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    Ethereum Weekly Discussion Thread

    August 30, 2021

    Ethereum Weekly Discussion Thread

    Weekly Discussion Thread

    Posted: 29 Aug 2021 11:00 PM PDT

    Welcome to the Weekly Discussion. Please read the disclaimer, guidelines, and rules before participating.

    Disclaimer:

    Though karma rules still apply, moderation is less active on this thread than on the rest of the sub. Therefore, consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources.

    Rules:

    • All sub rules apply in this thread.
    • Discussion topics must be related to Ethereum.
    • Behave with civility and politeness. Do not use offensive, racist or homophobic language.
    • Comments will be sorted by newest first.

    Useful Links:

    Reminder

    /r/ethereum is a community for discussing the technology, news, applications and community of Ethereum. Discussion of the Ether price or trading is not allowed. Please keep those discussions to /r/ethfinance and /r/ethstaker.

    submitted by /u/AutoModerator
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    r/ethereum experiment - from the mods

    Posted: 30 Aug 2021 06:28 AM PDT

    The following post was written by u/insomniasexx with input from the other mods

    Hello /r/ethereum,

    We hear you and we agree that our subreddit could be better. The content could be better. The community could be better. The discourse could be better. It could be a better representation of Ethereum as a whole.

    For background, modding /r/Ethereum feels, at times, like walking on eggshells. Is removing this post the right choice? Is leaving this post up the right choice? Are we biased because we know the poster or don't know the poster? Are we going to get a rage-filled message tomorrow because we removed this? We do our best to fall back on the letter of the posted rules… but that often results in opting to not remove posts that aren't explicitly prohibited or, worse, we end up removing posts that are technically against the rules but resulted in a good conversation.

    We want to re-invigorate this community. And after growing sentiment was passionately vocalized here and on Twitter over the past few weeks, we're going to do an experiment for the next few weeks. This experiment starts today. Don't freak out though—if this experiment makes things worse, we will revert the changes fast. 🥳

    Feel free to chime in with anything you think could and should be better about this subreddit. We simply ask that you aim for constructive comments—don't only point at the things that are horrifically wrong, please.

    After the experiment is done, we'll publish and pin a post that will act as a public retrospective on the good, the bad, the ugly, and how we want to push this subreddit forward. Mods will be participating in this conversation as well as individuals. Because, surprise, the group of moderators even has differing perspectives on what is best.

    —-

    The New Game

    For the next few weeks we're going to throw out the existing rules, which is basically a list of what not to post, and instead aim for what we want this subreddit to be. The overarching "rule" which will determine if we remove or approve or don't take action on a post/comment will now be: does it encourage relevant, productive, meaningful discourse? That's it.

    It doesn't necessarily have to be successful in generating productive, meaningful discourse–only that it encourages it. Attacking people? Not productive. Talking shit about people/coins? Not productive. Shitposting? Not productive. Original meme thing that resonates deeply and sparks a discussion? Leave it be. Asking whether ETH will moon tomorrow? Not productive. Dreaming about ETH on the moon while speculating on how the network's security will evolve because of that price change? Sounds… really good, actually. Dropping an image of your dog's poop that looks just like the Ethereum logo? No thanks. Trying to sell it as an NFT? … Dude, stop.

    We theorize that this model will result in more leniency for text posts and questions over mediocre news links. Posts with deep discussions in the comments will be given even more leeway, even if the headline is a bit suspect. We think both of these would be a positive change—it encourages community discourse over a wall of links. It also means that links that may or may not be shameless self-promotion spam with no comments can be removed with far less hesitation. Those who want to self-promo may have to put a bit of effort into showing they are really trying to add to this community rather than just drive-by link spamming all the crypto subreddits.

    We also theorize this method will allow us to moderate content that dances on the edge of the current rules without fear of the tedious arguments that often ensue when we remove a post.

    Lastly, note that removing all existing rules means that, technically speaking, mining and price discussion is no longer prohibited. We urge you to 1) not shitpost all over and 2) do your best to avoid making the price/mining the primary focal point of your commentary or discussion. For example, discussing the impact $100k ETH may have on staking so long as the discussion is more about staking than the fact ETH will be @ $100k.

    —-

    We aren't removing all structure

    To maintain baseline sanity, the following core rules are in place to maintain some hard lines in the sand. The above gives you more flexibility in posting and reporting and us more flexibility in modding. The below is so that we're crystal clear on the stuff that's not up for debate.

