EthStaker Knowledge Base, Market chat and more - The Daily Gwei Refuel #574 - Ethereum Updates

Transcript

hello everyone welcome to another episode of The Daily gray refuel where we kept the latest news in ethereum ecosystem I'm your host Anthony 26th of April 2023 alright everyone let's get into it so I spoke yesterday about coinbase's suit against the SEC and gave some details about that well I just wanted to highlight This Thread today from a meta law man who explained in a bit more detail about what this is actually going to in entail so uh he says here this case begins in the Appellate Court not the trial court there will be no Discovery uh depositions and document exchanges just briefing and a hearing coinbase has an All-Star legal team led by Eugene Scalia former Secretary of Labor and Son of deceased the Supreme Court Justice Antonin Scalia Scalia has experienced

defeating government agencies including the SEC in court the petition filed yesterday is quite persuasive then he continues by saying coinbase is Seeking a writ of um mandamus which is a court order compiling the SEC to do its job and announce a decision on coinbase's request for rulemaking the action this action does not necessarily affect the s CC's timing for swing coinbase as it is threatened to do so and then he continues and says he expects Majora major industry players to Pile in with amicus briefs supporting coinbase's position and we might also see the house Financial Services committee or individual members come in with briefs in support of coinbase and this is where um it gets really juicy the SEC Commissioners will have to approve any response to coinbase's action there's a tiny chance that the SEC will blink and

agree to engage in rulemaking and if just one commissioner withdraws their support for Gary gensler's regulation by enforcement strategy he's done now I don't know what he's done means here I don't know if that means like he's fired or if uh or he'll be removed or something like that I'm not across it as much as I would like to be uh but when I read he's done I'm like okay well uh maybe he actually does get removed and maybe he actually is out maybe there isn't just those two um kind of options that I talked about yesterday and a couple of weeks ago and I'm just going to quickly look in here and see if there's any reply any uh uh replies here okay yeah so he's replied here to be nuclear I mean one of the democratic appointed Commissioners who have been supporting the regulation by enforcement

strategy to date okay so he didn't mean Gary Gensler would be done it meant that the commissioner would be done okay so that that makes a bit more sense I guess but still uh this is great this is a great little breakdown here and I'll link in the YouTube description below but I I think that's it on that one because I spoke about this a lot yesterday so if you missed me speaking about it yesterday go check out uh yesterday's episode there and I'll keep you guys updated on how coinbase's suit goes here all right so that devnet 5 for erp4844 that I've been talking about has an update today so flcl here on Twitter who is a Dev at nevermind put out a tweet saying never mind has the fifth iteration of eip4844 implemented now syncs with lodestar waiting for the dev net V5 full start uh by the way what's

new in V5 so V5 changes make 4844 simpler and cleaner no zero blob transactions Shard blob transactions now must have at least one blob and no aggregated proof a commitment and a proof for every blob which allows to verify faster and then a few other things here which you can read in the YouTube description below and Terence from the prilabs team also put on a tweet saying two weeks ago shipped capella uh or I guess like Chapala capella is the consensus layer side of things which is what Terence works on and this week prism sinking multi-client deneb devnet 5. deneb is part of the Cancun upgrade that is happening uh at the end of the year that I've spoken about before um uh yeah so there is a lot of progress being made very quickly on 4844 now that

Chapala is behind us and I remember I've said this over the last few months that as soon as Chapala was done I mean even leading up to it being done on mainnet I'm sorry being deployed on mainnet 4844 was making very good progress now I am growing more and more confident by the day that we're going to be able to see 48 44 go live on mainnet by end of this year now that doesn't mean that the Roll-Ups are automatically going to take advantage of them as we've seen with some of the applications or some of the services built on top of ethereum such as Lido um you know Chapala went live but Lido isn't actually doing withdrawals until at least a month after uh chappella went live because they have to implement it on their own code base the same is true for Roll-Ups Roll-Ups do not

automatically inherit the uh the the kind of new scalability that 4844 gives them they have to be changed from from my understanding they have to be changed at the at the code level in order to take advantage of it so we might see some of them uh ready you know at the time that 4844 goes live and can immediately take advantage of it we may see the other some of the other ones you know not going live for a few weeks or a month or something like that but it makes total sense for pretty much all of them to switch over to blob type transactions instead of the the normal call data that they use in order to reduce those costs substantially on their each individual Roll-Ups for the end users here so I'm expecting it to happen pretty fast and I'm curious to see if any of them are actually going to

