me so why not really play it.

I also re-evaluated the reason I’m in eth, and that’s decentralization. I think rocketpool is an essential key to that. By dividing my stake up into as many 8eth pools as I can, I’m allowing a few hundred eth from other people to also be staked. Looking at reth mints, the demand is definitely there for reth, and with the houston upgrade, I think the demand for node operators will grow. I kinda hate Lido. I think they’re everything that’s bad about crypto and capitalism. Un-restrained growth perhaps at the expense of the entire ecosystem. Rocketpool is the opposite of that and I think more people should support it.

The “stake eth on behalf” thing in Houston is particularly interesting. I can see DAOs finally putting their eth treasuries to work. Also the rpl rewards rework is interesting, because it will hopefully reward/keep those at lower collateral rates above that 10% line.

51% of rpl is staked. The only real sell pressure is from node operators getting out. I thought that cascade would happen weeks ago, but everyone seems content to keep their stake. Even on rewards day it seems like most rpl just gets restaked right back into the system…

If I’m interpreting things correctly, most of the remaining un-staked RPL is rpl v1. RPL v1 has basically no liquidity, no movement. These people are just sitting on their rpl, they haven’t even converted to v2? That kinda removes a lot more supply from the market in my mind…

u/Itur_ad_Astra thinks we’re stepping into the next era of crypto.

View on Reddit →

Fellow Ethfinanciers…

It’s weird that the market did not move today. I’d expect one last dump as a farewell. Oh well, there’s plenty of time for that later. It’s strange, because I feel what we witnessed today, was the end of the Wild West of cryptocurrency. The Napster Era is over, and soon, with the approval of the ETFs, the banking products, and the inflow of crypto “users”, the iPod era will dawn. Nicely packaged, user friendly crypto products, ranging from tokenized stocks (registered and KYC’d strictly, of course) to JPMorgan limited edition Apple^^TM NFTs, barely holding any of the values that make crypto what it is.

The markets will soon start going up, much higher and faster than most anticipate, and I truly believe that Ethereum will be one of the winners. Droves of tourists will soon follow. Most of these people won’t have the slightest idea what “keys” are, how you swap on DExes, or even what a smart contract does (It’s probably something with AI in it).

Those of you that believe in something more than making money, remember why crypto exists. There are some values that are a net good for the world and need to live. The more of those carry over to TradFi, the better we’ll all be.

I might be neither a crypto OG or an Ethereum veteran, but it has been an honor going through this bear with you.

Onwards!

u/RickandMowgli shares a collection of thoughts on regulation.

View on Reddit →

Just a rambling vibes take here. 1) CZ has always been a bad actor in crypto. He proposed rolling back the Bitcoin blockchain (doesn’t matter your thoughts on btc, this is a huge red flag of not being decentralization aligned). BNB chain is a centralized scam vessel. He’s clearly been commingling funds and pumping bnb, been calling it forever and you don’t need a lawsuit discovery to see it.

So overall this is a good day for crypto. SBF and CZ characters are hugely damaging to the space. Frankly the CEX world is the 1 place where SEC SHOULD be active and cracking down to make sure FTX like theft of user funds never happens again.

They are also attacking kraken and coinbase for “unregistered securities” which is complete nonsense.

Let’s remember what these securities laws are meant to do. They’re meant to provide transparency to protect investors. Instead we’ve gotten onerous requirements not at all designed for the modern characteristics of crypto entities that has massively stifled innovation and investment especially in the US.

Everyone remembers ICOs negatively because they were so boom bust but actually tons of innovation came out of them and it democratized access to super early stage investing to the crypto community. Now after the harsh and chaotic securities enforcements pretty much only VCs are getting super early stage tokens. It’s already a reproduction of the private company market where VC has locked out the huge gains from early stage companies from retail investors.

The best world would be where the SEC protects us from SBF CEX and only comes down on true fraud (bitconnect, luna, etc) in the decentralized space. while allowing more experimental types of daos, etc to exist (especially when they are inherently transparent like many already are).

u/djlywtf shares their experience at DevConnect

View on Reddit →

devconnect istanbul is my first crypto related summit, and due to my location it’s also my first experience meeting with people in crypto community irl

devconnect was huge, filled with people of different backgrounds and interests, startups and independent developers that share their knowledge and vision to different problems. i met many interesting people, such as nice people from zksync (hello jack hamer, albiona, alex gluchowski, sasha vlasov, and many others whose name i didn’t ask), cool independent infrastructure builders that i’d rather keep anonymous, ilia polosukhin from near, guys from EF (by the way u/domotheus we didn’t even shake hands wtf) and rollups teams. i listened speech of many popular founders and devs - vitalik, kartik talwar, sandy peng, jordi baylina, etc etc

it was so interesting to listen to all these speeches despite the fact that i already knew a lot of what they were about :P it’s all about people that have fire in their eyes and are ready to share all their knowledge to everyone at any cost

i also participated in my first hackathon. unfortunately i got sick in the first day and had to code in the hotel, so i missed many opportunities such as finding help from sponsors (yo zksync your compiler is terrible fix it pls) and generally being inside of this unique work atmosphere, but i still made something. in fact i spent 20 hours straight on coding at my first hackathon ever solo without any sleep while being sick af so i think the fact that i at least impressed judges is already somewhat achievement :)

and all this is in the huge beautiful city of istanbul that charges you with emotions every day and hour. i walked like 25k+ steps there every day before devconnect started and i wasn’t even tired. people there are always ready to help you even when you don’t ask and don’t ask anything in exchange. prices in locals’ shops are always “negotiable” if you know your own worth xD public transport is really great with almost perfect coverage, istanbulkart is a great system that helps you to avoid so much brainfuck while travelling

all this showed me how boiling and energetic 24/7 the life in the ethereum community and made me even more confident in that we do everything right. that’s why i’m bullish!

u/CaptainOfTheGate describes more casual ways of getting privacy on Ethereum

View on Reddit →

“Casual” privacy apps

Did you know that there are Ethereum apps that can give you a basic level of anonymity, without having to use a dedicated privacy app? Say you just want to keep people from knowing all your holdings by knowing your ENS name, these would work good. Not so good if you were doing something illegal, as a simple court order could reveal the connection between accounts.

The major apps in this category, I believe, are the StarkEx single-app rollups. You can deposit from one address and withdraw from another. Only the StarkEx operator can see that it’s the same person. For example, see Privacy on rhino.fi for their explanation of how it works.

There may well be other apps in this category as well (let us know if you’re aware of others). For example, I’ve read that ParaSwap allows different deposit and withdrawal addresses, though I don’t know if it’s equivalent to the StarkEx rollups in this regard.

You can see all the StarkEx rullups on L2Beat. Use Select stack to filter for just the StarkEx rollups. You can then click through to the individual projects to see how much TVL they have for the token you’re planning to anonymize, e.g. USDC or ETH (I believe dYdX has the most stablecoins and Sorare has the most ether).

Of course, you could use a regular privacy protocol instead. Tornado is sanctioned for US users, however, and others could be in the future, or maybe you just don’t want to appear suspicious by using a privacy protocol. I haven’t checked, but I assume Tornado still has the most volume. Some other projects I’ve heard about are: Railgun (a lot of mentions here recently), Aztec (highly regarded, but will be deprecated next year as they work on their programmable privacy rollup), Nocturne (new), Firn (sounds terrific but new), and Houdini Swap (seen mentioned here a few times).

Week #43: November 17, 2023

Livestream Recording | POAP Checkout

The morning trinity

View on Reddit →

u/the-A-word

Ethereum

u/696_eth

0.054

u/Zeebrasurfer

1968

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Shorting looked so wise,

Yet it turned out otherwise,

Ether still on the rise.

Shitpost of the week: u/ToEthMooonGuy

View on Reddit →

#To ETH Mooon!!! ┗(°0°)┛

u/superphiz reminds us of some critical bull market preparation

View on Reddit →

You need to have a written plan about when you will take profits.

Print it out, sign it, and hang it on your wall as a reminder.

This is fun, but no one can predict what tomorrow might look like.

Most of all, don’t fall into the trap of people who would convince you to have diamond hands. They want you to be exit liquidity.

u/PhiMarHal laments on the frustrations of centralised services

View on Reddit →

Every now and then, I forget how stressful centralization is. Mostly thanks to avoidance. With forgetfulness comes confidence, so I try again, and I’m quickly reminded of the cons.

I wanted to use Coinbase to hop from a rollup to another without paying bridge fees. Now they’re holding my outbound transaction hostage, with an enigmatic Pending. Contacting support nets me people escalating my problem to a “specialist team”, which is meant to email me but apparently not in a rush to do so.

What’s going on? Who knows. Complete black box. I suppose so are thirdparty bridges, in a sense… Yet I find the experience distinctively different. The dynamic changes when you use a protocol with a Discord channel where developers and knowledgeable users will interact with you. There’s more visibility into their processes than with a corporate company presenting you with an interface where nothing suggests the exact nature of the problem, and support is outsourced to a call center where employees might do their best but simply aren’t equipped to deal with the matter or deviate from a script.

I suppose that will be my booster shot against sending meaningful sums to a CEX, even as transit.

EDIT: followup, the transfer went through a few hours later. Whew!

u/the_statustician is grateful for this gift

View on Reddit →

We are here, we are few but confident. This is crypto and it’s epic. This is generational craziness that is a unique opportunity.

We should be grateful for this gift.

It marches on even as Powell attempts to tighten and restrain.

It’s astonishing to watch, I am happy to be here. I missed buying many lows, I missed selling many highs. But my god the thesis is the same as before and don’t forget it…it is written in stone and it will not change for many many eras. It is beautiful and simple.

Insofar as the disintermediation of a middleman will return value to a party and counterparty, then the market demands that such innovation take place to improve efficiency.

That is why we are here. There will be many scams along the way, there will be lots of trial and error, there will be SBFs and Hoskinson’s. But we are here to rush gold in a gold rush for digital gold that will upend the traditional social and economic order.

Enjoy the ride, the big boys are coming.

u/austonst provides daily updates on DevConnect

View on Reddit →

Devconnect Day 1

Greetings from Istanbul! I’m at Staking Summit to start off my week (and change) of Devconnect fun times. I’m not going to give as detailed a daily summary as I’ve done for ETHDenver, but hope to give a little insight into what’s happening.

Devconnect is a collection of independent events organized in the same week and in the same city. There’s going to be a general coworking space opening up on Monday and available through the week, but most actual events are only 1-2 days long. Staking Summit is getting started a little “early”, but seems to have gotten decent attendance.

Staking Summit has one stage with a series of talks and panels, a breakout area for occasional workshops, a lot of room for projects to set up booths, and a pretty nice spread of snacks. The event is advertised as being about PoS and staking in general, not just about ETH. I get the impression that some attendees are interested in staking as a financial vehicle, just as a place you can put capital to earn yield without caring too much about what it means. But not too much of that. Saw a lot of familiar faces already, met new folks too.

Most talks were kinda simple. A few things of note:

(Posted this an hour ago, looks like it got deleted somehow? Taking out the links in hope it gets through the filters this time… EDIT: Yep, this one worked. Reddit hates links to conference webpages apparently.)


Devconnect Day 2 Devconnect Day 3 Devconnect Day 4 Devconnect Day 5 Devconnect Day 6 Devconnect Day 7

u/Revanchist1 has some really simple pro-tips for DEx users to avoid MEV!

View on Reddit →

Here’s some cool tips for people who may not know.

I mainly use the metadex swap by the DeFi llama folks.

https://swap.defillama.com/

Obviously don’t click my link and just start using it. It’s the right link but practice some safety and look for an official source.

It works by querying multiple DEX aggregators, comparing their quotes and gas costs and allows you to choose the best one.

They charge no fee, so when you make a swap you are getting the exact same result that you’d get from swapping through an aggregator’s UI directly.

As for MEVs and sandwich attacks, everyone making trades on chain should be using an MEV blocking rpc.

Find one here:

https://chainlist.org/?search=Eth

Not all are MEV blockers. The ones I know at a glance are - Llama, Flashbots, MEVblocker. whichever has the lowest latency for you.

It’s easy to quickly change rpcs on desktop and there’s no need to get sandwiched by Jared every time you want to trade shitcoins.

u/vvpan shares them and u/hanniabu fighting the good fight in another forum, explaining the usefulness of blockchain’s innovations

View on Reddit →

In a thread about blockchain on Hacker News, a place with high level of blockchain skepticism (/u/hanniabu is there too fighting the good fight), somebody asked me:

Can you describe to me what the main point of “blockchain technology” is? What is there to innovate in terms of its core function?

I took the challenge to heart and wrote out this little post. I am worried that one cannot be exhaustive enough, but there it is.

* Transaction throughput

* Efficiency - allowing small scale players to participate in verification and block production.* Inter-chain communication - some networks are explicitly designed as connected swarms of chains (Cosmos and polkadot for example) and some are evolving in that direction outside of the protocol level (Ethereum). How one executes transactions that span the networks is an ongoing research topic.

* Privacy - how to execute transactions in private. How to attest that something is true, say that you have a certain credential, without exposing your account information. Blockchain has been why zero knowledge (and now homo-morphic encryption) cryptography are becoming an active field of research.

* Identity, authentication, account recovery. - these tie into cryptography but generally research on applied cryptography with good UX. For example the first time I’ve seen social-recovery accounts with any amount of usage (now a feature in Apple accounts) was in a blockchain application.

* Monetary research - far from everybody involved in crypto believes that a fixed-supply rare item makes for good money. “Fiat” money is basically a “token” with governance attached to it. This has lead to a wave of experimentation with other forms of tokens - ones that are algorithmically tied to other assets, ones that are backed by an organization, local currencies, etc.

* Organizational research - since smart contracts can effectively be transparent community banks there’s has been a plethora of experiments with building organizations that manage their own treasuries. Horizontalism, organizational transparency and cooperation is something that’s been at the core of many crypto projects, the idea being that something cannot be both a reliable public good and controlled by a single party. It’s not an easy task, but some cool organizations have come out of this. For an example look at pocket: https://forum.pokt.network/t/messari-pocket-dao-exploring-proof-of-participation-governance/3857

In general, even if the blockchain experiment will fail it has given the world an ideological and technical boost.

u/SeaMonkey82 is still the unsung hero tinkering on the testnets

View on Reddit →

Daily Holesky:
Reported a logging bug with Lighthouse and sproul had already created a PR to fix it.

I’ve been playing with the stakelocal grafana dashboard more, and continuing to provide feedback to metanull. One key configuration change I had to do to tone down the spamming of errors in the syslog was to omit the txpool module from ethereum-metrics-exporter for Nethermind and Besu. This is because Besu doesn’t support txpool_status and ethereum-metrics-exporter doesn’t know how to handle the integer values that Nethermind returns for txpool_status. I’ve created a GitHub issue for this. Another conundrum I ran into was that the external validator and address links were working fine on my mainnet machine, but on my testnet machine, every / in links was being changed to %2F rendering them broken. It took me a while to realize that I had used the .deb install method for grafana on the testnet machine instead of adding the repo where it stays up-to-date, so grafana-server was still on v9.5.1 instead of v10.2.0. Upgrading to the current version fixed the issue.

Something that was brought to my attention once I had the dashboard set up for all supported client pairs is that erigon is failing to honor the --maxpeers flag, so I reported that to their team.

u/Fiberpunk2077 is trying to understand the implications of EIP-4844. and u/djlywtf has a great reply

View on Reddit →

u/Fiberpunk2077:

I hope they don’t mind, but I must summon the great minds to help me understand the implications of 4844: u/domotheus u/swagtimusprime u/Liberosist

I asked some questions a few days ago around this, but I still don’t understand what 4844 will do to L2 smart contracts and the data they hold with the ~18 day pruning.

To my very basic understanding, once 4844 goes live, rollups will use a new transaction type (blob) to commit the rollup data to L1 (instead of calldata). However, by using the blob transaction, the rollup data may be pruned/purged after ~18 days (whether it actually will or not is another thing). I’ve read that this blob data is meant for data availability, not data storage, but I don’t understand what that means practically.

So this leaves me with many questions of what this means for smart contracts on L2’s, and I can’t get my mind around it. I think perhaps I’m getting confused between historical blob data for any given moment in time and storage of the current blockchain state (e.g., does the L2 store the current state?). Hopefully these dumb questions will help clear it up for me:

  1. Post 4844, if I deploy a contract on an L2, will that be committed via a blob transaction? Or will L2’s know it’s a contract and use calldata instead? If it uses the blob transaction, does that mean the entire contract could be purged and not exist anymore?
  2. If the contract does survive pruning, does it mean the data itself may be purged? For example, if I store an address for payment in a contract, could it suddenly be purged after 18 days and then the address is 0x0, effectively sending payment to the burn address?!
  3. If data in contracts do get purged, does that mean the contract could be in some half available/half purged state if data is written to the contract over periods of time?
  4. Somewhat unrelated, but can an L2 call an L1 smart contract?

I know I must be thinking about this incorrectly, because if any of this is true, I feel it’s going to massively hamper L2 adoption and usability; that, or I’m missing some other big piece of the puzzle to mitigate this.

I also assume with full danksharding, the data pruning will be greatly lengthened, so perhaps this is a temporary issue?

Any clarity you can provide would be very much appreciated!


View on Reddit →

u/djlywtf:

dom’s honorary nephew here

nothing in rollups state is ever pruned. currently, all transactions (or state diffs) are posted on calldata and thus are stored forever. when you run a rollup node, you can reconstruct the state yourself from this data on L1.

after 4844, you won’t be able to reconstruct the state from L1 data (unless someone stores all blobs). instead, you follow latest merkle root or anything that belongs only to the latest state (even hash of sqlite database), stored in the contract on L1 and updated each proven batch (ZK proved or challenge time ended). you can be sure that this data about current state is accurate, because it was proven in the past when you weren’t around from the data which WAS available then. then, you download the state from anyone with a rollup node. you’ll get it if at least 1/N rollup node is honest, because its data will match merkle root or db hash or anything

temporary blobs purpose is to be used by sequencers that prove rollup batch and then update current state “signature” (it can be whatever works, most simple example is merkle root). nodes don’t need to store all transactions to reconstruct the state, because they can prove if the latest state that they receive from rollups nodes is actually valid on L1

for example, someone on zk rollup proposes the batch with transactions, sending it in the blob storage. now, everyone has all these txs for the next 18 days. sequencer/s start to generate the ZK proof to this batch, and when they’re done, they send it on L1 contract, it executes this ZK proof using commitment to the blob (fixed size thing that belongs to the blob and that they can access on EVM; don’t ask me how it works this is cryptography magic), and updates merkle root based on what state these txs changed. now this data can be safely pruned and nothing will break, but we also have optimistic rollups that have to wait for the challenge time, so we hold it for 18 days instead of say 2 hours

u/Bob-Rossi provides us an Arbitrum delegate update

View on Reddit →

Recent ARB vote updates:

Using 100M of ARB funds for “Staking” passed the temperature check on Snapshot. The proposal would take 100m of DAO treasury and pay it out over holders who lock their ARB for 1 year. I voted no for this, as I don’t think it adds much value to Arbitrum’s chain and essentially is just paying people not to sell. Any economic value added is temporary, and likely would be out-performed by other projects. We shall see where this goes, as while it passed, there were a decent amount of no votes.

The DAO voted to start an RFP process for security proposals. I voted for this, as I prefer to see these types of things be standardized when people apply to allow for an even playing field.

The “Arbitrum Coalition” vote failed. This looked to have a group of delegates to be hands on with DAO proposals. Basically coordination and reviewing of proposals at certain stages. I voted no on this, as some of the council also had a large share of voting power. My fear being it would create a centralizing effect. I’m not opposed to the broad idea, but there needed to be stronger separate of powers here — ideally those on the council had no voting power. I think this failed as a lot of other delegates felt similar to me.

The STIP grants that pass the yes/no voting, but did not meet the 50 million threshold were voted to be backfunded. Honestly, this was a tough one for me. I wasn’t a huge fan of back funding projects, especially because of the precedent it will set. However, IMO the DAO really dropped the ball on the first grant round with how it was set up. I’m not sure punishing the ones that passed, but failed to be as popular, is really great when it’s more the DAOs fault for a poor setup. So in the spirit of the original proposal, I voted to pass but wouldn’t be doing this again if a future round finds this issue. I’ll add, the spend was going from 50 million to 71 million. Which didn’t seem overly outrageous, and was actually in line with original ARB amounts proposed until it was reduced from 75 Million to 50 Million.

To those possibly concerned, LIDO did fail their yes/no vote so it wouldn’t get funded with this round either.

u/MinimalGravitas warns us of the latest scammer tactic

View on Reddit →

New scammer tactic on an /ethereum staking thread.

Posted a link to a fake staking service (Block Scape) which they immediately upvoted with ~30 bots. I called it out in a reply. So far so normal.

They then deleted their original comment, blocked me so that I can’t report them or reply again and then upvoted the new one. Very annoying strategy.

Stay safe out there, and if anyone wants to do a favour and report the scammer then please do!

[Edit, and of course they are now using their bots to downvote my top level comment calling them out.]

Week #42: Novmber 10, 2023

No Livestream | No POAP

Weekly Doots →
Week #41: October 27, 2023

Livestream Recording | POAP

Announcements

The morning trinity

View on Reddit →

u/alexiskef

✨E✨t✨h✨e✨r✨e✨u✨m✨

u/FrenktheTank

0.0526

u/Zeebrasurfer

$1783

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

For a crust of bread,

Hunting the next airdrop shred,

Keeping us all fed.

Shitpost of the week: u/Yeopaa

View on Reddit →

I’ve held my silence for too long.

In my country the word ‘doot’ means vagina.

It’s also slang for currency, 1 Doot = £1.

