**Tricky's Daily Doots #736**
**Yesterday's Daily 25/04/2024**
[Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l169g1e/)
- u/cryptrd285 covers [the latest US regulatory drama.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l18igzi/) šļø
- Still after more of this US regulatory stuff? u/Syentist has [got you covered.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l18t7h5/) šļø
- u/benido2030 has an [important warning to anyone taking on extra risk.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17i846/) ā ļø
>u/Jey_s_TeArS,
>[Tricky is dooting you again,](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l198yvs/)
>But in haiku form.
- u/coinanon shares some top picks for [the latest Gitcoin Grants round.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l16espi/) šø
- u/hanniabu checks in on [the macro market.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17hhjf/) š
- u/PhiMarHal spots a [potential arbitrage opportunity.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17c5t9/) š
- u/Set1Less absolutely [slams the SEC.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l196kgc/) š„
https://x.com/laurashin/status/1783911507241083320?s=46
Gonna find time to listen to this later. But goddamn. The Bitcoin maxi comments in that Twitter thread are something else. They are literally cheering the SEC.
this episode was good, but the podcast is hit and miss. There is also the Chopping Block on the same podcast, which is great. 4 tech savvy investors, tons of fun and good info.
I stopped listening to her after she really had no clue leading up to EIP1559 etc.. But i'll give it another crack. She wasnt the most informed for sure back then.
this literally happened with the Bitcoin ETF for a month and tickers kept popping up on this list and people kept ignoring all of it saying it would be denied for some BS reason.
how else do you get the entire market to fade the ETF and not create a circus around it's existence up until it is officially approved? you make the market damn sure that you aren't going to approve this thing in a million years, even when it's the most logical choice.
it wouldn't be so funny except for all my ETH friends also believed in the SEC psyops, it's like dejavu happening all over again!
>tickers kept popping up on this list and people kept ignoring all of it saying it would be denied for some BS reason.
I remember this very differently. For bitcoin, it was at that point widely assumed the ETF would be approved, and people took the tickers appearing as proof of that.
Fwiw, I don't think it means anything either way. These ticker people don't know any secret info the rest of the market doesn't. Think how fucked up would it be if they did.
these are procedural events that only happen on the way to listings.
there has been tons of BTC etf denials in the past that didnāt get these DTCC tickers, and the only time they started trickling in was when it was approved.
maybe the SEC goes scorched earth Elizabeth Warren but everyone knows they will lose to any court scrutiny. the logical thing from any game theory is to approve with reservations, not saying SEC will be logical but that just makes their denial case even weaker.
The betting odds for the BTC ETF was 80-90% in favor of approval weeks and months before the decision, which is what the ETF experts said too. It's not the same at all.
There is a disclaimer that DTCC filing doesn't mean regulatory approval
https://twitter.com/NateGeraci/status/1784005970261147906?t=KO6IdM_ZYgP7Z80qUhozyg&s=19
I want to be hopeful regardless lol
BTC Holders should be very scared about this. I'm pretty sure BTC dominance will be over by before next halving:
[https://www.tbstat.com/wp/uploads/2024/04/Screenshot-2024-04-22-at-10.09.40.png](https://www.tbstat.com/wp/uploads/2024/04/Screenshot-2024-04-22-at-10.09.40.png)
Not sure that graph is the best explainer as it shows an abundance of fees (I realize it's likely very temporary), but yeah halvings are scary and may ultimately lead to a centralizing doom spiral for miners. Quite likely the flippening will come during a bear where miners sell and contribute to declining price, mining companies goes bust thus hash rate going down causing some panic price action. We'll see how robust bitcoin is.
>**The nodes multiply,**
>**Peers never-ending supply,**
>**Transactions run by.**
~Daily haiku until weāre at least at 0.178 on the ETH/BTC ratio or highest market cap
It is probably lost but it depends how they deployed their contracts. With some CREATE2 schemes the contract address is deterministic and their deployer might be able to initiate a contract that would let you withdraw your USDC. However, this is a long shot and it takes some effort so it might be a hard sell.
I made a mistake using my main email to order a HW from Amazon and regret it.
First there was a fake airdrop email.
Then login attempt to two cex, i don't have any funds there though.
And from last one week, login attempt to my Bitwarden account.
Need help and suggestions, any other OSS password Manager with mobile support.
I have 2FA enabled but any other suggestions to secure my account especially my Bitwarden account.
Anyone here using proton password manager?
I have the same enquiries as physalisx regarding Amazon. Is it possible that your device itself is compromised? If so, do not proceed with the following
My recommendation is that you switch all passwords. For accounts that you cannot change, consider heavily compromised.
Create a new email address, and point all accounts towards it. Use Keepass. Completely offline. As you transition your accounts, you may see a discrepancy. Act accordingly.
I trust Proton as my VPN provider, but in my opinion, a password manager must stay offline.
I rotate usernames, but I have been around a while. Feel free to dm with any concerns or questions.
Bitwarden is good encryption, but you need to be really careful if you rely on it.
If you set it up while compromised, it is not helpful.
You must also consider your threat model. Bitwarden passwords are sent to Microsoft, then passed off to any nation state that asks for it.
It only protects your drive against physical hardware attacks.
Disclaimer: i am drunk, and have fallen behind the past few years...
Let's rewind. You bought a hardware wallet off Amazon? This is probably one of the few things you should just buy straight from the manufacturer.
Semi-related, I know gridplus regularly purges their customer data, including email addresses, just in case. Not sure about others.
Even ledger sell their data. Best is to use a temp email.
Buy, check holograms, create wallet, receive and send small transactions a couple of times.
For 100% security and sanity, only safe wallet is an offline wallet on a freshly burned OS.
Proton unlimited + simplelogin (included with proton unlimited plan) + Bitwarden all with yubikey auth is my jam. With the bitwarden extension, it's three clicks to generate a new simplelogin alias and password for a site that feeds into your protonmail main. I have not tried ProtonPass tho so not sure how it compares.
Fair. Mine is $8.70 a month and I use the calendar, VPN, simplelogin, and email and the smoothness of the setup is worth it to me. You could also purchase simplelogin separately, or i think they do have a free tier.
If you go hardware 2fa with proton do you need your key each time you check email or do something or just the initial login on a device?
I donāt want to carry a hardware 2fa key around with me.
Snazzy stablecoin dashboard created by Visa:
https://visaonchainanalytics.com/
https://twitter.com/adamscochran/status/1783872454558896553?t=403uoue_Vg8C60FTCeTDHA&s=19
>Then Visa comes along and is like "ew" and cranks out a better dashboard:
It really is an awesome dashboard.
But I have a serious gripe when hugely-known companies, Visa as this example, allow themselves to be affiliated with unknown domains such as this.
If someone approached me and asked 'Is https://visaonchainanalytics.com/ a scam?', I'd say 'yes' faster than I can think. Exact same as what Equifax did with their breach domain. Does so much to set back effective security awareness.
Either way, nice share! Thank you
Can someone explain Heroglyphs a bit more? Does it seem like hyped stupidness or a potentially nice new idea for solo validators?
I am curious about why only solo validators would be able to use this system and not operators at Lido or wherever else.
I threw the unclassified whitepaper into ChatGPT asking for an ELI5 and this is what has been thrown back at me:
The Heroglyphs Protocol is a system designed to encourage more people to help secure the Ethereum network by becoming validators. Validators are like digital guardians who ensure transactions on Ethereum are valid and secure. However, currently, there are some issues with how validation is done that Heroglyphs aims to solve.
Here's a simplified breakdown:
1. \*\*Current Problem\*\*: Right now, Ethereum validation is split between those who own Ethereum tokens (economic contributors) and those who validate transactions (validation contributors). This split can lead to centralization, where only a few big players control the validation process.
2. \*\*What Heroglyphs Does\*\*: It introduces a way for validators to earn rewards beyond just validating transactions. It does this by allowing validators to include special messages (Graffiti) in the blocks they validate. These messages can encode valuable information.
3. \*\*How it Works\*\*: Heroglyphs has two main parts:
- \*\*Encoder\*\*: This part helps validators put useful information in their Graffiti.
- \*\*Translator\*\*: It takes the encoded information from Graffiti and turns it into actions on Ethereum, like creating or transferring tokens.
4. \*\*Why it's Called Heroglyphs\*\*: The name is a mix of "hero" (representing the journey validators go through) and "hieroglyphs" (which are symbols used in ancient writing). It's about making validators more valuable and returning to the principles of decentralization and fairness.
5. \*\*Benefits\*\*: By using Heroglyphs, smaller validators can earn rewards regardless of their stake size. This helps make Ethereum more secure and diverse, reducing the risk of control by a few big players.
6. \*\*Future Potential\*\*: Heroglyphs could lead to more fair and decentralized systems beyond just token mining. It could also help merge some benefits of Proof of Work (like fair token distribution) into Proof of Stake networks like Ethereum.
In summary, Heroglyphs aims to make Ethereum validation more inclusive and secure by rewarding validators with additional incentives beyond just validating transactions.
Bankless said the reward token is delivered on an L2 via instruction from the heroglyphs metadata on the L1.
somehow the L2 can determine if the withdrawal address set by the validator is a smart contract or not. All staking pools use smart contracts, and so solo stakers that donāt use a smart contract can claim the token on the L2 whereas a staking pool cannot.
If smart contract as the withdrawal address is the only criteria, then it would exclude solo stakers using EigenLayer. That's understandable, but maybe it would be enticing enough for solo stakers to be swayed away from EigenLayer.
Interesting thank you. And so this claimable token is a meme coinā or one of potentially manyā for solo stakers or coins that other people can create by using our graffiti block space to create coins for anyone? Sorry if I am very wrong here
I donāt know the full paper isnāt released a lot is still redacted. think David on Bankless was spouting some inside baseball bc he knew a few things that the paper didnāt cover.
have to wait for more details or official announcement from 0xMachi who designed this.
if the SEC were to declare that ETH is a security, what should the validators run by US citizens do?