be ready at the point of 48 44 going live like for example will arbitrine one or or the optimism Network be ready day one that 4844 goes live to to switch over so basically automatically switch over from uh using call data to using blobs and then immediately and this is this would be a quite immediate effect for end users those fees would drop by probably 10 times or more right so this isn't like the merge where the merge was obviously a huge Monumental event but for end users they didn't really feel anything it didn't bring any scalability right it didn't bring any kind of ux or UI improvements for fan users that they would feel at least there was something movements like the 12 second block time obviously but it's not something that

you would really feel unless you're actually looking for it whereas with 4844 If the roll up um switches over to it or if one of those networks which is over to it when it goes live then immediately end users will feel the effect yeah in their transactions being a lot cheaper and they're probably going to ask you know why is it cheaper and this is where things get really positive they're going to find out that it's cheaper because there was an upgrade that went through on ethereum to to make it that way and what I really like about that is that it it reinstills confidence in people who may think that ethereum is only scaling via layer 2 and not scaling its layer 1 and shows people that no ethereum is scaling at layer 1 and Layer Two it's just that as part of the roll-up Centric

road map layer 1 ethereum is mostly being scaled to service layer twos uh and you know apollina has talked about this recently as well about how layer 1 ethereum could integrate its own ZK AVM and a bunch of other updates that could scale it by 10 to 100 times that's all well and good but 10 to 100 times is not nearly enough for the scalability that we need for end users that's why end users are going to be sitting at Layer Two whereas layer 1 is going to get more scalable of course but eventually every user except Wales and uh the layer twos themselves settling on ethereum will be priced out so the the layer twos and higher than that like layer threes and things like that uh it is the user layer as I've talked about numerous times before uh but yeah I'm curious to see

which ones are actually going to be able to go live with the 4844 um upgrade at the same time time that uh that it goes live on mainnet here all right so a bit more staking chat today I know I've talked about this a lot lately but I think it's very relevant because there is a lot happening in the staking ecosystem there's a lot of interesting stuff happening that I feel is worth covering so Jasper from the rockapole community put together another great thread talking about rockapool's growth since the atlas upgrade went uh went live so the outlets upgrade didn't go live that long ago um I don't know if how long ago it was now maybe like 10 days nine days ago or something like that so it hasn't been too long uh but Jasper starts off this road by thread by saying the rocketpool

team launched the atlas upgrade enabling eight uh mini pools or validators it's been a resounding success so let's look at some numbers so the numbers are that there are 3654 for mini pools launched at 25 growth 2632 of those coming from 16th production so basically people who are already running 16 8 mini pools converting that into eight eighth meeting pool and then Jasper continues saying that rockapole deposited 50 000 each to the beacon chain with a queue for another 60 000 each which is this 11 growth if you are and interestingly 90 pools have been solar Staker migrations and only 128 pools have exited and then Jasper continues our eighth growth supplies up 10 from uh from 232 256 000 with deposits picking up recently as

Kraken and coinbase unlock their staked teeth punching above the belt two percent of the beacon chain but 10 of inflows uh with Integrations this is up only and then uh uh the node operator account also continues up until the right now at 2515 and the mini pool queue has topped out for now at 66 000 either providing bonus rewards boosting our eth APR approximately 100 200 spots Advance per day this is huge I mean I I remember saying this for months to you guys that I believe that rockable's Atlas upgrade will be a huge boost to the rocketpool ecosystem because it IT addresses the concerns around re scalability and around lowering that barrier to entry for people to spin up mini pools I've started converting my mini pools today from 16th to uh to

eight eighth it's very straightforward to be honest I'm just following the rockapole docks and as usual the rocketpool docks are the the goat of of docs uh but yeah very straightforward and you can spin up new Mini pools today with eight eth and 2.4 Heath worth of RPL tokens so if you're already exposed to RPL and you have the eighth that is required as I said before all you need is a a relatively low powered device to do this you can do it on a Raspberry Pi you can do it on a rock 5B board check out the Proteus device uh that Joe from the rockapole community has put together that might be something that you're interested in or you could just run it on your laptop if you're happy with your laptop being online 24 7 you can run the mini pool on your laptop using the smart