    Rules:

    1. No shilling other coins/networks. No shitting on other coins/networks. Tangential discussion of other coins/networks in general is allowed, but we don't want blatant shilling/hating of other networks.
    2. No giveaways. No ICOs. No airdrops.
    3. No blogspam or shameless self promotion or drive-by posting. Basically: if you want to use /r/ethereum to get clicks, don't. Engage more. Your post should be primarily for the benefit of others not because other's clicking your spam benefits you.
    4. No personal attacks, name calling, slurs, racism, misogyny, etc.
    5. No doxxing, posting people's PII, etc.
    6. No scams. No malware or phishing links.
    7. All the reddit-wide rules.

    —-

    Now that that is out of the way, here's the second half of our exciting experiment!

    We're going to set up some AMAs with kickass Ethereum leaders, builders, and whoever you think would be fun to collectively interrogate via an internet forum! And, we need YOUR help!

    We'll made a separate thread where anyone can drop a comment with:

    1. The name of a (Ethereum-relevant) person you'd like to see an AMA from
    2. A question you would ask them

    Once there's a bit of demand showing in that thread, we'll work our butts off to set up an AMA with the most upvoted folks ASAP.

    Questions? Comments? Concerns? Make yourself heard. Otherwise, jump right in and make this subreddit what you want it to be.

    submitted by /u/trent_vanepps
    [link] [comments]

    6% of Ethereum is Now Staked in Ethereum 2.0

    Posted: 30 Aug 2021 11:01 AM PDT

    https://bobosandwojaks.com/6-of-ethereum-is-now-staked-in-ethereum-2-0/

    The Ethereum network recently passed a new staking milestone. On August 17, the Ethereum 2.0 staking contract surpassed Wrapped Ether as the single largest holder of Ether (ETH) (WETH).

    submitted by /u/KarmaEnlightened
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    This Is Why We Have to Stand Our Ground. The Treasury Department Is Working to Add Even More Crypto Reporting Requirements Under the $3.5T Budget Reconciliation Package

    Posted: 30 Aug 2021 05:00 PM PDT

    Arbitrum One FAQ

    Posted: 30 Aug 2021 05:24 AM PDT

    Arbitrum One, in my opinion, is the most important smart contract platform release since Ethereum in 2015. Here are some details.

    What is Arbitrum One?

    Arbitrum One is a smart contract chain. It's just like Ethereum, has similar security properties to Ethereum, except it's much faster and cheaper.

    If you want to dive into the technical details, Arbitrum One is an optimistic rollup. Here's a great video explaining how optimistic rollups work. For an even deeper dive, see Inside Arbitrum. For the normie user, this doesn't matter. All you need to know is it's a faster and cheaper version of Ethereum.

    What's the difference between Arbitrum and Arbitrum One?

    Arbitrum is the brand, Arbitrum One is a specific rollup chain. Reddit will have their own chain using Arbitrum technology.

    How fast is Arbitrum One?

    Transactions confirm within a second, so as close to instant as you can get! Really, most of this is latency is between your internet connection and Arbitrum One.

    How cheap is Arbitrum One?

    Gas fees will be anywhere typically between 90%-95% cheaper than Ethereum. So, if a transaction costs $20 on Ethereum, it'll cost anywhere between $0.40 and $2 on Arbitrum One. The exact number will depend on the type of transaction and the gas prices on Ethereum. As Arbitrum One matures, fees will lower over time.

    Boo! That's not cheap enough!

    I hear you. While 90+% cheaper than Ethereum is a tremendous improvement, and will be cheap enough for many, many more users, it's not enough for everyone.

    Some may be wanting transaction fees in the $0.01 range. This will happen as Arbitrum One matures, and data shards release on Ethereum. It'll take a couple of years to realize the vision for global scale.

    In the here and now, you'll have to use a sidechain like Polygon PoS - but be aware that it's far, far less secure or decentralized than Arbitrum One or Ethereum, so what you save in fees, you pay for in security. We will also see intermediate solutions over the coming months like validiums e.g. zkPorter and Immutable X, which offer sidechain-like fees, but far better security.

    When can I use Arbitrum One?

    August 31st!

    How do I use Arbitrum One?

    The same way use Ethereum! If you have used Ethereum sidechains like Binance Smart Chain, Polygon PoS, or Avalanche, you'll know exactly how this works.

    The Arbitrum One Portal will be a great place to get started.

