Obol DVT, Coinbase x Optimism and more - The Daily Gwei Refuel #545 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of The Daily gray refuel where we cut the latest news in ethereum ecosystem I'm your host here and this is honor and today's the 23rd of February 2023. all right everyone let's get into it so kicking off with another round of notes from the eip4844 implementers call uh put out by Terence as usual uh they went over a range of topics that you can find in this Twitter thread here which I'll link in the YouTube description below I did Cover the one major update I think a few days ago with um uh that jazzek was talking about when it came to blobs uh and Terence covered it here saying the most significant change uh which was decoupling blobs AKA free blobs has been merged uh once uh the the developers have a climb implementations they'll run another round of network

simulation to compare results between coupled and decoupled approaches and then there's more updates here that you can read for yourself now I did mention I think a few weeks ago that the 4844 spec is still changing it's not frozen and that's totally fine it still puts us uh I guess with relatives certainty of being able to launch this thing later in the year if not you know worst case probably early next year but uh it's coming it's making a lot of progress moving along uh I think a lot of developers are working on it now given that withdrawals is pretty much done I would say uh because we're going to be forking sepolia on the 28th of um of Feb and then just run through the motions of doing girly and then we will do mainnet uh hopefully late March there for that

but you guys know all about that anyway I'll link this thread in the YouTube description below for you to check out all right so superface had a great tweet about uh ethereum staking where he said 226 out of the 523 000 validators on the beacon chain have been slashed uh there is nothing to lose sleep over many slashings have occurred during failed system migration and and so here are four emerging best practice tips to avoid this now the fact that it's only 226 out of 523 000 is pretty good I mean I don't know what that is in percentage terms but it is like 0.00 something percent right it is a very very small number of validators that have been slashed now you remember that slashing

and kind of and going offline are two separate things if you go offline you suffer What's called the inactivity penalty or inactivity leak uh whereas if you get and that won't kick you out of the active validator set until your balance goes to 16 eighth um whereas if you get slash you're automatically kicked out of the validated set and because withdrawals aren't enabled yet your validator pretty much becomes useless and your eighth is stuck there until withdrawals are enabled so because of this obviously you know we would like this number to be zero because a lot of the things that happened here weren't actually validators trying to be malicious uh a lot of the time it was them trying to set up or people trying to set up redundant setups for their validators and accidentally having two of the same validator running in the same uh running

at the same time which resulted in a in a slashing event now as I said super Fizz has four emerging best practice tips that he's put together here about how to handle this now as I just mentioned the biggest thing is that redundant setup that leads to slashing that what you want to do is if you're trying to I guess migrate to a new setup is you want to wipe your entire old staking machine don't use the chain we don't reuse the chain data to save time reinstall reformat and reduce the odds uh that a lingering service will sting you and you can use doppelganger protection as well which um is actually built into the rocket pool uh smart stack which is actually I've got it enabled um and it kicks in even if you go offline but I uh sorry it kicks in

yeah even if you are offline so it's it's pretty good right I I actually really love it um and then the third one is take your time and act deliberately write out a checklist for your process and follow it add in lots of 15 minute just watch buffers to become aware of problems uh and if you feel butterflies in your stomach and out um about any action just step away maybe it means I'm plugging everything before you step away take a small loss and come back when you found support and thought it through then improved your plan when you're confident and superfuse does make a point to say that it doesn't matter if you're offline for a few hours it's better than accidentally getting slashed for I know even if it's just one eighth uh which is seventeen hundred dollars if you're offline for I guess like a few I

don't know a few hours or something like that you're not going to lose much from the inactivity leak at all really uh and you're gonna make that back as soon as you come back back online anyway so it's really not worth kind of worrying about that but I'll link his thread in the YouTube description you can check it out and there are some replies to read through as well right sticking with staking so opal Labs has announced today or shared today that they have been running the first distributed validator cluster on Main that ethereum since December 30th with a 98.6 efficiency rating uh and they continue by saying as this is the first phase of our road to mainnet it's time to discuss our design philosophy and approach and I have an accompanying blog post and through the thread here now they seem to have keep this secret I

