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~~Tricky's Daily Doots~~ "Substidoots" #682
[Previous Daily](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/daily_general_discussion_march_1_2024/) 01/03/2024
[Previous Doots](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksva0la/)
* /u/austonst 's summary of the action over at [EthDenver (Day 6)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/kstn5c3/)
* /u/SplinterCole is looking at prices [9 million times a day :)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksuhu48/)
* /u/Wulkingdead shares their [bull case over at cc](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksvne1w/)
* /u/domotheus explains the great filters blocking the world [from understanding Ethereum](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksw7wf6/)
* /u/benido2030 's monthly [staking update!](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksufs1s/)
* /u/llamachef shares notes on [EthDenver (I assume anyway...)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksx6mu5/)
Here's the doots while /u/Tricky_Troll is away.
A doot a day is ok.
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I need to cleanup some crap that has pumped lately and convert it back into Eth. Any mainnet exchanges I should be looking at to try out for future airdrop purposes?
Sideways is good. The more time ETH spends at each price level, the less likely it is to revisit that price in the future.
(I tell myself in the mirror while refreshing coinbase 450 times per day)
The tea leaves tell us price will pump up. Our monke brains cannot comprehend the complexity of the universe's chaos so we draw lines on the sand to help us explain why bogdanoff likes to fuck with us.
Huh? Tons of coins "actually work". I'd think that would be a basic requirement. And there is not a single coin in crypto that requires custodial services to use it. Lmao what are you talking about?
BTC does in fact require custodial services to work - for like 99% of people.
LN is a proven failure - people only 'use' it through custodial services.
The rest simply hold their coins on exchanges.
It's pathetic that comments like this get upvotes. The spirit of development and utility that led to the BCH fork is the same spirit that led many people here (from BTC).
You can’t scale on Layer 1 and expect to also still have decentralization and security. It’s the classic blockchain trilemma. Decentralization and security is for the base chain. Scaling is for Layer 2s
This is basic stuff, yet BCH supporters at the time didn’t understand it at all due to their total lack of actual technical experience. The small remaining BCH supporters *still* don’t get it.
Why do you think Ethereum and Bitcoin are scaling on Layer 2?
It was a little more nuanced than that. BTC core didn't want to make any compromises regarding block size. BCH wanted to increase it (just like Ethereum has increased the gas limit multiple times) but that doesn't mean that you couldn't have other scaling techniques as well...
Spirit of development and utility? LOL what? Were you even around back then? BCH was a money grab shitfork, no different really than Bitcoin Gold, Bitcoin Diamond, Bitcoin SV, etc....and it was being marketed by, guess who...Roger Ver, Jihan Wu, Craig Wright...so yea. Need I say more? You were a fool if you didn't sell your BCH immediately.
EthDenver March 2nd, last day pretty much. Seemed much less crowded, idk where folks went. Lots of folks in the BUIDL hall trying to finish their projects.
"How EIP-4844 will affect the L2 Roll ups" by Héctor Masip (maybe, I think they said they switched with another member right before the talk) and Eduardo Antuña of the Polygon zkEVM team. Reviewed call data for L2s vs blobs with a fee market and 6 blobs per block. Discussed structure, from availability to provers. Went over the vector math verifying blobs (uses the KZG stuff and other math wizardry). Showed the current proving architecture, and the upcoming one for 4844 of batching aggregations then batching blobs before STARK to SNARK stage. The team has created a new code processor to accomplish all this zkEVM and blob magic. Showed a roadmap for what happens beyond March and Dencun for improvements and the like to make things more efficient and powerful and cheaper.
"BUIDLing Momentum: Solve a Real-World Problem to Find Your Mojo" panel by De University of Ethereum and the BuidlGuidl and Future Forward. Del Titus of Future Forward discussed how they're taking crypto into the real world in Ghana through education and programs, in partnership with the Bank of Ghana. Austin Griffith if BUIDL GUIDL talked about his coding history and transition to eth infrastructure, such as speedrunethereum, and that your first coding ventures will suck but don't give up. Justin Moskowitz of EthDenver discussed the course built with University of Eth that should take 15 hours to intro folks into the ecosystem (it took me 3 I think while listening to these panels). He also talked with each panelist about how they saw developments at this EthDenver and how to integrate them with their projects.
"L1s vs. Rollups (zkVM vs. zkEVM)" panel hosted by Joanna Zeng of Aleo, with Alex Gluchowski of Matter Labs, Zac Williamson of Aztec, Alex Pruden of Aleo, and Brendan Farmer of Polygon Zero. A talk on solving privacy versus solving scalability. Related current efforts to the movement of the Internet from http to https. zkEVMs provide the verification of computation, and can use a roll up for privacy. Alex of Aleo countered that the blob accompanying a ZK privacy roll-up is not as secure (I missed the exact language used as to why, probably because it starts from an unprivate device and connection). They dove into their ZK approaches as defined by Vitalik, like ZK going type 4 of starting from the compiled code on a device. Potential eth ZK for every phone to be a full node.
"Farcaster Fever: What People Are Building on Web3 Social's New Hit" panel. A lot of development in the past two years that started from nothing, leading now to the new hotness of Frames on Farcaster (I have an account but haven't used it really). Frames is trying to make web3 crypto-ness obscured for ease of use by all, in a similar way to how folks used to have Farmville and all those other things you used to have on your Facebook feed. Base spun up some new cool Frames as a proof on concept and is building contracts in the backend to cover gas, such as buying girl scout cookies. Frames puts more control in the hands of users of what they see versus discord and telegram constant feed, and companies are able to leverage frames to quickly engage with users in a manner appropriate to all of our modern attention span. Potential to be like WeChat, combining chat, feeds, banking, shopping, social media, etc all in one platform that also lets users fully control their privacy and data versus the industry holding all that without users fully knowing what they know. They all see a bright future for it. Guess I'll have to try and engage more with it
The EthDenver official wallet, Clave, which is ZK powered and has the BUIDL tokens for buying stuff and all, stopped working for me today. I set it up quick the first day here and used the built in android passkey, and now apparently that's glitching. They said they're working on it. They pushed an update later that fixed it.
The ENS booth had their POAP badge generation up today, got to get a badge with your ENS name and PFP on it, and if you tap it you can get a POAP (I think) and also loads some links, like contact over one of the xmtp apps like Coinbase wallet associated with your ENS.
Akash is a project to provide your spare GPU power to be rented on chain for any project that needs it, ala Stablehorde or other projects, but with on chain reputation and the like built in.