    Go to Arbitrum (ETH) Blockchain Explorer (arbiscan.io) - which is the Etherscan for Arbitrum. At the bottom, you'll see "Add Arbitrum Network". This will add Arbitrum One to the web3 wallet of your choice (e.g. MetaMask). From there, you use the same address as you do on Ethereum, the same wallets, same everything.

    Alternatively, the web UIs for your favourite dApps will also likely have options to switch to Arbitrum. For example, Uniswap has a guide for Optimism, something very similar will be live for Arbitrum One too.

    How do I send my tokens to Arbitrum One?

    You can bridge your tokens to Arbitrum One using the default gateway.

    In addition, you will have multiple liquidity bridges like Hop Protocol, Celer cBridge, Connext and Biconomy that will not only allow you to bridge tokens between Ethereum, but also other chains like Polygon, Optimistic Ethereum etc.

    Furthermore, major CEXs like OKEx, Huobi and Coinbase have committed to offer direct withdrawals to Arbitrum One. So, you'll never have to use Ethereum and can totally bypass the high fees there! Of course, it'll take some time for all of this infrastructure to mature, but it's happening.

    What can I use on Arbitrum One?

    One of the reasons I call Arbitrum One the most important smart contract chain release since Ethereum is because of its expansive developer adoption. Most of the bluechip projects - Uniswap, Chainlink, Maker, Aave, Curve - you'll find them on Arbitrum One from day 1! There are over 400 projects set to release on Arbitrum One, with many more live over the coming weeks. Nowhere will you see such a vibrant ecosystem of top tier dApps outside of Ethereum itself.

    How do I pay fees on Arbitrum One?

    You pay fees in ETH! No friction, no needing to buy a random token to pay fees.

    OK, sounds good, but I can't find Arbitrum on Coingecko?

    Arbitrum does not have a token. You just use ETH. I presume this is why it's so underhyped and underrated.

    What are the caveats?

    Long term, there's only one major caveat - withdrawing your tokens from Arbitrum back to Ethereum takes 7 days. However, you can easily use the liquidity bridges or CEXs to withdraw instantly. It's not suitable for NFTs, though - we'll see NFTs adopted on zkRollups like zkSync, Immutable X and Loopring instead which don't have this caveat. In the future, I expect Arbitrum will also offer zkRollup solutions.

    Short term, there are many caveats that you must be aware of. Arbitrum One is launching with multiple training wheels - there are multiple centralized aspects to Arbitrum One, chiefly upgradable L1 contracts and centralized sequencer. It's also cutting-edge tech, and there may be bugs and vulnerabilities. Only ape in with money you're willing to lose. However, all of these will be mitigated in the coming months as Arbitrum's top priority is progressive decentralization and general protocol maturity.

    Bonus questions:

    What if Arbitrum One is congested? (by u/newtosh, u/fiah84)

    Arbitrum One uses an EIP-1559-like mechanism, where the transaction fees will start rising if it gets congested.

    Running another fast chain like Arbitrum One can't be very cheap, do you know how offchain labs plans to monetize it? (by u/fiah84)

    When Arbitrum One scales past Ethereum, it'll definitely be much more expensive to run an Arbitrum One node than Ethereum. Fortunately, because it leverages Ethereum's security, it's acceptable for Arbitrum One to be more expensive as you need much fewer nodes running (one honest sequencer and one honest validator is enough, but for resilience there'll be a few dozen, instead of thousands). End users can always verify directly from Ethereum - as all the transaction data is present in compressed form. Long-term, they can also use techniques like state expiry / regenesis to keep their nodes running efficiently - there's always a fallback state available for reconstruction from Ethereum.

    As for monetization, when you pay transaction fees on Arbitrum, a portion of it goes to Arbitrum, the rest is paid to Ethereum for security and data availability. That's how the network monetizes itself. Also, I'll note that Offchain Labs are working on decentralizing Arbitrum One, so the transaction fees will go to the network - sequencers and validators, possibly even a treasury - not just Offchain Labs. The exact mechanism for how the revenues will be decided as the network decentralizes.

    So fees will go to validators and other machines that help run the chain. Will it be possible to set up and run servers for profit and supporting the arbitrum chain? (by u/pikag)

    For the first part, see above. Without going into too many details, yes, you'll be able to run sequencers once decentralized, though the details are pending. Also, there are validators, but these are specialized roles quite unlike validators on L1s. You can read about the details here.

