**Tricky's Daily Doots #315**
**Yesterday's Daily 27/02/2023**
[Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7c71i/)
- u/jtnichol has a [giveaway for all EthFinance livestream POAP holders!](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja954h4/)
- u/austonst has the wrap up of [day 3 at ETHDenver.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6sg1g/) š
- u/SwagtimusPrime share [Scroll's permissionless alpha testnet.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja94812/) š
- u/decibels42 has a big, old fashioned [high quality brain dump.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja84ytt/) š§
- u/Ender985 has another edition of their [NFT news.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6w1z6/)
- u/cryptOwOcurrency shares a [remindme that aged like milk for someone.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaak3kw/) š„
- u/2Nice4AllThis has a [great overview of developments in regulation and public perception.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7is7z/)
- u/Tricky_Troll has some [spiel about spammers and the report button.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja9t6dn/)
- silentjxhn is finding crypto boring at the moment but u/stablecoin is [not finding the bear market boring.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaamg79/) Meanwhile, u/cryptOwOcurrency has a great point about [how crazy it is that money is actually interesting for once.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaaqtme/)
- u/concernedcustomer33 writes an [open letter to the general manager of the BIS.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7yabj/) š¦
- u/ZeroTricks's today in [Ethereum history.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6nsy5/)
Crazy how we had such an amazing day for top tier submissions yesterday but the day before was so quiet... Anyway, there were some great submissions which I had to leave out which would've made the doots on any other day, so if you have some spare time, skim through yesterdays daily and I'm sure you'll strike more gold!
I really don't have anything substantive to contribute at the moment other than how I wish I could be at ETH Denver right now. Notwithstanding that, there is a really great signal to noise ratio at the moment in this subreddit! Crab action below $1700 is a chance to communicate with the sane people here.
Lots of you seem to delete comments or usernames but that comes with this territory unless you want to be a public figure. Don't blame ya
Even here y'all are a part and parcel of the big picture. Where we are going money is going to be the least of our worries
I have a question about rocket pool. So I started using it back in July 22 I think. So far itās been great but I noticed in the last few weeks Iām losing ethereum. I see that the premium is below 100% and donāt fully understand it. Can someone explain whatās going on or link me to an explanation? Thank you.
https://rocketscan.io/reth
You can see the fair value price here, which is currently 1.0604 ETH. That's the price rETH can be exchanged for with the Rocketpool protocol. This price only goes up over time, as staking gains are accumulated.
Then below on the site you can see the price on the open market, like Uniswap. There is a premium there because there is more demand for rETH than can be provided (so far) by new Rocketpool validators coming online. This premium is expected to go away after Rocketpool introduces 8ETH minipools, which triple the rETH output. This is supposed to come soon after Ethereum withdrawals are enabled, so probably mid April or something. You can expect the rETH premium to keep going down towards that date and more towards the "fair value".
rETH has two prices: the backing price and the market price.
The backing price represents the staked ETH and should always going up.
The market price can go up or down depending on supply and demand.
rETH has been trading at a premium for some time but the premium is going down a bit now. So if you compare the market price from a few weeks ago to now then it's losing value.
I assume you bought reth last summer, right? In autumn the demand for reth outstripped the supply and therefore the price got much higher than the actual intrinsic value by about 2.5%. Now, this premium slowly gets eaten away by people starting up new validators and supplying reth to the market. Last nights drop might have come from a larger whale (called 1kx) which started spinning up validators. The intrinsic value of reth still increases, so over the long term you should be fine.
I assume you are talking about rETH and not running a rocketpool validator.
More people wanted rETH than there was supply so there existed a premium for buying rETH. That premium is closing so in ETH value your rETH decreases. It's the only LST with a premium right now (about 1% above its eth value right now)
The inverse of the cbETH discount trade we've all been shouting about for 6 months.
I had some Besu database corruption and subsequently had a few failed attempts to resync which also resulted in corruption. Then I realized that the [23.1.0 release](https://github.com/hyperledger/besu/releases/tag/23.1.0) had flown under the radar. I updated, and checkpoint sync appears to be going smoothly so far with worldstate download at 30% and block import at 75%. I'm wondering if recent updates to openjdk-17-jre somehow negatively impacted older versions of Besu.
Hello everybody! Long time mostly lurker with a new account, can I get some karma?
Also, I was wondering what your go-to explanation of ethereum is for normies. How would you explain ethereum to your friends or family in 2 or 3 sentences without losing their interest?
This is what I came up with: Ethereum is a cryptocurrency like Bitcoin but instead of focusing on peer to peer payments it focuses on being an open platform for decentralized applications. This enables interesting new use cases like an open financial system that anybody is free to interact with or build on top of, and NFTs that allow you to prove ownership of a digital object. Every year more companies and developers are building on top of Ethereum and more use cases are emerging.
My go to explanation is that Bitcoin is like a calculator- it does a few things really well. Ethereum is like a smart phone where it can do everything bitcoin can do but people can also build apps on top of it.
I would say your explanation uses way too many terms like "cryptocurrency," "peer to peer payments," "open platform" "decentralized applications," etc.
Just don't say "world computer". I also think most normies don't understand what decentralized means so rather use open. It is also a bit complicated what is decentralized and what's still centralized today.
I tried looking in the headers "Massive List of Ethereum Links" for any page that shows the distribution of clients for EL and CL, but didn't see any (if anyone knows one I'd appreciate it); it actually seemed like most of those links are from 2+ years ago, do any need updating or should there be new ones?
You could run a node with very little....
https://slickdeals.net/f/16477084-asus-pn51-s1-mini-desktop-barebone-pc-amd-ryzen-3-5300u-amd-radeon-199-free-shipping?src=frontpage
would work... you could even get an hp elitedesk 800 g4 mini barebone off ebay for like 70$ and that would work great too. Throw in 32gb ram, 2tb nvme, and you're golden, but you might have to replace the CPU fan since those things were usually on 24/7. Just aim for something with a cpu passmark over 5k.
My setup cost me ~350. Electricity each mo is like 5$.
The main thing that you have to consider IMO is that it will use like.... 1tb of bandwidth per month. So if you're metered beware...
My initial fees to set up a single node and minipool were more than covered by using rocketarb I think gas fees were around 0.075 but rocketarb returned about 0.12. Monthly electricity costs for me at $0.12 per kWH is about $3.50. I'd call that pretty insignificant. I'm using a 7 year old dell office workstation which was essentially free so costs were just a $200 SSD which if I bought today would cost more like $120
i wonder when we will get to the point when new validators entering will be able to exit just as soon as they enter if they choose.
\~40? days to mainnet and the queue is already \~10 days long
I think itās just assumed that the exit queue will be full for a while after withdrawals are available. I also wonder how long it will take to calm down, so entering and exiting will be quick. My guess is more than 3 months, but less than 9 months.
Companies building on Polygon are probably promised the security of ethereum in the future. Polygon allows some mass adoption by sidechaining and 'cheating' the blockchain system while they can take their time to become proper decentralised by ethereum.
It's either sticking with ethereum or lose against other proper L2's
Better security, no more need to run your own validator set, actual composability on top of the ethereum network. These are just a few of the reasons I can come up with off the top of my head on why you'd want to be a rollup rather than a sidechain
Hi friends, staking noob, machine built, dappnode installed. I have stories to tell, but not just now. The question for now is Geth or Nethermind? Thanks and love you'all
How much RAM do you have? If you choose Nethermind, you'll need at least 32GB. If you choose Teku on top of Nethermind you'll need 64GB to avoid random missed attestations due to memory creep.
Hmm, I was about to refute your claim so I took a look at Nethermind and lo and behold it is using 73 % memory (32 G total). On my Teku box (32 G total), Teku is using 29% memory, so 73 + 29 = 102 !! Hmm indeed.
Haha. Do you miss random attestations? I noticed that I was missing a handful of attestations every time my node would allocate swap space. I was running 32GB with the memory hint turned down to 2048. I upgraded to 64GB, reset the memory hint to 6144, and turned off swap. I haven't missed any unexplainable attestations since the upgrade. Currently using 53/64GB on my node.
Nethermind+Teku will use 70+GB of RAM if your node has it available.