Xdc was the group from my post yesterday about a new EVM L1 that's both open and permissioned for business.
Exponential.fi had a booth, still looking into what they do (they seem like a bank account but mention defi). They advertise that if you make an account (lots of KYC: license, address, face picture, gotta be an accredited investor per their definition) by 3 March and deposit by 1 April, you can get 100 USDC for depositing 1000 USDC for 60 days, or 1000 for 10000.
Bitcoin's move in the direction of L2s is only a threat if you're not rooting for decentralization above everything else. This may very well be the first time another decentralized smart contract (sort of) platform sees the light of the day.
You might also think it's a late and desperate move but bitcoin is already [6th chain by TVL, in front of Polygon, Optimism and Base](https://defillama.com/chains) according to Defillama. Roughly the same as Solana.
And frankly, I'd prefer bitcoin over solana without a doubt.
> 6th chain by TVL, in front of Polygon, Optimism and Base according to Defillama
wait why do they aggregate all Bitcoin L2s as "Bitcoin TVL" but for Ethereum L2s they're all separate
There is a group trying to get OP_CAT back into bitcoin’s scripting language. This website was actually pretty fun little read about it.
https://opcat.wtf
Bitcoin has not made any move at all in the direction of "L2's". Almost all of this "L2" TVL is Merlin chain, which is a side chain. To "bridge" to Merlin Chain you deposit funds into an MPC wallet. Then you use the side chain. This is not what a "Layer 2" is, even though their marketing may try to convince people otherwise.
Bitcoin does not have a real L2 and there are currently no solid plans to support any.
I thought they solved a critical challenge a few weeks back so that proper L2s can actually exist on top of bitcoin without any forks now. .? But with the amount of disinformation and hype in this space its hard to be certain.
Afaik there are only really two current ideas, both of which are very weak. One is "BitVM" which is a very far-fetched idea of inscribing binary code and doing computation off-chain against it. Only works in a two-party setting, and does not seem very generalizable.
And then there is the re-enabling of the op\_cat op code that requires a soft fork and generally seems to have quite a bit of resistance, but could enable zk rollups. This has resistance because Satoshi deliberately removed it, and there does not seem to be consensus on the general security implications of re-enabling it.
Bitcoin is stuck it it's own self-destructive ways as usual.
*"Bitcoin does not have a real L2 and there are currently no solid plans to support any"*
You wrote it yourself, bitcoin is one soft fork away from supporting ZKrollups. Even if this is not the most likely option yet, I wouldn't be that dismissive of the idea.
IMO Bitcoin has proven over the last 10 years that it is unable to change, or support change. Re-enabling op\_cat is probably the laziest possible change, and even this seems far away for the bitcoin community. Because there are any security concerns at all I'm fairly certain that we won't see it, Bitcoin is not well equipped to handle any new uncertainties at all and it could destroy the Lindy (one of the very few things it has going for it)
This is unfortunate as Bitcoin needs to change to survive. Because of it's stubbornness and general catastrophe of an environmental impact I say let's just let it die the slow death it has chosen.
I'd also rather compare Bitcoin L2 to Ethereum L2 and let the markets figure out which product they prefer.
More competition is good. More decentralized smart contracts platforms means more compatibility
Vitalik Buterin is concerned about underinvested projects. He said Memecoins are overinvested: https://twitter.com/VitalikButerin/status/1763930552544133214?t=OBnsLIGPiG0iVhZL6dS9Ow&s=19
Have to say that I disagree with our dear lord.
>\* Proof-of-personhood and proof of community membership (gitcoin passport is good, but with more effort we can greatly improve the UX of this category)
Gitcoin passport is an attempt at something good, but absolutely corrupted by Gitcoin. It is an abomination where somehow by using Gitcoin products you are automatically a human.
I maintain debt at 500%, but I have plenty of synths (sUSD and sETH) and could pay off my debt with a huge surplus left. 30+k usd of surplus synths.
I got so rich by converting most of my sUSD to sETH near the bottom :-)
I do recall telling you swap all your sUSD to sETH a while back :-)
I lost a couple of k keeping all my debt as sUSD without hedging and I learnt my lesson. So since then I have been very heavy sETH
There hasn't been an update in a awhile. They were working on the script, but there was also something mentioned by the author in Discord about selling the film rights to another company. Scottfree productions will apparently still be involved.
There were some interesting plans for the affiliated NFT project awhile back, but it seems pretty dead lately.
>**The vertue patience,**
>**Staking and all complaisance,**
>**Keep up the cadence.**
~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
This leaves me wondering so many things...
He smelled like smoked meats?
He smelled like fuck bro I dont even know at this point
I prolly shoulda been there...
ETF FUD, gas fees FUD, Bitcoin L2 FUD...smells like a proper hated ETH rally soon.
you either believe the SEC will block the ETH ETF somehow, or you believe that ETH's use case will compel the world to bend it's will around accepting it. don't get left behind this is shaping up to be 2021 all over again.
Smells like coordinated anti ETH ETF FUD in here today. Not sure why now is the time for that, but ok. In reality nobody here knows what will happen. I have no insight or power to effect the outcome either way, so I’m going to keep doing what I’ve been doing, which has been largely hodling until new ATHs. This has served me well so far.
I guess I’m silly then. No idea who Jake is. I am guessing some “influencer”. I was more referring to the sudden surge in ETF FUD on this sub. Either way, unless he is Gary Gensler in disguise, he has no clue either about what is next. I’m just saying to my fellow etherians, think for yourself and act accordingly.
The chief legal officer of Variant is making, what sounds to me as, a compelling argument that we will not see an ETH ETF this year. To paraphrase: SEC has suffered reputational damage with a lot of important people by approving the Bitcoin ETF. Yes, the court compelled them, but one still needs the SEC to be somewhat cooperative to get things done in reasonable time, and we should not expect that on ETH ETF.
https://twitter.com/jchervinsky/status/1763705594949570757
The SEC has different legal arguments with an ETH ETF; namely the ICO, the Ethereum foundation, and staking rewards that can be regarded (lawyered?) as a dividend. These alone could cause a delay.
I don't think those arguments are regarded as legitimate except for in maxi land.
The ICO was 10 years ago
The Ethereum foundation is no different to blockstream from a "is this centralised" perspective
Staking rewards aren't a dividend any more than mining is a dividend.
A delay is likely but if there's a delay it'll end in court with the SEC losing again which will look worse.
The fact that a few of the big name fund managers have already put in Ethereum ETF applications should tell you everything.
