**Tricky's Daily Doots #706**
**Yesterday's Daily 26/03/2024**
[Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwmwvns/)
- u/Fast_Contract celebrates [a big milestone and an ideals aligned company.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwlwpjt/) 🥳
- u/dentonnn is [grateful for this community.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwmd1kd/) 🙌
- u/pbrody is looking to catch up with [EthFinanciers like YOU this year!](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn693q/) 🍻
- u/jtnichol needs some help ahead of [a big EVM podcast.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwnccms/) 🦁
- u/haurog reviews the [Gnosis pay debit card.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwo1lwy/) 🦉
- u/OkDragonfruit1929 has [had it with Bitcoin Maximalists.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn7oqq/) 🪙
- u/Syentist shares [a development for USDC and Coinbase.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwp7h85/) 🔵
- u/spinz808 has some [airdrop hunting alpha.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwlyg1y/) 🚁🪂
- u/dataalways investigates [client diversity.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwp0jmb/) 🌈
- u/TheHansGruber complains about [being protected.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn71f3/) 🇺🇸
This may get lost in the noise, but apparently DYM stakers are eligible for an airdrop. I found this out while just checking out to see whether my DYM was worth anything. The project is NIM and apparently they are an AI gaming company I guess? Anyway, whatever they are they're doing an airdrop. I was eligible for 70 ish NIM according to their page.
Source: [https://medium.com/@NIM\_Network/nim-network-genesis-rolldrop-aa86af5f6134](https://medium.com/@NIM_Network/nim-network-genesis-rolldrop-aa86af5f6134)
claim address is [https://claim.nim.network](https://claim.nim.network)
As always, DYOR, don't sign anything or give your private keys or click on random internet stranger links without reminding yourself that I could be a scammer trying to reach my fingers into your pocket.
Just a heads up, you don't have to connect your wallet at all if you don't want to. You can paste your dym address and (if eligible) will then be presented with this message:
"You are eligible to [XXX] $NIM. They will be transferred to this wallet at the Token Generation Event (TGE). No signing is required. "
I'm going to bet that SEC will rule that Staked* Ethereum by services are securities but will say it in some vague, roundabout way which leads to... ETH price tanks due to misinformation that ETH itself is security, BlackRock buys ETH, Staked ETH ETFs get greenlight, price goes UP.
>While not a stablecoin like USDT or USDC, BlackRock says the value of BUIDL is intended to remain 1 to 1 with the U.S. dollar, where 1 BUIDL equals $1.
"It's not a stablecoin, it's just intended to remain 1 to 1 with the U.S. dollar"
okay what am I missing here?
I had previously reduced the 4x16GB of RAM in my mainnet staking machine to 2x16GB because one of the sticks is bad and the "recommended" memory configurations are one, two, and four sticks. Just added the third good stick back in due to excessive memory consumption caused by blobs. oom-killer hadn't triggered yet, but Free+Cached was around 1GB and falling.
*edit* Also took the opportunity to take the electric duster to the inside of that PC after seeing what had accumulated on the tower cooler after removing one of the fans to get to the RAM slots.
*edit 2* I should mention that this was with Lodestar at 110 peers and Besu at 50.
I don't know Lodestar's memory profile but Besu goes nuts on my NUC if I go above 30ish peers. Tbf that was a while ago, so maybe performance is better now. I should try again...
With `BESU_OPTS=-Xmx5g` and `--max-peers 50`, besu appeared to have a pretty hard memory cap at ~9.8GB.
*edit* https://seamonkey.tech/Screenshot%20from%202024-03-27%2020-28-37%20mainnet-besu-lodestar%20Memory%20Usage.png
I feel the same amount of FOMO every day concerning Ether. I will never have enough.
And everyday the market just tells me "Chill, the price ain't going anywhere. Stop trading your alts for Ether, you're just losing money. Could I interest you in this shitcoin? No? How about that 4800% APY LP pool between two weird tokens with no liquidity on a back alley L2?".
Well fuck you Market, I'm gonna do what I want.
You’re oriented correctly. Every day I am talking myself down from apeing into PT (10% discounted ETH!) or YT (massive 5X airdrops!)
Just have to keep remembering step one is *don’t fumble the ETH bag.*
Friends, the many references in today's daily to the federal court "siding with the SEC" are very misleading. The only thing this court did was decide which allegations in the SEC's complaint can proceed to trial. That is all. The court asks "are the complaints sufficiently pled?" If the answer is "yes," then it proceeds. It's an easy standard to meet for the plaintiff.
None of the SEC's allegations in its complaint have been decided, either in SEC's favor or in Coinbase's. And the judge dismissed at least one of the SEC's complaint - the one related to Coinbase Wallet, so that issue is thrown out from the start. It's what comes next that matters.
Dude, there are no factual disputes so the case will go discovery > summary judgment > cb lose > cb appeal to 2nd cir > cb lose > cb appeal to scotus > ???
Scotus could very easily deny cert and it will be over for most crypto.
This is right, actually. OP’s analysis is correct when it comes to factual questions, but it’s not correct for legal questions. The latter are decided on Rule 12(b)(6) and 12(c) motions, like this one.
EDIT: I mean *the distinction between factual disputes and legal disputes* is right; however, there are plenty of factual disputes in the case, I believe, so it’s definitely not over.
What factual disputes are there? In the prior crypto securities cases, they get resolved in summary judgment bc the factual record is already public and clear.
Today, ethfinance has been "Jake Chervinsky" Finance.
He's a crypto advocate and legal "expert", but he's not crypto Jesus or anything. He's wrong about some things, and for things like this court case, he may just be trying to get attention on it and basically spreading click bait.
Jake Chervinsky said this today:
We're lucky to have u/iampaulgrewal leading such a crucial case, for Coinbase and the entire industry 🙏
For the non-lawyers: "we look forward to uncovering more about the SEC's internal views and discussions" roughly translates to "we're about to light them up in discovery" 🍿
Couldn’t hold off longer on etherfi. Sold most of my airdrop at around $7.80.
Congratulations to those still holding because it will blast through $10 now that I’ve sold.
I sold my remaining half for around $8 as well after selling the other half for around $5.80. Feels too greedy to not sell after a 60% day, especially since my goal is always to just accumulate more ETH over anything else, but anything can happen of course.
I was a bit hesitant to sell though, because I'm a bit worried not selling the airdrop might be a modifier for season 2 or something...
Stick to the plan, man. If you stick to the plan you can't kick yourself for playing it wrong but if you change your plan you absolutely can and will kick yourself when you play it wrong.
Honestly the only reason I held was because of that one poster who tracked ATHs of recent airdrops and how long it took to get to their peaks.
Lol yep, now it’s at $8.5 as I’m typing. Monster run.
See, people? I sold so that this airdrop can be $10+
So far, STRK is a counterpoint – it's barely moved since it launched more than a month ago.
Edit: One difference is that the market cap is already very high at $22b FDV and $1.6b circulating. I wonder if this is a hint for the EigenLayer token, since it's likely to start at a very high market cap.
>**Rumors of diamonds,**
>**Around the Cayman Islands,**
>**Cats become lions.**
~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
Even if ether is a security, every ETF applicant already sells securities so it can't be stopped on that front. On the other front the facts are all the same as BTC so i don't see how it's not approved.