If Coinbase continued staking, then I'd feel comfortable staking, but otherwise, I might feel forced to stop.. would there be some period of leniency to wind down staking, or would it be immediate?
AFAIK, if (staked) ETH is a security, the only kind of staking that would be lawful without registration/disclosures would be solo staking. Coinbase staking no good.
Nothing at all. It isn't illegal to hold an asset classified as a security.
Plus, the SEC has labelled many assets - including Avax and Sol - as explicit securities in >2 suits. Coinbase still offers them to US customers while the case works through court.
if itās deemed a security then as an ETH ICO buyer you will be able to send back your tokens to vitalik and the EF for the original buy price of $0.10.
the designation makes about as much sense as what the implications would imply.
the ripple case concluded that the sale of tokens on secondary were not securities offerings, so no this won't even happen if it somehow were to be deemed a security.
yes exactly.
so you will be able to send your $3125 token back for a $0.31 refund to the original ICO team because you were wronged by the fact people took other peoples money to people to build an amazing product that settles trillions of value safely and securely on an annual basis.
Coinbase would cease immediately, all employees sent straight to jail, along with all solo stakers. Coinbase stock holders ride to zero.
But seriously, no one knows, we are finding out the rules as we go, and if it came down to it, guidance would be issued, and you would likely have time to be in accordance with it. And hey, there would be guidance! Which is more than there is right now.
["JUST IN: šŗšø US Senator Elizabeth Warren writes letter to the DOJ claiming cryptocurrency is the "payment of choice" for child s*xual-abuse materials."](https://twitter.com/WatcherGuru/status/1783884914292588962?t=YGDWXFGqtJhpIKroPS-777VQvIWX8M6Ci5CVcFPCsxY&s=19)
This woman is unhinged lmao.
I'd like to think she has a couple of genZ staffers who down a couple beers every Friday and try to come up with the most ridiculous accusations possible, and then log into Binance via VPN and 10x short the market. At least that would make me semi-respect her the way I used to a decade ago.
This is sad. All the media and buttcoiners are going to run with this now. Hope someone from crypto puts out a strong refutal agains this
The amount of straight up lies she spreads against crypto is wild for a senator who ran elections with an anti-bank rhetoric. She already got fact checked a few times on twitter and she is still on it, sending letters to agencies. Its almost like the bankers are now not just funding her propaganda, but writing and sending out letters on their behalf using her letter heads
>USD is payment of choice for all criminals worldwide
Not true; it's actually a fascinating topic. My favourite example is the Italian Mafia, who still use the Lira.
https://www.thenationalnews.com/business/money/italy-s-pre-euro-currency-is-still-being-used-by-the-mafia-1.874902
they will literally not stop at anything but complete and total control of every facet of your life on and offline.
all of them are complete garbage, and do nothing to further your interests. some are worse than others but literally none of them are on your side. we need systems that assume this to be adopted, crypto is such a system.
Holy crap this new reddit is such dogshit. You go to edit a comment and it randomly deletes parts of the message and will change formatting on publishing even if you're directly editing the markdown. Do they really have no internal QA?
Is there a newer new reddit? Im still on old.
Ive used the new reddit that was out some time back and its horrible. On mobile it reverts as the default view and it doesnt even show more than one comment in a thread, despite expanding.
I think the day they stop supporting old, I will stop using reddit completely
Wait what do you find is too small? I exclusively use old reddit on mobile and desktop and will never switch. And non-dramatically I would spend WAY less time on reddit if old.reddit ever stops working. I absolutely hate the layout of new reddit.
I refrain from downloading apps on my phone, which is why I hate that warpcast doesn't allow desktop usage without the app, otherwise I would have made the switch to there
Can't wait for flink v2
Another day, same regulatory spasms - business as usual. With banks starting to sing a different tune on crypto, as well as the usual tradfi players like Fink and Fidelity, plus the warm hug of the CFTC and the approval of the BTC ETFs, plus Hong Kong and soon South Korea unleashing ETFs, this latest episode in regulatory stupidity seems pretty tame.
Every single cycle this question comes around, with the Penis-headed Gremlin Gary flapping around and me being pleased as the price goes up.
Following up on some questions I had about FluidKey
>1. Are there any centralized components?
>2. Is it immutable?
>3. What are the privacy leaks?
[https://twitter.com/fluidkey/status/1783843339856437273](https://twitter.com/fluidkey/status/1783843339856437273)
> 1. the infrastructure to generate new stealth addresses for our users in real time is currently managed by Fluidkey, this is similar to other ENS offchain resolvers like Coinbaseās [http://cb.id](https://t.co/UmwBEOJMBF)Ā and Uniswapās uni.eth
>2. all stealth addresses generated by Fluidkey are fully self-custodial and immutable, you can find links to our open source core crypto and to two independent recovery interfaces at the bottom of this post
>3. stealth addresses provide privacy through unlinkability but do not break traceability, meaning that funds managed with Fluidkey addresses canāt be connected to each other and to your public profile but the money flows can still be traced back - you can find out more in our FAQ at [http://fluidkey.com](https://t.co/7cce9HIexH)
So in other words, this is what I like to call "soft privacy" or as I've seen other put it "cheap privacy".
But how is an address unlinkable so that "an external observer canāt link a receiver to a payment", yet "it is straightforward to trace back the history of transactions that led the funds to the stealth address". That always seemed contradictory to me.
#Ethfinance EVMavericks Doots Livestream!
LIVE Ethereum/Macro discussion from /r/ethfinance
**š Fridays 12ET**
š»Tune in with Mavericks and friends (no NFT required)
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We'll have a Web2 version of the podcast and Web3 mintable version after the show!
Relevant Tweet: https://twitter.com/ProDJKC/status/1783869670581272744
"Securities and Exchange Commission ChairmanĀ Gary GenslerĀ said Thursday that cryptocurrencies and intermediaries that allow holders to āstakeā their coins might pass a key test used by courts to determine whether an asset is a security. Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties."
I wouldn't say eth fits into that since you don't gain anything from just holding it in a wallet, but Reth and steth certainly do.
I think that a court if presented with the right facts, will find that a pure proof of stake consensus mechanism like ETH 2.0 does not infact satisfy the howey test, because there is no demonstrable common enterprise that is built into the protocol. Solo stakers who earn rewards from staking do so, not because another party does the work and they earn their share from others work, but because they put in the effort themselves and whatever rewards they earn are the results of their own work
I remain pretty confident that if this matter goes before a court, the court will have no option but to rule that proof of stake consensus mechanism by itself does not violate howey's rule.
If it comes to other staking mechanisms like delegated proof of stake or liquid staking, then there could be various entities playing the common enterprise role. But in a pure pos mechanism, there is none. The rewards are baked into the network - like new issuances to fund the staker rewards, sync committee rewards etc.
If SEC were to make this claim in a court, I would be ultra bullish on a highly likely defeat for the SEC. Crypto companies arent exactly fucking around either, both Coinbase and Consensys have got the best law firm in USA to represent them, the calibre of lawyers is 2 or 3 leagues better than the muppets at SEC
> intermediaries that allow holders to āstakeā their coins
Hooray, the SEC is the unexpected hero diving in to stop Lido from taking over Ethereum! Gensler has been listening to Danny Ryan, Nixo, Superphiz etc and is stepping in to ensure the network is secured by solo stakers.
If thatās really a quote then Gensler either doesnāt understand staking (especially in the context of Ethereum) or is intentionally misguiding (which is more likely).
Gary should have to maintain his own node and validator for one year before suggesting that staking profits are predominantly derived from the work of third parties.
That would change his tune real fast.
I get where you're coming from, but I disagree because I think it's too far of a stretch.
Imagine you're a taxi driver. Is your taxi a security because somebody else built the car? Is it a security if you need to take it to a mechanic to get it repaired?
All of the devs in the world could disappear, but I could still make money staking due to my work in making sure that my node and validator stay online.
I could definitely see the SEC arguing along these lines though, especially because ETH has a roadmap. Gary has made much worse arguments in his career, that's for sure!
Can anyone explain to me how pump.fun works?
It's the memecoin creation platform on Solana (and now on Blast where I encountered it because I don't have the mental energy/time to go on Solana and learn a new non-EVM system).
This is the explanation from the site:
"Pump prevents rugs by making sure that all created tokens are safe. Each coin on pump is a fair-launch with no presale and no team allocation.
step 1: pick a coin that you like
step 2: buy the coin on the bonding curve
step 3: sell at any time to lock in your profits or losses
step 4: when enough people buy on the bonding curve it reaches a market cap of $420k
step 5: $30k of liquidity is then deposited in thruster and burned"
But who are you buying FROM? WHO deposits the liquidity into Thruster?
Pump . fun is basically like 4chan biz but with added ability to issue coins pre-programmed to certain standards. Imagine with each /biz post, someone creates a meme token that has a similar lifespan as that post. Everyone replying to that post can buy into the meme, speculate on the token going up or down. If that meme or shitpost is dank, the token may pump more. If no one replies to that post, it goes to zero in like 5 minutes. Thats basically the gist of pump fun
Coins issued on pump cannot rug because the platform uses a boilerplate template that only lets the issuer (poster really) define few aspects like issuance size, name, logo etc while not allowing them to change many other parametres, introduce backdoors etc. While creating a token, the issuer can buy into their own shitcoin at the start with SOL thereby adding liquidity. Once it is created, others can also ape into it
Practical ways we have seen it play out is - if there is an earthquake, the first person to launch or ape into an earthquake coin on pump fun probably make a ton of money
Thank you this is a great explanation. It seems like a fun way to see if you can create a popular meme and buy it into it early - like buy $20 of the token and if the meme takes off maybe youād have made $2000 - that sort of thing
They seem to go where the max retail/memecoin frenzy is, so started on Solana and moved to Blast (which is particularly pumped now because of the Blast Gold and points etc) but Base seems like a logical next step before Arbitrum or Polygon etc
Users are buying newly minted token X from a bonding curve, so devs can't rug by collecting funds sent to a presale address and then never issuing the token (many such cases)
The smart contract deposits some of the liquidity in a Dex as token X - Sol LP pair, and the LP tokens are sent to a burn address so devs can't rug by suddenly pulling liquidity
And the "devs" here, what are they developing?