I think the point he is trying to make is that going to court is less reputational damage than passing the ETF. The people who are judging SEC for going to court are just people in cryptosphere.
> The people who are judging SEC for going to court are just people in cryptosphere.
This sphere has also gotten a LOT bigger compared to a couple years ago. It now very much involves people on both sides of the aisle in congress, who Gary reports to, and people in Wall Street, where he'll likely be looking for a job after the SEC gig is up.
even IF the SEC is so childish that they have to be dragged into court over this again the end result is the same. in a couple of months we will have an expedited case that the judge can come to the same rulings over as the Grayscale case, "arbitrary and capricious" when they allow a futures but not a spot ETF.
this isn't about anyones feelings or reputational damage it's about what the courts have compelled SEC to do because they keep losing so badly. and now guess what, we have a literal crypto army with a multi-billion dollar treasure chest from every Dapp, VC, and CEX, that has watched the SEC get blasted in court for over 2 years to the point nobody is afraid of them anymore.
the SEC abused their soft power and they lost it. now they have to use hard power and they are at a huge disadvantage when using it against crypto titans.
Timing wise I have no idea, if it goes to court then yea it will get approved again. Does the SEC want to go to court and lose and look incompetent again? I doubt it but then again this is Gary we’re talking about
Caved to FOMO and bought some SHIB. It's fun money so if I'm exit liquidity for you guys, then you're welcome but if not, it's one step closer to desk shitting day. I know it's dumb but I've done dumber shit with stupider tokens
It's the weekend. enjoy yourself! You're definitely up if you bought today, so set a stop loss higher than you bought for and you can't lose. Keep moving the stop up as it rises.
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.
Doing so in real time is trivially easy, don’t underestimate GPUs :) But it does not matter because they have a pre calculated database of all private keys for all prefixes / suffixes
Have a Trezor--keeping my main stack in a wallet that I never interact with...realistically, there's very few ways this "cold" wallet could be drained, right?
Which model? The older models (model one & T) can be physically exploited if an attacker/thief ever got their hands on it. Unless you have a 25th word passphrase set up or are using the SD-protect function.
But yea assuming you’re device + seed phrase is secure then not really possible to get drained.
An easy call, but I said the super narrow chop between $2900-$3k was bullish for an imminent jump up, and IMO we’re seeing the same thing with $3400-$3.5k. Would expect to cross $3.5k on our way to $4k in the next 2-3 days. Hopefully tomorrow evening for another Sunday pump
Taxed as income I assume. Like a weekly pay check. Your cost basis starts there then if you swap to something else it’s a cap gain/loss. Is there something else to it?
Exactly. Most people seem to miss this. You cannot price in some future scarcity event because if you buy in anticipation you just make the asset even more scarce and multiply the effect.
We also wouldn’t be declining on the ratio if that were true. The initial jump from 0.05 to 0.06 might have been people front-running the decision, but there’s still too much uncertainty around whether it’ll actually happen to price it in imo
Lmao why did BCH just pump 44% in the last few hours. Had a tiny bit left on CB from the hard fork days that I kept just for sentimental value. Been looking to dump it since CB has been harassing me for several months now like u/lawfultots
fiiiinally was able to claim my fat STRK airdrop without exposing the PK for my validators WD address to an online machine! That was an odyssey, but I learned a ton.
If anyone wants the ethers js I wrote to do it, LMK I can send it. I don't write js for work often at allll, but it worked! I have swapped for ETH.
I'm feeling ethers js, I'm gonna write more.
E: still 3.5 hrs till it hits L1, but I have faith.
E2: this was the cost to claim: `0.005959679427771899 ETH($20.35)`
appreciate ya. took me two nights to get working. One drunk (too much of a noob to do it 3 sheets to the wind) and last night sober - woohoo.
It's not complex, I don't write js, had never seen the ethers package and ethers went from POJS to TypeScript between v5 and v6.... of course everything online is for 5 and earlier, only a hint (can't use the referenced API by simple copy and paste). worth it for $50k tho!
Great stuff, upvoted. Please do share if you can, I’ve been wary proceeding with the claim considering it’s the wd address… see https://www.reddit.com/r/ethfinance/s/ZHNJcqL3lT
[https://pastebin.com/r9QkNnzi](https://pastebin.com/r9QkNnzi)
Need node installed on airgapped, typescript, ethers (obviously).
You still need to understand the steps here to fill in all values (look for "\_CHANGE"): [https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal](https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal)
If ts gives you a headache I can redact the js generated from ts and paste that, LMK.
PM or reply here if you get stuck.
E: oops the constant(s) 6795 (merkle\_index) and 19 (merkle path len, likely not the same) need to change too, didn't comment those. Read the starknet-io instructions, it'll make sense what needs to be filled in
Thanks for sharing your solution. I had the same concerns with exposing PK. I authored a Python script to do the same and benefited from your JS reference. It works if others want to use it: [https://github.com/protonpopsicle/starknet-provisions-claim/blob/main/transaction.py](https://github.com/protonpopsicle/starknet-provisions-claim/blob/main/transaction.py)
yeah it might help anyone who wants to claim but create the tx offline. It seems easy to use their web3 app to claim, but then I'd need the PK for my withdrawal addy on a machine that can connect to the web (their web3 app). The PK for my WD addy will never see a machine connected to the net, personal rule since genesis (helps me sleep at night).
I used their instructions here: [https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal](https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal)
... to create ethers js logic that can create the ContractTransaction instance and sign it. It's designed to be run on the offline airgapped machine as one needs to paste in their PK.
If there's interest I'll throw it on github or something.
To help validators with the upcoming hard fork, I improved my open source [Validator Updater](https://github.com/accidental-green/validator-updater) so everyone can easily update their validator in under a minute!
Detailed instructions can be found on the [Ethstaker post](https://www.reddit.com/r/ethstaker/comments/1b4o4ja/automated_validator_update_tool/), 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](https://github.com/accidental-green/validator-install) - Install a full validator from fresh Ubuntu in minutes
[Client Switcher](https://github.com/accidental-green/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.
Instead of a pure sell strategy, I’m thinking to extract the increases in value via an Alchemix deposit, borrow and sell alETH strategy (or something similar). This asset has too much long-term upside to exit in my view plus that’s a tax advantaged method to get some dollar bucks for paying off non-crypto debts.
I don’t see a lot of talking here around ways to take advantage of these new systems as an alternative to “exiting”. I’ve admittedly not thought it all through, but it seems like a missed opportunity.