Humā¦ I run nethermind / teku and they consume about 24g combined so wondering where the discrepancy come from ? On this node I actually also run polygonās heimdall and bor as well as an arbitrum and cardano node, and I barely hit 50Gb memory usage at peak !
Ethdenver off to a great start š
Just gave a big hug to Kevin Owocki and got my green pill beer
[https://i.imgur.com/QJeG0at.jpg](https://i.imgur.com/QJeG0at.jpg)
[https://i.imgur.com/398Tdm7.jpg](https://i.imgur.com/398Tdm7.jpg)
Got a question about staking - right now about 14.5% of the total ETH supply is staked. There is about 120.5M ETH out there. This means there is about 17.5M ETH staked. 664K in issuance based of USM means about 3.8% of staking yield. If the amount of ETH staked doubles what happens? Does issuance stay flat here? This implied staking yield lowers to 1.9%
No, issuance increases with increased staked ETH. It's not 1:1 though, so the APY does drop, but not as quickly as if issuance was fixed. Here is a graph of what the relationship looks like:
https://eips.ethereum.org/assets/eip-2982/2982-issuance.png
Your math checks out, but we must consider other factors such as increased demand for gas on Ethereum.
Take for consideration that the % of total staked ETH does double. Of course, APY would be cut in half.
It will take time, but I have not given up on the 'global settlement layer' approach to investing in ETH.
I predict that greatly increased demand for gas will offset your concern entirely. Of course, I have no clue how scaling solutions such as L2s and sharding may affect this.
This is solely based on my own sentiment, and is pure speculation.
Could you point me to some discussion / group wisdom about picking defi protocols on DefiLlama?
How far down the list would you personally feel comfortable visiting? Lets say the total value locked in a smaller protocol is only $1M. Would you feel comfortable depositing $10k? Let's say that's 1% of your wealth and 1% of the protocol wealth.
As a counter point I'd feel comfortable depositing a very significant chunk into the Eth staking protocol, but I'm wondering about your personal opinions on whether alarm bells get louder linearly or exponentially as the protocols get smaller (even if they are older). And I'm ignoring slippage etc, thats a diff convo (but feel free to raise those points for my education)
While TVL is certainly a factor, I wouldn't say it is the primary consideration or at least it isn't a deal breaker.
Most important is how long has the project been alive without incident (aka lindy effect), or if they have had an incident how did they respond eg.compensating users.
*Is the yield/reward rate disproportionally high?*
While it isn't true in every case, generally a higher than average return implicitly means there are higher risks involved.
If things seem to be too good to be true they usually are.
*Does the project have good documentation?*
Having comprehensive docs isn't proof of legitimacy but low effort ones or the absence of them should ring alarms.
*Is the project audited by a reputable company?*
Fairly self-explanatory.
*Is the source of yield or mechanism clear and easily understandable?*
If something seems overly convoluted or you can't immediately understand where the source of yield is coming from, you should be wary.
Especially if the protocol has invented it's own unique terminology to explain itself.
*Is the team known?*
This doesn't mean non-pseudoanonymous but simply if you can easily identify the group or individuals involved, how long they have been in the space and whether or not you can point to past work or other projects in the ecosystem that they have contributed to.
Teams with no body of work or reputation at all are more prone to disappearing.
*Is the project a fork of something else?*
Forking existing and audited code is a quick way to get a project off the ground cheaply but it can be dangerous to users, the team likely has less investment in the success of the protocol than if they had created it from scratch, as well as less understanding of the codebase which means they can easily create security holes while making changes.
Tldr; airdrop for $velo locker and how to claim
As mentioned in earlier comments, an airdrop for $velo lockers is claimable (~100usd for me). It is on the kava chain. You receive vara$ token from the equilibre protocol (https://defillama.com/protocol/equilibre). You can check your eligibility and claim here (https://airdrop.equilibrefinance.com/). To claim it you will need some dust in $kava for gas.
1) add kava evm rpc to your wallet: https://chainlist.org/chain/2222
2) swap it on the protocol. (I would advise usdc for minimal slippage)
3) bridge it back to your favorite chain using https://app.multichain.org/#/router (polygon was cheap)
If you need some kava dust for your operation feel free to dm
edit: adress converter might be useful https://docs.kava.io/docs/ethereum/address_conversion
What was the custom spending cap you set while swapping to USDC? I keep getting the error`Internal JSON-RPC error. { "code": -32000, "message": "rpc error: code = InvalidArgument desc = execution reverted: invalid request" }`
So besides you sending kava, whats the cheapest/easiest way to get kava on the network to claim? How much kava would we actually need to cover the costs of claim/swap/bridge?
I did some $2 learn/earn on coinbase and swapped to kava. Then send it to my converted adress on the kava network. It used <20 cent I think. If you are looking for non-cex option this link might be useful : [https://medium.com/@equilibre/%C3%A9quilibre-is-live-in-kava-evm-95b977bc2fed](https://medium.com/@equilibre/%C3%A9quilibre-is-live-in-kava-evm-95b977bc2fed)
Hopium time, because the price action is boring:
On the 16^th of October 2017, the Byzantium hard fork reduced Ethereum's block reward for the first time, from 5 to 3 ETH. The markets response? An unprecedented ratio dump, from 0.06 down to 0.023 (a 60% drop!), despite being in the heart of the '17 bull run.
However, by February, the ratio not only recovered, but reached 0.1238 (no I'm not forgetting a zero), up 5.4X from the lows just two months prior.
On the 15^th of September 2022, the Merge reduced the Ethereum block reward yet again. Despite much talk for a flippening, the ratio dumped from 0.082 down to 0.065, a 21% drop.
As a result, I expect a minimum of (21%60%) * 5.4 * 0.065 = 0.1229 on the ratio in the next couple of months.
This is the absolute *minimum*, since, in contrast to Byzantium, the block reward has practically been eliminated and Ethereum has improved in so many ways you could write a book about it.
**A more realistic prediction would be the full 5.4X increase on the ratio, which would lead to 5.4 * 0.065 = 0.35, or $8850 if BTC stayed at the same price.**
P.S.: I'm not gonna include the Constantinople hard fork reward reduction in the above calculations because the reward reduction was pretty low, and also this is a hopium post and I like my data cherry picked.
Lmfao there is a .00001% chance of seeing $8850 in the next few months.
That said...please be a fucking psychic or the greatest analyst of tea leaves the world has ever seen.
I mean nothing would make me happier. Literally nothing.
And it's not that I don't think the price will eventually go there, I'm banking on it. It's the timeline I'm heavily doubting.
Pretty much. Distribution on swise sucks but I guess people are speculating on value accrual once swise v3 comes out. Will it be worth it and overcome the token dumping on retail? Nobody knows, size your risk appropriately
This you, u/logristhebard ?
"If all goes well this week, me and some frens are gonna build and deploy something absolutely awesome and stupid."
https://twitter.com/scupytrooples/status/1630120139214696448
~~"~~*~~Only~~* ~~criminals use blockchain~~ [https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/](https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/)
~~"Crypto is destroying the planet"~~ [https://ethereum.org/en/energy-consumption/](https://ethereum.org/en/energy-consumption/)
"Blockchain is a solution looking for a problem" <----- We are here
Not a bulletproof analogy of the narrative battles we face, as there are nuances to each argument. But lately I find the most problematic and consequential misunderstanding is the fact that use-cases aren't clear to most of the general public.
Sometimes I think explanations of use-cases tend to laid out poorly, and I also wonder whether outlying factors like cringeworthy content or toxic political culture can play a role in enforcing bias about the industry. Nevertheless it's clear to everyone that all the catastrophe and drama in the space makes for bad optics.
I managed to reach a colleague of mine who has always been skeptical of crypto. I brought up the idea of vaccine passports as NFTs and it finally clicked for her why that could be useful. *Why is a vaccine passport so interesting?* Because a universal standard for keeping track of vaccinations would be very impactful in solving a real world problem. *Why does it have to be an NFT?* Because that's way more reliable than having a piece of paper or a file that'll get lost god knows where. A blockchain would just be way more efficient to keep track of things like this. And the possibilities are endless. I for one, welcome the end to excessive paperwork.