node stack if you're running Windows it might be a bit harder uh you might have to do a a kind of some funky things to get it to work but on Mac OS it should work out of the box I believe and then if you're already running you know Ubuntu on on a laptop well then it's going to be very easy for you to integrate with the smart node so I can get that all started there but as I said you don't need high powered Hardware you can do it on a Raspberry Pi you can do it on a rock 5B board which is a which which is what Pro TS uses or you can do it in any other kind of old Hardware that you may have lying around I would say that in terms of the minimum requirements uh two terabyte SSD is

probably the biggest expense there uh in terms of ram eight gig could work but I I usually go 16 gig which is still very very cheap Ram is not not that expensive not as expensive as it used to be and that should really be all you're worried about Pro CPU you don't really need a strong CPU you can just get a run of the mill one as I said because you're run you're running it on these small low-powered devices they don't have powerful CPUs anyway so yeah look into that if you are interested in spinning up mini pools yeah now talking about ethereum staking there has been a bit of chatter around actually tracking how many validators are active on the beacon chain because as you can see begin the beacon chain website has uh active validators at 561 655. rated Network actually has a

different number here uh where oh man I've lost the number here anyway but I I saw it before they have a different number and so do a bunch of other websites like doing analytics dashboards now there is a discrepancies between in these websites because they're counting validators in different ways some of them might be counting validators as okay well we know that oh 10 000 validators or what is it here we know that 13 000 validators are going to actually enter in but they're pending right now so let's just add that to the total amount of active validators and that's the number whereas I don't think that's what Beacon chain is doing I think that they split it out where they say okay these are the active validators on the network and here are the pending validators both entering and exiting so because of that their number is going to

be different to to ones that count it in different ways yeah and then I've also seen the amount of eat at stake number be uh be inaccurately shown on certain websites and that's because they are just looking at the eth2 deposit contract so I have to explain this because I don't think many people are aware of this these two deposit contract is a one-way burn which means you send eth in there to enter into Eve staking and it burns that East technically on the execution layer side and issues it on the consensus layer side which allows you to continue staking and then when you go to withdraw it it does not reduce the balance of the eth2 deposit contract at least not right now it may in the future but it doesn't right now now this is not an accounting error this is not a

bug this is working as intended so as you can see the ease to deposit contract has 19.4 million eth in it now this is eat that has been effectively burned it is not earth that can be withdrawn from this contract it is as I said it's a one-way Bridge into the consensus layer into staking now you can see here on the beacon chain website it says that the staked 8 is at 18 million so that is a pretty large discrepancy there well that's because any eat that is withdrawn from the beacon chain uh as a full exit right as a full exit of the of the validator does not come from this contract it comes from the consensus layer itself which is where the the eighth is actually stored and as I said that means that this contract is going to be up only for the foreseeable future

there may be a Reconciliation of balances one day where the contract is where there is a kind of um a hard Fork to do this but it may not be something that gets done because it may not be there may not be any point to it but you shouldn't be looking at the eth2 deposit contract each balance anymore to see how much total eat is at stake because as I said this is up only now uh or it has always been up only but when without validators withdrawal uh it's not going to show here uh whereas Beacon chain I believe is probably the most accurate for showing this so that's something else to keep in mind now of course reddit.network is a great site I've highlighted it a bunch on the refill before it shows a really great breakdown of all different staging providers their

Network penetration what uh consensus clients they're using what MAV boost relay is they're using things like that which is really really cool uh now I want to point out one thing you guys know that Kraken was forced to withdraw all their validators right well not all of them all the uh validators that belong to us-based persons and it's been a lot of validators actually you can see here that Kraken actually started off just before Chapel went live at 7.1 of the network now they're down to 4.4 of the network which is a pretty massive reduction that is a 2.8 percent uh reduction in their validators and I don't think they're done yet because obviously there's the queue that they have to to deal with here now I hear from some uh some reliable sources that have been tracking where the Kraken eth

has been going that a lot of it has actually been going into a solo staking or other decentralized staking pools which is obviously very very cool to see but of course some of it will have gone into other services other centralized services like coinbase and other staking lsds like like Lido uh but yeah it's great to see that that eighth has been restaked instead of sold and I did say that I believed that that eighth would be restaked with another provider most of it would be I didn't really think that it would be sold and and that goes back to I guess like the overall take that I had that I did I didn't believe that the eat that was withdrawn from the beacon chain would really be sold it'd be changing as part of that great reshuffling but it's still early days right it hasn't been that long since