    Is this a centralized or decentralized solution? What happens when Arbitrum as an org, goes under? (by u/benaffleks)

    In the short term, it's a semi-de/centralized solution. However, this is entirely due to it being brand new tech, and training wheels required.

    Offchain Labs is focused on progressive decentralization, so in the future, it'll be a fully decentralized solution. Even if Arbitrum One fails, as a decentralized solution, you can still exit with your funds directly from Ethereum L1 - this is why we say it's materially as secure as Ethereum.

    Given that the sequencer will be centralized at release, isn't there a risk that Arbitrum do not process certain transactions like withdrawals and your funds get stuck? (by u/ZougTheBest)

    Different rollups have different exit mechanisms if the sequencer censors you. Arbitrum was initially designed without a sequencer model - it was actually one of the last things to be added. As a result, Arbitrum has one of the simplest ways to exit: you can bypass the sequencer and submit your transactions directly to the regular inbox.

    Can you build a rollup on top of a rollup? Could this make cheaper transactions in case sharding never happens? (u/Datacruncha)

    No, but you can have multiple rollups in parallel. There's a reason why it's called Arbitrum One! Indeed, next up will be Arbitrum Reddit - or whatever they call it. This won't reduce transaction fees significantly overall. What will is massively greater data availability on Ethereum when data shards release, as covered above.

    With all these rollups competing there is going to be fractured liquidity among them right? Any solution to this? (by u/Phenozd)

    Yes, but in reality, the situation is nuanced. The lower fees and higher transaction throughput will simply onboard new users and new liquidity that didn't exist before, so it's a net gain. Multiple projects are working hard on interoperability between rollups, and we have brilliant solutions like dAMM being developed that lets zkRollups share liquidity! Note: dAMM won't work with Arbitrum One - only zkRs.

    ---

    If there are any more questions, feel free to ask, I'll add them in here to the best of my knowledge! I am not affiliated with Offchain Labs and Arbitrum in any way, so please correct me if I'm wrong anywhere.

    PS: Everything I write is in the public domain - feel free to share, repost, adapt as you please. I'll only post this on r/ethereum and my blog - the rest is fair game!

    submitted by /u/Liberosist
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    Defi Governance Endgame

    Posted: 30 Aug 2021 05:40 PM PDT

    I was encouraged to make this its own thread. This is going to be a rant about the unfortunate end state of Defi if we continue along our current trajectory. The fundamental issue is that we're using money for Sybil resistance. Simply using governance tokens as a vote count makes money correlate super-linearly to influence. Vitalk recently wrote about this problem and it has been bubbling on my mind for some time. So let's start with the basics, how we got here, where we will end up if we don't course correct, where we want to be instead, and things we need to build to get there.

    Going back to basics, we need to reach consensus. We do this by voting amongst a set of peers whom are unwilling or unable to collude with one another to dishonest ends. Why are they unable to collude? Well, if they collude in public others will rally against them. As a memetic schelling point, fucking over dishonest actors that are attacking the system is tried and true classic (see ETC). So, to conspire effectively, they have to do so in secret. However, as the number of peers in a conspiracy grows it becomes exponentially more likely that a leak will occur. This creates a game theory scenario that makes it profitable and safe to be honest and risky to be dishonest. The more peers you have the better this system functions.

    In a blockchain, you inherit the problem of Sybil resistance. Addresses are free. So how do you ensure that all voters are unique peers? Bitcoin uses proof of work to answer this. With proof of work you get voting proportional to the cost invested in your vote. Once you vote, that investment is gone. To offset these costs your vote comes with a lottery ticket and occasionally you win the lottery so the expected value of participating is positive. The actual source of Sybil resistance is money. Proof of resources invested in a vote that can't be faked.

    Proof of stake reuses this capital based notion of Sybil resistance. Rather than your investment being lost with every vote though your investment is reused from vote to vote which makes the system more capital efficient. However, it's still money proportional to influence.

    Governance tokens basically just extend the ideas of proof of stake. Starting with the food token craze, every project today seems to need to launch a governance token. Without it, there isn't enough marketing power. Outside of some notable L2's people just don't have enough reason to care about your new thing amongst the thousand other things happening in Ethereum unless there is money to be made. A governance token distribution gets people to market their bags. This is all fine and well until it comes time to actually use those tokens for voting. Then several problems arise.