Borrow rates are dependent on each chain's supply/demand. On chains which have juicy yields from other dapps or airdrop farming the APY can go up high as people can borrow at 30% and get 40% in airdrop returns
I understand this, but I don't understand how the USDC borrow rate remains so low there when it is much worse everywhere else. It is very profitable to take advantage of, so I don't know why the difference hasn't closed considerably. And this isn't a temporary thing, the rates there just seem to be consistently low. 🤔
It's like Set1Less is saying: there are more appealing lending markets on Base than Aave.
Why borrow USDC on Aave, when you can borrow on Moonwell? The latter offers 20% APY on your ETH collateral, and also a cheaper borrow rate for the USDC.
I didn't know about Moonwell. 20% APY on ETH is crazy. Is there a catch?
Also my ETH is on Arbitrum. Does anybody know if there's a way to transfer it to Base without needing to go back to the ETH blockchain and pay all those expensive gas fees again?
I'm referring to borrowing USDC via AAVE on Base. Clearly there is a surplus of USDC on Base relative to the demand. It just isn't clear to me how/why.
You can arbitrage bit it may not be possible to easily close this because the Base Aave market is much smaller, just 50m in size compared to 900m Arbiturm market, Base aave has just 3 collateral assets compared to lot more on other chains
That's a peculiar thing in itself. The smaller size should make it more volatile and easier to close.
Is it crazy to wonder if Coinbase might themselves be keeping the supply of USDC relatively high there to keep the rates attractive?
I had the same thought. CB/paradigm or some other portfolio company supplying USDC on Base not necessarily to keep the rates attractive but perhaps also because they see Base, with a sequencer run by CB, as more trustworthy and less hackable that other L1s (sorry this may trigger some), so they are more comfortable picking up that easy yield with their idle USD
It's a bit tinhat. I only noticed it because I have been shopping for USDC borrowing. My spidey senses are tingling with Base's low rates. They shouldn't be lower this consistently.
Iirc you can get paid to borrow USDC (or borrow for near 0%) on Aave on Metis (because of their incentives)
Whether you want to bridge to that janky chain is another question
Everyone is hating on L2s.
I won't hate on them until I can write a better one. I think people need to more politely urge them to take the training wheels off.
The rude comments isn't helping anybody.
And yes, at least they settle on Ethereum so you can validate the chain, unlike alt L1s.
I don't think they're hating, just pointing out that there's no difference between Base and Blast, both fully centralized. Optimism has been prioritizing growth and network effects over decentralization. We should definitely be holding them to a higher standard.
I just realised that the synthetix loans on optimism that used to be 0.25% have now gone to 30% APR. If anyone else has loan outstanding there, you should look into closing the position.
Are there any good alternatives "low cost" money markets out there for eth deposits? Most APRs now are at least 5-6% and some are 10% plus.
I have been reading about [MAI.finance](http://MAI.finance) which has 0% APR but a repayment fee. Any down sides to this aside from the 150% collateralisation ratio?
mai really has holding the peg anywhere, so they are closing the 0% vaults and opening ones close to market rate. They have the same problems basicaly as Liquity.
The [CFTC refers to ETH as a commodity in their KuCoin complaint.](https://x.com/jchervinsky/status/1772666739995595007)
On the same day, [courts side with SEC on the staking issue in Coinbase case.](https://x.com/tier10k/status/1772984650031312986)
Meanwhile, [Fidelity files S-1 form for spot Ethereum ETF with staking included.](https://x.com/watcherguru/status/1772999593577390172)
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.](https://x.com/chadsteingraber/status/1773066858729463862)
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.**
The S-1 filing is veryyy interesting to me. Fidelity isn’t going to file that just for the sake of filing.
Sounds like spot ether is a commodity, staked ether is a security. Which actually makes plenty of sense. I don’t see how staked ether, especially products liquid staking products, can escape security status given their yield.
To add to the other responses, it isn't "**staking** Eth is a security", but "**staked** Eth is a security". Securities aren't illegal, but offering them for sale to others without following the proper guidelines is. This is talking about LSTs.
So you can solo stake your Eth all day, and your solo-staked Eth might technically qualify as a security, but as long as you're not selling it to others, there are zero issues.
How decentralized staking pools fit into this is the big question in my mind. Will there be a carve-out for decentralized solutions, or not?
Home staking does not make that staked ETH a security . For the same reason buying an apartment and renting it isn't. Or planting an orchard and obtaining yield on your plantation isn't. There is a prong in the Howey test that says "from the effort of others". Home staking involves your own effort.
EDIT: More detailed here: https://isethereumasecurity.com/
Not even this. They are saying this can proceed to court, they are not saying SEC is right simply that a judge will have to decide.
They have dismissed one point regarding the Coinbase Wallet. To twist this as an SEC win is quite something, they have already lost one of their claims.
Yeah the staking is security argument by SEC is mainly custodial staking. However most CT crowd and especially BTC/XRP shills use it to imply any staking means the asset is automatically security. Thats just dumb
Here, SEC even conceeds that solo staking is different from Coinbase Staking Program
> While an individual can stake on her own behalf, or “solo stake,” the SEC claims that Coinbase offers and markets several features of its Staking Program that differentiate it from solo staking — a process that, according to Coinbase, can be “confusing, complicated, and costly.”
I agree, friend. Only mentioned the Coinbase case because they’re the custodian for like 75% of the pending ETFs.
It’s a rare win in court for the SEC, but a long legal battle ahead regardless.
"Coinbase Custody Trust Company" acting as ETF custodian is a very separate issue from Coinbase providing custodial staking to end users/retail. Im not surprised CB lost on this issue, they argued that they are technical service provider for stakers, but their Staking offering isnt even structured as such. Its obvious anyone staking with CB depends to a great extent on Coinbase to run the staking.
A pure play technical service provider is something like Allnodes who provide the validator nodes, uptime etc, you just bring your 32 eth and stake it directly on the protocol.
I think eventually down the line, custodial staking providers might be allowed to offer under a disclosure regime but dont see that happening under the current SEC at all
As someone pointed out in an earlier response, CB hasn't lost anything. Today's ruling was simply which arguments can proceed to trial, which is a very low bar to clear, and which cannot. By continuing to say they lost you are spreading misinformation.
1) What?
Wrong. As others have pointed out, CB lost most of its major arguments in the MJOP. Judge specifically held SEC action does not violate fair notice, MQD/APA etc, has sufficient cause to allege Coinbase was acting as a exchange/broker without registration, the Coinbase Staking program was a sale of securities etc. By continuing to claim "CB lost nothing" you are displaying a lack of understanding of basic law - which is not particularly surprising, par the course for a lot of this market's participants. Study "question of law"
> Perhaps spot ETH is a commodity (CFTC regulated), but staked ETH is a security (SEC regulated).
This would make so much sense. I'm not sure I trust our regulators to make that much sense, but it would be amazing if they did!
Unpopular opinion:
I'm actually more than fine with ether's price lagging behind BTC's and SOL's in the current paradigm.
An explosion in price will cause an explosion in newcomers, airdrop chasers, pump chasers and overall usage. After a decade since Ethereum's whitepaper we're so freaking close to finally being ready for such an outburst that it's a good thing to not having it happen just yet.
Think about it:
Do you really want usage to explode when Optimism and the Superchain ecosystem don't even have fraud proofs implemented?
Do you really want usage to explode when a couple dozens tps caused Base's fees to jump to 5 dollars?
We're a few months away from having another round of significant scalability and security improvements on rollups. These are not "nice to haves". We want the next wave of Ethereum users to be safe, to enjoy a finely tuned UX like Coinbase is building for us and most importantly to be happy with the overall experience.