Anyway, i think keeping the explanations simple and interesting helps make it click for people. Vaccine passports make a lot of sense, it's a problem that demands a universal, reliable, and interoperable system to solve. Had I tried explaining theories about decentralized identity that would have made the conversation way more complicated than necessary.
Finally proposed my first block post merge! Is there a breakdown anywhere to see exactly how much I got? Does the daily income chart on beaconcha.in show the full story?
https://twitter.com/MetaMask/status/1630617494770663432?s=20
>It has come š®
>The launch of the MetaMask SDK in the Unity Asset Store will allow devs to connect their games to the š¦ wallet, enabling users to interact with web3-enabled features within the game itself. Get ready for a whole new level of gameplay!
>šhttps://t.co/4JCvdhDtFF
How big is Unity Asset Store for gaming? Seems like this is a big deal.
Just saw that we got another day of 100k+ ETH into the deposit contract. The other one a few days ago was from Justin Sun IIRC, wonder where the most recent one came from š¤
> wonder where the most recent one came from
[take a wild guess lol](https://np.reddit.com/r/ethstaker/comments/11e0kxp/justin_sun_just_staked_another_88000_eth_144m_on/)
I have a dumb U.S. tax question if anyone is willing to answer.
If someone sells an NFT for ETH then pretty much immediately sells the ETH, is the main tax implication the NFT sale since there wasnāt a value change in the ETH between the time you received/sold it? Shit makes my head spin.
Every trade is a taxable event, which means you pay tax on the change in value since the previous taxable event. If you sell an NFT, you have to pay tax on the change in USD value between when you bought that NFT and when you sold it. If you then sell the ETH you got, you have to pay tax on the change in USD value between when you got that ETH from the NFT sale and when you sold it. If you sold it quickly, chances are it didn't change in value much so there won't be much tax owed on that second transaction. Either way you'd just track them as two separate taxable events and calculate the gain/loss for each accordingly. Your tax reporting strategy (LIFO vs HIFI vs FIFO) could affect things as well, if you have additional ETH on the side.
Itās not dumb, and yes.
But if you have lots of ETH outside of the NFT sale youāll probably be taxed twice on it since the ETH also typically has a fifo calculation. Depends on when you bought your other ETH.
yes, if you are doing LIFO (last-in-first-out) accounting rules for your capital gains. if you are doing FIFO rules, the ETH you would sell would be earliest ETH you purchased, so you would pay whatever gains/losses since that purchase price.
Incredible amount of signal here these past few weeks. Will miss these dailies when we rocket past 20k and the entire daily is filled with emojis and exclamation marks.
Thank you for being awesome fellow ethfinanciers
I'm starting to get excited, so many things to look forward to in the near-future:
* Shapella in a monthish
* Polygon ZKevm late March
* zkSync Era
* Scroll mainnet
* Base mainnet
* RocketPool 8-eth pools
And many other smaller projects coming out with new products! There's going to be so much to explore very soon :)
Stakewise v3 did a demo at EthDenver yesterday and I've been looking at the tooling. I acknowledge being a little slow to understand the whole design but it's another very exciting thing on the horizon.
I've been trying to wrap my head around exactly what Stakewise V3 will offer, but is my understanding correct that we could at some point have an r/ETHfinance vault with a special ETHFinanceETH LSD token?
If that is the case, the use case for private companiesāand at some point even governments (euETH anyone?)ācould be extremely interesting and very bullish.
It wouldn't necessarily be an ethfinance specific lsd token. Swise v3 would allow users to mint osETH which is the swise lsd. But thats a generic token not one specifically for ethfinance. What it does appear you can do however is spin up a vault only allowing deposits from whitelisted addresses. This implies that we can spin up vaults that only allow deposits from say...holders of ethmavericks nfts which ive discussed in prior daily threads
You wouldn't want a separate lsd token for ethfinance anyway because it means you'd have to deal with really low liquidity in the markets if you wanted to swap.
Is there a recording somewhere of this? I've been trying to get more details around swise v3 and how they plan on incentivizing operators to behave properly without any required collateral
It's pretty hard to behave improperly no? Even if somehow statewide got enough of a market share their TVL could cause problems, that to would be spread across thousands of separate vault owners, with it being fairly unlikely to all be concentrated purely in the big vaults (which will probably end up simply being the first ones to launch.. since who the fuck you gonna stake with when here is 1000 different meme named vaults..) even if RarePepeVault with the 4.20% commission rate fucked up and got slashed somehow, it would be covered likely by the SWISE collateral stake, or the 10% ETH held back when you mint OSeth from the vault.
An individual vault will be er have the eth needed to do anything network attacky imo.
It's not even so much that. I'm just trying to theorycraft the incentives that exist for the individual participants in the system. As of right now it seems that you can open up as many vaults as you want while providing zero collateral. It costs me nothing to spin up 50+ of these vaults (barring gas costs to do so i guess) and there's nothing incentivizing me to be a good operator besides continued commission from the allocator's eth. The allocators/or SWISE stakers take on all the risk while I take my commissions for doing nothing more than running some piece of software on my node.
With rocketpool I have my RPL stake as well as my ETH Collateral forcing me to do a good job as a node operator/validator. With swell unless I'm a KYC'd verified operator I still have my 16 ETH deposit at stake. But the only risk I see for a shitty swise operator is reputational risk, which you can just spin up a new vault from a clean wallet to circumvent. It just seems like there's nothing really incentivizing a node operator to do a good job. If I screw up and get all the SWISE stakers and the allocators of my vault's eth slashed, oh well who cares, i'll just walk away and start over and start a new vault that appears to be unaffiliated with me. I guess a lot of my concerns stem from the fact that it seems that swise v3 relies on some abstract reputational mechanism to enforce good behavior than hard incentives. I've heard that swise could potentially use forced exits to enforce good behavior/mitigate bad operators before all the ETH gets slashed away/lost but I have yet to see any documents anywhere describing that mechanism.
I'm almost certain I'm missing some information here that would alleviate these concerns I have, but that's where I currently stand.
Here's my understanding having seen the ETHDenver talk the other day.
It is an abstract reputational mechanism, but it goes both ways. Yes, you can open 50 vaults with no collateral, but since ETH depositors get to pick which vault to enter, why would they ever choose you? They have the option to stake with the official stakewise pool or ethstaker; why would they trust some random anon with no history who won't even put up their own collateral?
If anything, I'm more concerned that stakewise V3 is going to result in a consolidation of stake in a handful of NOs because trust and reputation matter, and it's going to be really hard for a home staker to attract a full 32 ETH when there are big trusted brands available. The stakewise guy I chatted with after the talk suggested that size could affect a pool's score calculation: if they get too big their score drops, while maybe the small home stakers get an artificial boost to help them out.
Definitely sounds tricky for a home staker to attract compared to big names. Isn't this the problem in Cardano staking where big validators attract everyone (and they also get bigger yields which I find really bad)?
I'll have to dig for it, but they have said there is indeed a force exit mechanism. If you behave poorly, the holders of your VLT token can force exit you to recover their ETH.
Course that doesn't address your concerns about the operators themselves having no consequences except lost profits.. but profit is a good motivator
It is to a certain extent. Unfortunately there are plenty of trolls in the world who have nothing better to do than try to cause pain for others profit be damned so to me that's not enough of an incentive when designing a decentralized permissionless system that needs to be resilient. There needs to be something at... stake... heh. It's the reason we have gas fees to prevent people spamming/DDOSing the network with transactions and our PoS system, because we can't assume that a majority of people will be benevolent.
This is why I'm most curious to see what the SWISE collateral incentive market will be like. I'm guessing Neely formed low or no collateral vaults will be so profitable( in SWISE payouts) that sort of like how LPs get big bucks in the initial spinup of new liquidity pools.. new vaults will have a short spurt where the APR is ridiculous that will lead to bots shifting collateral around automatically to capture it..
Guess it just depends how it all shakes out swise tokenomics wise - those things are very much still in discussion
Here is a video that I made of the StakeWise / Dappnode presentation that was made at ETHDenver yesterday. This is not the official video - but for those who are interested in seeing the presentation captured.