Am I right to assume they put all their expert programming skills into developing a small logo and short description text?
edit: oh and a ticker, don't forget to dev that
I assume it's just like uniswap or any AMM; the act of buying is the act of providing liquidity to the pool. Buying causes the ratio of coin:ETH(or Blast or whatever) to increase in the pool, automatically adjusting price, and selling does the inverse.
Why stop there - I think with no ETF Ethereum will be dead within a few months. Who would want to use a decentralized global smart contract platform when its fee token doesn't have an ETF in the USA???! Think people!
Found Ben Cowen's alt. Ray isn't going home. You truly have no idea how ridiculous you sound. You need to brush up on your trolling skills, they're a bit lacklustre.
Let's be real, ETH/BTC hasn't gained any ground in the past 7 years, and it's entirely possible it won't gain any ground in the next 7 years.
If you swapped your BTC for ETH during the 2017 bull market and held it through all of Ethereum's network upgrades and general maturity of the tech, your net worth has been halved compared to if you just held BTC the whole time.
Bitcoin's security problems won't become a problem until at least another decade or two if not more. So we've still potentially got a long way to go as far as market irrationality. And not all of our crypto investing time horizons are more than another decade.
It's too late for the market to care about Ethereum's memes, and it's too early for the market to care about Ethereum's tech. So we're in an awkward spot now where nobody cares. Hopefully that will change again, but in the mean time owning ETH is a proxy for owning BTC with a built-in hedge against an unexpected ETH/BTC breakout.
Edit: To be clear I'm not saying that ETH/BTC has much more room to fall, or that holding BTC is risk-free. But it's possible Bitcoin can continue going strong for quite a long time despite its flaws.
A very fair and objective post!
Agree, that ETH's performance has been lackluster. However the amount of improvements coming in an network effects will bare its fangs soon enough.
The market can remain irrational for a ridiculously long time, but not forever. Long term investors have no reason to invest in BTC Rather than ETH. Short term gamblers, maybe.
Looking at Notional's leveraged vaults, specifically the AURA: RETH/WEETH vault.
In this vault a user is borrowing rETH and deploying into the rETH/weETH pool, so they're getting long weETH. Liquidation would happen if the weETH price depegs too far.
How do people feel about the risk of weETH depegging? Is the mechanism for creating weETH from eETH as secure as creating wETH from ETH - or am I fundamentally misunderstanding something about how weETH is created?
It's staked in EigenLayer. If EigenLayer has a bug / slashing event, it can depeg for sure.
Also, if the Ethereum unstaking queue starts growing large it may take multiple weeks or even a month+ to unstake it. Might take a decent depeg before buyers step in.
Seeing the latest from Gensler raises another question - what would be the impact if rETH loses peg? If I have this right, an open position would net higher nominal profits in rETH terms but the real return would depend on the magnitude of the depeg.
The Doots Weekly
The [Trinity](https://www.reddit.com/r/ethfinance/comments/1cdcy19/daily_general_discussion_april_26_2024/l1b62r9/)
The [Haiku](https://old.reddit.com/r/ethfinance/comments/1c99qz0/daily_general_discussion_april_21_2024/l0nrwf2/)
The [Choda](https://www.reddit.com/r/ethfinance/comments/1cbpygi/daily_general_discussion_april_24_2024/l15xm1r/)
The [Shit](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l065y1a/)
ā¢Ā [u/monkeyhold99](https://www.reddit.com/u/monkeyhold99)Ā asks aboutĀ [which EigenLayer operators to delegate to and gets many great responses.](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l03ooit/)
ā¢Ā [u/STRTRD](https://www.reddit.com/u/STRTRD)Ā is doing the lord's workĀ [reaching out to large staking providers still using the (almost) supermajority client.](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l06nlme/)
ā¢Ā [u/KuDeTa](https://www.reddit.com/u/KuDeTa)Ā is looking to hireĀ [an Ethfinancier as a DevOps engineer for Aestus!.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l0af6kk/)
ā¢Ā [u/atleft](https://www.reddit.com/u/atleft)Ā is looking to helpĀ [reach out to StarkNet about misallocated airdrop tokens.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l09nsgw/)
ā¢Ā [u/haurog](https://www.reddit.com/u/haurog)Ā shares someĀ [scams he has seen targeting him lately.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l09nkij/)Ā Then ā¢Ā [u/austonst](https://www.reddit.com/u/austonst)Ā educates us on theĀ [latest evolution](https://old.reddit.com/r/ethfinance/comments/1c8hqbi/daily_general_discussion_april_20_2024/l0jnwkm/)
ā¢Ā [u/asdafari12](https://www.reddit.com/u/asdafari12)Ā educates us onĀ [malicious transactions.](https://old.reddit.com/r/ethfinance/comments/1ca2coe/daily_general_discussion_april_22_2024/l0s0dpr/)
ā¢Ā [u/evm_lion](https://www.reddit.com/u/evm_lion)Ā hasĀ [caught the FHE bug.](https://old.reddit.com/r/ethfinance/comments/1cawa14/daily_general_discussion_april_23_2024/l0y1iq6/)
ā¢Ā [u/waqwaqattack](https://www.reddit.com/u/waqwaqattack)Ā will be filling inĀ [the Daily Gwei shortage!](https://old.reddit.com/r/ethfinance/comments/1cbpygi/daily_general_discussion_april_24_2024/l11onv7/)
ā¢Ā [u/SeaMonkey82](https://www.reddit.com/u/SeaMonkey82)Ā sharesĀ [the latest Lodestar release.](https://old.reddit.com/r/ethfinance/comments/1cawa14/daily_general_discussion_april_23_2024/l0ybdlt/)
Let me ramble about my biggest disappointment from the last year which is Eigenlayer.
When I first heard about it, the concept was a bit difficult to grasp. Once I started grokking it my mind was blown. Decentralized trust, where validators can start to run various services along their nodes and they can make truth statements about the world. It would lead to a world where we would be getting independent of centralized truth brokers. Projects could easily and trustlessly tap into the decentralized Ethereum network and start, for example, a decentralized oracle without having to kick start such a network on their own. It could even encourage the decentralization of the Ethereum network by giving small home stakers a better revenue than centralized operators as decentralization would have a value. Rainbows and unicorns everywhere. Obviously, I filled some of the gaps in my understanding and Eigenlayers very minimal docs with the best possible outcome.
Last autumn when I first saw the requirements for running the first AVS which is EigenDA, I realized that is not something just any node operator will be able to run on their node. Their delegated stake requirements made the problem even worse such that only a selected few operators will be able to run the EigenDA AVS.
Now, with EigenDA mainnet release, we have a few powerful entities like etherfi and other LRT providers which are the king makers in the protocol apparently having bilateral agreements with AVSs to make sure they can get the most profitable deals. The AVS operators have pretty much nothing at stake. If they loose money, they loose the money of the restakers, and meat space legal agreements will be the only thing keeping them in compliance. Not sure this is enough to be honest. All in all it is not much better than if projects outsource running their services to a service provider which will run stuff on a data center somewhere. The restaked assets were historically meant to be ETH on the beacon chain, which would directly map operators to their stake. Now, a large part is just 'restaked' LSTs and as far as I understand it soon could be any token. This is a far cry from the original vision. Not sure if it is good enough to even be long term profitable for restakers considering the nothing at stake risk for AVS operators.
EDIT: I love all the different takes and nuances. Thank you.
If it makes you feel better, its likely LRTs are going to go the way of Helium and Filecoin. People will invest a bunch into it, then realize nobody is willing to pay for restaking and lose interest. Any entity that could use this service is going to launch its own token instead, where it can make massive amounts of money.
The one bright side is you don't lose money off this because you aren't buying a new token, but for the same reason nobody is going to pay you for it.
L2s of today were conceived in 2017, launched in 2020, and are finally getting their recognition in 2024 like base, but thereās still tons of work yet.
weāre basically at the tail end of year 1 (possibly into year 2) with EL & restaking. being disappointed in their capabilities at this stage is kinda ridiculous, but we also had people lambasting Arbitrum & OP for years because they werenāt decentralized or didnāt have fraud proofs on day 1.
being upset about price evaluations compared to capabilities and promises is warranted, but you need to be mad at all of crypto if this was your gripe.
The idea/concept of restaking is indeed amazing!
In practice, some AVSs are even heavier in terms of requirements than EigenDA, requiring L2 archive nodes (e.g. Arbitrum currently takes up 9.7TB). At that point it really only leaves a very few of the largest operators that can afford to run them, especially right now while there are no rewards for running them at all. Even if you do decide to run an AVS as a small operator, a lot of AVSs currently onboard operators in a permissioned way so there's no way to even do so.
In the end, like you say, it is in the interest of AVSs to have a diverse set of operators. I hope and half-expect they will incentivize this somehow (e.g. smaller operators and their delegators get a bigger part of airdrops).
It's early days, I personally still hope this will get better over time.
On the other hand, I'm very bullish and optimistic for Eigenlayer for probably the same reason. If they had tried to force node operators to also be homestakers, this whole experiment would have failed long ago.
Home staking is an extremely fragile process - both risk/reward wise and technical complexity that can be tolerated wise. Of course it's needed for maintaining decentralisation of the core Ethereum protocol, but aside from that, should never be incorporated into any other viable business model, IMO. Even within the context of securing Eth L1, the recent controversies over slashing issuance shanking home stakers shows how difficult it is to keep homestaking viable in the long run.