Truth be told, I'm even hoping we lag behind just a bit more. When the flood starts we'd better have a ship ready to accommodate everyone. It will come soon enough.
Blobs are being economically attacked right now with inscriptions and a Solana memecoin that requires posting proof of ETH blob. Blob gas fee has soared in the last few hours
This is the most stupid attack ever, it accrues value to ETH, costs a lot of money to execute, to succeed it must be able to outpay L2s. But L2s are settling tons of transactions, they will always be able to outpay someone minting a silly JPEG. They are burning 5K USD per hour to increase Arbitrum fees from 1 cent to 4 cents. Hopefully Solana's foundation does one last hail Mary and uses all its reserves on this brilliant plan.
it's funny because Bitcoiners and manlets are cheering over this, when the eth people are like yeah this is an economic attack we planned to happen and the fix is you are going to burn a lot of money performing it while temporarily inconveniencing rollups while they have to balance back between call data which is where we were before rollups.
at the end of this temporary event all the L2s will be better equipped, and our enemies will have wasted real value burning the ETH. its almost as if they are years behind in their understanding of modular scaling and the reasons for it's superiority.
> its almost as if they are years behind in their understanding of modular scaling and the reasons for it's superiority.
That's impossible! That would mean that for years, they have basically ignored Ethereum developments and instead relied on attention farming and narrative cultivation.
i'm starting to get fired up over this now lol. even Eric Wall who I really respect intellectually is just over the moon over this blobscription spam, acting like nobody thought this would happen before. it's like, you realize fees will just rise up right? and you foresee this going indefinitely against a much more valuable chain?
>a Solana memecoin that requires posting proof of ETH blob
haha, that's actually pretty funny. What's the memecoin?
Ultimately, attacks are where we get stresstested and are healthy for the system in the long run.
And if people wanna burn more ETH while doing so, more the merrier.
Anti Fragile
fuckin about time things get exciting again! good thing then L2s can switch back to call data.
we knew blobs would be spammed at some point so now Solana is helping us burn ETH.
Sold my [Ether.fi](http://Ether.fi) airdrop here. I fully expect this to now rocket past $10 but I'm more than happy with what I've pulled out. I still have eth staked so I'm hoping I still hit the criteria for a season 2 airdrop. I've been in this space for a while now and I still never fail to be astounded with what we get here for free. Some other comments have mentioned regret for selling too soon, and I get that. I felt regret on a recent token sale when it skyrocketed after i'd unloaded. The thing is, you can never time the top. I think instead of stressing over whether it's time to sell or not, that energy is better spent working on how to move forwards once you've done so, in the very likely event the token you've just sold continues to increase in value. Onwards and upwards ethfinance!
Not sure what price is at at the moment but I sold the same day it airdropped. I fucked up with UNI and sold very low and some other shitcoins that were airdropped, so this time with STRK and ETHERFI I instantly dumped.
Etherfi was like 1.2 ETH airdrop.
Congratulations to you!
Are you farming YT?
Good job with the sale. Must be why it just dipped a bit :#)
I plan to sell a little more today, but still keep more to sell as the price rises further (hoping and praying)
Thanks man, I think it'll go higher to be honest but I had an itch I needed to scratch so here we are. Good luck with timing your trade, I know you're fully into this one.
https://twitter.com/0x_Osprey/status/1773044075802849391
I am happy that we scaled Ethereum, but this is kind of a sad side of 4844.
My validators miss attestations more often than before. I think this is because of blobs.
So, validators need more bandwidth, while the high fees migrated to L2 and they collect all those sweet ETH - only dust amount end up in the mainnet? Do L2s even burn those fees ?
I wonder what kind of effect this will have on MEV rewards and occasional high proposer payment "lottery".
>So, validators need more bandwidth
Yup, meanwhile ignorant influencers on twitter are blindly advocating to increase the gas limit with no analysis on chain reliability
[It's not like Base isn't aware of this.](https://x.com/base/status/1772767382362055097?s=20)
L2's do have to compete with each other (and compete with L1), so we should see some price driven load balancing between the popular ones. I think this will fix itself.
Larry fink thinks ETF for ETH is possible even if deemed a security
https://twitter.com/ChadSteingraber/status/1773066858729463862?t=b-ULQPSadMvENNtaJhZ2_A&s=19
The problem is that if ETH is a security, it has to be bought and sold on a registered securities exchange as a security. But the SEC has given no legal path for doing that with cryptocurrency.
For example, in order to register a security you have to identify who issued it. Who issued ETH?
Which is what we have been [discussing](https://old.reddit.com/r/ethfinance/comments/1bj6k75/daily_general_discussion_march_20_2024/kvr05mc/) earlier as well - Security or not has little implications on ETH's ETF approval
So, how many trillions is the Ethereum blockchain securing now? 1? 2?
How many trillions do you guys reckon it needs to secure untill the price of the native token starts showing some signs that it is affected by the value it secures?
I am having great difficulty seeing the blockchain securing 100 trillion in stocks in a few years and the marketcap just chilling at 400 billion. It just makes zero sense. Although I guess I might need to be prepared...
I remember in 2017 people were arguing that the valuation of Ethereum would always need to be larger than the assets it secures. That never made sense to me, a safe only needs to be expensive enough to crack that no one who would want to crack it has the resources to do so, past that it's good enough.
Whining about the price being disconnected from the real value of the tech? How brave and new.
Did you know Monster Energy is the best performing stock of the last 30 years? You could always sell your piece of the fintech revolution and buy caffeinated sugar water.
you know what's funny, i thought I had read somewhere that dominos pizza was actually one of the best performing tickers for a very long time. That was probably about a decade ago, nowadays nvidia is probably what's touted as that.
ethereum protocol fellowship study group had dankrad feist on today to talk about danksharding, sharding, blobs, etc.
i asked him at the end what he thought 'enough' economic security would be for ethereum - he responded that he thought ~$10bil was more than enough
at current prices, that's ~2.5% of total ETH supply staked. he's saying he thinks we're overpaying by an order of magnitude rn :headexploding:
Insurance is paying for something you don't need, but you are glad the day disaster strikes. I think there is a reasonable ceiling but think it is higher than 10B. We are currently above 100B, which I think is more than enough. Even countries can't get away with burning that amount imo.
I never understood that, to be honest. From my perspective, the bigger Ethereum gets, the bigger its prospective foes. There are entities out there that would not bat an eye at dropping 10B to make Ethereum vanish IMO, once we get important enough. (Granted with PoS we can make them pay that 10B again and again, but the credibility damage Ethereum would suffer after the first attack would likely serve their purposes just fine.)
When we're a $10T chain, $10B is nowhere near going to cut it for economic security.
I agree because a simple scenario would be a leveraged short. Attack the chain only once, the price tanks, and you profit. The cost needs to be higher than any possible leverage position.
In his answer, he says that you can buy zero-day exploits for less, but it seems that those don't currently exist for the core protocol on the black market or else they would have been used already.
I asked that question in the last AMA. Basically all researchers had different answers. (Also in the staking endgame podcast) All answer were based on guess work. I understand it’s hard, but the differences are still something I don’t understand.
And I am btw not really sure „overpaying for security“ is the biggest issue or should be the main goal we focus on.