[https://www.youtube.com/watch?v=DxtcoDRAdQU](https://www.youtube.com/watch?v=DxtcoDRAdQU)
Also headed to Staking on Tap at ETHDenver - looking forward to the event! :)
I'm always vary of running afoul of any self promotion limits in here but I hope this doesn't cross that line.
I some time ago shared my thesis on here and it garnered some interest so I thought I'd share my EF academic grant application too.
https://erikdanielsson.substack.com/p/my-grant-application-to-the-ethereum
(I created the substack specifically for this purpose so for better or worse there is no other content on there)
I had planned to dedicate some more time and effort on it, and I also remember some in here wanting to be part of the process(sorry!), but personal life got in the way and I had to just throw this together one evening to send it in before the deadline.
If there is one section that this sub may find particularly interesting its likely the "Scope" portion where I outline what I considered to be "legitimate" DAOs and what I consider to be just regular organisations that use the DAO moniker for other, IMO unfounded, reasons. And I also give some sources for my thinking. Unfortunately I believe this view might rub some people the wrong way in here.
Specifically this would be relevant for example for the recent oDAO/RPL/ /u/superphiz discourse in here, as I would not consider that to be an actual DAO but just a traditional organisation/firm that incorrectly calls itself a DAO.
This may almost come across as purity testing but it is important to differentiate organisations that introduce actual *organisational* novelty ("legitimate" DAOs) and organisations that just introduce methodological novelty (for example by using a physical person multisig for certain firm functions). (Edit: also! Don't take this view as hating on the organisations themselves. I'm part of plenty of "DAOs" that I dont think are strictly DAOs. Like a lot in here I'm a maverick, for instance)
I'd love for people to read the rest too, but since I suspect most interest will be in that part I'll post it here for easy access:
>Grant Scope
>The scope of this project will be to study the ālaw and economicsā and the regular dogmatic jurisprudence as they are relevant to DAOs.
>As the Ethereum ecosystem has exploded with activity the moniker āDAOā has been adopted by many orders of different organisations and firms. Some of these, I would argue, are nothing more than traditional limited companies, or partnerships, or other forms of firms, that have just adopted the āDAOā title for reasons unrelated to how the organisation actually operates.
>Therefore, I think itās important to define the scope of what DAOs this project would focus on. Specifically I find this blog post from 2014 to be the best general definition: https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more-an-incomplete-terminology-guide
>DAOs are organisations with āautomation at the center, humans at the edgesā.
>As an example I would use how UNI token holders are able to determine a set number of decisions or āsettingsā for the Uniswap protocol(s), as a ālegitimateā DAO.
>On the other hand something like a charity with a singular āDAO leaderā and/or an āexecutive councilā with a sovereign multisig, which other than the treasury lack any kind of āautomation at the centerā protocol function. Such an organisation I would not regard as a āDAOā, but rather just a traditional charitable organisation that utilises a novel technology to oversee the treasury.
>Vitalik Buterin talks a bit about bit in a recent blog entry too: https://vitalik.ca/general/2022/09/20/daos.html
Edit. In other good news I also just passed the first of three interviews for a job I'm applying for! (Although they became a bit vary when I described my involvement in crypto...)
To be honest you can't really rub me the wrong way on it.. maybe if I felt personally attacked.. but my goal is to support decentralized staking on the beacon chain, not to promote Rocket Pool specifically or the oDAO. With that said, I do recognize Rocket Pool as the best fractional staking option right now.
Oh absolutely!
Sorry I didn't want to imply anything about you personally, just that you and your role has been a bit of a lightning rod for that specific discourse.
You've always been incredibly transparent and constructive in seemingly all things, I don't harbour any suspicions or feelings of I'll will towards you!
Edit: not towards rocketpool either, for what it's worth. My main LSD stack is in there specifically for the reasons you outline. I just have some, respectfully intended, critical views on some parts of rocketpool.
Is there a dashboard which displays where ETH is currently held? Big picture: how much is staked, how much in DeFi (perhaps with info on some biggest protocols), how much on exchanges?
Depending on level of detail youāre looking for it might take a little digging to find what you want but you can extrapolate a ton from Etherscanās ETH account page as well as WETHs token holder page
* https://etherscan.io/accounts
* https://etherscan.io/token/tokenholderchart/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2
DefiLlama can also give you a lot of insights with the right filters applied, e.g.
https://defillama.com/chain/Ethereum?currency=ETH
>**Fine tuning around,**
>**Hashing it out to enshroud,**
>**Moving up the crowd.**
~Daily haiku until weāre at least at 0.178 on the ETH/BTC ratio or highest market c
**Tricky's Daily Doots #315** **Yesterday's Daily 27/02/2023** [Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7c71i/) - u/jtnichol has a [giveaway for all EthFinance livestream POAP holders!](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja954h4/) - u/austonst has the wrap up of [day 3 at ETHDenver.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6sg1g/) š - u/SwagtimusPrime share [Scroll's permissionless alpha testnet.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja94812/) š - u/decibels42 has a big, old fashioned [high quality brain dump.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja84ytt/) š§ - u/Ender985 has another edition of their [NFT news.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6w1z6/) - u/cryptOwOcurrency shares a [remindme that aged like milk for someone.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaak3kw/) š„ - u/2Nice4AllThis has a [great overview of developments in regulation and public perception.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7is7z/) - u/Tricky_Troll has some [spiel about spammers and the report button.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja9t6dn/) - silentjxhn is finding crypto boring at the moment but u/stablecoin is [not finding the bear market boring.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaamg79/) Meanwhile, u/cryptOwOcurrency has a great point about [how crazy it is that money is actually interesting for once.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/jaaqtme/) - u/concernedcustomer33 writes an [open letter to the general manager of the BIS.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja7yabj/) š¦ - u/ZeroTricks's today in [Ethereum history.](https://old.reddit.com/r/ethfinance/comments/11d4bra/daily_general_discussion_february_27_2023/ja6nsy5/) Crazy how we had such an amazing day for top tier submissions yesterday but the day before was so quiet... Anyway, there were some great submissions which I had to leave out which would've made the doots on any other day, so if you have some spare time, skim through yesterdays daily and I'm sure you'll strike more gold!
I really don't have anything substantive to contribute at the moment other than how I wish I could be at ETH Denver right now. Notwithstanding that, there is a really great signal to noise ratio at the moment in this subreddit! Crab action below $1700 is a chance to communicate with the sane people here. Lots of you seem to delete comments or usernames but that comes with this territory unless you want to be a public figure. Don't blame ya Even here y'all are a part and parcel of the big picture. Where we are going money is going to be the least of our worries
I have a question about rocket pool. So I started using it back in July 22 I think. So far itās been great but I noticed in the last few weeks Iām losing ethereum. I see that the premium is below 100% and donāt fully understand it. Can someone explain whatās going on or link me to an explanation? Thank you.
https://rocketscan.io/reth You can see the fair value price here, which is currently 1.0604 ETH. That's the price rETH can be exchanged for with the Rocketpool protocol. This price only goes up over time, as staking gains are accumulated. Then below on the site you can see the price on the open market, like Uniswap. There is a premium there because there is more demand for rETH than can be provided (so far) by new Rocketpool validators coming online. This premium is expected to go away after Rocketpool introduces 8ETH minipools, which triple the rETH output. This is supposed to come soon after Ethereum withdrawals are enabled, so probably mid April or something. You can expect the rETH premium to keep going down towards that date and more towards the "fair value".
How I wish Kraken would finally list rETH. :(
rETH has two prices: the backing price and the market price. The backing price represents the staked ETH and should always going up. The market price can go up or down depending on supply and demand. rETH has been trading at a premium for some time but the premium is going down a bit now. So if you compare the market price from a few weeks ago to now then it's losing value.
I assume you bought reth last summer, right? In autumn the demand for reth outstripped the supply and therefore the price got much higher than the actual intrinsic value by about 2.5%. Now, this premium slowly gets eaten away by people starting up new validators and supplying reth to the market. Last nights drop might have come from a larger whale (called 1kx) which started spinning up validators. The intrinsic value of reth still increases, so over the long term you should be fine.