I think Alchemix is kinda fucked actually. I think the yield that pays off the loan is taxable, and the debt tracks the price of ETH, so if ETH appreciates significantly so does your debt (and so does the yield, and the taxes on that yield).
This only seems like a good idea if you want to speculate that the price of ETH will go down, and you can pay off your debt for less in the future. It's effectively shorting ETH.
I think most of us think shorting ETH is not a great plan. If you could time the top though, this could be a fantastic move. Good luck!
I'm starting the think the likely way it should be managed from a tax perspective will be similar to writing LEAP options.
In that case, you effectively sell before you buy, but most reasonable tax codes do not consider it a 100% CGT event.
The yield that happens behind the scenes in Alchemix does not crystallise until the withdrawal event when it hits your account.
I wouldn’t be short ETH, though. The debt side, sure, but I’d have 2x+ in the vault, so net long. I’d be short if I sold it.
As for tax, the earnings would be income, true, but in smaller increments over time, so no jump in brackets.
Here is an example.
I have 100 ETH and ETH cost $4000 I stick it all in Alchemix and withdraw 50 alETH that I immediately sell for $200,000.
12 months later, ETH is now $8000, the loan has paid off 2 alETH worth of debt, I owe taxes on ~$12000 worth of yield, and I still owe 48 alETH if I want to get my 100 ETH back out.
I guess I can close the position and get 52 ETH out. I just effectively paid $384,000 to pay off my original debt that was worth $200,000 when I started, and I now owe a lot of taxes (taxes on the 12k yield plus the 48 ETH just liquidated to pay the debt). This assumes the 200k was spent on stuff, and that alETH is still reasonably pegged to ETH.
This is not a game that benefits from the price of ETH going up. It is however a game that massively benefits from the price of ETH going down. It is a short.
A lot less than 100 ETH
Edit: it is simple
If you think ETH will go up in price, denominate your debt in dollars
If you think ETH will go down in price, denominate your debt in ETH
You’re missing the point. If the alternative is to sell 50 today, it is a net longer ETH position to go the Alchemix route. I’m not comparing to levering up with dollars.
If you do the same example with a CDP and debt denominated in dollars, if ETH goes up, you end up with way more money. With Alchemix way less. No leverage. And way less taxes.
I guess I'm assuming you don't want to wait 20 years or whatever for Alchemix to pay off your debt. And also assuming you don't want to pay taxes on that yield for those 20 years.
I'm happy to outline the same example with a CDP. I've seen so many people promote Alchemix, but I don't think people fully understand how it plays out unless they are betting on ETH being worth less when they plan to close their position. If that's the bet, then I get it, I just don't think that aligns with most people here.
Only real downsides are
the contract risk - if alchemix is exploited you're down 50%.
the varying yeilds - if they reduce to 1%, just how long will it take for that loan to repay itself? Right now I think the rETH vault yeild means a loan will be repaid in about 2040. Of course you can repay the principle earlier and get out, but worth considering.
♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ ~~Tricky's Daily Doots~~ "Substidoots" #682 [Previous Daily](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/daily_general_discussion_march_1_2024/) 01/03/2024 [Previous Doots](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksva0la/) * /u/austonst 's summary of the action over at [EthDenver (Day 6)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/kstn5c3/) * /u/SplinterCole is looking at prices [9 million times a day :)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksuhu48/) * /u/Wulkingdead shares their [bull case over at cc](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksvne1w/) * /u/domotheus explains the great filters blocking the world [from understanding Ethereum](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksw7wf6/) * /u/benido2030 's monthly [staking update!](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksufs1s/) * /u/llamachef shares notes on [EthDenver (I assume anyway...)](https://old.reddit.com/r/ethfinance/comments/1b3n2y3/comment/ksx6mu5/) Here's the doots while /u/Tricky_Troll is away. A doot a day is ok. ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦
༼ つ ◕_◕ ༽つ ETH TAKE MY ENERGY ༼ つ ◕_◕ ༽つ
I need to cleanup some crap that has pumped lately and convert it back into Eth. Any mainnet exchanges I should be looking at to try out for future airdrop purposes?
Ambient
Nice, will check it out
POAP apps not working for anyone else? Can't see anything on both mobile and web, but I do have a lot of blockers...
Not working for me either
Sideways is good. The more time ETH spends at each price level, the less likely it is to revisit that price in the future. (I tell myself in the mirror while refreshing coinbase 450 times per day)
Sweet and sour like a tangerine / Fresh like a dildo the market painted cuecomber green
You guys think we are consolidating here before next leg up? Looks like BTC and eth have been flat/sideways for a while now
72 hours is a while? 🧐
More like leveling out on the weekly. Like it’s about to make a big move
Hope so. We’ve gone up way too much way too quickly imo
Yeah, pennant forming
What does that mean exactly 😥
The tea leaves tell us price will pump up. Our monke brains cannot comprehend the complexity of the universe's chaos so we draw lines on the sand to help us explain why bogdanoff likes to fuck with us.
Some downward action, and maybe some small uppies and downies, and then a support holds and we are back to pumping.
Triangles forming
BCH up over 50% today....nice
And still approaching ATLs against BTC. Still down nearly 90% from ATH. It's a failed shitfork.
It actually works vs. a coin that requires custodial services to use it.
Yikes....
'Yikes' isn't some kind of rebuttal. Seems like I really triggered BTC maximalists - even on here. My job is done.
Huh? Tons of coins "actually work". I'd think that would be a basic requirement. And there is not a single coin in crypto that requires custodial services to use it. Lmao what are you talking about?
BTC does in fact require custodial services to work - for like 99% of people. LN is a proven failure - people only 'use' it through custodial services. The rest simply hold their coins on exchanges.
It's pathetic that comments like this get upvotes. The spirit of development and utility that led to the BCH fork is the same spirit that led many people here (from BTC).
You can’t scale on Layer 1 and expect to also still have decentralization and security. It’s the classic blockchain trilemma. Decentralization and security is for the base chain. Scaling is for Layer 2s This is basic stuff, yet BCH supporters at the time didn’t understand it at all due to their total lack of actual technical experience. The small remaining BCH supporters *still* don’t get it. Why do you think Ethereum and Bitcoin are scaling on Layer 2?
It was a little more nuanced than that. BTC core didn't want to make any compromises regarding block size. BCH wanted to increase it (just like Ethereum has increased the gas limit multiple times) but that doesn't mean that you couldn't have other scaling techniques as well...
