OP Stack on fire, Return of the Gitcoin king - The Daily Gwei Refuel #651 - Ethereum Updates

Transcript

hello everyone welcome to another episode of The Daily way refuel where he kept the latest news in the theater maker system I'm your host and this is the 6th of September 2023 alright everyone let's get into it so apologies for missing yesterday's episode everyone just ran out of time to record one uh and today I'm recording it a little bit later than usual because I just got back from that Meetup that I spoke about the other day the ethereum Melbourne Meetup which was really fun by the way uh lots more than the previous meetups that I had attended over the last few weeks but still very fun uh the main topic of the night was talking about liquid staking tokens or lsts and just staking generally restaking a lot of interesting conversations around that uh I did uh AMA at the end of a presentation that uh

someone gave around uh Rock X which is a staking uh platform that has their own LST and they've been around for a little little while now they're also like a lot later node operator and stuff like that so yeah basically was doing a co-am a with him at the end of his talk uh all about staking which is which is really really fun there but yeah anyway I'm back today got a bunch of things to get through and apologies if I sound tired I definitely am because that Meetup took a lot out of me but I'm not going to miss another refill I'm not going to bring the rug fuel back today uh so let's get into it all right first we have a very interesting post here from Danny Ryan uh this is an eth researched post called Pier Das a simpler Das approach using

battle tested P2P components now Das stands for data availability sampling and This falls into the work around dank sharding not really specifically I guess like Proto dank sharding more dang shining generally but it all falls into the same bucket at the end of the day and this E3 search post talks about uh I guess like networking uh when it comes to data availability sampling and how that all plays A Part plays its part there you can give this a read on link in the YouTube description below but this really is the next big body of work after 4844 goes live I mean there are other things like 4844 plus which actually that's a perfect segue quickly into another thing that I was going to cover which is a post from Terence uh who works at prilabs here all around ideas around erp4844 plus here and how

that might work but but generally the next few years will be focused on uh dank sharding as kind of like the main scalability part of the ethereum roadmap and in that falls things like that availability sampling uh data availability schemes uh the some of the schemes you've heard of before uh erp48 44 plus and on all these other things that basically make the uh layer one more scalable for uh layer twos and for roll up specifically because really when it comes to data availability and and I guess like increasing the amount of data the ethereum layer 1 chain can handle that is really important for Roll-Ups now if you're using layer 2 as the catch-all term for both Roll-Ups and like validium type constructions that

store their data off chain well then dank shining is kind of irrelevant to them generally because if they're not storing the data on ethereum they're not going to be taking advantage of any of the Dank sharding upgrades uh at least that's that's from from my understanding uh because they're storing their data on something like eigen data availability layer or Avail or you know whatever else it is or maybe their own custom bespoke one but they're not storing it on ethereum layer one so they're not getting any benefit here and I guess the whole idea around dank sharding is to make it so that ethereum still can remain the most secure and also one of the most one of the cheapest maybe not the cheapest one of the most cheapest and reliable data availability layers because when it comes to that availability it's all about uh making

sure that the data is available as possible as is as um reliable as possible here now if you rely on an external data availability Network that may not be uh you know very reliable compared to ethereum L1 as we know ethereum L1 is incredibly reliable it has an uptime of basically a hundred percent it actually has never gone down right and it also has the utmost security that you're going to get out of any datability layer I mean it has the most Economic Security by far out of any kind of L1 except Bitcoin but obviously Bitcoin is is not going to be at that availability layout for anything uh anytime soon if ever so yeah dang shining basically is all about making sure that we can scale that that data for these Roll-Ups so uh or I guess like layer 2's generally so they choose to

store their data on ethereum rather than sacrificing security and going elsewhere and of course this falls into the discussion around how much security do you need depending on what you are for example like a gaming chain may not need uh ethereum level security and honestly it may not even work on uh being a roll-up because it may require such ludicrous scale that it's better suited to be something like a validium which as I mentioned before is still a perfectly fine construction it's just not technically a roll-up whereas something like a defy roll-up or something that is home to a lot of defy apps will definitely want to be a roll-up and to have their data stored in ethereum one and the people using it would definitely like that to be the case for that ultimate obviously security and

reliability for that data being available there but anyway you can go check out the research post from Danny Ryan himself I'll link it in the YouTube description below and you can also check out terence's 4844 ideas and about how 4844 plus ideas and how he's currently thinking about them and the cool thing about 4844 plus is that uh the constraint that these ideas have that Terence gave is that they are additive Backward Compatible not consensus breaking which means that would be no hard Fork required so if either of these ideas got implemented they could be done at the client level and wouldn't need a hard Fork uh to to be kind of um to be uh to be activated on the network which is pretty cool right so yeah you can go give those a read I'll link them in the