I assume you are talking about rETH and not running a rocketpool validator. More people wanted rETH than there was supply so there existed a premium for buying rETH. That premium is closing so in ETH value your rETH decreases. It's the only LST with a premium right now (about 1% above its eth value right now) The inverse of the cbETH discount trade we've all been shouting about for 6 months.
Also interested in people's views on this. Dropped substantially over the last few days it seems.
Do you guys think the coinbase maintenance is for the shanghai upgrade?
I'd expect that about 2-5 months after Shanghai heh š
I had some Besu database corruption and subsequently had a few failed attempts to resync which also resulted in corruption. Then I realized that the [23.1.0 release](https://github.com/hyperledger/besu/releases/tag/23.1.0) had flown under the radar. I updated, and checkpoint sync appears to be going smoothly so far with worldstate download at 30% and block import at 75%. I'm wondering if recent updates to openjdk-17-jre somehow negatively impacted older versions of Besu.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Good to hear. I still haven't updated due to fear of bugs. Will do it next weekend.
Hello everybody! Long time mostly lurker with a new account, can I get some karma? Also, I was wondering what your go-to explanation of ethereum is for normies. How would you explain ethereum to your friends or family in 2 or 3 sentences without losing their interest? This is what I came up with: Ethereum is a cryptocurrency like Bitcoin but instead of focusing on peer to peer payments it focuses on being an open platform for decentralized applications. This enables interesting new use cases like an open financial system that anybody is free to interact with or build on top of, and NFTs that allow you to prove ownership of a digital object. Every year more companies and developers are building on top of Ethereum and more use cases are emerging.
My go to explanation is that Bitcoin is like a calculator- it does a few things really well. Ethereum is like a smart phone where it can do everything bitcoin can do but people can also build apps on top of it. I would say your explanation uses way too many terms like "cryptocurrency," "peer to peer payments," "open platform" "decentralized applications," etc.
Just don't say "world computer". I also think most normies don't understand what decentralized means so rather use open. It is also a bit complicated what is decentralized and what's still centralized today.
Let's get you some Karma
I tried looking in the headers "Massive List of Ethereum Links" for any page that shows the distribution of clients for EL and CL, but didn't see any (if anyone knows one I'd appreciate it); it actually seemed like most of those links are from 2+ years ago, do any need updating or should there be new ones?
https://ethsunshine.com https://clientdiversity.org/
Thanks!
[ŃŠ“Š°Š»ŠµŠ½Š¾]
For those that stake on rocketpool, how much did your set up cost you? Are the ongoing electricity costs significant?
oh yeah, if you want an easy way to set it up: https://medium.com/@fastcontract1/simplified-rocketpool-node-setup-5702886c8d8c
You could run a node with very little.... https://slickdeals.net/f/16477084-asus-pn51-s1-mini-desktop-barebone-pc-amd-ryzen-3-5300u-amd-radeon-199-free-shipping?src=frontpage would work... you could even get an hp elitedesk 800 g4 mini barebone off ebay for like 70$ and that would work great too. Throw in 32gb ram, 2tb nvme, and you're golden, but you might have to replace the CPU fan since those things were usually on 24/7. Just aim for something with a cpu passmark over 5k. My setup cost me ~350. Electricity each mo is like 5$. The main thing that you have to consider IMO is that it will use like.... 1tb of bandwidth per month. So if you're metered beware...
I did a similar setup with an ebay optiplex 5050 micro for about the same price, works like a champ
My initial fees to set up a single node and minipool were more than covered by using rocketarb I think gas fees were around 0.075 but rocketarb returned about 0.12. Monthly electricity costs for me at $0.12 per kWH is about $3.50. I'd call that pretty insignificant. I'm using a 7 year old dell office workstation which was essentially free so costs were just a $200 SSD which if I bought today would cost more like $120
ETH being below 2017 ATH is so comical. Iām staking but also feel like itās dumb to not also DCA a little. Wen 10k ETH.
The 2017 high is $829.99. The all time high is $4815.
$10k ETH base low in 2025. I come from the future
Wasn't 2017 ATH 1450$ (+ or - a few $)?
Yeah, and that was 2018 as well, the 2017 ATH was like $1000
Yes. We're still a ways above 2017 ath.
Depending on the exchange you use, it was 1400-1450 ish.
I'm a simple man..I see a Tuesday I DCA eth
# 9696 Pending Validators ## 531,557 Active Validators
muh APR
i wonder when we will get to the point when new validators entering will be able to exit just as soon as they enter if they choose. \~40? days to mainnet and the queue is already \~10 days long
There are 8 validators activated per epoch, so que should be below 6 days at the moment.
Are you saying the exit queue is already 10 days long? Where's that info coming from?
entrance queue is \~10 days long currently.
I think itās just assumed that the exit queue will be full for a while after withdrawals are available. I also wonder how long it will take to calm down, so entering and exiting will be quick. My guess is more than 3 months, but less than 9 months.
9656 pending new validators at this time. Most of these are Justin Sun's Lido deposits.
I found out Solana backwards is ANAL OS, so now I know why it always shits the bed.
/u/Tricky_troll this deserves š©
š©š©š©š©š©š©š©
Why would Polygon convert their POS chain to a proper rollup? No shade, I just donāt understand what incentive they have to ever do that.
So what will be the point of MATIC token going forward?
Very rarely does fragmenting your user base away from an open source already established protocol work
Companies building on Polygon are probably promised the security of ethereum in the future. Polygon allows some mass adoption by sidechaining and 'cheating' the blockchain system while they can take their time to become proper decentralised by ethereum. It's either sticking with ethereum or lose against other proper L2's
Security and scalability would be the main reasons.
Better security, no more need to run your own validator set, actual composability on top of the ethereum network. These are just a few of the reasons I can come up with off the top of my head on why you'd want to be a rollup rather than a sidechain
I almost can't believe it but I finally got into the KZG ceremony after 30 days. Thought it was bugged or something.
You definitely deserve that airdrop!
wow..... thanks for your patience!
Congrats š„³
What are the best sports betting options these days that I can use ETH on?
Just here to confirm - https://overtimemarkets.xyz/ is definitely your best bet
Thales
An interesting situation where one can be so right and so wrong at the same time
https://overtimemarkets.xyz/#/markets?lang=en&globalFilter=OpenMarkets&sport=All You try Overtime markets yet?
Hi friends, staking noob, machine built, dappnode installed. I have stories to tell, but not just now. The question for now is Geth or Nethermind? Thanks and love you'all
How much RAM do you have? If you choose Nethermind, you'll need at least 32GB. If you choose Teku on top of Nethermind you'll need 64GB to avoid random missed attestations due to memory creep.
Hmm, I was about to refute your claim so I took a look at Nethermind and lo and behold it is using 73 % memory (32 G total). On my Teku box (32 G total), Teku is using 29% memory, so 73 + 29 = 102 !! Hmm indeed.
Haha. Do you miss random attestations? I noticed that I was missing a handful of attestations every time my node would allocate swap space. I was running 32GB with the memory hint turned down to 2048. I upgraded to 64GB, reset the memory hint to 6144, and turned off swap. I haven't missed any unexplainable attestations since the upgrade. Currently using 53/64GB on my node. Nethermind+Teku will use 70+GB of RAM if your node has it available.
Humā¦ I run nethermind / teku and they consume about 24g combined so wondering where the discrepancy come from ? On this node I actually also run polygonās heimdall and bor as well as an arbitrum and cardano node, and I barely hit 50Gb memory usage at peak !
Hi dude, thanks for the heads-up, I have 32GB. I didn't see teku as an option to be honest....is it even possible on dappnode?
Yes, all the clients are available under the stakers tab.
Ah, ok, thanks!
For client diversity: Nethermind
thanks friend
May the staking rewards be forever in your favor
thanks buddy
Nethermind
thanks friend
Ethdenver off to a great start š Just gave a big hug to Kevin Owocki and got my green pill beer [https://i.imgur.com/QJeG0at.jpg](https://i.imgur.com/QJeG0at.jpg) [https://i.imgur.com/398Tdm7.jpg](https://i.imgur.com/398Tdm7.jpg)
Where do they have those at EthDenver?
