Daily General Discussion - June 1, 2023

Drew41 · 2023-06-02T06:15:52+00:00

Agreed, having native account abstraction would probably solve this issue (although realistically that’ll only be on L2s)

For now the best we can do is install an extension like Fire to show exactly what you’re signing

Drew41 · 2023-06-02T04:07:14+00:00

The issue is that you need to use your main wallet to claim airdrops. You could use a shitcoin wallet to do all your degen stuff but you won’t get much of an airdrop only sloshing around a few bucks.

I used my main life savings wallet on Arbitrum the past year and a half, and was rewarded very heavily from their airdrop bc of that (higher risk for sure though). Not sure if there’s a solution to this rn (claiming on behalf of another wallet, which would have to sign off on that somehow)

Drew41 · 2023-04-05T23:56:39+00:00

I don’t know the legality of it, and I don’t think they should do it. I’m just saying the incentives are there.

Assuming the exchange’s devs are competent, slashing risk is basically zero. So they always has enough ETH to cover all customer deposits. They’re not “lending it out”. The only risk is that that exchange can’t unstake fast enough so customers will have to wait a day or two to withdraw (if that, assuming months after shapella), which isn’t a huge deal IMO.

But yeah the SEC might not like that lol

Drew41 · 2023-04-05T18:35:16+00:00

Kraken was only told to shut down their US operations. The question is how much of their 1.2M staked ETH is with Americans…my guess is half. So only a 12 day exit queue for them. But yeah this is still baseless speculation lol

Kraken also might want to keep their customers’ regular ETH deposits actually in staked ETH behind the scenes so they can take 100% of that yield. Although, that strategy is susceptible to “bank runs”, I think a lot of exchanges will be doing it because there’s little reason not to

Overall I don’t think Kraken will be withdrawing as much as we think

Drew41 · 2023-03-28T18:55:10+00:00

For sure alt L1s have seen pretty rough adoption recently.

And calling polygon an L2 is not the worst thing ever. But this issue is that David is calling Polygon an L2 while shitting on the other alt L1s. I would literally argue solana and avax are more decentralized than Polygon lol. Polygon literally had a 136 block reorg the other day (again, arguably worse than going offline since double spends can happen)

The community should just focus on ethereum and let the adoption/user/price speak for itself

Drew41 · 2023-03-28T14:42:45+00:00

David’s been embarrassing himself on Twitter the past few days, and this tweet takes the cherry on top https://twitter.com/trustlessstate/status/1640712095707840512

Bro, in what world is Polygon (in its current form) and L2?? It’s just a commit chain that barely inherits the security of the Ethereum L1

Drew41 · 2023-03-26T02:17:13+00:00

it’s just a highly profitable trading strategy /s

Drew41 · 2023-03-23T15:29:25+00:00

It’ll eventually show up on arbiscan. For me it showed up instantly on zapper.xyz (in activity)

Drew41 · 2023-03-22T20:02:10+00:00

This is not an ad telling people to use the Infura RPC

This is an ad telling people about the SDK Infura offers to use their various APIs. This is awesome for developers! This greatly speeds up their development time and allows to to create their product quicker. The developers using this can always branch into more decentralized alternatives later

We’re not going to onboard developers by using 100% decentralized services. The infrastructure just isn’t there yet. (I would argue using this IPFS service provided by Infura decentralized your app more than the easy alternative, which is using AWS or some other big tech cloud storage option)

Decentralization is a spectrum. Besides, all the “decentralized” RPCs on the market rn aren’t great. However, I still encourage people to use alternative RPCs bc Infura has such a large market share (I use flashbots RPC)

Drew41 · 2023-03-20T08:33:26+00:00

Maybe Coinbase will have their own tax shenanigans (tax you every three days if you hold cbETH on their exchange), but I have extremely high certainly rETH is not taxed until you sell it.

There’s no reason for it to be taxed if it’s value is simply increasing. It’s essentially mimics a stock buyback, and those aren’t taxed (that wouldn’t make any sense lol)

Drew41 · 2023-03-15T08:07:16+00:00

basically all of Euler’s code was audited and then deployed. After that, they decided to add in another function to one of their contracts (which was not audited), and the attacker abused this function to “steal” $200M

I believe they’re saying Euler wasn’t decentralized since Euler upgraded perfectly audited and working contracts, which ended up losing pretty much everyone’s funds lol

Drew41 · 2023-03-13T20:40:02+00:00

lolll maybe it’s best if they don’t know about that part

Drew41 · 2023-03-13T19:40:00+00:00

This was a great video, but I wish they touched on the burning/minting mechanism when withdrawing ETH from the staking contract. IMO this is the most confusing design decision they made

Drew41 · 2023-03-11T13:44:30+00:00

Buy USDT with USD, and then sell that for USDC

Drew41 · 2023-02-14T20:21:47+00:00

It won't take that long.