    The first problem is voter apathy. When only 20-30% of the tokens are voting it gives outsized influence to whales. Most projects today don't directly reward voting. Even if voting doesn't take gas it still takes time and Defi is already past the limit of human attention if you want to be informed and vote on every project. There's just too much going on. Clearly if active voters are a required component of an ecosystem they need to be incentivized directly. This goes against pure buyback + make/burn philosophy of Maker and argues in favor of systems like Kyber that explicitly direct profits to voters.

    The second problem has to do with coordination amongst a large number of peers. It's an age-old problem that technology has helped with but not perfectly solved. You can't feasibly have thousands of people in a meeting with an open mic. Active voices have to be throttled or every meeting will just turn into twitch chat and the system can't function at all. So how, do we throttle it? Often by voting weight. You get a handful of the most influential players in a room and talk about the most important issues of the day. This creates tiers of users though; those with a mic and those without. If these tiers are defined using money, even indirectly, then those with money have a categorically different amount of power than those without. Not just proportionally more influence, not just on another scale, but entirely new types of influence. If I donate $10 to a senator I get an automated thank you email; if I donate $10M to a senator I get direct personal access. Using governance tokens as we do leads to using money as a filter for tiers of power.

    Getting political for a moment, I'm not suggesting a world where everyone has an equal say in everything. We live in a world today where we can't agree on basic facts even when ignorance is literally a matter of life and death and people are dying by the millions. We need a system that directs influence to those with knowledge and good intention and money is at least partially effective at this. However, each necessary participant in an ecosystem should have and retain influence. An incentive system should not allow the influence of any necessary actor to entropy to zero over time.

    This comes down to wealth inequality and wealth accumulation. These are at historically dangerous levels and accelerating every year. In historic times this was about when French heads started to roll. I doubt that kind of reset is viable today. The wealthy, at least the type I'm talking about, are no longer country locked, reachable in any material sense by a mob, or really accountable in just about any way for the evils they do.

    Outside of just the top sub point-something percent the real wealth of the world is controlled by institutions. This capital is granted the rights of people while being effectively international, immortal, unjailable, and legally beholden to short term shareholder profits above all else. It is a dangerous recipe. They write the laws in their favor. They can manipulate and endanger global economies and and are not accountable for the harm they cause. Even when they get caught and convicted in court they pay a few days worth of their profit in a fine and continue on with business as usual. The wealth gap is staggering. I really can't bold that enough. The gap is staggering, and growing every day.

    If you are thinking that Defi is going to change that, think again. While Defi has democratized access to the financial system, the opportunities it provides still require capital. Once the regulatory clarity for institutional custody and voting procedures have been established these players will own crypto. Many already do and are aggressively hiring crypto capable talent. Wealth inequality is here to stay and it's only getting worse. If we tie influence to capital, we set ourselves up for a rather dystopian future. Whatever cypher-punk anarchist utopian visions crypto founders had, we aren't heading there unless we correct our course. So what can be done? Vitalik has several answers to this in his post. I'd like to build on a few of them and offer something of a vision for a possible future.

    The first has to do with a different solution to Sybil resistance than money. While I'm aware of projects like proof of humanity and BrightID I don't think a social solution can't be eventually gamed. This problem exists today on reddit with bot networks that create a new account, post some repeatable meme, and then upvote themselves to bootstrap their account past the Turing test level. It's an endless cat and mouse game like spam filtering. In the long term I think we'll see a bunch of Legos taking the form of things like POAPs, some on chain history oracles, social attestation systems, and implicit KYC systems such as being whitelisted by Nexus Mutual and others. While no Lego is perfect the combination of them will be sufficient to enable systems like quadratic funding to function. This can reduce the influence of capital to alone to something resembling a logarithmic function rather than a super-linear one. I'm working on one such Lego personally.

    Next, we need a standard delegation mechanism across Defi like xToken provides but tied to celebrity rather than "economic mandate" which is just too abstract to answer every governance vote. Delegation systems allow informed, public participants to rise in influence above their personal capital. I want to be able to shop for my representative to each project, delegate to them, and split the voting profits with them. Obviously this requires that more projects begin directly tying rewards to voter participation but I think this is inevitable. xToken is currently the frontrunner on a standard delegation platform but they can't support a representative system at the moment because they can't fragment the liquidity of each xToken. Either they'll need to crack that underlying problem or another platform will come along eventually and replace them. As a bagholder I hope it's the former.