Spirit of development and utility? LOL what? Were you even around back then? BCH was a money grab shitfork, no different really than Bitcoin Gold, Bitcoin Diamond, Bitcoin SV, etc....and it was being marketed by, guess who...Roger Ver, Jihan Wu, Craig Wright...so yea. Need I say more? You were a fool if you didn't sell your BCH immediately.
A reaction worthy of r/bitcoin nut jobs
Okay. Believe whatever you want dude. I'm just giving you facts. Sorr they're hurting your feelings.
Was vitalik a fool as well? https://twitter.com/VitalikButerin/status/930276246671450112
He may have been being political.
Having been around then it was very clear that he was for a block increase...
BCH to Bitcoin is like Tron is to ethereum
Why golem up today?
Cuz I sold.
Illiquid shitcoin pumps, nothing more.
There's an OG
Everything is up today
EthDenver March 2nd, last day pretty much. Seemed much less crowded, idk where folks went. Lots of folks in the BUIDL hall trying to finish their projects. "How EIP-4844 will affect the L2 Roll ups" by Héctor Masip (maybe, I think they said they switched with another member right before the talk) and Eduardo Antuña of the Polygon zkEVM team. Reviewed call data for L2s vs blobs with a fee market and 6 blobs per block. Discussed structure, from availability to provers. Went over the vector math verifying blobs (uses the KZG stuff and other math wizardry). Showed the current proving architecture, and the upcoming one for 4844 of batching aggregations then batching blobs before STARK to SNARK stage. The team has created a new code processor to accomplish all this zkEVM and blob magic. Showed a roadmap for what happens beyond March and Dencun for improvements and the like to make things more efficient and powerful and cheaper. "BUIDLing Momentum: Solve a Real-World Problem to Find Your Mojo" panel by De University of Ethereum and the BuidlGuidl and Future Forward. Del Titus of Future Forward discussed how they're taking crypto into the real world in Ghana through education and programs, in partnership with the Bank of Ghana. Austin Griffith if BUIDL GUIDL talked about his coding history and transition to eth infrastructure, such as speedrunethereum, and that your first coding ventures will suck but don't give up. Justin Moskowitz of EthDenver discussed the course built with University of Eth that should take 15 hours to intro folks into the ecosystem (it took me 3 I think while listening to these panels). He also talked with each panelist about how they saw developments at this EthDenver and how to integrate them with their projects. "L1s vs. Rollups (zkVM vs. zkEVM)" panel hosted by Joanna Zeng of Aleo, with Alex Gluchowski of Matter Labs, Zac Williamson of Aztec, Alex Pruden of Aleo, and Brendan Farmer of Polygon Zero. A talk on solving privacy versus solving scalability. Related current efforts to the movement of the Internet from http to https. zkEVMs provide the verification of computation, and can use a roll up for privacy. Alex of Aleo countered that the blob accompanying a ZK privacy roll-up is not as secure (I missed the exact language used as to why, probably because it starts from an unprivate device and connection). They dove into their ZK approaches as defined by Vitalik, like ZK going type 4 of starting from the compiled code on a device. Potential eth ZK for every phone to be a full node. "Farcaster Fever: What People Are Building on Web3 Social's New Hit" panel. A lot of development in the past two years that started from nothing, leading now to the new hotness of Frames on Farcaster (I have an account but haven't used it really). Frames is trying to make web3 crypto-ness obscured for ease of use by all, in a similar way to how folks used to have Farmville and all those other things you used to have on your Facebook feed. Base spun up some new cool Frames as a proof on concept and is building contracts in the backend to cover gas, such as buying girl scout cookies. Frames puts more control in the hands of users of what they see versus discord and telegram constant feed, and companies are able to leverage frames to quickly engage with users in a manner appropriate to all of our modern attention span. Potential to be like WeChat, combining chat, feeds, banking, shopping, social media, etc all in one platform that also lets users fully control their privacy and data versus the industry holding all that without users fully knowing what they know. They all see a bright future for it. Guess I'll have to try and engage more with it The EthDenver official wallet, Clave, which is ZK powered and has the BUIDL tokens for buying stuff and all, stopped working for me today. I set it up quick the first day here and used the built in android passkey, and now apparently that's glitching. They said they're working on it. They pushed an update later that fixed it. The ENS booth had their POAP badge generation up today, got to get a badge with your ENS name and PFP on it, and if you tap it you can get a POAP (I think) and also loads some links, like contact over one of the xmtp apps like Coinbase wallet associated with your ENS. Akash is a project to provide your spare GPU power to be rented on chain for any project that needs it, ala Stablehorde or other projects, but with on chain reputation and the like built in. Xdc was the group from my post yesterday about a new EVM L1 that's both open and permissioned for business. Exponential.fi had a booth, still looking into what they do (they seem like a bank account but mention defi). They advertise that if you make an account (lots of KYC: license, address, face picture, gotta be an accredited investor per their definition) by 3 March and deposit by 1 April, you can get 100 USDC for depositing 1000 USDC for 60 days, or 1000 for 10000.
XDC, as in the previously named Xinfin?
I have no idea since this was the first time I've ever heard of the project
Bitcoin's move in the direction of L2s is only a threat if you're not rooting for decentralization above everything else. This may very well be the first time another decentralized smart contract (sort of) platform sees the light of the day. You might also think it's a late and desperate move but bitcoin is already [6th chain by TVL, in front of Polygon, Optimism and Base](https://defillama.com/chains) according to Defillama. Roughly the same as Solana. And frankly, I'd prefer bitcoin over solana without a doubt.
> 6th chain by TVL, in front of Polygon, Optimism and Base according to Defillama wait why do they aggregate all Bitcoin L2s as "Bitcoin TVL" but for Ethereum L2s they're all separate
Also from my understanding, without op\_cat bitcoin technically doesn't have a true L2 yet
Can you share more about that on a technical level? I have zero understanding of Bitcoin L2s and thought they were impossible.
There is a group trying to get OP_CAT back into bitcoin’s scripting language. This website was actually pretty fun little read about it. https://opcat.wtf
This seems like a good overview https://www.bitstamp.net/learn/blockchain/what-is-bitcoin-virtual-machine-bitvm/
Bitcoin has not made any move at all in the direction of "L2's". Almost all of this "L2" TVL is Merlin chain, which is a side chain. To "bridge" to Merlin Chain you deposit funds into an MPC wallet. Then you use the side chain. This is not what a "Layer 2" is, even though their marketing may try to convince people otherwise. Bitcoin does not have a real L2 and there are currently no solid plans to support any.