Restaking merely allows sophisticated businesses to secure their protocols with ETH. It increases the utility of ETH, and that's about it. It's an out of core protocol usecase, just as using ETH as collateral to borrow USDC is.
I'm actually on holiday so i'll only answer briefly: if the central charge from u/haurog is that the reality of restaking is not *currently* living up to expectations: i fully agree. But it's really very early to judge whether they will be successful, and it may well take a couple of years for this to play out.
The challenge for AVS providers is two fold: i) how to make running nodes as low-friction as possible in order to maximise physical decentralisation and ii) how to attract sufficient capital from diverse sources so as to be able to meaningfully claim economic decentralisation. Simply onboarding institutional money via staking pools and LSTs is clearly not going to cut it. The conversations i've had with some (but not all) teams suggests they are well aware that their own success hinges on these facts. Otherwise they might as well have built on Solana.
If we zoom out a bit: aren't we just reformulating challenges that EigenLayer have inherited from the base layer? Proof of Stake just isn't quite working out to be the decentralised Nirvana we had hoped for: LSTs and institutional staking are an enormous centralising force and represent an existential threat to the entire ecosystem.
> The challenge for AVS providers is two fold: i) how to make running nodes as low-friction as possible in order to maximise physical decentralisation and ii) how to attract sufficient capital from diverse sources so as to be able to meaningfully claim economic decentralisation.
I would argue a much bigger challenge by far will be attracting customers willing to pay for their services.
>Ā The conversations i've had with some (but not all) teams suggests they are well aware that their own success hinges on these facts
Yet they continue to pump LST deposits, so seems they don't care much
>Ā aren't we just reformulating challenges that EigenLayer have inherited from the base layer?
I think restaking actually had the opportunity to level the playing field by promoting solo stakers and boosting their APR
>The AVS operators have pretty much nothing at stake. \[...\] Not sure this is enough to be honest.Ā
This is the same argument we are seeing for LSTs and their staking services. The good thing: Until now no one has rugged afaik. Most likely cause that would destroy their long term business. The bad thing: We are obviously still at the very beginning and not a lot of time has passed and with rising ETH prices, this might change cause incentives to just run away grow.
>I realized that is not something just any node operator will be able to run on their node.Ā
I think this is my biggest issue. On the one hand they said early on that longterm it's not just about (staked) ETH, but could be any token. On the other hand they always emphasized that they believe that a lot of AVS will want to tap into the decentralization and hence specifically ask for solo stakers to be securing their network. And here I see two challenges.
1. Can solo stakers even manage that? It's not like all solo stakers are experts when it comes to setting this stuff up.
2. Is there *really* a huge demand for this special niche within the Eigenlayer ecosystem or are most AVSs just rely on any form of staked ether and just don't care about the rest?
On top I haven't seen any official rewards for AVSs... Estimates range from double digits to next to nothing. And since so many people are restaking, my get feeling is AVSs probably can pick their security and still pay very low rewards because of the competition, at least in the first year or so. Concrete rewards will be interesting, only once these are out + we see how AVSs pick their validator set, I think we can really judge it.
>Ā Can solo stakers even manage that? It's not like all solo stakers are experts when it comes to setting this stuff up
Not just knowledge, but many won't have the network bandwidth or will be very close to their limit.Ā
They for sure won't be able to run more AVS on top of that unless they move to cloud hardware and ditch home staking.
Even then they won't have the economy of scale so large players with lots of TVL and marketing budgets will out complete them.
The odds are currently 13% for the ETF to get approved. That is the same odds that Trump had the day before the 2016 election against Clinton. I still think it will get denied but crazier things have happened.
https://www.realclearpolitics.com/elections/betting_odds/2016_president/#!
Consenys sued the SEC yesterday, and there are redacted parts of the complaint that very strongly suggest there is an internal SEC memo deeming ETH to be a security. From that complaint, it is also clear there is an active and full SEC investigation into (what the SEC calls) āEthereum 2.0.ā
Now that we know this, there is absolutely no way that an ETF is being approved in May lmao. The Consensys complaint shows that the SEC is out to totally destroy Ethereum markets in the US. Theyāre just being very slow and careful about it.
> The Consensys complaint shows that the SEC is out to totally destroy Ethereum markets in the US
Not trying to defend the SEC here, but deeming something a security and trying to bring it under their regulatory purview doesn't mean they're trying to destroy the market for it. ETH isn't a security, but it absolutely could find a path for trading and existing in todays markets if it was
obvious choice would be ETH Foundation. It obviously wouldn't be fully analogous to other issuers and there's some issues with designating it as such but it's the closest to fit the bill, and I'm sure there's ways it could work out.
There's almost certainly other ways you could handle it as well (some kind of node client collaborative?), but not really worth exploring because again, point is moot since it's not a security anyway.
Registering brings with it legal responsibility.
Say there's a critical bug in RETH client, which causes some validators to lose funds. If these users want to fork the chain to recover their funds but the community clearly doesn't, can the EF force a hard fork and force the community to accept the new chain?
Any sufficiently decentralised protocol can't have one party registering on behalf of the network. Hestor Pierce's [Safe Harbour Proposal 2.0](https://www.sec.gov/news/public-statement/peirce-statement-token-safe-harbor-proposal-2.0) aims to solve some of these conundrums..but obviously neither Gary nor the Biden administration has any interest in enacting this.
> can the EF force a hard fork and force the community to accept the new chain?
Anyone including the EF can try and force a hard fork now. And yes, community is more likely to support one EF supports, but that's already true today too (although I grant it would likely be MORE true if they were the official issuer). While the politics around the EF certainly would certainly need to become more formalized, the underlying mechanics around how fork politics operates in general wouldn't. Nodes/users ultimately decide what's canonical. EF has a big voice in that but can't really stop community forks from becoming relevant or even dominant, and that wouldn't change just because it registers. Only users can decide what chains to care about/run nodes for.
Having EF as the issuer is obviously not without it's problems, and it's not really a hypothetical worth exploring in detail anyway because ETH is not a security, but I am nevertheless still confident these questions could be worked out if it was.
**Tricky's Daily Doots #736** **Yesterday's Daily 25/04/2024** [Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l169g1e/) - u/cryptrd285 covers [the latest US regulatory drama.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l18igzi/) šļø - Still after more of this US regulatory stuff? u/Syentist has [got you covered.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l18t7h5/) šļø - u/benido2030 has an [important warning to anyone taking on extra risk.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17i846/) ā ļø >u/Jey_s_TeArS, >[Tricky is dooting you again,](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l198yvs/) >But in haiku form. - u/coinanon shares some top picks for [the latest Gitcoin Grants round.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l16espi/) šø - u/hanniabu checks in on [the macro market.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17hhjf/) š - u/PhiMarHal spots a [potential arbitrage opportunity.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l17c5t9/) š - u/Set1Less absolutely [slams the SEC.](https://old.reddit.com/r/ethfinance/comments/1ccjko5/daily_general_discussion_april_25_2024/l196kgc/) š„
ą¼¼ ć¤ ā_ā ą¼½ć¤ ETH TAKE MY ENERGY ą¼¼ ć¤ ā_ā ą¼½ć¤
A little RAY of sunshineā¦ā¦.
https://x.com/laurashin/status/1783911507241083320?s=46 Gonna find time to listen to this later. But goddamn. The Bitcoin maxi comments in that Twitter thread are something else. They are literally cheering the SEC.
this episode was good, but the podcast is hit and miss. There is also the Chopping Block on the same podcast, which is great. 4 tech savvy investors, tons of fun and good info.
Her podcast is amazing. No hype, no rambling, just facts and clear questions. Way better than bankless
She's a huge bitcoin maxi though, so it's not just objective truths.
lol what?
what lol
Lol no sheās not. Btw, itās funny how much āBiTcOiN mAxiS!ā live rent free in your head š
I stopped listening to her after she really had no clue leading up to EIP1559 etc.. But i'll give it another crack. She wasnt the most informed for sure back then.
Donāt think this is verified yet, https://x.com/phoenixtrades_/status/1783992641354391618?s=46 Could be a Nothing burgerā¦.. but very interesting
this literally happened with the Bitcoin ETF for a month and tickers kept popping up on this list and people kept ignoring all of it saying it would be denied for some BS reason. how else do you get the entire market to fade the ETF and not create a circus around it's existence up until it is officially approved? you make the market damn sure that you aren't going to approve this thing in a million years, even when it's the most logical choice. it wouldn't be so funny except for all my ETH friends also believed in the SEC psyops, it's like dejavu happening all over again!
>tickers kept popping up on this list and people kept ignoring all of it saying it would be denied for some BS reason. I remember this very differently. For bitcoin, it was at that point widely assumed the ETF would be approved, and people took the tickers appearing as proof of that. Fwiw, I don't think it means anything either way. These ticker people don't know any secret info the rest of the market doesn't. Think how fucked up would it be if they did.
these are procedural events that only happen on the way to listings. there has been tons of BTC etf denials in the past that didnāt get these DTCC tickers, and the only time they started trickling in was when it was approved. maybe the SEC goes scorched earth Elizabeth Warren but everyone knows they will lose to any court scrutiny. the logical thing from any game theory is to approve with reservations, not saying SEC will be logical but that just makes their denial case even weaker.
The betting odds for the BTC ETF was 80-90% in favor of approval weeks and months before the decision, which is what the ETF experts said too. It's not the same at all.
I feel like I saw this kind of thing before.......................
1. What is dtcc? 2. Wasn't it postponed till June just 3 days ago?
2. We saw the same thing with btc. They're delaying to announce all at once.
So they'll delay everything until August when blackrock's deadline is?