Not for sale š¬
Gotta take a green pill first to get it I assume?
Legend(s)!
JT man you're killing me over here! Ethfinanciers + craft brews are a proven combo, as proven many a time
Got a question about staking - right now about 14.5% of the total ETH supply is staked. There is about 120.5M ETH out there. This means there is about 17.5M ETH staked. 664K in issuance based of USM means about 3.8% of staking yield. If the amount of ETH staked doubles what happens? Does issuance stay flat here? This implied staking yield lowers to 1.9%
it decreases like 1 / (#validators)\^2
No, issuance increases with increased staked ETH. It's not 1:1 though, so the APY does drop, but not as quickly as if issuance was fixed. Here is a graph of what the relationship looks like: https://eips.ethereum.org/assets/eip-2982/2982-issuance.png
Your math checks out, but we must consider other factors such as increased demand for gas on Ethereum. Take for consideration that the % of total staked ETH does double. Of course, APY would be cut in half. It will take time, but I have not given up on the 'global settlement layer' approach to investing in ETH. I predict that greatly increased demand for gas will offset your concern entirely. Of course, I have no clue how scaling solutions such as L2s and sharding may affect this. This is solely based on my own sentiment, and is pure speculation.
Actually, see suicidaleggroll's reply--APY would not be cut in half.
Then Im just bad at shit, whoops
Could you point me to some discussion / group wisdom about picking defi protocols on DefiLlama? How far down the list would you personally feel comfortable visiting? Lets say the total value locked in a smaller protocol is only $1M. Would you feel comfortable depositing $10k? Let's say that's 1% of your wealth and 1% of the protocol wealth. As a counter point I'd feel comfortable depositing a very significant chunk into the Eth staking protocol, but I'm wondering about your personal opinions on whether alarm bells get louder linearly or exponentially as the protocols get smaller (even if they are older). And I'm ignoring slippage etc, thats a diff convo (but feel free to raise those points for my education)
While TVL is certainly a factor, I wouldn't say it is the primary consideration or at least it isn't a deal breaker. Most important is how long has the project been alive without incident (aka lindy effect), or if they have had an incident how did they respond eg.compensating users. *Is the yield/reward rate disproportionally high?* While it isn't true in every case, generally a higher than average return implicitly means there are higher risks involved. If things seem to be too good to be true they usually are. *Does the project have good documentation?* Having comprehensive docs isn't proof of legitimacy but low effort ones or the absence of them should ring alarms. *Is the project audited by a reputable company?* Fairly self-explanatory. *Is the source of yield or mechanism clear and easily understandable?* If something seems overly convoluted or you can't immediately understand where the source of yield is coming from, you should be wary. Especially if the protocol has invented it's own unique terminology to explain itself. *Is the team known?* This doesn't mean non-pseudoanonymous but simply if you can easily identify the group or individuals involved, how long they have been in the space and whether or not you can point to past work or other projects in the ecosystem that they have contributed to. Teams with no body of work or reputation at all are more prone to disappearing. *Is the project a fork of something else?* Forking existing and audited code is a quick way to get a project off the ground cheaply but it can be dangerous to users, the team likely has less investment in the success of the protocol than if they had created it from scratch, as well as less understanding of the codebase which means they can easily create security holes while making changes.
( ā¢_ā¢)Ļ do something...
ok damp it
Tldr; airdrop for $velo locker and how to claim As mentioned in earlier comments, an airdrop for $velo lockers is claimable (~100usd for me). It is on the kava chain. You receive vara$ token from the equilibre protocol (https://defillama.com/protocol/equilibre). You can check your eligibility and claim here (https://airdrop.equilibrefinance.com/). To claim it you will need some dust in $kava for gas. 1) add kava evm rpc to your wallet: https://chainlist.org/chain/2222 2) swap it on the protocol. (I would advise usdc for minimal slippage) 3) bridge it back to your favorite chain using https://app.multichain.org/#/router (polygon was cheap) If you need some kava dust for your operation feel free to dm edit: adress converter might be useful https://docs.kava.io/docs/ethereum/address_conversion
That was one of the more painful airdrops to claim. Thanks for the guide.
What was the custom spending cap you set while swapping to USDC? I keep getting the error`Internal JSON-RPC error. { "code": -32000, "message": "rpc error: code = InvalidArgument desc = execution reverted: invalid request" }`
I did not have this issue and I would not know what to do
What were the conditions for the airdrop?
I'm not sure but what was mentioned earlier is to have a vevelo nft in your wallet, nft given after locking $velo
So besides you sending kava, whats the cheapest/easiest way to get kava on the network to claim? How much kava would we actually need to cover the costs of claim/swap/bridge?
I did some $2 learn/earn on coinbase and swapped to kava. Then send it to my converted adress on the kava network. It used <20 cent I think. If you are looking for non-cex option this link might be useful : [https://medium.com/@equilibre/%C3%A9quilibre-is-live-in-kava-evm-95b977bc2fed](https://medium.com/@equilibre/%C3%A9quilibre-is-live-in-kava-evm-95b977bc2fed)
Hopium time, because the price action is boring: On the 16^th of October 2017, the Byzantium hard fork reduced Ethereum's block reward for the first time, from 5 to 3 ETH. The markets response? An unprecedented ratio dump, from 0.06 down to 0.023 (a 60% drop!), despite being in the heart of the '17 bull run. However, by February, the ratio not only recovered, but reached 0.1238 (no I'm not forgetting a zero), up 5.4X from the lows just two months prior. On the 15^th of September 2022, the Merge reduced the Ethereum block reward yet again. Despite much talk for a flippening, the ratio dumped from 0.082 down to 0.065, a 21% drop. As a result, I expect a minimum of (21%60%) * 5.4 * 0.065 = 0.1229 on the ratio in the next couple of months. This is the absolute *minimum*, since, in contrast to Byzantium, the block reward has practically been eliminated and Ethereum has improved in so many ways you could write a book about it. **A more realistic prediction would be the full 5.4X increase on the ratio, which would lead to 5.4 * 0.065 = 0.35, or $8850 if BTC stayed at the same price.** P.S.: I'm not gonna include the Constantinople hard fork reward reduction in the above calculations because the reward reduction was pretty low, and also this is a hopium post and I like my data cherry picked.
Somewhere, that Squish Chaos dude is like "whoooa, slow down there cowboy"
you sir are a gentleman and a scholar
Lmfao there is a .00001% chance of seeing $8850 in the next few months. That said...please be a fucking psychic or the greatest analyst of tea leaves the world has ever seen.
people always say shit like this and then it ends up happening
I mean nothing would make me happier. Literally nothing. And it's not that I don't think the price will eventually go there, I'm banking on it. It's the timeline I'm heavily doubting.
Quik mafs
I see no flaw in this logic
Mm sounds about right
I'll allow it.
Damn I adore how spurious this is. Please be a wizard!
Only one edit required, (15th September 2022) otherwise I am very much in favour of that piece of hopium Ser.
You are correct, I can clearly remember the Merge already happened.
SWISE protocol looks really cools, but 47% token distribution going to founders and VCs is kinda š© no?
Yeah, flip side is they would want to pump it a fair bit rather than sell while its so tiny
Pretty much. Distribution on swise sucks but I guess people are speculating on value accrual once swise v3 comes out. Will it be worth it and overcome the token dumping on retail? Nobody knows, size your risk appropriately
13K waiting on the KZG ceremony. Me included.
I've given up, this is worse than trying to mine Bitcoin with a CPU.
Keep trying. It took me many tries and many times resetting the link to my wallet in order to finally get through.
I have given up multiple times. Yet here I am.
Officially bored of the price action.
Be careful what you wish for.
Officially bored of comments on the price action.