A common jibe here is ‘Smell yer doot mate.’

u/benido2030 is continuing their effort to make EthFinance a governance powerhouse

View on Reddit →

A few days ago I made my “Let’s make ETH Finance a Governance Powerhouse” post. First of all thank you for the positive feedback both with comments and upvotes! I have been thinking some more about it and even though there wasn’t a real pushback, I would like to update it and cut it down to three steps.

  1. Coordinate
  2. Delegate
  3. Communicate

After reading my own post a couple of times, I asked myself. “How would you respond to this if this was posted by someone else?” My gut feeling: It’s a good idea, but it’s too complex. We need to start with an MVP for governance and coordination. Hence, here’s a short “Minimum viable coordination” (MVC) update:

1) Coordinate

Once an airdrop is announced, we try to coordinate as fast as possible.

We collect potential delegates from this community. Members can both announce their motivation to be a delegate for the protocol and members can suggest other members.

We publish a list of “aligned” delegates that are close to this community, but not daily active.

We try to focus on a few delegates to make sure “our” delegates have a lot of tokens delegated and hence governance power.

Obviously everyone is still free to become a delegate, but if we can achieve to agree on e.g. 2-3 “official” candidates that focus on one protocol, this would have a lot of benefits. My suggestion is also to that the “official” delegates should be delegates for one protocol only. My best educated guess is that the time needed for “good”/“professional” governance will be up only and in the future being a delegate for 2+ protocols will be very hard.

2) Delegate

Well, this part is easy. We delegate our tokens to our “official” delegates.

Why is it an extra step? Just to emphasize that it’s coordination first and delegation second. Or in other words: I think it would be very beneficial if we all be patient. Don’t claim on day one since most of the time the delegation is part of the claiming process. Let’s try to make sure we really had some time to agree on candidates.

3) Communicate

This is happening already, but we should do this as much as possible. Tag your delegates if you have question/ feedback. Or as a delegate: Talk to the community, ask for feedback if you are a delegate.

The delegates are our ears and eyes for that protocol. E.g. I would have missed the LDO proposal, but I am very happy it was discussed here. We need this kind of activity to inform the community, align and coordinate even better than before.

I think this MVC is way better than the first one. Yeah, reporting sounds cool, but it might be overblown (and corporate?). And yes, preparation for a potential airdrop sure makes sense, but could also be a lot of work for something that never happens. Let’s try to coordinate ad-hoc when there is a need. If that works out, we can always improve and add more steps.

Airdrops are usually a big news and my guess would be that members that are mostly reading here will come to ETHFinance on these days. By definition I will not know what most of those lurkers will think of my suggest or do when we need to coordinate, but allow me to state this: You are the majority of this community and you all - as a group of lurkers - probably have more governance tokens than the active / posting members. I would really appreciate your silent coordination by reading and silent acting by delegating your tokens to a delegate from the community!

u/jtnichol reflects on how EthFinance dodged a bullet with Reddit’s community points

View on Reddit →

Reddit is sunsetting community points across cryptocurrency ethrader, and Fortnite BR… I don’t know what the next move will be for the project as a whole, but I’m still very very happy. We did not get involved with such a centralized mess of points and karma

Moon price dumped big time prior to the announcement also which speculated the moderators had inside her information this was going to happen on /r/cryptocurrency and Fortnitebr specifically.

that’s all speculation based on a tweet I’ve ever had that. Showed the timing of everything. /u/spacesider hear anything like that?

https://x.com/DegenerateNews/status/1714353397330002253?s=20

Edit…ethtrader too https://reddit.com/r/ethtrader/s/mxYAn7ShXP

Double edit… holy shit looking through those subs and the amount of fighting and pissed off people over something we all knew years ago, was going to ruin the Reddit experience.

passing up that opportunity was the best thing moderators here could’ve done because it is a complete train wreck now over there in those other subs .

also, Reddit red hats have just created such a catastrophe by not seeing this through or figuring out the token mechanics of it …. they basically told the moderators it was going to be over in a month and that was that. They should’ve just rugged everybody equally the same time but they didn’t.

and just don’t understand why they didn’t put more effort into figuring out the token mechanics. Who knows it was probably because of all the discord pump groups that are being talked about as well with the vote manipulation. Color me shocked. … maybe it was a regulatory thing…. who knows but there was not enough effort to see it through after such a long, hard road of picking out which layer two to use, etc..

Watch those communities evaporate quickly. I have no doubt they will probably see a good 75 to 80% less traffic because of all the click farm activity and Discord vote manipulation tactics.

u/Spacesider explains his perspective of the Reddit Moons rug as an r/CC mod

View on Reddit →

There was a post in yesterdays daily regarding Reddit community points and JT tagged me and asked for my input, and I have only seen the post just now, so I will follow up in today’s daily for greater visibility /u/jtnichol


Basically, we were both privately and abruptly told by the admins that community points are getting killed and they will be no more in just a few weeks. 1 hour later the admins shared this information to the wider community. So /r/CryptoCurrency mods knew about this before everyone else, as well as the mods also over at /r/FortNiteBR and /r/ethtrader too as they also have RCP. (Reddit community points).

Well, some mods used this private information to their own personal advantage and decided to sell, because the price was going to obviously crash when it was to be made public one hour later.. Some more information in that link.

It’s also been reported on two big websites if anyone want additional details.

https://www.theblock.co/post/258476/pair-of-reddit-mods-appear-to-have-sold-off-tokens-ahead-of-announcement-to-terminate-blockchain-based-program

https://cointelegraph.com/news/reddit-mods-dumped-tokens-hours-before-blockchain-program-termination

This is really not a good look and I have absolutely no idea what (If any) potential consequences of this is going to be. My personal thoughts on the matter?

When RCP’s were first announced (Around half a year prior to me becoming a mod), I voiced my concerns as a comment on the announcement.

Many years and countless hours later from everyone involved, I must say that it is still sad to see it go because this could have been a huge opportunity for Reddit to make web 3 way more mainstream than it currently is. So this is probably going to set things back a bit for us. I guess Reddit are only focused on money though and if it initiatives like this can’t bring them in more money (Probably due to rumours about how they want to IPO), then they will be axed to make things look prettier for investors. So probably the entire Reddit platform might go in an entirely new direction.

We did ask if the smart contract could potentially get handed over to the mods for us to continue in our own capacity, but the admins haven’t said anything back to us about this.

I guess now that upvotes are not monetised anymore there will be a big drop in comments and in theory an increase in quality, as all the people who participated only to farm karma will now (hopefully) move onto other more productive things. I guess time will tell!

u/silentjxhn shares an excerpt from an artist who praises the advantages of NFT art

View on Reddit →

I find this so fucking weird. The artists that have branched into NFTs love it from what it seems.

I get 100% of the primary sales. Galleries take 50%. For the entire month of July I sold a teeshirt. $20. [Reddit’s Collectable Avatar] program allows me to make art every day.

…before this project I was pretty against NFTs for all the obvious reasons that most people are. Mainly the predatory, mlm scamming structure that turned a lot of people off to them. But people need to know that this project is far more like patreon, your purchase goes right to the artist. You see an artist you like and want to aid them? you throw them a couple bucks. To be honest seeing the resales was even a surprise to me. But I don’t see it that different than any other form of investing, it’s all numbers on a screen to me. I would, however encourage people to not get over their heads and play it safe. Please don’t gamble your life away.

I actually intend to recycle my earnings into putting on art shows and installations myself. I’m sick of begging galleries for attention, I’m just gunna rent out warehouses and do it myself and invite the public to see. Not only did this program free me from the extreme stress of trying to make rent, it allows me to circumvent the dusty old gate keeping artworld and do what I want to: to show the whole world my art. This program is dope as shit.

u/domotheus does an AMA on statelessness and verkle trees

View on Reddit →

I’m currently writing an article about statelessness/verkle trees, trying to do the same thing I did for blobspace where I start from the very ground up to explain the problem and the solution.

I guess most ethfinanciers are already familiar with a good chunk of the “from the ground up” section, but it doesn’t hurt to see where some confusion remains. So I’m trying something here: AMA about statelessness and stuff and I’ll try to answer and it’ll be mutually beneficial and what not

u/TheCryptosAndBloods finds an excerpt which sums up an all too common occurrence

View on Reddit →

Excerpt below from a newsletter I get called The Defi Edge - it is uncanny how exactly it describes me and my behaviour in the last 2 cycles. Like he could literally have been writing my story.

Anyone else do this?

Waiting patiently for the next cycle to (I hope) do what I didn’t, the first two times:

“Have you ever heard that it takes roughly 3 Crypto cycles before you”make it"?

You’re an idiot in the 1st cycle. You’re figuring out all the basic concepts. You trust influencers a little bit more than you should.

4 years later…

You’re smarter in the 2nd cycle, but you become a little too overconfident. You think, “This time, it’s different.” You’re not taking profits like you should and mis-time the market cycle.

4 years later…

The 3rd cycle. You either “make it,” or you repeat the same mistakes. Notice the 4 years part.

This isn’t League of Legends or Chess, where you can play every day if you want to. The bull market tends to come once every 4 years on average. So, your “feedback loops” are slower."

u/FernadoPoo has a call to action for Americans

View on Reddit →

The US Government is Trying to Kill Crypto latest Bankless podcast.

If you are a U.S. citizen, give the IRS and Treasury what for using the AI tool https://treasuryraid.lexpunk.army/

You have seven days.

u/696_eth talks about the fun aspect of solo staking

View on Reddit →

I’m surprised staking hasn’t gotten more degen light. All you see is like 3.7% APR when you solo stake bluh bluh. Yes, that’s helpful and that’s too intellectual.

Why wouldnt we just make it intellectual cause we can calc averages etc etc and move on? well that’s how I did it too but staking isnt just that for humans.

Let me explain a bit more.

Staking has consistent rewards which are quite negligible unless you are a whale but you get some passive income and that feels stable, secure and good and it can even attract the crowd that does FatFIRE and all that stuff in tradfi.

However, there’s more to staking. There’s a sync committee which is again more stable gains while you are there yet the key part is that it’s random occurrence in one’s process.

And the ultimate form of dopamine rewarding would be a block proposal. Timing of that is random (yes there’s a probability the same way there’s a probability in blackjack or roulette) and on top of that - the reward is random! So you are basically having a chance at winning the lottery (also way better chances than in real lottery) and you get to play it for free!! Well, kind of. You have to stake.

So unless you are a big corporate entity or in a smoothing pool (altho that would still apply to some degree but not so much), just the possibility of having stability (thru regular attestations) + some occasional bonus for doing the job well (sync comm) + free lotto tickets that can be lifechanging (block proposals) !!! I feel like if more people knew this was the case instead of just boring APY part they might’ve been staking purely in hopes of degening in a smart way (since you lotto tickets are free) and helping out the decentralization in the process.

Anyways, im curious what has your experience been like? do you feel some excitement staking or at least whenever you get notifications about sync comm + proposing blocks? if not, how does it make you feel then?

u/anderspatriksvensson is withdrawing their stETH and explains the process

View on Reddit →

I am moving out of Lido and decided to “Withdraw” instead of trade out my stEth. They say this may take 1-4 days. Anyone build any good way to more accurately predict when my withdrawal will take place and be ready to claim? I’m patient but just wondering if there’s a better estimate somewhere…

EDIT: Little more research. So Lido creates an NFT that is minted the second you create a withdraw request. The NFT is then “transferred” and burned once the eth is ready to claim and claimed. So with a little bit of guessing, you can see when the last “transfer” was and how long it took between their mint and the transfer and guesstimate. Example of one that has been minted and transferred. About 5 days and 9 hours from request withdraw to being claimed. Of course it might have been ready at 4 days and it took 1 day and 9 hours for the user to claim it… Anyway, I wait patiently :) I feel better doing a withdraw and knowing the stETH is being burned instead of transferred onto someone else.

Week #40: October 20, 2023

Livestream Recording | POAP

Guest appearance by Greg Di Prisco, Co-Founder of Ajna, a noncustodialand permissionless lending protocol that requires no governance or external price feeds.

Announcements

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/5quat

$1584

u/696_eth

0.054

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Warping not bridging,

EVM is not judging,

Just network switching.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 860,027 (+2,531)

Pending validators: Joining 0, leaving 0


Since I have started tracking this

151 days have passed

The amount of active validators has increased from 572,820 to 860,027 (+287,207)

The amount of staked ether has increased from 18,330,053 to 27,520,638 (+9,190,585)

Which is around 14,228,587,979$ in USD value using today’s Ethereum price.

Shitpost of the week: u/superphiz

View on Reddit →

Making a pilgrimage to see the burial site of our beloved, Gary the Cow today.

Edit: I arrived!

u/MinimalGravitas has some thoughts after the community pushback against Lido’s Arbitrum DAO proposal

View on Reddit →

Thoughts on the victory over Lido in Arbitrum’s STIP round (apologies for a bit of a brain dump):

1) Today - We should celebrate, be grateful and allow ourselves the happy vibes of the ‘good’ side winning. We’ve won a battle, but as I said a couple of weeks ago this is going to be a long war. One of the best ways to build resilience to keep grinding is to pay attention to the rewards your brain gives you when you win.

2) Tomorrow - If you harassed a delegate to get them to vote, or to change their vote or whatever then reach back out to them over the next few days. Everyone likes it when you say thanks, and everyone prefers it when they don’t feel like you forget about them after you’ve got what you wanted.

If delegates voted no after you messaged them, or even if no one contacted them then why not message them to suggest they take a look in EthFinance of Reddit? Sales teams and political lobbying groups take people out to dinner to keep them on side, maybe our equivalent to that would be inviting delegates here… I honestly think that The Daily is a more valuable Ethereum community than any Discord or Telegram group, so why not leverage some of that value to buy goodwill from DAO delegates who have shown themselves to be at least somewhat aligned to the cause of protecting Ethereum L1.

3) Next Week - With Lido losing here, being vampire attacked, and the threat they pose being discussed in multiple Ethereum podcasts recently it’s a good time to press the advantage. Up the ‘social pressure’ (which it turns out can be quite useful after all) by calling out their attempts at spin and damage control. u/hanniabu has set a great example of doing this. Their representative who proposed the Arbitrum request was on Twitter claiming the results were ‘razor tight’, so don’t let them control the narrative.

In a dogfight one of the ways you beat an opponent is by overwhelming their Cognitive Load, give them too many things to think about to be able to effectively counter all of them. Lido have a lot to think about at the moment so we’d be throwing away an advantage if we let the pressure up too much.

4) The Future - We need to get more coordinated. We’ve got delegates in lots of DAOs but can we find more? Can we start compiling resources of delegates that might not be part of EthFinance but can be relied upon to recognize the threat Lido represents if they come knocking for funds and integrations? Can we start predicting where they might go next and reach out to delegates in other DAOs before any decisions even get put to them?

u/_WebOfTrust has discussed the possibility of changes to constitutions that would prevent these kinds of funding requests for Lido even coming to the proposal stage, what would that look like and what DAO’s might take it up?

How can we keep respected Ethereum media discussing this? Obviously some members (like u/EvanVanNess) are already working on that, I’m sure we can try to keep the focus on for some others too. The Bankless guys used to frequent here sometimes and have had a recent episode with Danny Ryan as well as promoted Diva’s Vampire attack, lets praise and promote those positive actions to encourage them to do more.

We need to get to grips with how important votes in the ecosystem work, before the final day of their decisions - it was pretty funny the number of different interpretations as to how Arbitrum’s pass/fail was decided, I certainly didn’t understand it until yesterday evening. It worked out fine this time, but we can learn from that and do better next time.

Because there will be a next time. Ultimately I believe that competition from other staking protocols is going to be the solution to getting Lido below 22%, but that won’t happen quickly, and Lido will fight hard to grow as much as they can before other options can catch up. The social layer is not the long term way to get this fixed, but is is a tool we have now and may be the best we have to defend our network for the near future - so lets learn from this victory and hone the abilities we have so that we can hold the line and push back for as long as we need to. I’ve never felt more optimistic that it’s possible for us to do so.

u/Tricky_Troll adjusts the personal reputations of delegators

View on Reddit →

Governance token holders everywhere, particularly ARB holders or even OP and other governance token holders who delegate — now is a good time to ask yourself if you are happy with who you have delegated your tokens to. After the recent Lido ARB proposal, some names I once knew have either gone up or down in my personal reputation. It may be worth checking all protocols which you delegate your tokens on and check your delegate’s track record and change or speak up if necessary.

Changes of who I see as reputable.

Reputation gain: +++

Reputation Loss: —

Name and shame/praise baby. Who’d I miss?

u/RooftopPortaPotty updates us on their project PreservationDAO

View on Reddit →

Piggybacking on all the recent discussions regarding DAOs here, I aim to provide another perspective.

Two years ago I resolved to, along with the invaluable work of other ethfinanciers, launch PreservationDAO. Our aim is to preserve habitat by purchasing land of significant ecological value using funds generated by on-chain donations.

The landscape of Ethereum has obviously changed drastically since then, but our ideas and general plans were compiled by the great /u/haurog, and can be found at https://github.com/preservationdao/preservationdao.

We were quickly met with a wide array of challenges and obstacles. Some of these issues have likely been solved to some extent by this point.

I will assume that any interested members have read the linked github page. The following will be an attempt to address some of these challenges, and to detail solutions where available.

  1. I personally lacked the funds necessary to get this project off the ground. Unfortunately, this has not changed.

  2. We felt it wrong to launch an environmentally-oriented project on a proof of work chain. Post-merge, this is a non-issue. However, we may still want to choose a L2 to avoid high gas fees.

  3. I spent quite a long time trying to find an appropriate law firm to help create a land-owning, on-chain, 501 (c) (3) organization, to no avail.

  4. Ensuring that the meatspace treasury has no ability to embezzle funds is paramount, and I dont see a clear solution.

  5. With a non-transferable ERC-20(or NFT?) that is distributed to donators, who may then vote for lands to purchase, how do we mitigate sybil attacks?

  6. Ensuring that qualified contributors are able to make their donations tax-exempt is a priority. This project must not be limited to properties within the US.

  7. What assets should we accept as donations? There are many downsides to market selling ETH in order to purchase property.

I implore any interested ethfinanciers to contribute in any way possible.

I would love to see this comment receive significant traction. Otherwise, PreservationDAO can be re-shelved until we have a clear path to success laid out.

u/696_eth shares the potential that JP Morgan sees in this space

View on Reddit →

Original source


JP Morgan Onyx on Digital Identity in Web3

They have a video and are doing a 4-article series.

The first one - The Big Shift - was released back in 2022.

Let’s see what they understand.

New web - new rules.

New verification methods that are more secure, trustworthy and easier to use.

Prior to the blockchain and even so far, the digital online world has been copying the physical world leading to many issues around identity pieces:

• unsecured communication

• inefficient and dangerous practices

• stolen identities

• much more

Web3 - introduces new possibilities.

They clearly understand how web1 changed the world through e-commerce and how web2 sparked innovation through the rise of social networks and user-generated content.

What about web3? It brings the pieces of:

Decentralized system:

• Digital ownership of your data

• Ownership of your assets

• Flips the relationship between companies and users

& many more possibilities

• Adds more cross-platform utility

• Adds provenance

• Adds immutability

That means web3 can bring another magnitude of innovation:

• Streamlining online business models (less friction for users)

• Saving time (reduce verification times)

• Making proving easier, more secure and private

• Reducing costs and unlocking more liquidity (faster and transparent public services)

For all of that to work we need to Update our Digital Identity.

That’s where Decentralized Digital Identity comes with a range of benefits:

• Sovereignty (you have control and choice of your data)

• Security (no points of failure)

• Immutable and irrefutable (highly trustworthy information)

While all of that sounds good, it’s a very complex challenge to bring all the pieces together.

This leads us to their second article - Assessing Web3’s Identity Building Blocks - was published sometime in 2023.

First of all, they are reiterating their points from the first article.

But now they are getting a bit more specific and tangible.

Starting with an overview of the digital identity landscape and highlighting 4 essential building blocks.

  1. Identifiers aka everyday tags:

• Names

• Email addresses

• Accounts numbers

• Social handles

& many more

Web3 ones are:

Ethereum Naming Service (ENS)

• Turns 42-character Ethereum public address into a human-readable name

• Represents multifaceted identity

• Includes a variety of blockchains

• Utilizes offchain information

• Includes website URLs (domains)

• All other identifiers

All of that is in one name!

— &Lens handle*

• A user profile on the social graph of Lenster, Lenstube, etc

Other naming services as identifiers (Unstoppable Domains and others)

DIDs (Decentralized identifiers) are fundamental blocks of the self-sovereign identity (SSI):

• uniqueness (no confusion)

• provability (proof of ownership)

• portability (owned by an owner and cannot be deleted, cross-platform usage)

It’s just a sneak peek and more is coming in the next article!

  1. Identity attributes (attestations of facts or data points):

Examples:

Proof of Humanity (PoH) - Ethereum-based social identity verification system

Soulbound tokens (SBT) - public, permanent, non-transferable NFTs that can represent a person’s digital identity attributes onchain.

Verifiable Credentials (VCs) - A W3C data model for sharing and verifying identity credentials that can be stored offchain allowing for privacy and scalability.

  1. Reputation

It is a key part of one’s identity and makes us who we are.

POAP (Proof of Attendance Protocol) is a notable example of this.

  1. Digital collectibles and assets

NFTs contributing to one’s identity:

• profile pictures (PFPs)

• digital art

• in-game items

• membership NFTs

& more

Digital Identity can bring all the pieces together.

To gain scale and mass adoption, it’s crucial for wallets to enable a seamless building of one’s digital identity.

Account Abstraction (AA) solves some of those challenges.

Combining 4 of the essential blocks (Identifiers, Identity attributes, Reputation, and Digital collectibles & assets) with one another, can form a holistic identity.