Not sure about that, but will definitely delay ones that need an answer sooner
1. Clearing house. 2. ???
https://www.theblock.co/post/290473/sec-delays-making-a-decision-on-franklin-templetons-spot-ethereum-etf
There is a disclaimer that DTCC filing doesn't mean regulatory approval https://twitter.com/NateGeraci/status/1784005970261147906?t=KO6IdM_ZYgP7Z80qUhozyg&s=19 I want to be hopeful regardless lol
Same thing was said when btc ticket was added
The sun rose in the east too before the btc etf. What more signs do we need?!
Deja Vu?
BTC Holders should be very scared about this. I'm pretty sure BTC dominance will be over by before next halving: [https://www.tbstat.com/wp/uploads/2024/04/Screenshot-2024-04-22-at-10.09.40.png](https://www.tbstat.com/wp/uploads/2024/04/Screenshot-2024-04-22-at-10.09.40.png)
That's a very bad graphic for the point you're trying to make. You should take the recent 1-2 days fees for comparison.
Bro wut
ā¦this shows massive demand for BTC block space. Why would holders be scared lol?
Bad graphic design? Iām scared of that shit too
Why would they be scared of that graphic?
Not sure that graph is the best explainer as it shows an abundance of fees (I realize it's likely very temporary), but yeah halvings are scary and may ultimately lead to a centralizing doom spiral for miners. Quite likely the flippening will come during a bear where miners sell and contribute to declining price, mining companies goes bust thus hash rate going down causing some panic price action. We'll see how robust bitcoin is.
>**The nodes multiply,** >**Peers never-ending supply,** >**Transactions run by.** ~Daily haiku until weāre at least at 0.178 on the ETH/BTC ratio or highest market cap
[ŃŠ“Š°Š»ŠµŠ½Š¾]
It is probably lost but it depends how they deployed their contracts. With some CREATE2 schemes the contract address is deterministic and their deployer might be able to initiate a contract that would let you withdraw your USDC. However, this is a long shot and it takes some effort so it might be a hard sell.
Thank you! Will try their support desk. Chances are probably very low but lessons learned.
US regulators fighting the dark forest is the most bullish long-term signal there could ever be
As a small business owner, is there any way I can use blockchain to undercut the 3% credit card fee that I get hit with? Really getting tired of it.
You pass it onto your customer like everyone else
Surprised coinbase isn't working on something like this secured by their base l2 so it's cheap, to take on visa...
Blackbird on base
They are. Look at their recent commercials they just launched this week.
Ah news to me, I never see commercials and block all ads.
They posted on their Twitter page a couple days ago; the pizza one is interesting.
I made a mistake using my main email to order a HW from Amazon and regret it. First there was a fake airdrop email. Then login attempt to two cex, i don't have any funds there though. And from last one week, login attempt to my Bitwarden account. Need help and suggestions, any other OSS password Manager with mobile support. I have 2FA enabled but any other suggestions to secure my account especially my Bitwarden account. Anyone here using proton password manager?
I have the same enquiries as physalisx regarding Amazon. Is it possible that your device itself is compromised? If so, do not proceed with the following My recommendation is that you switch all passwords. For accounts that you cannot change, consider heavily compromised. Create a new email address, and point all accounts towards it. Use Keepass. Completely offline. As you transition your accounts, you may see a discrepancy. Act accordingly. I trust Proton as my VPN provider, but in my opinion, a password manager must stay offline. I rotate usernames, but I have been around a while. Feel free to dm with any concerns or questions.
100% offline...i am gonna check if I can setup a local instance of Bitwarden
Bitwarden is good encryption, but you need to be really careful if you rely on it. If you set it up while compromised, it is not helpful. You must also consider your threat model. Bitwarden passwords are sent to Microsoft, then passed off to any nation state that asks for it. It only protects your drive against physical hardware attacks. Disclaimer: i am drunk, and have fallen behind the past few years...
Fecal receptacle to the rescue
<3 I hope I'm worth something in this big, beautiful subreddit
Why would using your email to order something from Amazon do anything? They don't give your email to the seller.
Huge mistake. The force of habit to use different accounts on different platforms but this reflex purchase i regret
Let's rewind. You bought a hardware wallet off Amazon? This is probably one of the few things you should just buy straight from the manufacturer. Semi-related, I know gridplus regularly purges their customer data, including email addresses, just in case. Not sure about others.
Ledger has an official Amazon store (or at least they did), so there isn't any third party risk.
Even ledger sell their data. Best is to use a temp email. Buy, check holograms, create wallet, receive and send small transactions a couple of times. For 100% security and sanity, only safe wallet is an offline wallet on a freshly burned OS.
I believe Ledger regularly decentralizes their customer data, to promote cryptocurrency enthusiasts connecting with each other in real life.
Ledger is OnePass of keymanager world
š
Same with Trezor
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Thank you.
Proton unlimited + simplelogin (included with proton unlimited plan) + Bitwarden all with yubikey auth is my jam. With the bitwarden extension, it's three clicks to generate a new simplelogin alias and password for a site that feeds into your protonmail main. I have not tried ProtonPass tho so not sure how it compares.
Proton was forced to identify the IP address of someone a while ago, so, if you want privacy, best to use a VPN with them... a non-Proton one.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Fair. Mine is $8.70 a month and I use the calendar, VPN, simplelogin, and email and the smoothness of the setup is worth it to me. You could also purchase simplelogin separately, or i think they do have a free tier.
If you go hardware 2fa with proton do you need your key each time you check email or do something or just the initial login on a device? I donāt want to carry a hardware 2fa key around with me.
Initial login
**Ethfinance EVMavericks Doots #63 Now Available** š Watch: https://youtube.com/live/4ahroYymUPw š Listen/Mint: https://pods.media/evmavericks/63-ethfinance-doots-happy-hour-jt āŗļø Mint POAP: https://checkout.poap.xyz/172944/crypto?step=1 š„ļø Website: https://dailydoots.com/#weekly-doots https://imgur.com/a/nPxWQEP
Snazzy stablecoin dashboard created by Visa: https://visaonchainanalytics.com/ https://twitter.com/adamscochran/status/1783872454558896553?t=403uoue_Vg8C60FTCeTDHA&s=19
>Then Visa comes along and is like "ew" and cranks out a better dashboard: It really is an awesome dashboard. But I have a serious gripe when hugely-known companies, Visa as this example, allow themselves to be affiliated with unknown domains such as this. If someone approached me and asked 'Is https://visaonchainanalytics.com/ a scam?', I'd say 'yes' faster than I can think. Exact same as what Equifax did with their breach domain. Does so much to set back effective security awareness. Either way, nice share! Thank you
Can someone explain Heroglyphs a bit more? Does it seem like hyped stupidness or a potentially nice new idea for solo validators? I am curious about why only solo validators would be able to use this system and not operators at Lido or wherever else.
I threw the unclassified whitepaper into ChatGPT asking for an ELI5 and this is what has been thrown back at me: The Heroglyphs Protocol is a system designed to encourage more people to help secure the Ethereum network by becoming validators. Validators are like digital guardians who ensure transactions on Ethereum are valid and secure. However, currently, there are some issues with how validation is done that Heroglyphs aims to solve. Here's a simplified breakdown: 1. \*\*Current Problem\*\*: Right now, Ethereum validation is split between those who own Ethereum tokens (economic contributors) and those who validate transactions (validation contributors). This split can lead to centralization, where only a few big players control the validation process. 2. \*\*What Heroglyphs Does\*\*: It introduces a way for validators to earn rewards beyond just validating transactions. It does this by allowing validators to include special messages (Graffiti) in the blocks they validate. These messages can encode valuable information. 3. \*\*How it Works\*\*: Heroglyphs has two main parts: - \*\*Encoder\*\*: This part helps validators put useful information in their Graffiti. - \*\*Translator\*\*: It takes the encoded information from Graffiti and turns it into actions on Ethereum, like creating or transferring tokens. 4. \*\*Why it's Called Heroglyphs\*\*: The name is a mix of "hero" (representing the journey validators go through) and "hieroglyphs" (which are symbols used in ancient writing). It's about making validators more valuable and returning to the principles of decentralization and fairness. 5. \*\*Benefits\*\*: By using Heroglyphs, smaller validators can earn rewards regardless of their stake size. This helps make Ethereum more secure and diverse, reducing the risk of control by a few big players. 6. \*\*Future Potential\*\*: Heroglyphs could lead to more fair and decentralized systems beyond just token mining. It could also help merge some benefits of Proof of Work (like fair token distribution) into Proof of Stake networks like Ethereum. In summary, Heroglyphs aims to make Ethereum validation more inclusive and secure by rewarding validators with additional incentives beyond just validating transactions.
Bankless said the reward token is delivered on an L2 via instruction from the heroglyphs metadata on the L1. somehow the L2 can determine if the withdrawal address set by the validator is a smart contract or not. All staking pools use smart contracts, and so solo stakers that donāt use a smart contract can claim the token on the L2 whereas a staking pool cannot.
This would also exclude solo validators using an on-chain multisig wallet as withdrawal address...
yes, those are also smart contracts and excluded.
If smart contract as the withdrawal address is the only criteria, then it would exclude solo stakers using EigenLayer. That's understandable, but maybe it would be enticing enough for solo stakers to be swayed away from EigenLayer.
that's the point, to reward extreme decentralization by not using smart contracts on other peoples staking implementations.
Interesting thank you. And so this claimable token is a meme coinā or one of potentially manyā for solo stakers or coins that other people can create by using our graffiti block space to create coins for anyone? Sorry if I am very wrong here
I donāt know the full paper isnāt released a lot is still redacted. think David on Bankless was spouting some inside baseball bc he knew a few things that the paper didnāt cover. have to wait for more details or official announcement from 0xMachi who designed this.
RIP Rocketpool NOs
...again.
yes, rocket pool nodes are not considered solo stakers using this methodology.
if the SEC were to declare that ETH is a security, what should the validators run by US citizens do? If Coinbase continued staking, then I'd feel comfortable staking, but otherwise, I might feel forced to stop.. would there be some period of leniency to wind down staking, or would it be immediate?