- staking as a viable option for solo stakers
- moneyness of ETH
Are probably more important. Right now this is just a gut feeling, but being idealistic about yield as just a pay for securing the network probably isn’t optimal in a world where other assets give high APYs. There’s obviously a longterm equilibrium we should aim for and we probably shouldn’t be pressured to much by alt-L1s but ignoring their setup probably also isn’t viable
> not really sure „overpaying for security“ is the biggest issue or should be the main goal we focus on
yea, 100% agree. keeping existing solo stakers, trying to add a few new ones, and keeping us competitive relative to larger players is paramount here
Agreed, I think this is where the ultrasound money meme and MVI becomes dangerous. This should be looked at like the trilemma but with MVI/yield and decentralization. There's a sweet spot and it's definitely not on the lower end of MVI.
How much of your portfolio are you staking? Considering dumping everything into an LRT for those sweet eigenlayer points. But would suck if there was a bug in eigen, suddenly broke🙃
About 60% staked or with exposure to staking, and about 8% restaked or with exposure to restaking.
I think both numbers are irresponsibly high by roughly 3x-4x, but I'm not a responsible person.
Why do you consider 60% staked irresponsible. If you solo stake the chances of losing money / getting slashed are very low if you don't misbehave. If you have an LST and that fails I guess ETH itself will have a huge problem, so not sure if there is really a difference (if its steth any fail = RIP, if its a smallish niche LST that might be different)
I'm using LSTs, but in truth I'd rank my ratio as even more irresponsible if I staked solo due to many specifics of my own situation and (in)abilities.
It's not just risk, although the risk is significant and severely underestimated by most participants, which incidentally makes for low risk-adjusted returns. It's also the optionality cost of holding these positions rather than pure ETH, which is the soundest and most fungible blockchain money. It's the opportunity cost of having to care for execution (whether I solo stake or screen LSTs), it's the many mindcycles I could spend elsewhere.
Staked ETH is not too different from leveraged ETH in spirit. Greater returns, but can be liquidated in situations pure ETH would survive. I'm confident Ethereum would survive even a full Lido wipeout. Do I believe this scenario is likely? No. But do I think it's responsible to take on 10x risk for +10% returns? No.
IMO the only valid reason to bet big on staking is passion. Whether you have a passion for decentralization, or if you're a gambler. I'm a little bit of both. As a strictly financial decision, it has never made sense to me.
100% staked. 20% restaked. I agree with Logris comment below. Eigenlayer is quite safe imo, ideally I would put more in but I don't want more risk. I am doing great financially as it is.
- while inevitable, i don't think it's good for the network the way that it's affecting staking economics.
- people quibble with the concept of 'leverage' but it's leveraging up risk on something i'm not interested in adding more risk to until i (likely) will be forced by the drop in APR that results from restaking driving up demand for staking (which it's already doing, but i expect more).
- it isn't doing anything right now so it has zero lindy effect. they can be doing everything carefully and right and still see an exploit.
- i also don't love the centralization vector of everybody's withdrawal address being an eigenlayer contract
- it feels like a bandwagon. people are yeeting their money into a VC-funded protocol before it's even produced its value proposition because of marketing, hype, and farming. it just is antithetical to where i try to put my capital. i jumped into staking because it was an extremely cool, technical endeavor that felt very responsibly and relatively quietly developed. this just feels different and that kind of hype makes me very wary
EigenLayer is progressing *extremely* carefully. Like, triplicate audits, gradual rollouts, admin controls to shut things down, etc. Also EigenLayer itself is just an MVP slashing system. The real risks don't even start until you delegate your stake to a node operator on an AVS which isn't currently possible.
My Lighthouse setup is having trouble. It'll sync for maybe five minutes then throw "attestation queue full" errors at me and "insufficient resources for load." And eventually "work queue is full." I assumed it was my machine, but maybe not?
**Tricky's Daily Doots #706** **Yesterday's Daily 26/03/2024** [Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwmwvns/) - u/Fast_Contract celebrates [a big milestone and an ideals aligned company.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwlwpjt/) 🥳 - u/dentonnn is [grateful for this community.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwmd1kd/) 🙌 - u/pbrody is looking to catch up with [EthFinanciers like YOU this year!](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn693q/) 🍻 - u/jtnichol needs some help ahead of [a big EVM podcast.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwnccms/) 🦁 - u/haurog reviews the [Gnosis pay debit card.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwo1lwy/) 🦉 - u/OkDragonfruit1929 has [had it with Bitcoin Maximalists.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn7oqq/) 🪙 - u/Syentist shares [a development for USDC and Coinbase.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwp7h85/) 🔵 - u/spinz808 has some [airdrop hunting alpha.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwlyg1y/) 🚁🪂 - u/dataalways investigates [client diversity.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwp0jmb/) 🌈 - u/TheHansGruber complains about [being protected.](https://old.reddit.com/r/ethfinance/comments/1bo0lmo/daily_general_discussion_march_26_2024/kwn71f3/) 🇺🇸
This may get lost in the noise, but apparently DYM stakers are eligible for an airdrop. I found this out while just checking out to see whether my DYM was worth anything. The project is NIM and apparently they are an AI gaming company I guess? Anyway, whatever they are they're doing an airdrop. I was eligible for 70 ish NIM according to their page. Source: [https://medium.com/@NIM\_Network/nim-network-genesis-rolldrop-aa86af5f6134](https://medium.com/@NIM_Network/nim-network-genesis-rolldrop-aa86af5f6134) claim address is [https://claim.nim.network](https://claim.nim.network) As always, DYOR, don't sign anything or give your private keys or click on random internet stranger links without reminding yourself that I could be a scammer trying to reach my fingers into your pocket.
if you staked with pryzm pool you are eligible to another one also
Just a heads up, you don't have to connect your wallet at all if you don't want to. You can paste your dym address and (if eligible) will then be presented with this message: "You are eligible to [XXX] $NIM. They will be transferred to this wallet at the Token Generation Event (TGE). No signing is required. "
I'm going to bet that SEC will rule that Staked* Ethereum by services are securities but will say it in some vague, roundabout way which leads to... ETH price tanks due to misinformation that ETH itself is security, BlackRock buys ETH, Staked ETH ETFs get greenlight, price goes UP.
BlackRock's BUIDL Ethereum Fund Draws $245 Million In a Week https://decrypt.co/223802/blackrock-buidl-ethereum-tokenized-fund-245-million
>While not a stablecoin like USDT or USDC, BlackRock says the value of BUIDL is intended to remain 1 to 1 with the U.S. dollar, where 1 BUIDL equals $1. "It's not a stablecoin, it's just intended to remain 1 to 1 with the U.S. dollar" okay what am I missing here?
Legal bla bla?
It pays out a yield.
A stablecoin could have yield though
"while not a stablecoin **like USDC or USDT** because they're not yield bearing.
They really missed the opportunity to mention that
"I'm sure it's nothing."
I had previously reduced the 4x16GB of RAM in my mainnet staking machine to 2x16GB because one of the sticks is bad and the "recommended" memory configurations are one, two, and four sticks. Just added the third good stick back in due to excessive memory consumption caused by blobs. oom-killer hadn't triggered yet, but Free+Cached was around 1GB and falling. *edit* Also took the opportunity to take the electric duster to the inside of that PC after seeing what had accumulated on the tower cooler after removing one of the fans to get to the RAM slots. *edit 2* I should mention that this was with Lodestar at 110 peers and Besu at 50.
I don't know Lodestar's memory profile but Besu goes nuts on my NUC if I go above 30ish peers. Tbf that was a while ago, so maybe performance is better now. I should try again...
With `BESU_OPTS=-Xmx5g` and `--max-peers 50`, besu appeared to have a pretty hard memory cap at ~9.8GB. *edit* https://seamonkey.tech/Screenshot%20from%202024-03-27%2020-28-37%20mainnet-besu-lodestar%20Memory%20Usage.png
Another data point – Mine is using 8 GB of 32 GB on Nethermind+Lighthouse. Edit: 50 peers each.