Onyx’s experience with Decentralized Digital Identity:

• observing the DID space from 2017

• identified use cases

• built concept solutions

• explored digital identity for institutions on public blockchains and experimented with VC and DID technology through a collaboration with the Monetary Authority of Singapore and SBI Digital Asset Holdings

• remain open-minded and continue exploring other methodologies for a variety of use cases

The conclusion of this article leads back to their digital identity part of the site.

They have a range of documents on other web3 and crypto-related topics.

It is obvious, that they are not thinking about Digital Identity in isolation as they are aware of nuance niches within web3 such as metaverse, DeFi, and even real-world assets.

They clearly articulate how it can be helpful for:

• online interactions (ownership, portability, security)

• creators (by moving platforms)

• gamers (asset-interoperability)

• real-world applications

In navigating the rich space of Web3, JP Morgan Onyx lays a strong emphasis on the transformative power of Decentralized Digital Identity. Their explorations highlight the potential that comes with blending digital identity with emerging tech realms like metaverse, DeFi, GameFi, SocialFi and the tangible world itself.

What else do you already see that JP Morgan Onyx still doesn’t?

u/benido2030 and u/Juankestein share their biggest learnings about investing and their resulting strategy

View on Reddit →

u/benido2030:

This is one of my biggest learnings: it’s so easy to spend ETH in a bull market. So many cool narratives. So many people making a quick buck.

And to be fair: you should be experimenting because that’s how you learn. But you should also keep in mind that every buy diminishes your ETH stack. Your long term bet. The asset that will not go to zero next bear.

So I think a budget for experiments works well. Don’t spend more than the budget and you’re good.


View on Reddit →

u/Juankestein:

Around 3 years ago I realized this. EVERYONE wants your BTC and ETH.

Just hold BTC and ETH and forget about it, that’s probably the most boring strategy but also the most rewarding and less stressful…

My Plan for 2025 is to convert all the 2017 and 2021 shitcoins into BTC, ETH, USDC and maybe another token I want to bet on.

u/benido2030 wants to make EthFinance a governance powerhouse

View on Reddit →

Let’s make ETH Finance a governance powerhouse

In the light of the lido threat and their ARB request this community has shown a brilliant reaction. The topic was heavily discussed, delegates coordinated and a lot of great posts have been made. u/minimalgravitas made this post last week and I would like to add some thoughts with regards to “The Future” since I completely agree that we need to coordinate even more than ever before.

Some assumptions before I start outlining my thoughts

So how can we coordinate more/ better to become a governance powerhouse? I think we need to be structured and prepared beforehand. I also think that for now (let’s call it “phase one”) we should also limit ourselves to the current community. Still this will be a huge change and will probably need people dedicating a good amount of time to make things happen.

Step 1: Analysis/ Identification:

This step needs to be done both internally and externally. These steps should happen regularly to be prepared for e.g. an airdrop, possibly every 3 to 6 months (tbd), but potentially also ad-hoc.Internally: We need to understand our members strengths, interests and availability. Some questions I would ask to identify potential delegates: Who is capable of representing ETH Finance as a delegate? Is the member focussed on a certain topic/ category? Is the member a delegate already? Is the member free and willing to work as a delegate? I think people should both be able to suggest other members, but also apply as a delegate.Externally: We need to understand which protocols / categories of protocols are critical to ETHs health, both direct and indirect. Direct in this case means e.g. relevant for ETH’s security and / or decentralization. Indirect could mean because of a large treasury and its economic power.So let me give you an example:I think the EigenLayer airdrop will happen at one point in time in the future. Let’s assume the token is a governance token. A lot of smart people see Restaking as a potential threat to Ethereum’s security. Hence I think we should try to make sure there is (at least!) one community delegate for EigenLayer.We should identify capable and willing members now to make sure once the airdrop happens we can act fast. Personal opinion to make it even more concrete: I would suggest u/hanniabu for EigenLayer delegate because I believe restaking is critical and believe that they have proven themself in the past couple of weeks both on reddit, but also on twitter.Best case we can identify up to 3 delegates per critical protocol so that we can act fast. Down the road we would basically have a table that serves as an overview of potential delegates per category.

Example:

Step 2: Coordination and delegation

This step will usually be helpful after a token launch/ airdrop. It basically formalizes step 1.After a token launch announcement we try to understand our “power”, so try to get a feeling for our power by estimating our token allocation (this will be fun, cause it will be so hard to estimate lurkers and their allocations). Based on this we agree on a number of delegates.After that we ask the potential candidates if they are still interested and confirm 1-x “official” delegates. The process? To be defined! Most likely via reddit, maybe an extra post? The daily?Important: obviously everyone is still free to run as a delegate even if they are not the “official” community delegate. Also everyone is still free to delegate to a completely different delegate. We can’t tell people to not run as a delegate and we can’t force people to delegate to the community’s candidate.From my point of view the goal of this step is to delegate as many tokens as possible to the “official” candidate to make sure our representatives have power. I think it’s better to have 3 candidates with 1M tokens each than to have 30 candidates with 100k tokens (or even less because people choose external candidates).But why would you do that? This is where step 3 comes in:

Step 3: Collecting feedback

I think we have a big advantage over other delegates: We can crowdsource feedback. Or in other words your delegates will usually understand your position (because you post it or upvote those comments that summarize your position in the best way possible) and will best case act based on the feedback.So what should the process look like? I think there are two possible ways.Delegate driven: The delegate will usually be aware of important topics, discussions and votes. They could either publish their position on a certain topic in the daily or they could ask for feedback if they have no idea/ position yet. I think this is the best scenario, but this might not work all the time. Delegates might not see a certain vote as critical as the community, might not have enough time to check all discussions proactively etc.Community driven: So the community members could tag the delegate to express their view on a certain issue. I think this has already worked pretty well the past couple of weeks and is already part of the community DNA.Based on the feedback the delegate forms their opinion and votes. Important: The delegate is of course (?) free to make the decision they think is best. The community feedback is a suggestion on how to vote, but not binding. If people are unhappy with the delegate they are free to redelegate (see step 5).

Step 4: Reporting

I think it would be beautiful if there was some kind of “reporting” back to the community. This could be a summary of the votes of the past, feedback the delegate got in the process (cause the delegate will likely be in touch with other delegates), information about other delegates that have a similar stance as we are and generally things the delegate thinks are important.The goal would be to learn what delegates have learned and allow for some “behind the scenes” for interested members. This reporting could be a written report, but maybe some delegates would also be open to join the weekly EVM meeting in Discord.

Step 5: Evaluation and (re)delegation

The last step is evaluating the delegate’s actions and potentially redelegation. In a best case scenario the evaluation just results in… nothing. People are happy, feel that the delegate did a great job and represented this community well. But we obviously have to accept that this won’t be true all the time. Redelegation could happen if a member goes inactive, votes/acts against the community’s values/ interest, etc.To be honest I don’t know how often this should be done, maybe once a year and whenever there are big decisions? In the end this is what some members have been documenting the past couple of days with external delegates and changes in reputation.

u/_WebOfTrust shares Vitalik’s message to those watching his every action

View on Reddit →

“Regular reminder:
If you see an article saying”Vitalik sends XXX ETH to [exchange]“, it’s not actually me selling, it’s almost always me donating to some charity or nonprofit or other project, and the recipient selling because, well, they have to cover expenses.
I haven’t”sold" ETH for personal gain since 2018."

https://warpcast.com/vitalik.eth/0xb8ccf84d

Mad respect for Vitalik, all the onchain alert on twitter of him selling and causing panic while its all just donation to charity.

u/hanniabu has a call to action

View on Reddit →

Time to promote decentralized LSTs to be added to Eigen Layer nexthttps://twitter.com/eigenlayer/status/1714331518775279990

Here is how you can get involved:

  1. A snapshot of all LST holders listed above, any that get added, and current Restakers will be taken on Oct 20th.
  2. Each wallet gets 1 vote for every $USD worth of tokens staked.
  3. LST teams will showcase their merits, declare pre-commitments, and campaign over the next week.
  4. LSTs that accumulate more than 15k ETH in votes will be added to EigenLayer for restaking in the subsequent months, added by the number of votes from highest to lowest.Key Dates:🫰Snapshot: Oct 20th📝 Submissions by LSTs: Oct 20th-25th🗳️ Voting by LST holders: Oct 25th - Nov 1

LSTs currently included and whether they are decentralized or not:

It seems the one we should support the most is Stakewise’s SETH2, so if anyone has that you should set a reminder to vote starting October 25th. Unfortunately there’s only a supply of 85k ETH since their old v2 implementation has been paused, so there’s limited voting power.

But the good thing is that you can also vote if you have any ETH restaked. I’ve reached out to Diva to petition for their inclusion.

-–

Edit:

https://twitter.com/eigenlayer/status/1714331527025476017

As for voting - you decide the stage! Decide on which L2 the competition should take place. Cast your vote now!🗳️ Deadline: October 20th before the contest launches.

Current poll results:

Base - 34.2% | Arbitrum - 54.9% | Polygon - 7.5% | Mantle - 3.4%

u/TheCryptosAndBloods calls out Uniswap for their recent bold move

View on Reddit →

Have we done the new UNI fee stuff?

How Uniswap Labs (the VC funded company) is adding a 0.15% fee to the (primary) frontend it controls, as well as their wallet app? It’s 3x the long awaited fee switch for UNI token holders, going entirely to benefit the company.

And they have announced it the day after they pushed through a vote approving $50 million in funding (by dumping the UNI token) for the Labs company by the Uniswap Foundation/DAO - with zero explanation of what it is for or what it’ll be used for - just an opaque ($46 million for 2 years please - we’ll use it well, pretty please).

It’s just incredibly brazen. Uniswap is a fantastic product but my god the incentive misalignment between the team and VCs (who want to drive value to the company equity which they own more of and which has fewer regulatory hassles) and token holders is crazy (team and VCs also own a ton of UNI of course but they own more of the company and would prefer to monetize the company, especially since it doesn’t have regulatory hassles for them like the token - BUT, they will use their voting power to block any attempts to turn the fee switch on for UNI holders, to avoid aforesaid regulatory hassles for them - all while disingenuously talking about how UNI holders can vote to turn on the fee switch if they want).

Why do people hold UNI anymore after the relentless screwing of token holders by the team/VCs/company?

Like I said - Uniswap is a great product but the team/VC/founders leave awful taste in the mouth with their greed and screwing of token holders. Also there were some very unpleasant allegations about Hayden screwing over early investors and people who helped him bootstrap and not giving them the equity they were promised etc last year - think there was a long Twitter thread by Ric Burton? I think I need to emphasize that we only heard Ric Burton’s side of the story and every story has two sides, but it all sounded quite plausible and in line with the kind of ethos that Uniswap Labs has now..

u/superphiz self-examines Ethereum’s current situation

View on Reddit →

Self-examination is critical for long term success. Everyone has been in the dumps about the ratio, but instead of lamenting it we ought to be asking what we can do to improve Ethereum.

Maybe it’s not our fault. Doesn’t matter.

Maybe bitcoin just had the first mover advantage. Doesn’t matter.

Maybe the value is flowing into bitcoin because they’ll have the first spot etf. Doesn’t matter.

What DOES matter is what the Ethereum community and developers are doing in the face of that. Ethereum is 10x more technically sound than bitcoin, so what can we do to stop suffering through the leak?

We can celebrate our victories and focus on the path forward.

Now. What are you celebrating? What have I missed? What can we do better? THESE are the questions we need to ask as we accept agency over our current situation.

Week #39: October 13, 2023

Livestream Recording | POAP

Guest appearance by Billy Luedtke from Intuition, a project that aims to have identity for everything on the blockchain

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/FrenktheTank

0.0576

u/TimbukNine

$1539

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Who wants a T-Bill?

Why not a savings account?

Staking is the thrill.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 857,496 (+2,070)

Pending validators: Joining ~500, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/MinimalGravitas

View on Reddit →

You need a story before bed Phiz.

To punish Ethereum, Moloch created a woman named TheCommunity, molded to look like the beautiful goddess Aphrodite.

Zeus brought her to Earth to be Ethereum’s’ wife. He was taken with her beauty and wanted to marry her, despite his developer’s warnings of the god’s trickery.

As a wedding present, Zeus gave TheCommunity a box, telling her never to open it. But as Zeus knew, TheCommunity was degen, she couldn’t stay away from the box and the urge to open it overcame her. Terrible things flew out of the box: centralization, MEV, scams, Bitcoin maxis, disinformation, LSTs, charlatans, and exploits. All of life’s miseries let out into the world.

As quick as she could, TheCommunity slammed the lid of the box back down. The last thing remaining inside of the box was Hope.

Ever since, Ethereans have been able to hold onto this hope in order to survive the wickedness that TheCommunity had let out.

u/TheHansGruber shares their last week of validating on the Holesky testnet

View on Reddit →

1 week of holesky testnet operations. 50 thousand genesis validators split across 15 or so giga nerds from the rocketpool discord. I have several thousand running on a Ryzen 5 5560U, 32GB @ 3200, 2TB NVME. CPU is tuned to 25W in the bios. I’ve got the wattmeter hooked up now and will be monitoring total system usage and see what it averages out to. Goal is to tune as low as possible without borking something. Current usage is about 37w, but it just booted back up and is syncing. Mainnet NUCs are around 15w. Still, kinda crazy to think one could secure $150,000,000 worth of the ethereum network…for 37 watts. It’s like…a medium sized solar panel and battery/inverter setup could do this for years. Greenpeace eat your heart out.

Something I didn’t consider before operating this node was the time it takes to load keys. It’s basically instantaneous with a couple validators. With several thousand it takes 30+ mins. Gotta reboot? It’s 30+ mins before everything is kosher again. Ethstats not reporting? A quick eth docker down/up cycle takes 10 seconds. But then 30+ minutes to load the keys. Actually, this makes me think I should try just restarting the execution container instead of the whole shebang and see if that works for ethstats. I am still learning the ins and outs of ethdocker…but it is definitely one of the easiest ways to run a node at home.

Sync aggregation is climbing and nearing 90%. It was hanging out in the 70’s last week.

I have started tracking the data usage now as well. With 1.4 million + total validators on the network, rx and tx is way, way up. Initial estimates are several TB per month, even with not a lot of activity on the network yet.

Mainnet nodes are around or under 1TB/month, depending on max peers and whatnot.

Random side note: about an hour ago one of /u/superphiz’s validators proposed a 3 eth block….straight to the smoothie pool. Thanks phiz! My non proposing, freeloading minipools appreciate the help.

u/Bob-Rossi urges ARB token holders to vote on a slef-interested Lido proposal

View on Reddit →

If you own any ARB, I’d urge you to vote in the LIDO grant proposal - https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

I know DAO governance isn’t very sexy, but it’s really just going to take 2 minutes of your time for something I know the majority of this sub feels strongly about. The TL;DR is that Lido is looking to get ARB from one of the grant programs running. They are requesting 4 Million ARB - which is about $3.6 million dollars worth today. Essentially to use it to increase liquidity of the their liquid staking token on the Arbitrum chain. I am voting no (I listed why on the forum, I’d link but it’s blocked on Reddit), for reasons I’m sure you can all guess. But I’ll also add their request is for 8% of the entire grant program (was 10%, they lowered it after a ton of negative feedback).

Also, reposting a request from earlier in the week - here. Simply wanted to get it at a different time of the day / before the weekend in case it was missed before due to timing.

u/mikkeller shares their ETH thesis in a standalone post

View on Reddit →

Made a long ETH thesis stand alone post, like a once every couple of years post, check it out: https://reddit.com/r/ethfinance/comments/171xvd3/how_eth_will_hit_100k_then_1m_why_it_will_and_the/

u/TheCryptosAndBloods asks for comments on a crypto critic’s latest release and u/TurboJetMegaChrist makes a fair judgement

View on Reddit →

u/TheCryptosAndBloods:

Has anyone read the new Zeke Faux (Bloomberg reporter) crypto book? Number Go Up?

Judging by the blurb (calling crypto a $3 trillion delusion) and the kind of people praising it on Twitter (lot of mainstream media reporters and anti crypto activists), my tentative feeling is that it’s just a masturbatory fantasy for the “I always knew crypto is scam and I’m glad it’s finally dead” crowd.

Can anyone tell me if it is actually worth reading, and if it is just a polemic anti crypto rant (fair enough the guy is entitled to his opinions) or if there are actually factual inaccuracies and misleading content?


View on Reddit →

u/TurboJetMegaChrist:

I listened to Laura Shin interview him.

For what it’s worth, he did not sound anything like the mindless critics that point to FTX, Celsius, and 3AC as representative of crypto values. I think he raises the very real issues that anyone in this daily thread would gladly acknowledge. The difference is that he thinks they’re intractable issues, and we think solving them is inevitable.

u/LogrisTheBard describes economic coercive systems

View on Reddit →

I’ve written several times about economic coercive systems before. I’m trying to polish a more simple way to introduce this concept and how blockchains help form these systems.

To start with, let’s create an evil smart contract whose only goal is to grow the set of participants in it. The only thing we need for this to work is a way of turning money into something universally unpleasant to a target actor. In the simplest case I’ll just suggest an assassination contract. Next, we create an evil conspiracy of initial participants to fund this contract. All the contract has to do is target some unlucky sap who isn’t in the contract yet, inform them of a pending assassination contract, and tell them to join us or die. Joining us includes streaming money to the contract so that the contract can grow faster. If the target dies, then the ratio of participants to non-participants still marginally increases. Now we run this until everyone remaining is in compliance with the contract rules.

This describes a minimum viable memetic rule system. The penalty obviously doesn’t have to be assassination. It just has to be enough that for whomever the current target is, they are incentivized to join according to their objective function. The penalty I describe in my human coordination post is economic isolation rather than assassination.

The initial participants expose themselves to economic pain from the fees they pay to the contract. This is the cost of expanding the size of the network and punishing defection. The value-add of this cost depends on the value of each new participant of the network. Due to Metcalfe’s Law we expect a super-linear value-add for each new participant as the network grows. Therefore, there is critical mass of initial participants required to bootstrap such a solution, but once that is reached the stable equilibrium of the system is to dominate.

Contrast this to networks that tend to fall apart or fail to achieve their goals because there is no leverage against defectors. For example, boycotts fail to work because all the negative consequences are directed at the seller, not at anyone defecting from the boycott. Strikes fail when scabs are brought in whom the strikers have no leverage against. A blockchain solution can have universal leverage because it acts on the unified monetary rail, which is quite unique.

Now, in this simple evil smart contract, there is no inherent value to the network (Metcalf value f(n) = 0). But in economic systems, there is. We can layer other rules into this base memetic rule system that can result in a net positive situation for the initial actors on a long enough horizon. The rules can include things like environmental protection, nuclear disarmament, or UBI.

Once widely adopted, the result is a class of fail-deadly system that punishes both those that disregard the coercive rules and those who don’t participate in punishing said defectors. There will always be some players like North Korea who choose to try to go it alone. The goal of an economic coercive system is to try to make them as poor and disconnected as possible to either minimize the harm they can do or compel them to join the coercive network and play by its rules.

Btw, if my evil contract sounds insane, it’s basically just taxation + the police that enforce taxation by throwing you in jail instead of killing you. If you say you’d never join such as system, you already have joined such a system.

u/MinimalGravitas has an important Arbitrum delegate update relating to Lido

View on Reddit →

The big Lido incentive funding request on Arbitrum is currently about 2/3 against.

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

Thanks to my delegate u/bobrossi for voting already. Ethereum ecosystem OG Griff Green has voted ‘no’ as well.

If your delegate hasn’t yet voted then get in touch with them. Some of the biggest delegates (like L2Beat and Olympio) haven’t voted yet, so there is still a chance this gets passed - which would mean 4 million ARB tokens being used to incentivize Lido’s LSTs.

Also shout out to u/hanniabu who has probably put the most work into pushing back on this one.

u/superphiz outlines his staking values

View on Reddit →

A few days ago I shared Diva’s vampire attack against Lido and someone asked what my incentives were. It got me thinking why people are skeptical of my motives when the things I share seem so obvious to me. It causes me to realize that the criteria I evaluate projects with may not be as clear to everyone as they are to me, and I wanted to de-mystify that by sharing the ways I look at staking projects. I’ve been developing these ideas since around 2018, so they’re old hat to me, but I want you to have the same framework I have.

Alignment - Is the product aligned with the success of Ethereum, or is it a “business proposition”? This can be REALLY hard to figure out, but I pretty much listen to the first words out of a project lead’s mouth: Are they talking about improving Ethereum or maximizing TVL & profit? The answer to these questions tell whether a project is a public good or a windfall opportunity for investors. I DO support investor rewards, but they ought to be within reason, and the ultimate benefactor should be the network and its users.

Longevity - I look for projects that have been around long enough to know what they’re getting into. This is why I’m a terrible angel investor. Young projects don’t have this acumen, and I’m not smart enough to determine whether they’ll develop it in time. Longevity is one of the reasons I continue to support Stakewise - they’ve continued to grow and develop their product over many years.

Permissionless Node Operation - This is a HUGE requirement for me. Growth of the Ethereum network requires that as many as people as possible run validators and nodes, and I only support projects who allow any person who is willing to put up a bond, or split a Decentralized Validator Technology (DVT) validator to participate. I believe that successful staking platforms should encourage home node operation and provide multi-client support so that the operator can choose from any consensus or execution client pair.

Operators must have a stake - Operators need to have skin in the game, this means that if they’re staking for an Liquid Staking Derivative (LSD) they ALSO need to have their own Ether on the line. This is because staking is actually a voting process on the network. If an operator doesn’t have any stake, they’re getting paid regardless of whether the network thrives or fails, but if they have Ether locked in that validator they’re far more likely to make decisions that benefit the network.

Self-Limiting - Any project I get excited about must support a self-limit to 22%. I don’t care if they’ll never get there, this is basically a commitment to say, “We’re going to put the success of Ethereum above all else.”