chapella went live I mean it's been about two two weeks now I think since chappella went live this is a month-long year-long kind of process of reshuffling the the queue here is is I believe the entry queue right now is 18 days or something like that so if you were to to deposit 32 Ethan spin up a validator today you would be waiting 18 days to for that validator to actually become active on the network and same is true I believe for the exit queue here so if you wanted to withdraw and that's just the natural kind of effect that's a natural uh thing that that um Eve staking has integrated in it you guys all know about the deposit and withdrawal cues so no surprise there uh but yeah I just wanted to clarify a bunch of those points for you now moving on to the second last thing about

staking is a massive announcement from etherfi today so they have announced something called operation solo Staker this program has one simple goal to empower individuals around the world to become solar stickers now there's a thread and an accompanying blog post TR um sorry a company website here I should say with a bunch of information on the website as well but basically why they're doing this is because their decentralization is a primary objective for them they won't compromise on building a non-custodial and decentralized protocol they will do the right thing by the for the community for the ethereum community and then they say what is it well the the program offers solo stakers a free machine to run an ethereum validate a node and the 8th to stake it their partners avado and dap

node will provide the solo stickers the hardware and opal will set up their DVT Tech on every node the goal is to get machines in the hands of stakers all around the world many of whom do not have access to robust staking technology right now the staggers will earn a small profit running the machine to pay for internet food or whatever they want and then it continues on in this thread here now you can click this button here become a solo Staker and apply uh and give a bunch of your information here and apply to to this gives initiative here and maybe you'll get chosen it is not open it's open to everyone but it's not like everyone is going to be chosen obviously because they're a uh there are a bunch of um of uh of expenses involved with stuff like this and and obviously

it's uh it's it's something that's being funded by other teams involved here but some of the criteria include experience staking and be technically competent so you you you should I mean whether you're I mean you're probably not an existing solo sticker but even if you've used like rockapool that would that would suffice yeah and maybe you've uh watched some videos on or read guides on it and gone through like test nets for staking that would also suffice um you need to have a pretty solid internet connection uh with uh 250 100 bandwidth with no cap yeah that that seems pretty excessive to be honest uh I run so I have a very high download speed so I have one gigabit per second down uh but I don't have a hundred megabit per second up I have 40

at Max up and I'm running as you guys know multiple elcl client combos with many validators on the same network and yes okay I'm probably saturating my upload uh bandwidth here but uh it's still working and it's working fine I I as you guys know just just to remind you I have my archive node box which is running an elcl I have my rocket pool uh box which is running an elcl I have my uh Proteus which is also running in LCL and my solar sticking box which is also running that and I'm running opal uh obel's um software on mainnet as well and as I said I've only got 40 megabits if that I think it really realistically hovers around 30 megabits up so even if you don't have that I would still apply

because I don't think that's a that should be a strict requirement here but I think they're obviously trying to optimize for the people with the best connection so they can test this out and maybe open it up to the more people later uh unfortunately you have to be doxed to the etherfi team so I'm sure they go They're going to want to know who they're dealing with you are but you won't be docs publicly so if you are an Anon online uh you only be docks to either fight team and there is a bunch of agreement on program terms that you need to sign as well as is natural right but so but yeah I think this is really cool uh there's only 12 spots available I should also um uh let's put that put that information out there too but the reason why I think this is cool is

obvious right the more people solo staking uh the more people we can get involved with by by helping them along and by doing it and providing them the hardware uh the more uh I guess like those people will be able to teach other people how to do it right and the more it opens up the uh I guess like idea to solos taking to more and more people I've actually had the idea for quite a while to make something or at least get involved with something that was similar to avado and dap node where you create and like a proteus right where you create this little box and you just commercialize you can basically make the apple of staking boxes where you make it look really really good you make it look really attractive you make it look like a product that people actually want to