    Lastly, we need a good pattern for reputation systems that interplay with voting influence. If governance tokens represent monetary influence then reputation is inalienable (perhaps decaying) influence. Reputation would be earned against some combination of objective functions that each project could define. Maybe someone can build some type of pluggable oracle that maintains reputation scores for each project on an L2 which could integrate into snapshot. The details on this need a lot more thought. How are those objective functions defined? Is your monetary influence capped somehow by your reputation? Is there any way of discouraging people from "selling" their reputation by incentivized delegation? How do you solve the nothing at stake problem for those voting with reputation? It's a complicated topic that needs a lot more work but I agree with Vitalik that we need to move past straight token voting and this is one of the most straightforward ways to do so.

    Self-serving link.

    submitted by /u/LogrisTheBard
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    Polymarket shows 61% probability that the floor price of CryptoPunks will be above 100 ETH by October

    Posted: 30 Aug 2021 10:29 AM PDT

    What if pokemon go became nft focused and pokecoins were an erc-20?

    Posted: 29 Aug 2021 09:59 PM PDT

    What are your thoughts on this? Feasible? Awesome? :D

    Pokemon caught would be nfts basically

    submitted by /u/Baconlawlz
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    Ethereum Miners Balances Have Tripled in the Past 4 Weeks, Now Closing In On a 3-Year High

    Posted: 30 Aug 2021 12:30 PM PDT

    I just got this text from my grandma and feel bad cause I don’t really know how to explain crypto to her with her getting confused ��

    Posted: 30 Aug 2021 08:09 PM PDT

    Video Guide: Bridge Assets From Ethereum To Polygon

    Posted: 30 Aug 2021 06:16 AM PDT

    Hey guys!
    I've made a new video tutorial that will help you learn how to bridge and transfer our assets from the Ethereum chain to the Polygon (Matic) POS Chain.
    You can bridge almost any asset using the POS polygon bridge.
    Basically, your tokens will get burned on the Etheruem blockchain and right after will be minted on the Polygon chain.
    Then you will be able to use the new tokens on the Polygon Chain in and decentralized app that you will want!

    ​

    Here is the video tutorial:

    https://youtu.be/k-1Ozh0rVVs

    Let me know if you have any questions :)

    Johnny.

    submitted by /u/sheetsjohn16
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    I don't like this one bit

    Posted: 30 Aug 2021 08:13 PM PDT

    Habbo Hotel

    Posted: 30 Aug 2021 01:16 PM PDT

    Please tell me someone is building ETH Habbo Hotel equivalent.

    submitted by /u/Mission-Special3523
    [link] [comments]

    Over $400 Million Worth of ETH Now Burned by Ethereum EIP-1559

    Posted: 29 Aug 2021 10:01 PM PDT

    Nick.eth estimation whether EIP-1559 helped reducing the overpayments

    Posted: 30 Aug 2021 12:27 AM PDT

    Nick.eth estimation whether EIP-1559 helped reducing the overpayments

    "Has 1559 reduced over-spending on gas fees? I used BigQuery to try and find out. First, we need to define overspend; my working definition is the difference between the gas price the user paid and the lowest nonzero gas price in that block (or 1 GWEI, whichever is higher).

    Multiply that by the gas used and sum it per day and you have the total overpayment to miners. Express it as a ratio of total gas and you have a factor - so 2.0 would imply people are paying twice as much as required to get their transactions included.

    So, has EIP-1559 helped reduce the overspend factor? You be the judge. See if you can pick where on the chart it was introduced.

    ​

    overpayment ratio

    find it particularly interesting to note that it dropped sharply when the fork happened even though most transactions were still legacy transactions - probably because the base fee provides a good price oracle even if you're sending a legacy TX! "

    ​

    src: twitter

    submitted by /u/hegedis
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    Why Can I only Stake 0.1 ETH? On Binance, I have a little over 1 ETH. But, It is only letting me stake 1 ETH. Why is this?

    Posted: 30 Aug 2021 08:17 PM PDT

    A V3 approach to concentrated range with minimal IL

    Posted: 30 Aug 2021 04:26 PM PDT

    A V3 approach to concentrated range with minimal IL

    I had written an article on the subject, but in the spirit of not clickfarming and trying to stir interesting convos here, figured I'd describe it here.

    What's Uniswap V2

    A simple proposition where users provide 50/50 liquidity of two assets.If X goes up relative to Y, it sells X for Y.If X goes down relative to Y, it sells Y for X.You always buy the falling asset with the rising asset and earn fees on the way, profiting from volatility.