Minimal Complexity - I’m deterred by extreme complexity, and adding complexity increases smart contract risk and lowers the odds that people will figure out how it works. Now, to be honest, some projects APPEAR to be complex because they’re doing something new, but they may be doing this in the most simple way possible. I have to confess that if I hear inclusion of an NFT in a staking pool scheme I’m generally turned off due to complexity.

Fully Trustless - Staking funds need to be controlled end-to-end by a smart contract, not any form of multisig. This means that when you enter as a permissionless validator, your funds are received and managed by smart contract logic that delegates other people’s Ether to you, and when you exit, those Ether need to be returned to a smart contract that distributes them fairly. This process ought to be as transparent as possible. This DOES add REAL smart contract risk, but it’s superior to human controlled wallets.

Open Source - Staking platforms should release code for public audit and as a public good. Our core values include open source software and we must adhere to this as we grow.

So, yeah. These are my values and the ways I evaluate a staking platform. It’s why my list is so short, currently I support Rocket Pool, Diva, and Stakewise v3. You may be right to point out that my high standards have enabled shady operators to expand more quickly than quality operators can proliferate, but if we’re going to build a healthy network the community and stakeholders must choose the best providers.

u/nixorokish is watching the contentious Arbitrum grants proposal by Lido

View on Reddit →

dang this dao governance vote is the most contentious i’ve seen in a while.

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6b89b74c259d2cc5979c46be6cfe2ae20f9485eee728a628f56930db644da985

Thanks u/hanniabu for making noise about it. i had to go remember if i even have tokens and then had to go check who my delegate was. u/bob-rossi so, uh, which way you votin? you’re my delegate :D

u/benido2030 reflects on the last 2 years

View on Reddit →

Last cycle peaked in November 21. it’s October 23. almost 2 years. Obviously we didn’t know immediately at that time the top was in, but in the end it’s been 2 years of pain, crab and more pain and more crab. A lot of people have left and I can understand them.

I don’t know when things will change. I don’t even know what needs to change. If we knew it would be too easy, but we all know it’s not. But I am sure that something will change at some point in the future and those days will be rewarding.

I guess those who are left here have survived at least one cycle and learned a lot. I was thinking about a „my learnings from last bull run“ post. Are people interested? I would be grateful if some experienced people shared their thoughts and learnings cause we probably all make different mistakes and I think that would help me a lot!

u/cheeky-gorilla shares a cool new thing for genesis stakers

View on Reddit →

Did you know you can easily prove you’re a genesis staker without revealing your associated addresses?

You can see my proofs here, and also generate your own: https://www.creddd.xyz/user/cheekygorilla0x

This was developed by Personae Labs as a way to “bring more verified pseudonymity into the world”, and to help “onchain actors make use of their clout”.

I.e. demonstrate your qualifications before wading head-first into the spicy LSD debate :P

Check out Personae’s Twitter (Nitter) threads on their proof system here:

https://nitter.net/personae\_labs/status/1705237623093264851

https://nitter.net/personae\_labs/status/1711773693289054368

Week #38: October 6, 2023

Livestream Recording | POAP

Guest appearance by James Carnley from EVM File System (EFS), an onchain database allowing trustless access to collaboratively built data and applications. View presentation →

The morning trinity

View on Reddit →

u/Fiberpunk2077

Ethereum

u/Equal-Jellyfish1

$1620

u/696_eth

0.059

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Waking up sober,

That year won’t be mediocre,

Let’s start uptober.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 842,416 (+974)

Pending validators: Joining 7k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

The Fact: u/Thailand_Facts

View on Reddit →

In 1732 the world’s most populous city* was Ayutthaya in what is now Thailand, with a population estimated at 1 million. It was the seat of the Ayutthaya Kingdom, which reigned from 1351 to 1767.

The city could support such a large population because of the prodigious rice production just up the Chao Phraya River. The kingdom was a maritime power that traded surplus grain for luxuries and finished goods, establishing itself as one of the three great powers of Asia alongside Vijayanagar and China.

By 1732, however, its political power was in a slow decline and the capital was destroyed after a 14-month seige by the Burmese. Today, Phra Nakhom Si Ayutthaya is home to 50,830 people and a UNESCO world heritage site in the old city.

Shitpost of the week: u/Sourdoughpretzel4444

View on Reddit →

May it be remembered, NAY written, that upon the 5th of October 2023, thine fellow Ethfinanciers banded together and struck upon thy holiest of dailies a communal post of shits. A shitty post that shall only be shat every now and then, yet still necessarily be shat. For it was written. And if it was written, then it must be so. And for everyone who wrote thine holiest of words, may you be blessED for all of Ethternity.

In the name of Vitalik, Dencun, And the holy trilemma

ETHEREUM

u/superphiz and u/18boro fill us in on Diva

View on Reddit →

u/superphiz:

Diva has launched two community votes that will have a great bearing on their future:

  1. Self-limiting Diva - Should DIVA self-limit to 22%? As a living network, most aligned parties recognize the value in maintaining a healthy balance of operators. This stewardship reduces the viability of attacks and increases the long term resilience of the network. Providers who adopt self-limiting signal their alignment with Ethereum.

  2. Adopt Diva Staking DAO Community Guidelines - These are general guidelines for how the DIVA DAO ought to work, these guidelines make great sense to me and I support them.

You may also be interested to know that DIVA is in the process of vampiring stake away from the largest LST as Danny Ryan suggested in this very valuable talk with /u/evanvanness. Because of my own desire for conflict avoidance, I won’t say much about it, but you can find details here and I believe that /u/nixorokish is eager to talk about it.


View on Reddit →

u/18boro:

Diva, the ETH staking protocol, initiated an interesting vault a few days ago, where you can deposit ETH, or even better, stETH, and accumulate diva as well as the underlying rewards that’s included in stETH. When diva officially launches the stETH will be converted to divaETH ,or whatever they decide to call it, hopefully not dETH :). It’s a sort of vampire attack on stETH, which we obv need more of. So if you sit on stETH, wash off your sins with this one simple trick. The protocol hasn’t officially launched yet and there is no UI which shows your farming rewards and such. The short story is, stakers are divided in tranches based on how early they are, and the earlier tranches receive more diva per ETH/stETH staked than the later. This is obviously risky, it is a novel protocol, but at least the staking is done through enzyme, which has existed several years already.

Here is the staking UI: https://diva.enzyme.finance/#vaults

Here is the detailed proposal, which was executed: https://www.tally.xyz/gov/diva/proposal/45468458207916765916984557235161596151150976178275597160417224501662414206717

u/benido2030 and u/KuDeTa of Aestus relay discus MEV relays being public goods

View on Reddit →

u/benido2030:

I just read this post thanks to the daily doots. I was expecting something like it, cause it was basically announced in the Empire podcast episode 2 days ago.

I know there is a high chance relays at one point will be gone, cause they will be enshrined. But this will not happen any time soon. So we need relays for some more years, but they don’t make any money.

In my opinion relays = public goods. Public goods need funding. Who can we turn to to get some grants to make sure we can keep or even increase the number of relays? Which protocols have (retroactive) public goods funding? Which delegates do we have to pressure to get funds? What else can we do to improve the situation?


View on Reddit →

u/KuDeTa:

u/austonst and I run the aestus relay.

I agree - relays are probably here to stay in some form for years. While enshrined PBS would be great, it’s worth reiterating Auston’s point: making it unbypassable by design is a highly desirable goal.

MEV is a latency game, and centralised MEV platforms like relays are likely to always have a latency advantage over an in-protocol gossip network. This delta in latency is a delta in profit, and so if ePBS can’t ever compete with out of protocol PBS (relays, SUAVE, etc), excepting significant adoption by staking pools (etc) seems unrealistic. At that point it’s utility in the protocol is somewhat compromised.

My sense is that the EF and community are unlikely to move forward until we find a design that meets this unbypassability requirement. It may well be that the current line of research has truly reached a dead end and a fresh approach is required. Unfortunately, It also creates problems for related ambitions such as MEV-burn.

Central public goods funding in the relay space is fraught with administrative and political complexity. Views over censorship are particularly tricky and fundraising is a bit of a nightmare.

On one hand, Aestus is a relatively baby relay - on the other, we are regularly responsible for ~3% of Ethereum blocks. Who should pay to keep our lights on? It may be that relays need to form a market and charge a modest fee to validators. I’d be intrigued to know what ethfinance think about that.

u/SeaMonkey82 is going hard testing on Holesky, not all heroes wear capes

View on Reddit →

Daily Holesky:

Manually configured remote keystores in nimbus v23.9.1 appear to be broken. Log states that the validator is loaded, but it never begins attesting.

--network holesky on ethereumjs now uses the correct genesis, but still seems to be failing to serve deposit logs.

I ended up deleting and recreating the slashing protection database for web3signer in postgres. Having already configured the same validators using web3signer on Holesky v1, none of my validators were able to start attesting when they became active.

Spotted a bug on beaconcha.in. In the Attestation Assignments mouseover for the validator, Executed includes the two Scheduled slots. This was easy to spot when several of my Holesky validators have yet to attest.

I will eventually need to upgrade my storage array for Holesky, but more pressingly, I probably need to upgrade my CPU. With 30 client pairs, the 15 minute load average on my Threadripper 3960X is consitently well above the recommended one-per-thread of 48.

A lot has happened in the last ~36 hours, and there are probably several notable things I’m forgetting right now. I need a nap.

Holesky validator dashboard and links to validators by client pair

u/benido2030 is rallying the community around public goods funding!

View on Reddit →

I really believe in this community. It’s my favorite place and I love the people writing and reading. But I feel we can do more, if we improved coordination. There is so much (financial, vocal, emotional) power that we are not really using yet.

u/austonst both announced that Blocknative has shut down their MEV relay and explained why it’s concerning. Blocknative’s Matt Cutler basically explained the reasons for this in this Empire podcast episode. It comes down to “relays don’t make money, but cost money” (and Blocknative is a company with investors that expect returns - and relays have negative returns).

So what are relays and why are they important? Relays are important for PBS aka proposer builder separation, MEV capturing and specifically for MEV-boost. MEV is every everywhere. Users make transactions and generate MEV opportunities. These transactions are analyzed by searchers, who insert (e.g. add before or after the tx) their own transactions and forward them to builders. Builders collect all tx (from searchers, but also the public mempool) and build blocks with the highest value. Builders then basically forward the blocks to validators (via MEV-boost, a solution outside of the protocol) including the ETH denominated reward they are willing to pay if there block is chosen/ proposed. This is where relays come into play. They relay the blocks and make sure the validator gets paid and the network can’t be attacked. As basically always in Ethereum, decentralization is key, so we need multiple relays. PBS doesn’t work without relays, but there are no revenues, no revenue share, no nothing for relay devs/ operators. Searchers, builders and validators make money, relays are basically the only infra in the MEV supply chain that we expect to work without getting paid.

There are some theories why a small fee wouldn’t work (builders would only use free relays, hence relays with a rev-cut would be excluded most of the time etc.). So in my opinion (retroactive) public goods funding (PGF) is the best way to get it done.

Here’s where this sub comes in! I would like to

- use this communities knowledge to identify potential sources for PGF

- see if we as a community can influence how funding/ grants are distributed (e.g. if governance tokens we all own can vote for an application)

- use our voices to spread the word about the importance of relays and why funding is essential

For example there is Optimism’s RPGF. If Ethereum doesn’t work, OP as an ETH L2 doesn’t work. In my opinion it’s a nobrainer that u/austonst and u/kudeta (who run the aestus relay) should receive OP funding, but we all know that’s not how it works. But if our OP delegates (u/liberosist, u/_weboftrust, u/minimalgravitas, u/pseudotheos and more) coordinated, I am sure their voices can make a change.

I have no idea how the EVM treasury is doing, but maybe we as EVMs can come together and think about ways to support relays in general and the aestus relay specifically.

u/kudeta: You said yesterday that applying for all these grants and funding was complex and a lot of effort. If you want me to help, I am more than happy to e.g. sign-up in the name of the aestus relay for the OP RPGF round 3 and / or gitcoin grants. I have never done something like that, so it might not be perfect but of course I would coordinate with you to make sure the aestus relay is presented in the correct way (on every level). Obviously this would be completely free for you.

u/MinimalGravitas wants to see some more community pushback and comments on the Lido Arbitrum grant proposal

View on Reddit →

Paging u/bob-rossi, u/dmihal and any other Arbitrum delegates.

I’m interested in seeing some commentary from EthFinance’s representatives over on the Arbitrum governance forum with regards to the request from Lido for 5 million ARB tokens to, as hanniabu so perfectly puts it, bankroll Lido’s attack on the network.

Using the influence we have across different DAOs seems like a simple no-brainer way we can help protect Ethereum from capture. We held off their proposal on Optimism last year, I would love to see the same again this time.

[Insert stirring backing track, e.g. From Hell To Glory by End of Silence]

If you don’t want your DAO to pay to incentivize the growth of Lido then now is the time to say so.

This is a moment when governance can really matter. When the social layer actually has a decent amount of power. When you can make a difference to the future of this ecosystem.

It takes some courage to put yourself in the firing line, to voice an opinion against one of the most powerful entities in Ethereum. It maybe feels like a foolhardy risk to stand in the way of a juggernaut worth billions of dollars, but the alternative is that everyone rolls over and lets the credible neutrality of our network be stolen away, and with it will go the possible future of Ethereum as the base layer for not just the financial system but for global coordination.

We must not let Moloch win.

The cold war with Lido will be long and hard, and this is just one of many battles, but it is the one we can impact now, and it is one we can win.

Ultimate victory depends on us not losing every battle. It depends on us not giving up anything without a fight. And we must be victorious, because in the long run, without victory there can be no survival for the dream of a future that Ethereum represents.

[Music reaches crescendo, screen fades to black and soundtrack rolls into roaring Merlin Spitfire engines tearing past and into the distance…]


Arbitrum Proposal →

u/etherbie shares a cool new base layer privacy EIP and u/haurog explains it

View on Reddit →

u/etherbie:

Damn. Eip 7503 burn and remint sounds amazing for privacy. I don’t know how govts are gonna react to this though….. I think the correct answer is “Who gives a f@ck” ……. interesting times though


View on Reddit →

u/haurog:

It is even better, almost any address can be a burn address. You just have to proof that you know a short number whose hash is equal to the public address. This means there is no possibility for the sender to be sanctioned as there is no on chain proof that the address you sent ETH to is a burn address. The receiver side is a different story, there it is as far as I know obvious that the funds received used this scheme. The last all core devs call had a longer discussion about it and one person advocated to be more cautious and not to use these kind of zk circuits on L1 just yet as they are rather untested and previous iterations of similar schemes had bugs. In the longer run this scheme is definitely so amazing and I am a big believer that privacy needs to be part of the base layer.


EIP 7503 →

u/Dreth warns of the friend.tech sim swap

View on Reddit →

People getting sim swapped and drained in friend.tech, be careful

https://x.com/darengb/status/1709021872178729409

I was just SIM swapped and robbed of 22 ETH via @friendtech

The 34 of my own keys that I owned were sold, rugging anyone who held my key, all the other keys I owned were sold, and the rest of the ETH in my wallet was drained.

If your Twitter account is doxxed to your real name, your phone number can be found, and this could happen to you.

Earlier today I started getting spammed with phone calls every minute, which caused me to put my phone on silent (which I guess was the point) so I did not see the text from Verizon telling me that someone was trying to access my account. It happened very quickly, Verizon barely gave me any time to respond.

I opened FriendTech and thought there was a bug because my Chat was empty, I tried looking at Octav and then saw someone else’s tweet about SIM swapping on FT and that’s when I realized what had happened.

Tagging anyone who held my key here, I’m so sorry about this, I know that it looks like I rugged you all, and I’m not sure how to prove that I did not. I am devastated.

https://x.com/zachxbt/status/1709031117121003710

got swim swapped for 20+ ETH (they drained my http://friend.tech)… stay vigilant out there bros

set a PIN on your sim even if you don’t think you need to

sorry for the x links, it’s where i saw it

u/reno007 starts a conversation on the next big use case to drive value to ETH with a lot of amazing replies

View on Reddit →

For those confident we’ll have another bullrun, what will drive the eth price up? Previously we had ICOs, then defi/yield farming and then NFTs. Is there anything left? Also fees will be lower due to L2s which may actually be negative for the eth price unless L2 activity goes 100x.

u/2Nice4AllThis has a motivational speech for us on our digital voyage

View on Reddit →

Hear ye, hear ye, valiant ethfinancers and mavs alike!

In the age where brave explorers charted unknown seas and distant shores, pioneers sought realms untraveled and dreams untold. So too do thee, devoted custodians of Ethereum, navigate a bear most relentless and the intricate dance of the crab market.

But be of stout heart! Though the bear casts shadows and the crab sidesteps, Ethereum’s beacon shines unwavering. As history reminds: after the stormiest nights, dawn’s embrace is most warm. Thus shall the Ether rise, unyielding and proud, amidst these tempests.

Stand firm, intrepid ethereans! Let not the market’s capricious winds sway thy resolve. As a new horizon beckons, Ethereum’s legacy shall illuminate the ages, its tale a beacon for all who venture in the digital realm.

In unity and steadfast spirit,

Thine ally in the digital voyage.

Week #37: September 29, 2023

Livestream Recording | No POAP

Weekly Doots →
Week #36: September 22, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/ScribbleButter

Ethereum?

u/hanniabu

$1595

u/the-A-word

0.059

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Elliptic signing,

With or without mining,

Quietly shining.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 812,379 (+2,545)

Pending validators: Joining 27.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/PhiMarHal

View on Reddit →

Sing Muse, of Justin, brave founder hailed,

Who saw the crypto market begin to fail. As Bitcoin and altcoins together crashed,

Investors panicked, portfolios all dashed.

But Justin held on, like Atlas of crypto lore,

Supporting coins galore against all odds and more.

His steely vision and iron-willed determination

Gave desperate holders glimmers of elation.

When Bitcoin fell below 20K again,

Justin boosted morale, quelling women and men.

“Have faith!” he cried, “I shall stop this loss!”

Rallying his allies whatever the cost.

Across exchanges and threads Justin’s voice rang out,

Buying the dip without hint of doubt.

For the whole bear he carried the market’s weight,

Enduring the pressure of whales and fate.

So The Sun’s legend shall endure through the ages

For His Excellency fought market wages.

For crypto to thrive again as it one day must,

Stalwarts like Justin in it place their trust.

u/haurog shares the things he is looking forward to

View on Reddit →

ethfinance activity seems to be in a bear market as well and the crab gets to some people. Nevertheless, I still am very positive about the next few months in Ethereum. Here are a few things I am looking forward to:

u/nixorokish breaks the news of the staking deposit churn limit EIP being included in the next hard fork

View on Reddit →

The decision was made during the ACD call today to include EIP-7514 in Dencun, which sets a max churn limit for the activation queue (note: does not affect the exit queue).

What’s been happening up until now is that the more validators that are in the set, the faster they can get added (the math is here: https://benjaminion.xyz/eth2-annotated-spec/phase0/beacon-chain/#get_validator_churn_limit).

This keeps the network stable and makes the size of the validator set somewhat predictable. Since the validator set has been growing a lot since Shapella, this number is getting bigger and bigger and the network is growing faster and faster. EIP-7514 caps the number of validators that can be added each epoch at 8.

I believe that there could be some controversy about this over the next few days because it was created and added quickly but Dankrad published a post today on why he supports it and he says everything more eloquently and with more context than I could, so have a read of his post here: https://notes.ethereum.org/@dankrad/churn-limit

u/jenkempuffer shares an interesting new EIP

View on Reddit →

https://eips.ethereum.org/EIPS/eip-7503

This EIP is interesting.

Base layer privacy is definitely something that’s needed for adoption imo. Especially as forensic tools and tracking get better over time and transaction data remains on-chain forever it will be easier to dox and link wallets. Hard to see regular people wanting to use Ethereum if that’s the case.

Private ETH defs a good thing but maybe this EIP will introduce some additional risk (minting and burning ETH at base layer might have previously unthought of attack vectors). I’m not big brained enough to interrogate the code.

Anyone here have some thoughts on this EIP?

u/LowieVR starts a discussion about Ethereum’s long term future regarding ETH issuance and gets some great replies

View on Reddit →

Anybody got some wise predictions on gas fees in the future? Seems right now that gas fees are low, which makes eth inflationary, which makes it not a ‘sound business’ anymore according to https://tokenterminal.com/leaderboards/earnings in past 7 days.

u/cryptOwOcurrency warns of the latest trend in Twitter scams

View on Reddit →

Twitter scams are getting more and more elaborate.

The latest one is where they create a fake @MetaMask twitter account, then take a whole month to build up their post history by copying every post of the real MetaMask account. During this month, they also gradually build their follower count through bots. Of course, Twitter does not detect any of this activity as suspicious because they have entirely lost the plot.

If you were to glance at the twitter account, you’d see an account with tens of thousands of “followers” and a post history that scrolls on and on for many pages. Looks pretty damn close to the real MetaMask account.

Stay safe.

u/Tricky_Troll gives Gary the middle finger

View on Reddit →

Gary Gensler is what is wrong with America. Here we have a man, who clearly has a good grasp on blockchain as evidenced by his history teaching it at MIT. Yet despite this, he decides to completely contradict his previous teachings in favour of at best furthering his own personal political ambitions and at worst outright corruption in an effort by an invisible hand to stamp out crypto.

Classic 4th turning and fall of empires stuff right here. The ubiquity of wealth and excess surrounding him and his generation throughout their lifetime has left those that wish to participate in politics and influence devoid of values upon which his once great nation was built. In place of these values are the primal instincts of greed, power, pleasure and self preservation which are the fruits which can be attained from corrupting such rich and powerful institutions. These people are devoid of morals and will lead us down the path towards authoritarianism and collapse as seen time and time again throughout history, Rome and Weimar Germany being the most obvious.