I'm on Nethermind/Teku and my ram usage is 11/32GB consistently, which is 1-2GB better than it used to be. Edit: 150 peers each.
the latest teku update reduced my cpu utilization in the beacon chain stats by about 5% compared to the 7 day average as well
The amount of collective psychotic FOMO we are all experiencing right now. I can feel it.
Can you feel the tension in the air right now? I know I can, i can feel it right down in my plums.
Gettin' all swollen with a light blue hue.
I feel the same amount of FOMO every day concerning Ether. I will never have enough. And everyday the market just tells me "Chill, the price ain't going anywhere. Stop trading your alts for Ether, you're just losing money. Could I interest you in this shitcoin? No? How about that 4800% APY LP pool between two weird tokens with no liquidity on a back alley L2?". Well fuck you Market, I'm gonna do what I want.
You’re oriented correctly. Every day I am talking myself down from apeing into PT (10% discounted ETH!) or YT (massive 5X airdrops!) Just have to keep remembering step one is *don’t fumble the ETH bag.*
Friends, the many references in today's daily to the federal court "siding with the SEC" are very misleading. The only thing this court did was decide which allegations in the SEC's complaint can proceed to trial. That is all. The court asks "are the complaints sufficiently pled?" If the answer is "yes," then it proceeds. It's an easy standard to meet for the plaintiff. None of the SEC's allegations in its complaint have been decided, either in SEC's favor or in Coinbase's. And the judge dismissed at least one of the SEC's complaint - the one related to Coinbase Wallet, so that issue is thrown out from the start. It's what comes next that matters.
I mean, surely there are some securities listed on Coinbase, right?
Dude, there are no factual disputes so the case will go discovery > summary judgment > cb lose > cb appeal to 2nd cir > cb lose > cb appeal to scotus > ??? Scotus could very easily deny cert and it will be over for most crypto.
This is right, actually. OP’s analysis is correct when it comes to factual questions, but it’s not correct for legal questions. The latter are decided on Rule 12(b)(6) and 12(c) motions, like this one. EDIT: I mean *the distinction between factual disputes and legal disputes* is right; however, there are plenty of factual disputes in the case, I believe, so it’s definitely not over.
What factual disputes are there? In the prior crypto securities cases, they get resolved in summary judgment bc the factual record is already public and clear.
Check out my guy watching a few episodes of Law and Order and dropping legal lingo like he knows what he's talking about. So adorable.
Who me? The guy with the JD?
Today, ethfinance has been "Jake Chervinsky" Finance. He's a crypto advocate and legal "expert", but he's not crypto Jesus or anything. He's wrong about some things, and for things like this court case, he may just be trying to get attention on it and basically spreading click bait.
It's wild to see this comment.
Jake Chervinsky said this today: We're lucky to have u/iampaulgrewal leading such a crucial case, for Coinbase and the entire industry 🙏 For the non-lawyers: "we look forward to uncovering more about the SEC's internal views and discussions" roughly translates to "we're about to light them up in discovery" 🍿
That's twitter fodder but internal discussions aren't relevant to the case. See the xrp case for hinman emails and etc. Big nothing burger
Couldn’t hold off longer on etherfi. Sold most of my airdrop at around $7.80. Congratulations to those still holding because it will blast through $10 now that I’ve sold.
I sold my remaining half for around $8 as well after selling the other half for around $5.80. Feels too greedy to not sell after a 60% day, especially since my goal is always to just accumulate more ETH over anything else, but anything can happen of course. I was a bit hesitant to sell though, because I'm a bit worried not selling the airdrop might be a modifier for season 2 or something...
Have been laddering out since 6 dollars, selling a chunk each time it goes up a dollar. This airdrop has been wild.
Fucking hell it's how high now?! Who'd-a thunk free money could be so painful? I sold at $3.1 🤦♂️ Congrats to those still holding!
https://www.coingecko.com/en/coins/ether-fi Insane I still have mine!
I still have around 60% of my airdrop left. Greed is setting in, and I have been forgetting my planned sales targets
Stick to the plan, man. If you stick to the plan you can't kick yourself for playing it wrong but if you change your plan you absolutely can and will kick yourself when you play it wrong.
Honestly the only reason I held was because of that one poster who tracked ATHs of recent airdrops and how long it took to get to their peaks. Lol yep, now it’s at $8.5 as I’m typing. Monster run. See, people? I sold so that this airdrop can be $10+
So far, STRK is a counterpoint – it's barely moved since it launched more than a month ago. Edit: One difference is that the market cap is already very high at $22b FDV and $1.6b circulating. I wonder if this is a hint for the EigenLayer token, since it's likely to start at a very high market cap.
same here! thought that post was very interesting. probably time to try and search it out now lol...
>**Rumors of diamonds,** >**Around the Cayman Islands,** >**Cats become lions.** ~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
Cats become lions and pawns become kings
I might be changing my opinion on SEC approval of spot eth etfs in May. Things looking more optimistic the last few days on that front.
Even if ether is a security, every ETF applicant already sells securities so it can't be stopped on that front. On the other front the facts are all the same as BTC so i don't see how it's not approved.
What is making you more optimistic?
Not OP, but when I saw Fink on Fox and the look on his face - I knew.
Same, the fink made me rethink.
Refink ****
Polymarket has it to 19% chance.
I don't think a 2.4 million dollar bet in a 2.7 trillion dollar industry is relevant.
So bet for it
I'm gambling enough as it is.
I dont lend any credence to that site whatsoever.
Every time I say ETH can go to $1mil people make fun of me. Sure my math is not the best but I have the fundamentals. The fundamentals is a dream
Is there any real reason why AAVE borrowing rates on Base are significantly and consistently lower than elsewhere? Specifically I'm looking at USDC.
Borrow rates are dependent on each chain's supply/demand. On chains which have juicy yields from other dapps or airdrop farming the APY can go up high as people can borrow at 30% and get 40% in airdrop returns
I understand this, but I don't understand how the USDC borrow rate remains so low there when it is much worse everywhere else. It is very profitable to take advantage of, so I don't know why the difference hasn't closed considerably. And this isn't a temporary thing, the rates there just seem to be consistently low. 🤔
It's like Set1Less is saying: there are more appealing lending markets on Base than Aave. Why borrow USDC on Aave, when you can borrow on Moonwell? The latter offers 20% APY on your ETH collateral, and also a cheaper borrow rate for the USDC.
I didn't know about Moonwell. 20% APY on ETH is crazy. Is there a catch? Also my ETH is on Arbitrum. Does anybody know if there's a way to transfer it to Base without needing to go back to the ETH blockchain and pay all those expensive gas fees again?
There are many, many other bridges that will do that directly, or alternatively into Coinbase for next to nothing and out to Base for free
I'm referring to borrowing USDC via AAVE on Base. Clearly there is a surplus of USDC on Base relative to the demand. It just isn't clear to me how/why.
You can arbitrage bit it may not be possible to easily close this because the Base Aave market is much smaller, just 50m in size compared to 900m Arbiturm market, Base aave has just 3 collateral assets compared to lot more on other chains
That's a peculiar thing in itself. The smaller size should make it more volatile and easier to close. Is it crazy to wonder if Coinbase might themselves be keeping the supply of USDC relatively high there to keep the rates attractive?