    Users provide liquidity proportionally to the entire curve, but most of the capital is sitting idle reserved for distant prices

    And Uniswap V3

    Now you can concentrate liquidity by providing liquidity to a subsection of the price curve. This means that you earn greater fees relative to capital committed because less capital is reserved for distant sections of the curve.

    However...

    Since uniswap always buys the falling asset, when X falls below range, you hold 100% of X. When X moons beyond the upper range bound, you hold 100% of Y. This means you face much stronger exposure to changes in price than a V2.

    Thus putting the same amount of capital in a smaller range increase the risk to that capital.

    So what is this approach and how does it help

    I'm calling it Rolling Hills. Lets say you have 1000 units of liquidity.In V2, 10 units would be in volatility range earning fees, 990 are stagnant.

    In V3, you could put 1000 units in the same range as the 10 earning fees in V2, but then you have much higher risk of IL.

    Instead use V3 for the 10 units of liquidity v2 would have in range, and farm the remaining assets elsewhere. V3's capital efficiency does not require concentrating capital, but does allow for a lower capital commitment.

    A key benefit here is rotations. If the price of X exits the V3 range below your range bound, you need to sell X for Y to reenter the pool. Even if you enter 100% X buying up from a lower price than your previous range bound, you end up selling at a lower price than before and incurring IL.

    Thus rotating capital in from elsewhere can actually cause gains.

    ![img](37umfd9zvkk71 "Stage 1 ")

    Stage 2

    With a small range, if it exits range with ETH rising, will leave the pool in all DAI. To reenter must sell DAI for ETH. If price returns to previous price, you will have less value than had you not rotated. With a Rolling Hills approach, if price returns to previous, you'd have more value than had you not rotated.

    Stage 3

    The same is true in reverse. A falling price means a small range exits all ETH. It sells ETH for DAI, and if price returns to stage 2 price, would have less value than had they not rotated. However the rolling hills strategy would return to stage 2 price with more value than had it not rotated.

    It appears using a broader perspective of a position and allowing it to have three states, X to be farmed, Y to be farmed and X:Y V3 LP in narrow range, can allow you to mimic the IL risk of V2 or Larger ranges, while minimizing capital committed to V3.

    TDLR:

    Instead of concentrating liquidity, commit less capital and use the freed up capital to earn elsewhere. Rotate external capital in, instead of rotating V3 capital when a V3 position falls out of range.

    submitted by /u/BlockEnthusiast
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    What's a good Token Economics and Investment?

    Posted: 30 Aug 2021 07:19 PM PDT

    General Conclusion

    In this episode, we interview Arthur Cheong, a DeFi investor. He's on Twitter as Arthur_0x. From the perspective of an investor, who invests in tokens and token projects, we uncover what makes a good token economics so that investors are interested in investing in that. He also shared his top 3 projects with good token economics, opinions on yield farming and advise when designing tokens.

    1. What makes a good token?

    Number 1 factor is that there must be concrete value accrual or value capture. What does it mean? Tokens have something that is worthy for you to invest. The most popular token is Bitcoin. Bitcoin is investable because you can think of it as digital gold. It is a store of value because people believe that there is a scarcity in supply and (hence) value. The value did pretty well over the last 10 years and also has shown to be the most reliable token. So bitcoin is investable because it is a good store of value over the medium to long term.

    Store of value comes from a very huge network effect. If you are like Litecoin or other smaller crypto, you will struggle to be a good store of value because money has a very huge network effect. It's just like USD. They have huge network effect. When you are using it, you are less likely to use other smaller currencies as your day to day transaction, be it your international commerce, and also financial activities. Most are denominated in USD. It is the same for crypto.

    Beyond money, the other investable tokens are some tokens that give you some sort of value capture, like some claim to the cash flow, either through a direct reward distribution or have some sort of buyback and burn mechanism.

    These are the one that make it a good token.

    2. Summary of Good Token Economics

    (1) it is able to tokenise the economic value accrued by the network so that it can be distributed to the users and the community. Because at the end of the day, one of the principle is that decetralisation also means equality or distribution of power to the community and users of the community.

    (2) there has to be very clear value accrual or value capture. Either within the ecosystem or compared to alternatives or options outside the ecosystem and off-chain solutions.

    (3) token is not just a one-off asset or thing to have one objective, which is probably a store of value. But a token has a lot of other use cases that needs to be tapped on like a way to bootstrap the ecosystem. It's more than just one objective that the token serves, but it has a lot more secondary and tertiary objectives that a token has to serve. To maximise the usage of the token, to maximise the existence of tokens in the ecosystem.