YouTube description below right another bit of eth research was posted today from Barnaby here called fun and games with inclusion lists now of course I've covered inclusion lists on the refill before they're all about making it so that um it basically becomes near impossible for censorship to occur on ethereum uh obviously as it exists today we have a bit of a hodgepodge of uh of block building going on with the Mev Boost network and the relayers which leads to censorship vectors and obviously the work around PBS and inclusion lists and things like that are aiming to rectify all of those issues so if you want to learn more about uh inclusion lists and some of the games that I guess like Theory theoretical games that Barnaby has played with them you can give this eth

research on poster read Because this is the sort of stuff that needs to be kind of thought through before these things can even be thought about uh being implemented on the ethereum network because at the end of the day if we Implement something on the ethereum network that is not resistant to an attack that basically kills the value prop of that upgrade well it doesn't actually help anyone right it just added more overhead uh to the um ethereal ethereum governance added more overhead to the ethereum called devison and researchers and in the end we got a worst result than what we were after so we want to thoroughly test these things and thoroughly research them before we even think about moving it on to creating an EIP about it and then uh potentially getting it into the network and as I've said before all this stuff

around PBS and inclusion lists I I would assume that it would probably be be 2025 before we start seeing any of this stuff going live on the network I feel like the eips for uh next year or at least the upgrades for next year's Network upgrades have already pretty much been I wouldn't say decided but like soft kind of committed to as I said before Electra which is the next upgrade coming uh sometime in early next year after dencoon uh will include a lot of the eips that were pushed out from the three upgrades the the merge um chappella and dencoon and then after that we'll probably get some vertical tree related stuff some statelessness related stuff and then into 2025 it looks like potentially could be some PBS stuff there but yeah we can go give this a

research post a read from Barnaby I'll link it in the YouTube description below all right the ERC 4337 Twitter account has 18 teams have already begun building a variety of projects focused on ERC 4337 which is an account obstruction related ERC here and you can actually go and check out this list of of grantees uh and I'll link this in the YouTube description below and they've got links to to what they're working on how they're actually integrating ESC 4337 into their um kind of products here and it's really cool to see this because I think that obviously account abstraction

is a huge ux upgrade for for the the entire ethereum ecosystem and we need to kind of just nudge it along at this point and we need to make sure that people are building using a standard like ERC 4337 instead of going off into their own different directions and kind of confusing things so it's great to see that uh these grants have been given out to these projects in order to keep them aligned on building around 4337 so you can go check out this post I'll link it in the YouTube description below all right moving on the ethereum.org account uh on on Twitter here has tweeted saying last month we wrapped up our first translathon a week-long online competition aiming to translate ethereum.org's website in as many languages as possible now I spoke

about this a bunch of times on the refuel and so here are the results so there are the numbers here uh there are 621 registrations took place 217 participants individuals and teams and 56 languages translated uh and the most impressive Milestone here is that 1.47 million words were translated uh by the community here and to give more context the translation program was launched in 2019 and in 2022 the community altogether had translated three million words meaning that in one week only transathlon's participants got to translate almost what we could only achieve in six months that is impressive that is actually really really impressive and I'm great to I'm very happy to see such success here from this program uh and they've also broken down

the top seven languages by activity so by the amount of words that were translated number one was Indonesian uh took and then Turkish Spanish polish German Russian and Chinese traditional Indonesian had almost 200 000 translated words uh and uh Turkish at 167 000 and so on and so forth you can check that out I'll link in the YouTube description uh below uh and and all of the people that participated in this transathon logged in from all corners of the world uh to participate as well which is really great to see so yeah this is this is honestly awesome I'm I'm very glad to see that this went basically as good uh if not better than it could have gone and I'm sure they're going to be running more of these transathlons in the future but as I said before the ethereum

ecosystem obviously is very heavily English nominated but ethereum as a network is a Global Network it should not be limited to only English-speaking people we should be able to translate everything in ethereum into all the languages that we can you know as many languages as we can to cover as many people as we can because it's easy enough to say hey we're building a you know new Financial system new coordination system in ethereum uh for the 8 billion plus people on planet Earth but if we're only catering to English-speaking people then uh we're essentially cutting out most of of the planet right so getting these translations done is critically important not just for ethereum.org but for the broader ecosystem so hopefully this can actually motivate some of the broader ecosystem to run their own

trans-a-thons in order to get their products and services translated to languages other than English all right moving on so node operator sign ups are now available on node set dot IO so they say here behind the scenes are working hard to increase earnings for ethereum nodes there are several opportunities in the works exclusively for node set operators uh more importantly by joining node set operators can directly contribute to our core goals of promoting operator diversity reducing asset concentration within and across protocols and helping to scale projects that directly contribute to ethereum's Credible neutrality so essentially you can go to the site today you can click I need decentralization or I'm a node operator if you click I need a centralization you can safeguide your assets by