In short, fuck you Gary, this is all your fault.

^(Obviously there is a degree of hyperbole here as there are other factors at play too like demographics, but at the same time the writing is on the wall and despite having learned from history, I can’t wait to watch it play out in a very similar way again thanks to those who haven’t learned from history. While that may be a call for me to step up and try to be one of the great men in history, I’m not convinced that my qualifications are up to scratch. I should’ve studied politics or something.)

u/vedran_ checks in after a few months away

View on Reddit →

Yo ETH fam! I’ve been away from crypto for a few months, but not like I expect you to remember me. Today I’ve been scanning L2 landscape changes, DeFi and airdrop hunting possibilities.

Base took off fast, my golly. First in TPS today, third in TVL. How did that come about? Did they mention an airdrop? How stable is it? I get that fraud proofs are not developed yet.

I’m a fan of single-side LPing. No impermanent loss for me, thank you very much for offering. I see there are some new possibilities for it on zkSync Era: EraLend, Reactorfusion, ZeroLend. Cool! APY on ETH and USDC is <2%, but it’s nice to park some spare tokens, waiting for an airdrop.

Rhino.fi surprised me pleasantly. 10% APY on ETH in one pool. Left some ETH there a few months ago - I’m not disappointed.

I’d like to use this opportunity to thank Optimism!

I see it’s a bit gloomy in here. As somebody who’s been in the game for quite a while now - this is the easiest bear ever! We are above 2018 ATH ^^if ^^you ^^ignore ^^inflation. But most importantly, development is phenomenal! L1s becoming L2s on Ethereum! You mentioned Canto, Celo, Fantom, Gnosis yesterday. Just waiting on Solana and Cardano to pull the trigger. Ethereum has become what it promised to be. Front page of L2beat is a thing of beauty! We are cemented, baby! This may very well kill ETH killer narrative in the next bull.

u/LogrisTheBard continues his detailed discussion of governance tokens

View on Reddit →

I wrote recently about multicameral governance designs. The responses that have come up in response to that post have taken 2 forms:

  1. Isn’t this going to devalue the governance token? What is the point of a governance token that only has a minority power over governance? I talk about that here.

  2. Voter participation sucks and we need to concentrate power to make anything work around here. Let’s dive in to that.

Most DAOs today have a voter participation rate of less than 20%. Even when delegation is supported the delegates themselves aren’t all particularly great at participation and need a cat herder to get much done. The exceptions to this rule are DAOs where there are regular votes and where voters get paid extra by voting.

Two examples that come to mind for this are Kyber Network and Curve. Kyber Network directly rewards voter participation. You can see the rewards for current and past votes here. Curve is a bit more indirect in that only a subset of governance decisions come with monetary compensation and that compensation is indirect through bribes. This one is a more complicated topic I dive into a bit here.

An interesting footnote about the Curve participation is the ve system and admin fees that are optimized by pairing veCRV with liquidity has led to liquid lockers (yCRV, sdCRV, cvxCRV, etc) to optimize revenue. These liquid lockers have a side effect of concentrating voting power. As a consequence of that Curve has outstanding voter participation amongst its tokens but a relatively low Nakamoto coefficient.

One clear lesson that stands out from both of the above examples is voters participate better if there are regular votes that they are paid to show up and participate in. Outside of the obvious incentive alignment that comes with compensating voter participation, voter participation increases when:

  1. Voting is cost-minimized

  2. Their vote is perceived as being more impactful on the outcome

  3. They have something to lose

Drawing a parallel to elections to nation states. US voters are more active when:

  1. Their state supports voting by mail and other mechanisms to make voting more convenient

  2. They live in a swing state or a state without first-past-the-post electoral college rules

  3. They are voting on an issue that affects them more personally (e.g. women vote more actively when abortion is a hot topic). Bribery is seasonal along the same lines (e.g. the NRA donates more when gun rights are a hot topic).

For blockchains, cost minimization is a matter of off-chain message signatures rather than L1 transactions like Maker has. There’s not much we can do for the second point without concentrating power and sacrificing voter participation but contentious votes having higher participation is a natural phenomenon.

The last thing we can do is create something to lose for each vote. This comes in two flavors. First, we can use bonded KPIs to attach something at stake to each vote. The basic concept of a bonded KPI is simple. You bond your influence against a prediction during a commit round each cycle (e.g. quarterly, yearly, etc). The bonded influence is the only influence eligible to vote. Your vote goes into effect immediately but your prediction is kept secret during the cycle. At the end of the cycle, everyone reveals their prediction by posting a decryption key. Then a decentralized one-shot oracle like UMA provides a value for the metric. The bonded influence is redistributed based on the relative accuracy of everyone’s predictions. Finally everyone claims their influence from the bonded KPI and the next cycle begins. The result is that influence will trend towards those best at making predictions. I suggest the skill of making accurate predictions is correlated with competence at voting well. When combined with a value-aligning selection criteria for initial influence to bond, we end up solving the stated goal of selecting a rational, informed, value-aligned set of voters that vote on the most important issues of the day.

This system breaks down where someone can have enough influence over the metric to predict that very bad things will happen, ensure they do, and be rewarded for doing so. This is similar to how “assassin” prediction markets work or why we don’t let athletes bet to lose their own match. In that case I’d suggest the DAO might just have to dissolve that governing body and form a new one without that bad actor. It’s a thorny problem for sure.

The second flavor is an inactivity leak for not voting. For tradable tokens this isn’t viable unless you somehow ensure all forms of LP token (e.g. Uniswap NFTs, Aave aTokens, etc) are also eligible to vote. However, this system is more viable when influence is not an ERC-20 token. In that case, getting influence in a governing body is a bonus perk of something external to the governing body. Once you’re in, unless you’re doing active work for the governing body your relative influence should decay. In broad terms the active work of a governing body is to continually do the things the issuance selection criteria select for and to vote well. I think it’s therefore fair that if someone is voting poorly (see KPI above) or not using their voting power regularly they should lose that influence. A DAO is ill-served by having a large voter base of inactive/inattentive voters, even if they delegate. Measuring voting activity is much easier than measuring vote quality.

An implementation of inactivity could resemble something like Ethereum’s where the higher the percentage of the existing voters are inactive the higher the turnover of influence should be. This creates something of a market-based approach to encourage voter participation. The end result is create higher turnover of the governing body to one consisting of active participants and then to pay them for the hard work of voting well. By the numbers we have, this is how you actually build a DAO and not just a fundraising mechanism.

u/ajmonkfish shares an article from our very own u/pbrody

View on Reddit →

Great little article by u/pbrody on coindesk today.

https://www.coindesk.com/consensus-magazine/2023/09/19/eventually-we-are-all-ethereum/

TLDR; All your chains are belong to us, om nom nom.

u/PhiMarHal summarises a tweet thread on the Lido problem

View on Reddit →

This tweet by Ryan Berckmans is a great summary of the Lido situation, in my opinion.

https://twitter.com/ryanberckmans/status/1704192307270975643

It boils down to two logical inconsistencies:

  1. no CEX is in the run to dominate staking. Data doesn’t support that theory. To assert it as fact is gaslighting.

  2. if a winner-takes-most structure is inevitable, why is Lido spending enormous LDO bribes through the entire ecosystem to this day?

The data here is even more damning than for CEXes. No LSD is a credible competitor to the tune suggested (a winner-takes-most scenario does not merely imply a competitor would catch up, it would also suggest that competitor’s size towers over Lido at least to the current extent Lido towers over the competition).

As long as those logical inconsistencies are core points of the Lido thesis, there is a problem with Lido.

Week #35: September 15, 2023

Livestream Recording | POAP Checkout

Announcements - Tickets for Staking Gathering at Devconnect Istanbul are now available featuring speakers such as Danny Ryan, Justin Drake, Sreeram Kannan, Michael Sproul, Jim McDonald, and many more.

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/alexiskef

1629

u/696_eth

0.061

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

There’s nothing to hide,

Privacy can’t be applied,

As you’ve never lied.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 796,700 (+2,353)

Pending validators: Joining 36.2k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/cryptOwOcurrency

View on Reddit →

Vitalik’s twitter account was hacked. It’s all over. Everyone please start panicking.

This is lesser-known, but Ethereum’s consensus mechanism depends on a Twitter integration with Vitalik’s account, so it’s likely the Ethereum chain will halt within a few hours. I don’t know if the client teams will be able to implement a workaround for the Twitter dependency in time - Ethereum’s Twitter integration was supposed to be removed as a vestigial feature in the Merge fork but I guess the devs didn’t get around to it.

I really hope Charles Hoskinson still has access to the manual override key and is willing to use it to recover the chain. The only other person I know of with the Ethereum admin key is Sam Bankman-Fried, and he won’t be able to save us this time for obvious reasons.

If we can’t get either of those admin keys, we’ll have to ask Elon Musk to go into Vitalik’s account to turn Ethereum off and back on again for us. Please send thoughts and prayers everyone. ❤️

u/SikhSoldiers points out that Lido is going against one of its core principles set forth by Paradigm

View on Reddit →

It boils my blood that @LidoFinance thinks fit to go against one of the founding lido principles set forward by @paradigm.

Governance is and always has been the existential risk that Lido presents. Dual governance is a bandaid solution, not any kind of permanent one and is very fallible.

As long as LDO governance can control the validator registry, LDO should not exceed roughly 33% of the network. There is no hard line here because the threat isn’t based on any hard line.

The threat is that LDO slowly gains a subversive power over Ethereum due to its ability to threaten node operators with the boot, a very powerful threat that @gakonst rightfully points out all those years ago.

The staking router and the coming forced exits upgrades will further exacerbate the issue. Both will increase the power of LDO token holders over the node operators. Forced exits especially worries me as it has been touted as their solution for keeping their permissioned node operators in line.

Governance is a weakness, the existence of a threat is the problem itself. We cannot rely on LDO holders to be good stewards, not even with stETH veto power.

The apathy and bureaucracy of DAO governance is too powerful a deterrent for vetos to reliably work. The only solution is to remove the threat completely.

Georgios goes on to write “If said pool is sufficiently governance-minimized, it could possibly win the entire market without causing any systemic risk for Ethereum.”

Where’s the minimization frens???

ln April of 2022 I published a now deleted thread called “A Case against stETH” where I explained why neither DVT nor social scores for permisionless node operators would work to scale their node operators set fast enough for the rate that they were growing their stake.

The entire thread stands true today. The recent @NethermindEth report suggests using a Kleros court to judge Sybil cases. That’s a joke when nation states are out here human trafficking and dedicating billions to hacking/exploits/evading Sybil detection. If Lido messes up their Sybil implementation, we could find ourselves with 10-15% of all Eth staked sitting in North Korea in a Sybil farm of node operators with 0 capital bond.

Lido should self limit not because of any consensus attacks, they should self limit because $stETH is growing faster than they can decentralize and research ways to safely introduce permisionless nodes without jeopardizing the network.

Don’t let their campaign fool you, @LidoFinance has not shed any of its governance functionality—in fact it plans on growing it.

This is the danger of $stETH dominance.

https://www.paradigm.xyz/2021/04/on-staking-pools-and-staking-derivatives

https://web.archive.org/web/20220414205449/https://twitter.com/Jasper_ETH/status/1514708562244784131

u/benido2030 shares their favourite recent podcast episodes

View on Reddit →

+++ Benido’s favorite podcasts episodes +++
Some weeks ago I started publishing some podcast recommendations featuring interesting episodes. Since I enjoy podcasts I thought it might be a service to the community to highlight those I really liked (or maybe disliked? Let’s see what the future brings). It’s not a real summary, so if my thoughts make you curious, you might want to jump in to listen to the full episode. They are always linked in the headline.
Here is a list of all the past posts:

Benidos favorite podcasts no.1

Benidos favorite podcasts no.2

Benidos favorite podcasts no.3

Now here are the new ones I really liked from the past couple of weeks. Interestingly they are all very technical and let me be honest… I sometimes couldn’t really follow the guests/ hosts. I think they are all great, but in these cases I would really recommend taking some dedicated podcast time with 100% focus.

Bankless: Scaling Ethereum To The Next Level with zkEVM feat. Justin Drake and Brian Retford

Maybe you remember a post from u/liberosist talking about the different types of zkEVMs there are (I tried to find it but couldn’t). This podcast basically talks (partially) about this. Since this is fairly technical topic, it’s moderated by Justin Drake and RSA is more or less downgraded to listener.

This includes how L1 might become a zkEVM in the future based on some of the developments in the L2 landscape and the positive side effects this might have (e.g. lower hardware reqs for validators).

I think this episode is pretty good and a great addition to the sci-fi roadmap episode from ethcc since it’s very forward looking, but in the end this is why we are here, right?

Epicenter: Frontier Research - Solving Ethereum’s MEV Problem feat. Stephane Gosselin

This episode is a pretty good one if you are into MEV. Stephane Gosselin was one of the flashbots founders and has left the project some months ago. In this episode he talks a little about the MEV landscape, his impact and how he would rate it (interesting answer here!). On top he gives some insights into his new venture “Frontier Research”.

One major topic is RFQ = request for quotes and intents, but they also tackle PBS, MEV burn etc.

I think you need a pretty decent understanding of MEV to be able to follow this episode. If you do, this is 60 minutes+ of very good content, especially since Stephane knows flashbots, but is not 100% aligned, but going down a new (and much needed?) experimental road.

Uncommon Core 2.0 - An Incomplete Guide to PBS feat. Mike Neuder and Chris Hager

PBS or proposer builder separation has been around since a year or so. This episode features Mike Neuder (from the EF) and Chris Hager (from Flashbots), which is a pretty good panel since it the main parties involved came together.

The first hour or so is a discussion, the second part is a followup discussion with only Hasu and Jon. My take away: PBS is a design philosophy/ space. What does this mean? When I first learned about it I basically thought PBS was designed, the scope was clear and we only needed implementation. I think the conclusion after this episode is that this is not the case. There are a lot of different implementations possible and it’s not even clear if ePBS (enshrined PBS) is the way to go.

u/eth10kisfud since we talked about MEV burn yesterday. This is the episode that led to my answer.


Benido, this sucks, this is all so technical, why didn’t you include a podcast I can just listen to on my way to work or in the gym and if I blink I can just continue listening? Well I am glad you asked, because I got you covered!

Bonus: The Chopping Block - Coinbase’s Paul Grewal on Why the SEC Is Going After Crypto So Aggressively

This Chopping Block episode is a pretty good summary about “The SEC vs Crypto and Coinbase”. I liked it a lot because I think Paul Grewal is a pretty cool guest (Paul is Coinbase’ Chief Legal Officer) and he pretty transparently explains why Coinbase acts in the way it does.

I am not sure the speculation about Gary Gensler’s motivation is the best approach, but the rest of it is a very good summary and includes some industry insights that I think are a very interesting and if you didn’t follow as closely this episode is the one you wanna listen to.

This is it for today, but I already have picked one podcast episode for the fifth edition! Let’s go!

u/Newman513 talks about methods to mitigate issues from the ever growing validator set

View on Reddit →

See some chatter in here today about the late-stage proposal to limit the validator churn limit for inclusion in Deneb. I’ve been following this relatively closely since I think that this has the potential to brew into a CAT5 storm for the 250 of us that are terminally online and plugged into Ethereum development drama.

I first became aware of “the issue” during ACD 113 (bad news always comes on the 13th) - tl;dr on the issue (parroting Christine Kim, because she can summarize better than I can):

A large validator set size is undesirable because this increases the computational burden on validator nodes and creates complications for implementing future code changes such as single slot finality.

Without a countermeasure in the next 9-10 months to address validator set size growth, @mkalinin2 said that the computational load on nodes could increase 3x with the increased volume of messaging on the networking layer.

What are some possible solutions?

Looks like option 3 is being pursued in the short-term, if only to buy more time. I think that this is a phenomenal example of just how fragile Ethereum is, and why even 7+ years in it’s critical to be mindful of introducing systems on top of the protocol that bring with him considerable unknown unknowns! Think Eigenlayer - love the potential innovation, but a stage-gated slow rollout to understand the intricacies of the interdependencies that new primitives introduce is preferable to me, and I’d argue responsible, particularly when building on top of something so unsteady that’s managed to command as much economic importance as Ethereum has since it’s inception.

Will get off my soap box - y’all are on the same page. Hopefully the summary & sources are helpful!

https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-113/ https://twitter.com/christine_dkim/status/1679873847665868800 https://www.galaxy.com/insights/research/ethereum-all-core-developers-consensus-call-117/ https://twitter.com/philngo_/status/1699805844748030383

u/LogrisTheBard has another great discussion on DAO governance

View on Reddit →

I wrote recently about multicameral governance designs. The responses that have come up in response to this post have taken 2 forms:

  1. Voter participation sucks and we need to concentrate power to make anything work around here. I’ll address that a bit in a different post.
  2. Isn’t this going to devalue the governance token? What is the point of a governance token that only has a minority power over governance?

I’d like to take a few paragraphs to discuss what I think the rights and responsibilities of permissionlessly tradable governance tokens should be in a multicameral governance structure.

Among most modern DAO designs there is usually a singular governance token. This token usually serves two purposes. The first, as the name implies, is it acts as a force in governance. The second is it serves as a fundraising tool potentially by multiple mechanisms such as ICO, bond, inflation schedules, or call options. There are a few other minor uses as well that I go into here. When people buy this token they do so with the expectation that they have a claim upon the future profit of the system the DAO governs. Ultimately, greed fueled speculation is what gives governance tokens most of their tradable value.

The abysmal governance participation we see for most DAOs today is a strong indication that the governance power of governance tokens is not the primary source of their demand. Therefore, adopting a multicameral governance structure and diluting this governance power should not overly affect the usefulness of a governance token as a fundraising mechanism.

That said, care must be taken to protect the contractual rights of the governance token for its primary purpose. If clarity on this is not provided, investor confidence will wane, and the DAO will quickly find itself unable to raise funds by issuing tokens. At that point the DAO either must have a self-sufficient product, rely on charity from necessary participants, or watch as necessary participants stop doing their necessary work and the system fails.

One guarantee the DAO can provide to the governance token holders is to escrow the treasury funds directly within the governance token governing body (the capital module). System profit should be automatically sent to the treasury. At minimum, since each governing body controls its own state, this gives the token holders the ability to revoke token approval to these funds to the parent DAO. This guarantees those token holders a contractual right to the treasury should the DAO dissolve or they want to revolt. All they have to do is pass a policy to pay out the treasury to themselves.

Another guarantee the DAO can provide the governance token holders is to make it very difficult for the parent DAO to change any fund flow related policies without their approval. The capital module needs to have confidence that their power over the purse can’t be whimsically revoked. Different types of proposals in the parent DAO can potentially have different rules required to ratify them. This is also consistent with granting governance power over topics to those it affects the most. The governance token holders are those most affected by changes to monetary flows and should have a greater say on changing certain parameters related to that than other governing bodies. This satisfies a design goal of fairness.

The last guarantees all come from the ability of each governing body to maintain its own internal state. The parent DAO can only invoke functions on the governing body contract that it allows. Any control over these matters the capital module grants to the parent DAO are inherently revocable. This gives the capital module ultimate control over the issuance of the governance token and all matters dependent on that such as how to incentivize liquidity depth for the token, how to structure bonds, its inflation schedule, etc.

In summary, it is my belief that so long as the governance token holders have faith in the future revenue of the system and their claim right to it the token should retain value. So long as it has value it can serve its primary purpose as a fundraising mechanism. I don’t believe diluting the governance power of these tokens will destroy their value, but I do think it can lead to a DAO that is more resilient and likely to succeed in the long term for reasons stated in my previous post. The main ingredient we’re missing to try this somewhere is a guinea pig and a fairly small software package. I think it’s a much better direction than what Rune is doing to Maker with “neural tokenomics” for example.

u/somedaysitsdark starts a discussion after a recent block proposal

View on Reddit →

I posted this to the EVM discord, but figured it would be healthy to blast here too:

I proposed my fourth block recently 🥳. But because my mev-boost min-bid is set to .05, if I don’t receive any bids higher than .05 my client builds the block itself. That is working fine, so far 3/4 of my blocks have been homemade. But, my most recent block had my first tornado cash transaction in it.

I’m just annoyed by regulatory lack of clarity on whether or not I should care as a US operator.

I could run mev-boost with no min-bid and point it at only ofac compliant relays is what the government might say in the future?

What happens eventually once we have proposer builder separation? That’s the plan right? I’m not super familiar with how that works.

If US validators ‘currently’ aren’t held to KYC regulations- which I believe is accurate, then we shouldn’t care at all even if someone wants to transact with an OFAC-list address? Maybe that is a bad assumption.

If I need to be OFAC compliant, then I need to know for sure. That way I can either just do it, or move my server out of the country? Would that even be sufficient? Even Coinbase still validates non-compliant transactions, or so I’ve heard, I haven’t actually confirmed this. I’m gonna go look.

According to this blurb, they run some validators without mev-boost deliberately to prevent censorship: https://www.coinbase.com/cloud/discover/news/earn-pbs-enabled-mev-rewards-with-coinbase-cloud

Prime and retail Coinbase users are opted in to mev-boost automatically btw.

Just starting to peep etherscan to see what the big exchanges are doing:

Recent Kraken block (18122994) with tornado cash transaction

Recent Binance block (18121064) with tornado cash transaction

Recent Coinbase block (18120973) with tornado cash transaction

Most I’m finding are Lido blocks, but that is hardly surprising.

u/TheHansGruber and u/FutureofEverythingz checking in from Permissionless 2023

View on Reddit →

u/TheHansGruber:

I’m here. Venue is awesome, probably a little bigger than necessary but it’s better to have the space then not. The main talks haven’t had any real alpha so far, lots of wagmi and “down bad, haha” talk. The regulatory panel was fun to watch, but again, no pertinent info was learned. It was inferred that for any reasonable change in the regulatory situation, Gary would litteraly have to just wake up on the “right side of the bed” one day. And no one on the panel suggested they thought it was likely. Legislation (in the US) needs to be passed. Rep. Emmer was hopeful on this.