    3. If you can have one advice that you can give to token designers or economic designers, what would you give?

    To summarise, that would be one to know your competitive advantage of using a token as opposed to the traditional market where no tokens are being used because that is where the strength of tokenisation lies.

    The second is to use tokens to its utmost advantage, to explore and leverage all the benefits that tokens can bring. It can be incentivising, reputation building, etc.

    And lastly is absolutely find product market fit. Tokens are not a magic pill. It's not Jack and the Beanstalk, when you have the pill or the beans and you can grow a beautiful solution to eradicate you from poverty. Tokens are really just a means to an end. Tokens are not an end to itself. Tokens can only help to accelerate growth if there is something about growing. That means, this product has good product market fit, that is much better than the alternatives in the space. People are willing to use it, to test it, to try it.

    TLDR:

    Tokens are not a magic pill that will solve all issues. Know your competitive advantage of using a token and exploit all the advantages that tokens can bring to your ecosystem. It is more than just a simple store of value — not every token is bitcoin.

    submitted by /u/economicsdesign
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    The history of DeFi on Ethereum

    Posted: 30 Aug 2021 10:50 AM PDT

    Apeboard. Personally the best tracker across multiple functional blockchains.

    Posted: 30 Aug 2021 01:55 PM PDT

    It's been a couple of months since I have been using defi applications, and with that comes a reliance to track assets across multiple chains, and I was struggling with that bit. I used to use delta app to track my portfolio, which was not very useful with defi.

    Came across multiple trackers r/defi, and found Ape Board to be the one. Adding public keys to various chains, it was able to share outlook like projected interest accumulation that defi applications are strangely missing.

    It is able to share details on my assets on eth, avax, matic on one pane. It supports many other blockchains of course but those are the ones that I am using. Having a single pane is a huge part of defi journey. WOOF!!

    The application does not have native apps on mobile or desktop, but I used edge browser to add the site as an application and it's working well. While profile creation is not required, it offers many qol improvements. Here's the link https://apeboard.finance/dashboard

    If you are using something else that you find better than this app, would love to do a test drive.

    submitted by /u/xprnvd
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    What are Keeper bots? How can they automate your smart contracts? [1:29]

    Posted: 30 Aug 2021 04:10 PM PDT

    Immutable X: Meet the First Layer 2 Scaling Solution for NFTs on Ethereum

    Posted: 30 Aug 2021 09:21 AM PDT

    Scale or Die - The Daily Gwei #323

    Posted: 30 Aug 2021 09:11 AM PDT

    Why Ethereum NFT Whales are Obsessed With the Number Eight

    Posted: 30 Aug 2021 09:35 AM PDT

    I need some advice and guidance

    Posted: 30 Aug 2021 03:22 PM PDT

    These last couple of months have been pretty surreal, and i have been insanely blessed. I now sit on >32 ETH, which i know is the minimum to set up a node for staking. Im not really sure on how to set this node up though.

    And also, in case i want to sell off some eth or just do any trades w it, can i do that?

    submitted by /u/Crypto-Noob20
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    Problem transferring from Polygon to Ethereum Mainnet. I need help!

    Posted: 30 Aug 2021 01:11 PM PDT

    Hi, I think I screwed up by doing things without doing proper research.

    So I've been mining on Ethermine for some months, and everything was going fine (each month they moved the eth that I'd mine to my Metamask automatically). A few days ago I was waiting for them to give me my eht, but nothing was happening, turns out Ethermine had changed their payout policy. I go on to read it and find that they recommended smaller miners to switch to the Polygon option. Me, without knowing what I was doing, changed the option.

    I go back to Ethermine and see that I had no unpaid balance, but that it also wasn't on my Metamask wallet so I start to freak out but ended up finding it on Polygon (which I still don't fully understand what it its). I keep reading Ethermine's payout policy and find a guide to connect Metamask to Polygon (which I think was outdated because it said to name the connection "Matic Mainnet" instead of "Polygon").

    Now, when using the bridge I'm trying to transfer 0.015 Eth to my wallet, but when I do the price of the estimation of the total gas required is absurd, before it was something like 84 dollars, and now it says $1444.

    I need help. What do I do? Anything would be appreciated.

    submitted by /u/felipe_martin2002
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    If I have under 32 ETH can I stake it anywhere right now?

    Posted: 30 Aug 2021 08:12 PM PDT

    Can't be Binance because i'm canadian.

    submitted by /u/recentlyadults
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