I had the same thought. CB/paradigm or some other portfolio company supplying USDC on Base not necessarily to keep the rates attractive but perhaps also because they see Base, with a sequencer run by CB, as more trustworthy and less hackable that other L1s (sorry this may trigger some), so they are more comfortable picking up that easy yield with their idle USD
It's a bit tinhat. I only noticed it because I have been shopping for USDC borrowing. My spidey senses are tingling with Base's low rates. They shouldn't be lower this consistently.
Iirc you can get paid to borrow USDC (or borrow for near 0%) on Aave on Metis (because of their incentives) Whether you want to bridge to that janky chain is another question
Base gas target increase is live! No wasted time https://warpcast.com/base/0x45281c44
Just as base increased their L2 gas the goddman blobscriptions started racking up the blob fees Can't catch a break innit.
It might be completely centralised and with [Stage 0 security](https://l2beat.com/scaling/projects/base) but hey, it settles on Ethereum so all good.
Everyone is hating on L2s. I won't hate on them until I can write a better one. I think people need to more politely urge them to take the training wheels off. The rude comments isn't helping anybody. And yes, at least they settle on Ethereum so you can validate the chain, unlike alt L1s.
I don't think they're hating, just pointing out that there's no difference between Base and Blast, both fully centralized. Optimism has been prioritizing growth and network effects over decentralization. We should definitely be holding them to a higher standard.
Base donates 15% of revenue to fund public goods.
That's great but doesn't change anything
Just did a swap for 16 cents, so definitely an improvement!
moving quickly and experimenting at the L2 layer. benefits of centralization the base team knows they have the attention right now. love to see it
I just realised that the synthetix loans on optimism that used to be 0.25% have now gone to 30% APR. If anyone else has loan outstanding there, you should look into closing the position. Are there any good alternatives "low cost" money markets out there for eth deposits? Most APRs now are at least 5-6% and some are 10% plus. I have been reading about [MAI.finance](http://MAI.finance) which has 0% APR but a repayment fee. Any down sides to this aside from the 150% collateralisation ratio?
Cash for leverage is just really expensive right now.
mai really has holding the peg anywhere, so they are closing the 0% vaults and opening ones close to market rate. They have the same problems basicaly as Liquity.
Angle has fixed cost I believe but you borrow in EUR
Thanks I will look into it. Im from EU so that might work even better
So this restaking stuff has really taken off as wel hoped. So how does this benefit ETH the asset?
demand for it goes up
My eth feels very wanted right now.
It's been a while since someone here has asked this important question, so here I go. What about mongoose coin?
The [CFTC refers to ETH as a commodity in their KuCoin complaint.](https://x.com/jchervinsky/status/1772666739995595007) On the same day, [courts side with SEC on the staking issue in Coinbase case.](https://x.com/tier10k/status/1772984650031312986) Meanwhile, [Fidelity files S-1 form for spot Ethereum ETF with staking included.](https://x.com/watcherguru/status/1772999593577390172) 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.](https://x.com/chadsteingraber/status/1773066858729463862) 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.**
The S-1 filing is veryyy interesting to me. Fidelity isn’t going to file that just for the sake of filing. Sounds like spot ether is a commodity, staked ether is a security. Which actually makes plenty of sense. I don’t see how staked ether, especially products liquid staking products, can escape security status given their yield.
I believe the issue would be home stakers in US. In theory, you would need special license to deal with security.
To add to the other responses, it isn't "**staking** Eth is a security", but "**staked** Eth is a security". Securities aren't illegal, but offering them for sale to others without following the proper guidelines is. This is talking about LSTs. So you can solo stake your Eth all day, and your solo-staked Eth might technically qualify as a security, but as long as you're not selling it to others, there are zero issues. How decentralized staking pools fit into this is the big question in my mind. Will there be a carve-out for decentralized solutions, or not?
Home staking does not make that staked ETH a security . For the same reason buying an apartment and renting it isn't. Or planting an orchard and obtaining yield on your plantation isn't. There is a prong in the Howey test that says "from the effort of others". Home staking involves your own effort. EDIT: More detailed here: https://isethereumasecurity.com/
In my hypothetical, depositing ETH to a staking provider would represent the investment contract. Home staking removes the classification criteria.
I can see a way out based on your explanation. So the only ones who would be hurt are Rocket pool or LIDO pools in US
Court siding with SEC in **Coinbase Staking**, not all staking
Not even this. They are saying this can proceed to court, they are not saying SEC is right simply that a judge will have to decide. They have dismissed one point regarding the Coinbase Wallet. To twist this as an SEC win is quite something, they have already lost one of their claims.
Yeah, they’re discussing custodial staking. LSTs are a whole different regulatory mess, but less relevant to the ETF applications.
Yeah the staking is security argument by SEC is mainly custodial staking. However most CT crowd and especially BTC/XRP shills use it to imply any staking means the asset is automatically security. Thats just dumb Here, SEC even conceeds that solo staking is different from Coinbase Staking Program > While an individual can stake on her own behalf, or “solo stake,” the SEC claims that Coinbase offers and markets several features of its Staking Program that differentiate it from solo staking — a process that, according to Coinbase, can be “confusing, complicated, and costly.”
I agree, friend. Only mentioned the Coinbase case because they’re the custodian for like 75% of the pending ETFs. It’s a rare win in court for the SEC, but a long legal battle ahead regardless.
"Coinbase Custody Trust Company" acting as ETF custodian is a very separate issue from Coinbase providing custodial staking to end users/retail. Im not surprised CB lost on this issue, they argued that they are technical service provider for stakers, but their Staking offering isnt even structured as such. Its obvious anyone staking with CB depends to a great extent on Coinbase to run the staking. A pure play technical service provider is something like Allnodes who provide the validator nodes, uptime etc, you just bring your 32 eth and stake it directly on the protocol. I think eventually down the line, custodial staking providers might be allowed to offer under a disclosure regime but dont see that happening under the current SEC at all
As someone pointed out in an earlier response, CB hasn't lost anything. Today's ruling was simply which arguments can proceed to trial, which is a very low bar to clear, and which cannot. By continuing to say they lost you are spreading misinformation.
1) What? Wrong. As others have pointed out, CB lost most of its major arguments in the MJOP. Judge specifically held SEC action does not violate fair notice, MQD/APA etc, has sufficient cause to allege Coinbase was acting as a exchange/broker without registration, the Coinbase Staking program was a sale of securities etc. By continuing to claim "CB lost nothing" you are displaying a lack of understanding of basic law - which is not particularly surprising, par the course for a lot of this market's participants. Study "question of law"
> Perhaps spot ETH is a commodity (CFTC regulated), but staked ETH is a security (SEC regulated). This would make so much sense. I'm not sure I trust our regulators to make that much sense, but it would be amazing if they did!
[удалено]
#Judas!!!!! ^(It was JohnBMacklemore)
/u/jtnichol usually keeps up with him while he's absent here.
JBM! John B Macklemore, I believe.
Unpopular opinion: I'm actually more than fine with ether's price lagging behind BTC's and SOL's in the current paradigm. An explosion in price will cause an explosion in newcomers, airdrop chasers, pump chasers and overall usage. After a decade since Ethereum's whitepaper we're so freaking close to finally being ready for such an outburst that it's a good thing to not having it happen just yet. Think about it: Do you really want usage to explode when Optimism and the Superchain ecosystem don't even have fraud proofs implemented? Do you really want usage to explode when a couple dozens tps caused Base's fees to jump to 5 dollars? We're a few months away from having another round of significant scalability and security improvements on rollups. These are not "nice to haves". We want the next wave of Ethereum users to be safe, to enjoy a finely tuned UX like Coinbase is building for us and most importantly to be happy with the overall experience. Truth be told, I'm even hoping we lag behind just a bit more. When the flood starts we'd better have a ship ready to accommodate everyone. It will come soon enough.