Swag game has not been as good as ethdenver or devcon. But we are in the depths of the bear, so…..

Rainey street crawl was last night. I’m not a bankless citizen so I didn’t go to their closed event. Had a Hella good waygu smash burger at a place across the street though.

Overall, it’s still fun to be spending a few days with so many like minded people in a fun town. Bear market conferences are the best for this reason. Only the real degens are here. If any actual news or info is discovered I’ll be sure to drop it in here.

Next year’s permissionless is on the books for October 9th-11th 2024 in salt lake city.


View on Reddit →

u/FutureofEverythingz:

Hanging out with u/the-A-word and u/jtnichols at Permissionless II. Taste testing some early offerings from JT’s smoker and talking DAOs, solo staking, and the history of r/ethfinance. No reason to go to the main event like I planned, too much fun.

👋 I’m a 🇨🇦 and longtime ETH community member currently building sobol.io Also am early contributor to BanklessDAO plus tons of other DAO communities (total DAO need).

Nice to find the daily because my Twitter feed is pure noise. Thanks for the gift of gud BBQ and good vibes today 🙏

u/asdafari12 comments on the pros and cons of possible government actions

View on Reddit →

I would rather the US not allow spot ETFs than red-tape defi, which is basically what is happening with the proposed rules that are perhaps impossible to follow. ETFs are probably great for price action but they aren’t crypto.

I remember how excited I was in 2020 about synthetic stocks, defi, insurance, gambling and other use cases happening on Ethereum. Now we know that synthetic stocks are a massive regulatory no-no. I am overall happy about what is possible in defi but it looks like all frontends will require KYC in the future (for US users at least). We are lucky that an exception was made for validators. They wanted KYC of all TXs, which is obviously not possible. That’s one of my issues, it has become obvious that regulation doesn’t come from a fair, logical and neutral point. It’s a bit of a circus and impossible to guess what will come.

u/alexiskef introduces MetaMask snaps

View on Reddit →

🦊 I just got a Metamask email, informing me that Metamask Snaps Open Beta is live!

🔥 Here is the announcement on the MM Blog 🔥

MetaMask Snaps allows users to customize their MetaMask wallet. But what is a Snap? Individual Snaps are features and functionalities created by third-party developers that you can install directly into your wallet.

Metamask says that: All Snaps available in the directory today have been audited by the Metamask team and third parties. Our decision to have an allowlist was made both out of an abundance of caution, and because we have ideas for how to add additional safety for a permissionless model that will take longer to implement. Over time, we plan to open up the auditing process to create a fully permissionless platform."

More info can be found on the Snaps FAQ

Users can now install 30+ Snaps across three main categories:

1)Transaction Insights

Saferoot, Assets Risk Detection, Forta, Kleros Scout, Threat Intel, Blockfence, Wallet Guard,Tenderly TX Preview

2) Interoperability

Solana Wallet, Algorand Wallet, Sui Wallet, UniPass, StarkNet, EthSign Keychain, Tezos Wallet, Leap Cosmos Wallet, Connect by Drift, Vega Protocol, CubeSigner, MinaPortal, Aptos Wallet, Rarime, Cosmos Extension, Identify, Masca, Arweave Wallet, Zion, Partisia Blockchain, ShapeShift Multichain, Sign in with XMTP, Casper Manager

3) Notifications

Walletchat.fun, Push V1

edit: tried to install Forta, failed. Tried to install Arweave wallet, worked flawlessly!

u/haurog looks into the future of Gnosis chain

View on Reddit →

Some time ago we had a discussion here about gnosis chain and its future. Today I watched two talks from DAPPCON23 by two gnosis developers/researchers. They seem to look into possibilities of becoming a validium L2 to Ethereum. This is all very exploratory and nothing has been set in stone. As far as I understand they could write checkpoints to Ethereum and keep the validators as is for data availability. This seems to need a lot of more work and especially making it trustless seems to be a bit tricky. The approach they are looking into now seems to be more taxing to the validators as they would need also need to be able to verify the Ethereum chain at the same time. There seems to be some ways around it though. Ethereums future looks quite good to me, everyone thinks about becoming a rollup/L2.

The first talk is by Philippe Schommers and talks generally about the future of gnosis chain towards the end he talks about possibilities of turning gnosis chain into an L2.

The second talk is by dapplion which describes in detail the approach they are looking into at the moment.

I hope the youtube links work as the videos are still streaming youtube seems not to like to link to a timestamp directly. It worked for me.

Week #34: September 8, 2023

Livestream Recording | POAP Checkout

Guest appearance by Lantern Finance, a KYC American-based staking provider.

Upcoming Guests

The morning trinity

View on Reddit →

u/hehechibby

Ethereum

u/UgotTrisomy21

$1649

u/Vinegar_Strokes__

0.0627

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Ever since the merge,

Block production converge,

Distrust too may surge.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 780,933 (+2,004)

Pending validators: Joining 44.4k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/-FilterFeeder-

View on Reddit →

There once was a burly crustacean

who would not brook a price aberration.

It made the charts boring,

so instead of just snoring

I packed up and went on vacation.

u/barthib shares some big news which was almost missed by this sub!

View on Reddit →

This forum must be very dead to totally ignore this nice news:

U.S. Court calls ETH a commodity while tossing investor suit against Uniswap

u/MinimalGravitas posts their idea for reducing Lido risk on Ethresear.ch and u/nomad-nuance replied with their thoughts

View on Reddit →

u/MinimalGravitas:

I’ve finally turned my idea for reducing the risk of Lido’s dominance into a post on Eth Research:

https://ethresear.ch/t/reducing-lst-dominance-risk-by-decoupling-attestation-weight-from-attestation-rewards/16523

Have never posted anything in the ‘proper’ Ethereum forums before, and so feeling very intimidated. Thank you to those who gave me confidence that it’s possibly not a completely moronic concept!


View on Reddit →

u/nomad-nuance:

My biggest issue with this is they could get rich quicker, then flip to control ethereum quicker and or after something goes wrong for them

You need to add something that stops that possibility imo

Something like locking in some or all of these mega validators stake for that extra reward, so that they are basically in service to eth in order to continue earning rewards to make back their locked stake.

And even with that, that semi only puts the problem back 20-50 years imo

Mostly thinking about 3% apr (y?) and also they would likely have to pay back their customers?

u/tricky_troll my man has it been 10 days?

u/Set1Less shares MakerDAO’s latest questionable move and u/hanniabu adds on by criticising the move

View on Reddit →

u/Set1Less:

MakeDAO wants to launch their own chain….and its a fork of SoLaNo. Lol

Honestly thought it was parody at first.

https://forum.makerdao.com/t/explore-a-fork-of-the-solana-codebase-for-newchain/21822


View on Reddit →

u/hanniabu:

Maker is a husk of its former self. Rune can’t help but introduce more and more centralization. The endgame is value capture.

The most important reason for why NewChain is needed, is that it will allow the ecosystem to use hard forks to gracefully recover from the most severe form of governance attacks or technical failures.

Ah yes, lets move to a LESS SECURE chain to protect against governance attack 🤡

The second reason is that the Solana ecosystem has proven its resilience

This keeps getting better, all that downtime really prove ReSiLiEnCe

The third reason is that there already exists examples of the Solana codebase being forked and adapted to act as appchains

There already exists examples of rollup codebases being forked and adapted to act as appchains

u/Syentist explains why he is surprised that there hasn’t been more eyebrow raising in response to Maker’s recent move which effectively made them an unregistered money market fund

View on Reddit →

Maker has deposited north of $1.2 billion of the $ backing DAI into US treasuries. The yield on the US treasuries is paid back to DAI holders who have deposited to the DSR contract. That is a near text book definition of a money market fund, except an unregistered version.

“But KYC is inherently evil. We should fight it when we can”. Ethereum already allows for two people to send and receive ETH with each other (=to transact) without intermediaries and without KYC. But if you are literally investing in a financial instrument offered by the US government, it’s hard to understand why we can or should bypass clear cut laws which exist for the rest of the members of society.

And the absence of KYC is only a small part of the problem to me. The bigger part is the pure unregulated nature of this enterprise. Rune is one acid trip in the Himalayas away from suddenly deciding the solution to world inequality is to arbitrarily donate half the USG bonds to some charity. I’m not joking - the Maker core team is, at best, chaotic neutral, with emphasis on chaotic. It’s insane for a $4.5bil stablecoin to rely on a group of centralized chaotic actors. And this is where registration of money market funds comes into play. You have designated legal responsibilities to core organisational members who’s details are known to the feds, you have clear auditing rules and what can and can’t be done with customer funds, and customers have clear legal recourse if or when the custodians behave outside of these narrow rules. Right now, DAI holders get ZERO of those clear cut protections.

And lastly, NONE of this fits within the original ethos nor objective of Maker, as an Ethereum centric decentralised stablecoin. Nothing in today’s Maker is decentralised nor fitting the core ethos of Ethereum, despite the team and the project having leached off credibility from the Ethereum ecosystem to bootstrap themselves to the current position as a major defi protocol. For example if Jump or Binance came up with a protocol with similar shenanigans to that exhibited by Rune and Maker today, it would at best, be a short term pump and dump excercise, not a protocol which attracts and retains billions in TVL over a long term. The only reason Maker manages to do that is because it managed to successfully leach credibility from the Ethereum ecosystem, before pivoting into the present circus. /end rant

u/coinanon updates us on account abstraction standards

View on Reddit →

I’m trying to understand the current state and the near future of account abstraction. From what I understand, there are two competing standards: the Safe (formerly Gnosis Safe) architecture and the newer ERC-6900 architecture. Having one standard seems important because it will enable dapps and developers to create plugins/modules for AA wallets (automatic DCA, freeze certain assets, spending limits per “session key”, etc).

It’s very cool and I believe that it has a future (especially on L2s with cheaper fees soon), but which architecture will win? The Safe team is well-respected, but it sounds like ERC-6900 has some advantages.

Does anyone know the latest? Is the developer mindshare leaning one way right now?

This was a good primer on the different architectures: https://mirror.xyz/konradkopp.eth/7Q3TrMFgx2VbZRKa7UEaisIMjimpMABiqGYo00T9egA

u/nixorokish rebuts a pro-Lido argument

View on Reddit →

nonsense.

The counter-argument here is of course that threatening to throttle and/or fork out Lido, if it doesn’t adhere to the will of a handful of core devs/researchers/influencers, is the surest way to kill any notion of better and safer property rights

Psyops to convince people that the “will of the people” is to hand over governance to Lido DAO when not even a supermajority of LDO token holders really want this (https://twitter.com/DrNickA/status/1697610036841726414) - the delegates who vote with the most LDO just overshadow everybody else

Sacha is trying to paint “a handful of core devs/researchers/influencers” as an elite group trying to maintain power. In reality, these are the hundreds of people who are building the Ethereum protocol layer and are trying to make it impossible for anyone to capture the Ethereum consensus layer. Like I said, psyops.

My personal perspective here is that it would be extremely irresponsible for Lido to gain a dominant market share without first significantly improving its resilience to long-term tail-risks – and reducing the impact of those tail-risks on the Ethereum protocol

“Yeah for sure Lido in its current form shouldn’t control Ethereum. But I think it eventually should and will, it just needs some tweaking before it’s ready”

I think it bears repeating here that Lido is not a single entity. It is a co-ordination layer between a multitude of stakers and node operators.

It is 31 operators who can be removed at any point by one entity: the Lido DAO. Which is swung by a few majority delegates. Many operators receive a significant portion of their income from being Lido operators - the threat of losing this income is a source of influence you can’t ignore.


Sacha’s whole deal is coming up with long-winded posts that masquerade as research to justify Lido DAO governance expansion. Start with a conclusion and build arguments to meet up with it. He writes in a way that often impresses people into thinking it might be a good argument but he never actually gives us new information - he’s not looking for an answer or doing research, he’s just finding new ways to say “It’s okay for Lido to eventually become the middleman between you and Ethereum.”

u/696_eth made a big step in their solo staking journey - they made a beacon chain deposit!

View on Reddit →

Staking: Finale

I’m proud to say that I’m officially a Beacon chain depositor!

I started my journey in late November, early December last year. After researching and getting all the parts and setting up NUC I took quite a long pause. It was still on my mind even though I wasn’t following through with that. As I finished addressing more critical priorities in my life earlier this year I knew it was the time to do it. It looked honestly impossible but I trusted that with the help of this community, EVMavericks and my friends that I would be able to achieve the feat! Staking aligns with my long-term financial goals as well as with with the future of Ethereum that I want to see and I wanted to do my part. Running minority clients too to promote the health of Ethereum.

Big thanks to Haurog for basically handholding me, thanks to everyone here and EVMavericks discord for answering my many newbie questions, shoutout to Ethstaker for helping me out too, also to a few of my friends from the Dopest private chats and to so many other people who were willing to lend a hand but I already had enough support. I took my time to understand, learn, experiment and to feel relatively comfortable. I’m sure it’s not fully done yet as I might be sweating when I pass the entry queue but so far everything has been looking good. There’s still a few things to set up bandwith wise for me and in terms of how to monitor (so far I have grafana and just look at beaconchain site).

Not sure what else to add but if I remember something I’ll add later. if you also have questions, lmk!

Can’t wait for my money printer to go brrrr and print me blocks w 69E rewards!!!

u/PhiMarHal outlines a big opportunity for web 3

View on Reddit →

Google lets scammers buy adspace and makes no effort to moderate this.

Twitter is letting spambots run free as long as they pay $8 for a blue checkmark or $1000 for a gold one.

Discord is adding a feature to let you hide links so they redirect to a different place.

There is a fundamental incentive problem with the law ruling big service providers should have no accountability whatsoever for the content they host. Let criminals use your platform AND get paid for it? Why shouldn’t they take that deal.

This is especially inane when said platforms do take moderation actions for various ideological or political motives. You’re either a neutral service provider, or you have administrative rights and exercise editorial content. Can’t have both. In the latter case, you should be help responsible for your content, and sorry but not sorry if this doesn’t play well with big-tech business model of harvesting value generated by user content while running only minimum human intervention.

There is an obvious answer here. If these platforms were run as credibly neutral infrastructure, as part of distributed ledgers nobody can unilaterally censor… Those laws regarding lack of accountability would make sense.

The mainstream Internet as it exists today makes no sense as web2 whereas it would be sensible as web3.

u/ThatGuyThatGuyThagay brainstorms some solutions to the Lido problem and u/cryptOwOcurrency adds to it with a great reply

View on Reddit →

u/ThatGuyThatGuyThagay:

I see the solution to Lido problem as follows:

  1. Reduce the advantage of pooling by burning MEV - all validators, get equal beacon chain rewards. Solo validators have advantage over pool, because of LST fee.

  2. Protocol level smoothing of block proposals or similar, same way in PoW, people use pools not because it gets the bigger rewards, but because they get them more consistent.

  3. Make solo staking more accessible. (how comes there is still no double-click executable on windows that get you staking in no time? Even shitcoins have them).


View on Reddit →

u/cryptOwOcurrency:

Protocol level smoothing of block proposals or similar, same way in PoW, people use pools not because it gets the bigger rewards, but because they get them more consistent.

Block proposals themselves really don’t earn a lot of consensus income - only about two weeks worth of attestations.

Once the impact of MEV is removed from proposal income (due to MEV smoothing pools and/or MEV burn), I don’t think block proposals will need smoothing. That’s a good thing!

Make solo staking more accessible. (how comes there is still no double-click executable on windows that get you staking in no time? Even shitcoins have them).

I agree on this. Back in the early days of Bitcoin, I used to keep my Bitcoin client running in the background to help provide bandwidth to the network (and keep my wallet in sync!). You would just double-click the Windows executable and then forget it in the system tray. GPU mining was like that, too.

It should be just as easy to stake on Ethereum. The process should go like this:

  1. Double click installer exe. Install.

  2. Run. Wizard prompts you to choose consensus and execution clients, with a short blurb about each one and a note about client diversity.

  3. You get kicked out into the main UI. Your clients are now syncing. There’s a little progress bar that shows how long till they’re synced enough to be staking-ready.

  4. When sync is done, you click the little “plus” button at the corner of the main UI, to add new validators.

  5. (For first time adding validators only) - Wizard generates staking seed phrase, prompts you to write it down, forces you to retype it.

  6. Wizard prompts you to enter the amount of validators you wish to add, previews how much ETH you need.

  7. Wizard prompts you for the withdrawal address you want to use for these validators.

  8. Wizard generates deposit data json file, prompts you to upload it and deposit ETH using the Staking Launchpad.

  9. Wizard reads the blockchain directly and recognizes your Staking Launchpad deposits. Kicks you back out into the main UI where you can see the pending status of your validators, along with an estimate of when they will be through the queue.

  10. Once they’re through the entry queue, the app basically acts like a native version of beaconcha.in, showing your attestations and effectiveness, proposals, income graph, stuff like that.

u/cryptOwOcurrency explains a cool little defensive measure in the Ethereum protocol which protects against 51% attacks

View on Reddit →

Hey it just occurred to me - a 51% attack is not actually profitable to Lido in terms of ETH, at least in the short term. I forgot about this little quirk (smart design decision) in the Ethereum protocol:

The reason why no validators receive attestation rewards during an inactivity leak is once again due to the possibility of discouragement attacks. An attacker might deliberately drive the beacon chain into an inactivity leak, perhaps by a combination of censorship and denial of service attack on other validators. This would cause the non-participants to suffer the leak, while the attacker continues to attest normally. We need to increase the cost to the attacker in this scenario, which we do by not rewarding attestations at all during an inactivity leak.

So by 51% attacking Ethereum, LST pool providers would be hurting the LST’s own holders (and their reputation for making profit) by forgoing staking rewards for the duration of the attack. People would obviously rush to try to pull their money out, or at least they should.

An attacker could avoid this mechanism by attacking with 66% of the stake. 66% is the point at which an attacker can attack the chain without forgoing short-term staking rewards.

I just wanted to share this, because it’s a factor I had forgotten about, and it throws a curveball at any 51-66% attacker.

Week #33: September 1, 2023

Livestream Recording | POAP

Announcements

Upcoming Guests

The morning trinity

View on Reddit →

u/SplinterCole

Ethereum

u/UgotTrisomy21

🦀🦀🦀$1648 🦀🦀🦀

u/696_eth

0.063

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

The charts start to bend,

Hello candle my old friend,

The pullbacks will mend.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 765,591 (+2,071)

Pending validators: Joining 54.4k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/cryptOwOcurrency

View on Reddit →

Zero Knowledge Proof explanations really be like

Example 1: Peggy plays a simple game with two colored balls.

Example 2: Peggy plays with a Where’s Waldo book.

Example 3: Peggy calculates the solution’s hash in the last round; i.e., H(914783256) = 0515. She then rewrites it as a decimal number, i.e., 0515 = 1301, and applies the mapping; i.e., 1301 mod 27 = 5. She proceeds to translate 5 to row i = 6 for the next query and adds the solution of row i = 6, i.e., 256391478, to the proof string. Last, she attaches the hashes of the Merkle tree nodes needed to check whether the result matches the commitment to P.

u/haurog doesn’t accept the Lido narrative and u/nixorokish reiterates the kind of threat Lido poses

View on Reddit →

u/haurog:

I find it the most interesting that the Lido narrative: ´there will only be one LST and because of that it is better it is us (Lido) than any even more centralized player´ is so readily accepted by many people. This narrative enables Lido to aggressively grow through dubious means like the karpatkey partnership. Karpatkey manages many large DAO treasuries and apparently karpatkey bought steth with these treasuries and blocked adding other LSTs. Only after public outcry some DAOs intervened and now hold a more diverse LST portfolio.

In my opinion, accepting this narrative makes people complacent and fall in line behind Lido, because the alternative, e.g. binance dominating the staking market, is obviously a worse outcome. Lido propagates this statement because it helps them to justify their means. It becomes a self fulfilling prophecy which again helps Lido. It is not surprising that Lido now aggressively spreads this narrative again on various platforms like bell curve podcast, bankless and twitter. Lido is well connected and they can place their narrative quite effectively in the space.

Does the narrative actually make sense? At the core the narrative is ´The dominant LST has the most integrations and the largest network effect´ and due to this all ETH will flow to it. In essence it reduces the complexity of staking products to one or two quantities and argues the end state lies at the edge, i.e. one dominating LST. This pushes people into becoming convex thinkers, which in this case helps Lido to divide up the market ‘You either support us or you support big centralized exchanges’. The simplicity of the narrative to me is similar to some very simplified arguments by (hobby) economists which are then surprised that actual market data contradicts them. They then argue that people are not ‘rational’ actors. But what actually happens is they dumbed down the complexity of a system to a level which makes it easily calculable but the outcome of this simplified system does not match reality anymore because they unknowingly removed some essential mechanics.

Even the market itself does not support the Lido narrative If you look at market data, like the recent glassnode insights report. Lido grew by 54% since January 2023, and rocket pools rETH grew by 157%. How is this even possible because I thought according to their narrative they would win automatically because of network effects. rETH is by pretty much all quantifiable means an inferior product: Lower network effect, lower liquidity, fewer integrations, lower yield. People now even pay a premium to own rETH. Is it because people are stupid? I would argue that the simple convex thinking of the Lido narrative removed a lot of the actual complex decision making of market participants and that is why the Lido narrative should at least be questioned or even rejected outright.