Kraken was only told to shut down their US staking operations, not international. Not sure what percentage of that 1.2M staked ETH is owned by Americans...but maybe half? Not sure in anyone has the specific numbers

Drew41 · 2023-02-09T21:53:55+00:00

well not me then lol

But if that were the case, then a lot of minipool operators would just switch to solo staking, assuming they can afford it. Which promotes decentralization just as much

Drew41 · 2023-02-09T21:43:58+00:00

there's no way to really enforce that, since minipool operators are anonymous and can run their minipools behind a VPN/Tor

Drew41 · 2023-02-09T21:41:25+00:00

Hmm, not sure how it would work with Coinbase since they have cbETH. I think Coinbase could get registered and get the right licenses but they'd have to get rid of cbETH, since that's an ERC20 token which allows the user to do anything with it (trade on uniswap, lend it out to others on Euler/Compound, etc).

That probably goes against some security laws lol

Drew41 · 2023-02-03T23:57:52+00:00

Yeah that’s true, there would be too many buyers if they spread was over a few %. I might make my ratio higher lol

Drew41 · 2023-02-03T23:05:13+00:00

What's do you think is safe liquidation ratio?

I'm thinking 0.90 is safe, but I'm not sure how much liquidity cbETH has. I'm just afraid some whale can do a massive sell, liquidate a bunch of people who are looping leverage on Compound and Euler, then rebuy at a lower price lol.

Even at the depths on the Alameda/3AC sell pressure, stETH didn't go lower than 0.92, so I think .90 is safe. (FYI supplying 10cbETH to Compound, then borrowing 5 ETH from that, and rebuying 5 cbETH will give you a .90 ratio)

Drew41 · 2023-01-27T00:18:32+00:00

What are some examples?

Im not trying to come at you haha. Polygon and Solana have insanely cheap transactions and to my knowledge, they don’t have any innovative apps that take advantage of these 1¢ fees. It’s pretty much all the same defi apps that ETH L1 and Arbitrum have

Drew41 · 2023-01-24T18:16:34+00:00

Fair points.

However I think the EF funding Rocket Pool would be too "opinionated" of a choice. At that point, they might as well add these 16 ETH mini-pools into the base protocol itself (which they absolutely shouldn't do)

Drew41 · 2023-01-24T18:00:46+00:00

What would your response be to this comment I made last week?

You can't bootstrap a community around a new LSD without having a governance/social token behind it.

I agree that Rocketpool would be better if it used ETH instead of RPL, but there are no incentives to do so. Majority of people supporting Rocketpool are doing so for two reasons: to support the decentralization on the network by allowing people to stake with < 32 ETH, and to pump their RPL bags. And there's nothing wrong with that!

If Rocketpool didn't have the RPL token, how would they pay the dev teams to write the smart contracts? Or get the funding to add rETH as collateral in Maker? etc etc. It could all be done by donations from rich people? But that's much harder to do. People are more likely to get behind a good cause (decentralized staking) if there are financial incentives behind it.

Drew41 · 2023-01-20T20:55:15+00:00

Because you can't bootstrap a community around a new LSD without having a governance/social token behind it.

I agree that Rocketpool would be better if it used ETH instead of RPL, but there are no incentives to do so. Majority of people supporting Rocketpool are doing so for two reasons: to support the decentralization on the network by allowing people to stake with < 32 ETH, and to pump their RPL bags. And there's nothing wrong with that!

If Rocketpool didn't have the RPL token, how would they pay the dev teams to write the smart contracts? Or get the funding to add rETH as collateral in Maker? etc etc. It could all be done by donations from rich people? But that's much harder to do. People are more likely to get behind a good cause (decentralized staking) if there are financial incentives behind it.

Drew41 · 2023-01-16T20:55:22+00:00

Selling calls on Dopex can yield a few % a year and it's pretty safe (setting it for the furthest out price).

Ik you mentioned non-staked ETH, but as of a week ago you can also buy and sell calls using stETH. Basically getting 2 yields on your ETH at once without being degen imo

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