Distributing across a large set of independent operators so you can stake with a large set of inter operators CR or you can join nodeset as an operator uh by clicking this button here and earn extra rewards so each of these will take you to a Google form here which you can see in front of me and you can fill this out for yourself I'll link it in the YouTube description below but great to see more I guess like staking initiatives are going live here sticking services and pools and node operators going live yeah because as you guys know my general kind of view on uh Distributing out and decentralizing the eat steak especially taking market share away from Big players like Lido is to just increase competition increase education around that con competition uh and also do you know tons of marketing

around it to make sure people are aware of that and there are not just kind of like marketing things that need to be done there are also integration related things I know it came to my attention recently or was put back on my radar recently that for the longest time uh Ledger live only had uh Lido as a as a as a node operator that you could stake with and a lot of people just defaulted to using Lego because they use Ledger live with their Ledger where their assets were stored because they didn't want to move their assets and Ledger just really made it really easy to go with Lido um I think that ledger is working on changing that so that they can basically have more than just light over there they may even have more than Lido today but I know originally they started with

with Lido uh but those are the Integrations that I'm talking about that are critically important getting that in front of people especially people who are less tech savvy and aren't maybe crypto natives because there's a lot of people who have assets thought on Hardware wallets and as I said they don't want to move those assets off but if they can directly interact with um mistaking from Ledger live without having to move their assets off to another address or something like that obviously when they stake they're uh you know if they they're depositing eth they're basically moving that eth into into the Lido system for example uh into the deposit contract but uh you know that's all happening in the background through Ledger live so these trusted kind of Integrations are critically important to decentralizing and distributing out if stake and uh yeah

I'm glad to see more of them coming online as time goes on but you can go check out node set for yourself we'll link this in the YouTube description below for you to do so all right so I came across this tweet from Stacy myrrh talking all about the op stack adoption now there are so many chains building on op or so many projects building NOP stack chain right now it's pretty crazy so the shoes at least start here the ones that are live on mainnet test net and to be deployed so right now live on mainnet is obviously the op mainnet bass Zora Avo and the public goods network from Bitcoin uh live on the test net is opbmb by binance um which I believe is going to be settling to binance chain but uh it may eventually settle to ethereum uh

you have mode Network here as well uh unidex Finance Kinto and Manta Network um I obviously don't endorse any of these myself because I haven't actually interacted with them and I don't know much about them so just keep that in mind and then to be deployed we know that cello is pivoting their L1 to an L2 um d-bank uh also uh is making their own L2 uh Maggie by omagi by a16z Lyra Finance as I mentioned before lettuce and uh and and clave yeah so you can go check this tweet uh kind of like out for yourself I'll link it in the YouTube description below but the op stack is growing the I guess like app chain L2 app chain thesis is playing out here and op is at the Forefront of it so you can

go check that out we'll link it in the YouTube description below all right I came across this tweet from Little Cohen here who talked about something you may you guys may not be aware of which is a socket scan so this is an The Ether scan for Bridges now I think I have uh showcased this before on the refill but what this does is Aggregates the data from native Bridges and most third-payer liquidity Bridges like hop Stargate and across and you can paste your address in and see all the bridge transfers you ever made in one place obviously very very cool and very useful for people who want to keep track of the bridge transactions that they've made and also potentially need to get this data for tax related purposes maybe you have done things these Bridges like swapping assets and maybe etherscan isn't showing you

exactly what you need to know so socket scan will definitely show this for you so you can go check this out for yourself we'll link it in the YouTube description below for you to do so all right so an interesting layer 2 project that I came across yesterday that I did some digging on because I recognize the name and there's an interesting story behind this so um this project introduced itself it's called layer n and they're building themselves as ethereum's Financial layout so uh that their Spiel basically is that there are a financial network of hyper performant zkop hybrid Roll-Ups yes there's a lot of buzzwords there um with Native interrollup Messaging and shared liquidity uh modular ultra low fees High throughput less than 100 Ms latency uh layer n is built to scale