But why does Lido dominate. They were the first LST. Making staking accessible for everyone. They are less centralized than Binance, Coinbase and Kraken. They did not really have any competition in the market until about 1 year after the Beacon chain launch when Rocket Pool started. And now there are alternatives, some better, some worse and new entrants will come. Sure, due to historical reasons Lido will be the larges LST for years to come, but I am personally not convinced that they will inevitably reach 90% market share because of network effects alone.

And now to a more personal note. Does it make a difference for me to buy an LST from an established player compared to a new entrant? Yes definitely. Storing my ETH in a tested smart contract has its value. Having access to degen plays is great. Being able to borrow money against my LSTs is necessary. But does it make a difference if the established player has over 30% dominance or 3%. Not really. rETH has enough liquidity and integrations for me with just about having 4% of the staking market share. The marginal utility of network effects of a larger LST protocol is already pretty close to zero and other parameters, like systemic risks, become more important.

TL;DR: The Lido narrative of ‘There will only be one LST’ has been spread quite efficiently by Lido. This simple narrative leaves out nuance and makes the community complacent. Even the market itself does not seem to support the narrative. Be careful accepting or spreading it further.


View on Reddit →

u/nixorokish:

to reiterate something that seems confusing to casual users:

Lido’s threat is not a threat on top of Ethereum. It’s not about centralizing the economy running on top of it, it’s not about a widespread smart contract risk (though it does add that, too).

This is what the strategy leader at Lido (Hasu) laid out on his recent Bankless episode:

  1. Solo staking will trend down to <1% of the network
  2. Liquid staking is the superior form of staking and all staking will migrate there
  3. LSTs will converge to a single LST

The result of this is that 99% of Ethereum’s validators are controlled by Lido. That means that Ethereum is governed by the Lido DAO. The Lido DAO can choose to censor, blacklist, or finalize whatever they want on the chain. They become vulnerable to government pressure or human corruptibility to do these things. They can pressure their very small operator set to do these things in the shadows (especially once forced exits are implemented).

This fundamentally changes what Ethereum is. It becomes the Lido DAO chain. Might as well use BNB chain at that point. Ethereum’s validator set is absolutely core to its decentralization, permissionlessness, and credible neutrality.

u/alexiskef educates us on EIP-4844 with u/domotheus’s latest blog post on blob space

View on Reddit →

🔥 Blobspace 101, by Domothy 🔥

Copy/pasting the authors own intro: “this article aims to approach the concept of blobspace, from the ground up. We will go through a quick overview of the problem of scaling a blockchain and how the concept of blobspace is the answer that Ethereum is betting on. Then we will delve into the more technical aspects of blobspace, first from the perspective of EIP-4844, since it’s about to roll out, and then we’ll quickly look into what “full danksharding” will entail in the future."

u/SikhSoldiers comments on comparisons made between Lido and Bitcoin mining pools

View on Reddit →

This was a response lower but I think it merits a full text. Lido situation often gets compared to the bleak bitcoin mining pool situation where 3 pools account for >75% of all hashpower.

I think the lido situation is actually worse than bitcoin mining pools.

Switching hashpower between pools is easy, switching stake from one LST to another requires the entry and exit queues which are multiple months long and thus entrench one lst. Eg. If lido went corrupt and starting doing reorgs to steal MEV then the rate at which they lose stake is limited by Ethereum consensus. Further, there’s actual economic irrationality to switch away since lido earns more in this paradigm (assuming no user activated slash).

The point being is that there are no economics that inhibit mining pools and this has been proved through voluntary self limitations.

Ethereum is struggling with this.

u/bagogel12 created a dystopian Ethereum/Lido theatre script

View on Reddit →

Act 1: Uncertainty Unveiled

(Scene: A bustling virtual realm resembling Ethereum’s landscape. Characters Lido, Operator A, Operator B, and DSA Representative are present.)

Lido: (Addressing the audience) The enigma of the future looms over Ethereum like a shadow. The path ahead is hazy, as we navigate uncharted waters.

Operator A: (Whispering to Operator B) Have you heard the rumors about DSA’s interference?

Operator B: (Nodding) Yes, word is they want to certify operators with their software. It’s like handing control to a new sheriff.

(Enter DSA Representative)

DSA Representative: (Authoritatively) Ladies and gentlemen, allow me to introduce the new era of certified staking. The Divided State of America demands compliance with our guidelines. Only those who bear the badge of “certified operator” shall stake and govern the network.

Act 2: Compliance and Consequences

(Scene: Lido’s assembly hall. Lido and a group of Operators are in discussion.)

Lido: (Addressing the Operators) We stand at a crossroads. DSA’s decree is clear, and we must decide how to respond.

Operator A: (Raising a hand) What about those of us who don’t wish to comply with DSA’s terms?

Lido: (Serious) Dissent is a luxury we can’t afford. Compliance is the path we’ve chosen, for now.

Operator B: (Angrily) So, we relinquish our autonomy to become mere pawns?

Lido: (Solemnly) Our choice is stark, yet we must weigh the consequences.

(Operators mumble among themselves.)

Act 3: The Shadows of Cartelization(Scene: Ethereum’s digital realm, depicting bustling stakers and traders.)

Operator A: (Defiantly) I can’t ignore my principles. I’m unstaking.

Operator B: (Worried) But the queue to restake is overwhelming, not to mention the enticing profits we’d be leaving behind.

Lido: (Observing with a sinister grin) As DSA’s grip tightens, chaos unfolds.(Operators reluctantly withdraw, some out of principle, others due to sheer inconvenience.)

Narrator: (Voiceover) The Ethereum ecosystem stands at a precipice, as Lido’s influence swells, furthering the consolidation of power.

(Lido’s dominance continues to grow, its ominous shadow looming larger over Ethereum.)

Operator A: (Resolute) We can’t let this tyranny persist. A fork is our last resort.

Operator B: (Doubtful) But Lido’s stranglehold is formidable, and with DSA’s support…

(Lido faces a pivotal decision: Embrace cartelization or confront dissent.)

Lido: (Calculating) The road ahead is murky, but our grip on power is undeniable. Ethereum shall bend to our will.

(Curtain falls, shrouding Ethereum’s future in an unsettling darkness of cartelization and control.)

u/Tricky_Troll defends of Gitcoin while u/STRTRD brings in the context behind the post along with some of their own thoughts

View on Reddit →

u/Tricky_Troll:

This comment was a reply made on a comment with little attention at the end of yesterday’s daily so I am sharing it now. Basically, in light of people complaining that “Gitcoin lost its way”, often pointing to the use of money from Shell in one funding round and another controversy around funding for minority groups in the ecosystem, here is my counter argument.

One could argue that Gitcoin is doing what it was designed to as a protocol. It’s supposed to be modular for many different types of funding rounds with many different organisations. Funding from Shell, funding for minority demographics etc. This is all controversial due to your subjective opinion on what you want Gitcoin to be. Well the Gitcoin vision was for it to grow up and become a protocol for all, not to remain a niche technical Ethereum native app. Much like how there are many Linux distros for whatever niche you want, this is a feature and not a bug.

Just because I don’t like the fact that Ubuntu exists and adds telemetry to an ecosystem which is generally much more private than other operating systems, doesn’t mean I see Ubuntu or Linux as a failure. Of course not, Ubuntu invites newbies into the ecosystem and if they want to progress from there they can. Meanwhile, there are privacy focused distros and ones which stick to core OG Linux community values. Same goes for Gitcoin.


View on Reddit →

u/STRTRD:

Here is the whole comment thread for the context: https://reddit.com/r/ethfinance/comments/163cqkk/comment/jy5cw5i/

u/keynya counter argument:

I do not know what OP thinks but if you want to focus on the negative I have a few points:

Took them a year to revamp their website which only now is usable again.

They spent a lot of effort to have gitcoin rounds on Fantom which barely had anything useful to support instead of integrating L2s. The last rounds were therefore super expensive to contribute. Only now they support optimism.

The last few rounds were invite only, which probably hurt new devs and teams because they were excluded from gitcoin.

At the start of this round all DAI contributions failed. People lost quite a bit of money with failed transactions and the website said ˋdonation successfullˋ. I you looked at the earliest failed transactions they were probably from the gitcoin team. They knew about the problem and still enabled DAI contributions. No idea why.

Why waste developers time on running your own L2, the PGN networks? It does not make sense to me, We have enough very good L2s by now why make your own.

The whole Shell collaboration was a PR disaster.

There was also a diversity round in spring where one of the judges also had a project in the round. This round was special and the judges had extra power over who gets the money. This judge was a very controversial figure in the space already and they nevertheless took her on. The whole situation was as also a pr disaster.

All these points above tell me there is a lack of control, oversight and quality standards in the gitcoin organisational structure.

With all the list of negative points I have to say I personally still love gitcoin rounds. The website now is so much better than last year. They are in my view a pillar of our space and I love donating to projects I use.

I’d like to touch on Gitcoin and their passport with which they are trying to become decentralised proof of human/anti-sybil standard while constantly changing stamps to accomodate whatever new KYC-grab your ETH shady project they partner with like Proof of humanity, Civic etc.

Other stamps are connect your social networks, like sybils have problems with that.

One of the stamps is GTC staking, stake our coin to prove you are human?

Complete antithesis to web3 and it is getting a lot of praise.

u/lanternfinance shares their project for thosewho find solo staking a bit too daunting

View on Reddit →

SHOUT OUT TO EV Maverick /u/lanternfinance because his team is building something I think many would and should be interested in if solo staking scares the shit out of you.

If you live in any of these states, would you be open to chatting with a team called Lantern Finance? Staking as a Service. Pure play staking service provider.

They are launching October and looking for early people in these states to talk to about participating in a feedback session.

Right now, though, they want to talk to some folks about their journey and history and get feedback on their current experiences/struggles with staking.

They are doing SAAS using KYC through Persona, custody through BitGo for custody with insurance, and are building a simple and effective U.S. based service complete with tech support/phone support etc. They have onboarded a team of around 8 iirc.

Super easy to talk to and I hope some of you can line up a quick meeting. Highly recommend even if you aren’t from these states. I’m planning on joining the early feedback cohort in October and I hope some of you can too. (this meeting isn’t about investing! Just about experience with staking in general they want to know what features to focus on)

If you want to reach out: prince@lantern.finance and jung@lantern.finance

Prince was at Hodlercon Super nice fella!

From the team: “Lantern Finance is a US-based, pure-play ETH staking solution. We’re focusing on security, peace of mind and ease of use for staking. We’re looking to do ~30 minute user research interviews where we get insights on what an ideal staking solution looks like for them. We also want to understand their crypto journey, what they like/dislike about their existing platforms, and feedback on what we’re building.”

u/coinanon breaks the good news and u/Papazio adds some detail

View on Reddit →

u/coinanon:

Uniswap wins lawsuit accusing them of being liable for scam tokens: https://decrypt.co/154312/uniswap-lawsuit-dismissed-defi-crypto-exchange-not-liable-for-scam-tokens


View on Reddit →

u/Papazio:

This is dope!

An important distinction between the smart contracts deployed by Uniswap and the actual token contracts and pools launched by the scammers. The judge concluded that Uniswap’s contracts cannot be inherently illegal, the issue is with whomever made a scam token and then scammed people with it. Watch out SEC, this is coming your way.

Here’s some choice bits:

Judge Falia’s decision said that smart contracts underlying the exchange’s core functions should be viewed separately from code underpinning liquidity pools, which are drafted by token issuers and enable newly created tokens to trade.

“These foundational contracts are distinctive from the token contracts unique to each pool and drafted by issuers,” Judge Falia wrote. “The contracts relevant to Plaintiffs’ claims are not these overarching codes provided by Defendants, but rather the pair or token contracts drafted by the issuers themselves.”

u/cryptOwOcurrency becomes a full on FUD-fighter, rebutting some claims made in a podcast

View on Reddit →

Here are the claims made about Ethereum between those time stamps, and my rating for each one.

JP Morgan owns a lot of crucial Ethereum infrastructure - MOSTLY FALSE

While JP Morgan does have some financial ties to Ethereum infrastructure, they don’t “own a lot”. JP Morgan owns less than 10% of Consensys (Consensys is the parent company for Metamask, Infura, Besu and Teku). Of course while Metamask and Infura are both influential and widely used, they are not the only games in town and they are not “crucial” to Ethereum’s survival. And while 10% may be enough to demand a board seat and sway some close votes, it’s a far cry from “owning infrastructure” in the sense that it’s under their thumb.

JP Morgan dollarized the Ethereum network - FALSE

Circle (USDC) and Tether (USDT) did the most to dollarize Ethereum, imo. Circle is owned in part by the venture capital arms of several big banks, but I could not find JP Morgan Chase listed as one of them in any VC announcement. Tether is privately owned by 4 rich dudes.

Stablecoins represent more value on the Ethereum blockchain than ETH itself - FALSE

By roughly adding up the top dozen stablecoins on CoinGecko, Ethereum’s stablecoin market cap is less than $150B. Compare this to ETH’s market cap of $204B.

JP Morgan and Citigroup basically own the NY Fed - MOSTLY FALSE

There is no ownership in a corporate sense. While banks are required to “own” shares of the Federal Reserve, the Federal Reserve answers to their Board which is directly accountable to Congress, and profits are never distributed to shareholders. It’s a strange corporate structure, but that’s government agencies for you. Many consider Congress to be bought and paid for by private interests though in the end, so that’s why this only earns a rating of “mostly” false.

Elon Musk bad - TRUE

Week #32: August 25, 2023

Livestream Recording | POAP

Announcements

The morning trinity

View on Reddit →

u/Kitchen-Pudding8750

Ethereum

u/Zeebrasurfer

$1649

u/the-A-word

0.063

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Ask your reporter,

On to the final quarter,

Supply gets shorter.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 751,257 (+1,812)

Pending validators: Joining 58.6k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/savage-dragon

View on Reddit →

Ben Cowen is calling for eth coming home again.


u/intothecryptoverse (Ben Cowen):

Honestly it’s comical that people even listen to that guy

u/SikhSoldiers compares the pros and cons of on-chain vs off-chain swaps

View on Reddit →

Cowswap is awesome. You generally get the best price for execution and you have gas abstracted away. It’s so good that uniswap is more or less copying them for univ4

However, the Coincidence of Wants that CoW is famed for is an off chain matching system. If we have the largest dex in the space move liquidity / market making off chain, we will be making a huge shift towards a lunarpunk ethos in perhaps a negative way.

Onchain liquidity numbers have been super transparent and is the basis for most risk analysis. I’ve gotten reth accepted as collateral on many different lending platforms and have read through a number of analyses. The one common point across all of these platforms has been proof of lasting liquidity. In fact, it was this consistent request across protocols for probable liquidity that formed the basis for reth having liquidity incentives to begin with - we needed to prove reth was liquid.

Back to the issue at hand, when market makers move off chain they will no longer be sourcing from onchain LPs. There was a tweet a few days ago (if I wasn’t banned I’d find it) that showed only a small handful of people provided most of the ETH/usd liquidity on uni. If these people decided to become searchers in the cowswap or univ4 system, then they wouldn’t have public liquidity and slippage would become hard to predict.

I am very favorable towards privacy in certain cases; public liquidation levels is dumb as fuck. However, onchain liquidity is like a global proof of reserves. The whole world benefits by being able to have reasonable ideas about slippage.

Perhaps we can get the best of both worlds. It’s not unreasonable for these off chain market makers to have to post zk proofs of their holdings on chain somehow. It doesn’t have to be individualized since we only care about the picture globally. This system would also warn people when liquidity vanishes which is an issue otherwise.

Not to mention SUAVE makes this whole problem worse by abstracting liquidity at the block building level

u/ethacct celebrates their cake day by reflecting on the last 7 years…

View on Reddit →

it’s my cake day 🥳

seven years ago I realized I was posting too much crypto stuff on my main account, so i decided to make an ‘ethereum account’ instead. these days my main account is long gone, and i have fully become ethereum account 🫡

bear market things + life changes mean i haven’t been around as much, but still lurking here from time to time, and still shitposting on twitter/X/whatever it’s called now. I’ll be back when there’s exciting stuff to talk about again (pricewise or techwise or both).

u/pa7x1 shares a mental model of scaling via L2s vs scaling the L1

View on Reddit →

A few days ago someone asked on /r/ethereum what’s the advantage of scaling via L2 vs L1. I started drafting my response but life got in the way and couldn’t give a timely answer. I will instead post it here, most of you will understand well this topic. But it might benefit someone that didn’t think about the problem in these terms or give you another way to explain it to newcomers.

Here is a very simple mental model to understand the scalability trilemma, or why blockchains don’t scale in a trivial/naive manner.

The scalability trilemma basically states that from the following 3 properties; decentralization, security, scalability. A blockchain can only pick two. The moment you try to attain the other, you start to give up some of the other properties.

The easiest way to see why is to understand the two trivial/naive ways to scale a system. They are called horizontal and vertical scalability. Horizontal scalability is, in essence, adding more instances of the machine to solve the problem in parallel. For instance, your CPU has multiple cores to scale it horizontally. Vertical scalability is about adding more resources to a single instance, to make it able to process more per unit of time. More memory, faster CPU, faster internet connection…

The thing is that these 2 techniques are directly at odds with the other 2 properties of the trilemma. Vertical scalability is at odds with decentralization. And horizontal scalability is at odds with security.

In essence, if you make the requirements to run a node bigger (vertical scalability) you make it harder and harder for anyone that wants to run an instance. Instead of being able to run it in a consumer grade PC, you will have to run in an AWS intance, or a mainframe. Or whatever ridiculous machine you need to validate Solana. So if you simply increase the resources needed to run a node you end up centralizing the network. This is what Avalanche, Solana, and various other alt-L1s that promised to have solved scalability did. They are just giving up decentralization for scalability.

And horizontal scalability essentially requires splitting the network in shards, each of which validates different sets of transactions, so you can validate in parallel. But if you do this in a naive manner, it’s obvious that the security of the network suffers because the cost to attack each shard is proportionally smaller as there are less validators verifying the transactions.

The roll-up roadmap is a non-naive way to scale the network. It uses sophisticated cryptographic techniques to build compressed proofs of computation, that basically enable to scale the same blockspace by many orders of magnitude, as many transactions can be batched together and posted in a compressed form. It also enables parallel (sharded) execution, you can have multiple roll-ups each of which executes transactions in parallel, without sacrificing the security of the network.

u/PhiMarHal, u/superphiz, and u/Tricky_Troll share their different takes on friend.tech

View on Reddit →

u/PhiMarHal:

Every good ponzi, by lasting long enough, hits a moment of capitulation. At that point, initial haters are swayed by its resilience, and join in despite their misgivings.

If the ponzi is especially good, this moment is properly enhanced by an announcement. Lever capitulation into full-blown FOMO.

I believe we hit that moment yesterday with friend.tech. The Paradigm stuff, airdrop points. My timeline is filled with otherwise reasonable people hopping on board.

“But why, Phi, why do you call friend.tech a ponzi? I’m having fun. They’re going to release more features. Social tokens are the future.”

My own perspective comes down to simple math.

The price curve for shares is supply squared. Goes up fast, goes down faster. You get that high initial growth, tricking your brain into extrapolation, even though in reality it’s pricing people out; then once sentiment turns and people dump, you’ll get a catastrophic fall, with everyone and especially late buyers scrambling to get out.

Platform fees are 5% on every trade. Open up your calculator app and type $1000. Multiply it by 0.95. Then do that same operation again and again. See how much money you have left after 3 trades, 5 trades, 10 trades; see how much value is extracted from the userbase by the developers.

You add these two together, you have a recipe for a heavily negative sum game. The money is siphoned away from the system no matter what, a minimum of 10% (in + out), and more the longer you stay in and trade.

I’m a reckless gambler myself. I’m not going to tell you you can’t have fun in a ponzi, I’m not going to talk to you about morality. But I would tell you this is one of those times where don’t-put-any-money-you’re-unwilling-to-lose should apply strongly. It will come crashing down, and there will be many more losers than winners; the math makes this inevitable.

Any money you put in friend.tech is a greater’s fool theory bet where the odds are stacked against you.


View on Reddit →

u/superphiz:

In 2013 I was part of a local bitcorn group. We had this one member, “Tammy” [not his real name], who attended every meeting and always contributed to really insightful discussion. The thing was, Tammy never bought bitcorn or any of the altcoins that were springing up the time. He explained that if he never bought coins he could never get scammed. He prided himself on understanding the fundamentals of every coin, and he was very sharp at identifying potential weaknesses of different coins. But he never bought in. To this day, I’m still not sure he has every held crypto.

My point is that it’s no fun to participate in crypto if you avoid new things. It’s no fun to sit on the sidelines and point out flaws. I don’t want anyone to blow their stack, and I’m very honest about what I believe are valuable tools, and what I think are fads, but it’s OKAY to check out fads. Could you imagine still being unwilling to hold jpg NFTs because they’re just pictures? Pretty much anyone who holds that view is still living in 2019.

So I urge EthFinance to relax a little bit, stop being so scared of things that are likely to be fads and just check them out with care and caution. I have a group of fad enthusiasts and we’ve explored three fads this month and all of them have been a ton of fun.

Give yourself time to grow if you need it. Skip this one, no harm, but commit to sticking a pinky toe in the next thing just so you can enjoy the ride.


View on Reddit →

u/Tricky_Troll:

Not going to lie, I’m getting pretty sick of the nuance free takes about Friend.tech. It seems like everyone either convinced it is the future and super disruptive or a basically just a ponzi scheme. Can we please get some nuance in here?

IQBellCurveWojakMeme.jpeg

Low IQ end of the curve: Woah I can buy shares in my favourite influencers! This is the future!!!11!!1!!!!