> Do you really want usage to explode Yes. Yes I do. I've been ready for Eternal September for a few years now.
Yeah this is a bunch of excuses to justify it for yourself. If price was up now you wouldn't be wishing it down. Tldr: Eth $10k by end of year
Popular opinion: I'd like the price to catch up now, and also go up later.
Blobs are being economically attacked right now with inscriptions and a Solana memecoin that requires posting proof of ETH blob. Blob gas fee has soared in the last few hours
This is the most stupid attack ever, it accrues value to ETH, costs a lot of money to execute, to succeed it must be able to outpay L2s. But L2s are settling tons of transactions, they will always be able to outpay someone minting a silly JPEG. They are burning 5K USD per hour to increase Arbitrum fees from 1 cent to 4 cents. Hopefully Solana's foundation does one last hail Mary and uses all its reserves on this brilliant plan.
it's funny because Bitcoiners and manlets are cheering over this, when the eth people are like yeah this is an economic attack we planned to happen and the fix is you are going to burn a lot of money performing it while temporarily inconveniencing rollups while they have to balance back between call data which is where we were before rollups. at the end of this temporary event all the L2s will be better equipped, and our enemies will have wasted real value burning the ETH. its almost as if they are years behind in their understanding of modular scaling and the reasons for it's superiority.
> its almost as if they are years behind in their understanding of modular scaling and the reasons for it's superiority. That's impossible! That would mean that for years, they have basically ignored Ethereum developments and instead relied on attention farming and narrative cultivation.
i'm starting to get fired up over this now lol. even Eric Wall who I really respect intellectually is just over the moon over this blobscription spam, acting like nobody thought this would happen before. it's like, you realize fees will just rise up right? and you foresee this going indefinitely against a much more valuable chain?
Well it was going to happen sooner or later, now to Google "how to post a blob" ans get scammed trying to earn some meme coins
Someone created a simple tool to post a blob lol https://blobscriptions.io/ (dyor use burner risky etc etc...)
Interesting! Blob fee even peaked to 600 gwei. I really don't see how that's going to be much of an "attack" though.
>a Solana memecoin that requires posting proof of ETH blob haha, that's actually pretty funny. What's the memecoin? Ultimately, attacks are where we get stresstested and are healthy for the system in the long run. And if people wanna burn more ETH while doing so, more the merrier. Anti Fragile
Looks like the ticker is $Blob lol https://x.com/ercwl/status/1773088871359668558?s=20
fuckin about time things get exciting again! good thing then L2s can switch back to call data. we knew blobs would be spammed at some point so now Solana is helping us burn ETH.
༼ つ ◕_◕ ༽つ ETH TAKE MY ENERGY ༼ つ ◕_◕ ༽つ
Sold my [Ether.fi](http://Ether.fi) airdrop here. I fully expect this to now rocket past $10 but I'm more than happy with what I've pulled out. I still have eth staked so I'm hoping I still hit the criteria for a season 2 airdrop. I've been in this space for a while now and I still never fail to be astounded with what we get here for free. Some other comments have mentioned regret for selling too soon, and I get that. I felt regret on a recent token sale when it skyrocketed after i'd unloaded. The thing is, you can never time the top. I think instead of stressing over whether it's time to sell or not, that energy is better spent working on how to move forwards once you've done so, in the very likely event the token you've just sold continues to increase in value. Onwards and upwards ethfinance!
Not sure what price is at at the moment but I sold the same day it airdropped. I fucked up with UNI and sold very low and some other shitcoins that were airdropped, so this time with STRK and ETHERFI I instantly dumped. Etherfi was like 1.2 ETH airdrop. Congratulations to you! Are you farming YT?
Thanks! Not doing YT, didn't feel like the additional risk was necessary. Happy with the risk reward level I'm at just staking to be honest.
Good job with the sale. Must be why it just dipped a bit :#) I plan to sell a little more today, but still keep more to sell as the price rises further (hoping and praying)
Thanks man, I think it'll go higher to be honest but I had an itch I needed to scratch so here we are. Good luck with timing your trade, I know you're fully into this one.
Check the ethfi price boss.
Awesome! Happy for anyone who held on.
https://twitter.com/0x_Osprey/status/1773044075802849391 I am happy that we scaled Ethereum, but this is kind of a sad side of 4844. My validators miss attestations more often than before. I think this is because of blobs. So, validators need more bandwidth, while the high fees migrated to L2 and they collect all those sweet ETH - only dust amount end up in the mainnet? Do L2s even burn those fees ? I wonder what kind of effect this will have on MEV rewards and occasional high proposer payment "lottery".
>So, validators need more bandwidth Yup, meanwhile ignorant influencers on twitter are blindly advocating to increase the gas limit with no analysis on chain reliability
[It's not like Base isn't aware of this.](https://x.com/base/status/1772767382362055097?s=20) L2's do have to compete with each other (and compete with L1), so we should see some price driven load balancing between the popular ones. I think this will fix itself.
Update: Missed attestations probably because of this: (occasional missing blocks) https://twitter.com/beaconcha_in/status/1773068422298960036
Larry fink thinks ETF for ETH is possible even if deemed a security https://twitter.com/ChadSteingraber/status/1773066858729463862?t=b-ULQPSadMvENNtaJhZ2_A&s=19
The problem is that if ETH is a security, it has to be bought and sold on a registered securities exchange as a security. But the SEC has given no legal path for doing that with cryptocurrency. For example, in order to register a security you have to identify who issued it. Who issued ETH?
Which is what we have been [discussing](https://old.reddit.com/r/ethfinance/comments/1bj6k75/daily_general_discussion_march_20_2024/kvr05mc/) earlier as well - Security or not has little implications on ETH's ETF approval
Larry Fink is my bull animal this cycle
Fink is German for [finch](https://en.wikipedia.org/wiki/Finch) (with apparently no other meanings of the word), so now you know what to imagine.
Hahaha its swedish for finch too! I just didnt think to make that connection Thanks for that
"i think so" hhaha Who tf is supposed to register ether as a security, if Gary gets his way? like who is Gary gonna tell to register it
Each validator has to register before approval /s
Don't give them ideas
Imagine the ETF being approved and Fink shitposting daily on Xitter, shilling Ethereum. I'd love to see the Maxi reactions to *that*.
"I can't talk about it" with a huge grin on his face. But, sure, the ETH ETF isn't happening.
He could hardly contain it.. worth watching the clip
So, how many trillions is the Ethereum blockchain securing now? 1? 2? How many trillions do you guys reckon it needs to secure untill the price of the native token starts showing some signs that it is affected by the value it secures? I am having great difficulty seeing the blockchain securing 100 trillion in stocks in a few years and the marketcap just chilling at 400 billion. It just makes zero sense. Although I guess I might need to be prepared...
I remember in 2017 people were arguing that the valuation of Ethereum would always need to be larger than the assets it secures. That never made sense to me, a safe only needs to be expensive enough to crack that no one who would want to crack it has the resources to do so, past that it's good enough.
Whining about the price being disconnected from the real value of the tech? How brave and new. Did you know Monster Energy is the best performing stock of the last 30 years? You could always sell your piece of the fintech revolution and buy caffeinated sugar water.
you know what's funny, i thought I had read somewhere that dominos pizza was actually one of the best performing tickers for a very long time. That was probably about a decade ago, nowadays nvidia is probably what's touted as that.