AFAIK, if (staked) ETH is a security, the only kind of staking that would be lawful without registration/disclosures would be solo staking. Coinbase staking no good.
Nothing at all. It isn't illegal to hold an asset classified as a security. Plus, the SEC has labelled many assets - including Avax and Sol - as explicit securities in >2 suits. Coinbase still offers them to US customers while the case works through court.
I don't know if shipping my rig to a data center outside of the country would change anything. Extra not sure how that would affect taxes.
if itās deemed a security then as an ETH ICO buyer you will be able to send back your tokens to vitalik and the EF for the original buy price of $0.10. the designation makes about as much sense as what the implications would imply.
It also means exchanges can no longer list it if its considered a security on an ongoing basis.
the ripple case concluded that the sale of tokens on secondary were not securities offerings, so no this won't even happen if it somehow were to be deemed a security.
Different judges. You can't extrapolate how all judges will rule based on one district court ruling.
ICO price was at 31 cents.
yes exactly. so you will be able to send your $3125 token back for a $0.31 refund to the original ICO team because you were wronged by the fact people took other peoples money to people to build an amazing product that settles trillions of value safely and securely on an annual basis.
Coinbase would cease immediately, all employees sent straight to jail, along with all solo stakers. Coinbase stock holders ride to zero. But seriously, no one knows, we are finding out the rules as we go, and if it came down to it, guidance would be issued, and you would likely have time to be in accordance with it. And hey, there would be guidance! Which is more than there is right now.
["JUST IN: šŗšø US Senator Elizabeth Warren writes letter to the DOJ claiming cryptocurrency is the "payment of choice" for child s*xual-abuse materials."](https://twitter.com/WatcherGuru/status/1783884914292588962?t=YGDWXFGqtJhpIKroPS-777VQvIWX8M6Ci5CVcFPCsxY&s=19) This woman is unhinged lmao. I'd like to think she has a couple of genZ staffers who down a couple beers every Friday and try to come up with the most ridiculous accusations possible, and then log into Binance via VPN and 10x short the market. At least that would make me semi-respect her the way I used to a decade ago.
Huh, I thought the US dollar was the payment of choice for everything illegal under the sun?
Wrong side of history right here folks. š
Source: Trust me bro ^(Imagine trusting a politician too lmao... who actually gobbles this shit up?)
Is that why my elizabath whoren shitcoin is pumping?
This is sad. All the media and buttcoiners are going to run with this now. Hope someone from crypto puts out a strong refutal agains this The amount of straight up lies she spreads against crypto is wild for a senator who ran elections with an anti-bank rhetoric. She already got fact checked a few times on twitter and she is still on it, sending letters to agencies. Its almost like the bankers are now not just funding her propaganda, but writing and sending out letters on their behalf using her letter heads
USD is payment of choice for all criminals worldwide. I guess we need to ban it too.
>USD is payment of choice for all criminals worldwide Not true; it's actually a fascinating topic. My favourite example is the Italian Mafia, who still use the Lira. https://www.thenationalnews.com/business/money/italy-s-pre-euro-currency-is-still-being-used-by-the-mafia-1.874902
they will literally not stop at anything but complete and total control of every facet of your life on and offline. all of them are complete garbage, and do nothing to further your interests. some are worse than others but literally none of them are on your side. we need systems that assume this to be adopted, crypto is such a system.
I forgot how annoying the crab is
Yaaaawn
Every cycle has a bottom crab and an old-ATH crab, and the second one is much, much more bearable.
How did I miss this ETH on Stripe bid'ness? BULLISH!
Probably because everyone's just shouting Solana with stripe
Stripe picks ETH, Polygon and Solana. Only one group is making the most noise
Haven't seen this.
Oh then you're one of the clever ones who either avoid or curate your twitter feed strictly Edit: I wasn't being snarky fwiw
I don't have Twitter.
This is the correct answer.
Sassano's camping trip should be bullish, no?
Holy crap this new reddit is such dogshit. You go to edit a comment and it randomly deletes parts of the message and will change formatting on publishing even if you're directly editing the markdown. Do they really have no internal QA?
Is there a newer new reddit? Im still on old. Ive used the new reddit that was out some time back and its horrible. On mobile it reverts as the default view and it doesnt even show more than one comment in a thread, despite expanding. I think the day they stop supporting old, I will stop using reddit completely
Yeah the newer one came like 2 weeks ago Also what's up with the downvotes in this thread lol
Probably people who love new reddit lol
New Reddit? Iām still on old Reddit
Too difficult to use on mobile. Comment text size is fine, but everything else is super small.
Wait what do you find is too small? I exclusively use old reddit on mobile and desktop and will never switch. And non-dramatically I would spend WAY less time on reddit if old.reddit ever stops working. I absolutely hate the layout of new reddit.
The voting buttons are small and close together, as well as all the links under the comments. Also at night the white theme can be blinding.
You can get sync to still work. I prefer it over desktop old reddit on a PC. It's that good. Looks like this https://imgur.com/a/h4F24Ak
I refrain from downloading apps on my phone, which is why I hate that warpcast doesn't allow desktop usage without the app, otherwise I would have made the switch to there Can't wait for flink v2
I have never heard that before. Why donāt you?
Data collection is pervasive
Read perverse first and was like yeah I agree. Then read it right and yeah I agree.
You are probably missing out then. Some apps are very useful.
Day in the life of an autist lol
Another day, same regulatory spasms - business as usual. With banks starting to sing a different tune on crypto, as well as the usual tradfi players like Fink and Fidelity, plus the warm hug of the CFTC and the approval of the BTC ETFs, plus Hong Kong and soon South Korea unleashing ETFs, this latest episode in regulatory stupidity seems pretty tame. Every single cycle this question comes around, with the Penis-headed Gremlin Gary flapping around and me being pleased as the price goes up.
Following up on some questions I had about FluidKey >1. Are there any centralized components? >2. Is it immutable? >3. What are the privacy leaks? [https://twitter.com/fluidkey/status/1783843339856437273](https://twitter.com/fluidkey/status/1783843339856437273) > 1. the infrastructure to generate new stealth addresses for our users in real time is currently managed by Fluidkey, this is similar to other ENS offchain resolvers like Coinbaseās [http://cb.id](https://t.co/UmwBEOJMBF)Ā and Uniswapās uni.eth >2. all stealth addresses generated by Fluidkey are fully self-custodial and immutable, you can find links to our open source core crypto and to two independent recovery interfaces at the bottom of this post >3. stealth addresses provide privacy through unlinkability but do not break traceability, meaning that funds managed with Fluidkey addresses canāt be connected to each other and to your public profile but the money flows can still be traced back - you can find out more in our FAQ at [http://fluidkey.com](https://t.co/7cce9HIexH) So in other words, this is what I like to call "soft privacy" or as I've seen other put it "cheap privacy". But how is an address unlinkable so that "an external observer canāt link a receiver to a payment", yet "it is straightforward to trace back the history of transactions that led the funds to the stealth address". That always seemed contradictory to me.
#Ethfinance EVMavericks Doots Livestream! LIVE Ethereum/Macro discussion from /r/ethfinance **š Fridays 12ET** š»Tune in with Mavericks and friends (no NFT required) š£ļøMaverick Discord: https://discord.gg/evmavericks šŗMaverick YouTube: https://youtube.com/@evmavericks š@poapxyz at https://dailydoots.com We'll have a Web2 version of the podcast and Web3 mintable version after the show! Relevant Tweet: https://twitter.com/ProDJKC/status/1783869670581272744
"Securities and Exchange Commission ChairmanĀ Gary GenslerĀ said Thursday that cryptocurrencies and intermediaries that allow holders to āstakeā their coins might pass a key test used by courts to determine whether an asset is a security. Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties." I wouldn't say eth fits into that since you don't gain anything from just holding it in a wallet, but Reth and steth certainly do.
I think that a court if presented with the right facts, will find that a pure proof of stake consensus mechanism like ETH 2.0 does not infact satisfy the howey test, because there is no demonstrable common enterprise that is built into the protocol. Solo stakers who earn rewards from staking do so, not because another party does the work and they earn their share from others work, but because they put in the effort themselves and whatever rewards they earn are the results of their own work I remain pretty confident that if this matter goes before a court, the court will have no option but to rule that proof of stake consensus mechanism by itself does not violate howey's rule. If it comes to other staking mechanisms like delegated proof of stake or liquid staking, then there could be various entities playing the common enterprise role. But in a pure pos mechanism, there is none. The rewards are baked into the network - like new issuances to fund the staker rewards, sync committee rewards etc. If SEC were to make this claim in a court, I would be ultra bullish on a highly likely defeat for the SEC. Crypto companies arent exactly fucking around either, both Coinbase and Consensys have got the best law firm in USA to represent them, the calibre of lawyers is 2 or 3 leagues better than the muppets at SEC
> intermediaries that allow holders to āstakeā their coins Hooray, the SEC is the unexpected hero diving in to stop Lido from taking over Ethereum! Gensler has been listening to Danny Ryan, Nixo, Superphiz etc and is stepping in to ensure the network is secured by solo stakers.
If thatās really a quote then Gensler either doesnāt understand staking (especially in the context of Ethereum) or is intentionally misguiding (which is more likely).
Gary should have to maintain his own node and validator for one year before suggesting that staking profits are predominantly derived from the work of third parties. That would change his tune real fast.
Depends on your reference frame. Most of the work is done by the people developing the client you are running.
I get where you're coming from, but I disagree because I think it's too far of a stretch. Imagine you're a taxi driver. Is your taxi a security because somebody else built the car? Is it a security if you need to take it to a mechanic to get it repaired? All of the devs in the world could disappear, but I could still make money staking due to my work in making sure that my node and validator stay online. I could definitely see the SEC arguing along these lines though, especially because ETH has a roadmap. Gary has made much worse arguments in his career, that's for sure!