Mid curve normie take: “iT’s jUsT a PonZi ScHemE”

Big brain take: “This is both an innovative platform and an app with major hurdles and design flaws to adoption. It has unique utility like token gated chat rooms which will almost certainly be valuable in the future on some kind of future platform but it might not be this one. Friend.tech has many weaknesses and in particular it uses a highly volatile uniswap V1/2 based curve for pricing of influencer shares. As a result prices fluctuate wildly and will leave many users with a sour taste in their mouth when they get dumped on. This is a big hurdle to mainstream adoption and the price dumps are why all the normies leave and talk shit about crypto in a bear market. 95% of people don’t want to speculate on this shit. Furthermore, there is also an enormous 5% fee on all trades which quickly bleeds users of their investments if they trade regularly.”

Edit: I agree with a lot of your takes in the replies, my point isn’t that any one of them is wrong, just that your nuanced takes are what I have been wanting more of and less one sentence posts whining about it or shilling it.

u/Fheredin is interested in a hypothetical decentralized Wikipedia and u/OkDragonfruit1929 has some great thoughts

View on Reddit →

u/Fheredin:

So…is anyone interested in brainstorming a decentralized alternative to Wikipedia?

If you aren’t familiar, Brian Lunduke just posted this video on Wikipedia’s finances.

TL;DR? Wikipedia’s expenses are roughly a third of their revenues; the difference goes to “charities” which have some strange political ties.

I wasn’t born yesterday. A defacto information platform like Wikipedia donating 2/3rds of its revenue to political entities is going to end with Wikipedia itself censoring opinions to protect their donation streams, and perhaps to curry favor with politicians.

Things get even worse when you consider Lunduke’s previous financial investigation. Mozilla gets most of its revenue from–drumroll, please–Google. I swear, Big Tech has monetary incest problems which make FTX look solvent.


View on Reddit →

u/OkDragonfruit1929:

Any Ethereum L2 based decentralized Wikipedia alternative should focus first and foremost on censorship resistance. Financial incentives are secondary.

Censorship resistance should be the top priority to prevent the platform from censoring opinions and information based on pressures from outside entities purchasing the right to edit articles. Without proper censorship resistance, the alternative Ethereum L2 based Wikipedia alternative will quickly fall into the same issues as Wikipedia, where donations and political ties influence what information is allowed or promoted on the platform.

Wikipedia donates 2/3 of its revenues to outside organizations, many with concerning political connections. This creates a dangerous incentive for Wikipedia to censor information to protect donation revenue streams or curry political favor. The power to control information is far too valuable enough as it is without adding the possiblity of profiting if some sort of cookie-cutter financial DeFi game is uesd and applied to a wikipedia alternative on an Ethereum L2.

If the alternative platform relies on tokenizing as a way to weight one user’s edits over another, the incentives could lead to censorship and conflicts of interest around what information is allowed or promoted. Financial rewards or incentives for users should be secondary to creating a platform resistant to all forms of censorship and bias. Rewards based on “truthfulness” could easily turn into subjective censorship.

Any form of censorship, no matter how well-intentioned, can be exploited to silence dissenting opinions and shape narratives. Maintaining censorship resistance should be the highest priority.

Without proper incentives and protections, all platforms, even L2 Ethereum dApps, are vulnerable to becoming tools of censorship. The alternative must be designed from the ground up to resist this.

u/benido2030 is structuring the community made EthFinance Bull Case for Ethereum.

View on Reddit →

As stated last Friday, this week I have started to structure all of your feedback for a potential “EthFinance Bull Case for Ethereum” post, which could also be used for a short video.

Ethereum the network

Ether the asset

Some comments:

  1. These are obviously just bullets, so I’ll add detailed thoughts once we all agree on the structure and I am not sure this is the best structure yet. For example you could add a third a third category with “Narratives” which could include the “ETH is green” or “Risk free yield” bullets. Also something like “Use Cases” probably could be its own category as well. Looking forward to your thoughts and potential changes you would like to see!
  2. I have tried to write about Ethereum and ETH, so in a way that’s not comparing it to any other network/ asset. I really liked these statements made on Friday, but have rephrased them.
  3. I have added my own points, so some bullets are "new.
  4. If you feel your points are not fully covered or inadequately worded in these bullets, feel free to drop a comment and suggest a change

Next steps (from my point of view, but also happy to receive feedback when it comes to the process!) would be to collect your feedback, change the structure/ reorganize all arguments, enhance every bullet or even split them to make sure everything is covered. After that I will start drafting short paragraphs for each point, but also encourage all of you to draft a bull case yourself or at least pick your favorite point(s) and draft a small text for those.

u/Set1Less shares some sad news for another Tornado Cash dev

View on Reddit →

Tornado Cash founder arrested by FBI….

https://home.treasury.gov/news/press-releases/jy1702

God Speed brothers. We will pour a drink when Kim Jong takes your revenge


u/cryptOwOcurrency:

The power and integrity of sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List but also from OFAC’s willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish but to bring about a positive change in behavior.

Lol. When does the Treasury think they will see “a positive change in behavior” on the part of the immutable EVM code that resides at 0xd90e2f?

u/stevieraykatz shares a quiet win for the ecosystem

View on Reddit →

Three of the top 15 eth burning/gas consuming contracts on mainnet are L2s. That’s such a quiet win for the scaling space and it’s JUST beginning.

– This has been your daily dose of hopium

Week #31: August 18, 2023

Livestream Recording | POAP

Announcements

The morning trinity

View on Reddit →

u/kraftverk_

Ethereum

u/UgotTrisomy21

$1672

u/Dray11

0.0634

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

One more layer two,

DeBank is now coming through,

Price surge avenue.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 735,915 (+2,069)

Pending validators: Joining 61.3k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: nixorokish

View on Reddit →

how to move crypto through a CEX when you usually just transact onchain:

  1. Do a test transaction to your newly generated CEX address (don’t reuse old ones!). Check to see if balance has updated. Forget that CEXs take a while to see the transaction. Refresh. Refresh. Refresh.
  2. Stare at screen for 30 seconds and then move on to something else while you wait
  3. Remember 6 hours later that you were doing something when you come across the window in your tabs
  4. Repeat
u/hanniabu shares Coinbase being based AF

View on Reddit →

Coinbase will be operating a few hundred Rocket Pool minipools

https://twitter.com/cbventures/status/1689639117016137734

We know the Rocket Pool team shares this belief and we’re delighted to support them via active participation in their Oracle DAO and using ETH from our corporate balance sheet to operate several hundred nodes on the Rocket Pool network alongside our friends Unit_410.

u/_WebOfTrust thinks new Safe feature could be the future of wallets

View on Reddit →

Exciting development from wallet space from Safe

New experimental feature unlocked!
Social Login: Sign up with Google or Apple ID on Safe {Mobile} iOS.

https://twitter.com/safe/status/1689313162817093633

not only we can create new social wallet but we can also migrate existing wallet, no seed phrases hassle and could help onboard folks with limited technical knowledge.

out of curiosity, i look and found this EIP-7212

https://ethereum-magicians.org/t/eip-7212-precompiled-for-secp256r1-curve-support/14789

From proposal “Many hardware and software solutions use this elliptic curve as signing algorithms, such as TLS, DNSSEC, Apple’s Secure Enclave, Passkeys, Android Keystore, and Yubikey, which can be used in the EVM.

Lot of math and havent digested the whole thread but future of wallet management looks bright.

u/etheraider has a call to action for the latest EVM project!

View on Reddit →

For those who didnt see 2 days ago EVMavericks kicked off a novel idea to create a community sourced decentralized art collection around a central theme!

To my knowledge this would be the first of its kind, right now we have close to 40 people/artists that have committed to creating art for the project. Would be awesome to hit 100 and showcase a unique robust collection in Ethereum!

Any and all funds raised from it would go towards whatever initiative the artists decide on.

One of the members just suggested a broad theme, “Decentralization”, so that or something like it may be what we go with!

I personally am excited to see all the different takes/art styles/perspectives on something abstract like “decentralization”, would make for a pretty compelling artistic experiment!

If youre interested in participating and contributing art join the discord (dont need an EVM)and head over the public untitled art channel and hit the thumbs up on the first message!

u/OkDragonfruit1929 just had a bunch of firsts worth sharing!

View on Reddit →

Just wanted to share my excitement - today’s been full of firsts for me! I used the Arch User Repository for the first time to build frame-eth from source, and successfully used the Frame Wallet and managed to bridge to Base. But wait, there’s more… I also minted my very first Base NFT! 🎨🔥

I’ve been hearing a lot about Frame wallet, and I figured with the official launch of Base, I could use this as an opportunity to test out two new tech innovations at the same time. Finally took to the Arch User Repository and installed the latest Frame wallet from source and it’s genuinely a feeling I can’t quite put into words. The whole process was much smoother than I expected, and I’m really excited about the potential of decentralized tech.

For anyone still on the fence, just dive in! The waters are fine, and the learning experience is invaluable. 😊

Cheers to firsts! 🥂

u/Nomadic8893 critiques the current state of L2s and u/PhiMarHal replies with coming solutions

View on Reddit →

u/Nomadic8893:

From a user experience standpoint and someone who identifies as both a “normie” but also has slightly bit above average knowledge of crypto/blockchains, imma just say it: L2s UX is a mess.

You’re expecting the TikTok/plug and play/ iPhone and iPad generation to know how to setup Metamask, to bridge over ETH to one of 10+ L2s, do DeFi/NFT with fragmented liquidity amongst the layer 2s and 8 versions of AAVE/Uniswap/Sushiswap/Blur/OpenSea, wait 8 days to bridge back to mainnet, and keep up with whats possible to do on different L2s….? Don’t even have to get the point about lack of decentralization on the L2s.

It seems to me the current structure of the Ethereum blockchain enforces favorable tokenomics on the layer 1 (capped blockspace and throughput, deflationary issuance, hardening of ETH) while giving users an option to opt into a low gas fee/high throughput environment, which on the face of things, is ideal, best of both worlds. But in reality, I feel that it severely degrades the user experience, creates multiple friction points, and ultimately deters Ethereum from any sort of mass adoption, mainly catering to the crypto-crowd. Hope I’m wrong and Ethereum thrives, but this user complexity is, for me, is one of the largest issues that Ethereum has to contend with for long term expansion and adoption.


View on Reddit →

u/PhiMarHal:

Personally, I expect most people to experience blockchain through account abstraction, and for the driver to be a dapp rather than a blockchain/rollup.

i.e. you’re on Base mainnet because you’re playing words3.xyz, but really you don’t even need to know you’re on Base mainnet. You hold a Reddit NFT but you don’t even know it’s a NFT, or where it exists.

Even in the EOA world of today, this is smoothed out on wallets like Rabby handling the network switching quite smoothly.

As for those dapps existing on different places, I think that existence is pretty fungible. It doesn’t matter to me if Uniswap liquidity is fragmented when I can technically get the same execution price within 0.1% of general market price. More exotic assets will have to pick and choose, but then I wouldn’t expect normal people to invest in esoteric tokens.

To me, getting to subcent fees while maintaining essential decentralization, security and credible neutrality properties is more important. Perceived user complexity is mostly a consequence of the space exploring many venues to this day.

u/the_swingman shares their thoughts on a few things

View on Reddit →

Hope everyone is hanging in there and keeping your heads up. Bearish/crabish times can sometimes feel like an extended hunger pit in your stomach. This too shall pass and brighter days will come, rest assured.

I started up my weekly buys again back when we last touched the 1700s and will continue to do so for better or worse, until we are out of the crab range above 2k with solid seeming resistance.

Fam and friends who hold ETH will periodically check in, fishing for price predictions from me.. I tell them the same thing over and over, that I don’t expect any meaningful positive price action (anywhere near ATH) to happen until US inflation is tamed, fed fund rates are cut down to a more normal rate, and not during any sort of recession because of rate cuts. We need to be out of those woods before I feel the sentiment will change with risk assets.

Tall order but that order will be filled. And as some have speculated here, the soonest I think that’s going to happen would be sometime in 2025. Obviously just a best guess and honestly, an optimistic guess in my point of view. Time passing without catastrophic events happening in crypto would be a blessing. We need time to heal the wounds of the great Terra/Luna collapse and all the subsequent fallout that was left in the aftermath. We’re already starting to see some closure type things happening.. Mashinsky arrest, SBF back to jail, some blockfi funds are being returned, etc.. while we still have far to go, Gemini still in the lurch with Earn, SEC drama and so forth. Time will sort all of these things out and I believe for the better.

Meanwhile, growth is ongoing in our space, another time dependent variable. Mistakes will be learned from, innovation is inevitable all in good time.

Personally, somewhat recently, I’ve been working on some lifestyle changes.. which started with getting a check up at the doctors. Blood pressure, cholesterol, diet, exercise.. all very important to keep up on. I even grabbed an oura ring to help monitor sleeping habits. I feel as though I’m training mentally and physically for the next bull run lol. But in all seriousness, it feels great to trend in a healthy direction. I work for myself, so keeping motivated and energy levels up are a persistent goal. I’ve also been traveling with more frequency and doing my best to travel with friends. The times I get to vacation a bit with friends, I realize they need it just as much as I do. Anyways..

Lastly, I might not chime in here much but I certainly read the daily everyday and have since long before the migration to r/ethfiance . I very much appreciate this community and the effort of those who do take the time to post in here. Thank you all!

u/magnushansson looks back on a recent big achievement of theirs

View on Reddit →

Hello r/ethfinance!

As summer draws to a close, I find myself reflecting on the incredible journey I’ve taken this season. I’m thrilled to share that I have successfully defended my PhD thesis titled “Decentralized Finance and Central Bank Communication”, with a primary focus on the market microstructure of DEXes. This achievement was by no means a solo endeavor, and I owe a significant debt of gratitude to this community.

Throughout the research process, the insights, discussions, and support from r/ethfinance have been invaluable. Many of the comments here have enriched my understanding and shaped my perspectives on the evolving landscape of decentralized finance.

I’m excited to start a new chapter as an Assistant Professor at Stockholm Business School. In this role, I will continue to dive deep into the intersection of market microstructure and DeFi, fueled by the passion and knowledge I’ve gained from this community.

In essence, I wanted to take a moment to express my gratitude to every member who posed challenging questions, shared enlightening resources, or simply offered words of encouragement. Thank you! / Magnus

u/nixorokish noticed a shift in Ethereum “competitors” and u/LogrisTheBard shares insights into system design

View on Reddit →

u/nixorokish:

this is an interesting shift - we’ve moved on from serious competitors trying to replace Ethereum’s L1 and now we’re looking at entities trying to become Ethereum on top of Ethereum. the provider that becomes ubiquitous and that people build on top of - Eigenlayer, Lido v2, DVT protocols creating their own spec - they’re all trying to become the dominant layer that people must use

Lido v2 believes that all liquid staking will eventually happen with stETH because defi markets want to converge to a single liquid staking token, so any staking protocol will just need to use Lido to open up a pool (“module”) and they can optionally issue their own token in addition to stETH. Eigenlayer wants to be the layer that protocols use to bootstrap services. SSV, Obol - they want to build a DVT protocol that every other provider conforms to (multi client architecture, but clients must use their spec).

but all of them are doing it in a way that’s antithetical to the reason (imo) for Ethereum’s success - its credible neutrality and the fact that no one is the overlord here. In the example with DVT - multi client architecture is good, but not if the parent structure is centralized or not credibly neutral. They’re all trying to capture what wasn’t captured when Ethereum’s model was developed. Humans are corruptible - DAOs are not the answer that makes something decentralized - does a serious competitor to Lido develop something that looks like Lido v2 (and Stakewise V3) but actually decentralized?


View on Reddit →

u/LogrisTheBard:

In my consulting work I bring up these topics a lot when I encounter any type of hostage collateral in system design. If the service is chain-adjacent I usually bring up Eigen Layer. If it’s an L1 I bring up running their L1 as an L2/L3 on Ethereum. I’ve done this for over a dozen projects. If it’s an app on chain I bring up LST collateral. I have never received a sound technical argument against this suggestion. Their argument is predictably about retaining token utility because they own a bag and want it to be worth more. When I bring up vampire attacks, the usual and sole response is that a social moat will protect them. This feels like wishful thinking to me. These approaches are going to devour the crypto space in the next decade. When we see the first vampire attack of something like Chainlink succeed where an attacker just forks their code and changes the collateral it will send off a tidal wave of copycats just like YFI did to liquidity farming with Sushi, Curve, Harvest, Aave, Kyber Rainmaker, etc. Eventually, layers of interest bearing collateral with different risk tradeoffs will be the only hostage collateral and every chain but the top few that can pay for their own security will settle on those few top chains.

I think the LST space is actually fragmenting and isn’t likely to consolidate. It will look like the stablecoin space where there are dozens/hundreds of LSTs. Ideally Lido will be subject to repeated and sustained vampire attacks and will just service as a gateway into staking. I do think there will be actually decentralized LSTs but I think it’s too late in the game for them to dominate. That ship has sailed, Rocketpool was our best chance and they blew the opportunity by not using the oDAO RPL rewards for liquidity farming to bootstrap themselves to massive adoption.

u/OkDragonfruit1929 is shocked by a recent big step towards mainstream adoption

View on Reddit →

So… I just minted a “Stand with crypto” NFT with my VISA debit card and I finally understand why VISA letting you pay gas fees with your VISA card is such a big deal!

No need for anyone to create an exchange account and buy ETH, it just works in the background!

I am absolutely stoked about the convenience of using a VISA debit card to directly mint an NFT without the need for creating an exchange account and purchasing ETH (Ethereum) separately. This approach makes the process more user-friendly and accessible to individuals who might not be familiar with cryptocurrency exchanges or the technical aspects of buying and using Ethereum.

Using a debit or credit card to directly mint NFTs simplifies the process by abstracting away the steps involved in acquiring cryptocurrency like Ethereum and then using it to pay for minting fees or NFT creation.

It’s a step towards mainstream adoption by reducing the barrier to entry and allowing more people to participate in the NFT space.

u/superphiz stands up for himself in front of a disingenuous accusation

View on Reddit →

it really guts me to come here and find myself getting shit on. You don’t have to know me, you don’t have to trust me, but I’m proud to say that every action I’ve ever taken has been in the best interest of promoting greater security and decentralization of the beacon chain. I have never acted in any way contrary to these values and it’s offensive that the same people keep dragging my name. YES, I accepted the role of oDAO member for Rocket Pool, a role that I am STILL very proud of, and YES, I got a lot of money for it, just like the other 18 odao members who participated in the protocol the way it was designed. YES, I voted to reduce that and have encourage further development of RP in a way that doesn’t require an oDAO at all. You know what else I did? I proudly promoted a platform that has onboarded over 3000 nodes to the Ethereum network. And I’ll do it again if I can. I’m not going to get shit on like a little bitch by people who haven’t done shit to bring success to our network. I would STILL accept fair money for my time to support and promote other projects that are highly aligned with our goals, and I’ll never mince words about projects who risk our future. Sorry. Getting a little heated here.

Week #30: August 11, 2023

Livestream Recording | No POAP

Weekly Doots →
Week #29: August 4, 2023

Livestream Recording | POAP

The morning trinity

View on Reddit →

u/alexiskef

✨E✨t✨h✨e✨r✨e✨u✨m✨

u/696_eth

0.062

u/wolfparking

$1833

Weekly Haiku: u/Jey_s_TeArS

View on Reddit →

Vyper labyrinth,

Compiler masonry tricks,

Curve pools broke a plinth.

The Queue: u/Spacesider

View on Reddit →

Your daily beacon chain dose.

Active validators: 706,796 (+1,631)

Pending validators: Joining 75.5k, leaving ~0

These figures are based on the entry and exit queue at the time of posting

This can also be tracked via https://validatorqueue.com/

Shitpost of the week: u/Glittering-Duty-4069

View on Reddit →

Consider this: The SEC (Securities and Exchange Consideration) Consideration deliberating on whethere they should once again reconsider their previous considerations considering to consider reconsidering ETH ETF for deliberation and consideration.

u/cryptOwOcurrency has your daily dose of hopium

View on Reddit →

I held my tongue back in that thread, but I found that sentiment bizarre too. If ETH development were basically dead like Bitcoin I could maybe understand the logic of the market capping out soon, but ETH is still a rapidly developing and improving technology, and still has a lot of not only adoption but simple low-hanging improvements in market efficiency in front of it. Even if core Ethereum development completely halted today, ETH would still have at least another market cycle worth of juice in it.

There still aren’t any ETFs in the US. Big brokerages only just launched crypto custody less than a couple months ago. Roll-ups and zk tech still aren’t mature yet. The general public still thinks NFTs are an environmental nightmare. It’s been less than a year since the last PoW block was mined on Ethereum, and barely three months since its literal consensus system was completed! The queue isn’t even clear yet, for god’s sake!

These are probably a lot of the same people who called for $10k last cycle. Now that we’ve been crabbing for a while, they get all depressed and doom-and-gloom. When the bull market picks up again, they’re probably going to start calling for $20k+. Then we’ll top out at like $16k and they’ll watch their generational paper gains slip through their fingers again.

u/Set1Less has an update on the struggling US stablecoin bill

View on Reddit →

Anyone following the Congress stablecoin bill?

That seems to have died today too. The law just created a legal structure for stablecoins (with actual legal protection) and allowed businesses to use stablecoins, but the bill has died

Good threads on it:

https://twitter.com/JBSDC/status/1684589699564728320

https://twitter.com/JBSDC/status/1684570863432257538

So fucked up…. even a stablecoin bill cant pass. A proper crypto bill is just DOA

u/bleeddonor covers the relevant Mullvad VPN situation for stakers who use a VPN

View on Reddit →

It appears that some of you aren’t aware of what happened with Mullvad.

Mullvad is a VPN outfit located in Sweden, which has strong privacy laws.

Mullvad gets raided by the police who want user data:

https://www.hackread.com/mullvad-vpn-office-raided-police-user-data/

Mullvad frustrates that effort by not having any user data.

A little over a month later Mullvad is forced to withdraw their forwarded-ports service, which I’m sure some of you know is what you want to have if you’re trying to run a node over a VPN:

https://mull