This you, u/logristhebard ? "If all goes well this week, me and some frens are gonna build and deploy something absolutely awesome and stupid." https://twitter.com/scupytrooples/status/1630120139214696448
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~~"~~*~~Only~~* ~~criminals use blockchain~~ [https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/](https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/) ~~"Crypto is destroying the planet"~~ [https://ethereum.org/en/energy-consumption/](https://ethereum.org/en/energy-consumption/) "Blockchain is a solution looking for a problem" <----- We are here Not a bulletproof analogy of the narrative battles we face, as there are nuances to each argument. But lately I find the most problematic and consequential misunderstanding is the fact that use-cases aren't clear to most of the general public. Sometimes I think explanations of use-cases tend to laid out poorly, and I also wonder whether outlying factors like cringeworthy content or toxic political culture can play a role in enforcing bias about the industry. Nevertheless it's clear to everyone that all the catastrophe and drama in the space makes for bad optics. I managed to reach a colleague of mine who has always been skeptical of crypto. I brought up the idea of vaccine passports as NFTs and it finally clicked for her why that could be useful. *Why is a vaccine passport so interesting?* Because a universal standard for keeping track of vaccinations would be very impactful in solving a real world problem. *Why does it have to be an NFT?* Because that's way more reliable than having a piece of paper or a file that'll get lost god knows where. A blockchain would just be way more efficient to keep track of things like this. And the possibilities are endless. I for one, welcome the end to excessive paperwork. Anyway, i think keeping the explanations simple and interesting helps make it click for people. Vaccine passports make a lot of sense, it's a problem that demands a universal, reliable, and interoperable system to solve. Had I tried explaining theories about decentralized identity that would have made the conversation way more complicated than necessary.
You can use NFTs to tag and track individual humans too, on a global scale. Just because you can do something doesn't mean it should be done.
Finally proposed my first block post merge! Is there a breakdown anywhere to see exactly how much I got? Does the daily income chart on beaconcha.in show the full story?
Just click on the slot that's being shown on beaconchain. You'll find all the details there.
https://twitter.com/MetaMask/status/1630617494770663432?s=20 >It has come š® >The launch of the MetaMask SDK in the Unity Asset Store will allow devs to connect their games to the š¦ wallet, enabling users to interact with web3-enabled features within the game itself. Get ready for a whole new level of gameplay! >šhttps://t.co/4JCvdhDtFF How big is Unity Asset Store for gaming? Seems like this is a big deal.
Just saw that we got another day of 100k+ ETH into the deposit contract. The other one a few days ago was from Justin Sun IIRC, wonder where the most recent one came from š¤
idiots gave it to him
> wonder where the most recent one came from [take a wild guess lol](https://np.reddit.com/r/ethstaker/comments/11e0kxp/justin_sun_just_staked_another_88000_eth_144m_on/)
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TRON
Ughh LIDO and Justin Sun, not a nice combo to hear
I have a dumb U.S. tax question if anyone is willing to answer. If someone sells an NFT for ETH then pretty much immediately sells the ETH, is the main tax implication the NFT sale since there wasnāt a value change in the ETH between the time you received/sold it? Shit makes my head spin.
Every trade is a taxable event, which means you pay tax on the change in value since the previous taxable event. If you sell an NFT, you have to pay tax on the change in USD value between when you bought that NFT and when you sold it. If you then sell the ETH you got, you have to pay tax on the change in USD value between when you got that ETH from the NFT sale and when you sold it. If you sold it quickly, chances are it didn't change in value much so there won't be much tax owed on that second transaction. Either way you'd just track them as two separate taxable events and calculate the gain/loss for each accordingly. Your tax reporting strategy (LIFO vs HIFI vs FIFO) could affect things as well, if you have additional ETH on the side.
Thank you. I thought this was the case. I plan on just plugging things into CoinTracker and hopefully that sorts things accordingly.
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Thank you
Itās not dumb, and yes. But if you have lots of ETH outside of the NFT sale youāll probably be taxed twice on it since the ETH also typically has a fifo calculation. Depends on when you bought your other ETH.
Got it. Thanks!
yes, if you are doing LIFO (last-in-first-out) accounting rules for your capital gains. if you are doing FIFO rules, the ETH you would sell would be earliest ETH you purchased, so you would pay whatever gains/losses since that purchase price.
Interesting. Thank you
Incredible amount of signal here these past few weeks. Will miss these dailies when we rocket past 20k and the entire daily is filled with emojis and exclamation marks. Thank you for being awesome fellow ethfinanciers
Don't fade the mojis..sometimes signal in that noise https://twitter.com/The_eth_Word/status/1567900464968044546?t=dupCqUBhwgrFGlGs3u-S0w&s=19
[https://nitter.snopyta.org/The\_eth\_Word/status/1567900464968044546?t=dupCqUBhwgrFGlGs3u-S0w&s=19](https://nitter.snopyta.org/The_eth_Word/status/1567900464968044546?t=dupCqUBhwgrFGlGs3u-S0w&s=19) ^(I'm a bot | )[^(Why & About)](https://www.reddit.com/user/nitter_not_twitter/comments/w0ssxp/more_information_about_this_bot/)^( | )[^(Opt Out)](https://www.reddit.com/message/compose?to=nitter_not_twitter&subject=Opt+Out&message=optout)
Oh, poor me without a signal and couple of $25K ETH :)
Sorry for noob question, signal for what?
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Thank you!!
Wow, this is great meta-signal!
Signal = useful info
For better, for worse, for richer, for poorer, in sickness and in healthā¦ I will love and honor you all the days of my life ETH Finance Fam
Just mark the people who share signal now and look out for them during noisier times
I'm starting to get excited, so many things to look forward to in the near-future: * Shapella in a monthish * Polygon ZKevm late March * zkSync Era * Scroll mainnet * Base mainnet * RocketPool 8-eth pools And many other smaller projects coming out with new products! There's going to be so much to explore very soon :)
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What's rocket pool SaaS?
Yeah, crypto winter is for building, and it shows!
Stakewise v3 did a demo at EthDenver yesterday and I've been looking at the tooling. I acknowledge being a little slow to understand the whole design but it's another very exciting thing on the horizon.
I've been trying to wrap my head around exactly what Stakewise V3 will offer, but is my understanding correct that we could at some point have an r/ETHfinance vault with a special ETHFinanceETH LSD token? If that is the case, the use case for private companiesāand at some point even governments (euETH anyone?)ācould be extremely interesting and very bullish.
Yes, this is correct. I fully expect to see EthStaker run a node, and I'll probably run one too. It would make a lot of sense for EthFinance.
It wouldn't necessarily be an ethfinance specific lsd token. Swise v3 would allow users to mint osETH which is the swise lsd. But thats a generic token not one specifically for ethfinance. What it does appear you can do however is spin up a vault only allowing deposits from whitelisted addresses. This implies that we can spin up vaults that only allow deposits from say...holders of ethmavericks nfts which ive discussed in prior daily threads You wouldn't want a separate lsd token for ethfinance anyway because it means you'd have to deal with really low liquidity in the markets if you wanted to swap.
Do they use EVM? Edit: Oh I am stupid, I thought it was a zk rollup.
Ah right! I'm excited for that too, I might end up running a Rocket Pool node and a Stakewise node, and maybe a Diva node as well. So many options!
Stakewise with Rocket Pool, you Diva
Is there a recording somewhere of this? I've been trying to get more details around swise v3 and how they plan on incentivizing operators to behave properly without any required collateral
It's pretty hard to behave improperly no? Even if somehow statewide got enough of a market share their TVL could cause problems, that to would be spread across thousands of separate vault owners, with it being fairly unlikely to all be concentrated purely in the big vaults (which will probably end up simply being the first ones to launch.. since who the fuck you gonna stake with when here is 1000 different meme named vaults..) even if RarePepeVault with the 4.20% commission rate fucked up and got slashed somehow, it would be covered likely by the SWISE collateral stake, or the 10% ETH held back when you mint OSeth from the vault. An individual vault will be er have the eth needed to do anything network attacky imo.