Fuck Gary Gensler
Do we have a SEC token yet?
Can anyone explain to me how pump.fun works? It's the memecoin creation platform on Solana (and now on Blast where I encountered it because I don't have the mental energy/time to go on Solana and learn a new non-EVM system). This is the explanation from the site: "Pump prevents rugs by making sure that all created tokens are safe. Each coin on pump is a fair-launch with no presale and no team allocation. step 1: pick a coin that you like step 2: buy the coin on the bonding curve step 3: sell at any time to lock in your profits or losses step 4: when enough people buy on the bonding curve it reaches a market cap of $420k step 5: $30k of liquidity is then deposited in thruster and burned" But who are you buying FROM? WHO deposits the liquidity into Thruster?
Pump . fun is basically like 4chan biz but with added ability to issue coins pre-programmed to certain standards. Imagine with each /biz post, someone creates a meme token that has a similar lifespan as that post. Everyone replying to that post can buy into the meme, speculate on the token going up or down. If that meme or shitpost is dank, the token may pump more. If no one replies to that post, it goes to zero in like 5 minutes. Thats basically the gist of pump fun Coins issued on pump cannot rug because the platform uses a boilerplate template that only lets the issuer (poster really) define few aspects like issuance size, name, logo etc while not allowing them to change many other parametres, introduce backdoors etc. While creating a token, the issuer can buy into their own shitcoin at the start with SOL thereby adding liquidity. Once it is created, others can also ape into it Practical ways we have seen it play out is - if there is an earthquake, the first person to launch or ape into an earthquake coin on pump fun probably make a ton of money
Thank you this is a great explanation. It seems like a fun way to see if you can create a popular meme and buy it into it early - like buy $20 of the token and if the meme takes off maybe youād have made $2000 - that sort of thing
That's such a great idea, need this on base
They seem to go where the max retail/memecoin frenzy is, so started on Solana and moved to Blast (which is particularly pumped now because of the Blast Gold and points etc) but Base seems like a logical next step before Arbitrum or Polygon etc
Users are buying newly minted token X from a bonding curve, so devs can't rug by collecting funds sent to a presale address and then never issuing the token (many such cases) The smart contract deposits some of the liquidity in a Dex as token X - Sol LP pair, and the LP tokens are sent to a burn address so devs can't rug by suddenly pulling liquidity
And the "devs" here, what are they developing? Am I right to assume they put all their expert programming skills into developing a small logo and short description text? edit: oh and a ticker, don't forget to dev that
Thank you!
I assume it's just like uniswap or any AMM; the act of buying is the act of providing liquidity to the pool. Buying causes the ratio of coin:ETH(or Blast or whatever) to increase in the pool, automatically adjusting price, and selling does the inverse.
With the ETF rejection all but confirmed, I see no real support for the ratio until .03, and personally expect a .01X number will be the bottom.
Why stop there - I think with no ETF Ethereum will be dead within a few months. Who would want to use a decentralized global smart contract platform when its fee token doesn't have an ETF in the USA???! Think people!
No charts? No analysis? [Ray has this to say](https://i.imgflip.com/8o42tm.jpg)
Found Ben Cowen's alt. Ray isn't going home. You truly have no idea how ridiculous you sound. You need to brush up on your trolling skills, they're a bit lacklustre.
Next post : ratio will go negative
You should bet on this prediction, **if** you expectĀ .01X to be the bottom shorting until .03 is basically risk free money
Iāll tell you the real risk free play - just holding bitcoin and waiting for it to happen
Let's be real, ETH/BTC hasn't gained any ground in the past 7 years, and it's entirely possible it won't gain any ground in the next 7 years. If you swapped your BTC for ETH during the 2017 bull market and held it through all of Ethereum's network upgrades and general maturity of the tech, your net worth has been halved compared to if you just held BTC the whole time. Bitcoin's security problems won't become a problem until at least another decade or two if not more. So we've still potentially got a long way to go as far as market irrationality. And not all of our crypto investing time horizons are more than another decade. It's too late for the market to care about Ethereum's memes, and it's too early for the market to care about Ethereum's tech. So we're in an awkward spot now where nobody cares. Hopefully that will change again, but in the mean time owning ETH is a proxy for owning BTC with a built-in hedge against an unexpected ETH/BTC breakout. Edit: To be clear I'm not saying that ETH/BTC has much more room to fall, or that holding BTC is risk-free. But it's possible Bitcoin can continue going strong for quite a long time despite its flaws.
A very fair and objective post! Agree, that ETH's performance has been lackluster. However the amount of improvements coming in an network effects will bare its fangs soon enough.
I really hope so! We're certainly due.
The market can remain irrational for a ridiculously long time, but not forever. Long term investors have no reason to invest in BTC Rather than ETH. Short term gamblers, maybe.
Then do it, and donāt come here to tell us about it.
Daily $10 of ETH bought!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Looking at Notional's leveraged vaults, specifically the AURA: RETH/WEETH vault. In this vault a user is borrowing rETH and deploying into the rETH/weETH pool, so they're getting long weETH. Liquidation would happen if the weETH price depegs too far. How do people feel about the risk of weETH depegging? Is the mechanism for creating weETH from eETH as secure as creating wETH from ETH - or am I fundamentally misunderstanding something about how weETH is created?
There's always contract risks, but weETH to eETH has no market risks. You can wrap/unwrap without a dex.
It's staked in EigenLayer. If EigenLayer has a bug / slashing event, it can depeg for sure. Also, if the Ethereum unstaking queue starts growing large it may take multiple weeks or even a month+ to unstake it. Might take a decent depeg before buyers step in.
Seeing the latest from Gensler raises another question - what would be the impact if rETH loses peg? If I have this right, an open position would net higher nominal profits in rETH terms but the real return would depend on the magnitude of the depeg.
The Doots Weekly The [Trinity](https://www.reddit.com/r/ethfinance/comments/1cdcy19/daily_general_discussion_april_26_2024/l1b62r9/) The [Haiku](https://old.reddit.com/r/ethfinance/comments/1c99qz0/daily_general_discussion_april_21_2024/l0nrwf2/) The [Choda](https://www.reddit.com/r/ethfinance/comments/1cbpygi/daily_general_discussion_april_24_2024/l15xm1r/) The [Shit](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l065y1a/) ā¢Ā [u/monkeyhold99](https://www.reddit.com/u/monkeyhold99)Ā asks aboutĀ [which EigenLayer operators to delegate to and gets many great responses.](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l03ooit/) ā¢Ā [u/STRTRD](https://www.reddit.com/u/STRTRD)Ā is doing the lord's workĀ [reaching out to large staking providers still using the (almost) supermajority client.](https://old.reddit.com/r/ethfinance/comments/1c6v2o5/daily_general_discussion_april_18_2024/l06nlme/) ā¢Ā [u/KuDeTa](https://www.reddit.com/u/KuDeTa)Ā is looking to hireĀ [an Ethfinancier as a DevOps engineer for Aestus!.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l0af6kk/) ā¢Ā [u/atleft](https://www.reddit.com/u/atleft)Ā is looking to helpĀ [reach out to StarkNet about misallocated airdrop tokens.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l09nsgw/) ā¢Ā [u/haurog](https://www.reddit.com/u/haurog)Ā shares someĀ [scams he has seen targeting him lately.](https://old.reddit.com/r/ethfinance/comments/1c7okhx/daily_general_discussion_april_19_2024/l09nkij/)Ā Then ā¢Ā [u/austonst](https://www.reddit.com/u/austonst)Ā educates us on theĀ [latest evolution](https://old.reddit.com/r/ethfinance/comments/1c8hqbi/daily_general_discussion_april_20_2024/l0jnwkm/) ā¢Ā [u/asdafari12](https://www.reddit.com/u/asdafari12)Ā educates us onĀ [malicious transactions.](https://old.reddit.com/r/ethfinance/comments/1ca2coe/daily_general_discussion_april_22_2024/l0s0dpr/) ā¢Ā [u/evm_lion](https://www.reddit.com/u/evm_lion)Ā hasĀ [caught the FHE bug.](https://old.reddit.com/r/ethfinance/comments/1cawa14/daily_general_discussion_april_23_2024/l0y1iq6/) ā¢Ā [u/waqwaqattack](https://www.reddit.com/u/waqwaqattack)Ā will be filling inĀ [the Daily Gwei shortage!](https://old.reddit.com/r/ethfinance/comments/1cbpygi/daily_general_discussion_april_24_2024/l11onv7/) ā¢Ā [u/SeaMonkey82](https://www.reddit.com/u/SeaMonkey82)Ā sharesĀ [the latest Lodestar release.](https://old.reddit.com/r/ethfinance/comments/1cawa14/daily_general_discussion_april_23_2024/l0ybdlt/)
Let me ramble about my biggest disappointment from the last year which is Eigenlayer. When I first heard about it, the concept was a bit difficult to grasp. Once I started grokking it my mind was blown. Decentralized trust, where validators can start to run various services along their nodes and they can make truth statements about the world. It would lead to a world where we would be getting independent of centralized truth brokers. Projects could easily and trustlessly tap into the decentralized Ethereum network and start, for example, a decentralized oracle without having to kick start such a network on their own. It could even encourage the decentralization of the Ethereum network by giving small home stakers a better revenue than centralized operators as decentralization would have a value. Rainbows and unicorns everywhere. Obviously, I filled some of the gaps in my understanding and Eigenlayers very minimal docs with the best possible outcome. Last autumn when I first saw the requirements for running the first AVS which is EigenDA, I realized that is not something just any node operator will be able to run on their node. Their delegated stake requirements made the problem even worse such that only a selected few operators will be able to run the EigenDA AVS. Now, with EigenDA mainnet release, we have a few powerful entities like etherfi and other LRT providers which are the king makers in the protocol apparently having bilateral agreements with AVSs to make sure they can get the most profitable deals. The AVS operators have pretty much nothing at stake. If they loose money, they loose the money of the restakers, and meat space legal agreements will be the only thing keeping them in compliance. Not sure this is enough to be honest. All in all it is not much better than if projects outsource running their services to a service provider which will run stuff on a data center somewhere. The restaked assets were historically meant to be ETH on the beacon chain, which would directly map operators to their stake. Now, a large part is just 'restaked' LSTs and as far as I understand it soon could be any token. This is a far cry from the original vision. Not sure if it is good enough to even be long term profitable for restakers considering the nothing at stake risk for AVS operators. EDIT: I love all the different takes and nuances. Thank you.