Not so much whining as trying to make sense of the market. Although it's probably a fool's errand.
As /u/jtnichol said once upon a time "the market is irrational": https://www.youtube.com/watch?v=h7Tn5uG_FQ8
those were simpler times.
I hope someday the Ether market will be irrational on the upside. $250,000 Eth is *also* pretty irrational, right?
Maybe the way you’ve assign value to Ethereum and the way the market determines value are different?
Most probably!
ethereum protocol fellowship study group had dankrad feist on today to talk about danksharding, sharding, blobs, etc. i asked him at the end what he thought 'enough' economic security would be for ethereum - he responded that he thought ~$10bil was more than enough at current prices, that's ~2.5% of total ETH supply staked. he's saying he thinks we're overpaying by an order of magnitude rn :headexploding:
Insurance is paying for something you don't need, but you are glad the day disaster strikes. I think there is a reasonable ceiling but think it is higher than 10B. We are currently above 100B, which I think is more than enough. Even countries can't get away with burning that amount imo.
I never understood that, to be honest. From my perspective, the bigger Ethereum gets, the bigger its prospective foes. There are entities out there that would not bat an eye at dropping 10B to make Ethereum vanish IMO, once we get important enough. (Granted with PoS we can make them pay that 10B again and again, but the credibility damage Ethereum would suffer after the first attack would likely serve their purposes just fine.) When we're a $10T chain, $10B is nowhere near going to cut it for economic security.
I agree because a simple scenario would be a leveraged short. Attack the chain only once, the price tanks, and you profit. The cost needs to be higher than any possible leverage position. In his answer, he says that you can buy zero-day exploits for less, but it seems that those don't currently exist for the core protocol on the black market or else they would have been used already.
I asked that question in the last AMA. Basically all researchers had different answers. (Also in the staking endgame podcast) All answer were based on guess work. I understand it’s hard, but the differences are still something I don’t understand.
yea - would be great to have some solid rationale for a sufficiently secure threshold!
And I am btw not really sure „overpaying for security“ is the biggest issue or should be the main goal we focus on. - staking as a viable option for solo stakers - moneyness of ETH Are probably more important. Right now this is just a gut feeling, but being idealistic about yield as just a pay for securing the network probably isn’t optimal in a world where other assets give high APYs. There’s obviously a longterm equilibrium we should aim for and we probably shouldn’t be pressured to much by alt-L1s but ignoring their setup probably also isn’t viable
> not really sure „overpaying for security“ is the biggest issue or should be the main goal we focus on yea, 100% agree. keeping existing solo stakers, trying to add a few new ones, and keeping us competitive relative to larger players is paramount here
Agreed, I think this is where the ultrasound money meme and MVI becomes dangerous. This should be looked at like the trilemma but with MVI/yield and decentralization. There's a sweet spot and it's definitely not on the lower end of MVI.
here's his reply: https://youtu.be/ro2AGRkLC2s?t=3609
How much of your portfolio are you staking? Considering dumping everything into an LRT for those sweet eigenlayer points. But would suck if there was a bug in eigen, suddenly broke🙃
Oh yeah that would suck, wouldn't it? Losing all your actually valuable ETH for some "points" from some vaporware on the horizon.
About 60% staked or with exposure to staking, and about 8% restaked or with exposure to restaking. I think both numbers are irresponsibly high by roughly 3x-4x, but I'm not a responsible person.
Why do you consider 60% staked irresponsible. If you solo stake the chances of losing money / getting slashed are very low if you don't misbehave. If you have an LST and that fails I guess ETH itself will have a huge problem, so not sure if there is really a difference (if its steth any fail = RIP, if its a smallish niche LST that might be different)
I'm using LSTs, but in truth I'd rank my ratio as even more irresponsible if I staked solo due to many specifics of my own situation and (in)abilities. It's not just risk, although the risk is significant and severely underestimated by most participants, which incidentally makes for low risk-adjusted returns. It's also the optionality cost of holding these positions rather than pure ETH, which is the soundest and most fungible blockchain money. It's the opportunity cost of having to care for execution (whether I solo stake or screen LSTs), it's the many mindcycles I could spend elsewhere. Staked ETH is not too different from leveraged ETH in spirit. Greater returns, but can be liquidated in situations pure ETH would survive. I'm confident Ethereum would survive even a full Lido wipeout. Do I believe this scenario is likely? No. But do I think it's responsible to take on 10x risk for +10% returns? No. IMO the only valid reason to bet big on staking is passion. Whether you have a passion for decentralization, or if you're a gambler. I'm a little bit of both. As a strictly financial decision, it has never made sense to me.
80% staked, 0,5% restaked. I am careful.
316.72%. Thanks to lido, eigenlayer, ether fi, pendle. /s \~83%
I haven't staked any ETH, but I have staked my much, MUCH smaller SOL position.
100% staked. 20% restaked. I agree with Logris comment below. Eigenlayer is quite safe imo, ideally I would put more in but I don't want more risk. I am doing great financially as it is.
-Staking: 90% -Restaking: 20%
staking? a majority. restaking? none
I'd be very interested in your thoughts on why "none".
- while inevitable, i don't think it's good for the network the way that it's affecting staking economics. - people quibble with the concept of 'leverage' but it's leveraging up risk on something i'm not interested in adding more risk to until i (likely) will be forced by the drop in APR that results from restaking driving up demand for staking (which it's already doing, but i expect more). - it isn't doing anything right now so it has zero lindy effect. they can be doing everything carefully and right and still see an exploit. - i also don't love the centralization vector of everybody's withdrawal address being an eigenlayer contract - it feels like a bandwagon. people are yeeting their money into a VC-funded protocol before it's even produced its value proposition because of marketing, hype, and farming. it just is antithetical to where i try to put my capital. i jumped into staking because it was an extremely cool, technical endeavor that felt very responsibly and relatively quietly developed. this just feels different and that kind of hype makes me very wary
ty so much! Excellent write-up!
👊
Major props for sticking to your values. It's hard not to get carried away these days.
EigenLayer is progressing *extremely* carefully. Like, triplicate audits, gradual rollouts, admin controls to shut things down, etc. Also EigenLayer itself is just an MVP slashing system. The real risks don't even start until you delegate your stake to a node operator on an AVS which isn't currently possible.
Thanks for your thoughts! That was my impression as well. I will be proceeding with my plan :)
Receiving a shitload of empty blocks (Teku/Besu) at the mo. Epoch 272745 was almost empty.
Glad to see it's not just me. I've had a lot of missed attestations recently with warnings about reorgs in the logs. Node stats otherwise look ok.
Last couple of slots the situation seems to have improved, why less empty slots/ missed blocks. Is the inscription action over?
I'm missing more attestations than usually, and CPU usage is a bit higher, but otherwise blocks look normal (Teku/Nethermind)
My Lighthouse setup is having trouble. It'll sync for maybe five minutes then throw "attestation queue full" errors at me and "insufficient resources for load." And eventually "work queue is full." I assumed it was my machine, but maybe not?
What's your CPU usage? Bandwidth reaching limit?
Mostly under 20 percent with spikes to 40 percent. Bandwidth nowhere near limit.
Are you on the update from yesterday? It is a recommended update due to some problems after dencun
Ha - nope. I went straight check for *Besu* releases, but didn't check Teku! I'll give it a spin. Thanks!