own and they can run run it as just a normal full node or they can run it with a full node with validators on it and it just sits in their house becomes a conversation piece it'll be designed really cool but unfortunately I don't have the time nor the expertise in Hardware to do that um so I'm hoping that other companies step up to the game and do that as well but for now we have a vato adapt node which are great there's nothing wrong with them and we have initiatives like etherfies operation solo Staker in order to get more people solo sticking here so you can go check this out I'll link it in the YouTube description below all right last stop here was just a new knowledge base on staking that I wanted to share from the East dagger Community now this has been specifically made by

someone called a space cider who is an Australian dude with a big beard I've been told I'm pretty sure I've met this person before I think I met him in Denver but uh I I wasn't able to to kind of verify that uh but yeah this website is magnificent this is awesome this is like you know what this reminds me of this reminds me of ether we're not when um Eric and I put together a bunch of documentation around ethereum for ethub and people were loving it because they could get involved they could edit themselves on GitHub they could learn all about ethereum well this is dedicated to staking and it has so many uh kind of uh so much information here that it's actually mind-boggling I was going through it before and looking through it all I was like oh my God this is so helpful some of the information

includes you know like just getting started right help like such as my validator is offline what do I do you click through to here and then you get like a straightforward answer of um of what to do go back look at something else what are the hardware requirements for for staking here look at all this information this is crazy right like I was going through this before I was mind blown by the amount of information that was here and if you are thinking about start starting staking whether it be as a solo Staker or rocker port or any any way else where you're going to run the hardware and software yourself and you're a bit worried about it I mean just hit up this website right I'll link this in the YouTube description for you below to check out but just hit this up and read through it and you'll have like

pretty much all of your questions answered they're even um kind of uh answering questions around downtime like are you worried about downtime well read here and you won't be worried anymore are you worried about slashing read this you won't be worried anymore um and then I mean every seriously every question that I could think of with regards to staking has been answered here and of course as I said you can also edit this on GitHub yourself if you feel like there could be more information added here and I'm sure that there is going to be more information added over time by space cider and and coher uh and iridian I I believe is also involved in this uh doing all the work here so this is just absolutely great and and on top of this they're actually planning to get this translated into different languages so right now it's

available in English and Spanish but they are looking for volunteers to translate this into other languages so if that's something that you would like to get involved with you can contact them I believe that there is yes here there is a get involved section where you can contact them you can join the Discord um and and you can also visit the how to contribute section here for full details on that there so I just wanted to shout out this because it is one of the best if not the best staking resource websites that I've come across so big shout out to the east dagger Community big shout out to space cider and iridian thank you for doing this I'm going to be using this and referring to it a lot going forward especially obviously as someone who is very involved with staking but also as someone who's a big

advocate for staking and wanting to just send people a a page that they can read to answer their questions without me having to repeat myself a million times this is an amazing resource so kudos to everyone involved with getting this off of the ground Right Moving On op uh Labs has put together a resource for op's uh mainnet upgrade uh called bet sorry for op's next upgrade called Bedrock so it's fast approaching to be deployed to mainnet here and they put together a resource that is the source of Truth for the upgrade timing project status and relevant upgrade guides you can check it out here if you're interested in that here being the link that I'll link in the YouTube description below it is also available at uh this URL uh optimism.io Bedrock Dash upgrade but as

I said I'll link it uh and it's got all relevant information in here for you now this information I believe is for uh Developers for people building on top of optimism for people just interested in the network and such and such stuff like that but there is currently no set date for Bedrock the Bedrock upgrade I have speculated that it's probably going to be uh released in May uh we'll have to see if they they give a date there it could be as far but as far as June I don't know uh but we'll have to keep the tabs on that but you can keep tabs on that yourself by going to this link which I'll share in the YouTube description below all right last up here we have an update from goon analytics so they've announced some major progress on the Dune API live

which is now sorry the Dune API which is now live for all users uh they've revamped subscription planned and subscription plans and more power for free users uh so here's how and there's a thread here on this so the Dune API as I said is available for all and you can go play around with that if you're interested in that there are subscription plans available too you can see here plus and premium plans that allow you to query and track faster and get involved and and build stuff there uh there is a credit system as well that's been integrated and a bunch of other features too which you can read in this uh this thread here which I'll link in the YouTube description below and this is great I mean do analytics as you guys know I mean actually disclose I'm an investor in them but you guys know