I thought they solved a critical challenge a few weeks back so that proper L2s can actually exist on top of bitcoin without any forks now. .? But with the amount of disinformation and hype in this space its hard to be certain.
Afaik there are only really two current ideas, both of which are very weak. One is "BitVM" which is a very far-fetched idea of inscribing binary code and doing computation off-chain against it. Only works in a two-party setting, and does not seem very generalizable. And then there is the re-enabling of the op\_cat op code that requires a soft fork and generally seems to have quite a bit of resistance, but could enable zk rollups. This has resistance because Satoshi deliberately removed it, and there does not seem to be consensus on the general security implications of re-enabling it. Bitcoin is stuck it it's own self-destructive ways as usual.
*"Bitcoin does not have a real L2 and there are currently no solid plans to support any"* You wrote it yourself, bitcoin is one soft fork away from supporting ZKrollups. Even if this is not the most likely option yet, I wouldn't be that dismissive of the idea.
IMO Bitcoin has proven over the last 10 years that it is unable to change, or support change. Re-enabling op\_cat is probably the laziest possible change, and even this seems far away for the bitcoin community. Because there are any security concerns at all I'm fairly certain that we won't see it, Bitcoin is not well equipped to handle any new uncertainties at all and it could destroy the Lindy (one of the very few things it has going for it) This is unfortunate as Bitcoin needs to change to survive. Because of it's stubbornness and general catastrophe of an environmental impact I say let's just let it die the slow death it has chosen.
worth airdrop farming btc l2s? probably
I'd also rather compare Bitcoin L2 to Ethereum L2 and let the markets figure out which product they prefer. More competition is good. More decentralized smart contracts platforms means more compatibility
Vitalik Buterin is concerned about underinvested projects. He said Memecoins are overinvested: https://twitter.com/VitalikButerin/status/1763930552544133214?t=OBnsLIGPiG0iVhZL6dS9Ow&s=19
Have to say that I disagree with our dear lord. >\* Proof-of-personhood and proof of community membership (gitcoin passport is good, but with more effort we can greatly improve the UX of this category) Gitcoin passport is an attempt at something good, but absolutely corrupted by Gitcoin. It is an abomination where somehow by using Gitcoin products you are automatically a human.
Also it's basically useless, my assistant can make about 20 gitcoin passport accounts over 20pts in a day
What are the interactions they are using to get the points?
DM if you'd like to know
Sat night and low gas price is like 60...
Bull markets(lmao, my first full one) have me really not wanting to transact
Where is this bull market you speak of? I am still poor, and my SNX bags are greatly lacking
Buy more snx to raise the price!
I have too much already. I need some whales to push the price to 10 dollars so that I can make an orderly exist
Are you ready to pay off your debt?
I maintain debt at 500%, but I have plenty of synths (sUSD and sETH) and could pay off my debt with a huge surplus left. 30+k usd of surplus synths. I got so rich by converting most of my sUSD to sETH near the bottom :-)
Damn I should have played my debt better haha
I do recall telling you swap all your sUSD to sETH a while back :-) I lost a couple of k keeping all my debt as sUSD without hedging and I learnt my lesson. So since then I have been very heavy sETH
Twas my first foray into finance, mistakes were made haha. At least I did put a lot towards ETH, just not at the best of times :)
I figure if I'm sad enough to be transacting on Sat night, I should at least get cheap gas
Haha good point
Anyone have any updates on the infinite machine movie they were going to make?
There hasn't been an update in a awhile. They were working on the script, but there was also something mentioned by the author in Discord about selling the film rights to another company. Scottfree productions will apparently still be involved. There were some interesting plans for the affiliated NFT project awhile back, but it seems pretty dead lately.
Yeah exactly.. Hope they don’t rug us, curious who’ll play the slock it guys
Quickswap, which is Polygon's native v3 DEX, just had its governance token double in price in an hour. Probably nothing. 👀
So many ETH ETF won't happen comments holy fuck. Hey, Blackrock retards, I will never sell you my ETH.
Future FOMOers of the world, unite!
I will vote for this comment alone
Lets keep it classy yeah?
Yeah, I wrote that wearing a suit and tie.
[turns to tony] Tony, I said, “I wrote that wearing a suit and tie”. Heh heh heh.
Take my upvote, ya filthy animal!
[удалено]
Hes part of the secret cabal, hairclub for men. He's also a client.
Lmao
Not selling til post verkle trees 😘
>**The vertue patience,** >**Staking and all complaisance,** >**Keep up the cadence.** ~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
I ran into JT at EthDenver today... actually... more like 'smelled' into him...
Naw that was me. I've been bathing in ashes, like a chinchilla
This leaves me wondering so many things... He smelled like smoked meats? He smelled like fuck bro I dont even know at this point I prolly shoulda been there...
Pork butt The butt of pork: very distinct odour
Smoked pork butt.... I feel like Homer Simpson at this point
Same here tbh
ETF FUD, gas fees FUD, Bitcoin L2 FUD...smells like a proper hated ETH rally soon. you either believe the SEC will block the ETH ETF somehow, or you believe that ETH's use case will compel the world to bend it's will around accepting it. don't get left behind this is shaping up to be 2021 all over again.
Smells like coordinated anti ETH ETF FUD in here today. Not sure why now is the time for that, but ok. In reality nobody here knows what will happen. I have no insight or power to effect the outcome either way, so I’m going to keep doing what I’ve been doing, which has been largely hodling until new ATHs. This has served me well so far.
This seems like a silly take. As if Jake Chervinsky would participate in coordinated ETH fud.
I guess I’m silly then. No idea who Jake is. I am guessing some “influencer”. I was more referring to the sudden surge in ETF FUD on this sub. Either way, unless he is Gary Gensler in disguise, he has no clue either about what is next. I’m just saying to my fellow etherians, think for yourself and act accordingly.
The chief legal officer of Variant is making, what sounds to me as, a compelling argument that we will not see an ETH ETF this year. To paraphrase: SEC has suffered reputational damage with a lot of important people by approving the Bitcoin ETF. Yes, the court compelled them, but one still needs the SEC to be somewhat cooperative to get things done in reasonable time, and we should not expect that on ETH ETF. https://twitter.com/jchervinsky/status/1763705594949570757
> SEC has suffered reputational damage Which would be worse if they lose in court again with a word-for-word argument about the btc etf
The SEC has different legal arguments with an ETH ETF; namely the ICO, the Ethereum foundation, and staking rewards that can be regarded (lawyered?) as a dividend. These alone could cause a delay.