defy on ethereum now you may be wondering okay this seems to have come out of nowhere and it's promising all these big things on ethereum uh what's the what's the gist here like what's the go what's the catch well the catch is is that layer n actually started out as a layer 2 on Solana Yes you heard that right a layer two on Solana now of course we all know that Solana doesn't really uh want layer twos or careful layer twos because Solana is an ecosystem system is trying to have that one single unified Global States or basically be a monolithic architecture um as as a blockchain um but yeah they were going to build a layer 2 on Solana now what's even funnier about this is that they came out of stealth and announced their fundraise

in November of 2022 and guess who they raised money from it was FTX and of course FTX blew up pretty much like very soon after they announced I think um and then also a couple of the um the co-founders of Solana were also uh investors in in this project because as I said it started off as a layer two on Solana but it seems that they've been I guess like quietly building for the last seven or eight months and have exited stealth again or kind of like reborn their protocol again as an ethereum based layer 2. now this is not a roll-up they're going to be storing their data on eigen da so definitely not a full roll rpr more obviously a validium construction but if you go to their website they make Grand claims and this

is what kind of look I I think it's cool what they're building but I kind of it's I wouldn't call it a red flag but it's more of a okay they're promising all these things can they actually live up to it because if you scroll down a little bit they you know they say here that they can do 100 times the throughput of Solana they can do it with less than 50 Ms latency uh and the cost per transaction is 0.01 cents and they actually outline how they're achieving this CR they've got ethereum as their settlement layout eigen data availability as the datability layout layer end sitting on top and then they have these three products called the nevm which is just an evm generalized evm roll up they have a DEX roll up so a decentralized exchange roll up called Nord and nordx which is an Institutional

roll-up so yeah as I said a lot of buzzwords here guys a lot of stuff happening a lot of big promises being made but hey if they're able to I guess deliver on these promises then uh that would be very cool because this is definitely something that I think uh ethereum needs it needs a hyper performance kind of like Financial layout where you could build stuff like Central limit order books for example so clubs as you may have heard about them before and if it can be done in these kind of like Promises of less than 50 Ms latency which by the way guys that is an insane uh I guess like uh latency there less than 50 that's 50 milliseconds so Ms stands for milliseconds that is an insane speed um I think Solana touts 500 milliseconds um for their leader to

kind of like uh get up get a block out um and I obviously on ethereum it's 12 seconds uh to to the latency to get a so per block right when the transaction has actually been processed it's 12 seconds on ethereum um but to get it down to less than 50 milliseconds we'll see about that uh the cost per transaction is not really something that I I'm gonna ping because uh if you're if you're a validium then less than one cent is pretty easy to achieve I mean we're going to be able to achieve that as a roll-off post erp4844 but yeah generally as I said a lot of buzzwords a lot of promises being made gonna monitor this see how uh things go with it see how they evolve uh but yeah just something to keep an eye on uh and a funny little story of how they came to

be all right so Kane from synthetics posted a blog post titled synthetics A New Hope where he basically talks about uh synthetics V3 going forward uh they're multi-cham plans shared liquidity uh and and what they're trying to achieve all that sort of stuff he also I think mentions in the post a possible um uh a synthetics app chain as well obviously built using the op stack here uh but yeah if you're interested in in kind of like diving into the latest on the synthetics ecosystem uh this blog post is definitely one that you should check out I'll link it in the YouTube description below all right so Kevin ookie one of the original co-founders of git coin has announced his return to git coin so he

says here in his opinion the Dow has made Solid strides in decentralizing the tech expanding the use cases and exploring New Growth areas at the same time I also think much of the community's criticism of git coin is valid looking forward to turning the corner together with the existing team and the ecosystem I'm interested in helping the Dow double down on what's working and figure out if how we can abandon what's not I love this I love this so much for a couple of reasons first reason I've said to you guys before that I think the most successful dowels are going to be run like companies they're going to be run with leadership not necessarily Central being being centralized but with leadership and coordination and who better to be a leader and be a coordinator than the one of the founders

of gitcoin and someone who deeply cares about public goods and advancing the Bitcoin Mission so I'm very happy that the Kevin has gone back because of that and the second thing is that I think that this set's kind of like a standard for project Founders out there you don't have to leave the project once you decentralize it or once you kind of like issue a token and create a dow around it you can stay on it doesn't mean that the project is centralized around you it means that you're staying on to guide the project to coordinate to lead the project uh until you feel comfortable I guess like stepping down from that position because I think what a lot of Founders do is that they uh you know decentralize their project out they they create a doubt and then they say Okay hands off from me for now I want the Dow