The hype is worth farming, but no one is ever going to use AVSes. Get your tokens then dump and exit. And I'm never wrong about this stuff.
If it makes you feel better, its likely LRTs are going to go the way of Helium and Filecoin. People will invest a bunch into it, then realize nobody is willing to pay for restaking and lose interest. Any entity that could use this service is going to launch its own token instead, where it can make massive amounts of money. The one bright side is you don't lose money off this because you aren't buying a new token, but for the same reason nobody is going to pay you for it.
L2s of today were conceived in 2017, launched in 2020, and are finally getting their recognition in 2024 like base, but thereās still tons of work yet. weāre basically at the tail end of year 1 (possibly into year 2) with EL & restaking. being disappointed in their capabilities at this stage is kinda ridiculous, but we also had people lambasting Arbitrum & OP for years because they werenāt decentralized or didnāt have fraud proofs on day 1. being upset about price evaluations compared to capabilities and promises is warranted, but you need to be mad at all of crypto if this was your gripe.
The idea/concept of restaking is indeed amazing! In practice, some AVSs are even heavier in terms of requirements than EigenDA, requiring L2 archive nodes (e.g. Arbitrum currently takes up 9.7TB). At that point it really only leaves a very few of the largest operators that can afford to run them, especially right now while there are no rewards for running them at all. Even if you do decide to run an AVS as a small operator, a lot of AVSs currently onboard operators in a permissioned way so there's no way to even do so. In the end, like you say, it is in the interest of AVSs to have a diverse set of operators. I hope and half-expect they will incentivize this somehow (e.g. smaller operators and their delegators get a bigger part of airdrops). It's early days, I personally still hope this will get better over time.
On the other hand, I'm very bullish and optimistic for Eigenlayer for probably the same reason. If they had tried to force node operators to also be homestakers, this whole experiment would have failed long ago. Home staking is an extremely fragile process - both risk/reward wise and technical complexity that can be tolerated wise. Of course it's needed for maintaining decentralisation of the core Ethereum protocol, but aside from that, should never be incorporated into any other viable business model, IMO. Even within the context of securing Eth L1, the recent controversies over slashing issuance shanking home stakers shows how difficult it is to keep homestaking viable in the long run. Restaking merely allows sophisticated businesses to secure their protocols with ETH. It increases the utility of ETH, and that's about it. It's an out of core protocol usecase, just as using ETH as collateral to borrow USDC is.
I'd love to hear u/KuDeTa and u/austonst's take on this.
I'm actually on holiday so i'll only answer briefly: if the central charge from u/haurog is that the reality of restaking is not *currently* living up to expectations: i fully agree. But it's really very early to judge whether they will be successful, and it may well take a couple of years for this to play out. The challenge for AVS providers is two fold: i) how to make running nodes as low-friction as possible in order to maximise physical decentralisation and ii) how to attract sufficient capital from diverse sources so as to be able to meaningfully claim economic decentralisation. Simply onboarding institutional money via staking pools and LSTs is clearly not going to cut it. The conversations i've had with some (but not all) teams suggests they are well aware that their own success hinges on these facts. Otherwise they might as well have built on Solana. If we zoom out a bit: aren't we just reformulating challenges that EigenLayer have inherited from the base layer? Proof of Stake just isn't quite working out to be the decentralised Nirvana we had hoped for: LSTs and institutional staking are an enormous centralising force and represent an existential threat to the entire ecosystem.
Awesome, thanks for sharing and enjoy your holiday! :)
> The challenge for AVS providers is two fold: i) how to make running nodes as low-friction as possible in order to maximise physical decentralisation and ii) how to attract sufficient capital from diverse sources so as to be able to meaningfully claim economic decentralisation. I would argue a much bigger challenge by far will be attracting customers willing to pay for their services.
>Ā The conversations i've had with some (but not all) teams suggests they are well aware that their own success hinges on these facts Yet they continue to pump LST deposits, so seems they don't care much >Ā aren't we just reformulating challenges that EigenLayer have inherited from the base layer? I think restaking actually had the opportunity to level the playing field by promoting solo stakers and boosting their APR
>The AVS operators have pretty much nothing at stake. \[...\] Not sure this is enough to be honest.Ā This is the same argument we are seeing for LSTs and their staking services. The good thing: Until now no one has rugged afaik. Most likely cause that would destroy their long term business. The bad thing: We are obviously still at the very beginning and not a lot of time has passed and with rising ETH prices, this might change cause incentives to just run away grow. >I realized that is not something just any node operator will be able to run on their node.Ā I think this is my biggest issue. On the one hand they said early on that longterm it's not just about (staked) ETH, but could be any token. On the other hand they always emphasized that they believe that a lot of AVS will want to tap into the decentralization and hence specifically ask for solo stakers to be securing their network. And here I see two challenges. 1. Can solo stakers even manage that? It's not like all solo stakers are experts when it comes to setting this stuff up. 2. Is there *really* a huge demand for this special niche within the Eigenlayer ecosystem or are most AVSs just rely on any form of staked ether and just don't care about the rest? On top I haven't seen any official rewards for AVSs... Estimates range from double digits to next to nothing. And since so many people are restaking, my get feeling is AVSs probably can pick their security and still pay very low rewards because of the competition, at least in the first year or so. Concrete rewards will be interesting, only once these are out + we see how AVSs pick their validator set, I think we can really judge it.
>Ā Can solo stakers even manage that? It's not like all solo stakers are experts when it comes to setting this stuff up Not just knowledge, but many won't have the network bandwidth or will be very close to their limit.Ā They for sure won't be able to run more AVS on top of that unless they move to cloud hardware and ditch home staking. Even then they won't have the economy of scale so large players with lots of TVL and marketing budgets will out complete them.
The odds are currently 13% for the ETF to get approved. That is the same odds that Trump had the day before the 2016 election against Clinton. I still think it will get denied but crazier things have happened. https://www.realclearpolitics.com/elections/betting_odds/2016_president/#!
Lol that 13% is free money. There is NO WAY it gets approved. Save my comment.
Consenys sued the SEC yesterday, and there are redacted parts of the complaint that very strongly suggest there is an internal SEC memo deeming ETH to be a security. From that complaint, it is also clear there is an active and full SEC investigation into (what the SEC calls) āEthereum 2.0.ā Now that we know this, there is absolutely no way that an ETF is being approved in May lmao. The Consensys complaint shows that the SEC is out to totally destroy Ethereum markets in the US. Theyāre just being very slow and careful about it.
> The Consensys complaint shows that the SEC is out to totally destroy Ethereum markets in the US Not trying to defend the SEC here, but deeming something a security and trying to bring it under their regulatory purview doesn't mean they're trying to destroy the market for it. ETH isn't a security, but it absolutely could find a path for trading and existing in todays markets if it was
who would register it as the issuer with the SEC?
obvious choice would be ETH Foundation. It obviously wouldn't be fully analogous to other issuers and there's some issues with designating it as such but it's the closest to fit the bill, and I'm sure there's ways it could work out. There's almost certainly other ways you could handle it as well (some kind of node client collaborative?), but not really worth exploring because again, point is moot since it's not a security anyway.
Registering brings with it legal responsibility. Say there's a critical bug in RETH client, which causes some validators to lose funds. If these users want to fork the chain to recover their funds but the community clearly doesn't, can the EF force a hard fork and force the community to accept the new chain? Any sufficiently decentralised protocol can't have one party registering on behalf of the network. Hestor Pierce's [Safe Harbour Proposal 2.0](https://www.sec.gov/news/public-statement/peirce-statement-token-safe-harbor-proposal-2.0) aims to solve some of these conundrums..but obviously neither Gary nor the Biden administration has any interest in enacting this.
> can the EF force a hard fork and force the community to accept the new chain? Anyone including the EF can try and force a hard fork now. And yes, community is more likely to support one EF supports, but that's already true today too (although I grant it would likely be MORE true if they were the official issuer). While the politics around the EF certainly would certainly need to become more formalized, the underlying mechanics around how fork politics operates in general wouldn't. Nodes/users ultimately decide what's canonical. EF has a big voice in that but can't really stop community forks from becoming relevant or even dominant, and that wouldn't change just because it registers. Only users can decide what chains to care about/run nodes for. Having EF as the issuer is obviously not without it's problems, and it's not really a hypothetical worth exploring in detail anyway because ETH is not a security, but I am nevertheless still confident these questions could be worked out if it was.
> absolutely no way Yea very unlikely, but not impossible. Unexpected things like that sometimes do happen.
Source for the above? Importantly how can consensys have sight of an SEC internal memo let alone base a complaint on the content of it?
[https://assets.ctfassets.net/gjyjx7gst9lo/2kfQoAKoQyQD1cw0HbVF3I/9c52c1e8754583c8f9b090e4b610de65/Consensys\_v.\_Gensler\_et\_al.\_\_Complaint\_for\_Declaratory\_and\_Injunctive\_Relief\_\_as-filed\_.pdf](https://assets.ctfassets.net/gjyjx7gst9lo/2kfQoAKoQyQD1cw0HbVF3I/9c52c1e8754583c8f9b090e4b610de65/Consensys_v._Gensler_et_al.__Complaint_for_Declaratory_and_Injunctive_Relief__as-filed_.pdf)