that it's one of my favorite analytics um websites out there I love following along with all the dashboards that people create I love following along with all the the data that is just available to us because ethereum is transparent right and we get all this data from both the ethereum layer 1 and ethereum layer 2 and everything that surrounds that it's just a great way to keep up with watching like the growth of these networks uh the adoption of them all that good stuff there so you definitely can go check this out I'll link it in the YouTube description below for you to do so all right I have a few minutes left one thing I wanted to talk about today uh not particularly regarding the market but also just uh a funny thing that I've noticed so post Chappelle obviously the price of of of

eth went up a fair bit I think it went to like 2200 or something like that then it came back down to like 1800 or something and now it's back up to like what let me out let me have a look at the price right now what is it it's like almost 2k games like 1965 right at that time of recording um what I wanted to quickly say was that I've said it before I said this months ago that I would on the refuel I would say if I thought that we were starting a new bull market again um I could be wrong when I say that but like I I'm not going to say it until I'm pretty confident that a new bull market is back and it's probably going to be obvious to to people at the point that I say it but I'm sticking to that but

what's happening right now and I just want to reiterate this for people because I had if people ask me we're in what people call a crab market which is basically a sideways Market where the price can go from like a thousand to two to over 2 000 back to like a thousand right it can do that like don't don't get me wrong there but it doesn't actually mean anything right what it's what it's showing is that the market right now is just existing of the same players that have been around for quite a while people are slowly buying the long-term investors are buying they're stacking they're just saying all that stuff there Traders are trying to make money anywhere they can with any volatility that they see that's why you see these there's kind of moves playing out because that's volatility that Traders like to take advantage of uh but

in terms of like a long-term investor mindset on this sort of stuff the opportunity uh for you is to just DCA right I'm not trying to give investment advice here but I've had people ask me a lot and I figured I'd just cover it on the refuel I mean if you're still here if you're a long-term investor then you shouldn't be worried about these day-to-day week-to-week moves uh at all I mean it doesn't really mean anything at the end of the day right it could be at 2500 next week and then it could be at 1500 the week after right like if you're dcaing in if you're if you're averaging out your buyer price that's all you you can really focus on because you're not going to catch the the local bottom you're not going to catch the the you know you're not going to sell the

local top because if you start doing that you're a Trader you're no longer a long-term investor so just something that I wanted to clarify for people because as I said I've been getting a lot of people pinging me about it and that is my honest answer and as as I said I will tell you when I think the bull market is back when I am very very confident in that but we're not there yet we're very far away from that actually um there is there is I think I've mentioned these before on the refill there are two types of capitulation when it comes to markets especially the the crypto Market there is price based capitulation which I believe has already happened I believe eath bottomed at 880 in June of last year and I believe BTC bottomed that what was it like 14 000 something in November after the FTX

collapse I don't believe we're going to see those prices again uh and uh uh you know if I'm wrong on that whatever but like I'm just giving you know I'm just putting out my belief here as I said it's not investment advice I'm not saying it's 100 the bottom but I believe it is and secondly what we have to meet is time based capitulation now for BTC it hasn't actually been very long since its bottom November to April is is is only a few months right it's not a very long time for eth it has been longer but I think eighth you know it did go down to like a thousand dollars after the FPS collapse or something like that or 1100 I can't remember exactly what it was so if you want to count that from when BTC actually bottoms there is still if you

want to if you want to say when is BTC going back to its new all-time high you could instead there is still at the very least another 18 months left of this kind of time-based capitulation or this accumulation that we see for for BTC and and and probably for eth as well right so that's why people say oh well the bull market will be back you know probably late next year late 2024. that could be the way it plays out if it plays out similarly to what we've seen in the past so I don't know how it's going to play out but that's exactly why I've told you guys that I I don't believe we're anywhere near a bull market I'm not going to say that we're in a bull market until I'm very confident we are and one of the signals that I use is how long

have we been in this kind of like sideways crab market for we haven't been in it near long enough yet and any kind of price movement that you see this year I believe is just due to that kind of like ranging that Trader volatility that kind of Market trying to figure out what it wants to do sort of thing and if if we're going to enter a bull market it's probably not going to happen until sometime next yeah as I said non-investment advice just general kind of clarity for people who have been asking me about those sorts of things but on that note that's going to be it for today so thank everyone for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up subscribe to the newsletter join the Discord Channel and I'll catch you all tomorrow

thanks everyone