to to evolve without me blah blah but that's not how it can actually work what needs to happen is that the founder the original core team needs to stay on to make that transition happen it can't just happen overnight and I understand there are some regulatory concerns as well obviously if there's a token involved stuff like that and liabilities and things like that but I don't know I mean that that's that's on a case-by-case basis I can't really comment too much on that but generally I do think that um uh Kevin coming back to get coin is a huge positive for Bitcoin and I know Bitcoin has had some missteps recently especially with the shell thing and a few other things out there that kind of divided the community so I think that uh Kevin coming back should lead to a a more steady state for Bitcoin and a

Improvement in Bitcoin going forward all right so uh blast up here defy saver have introduced a new home for all your leveraged staking needs so each e-saver is a fully non-custodial app focused solely on Leverage staking and built on top of defy saver so the gist of it is that it keeps you in control it's non-custodial uh there's per user position so no pulling of assets which means no shared risk risk your choice of LST lending protocol and average level and no withdrawal fees so what e-saver gives you other tools to efficiently manage these positions as you can see here uh it gives you profit and loss tracking liquidation risk data and so much more now you guys know that my

general rule of thumb is that Leverage is the killer but honestly I've said it before and I'll say it again if you are someone that can actually manage their risk and and you understand the difference between leveraging uh leverage staking and leveraging lsts versus leveraging um like uh eath and then borrowing stable coins and buying more eth like Leverage trading for example there are key differences there I think they're important to understand then I think that this is a product for you inherently there's nothing wrong with leverage staking what where it becomes like wrong or I guess uh dangerous is when you try to do just d-gen stuff where you try to milk as much ill as you can out of it and don't care about your your you know your health factor or your your health factor or your liquidation

risk are you just YOLO that's obviously where it becomes dangerous but that is true of pretty much everything in crypto I think so as long as you keep that in mind as long as you keep that top of mind I think you'll be okay but definitely I think when it comes to leverage I would say that leverage trading as I just described you know putting your ether's collateral borrowing stable coins buying more Ethan then doing that you know in a circular way is definitely the most dangerous way of going about it especially if you're doing it on platforms which give you up to like 100x Leverage and stuff like that yeah that that that's very dangerous and I've seen multiple people blow themselves up like that I mean and we've even seen people blow themselves up on Leverage in the crab market I mean just recently with that big dump that we

saw on BTS see an eighth uh there was like a billion dollars of positions liquidated in 24 hours what the hell how like this is crazy um and and you would expect these people to be people that like uh just in the ecosystem uh and then and they've been in the ecosystem for quite a while they're not actually noobs because all the retail investors are gone right now but yeah Leverage is the killer guys it can kill you uh and it can kill you fast so just keep that in mind when looking into these products but when it comes to leverage staking there are a few other considerations here but D5 saver has your back if that's something that you're interested in so I'll link this in the YouTube description and you can go check it out all right last up here I just wanted to

give a shout out that tomorrow or I guess like depending where you are in the world I'll be doing a Twitter spaces all about uh eat staking with etherfi so uh this is happening at 10 p.m Australian Eastern Standard Time on Thursday September 7th which is 8 A.M eastern time for those of you in the US you can just go check out this link I'll link in the YouTube description below and set a reminder for this Twitter spaces and of course it will be recorded uh for you all to enjoy but yeah I'm very much looking forward to this I you guys know I love talking staking especially solo staking and everything that surrounds it there and I I think that this is gonna uh act as a really good opportunity to educate more people about solo staking in particular uh because I think solo staking obviously

is critically important to the health of the network I think it's only getting easier over time to do solo staking uh and I think that we just need to educate more around that so you can go check that out for yourself I'll I'll link that in the YouTube description below you can set a reminder as you've seen here you know you just have to click on set reminder here and it'll automatically remind you when this goes live I know this is I think this is early for like West Coast uh us I think this might be too early it might be like 5 a.m West Coast but I think it's at the right time in in Europe and uh East Coast here and in Asia so covering most of the of the globe there and I think that the timing was was set because of

that they were trying to cover as many time zones as possible especially because I'm in the worst time zone possible that's why this is happening at 10 p.m because obviously doing it uh you know at any other time during the day for me except late at night it's probably not going to cover many people but anyway I'm rambling I think that's going to be it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all tomorrow