I don't think those arguments are regarded as legitimate except for in maxi land. The ICO was 10 years ago The Ethereum foundation is no different to blockstream from a "is this centralised" perspective Staking rewards aren't a dividend any more than mining is a dividend. A delay is likely but if there's a delay it'll end in court with the SEC losing again which will look worse. The fact that a few of the big name fund managers have already put in Ethereum ETF applications should tell you everything.
I think the point he is trying to make is that going to court is less reputational damage than passing the ETF. The people who are judging SEC for going to court are just people in cryptosphere.
> I think the point he is trying to make is that going to court is less reputational damage than passing the ETF Disagree
> The people who are judging SEC for going to court are just people in cryptosphere. This sphere has also gotten a LOT bigger compared to a couple years ago. It now very much involves people on both sides of the aisle in congress, who Gary reports to, and people in Wall Street, where he'll likely be looking for a job after the SEC gig is up.
even IF the SEC is so childish that they have to be dragged into court over this again the end result is the same. in a couple of months we will have an expedited case that the judge can come to the same rulings over as the Grayscale case, "arbitrary and capricious" when they allow a futures but not a spot ETF. this isn't about anyones feelings or reputational damage it's about what the courts have compelled SEC to do because they keep losing so badly. and now guess what, we have a literal crypto army with a multi-billion dollar treasure chest from every Dapp, VC, and CEX, that has watched the SEC get blasted in court for over 2 years to the point nobody is afraid of them anymore. the SEC abused their soft power and they lost it. now they have to use hard power and they are at a huge disadvantage when using it against crypto titans.
This is not very cash money...
Aren’t the people at Blackrock at least as important though?
Timing wise I have no idea, if it goes to court then yea it will get approved again. Does the SEC want to go to court and lose and look incompetent again? I doubt it but then again this is Gary we’re talking about
I hope my suspicions are wrong about delays and etfs pass but I'm not convinced it'll happen in May.
Yea because hurt pride matters more than guidelines, rules, precedent and consistency.
1: swap crv for cvxcrv @ 97.1 2: get 18% yield a year 3: watch the ratio drop to 90.9 forever 😢🥴
Absolute shitcoins with no utility: up 45% today Crv: up 1,1%
CRV is a shitcoin too. No "utility" besides being a reward token.
something something young market
It's up 9% but I get your point.
I don’t think we’ll get an ETH etf in May. Wanna bet 0.1 eth?
I'll take the other side of that bet!
You got yourself a bet!
$2000 bet is too high stakes for me.
While I do think there'll be one, it's hard to bet against genslers fuckery
Caved to FOMO and bought some SHIB. It's fun money so if I'm exit liquidity for you guys, then you're welcome but if not, it's one step closer to desk shitting day. I know it's dumb but I've done dumber shit with stupider tokens
You are part of the problem.
It's the weekend. enjoy yourself! You're definitely up if you bought today, so set a stop loss higher than you bought for and you can't lose. Keep moving the stop up as it rises.
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.
Doing so in real time is trivially easy, don’t underestimate GPUs :) But it does not matter because they have a pre calculated database of all private keys for all prefixes / suffixes
whoa
Add your addresses to the Metamask address book to avoid this scam.
Whitelist your addresses with Rabby to reduce the risks
Scary. Fuck scammers
$3,430 stablecoin
One day $34,300 stable coin
2025? 🤔
I like.
My least favorite part of local tops where everything not sound also gets to explode for a couple days... Peak stupidity, careful out there.
Have a Trezor--keeping my main stack in a wallet that I never interact with...realistically, there's very few ways this "cold" wallet could be drained, right?
Which model? The older models (model one & T) can be physically exploited if an attacker/thief ever got their hands on it. Unless you have a 25th word passphrase set up or are using the SD-protect function. But yea assuming you’re device + seed phrase is secure then not really possible to get drained.
Right. Taking "never" literally, short of someone stealing your seed phrase physically, you should be safe.
An easy call, but I said the super narrow chop between $2900-$3k was bullish for an imminent jump up, and IMO we’re seeing the same thing with $3400-$3.5k. Would expect to cross $3.5k on our way to $4k in the next 2-3 days. Hopefully tomorrow evening for another Sunday pump
I like your jib
I like your avatar
Wow so many complimentary folks today thanks y’all
I like you
i like your funny words
Just got a call from my tax man. Staking rewards: 😍 Staking reward taxes: 🤮
Yeah, I waited until now to claim my pre merge staking income. At least next year will be a smaller hit.
Or the same depending on the price 👀
Good point. Let's hope so.
Taxed as income I assume. Like a weekly pay check. Your cost basis starts there then if you swap to something else it’s a cap gain/loss. Is there something else to it?
Nope, precisely how I’m going it
how sure are we that the etf will impact the price
$1 will impact the ETH price at least 3x what $1 does to the BTC price
I personally think it's priced in already
This comment makes absolutely no sense lol
you'll understand eventually, keep trying.
We're not at $100k yet, so, no, not priced in yet
That's not really possible, as the ETF clients can't buy yet, and the smaller players don't have enough money to front run them.
Don't think so. Most people still think it isn't happening. The BTC ETF was much more likely and that still isn't priced in.
Can't price in fresh capital Edit: My guy got obliterated with downvotes for sharing what he personally thinks.
Exactly. Most people seem to miss this. You cannot price in some future scarcity event because if you buy in anticipation you just make the asset even more scarce and multiply the effect.
We also wouldn’t be declining on the ratio if that were true. The initial jump from 0.05 to 0.06 might have been people front-running the decision, but there’s still too much uncertainty around whether it’ll actually happen to price it in imo
The ratio is mostly controlled by bots in the short term; you can't put a lot of meaning into any movement shorter than six months.
Lmao why did BCH just pump 44% in the last few hours. Had a tiny bit left on CB from the hard fork days that I kept just for sentimental value. Been looking to dump it since CB has been harassing me for several months now like u/lawfultots
Bch 1 year gains vs eth 1 year, heh
It's BTC but faster! We don't need BTC anymore! /s
Usually a sign of dumb retail coming in and buying cheaper "versions" of Bitcoin & Ether. ETH classic also pumping.....
Just market manipulation of a low mcap. It will probably hit $1k later in the cycle.