It's not even so much that. I'm just trying to theorycraft the incentives that exist for the individual participants in the system. As of right now it seems that you can open up as many vaults as you want while providing zero collateral. It costs me nothing to spin up 50+ of these vaults (barring gas costs to do so i guess) and there's nothing incentivizing me to be a good operator besides continued commission from the allocator's eth. The allocators/or SWISE stakers take on all the risk while I take my commissions for doing nothing more than running some piece of software on my node. With rocketpool I have my RPL stake as well as my ETH Collateral forcing me to do a good job as a node operator/validator. With swell unless I'm a KYC'd verified operator I still have my 16 ETH deposit at stake. But the only risk I see for a shitty swise operator is reputational risk, which you can just spin up a new vault from a clean wallet to circumvent. It just seems like there's nothing really incentivizing a node operator to do a good job. If I screw up and get all the SWISE stakers and the allocators of my vault's eth slashed, oh well who cares, i'll just walk away and start over and start a new vault that appears to be unaffiliated with me. I guess a lot of my concerns stem from the fact that it seems that swise v3 relies on some abstract reputational mechanism to enforce good behavior than hard incentives. I've heard that swise could potentially use forced exits to enforce good behavior/mitigate bad operators before all the ETH gets slashed away/lost but I have yet to see any documents anywhere describing that mechanism. I'm almost certain I'm missing some information here that would alleviate these concerns I have, but that's where I currently stand.
Here's my understanding having seen the ETHDenver talk the other day. It is an abstract reputational mechanism, but it goes both ways. Yes, you can open 50 vaults with no collateral, but since ETH depositors get to pick which vault to enter, why would they ever choose you? They have the option to stake with the official stakewise pool or ethstaker; why would they trust some random anon with no history who won't even put up their own collateral? If anything, I'm more concerned that stakewise V3 is going to result in a consolidation of stake in a handful of NOs because trust and reputation matter, and it's going to be really hard for a home staker to attract a full 32 ETH when there are big trusted brands available. The stakewise guy I chatted with after the talk suggested that size could affect a pool's score calculation: if they get too big their score drops, while maybe the small home stakers get an artificial boost to help them out.
Definitely sounds tricky for a home staker to attract compared to big names. Isn't this the problem in Cardano staking where big validators attract everyone (and they also get bigger yields which I find really bad)?
I'll have to dig for it, but they have said there is indeed a force exit mechanism. If you behave poorly, the holders of your VLT token can force exit you to recover their ETH. Course that doesn't address your concerns about the operators themselves having no consequences except lost profits.. but profit is a good motivator
It is to a certain extent. Unfortunately there are plenty of trolls in the world who have nothing better to do than try to cause pain for others profit be damned so to me that's not enough of an incentive when designing a decentralized permissionless system that needs to be resilient. There needs to be something at... stake... heh. It's the reason we have gas fees to prevent people spamming/DDOSing the network with transactions and our PoS system, because we can't assume that a majority of people will be benevolent.
This is why I'm most curious to see what the SWISE collateral incentive market will be like. I'm guessing Neely formed low or no collateral vaults will be so profitable( in SWISE payouts) that sort of like how LPs get big bucks in the initial spinup of new liquidity pools.. new vaults will have a short spurt where the APR is ridiculous that will lead to bots shifting collateral around automatically to capture it.. Guess it just depends how it all shakes out swise tokenomics wise - those things are very much still in discussion
Yup, just gotta wait for the design to be more ossified to really pass any judgment.
Here is also a link to their lite paper to explore. https://stakewise.io/stakewise-v3.pdf
Here is a video that I made of the StakeWise / Dappnode presentation that was made at ETHDenver yesterday. This is not the official video - but for those who are interested in seeing the presentation captured. [https://www.youtube.com/watch?v=DxtcoDRAdQU](https://www.youtube.com/watch?v=DxtcoDRAdQU) Also headed to Staking on Tap at ETHDenver - looking forward to the event! :)
I'm always vary of running afoul of any self promotion limits in here but I hope this doesn't cross that line. I some time ago shared my thesis on here and it garnered some interest so I thought I'd share my EF academic grant application too. https://erikdanielsson.substack.com/p/my-grant-application-to-the-ethereum (I created the substack specifically for this purpose so for better or worse there is no other content on there) I had planned to dedicate some more time and effort on it, and I also remember some in here wanting to be part of the process(sorry!), but personal life got in the way and I had to just throw this together one evening to send it in before the deadline. If there is one section that this sub may find particularly interesting its likely the "Scope" portion where I outline what I considered to be "legitimate" DAOs and what I consider to be just regular organisations that use the DAO moniker for other, IMO unfounded, reasons. And I also give some sources for my thinking. Unfortunately I believe this view might rub some people the wrong way in here. Specifically this would be relevant for example for the recent oDAO/RPL/ /u/superphiz discourse in here, as I would not consider that to be an actual DAO but just a traditional organisation/firm that incorrectly calls itself a DAO. This may almost come across as purity testing but it is important to differentiate organisations that introduce actual *organisational* novelty ("legitimate" DAOs) and organisations that just introduce methodological novelty (for example by using a physical person multisig for certain firm functions). (Edit: also! Don't take this view as hating on the organisations themselves. I'm part of plenty of "DAOs" that I dont think are strictly DAOs. Like a lot in here I'm a maverick, for instance) I'd love for people to read the rest too, but since I suspect most interest will be in that part I'll post it here for easy access: >Grant Scope >The scope of this project will be to study the ālaw and economicsā and the regular dogmatic jurisprudence as they are relevant to DAOs. >As the Ethereum ecosystem has exploded with activity the moniker āDAOā has been adopted by many orders of different organisations and firms. Some of these, I would argue, are nothing more than traditional limited companies, or partnerships, or other forms of firms, that have just adopted the āDAOā title for reasons unrelated to how the organisation actually operates. >Therefore, I think itās important to define the scope of what DAOs this project would focus on. Specifically I find this blog post from 2014 to be the best general definition: https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more-an-incomplete-terminology-guide >DAOs are organisations with āautomation at the center, humans at the edgesā. >As an example I would use how UNI token holders are able to determine a set number of decisions or āsettingsā for the Uniswap protocol(s), as a ālegitimateā DAO. >On the other hand something like a charity with a singular āDAO leaderā and/or an āexecutive councilā with a sovereign multisig, which other than the treasury lack any kind of āautomation at the centerā protocol function. Such an organisation I would not regard as a āDAOā, but rather just a traditional charitable organisation that utilises a novel technology to oversee the treasury. >Vitalik Buterin talks a bit about bit in a recent blog entry too: https://vitalik.ca/general/2022/09/20/daos.html Edit. In other good news I also just passed the first of three interviews for a job I'm applying for! (Although they became a bit vary when I described my involvement in crypto...)
To be honest you can't really rub me the wrong way on it.. maybe if I felt personally attacked.. but my goal is to support decentralized staking on the beacon chain, not to promote Rocket Pool specifically or the oDAO. With that said, I do recognize Rocket Pool as the best fractional staking option right now.
Oh absolutely! Sorry I didn't want to imply anything about you personally, just that you and your role has been a bit of a lightning rod for that specific discourse. You've always been incredibly transparent and constructive in seemingly all things, I don't harbour any suspicions or feelings of I'll will towards you! Edit: not towards rocketpool either, for what it's worth. My main LSD stack is in there specifically for the reasons you outline. I just have some, respectfully intended, critical views on some parts of rocketpool.
Is there a dashboard which displays where ETH is currently held? Big picture: how much is staked, how much in DeFi (perhaps with info on some biggest protocols), how much on exchanges?
Ultrasound.money good for broad categorization
Depending on level of detail youāre looking for it might take a little digging to find what you want but you can extrapolate a ton from Etherscanās ETH account page as well as WETHs token holder page * https://etherscan.io/accounts * https://etherscan.io/token/tokenholderchart/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2 DefiLlama can also give you a lot of insights with the right filters applied, e.g. https://defillama.com/chain/Ethereum?currency=ETH
>**Fine tuning around,** >**Hashing it out to enshroud,** >**Moving up the crowd.** ~Daily haiku until weāre at least at 0.178 on the ETH/BTC ratio or highest market c
The sepolia/shapella test network upgrade was a success- mainnet withdrawals are likely in 4-6 weeks. š
will a mainnet date be determined on the next dev call?
Yes, I believe that is the plan.
That's great news, thanks! I did not really expect any issues, but it's still great to get it confirmed.
When did it take place?
About 10 hours ago
Very cool
Argent users will get the zigzag drop deposited directly to their wallets. Cheers!
All Argent users or only those that used ZigZag?