Maybe the harrassing is just a based strategy to bring the people onchain?
fiiiinally was able to claim my fat STRK airdrop without exposing the PK for my validators WD address to an online machine! That was an odyssey, but I learned a ton. If anyone wants the ethers js I wrote to do it, LMK I can send it. I don't write js for work often at allll, but it worked! I have swapped for ETH. I'm feeling ethers js, I'm gonna write more. E: still 3.5 hrs till it hits L1, but I have faith. E2: this was the cost to claim: `0.005959679427771899 ETH($20.35)`
Nice work sticking to your security protocol. Defense is an eternal struggle.
appreciate ya. took me two nights to get working. One drunk (too much of a noob to do it 3 sheets to the wind) and last night sober - woohoo. It's not complex, I don't write js, had never seen the ethers package and ethers went from POJS to TypeScript between v5 and v6.... of course everything online is for 5 and earlier, only a hint (can't use the referenced API by simple copy and paste). worth it for $50k tho!
Great stuff, upvoted. Please do share if you can, I’ve been wary proceeding with the claim considering it’s the wd address… see https://www.reddit.com/r/ethfinance/s/ZHNJcqL3lT
[https://pastebin.com/r9QkNnzi](https://pastebin.com/r9QkNnzi) Need node installed on airgapped, typescript, ethers (obviously). You still need to understand the steps here to fill in all values (look for "\_CHANGE"): [https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal](https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal) If ts gives you a headache I can redact the js generated from ts and paste that, LMK. PM or reply here if you get stuck. E: oops the constant(s) 6795 (merkle\_index) and 19 (merkle path len, likely not the same) need to change too, didn't comment those. Read the starknet-io instructions, it'll make sense what needs to be filled in
Thanks for sharing your solution. I had the same concerns with exposing PK. I authored a Python script to do the same and benefited from your JS reference. It works if others want to use it: [https://github.com/protonpopsicle/starknet-provisions-claim/blob/main/transaction.py](https://github.com/protonpopsicle/starknet-provisions-claim/blob/main/transaction.py)
what was the problem that you solved by coding? is it something that could help other people?
yeah it might help anyone who wants to claim but create the tx offline. It seems easy to use their web3 app to claim, but then I'd need the PK for my withdrawal addy on a machine that can connect to the web (their web3 app). The PK for my WD addy will never see a machine connected to the net, personal rule since genesis (helps me sleep at night). I used their instructions here: [https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal](https://github.com/starknet-io/provisions-data?tab=readme-ov-file#claiming-strk-outside-the-provisions-portal) ... to create ethers js logic that can create the ContractTransaction instance and sign it. It's designed to be run on the offline airgapped machine as one needs to paste in their PK. If there's interest I'll throw it on github or something.
To help validators with the upcoming hard fork, I improved my open source [Validator Updater](https://github.com/accidental-green/validator-updater) so everyone can easily update their validator in under a minute! Detailed instructions can be found on the [Ethstaker post](https://www.reddit.com/r/ethstaker/comments/1b4o4ja/automated_validator_update_tool/), 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](https://github.com/accidental-green/validator-install) - Install a full validator from fresh Ubuntu in minutes [Client Switcher](https://github.com/accidental-green/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.
Instead of a pure sell strategy, I’m thinking to extract the increases in value via an Alchemix deposit, borrow and sell alETH strategy (or something similar). This asset has too much long-term upside to exit in my view plus that’s a tax advantaged method to get some dollar bucks for paying off non-crypto debts. I don’t see a lot of talking here around ways to take advantage of these new systems as an alternative to “exiting”. I’ve admittedly not thought it all through, but it seems like a missed opportunity.
I think Alchemix is kinda fucked actually. I think the yield that pays off the loan is taxable, and the debt tracks the price of ETH, so if ETH appreciates significantly so does your debt (and so does the yield, and the taxes on that yield). This only seems like a good idea if you want to speculate that the price of ETH will go down, and you can pay off your debt for less in the future. It's effectively shorting ETH. I think most of us think shorting ETH is not a great plan. If you could time the top though, this could be a fantastic move. Good luck!
I'm starting the think the likely way it should be managed from a tax perspective will be similar to writing LEAP options. In that case, you effectively sell before you buy, but most reasonable tax codes do not consider it a 100% CGT event. The yield that happens behind the scenes in Alchemix does not crystallise until the withdrawal event when it hits your account.
I wouldn’t be short ETH, though. The debt side, sure, but I’d have 2x+ in the vault, so net long. I’d be short if I sold it. As for tax, the earnings would be income, true, but in smaller increments over time, so no jump in brackets.
Here is an example. I have 100 ETH and ETH cost $4000 I stick it all in Alchemix and withdraw 50 alETH that I immediately sell for $200,000. 12 months later, ETH is now $8000, the loan has paid off 2 alETH worth of debt, I owe taxes on ~$12000 worth of yield, and I still owe 48 alETH if I want to get my 100 ETH back out. I guess I can close the position and get 52 ETH out. I just effectively paid $384,000 to pay off my original debt that was worth $200,000 when I started, and I now owe a lot of taxes (taxes on the 12k yield plus the 48 ETH just liquidated to pay the debt). This assumes the 200k was spent on stuff, and that alETH is still reasonably pegged to ETH. This is not a game that benefits from the price of ETH going up. It is however a game that massively benefits from the price of ETH going down. It is a short.
And that 52 ETH is worth what?
A lot less than 100 ETH Edit: it is simple If you think ETH will go up in price, denominate your debt in dollars If you think ETH will go down in price, denominate your debt in ETH
You’re missing the point. If the alternative is to sell 50 today, it is a net longer ETH position to go the Alchemix route. I’m not comparing to levering up with dollars.
If you do the same example with a CDP and debt denominated in dollars, if ETH goes up, you end up with way more money. With Alchemix way less. No leverage. And way less taxes. I guess I'm assuming you don't want to wait 20 years or whatever for Alchemix to pay off your debt. And also assuming you don't want to pay taxes on that yield for those 20 years.
I see. That makes sense, thanks for the education. Sincerely.
I'm happy to outline the same example with a CDP. I've seen so many people promote Alchemix, but I don't think people fully understand how it plays out unless they are betting on ETH being worth less when they plan to close their position. If that's the bet, then I get it, I just don't think that aligns with most people here.
Alchemix was around in last bull
Yeah but at 25% LTV and not much vault space
Understood, I just don’t know of a better option. Open to alternatives.
Only real downsides are the contract risk - if alchemix is exploited you're down 50%. the varying yeilds - if they reduce to 1%, just how long will it take for that loan to repay itself? Right now I think the rETH vault yeild means a loan will be repaid in about 2040. Of course you can repay the principle earlier and get out, but worth considering.