don't think they had revealed this publicly so uh since they launched this then it has been almost two months since they've done so uh and according to their blog post it's run quite successfully here which is really really awesome and actually link to the dashboard where they're um where they are kind of looking at the the validator effectiveness and stuff here as well so what does this Mark while they say this marks the first phase of obel's Journey to bring bring to bringing the distributed validates to mainnet ethereum uh and then they go through things like the design pillars their adoption strategy uh the V1 roadmap and all that good stuff surrounding that as well there which you can obviously read in the YouTube description below uh so I wanted to focus on one thing here where

they said uh in their adoption strategy that they believe rolling out DVT will be similar to how it was built in the open constructive and highly collaborative for DVT adoption will take place in waves similar to the rollout of E2 for all of our phase zero phase one phase 1.5 and phase two people if you've been around long enough you know that the original eth2 road map was phased out like this uh well okay the phasing the phase terminology was actually phased out but there was phase zero one one point five and two and if I remember correctly phase zero was the beacon chain phase one was um was the uh was data was sharding I think or the first part of sharding 1.5 was the merge and two was ah I can't remember now I'm screwing it up I think

two was was a bunch of other things but as I said these all got phased out and now basically we just have the ethereum at the vitalica Shared a bunch of times but that was a nice little throwback there from from oval but yeah you can go read this whole blog post for yourself oh of course I'll link it in the YouTube description below for you to do so but great to see that opal has been running their technology live on mainnet and it seems to have worked quite well and we're privileged to get a I guess a nice lengthy juicy detailed blog post here running through all of that as well as a tweak thread which you can check out it'll be linked in the YouTube description below all right last stop on staking here we have an update from swell so the newly

improved swell is coming in April of 2023 there will be a reward bearing LST so it seems they're trying to change the terminology here from LSD to LST and obviously LST stands for liquid staking token instead of LSD which stands for liquid staking derivative I understand why you would do this obviously LSD can be read as referred to the drug and it's and I guess like it's been memed as that and it can have maybe negative connotations attached to it because you can imagine an uninformed regulator looking at it and they're like why are these people talking about lsds like is this drug money and you know you know that's going to happen right you can see that happening so I I think that that swell is trying to change the narrative

here or change the terminology I should say and and just say LST and it either works I think LSD is going to be sticky though because of that Meme ability but if you say the term LST it means liquid staking token and then they continue by saying scroll is built for composability be fully fungible with vetted node operators and Integrations with a top defy protocols and you can read about this in the short little blog post here if you would like and of course you can join their Discord and follow their Twitter for future updates yeah I'm super excited guys we're so close to withdrawals there's going to be so many more staking things happening around that not just uh swell but obviously DVT uh the massive rocker pull upgrade coming as well where you can basically spin up a mini pool with just eight

eighth instead of 16 eighth uh a lot of these other staking services that are in stealth right now or at least maybe not in total stealth but are kind of under the radar are going to be coming online and we're going to see a pretty massive spike in Eve stake I believe I I think it's going to lead to millions and millions of more eth being staked uh and it just and it's kind of hard to know what the terminal kind of eatstate will be or where it'll slow down it will depend on the yield of course but I wouldn't be surprised to see maybe 30 million Eve Stakes this time next year like that wouldn't surprise me at all it's pretty much almost double what we're at now so we're gonna have to see how that plays out but yeah I'm obviously super excited to watch that

all unfold uh there all right moving on so I spoke about kind of ethereum test Nets yesterday and about how there was a bit of drama around it and franzi here from uh the ethereum foundation I believe put out a tweet kind of clarifying something that I forgot to mention yesterday so the two test Nets right now that are live are girly and sapolia uh and they're actually they actually have different purposes so girly is only meant for I only meant as a test net for validating and staking whereas sepolio is meant as a test net for applications so because of this I guess probably confusion or I guess because people don't know this it's led to a lot of confusion but honestly I don't think this is a well-known fact

and it is on the ethereum.org developer section here but I don't think this is a well-known fact even among a lot of the developers out there so just wanted to give a reminder here that or a shout out here that the the two test Nets are for different things girly for validating and staking uh whereas apolia is for applications and also on top of that I believe Gurley is actually scheduled to to be decommissioned or deprecated by the end of the year which means sepolia will be the uh sorry and and actually it's written here and will be replaced by something called holster which I guess is another test that that's going to be uh going to be uh spun up there uh which should I guess solve a bunch of these issues around us speculating on on test net eth and I guess like that's

another massive risk there is of holding goat eat or girly eat is that it's actually getting deprecated so you're not going to even be able to to sell it or use it or anything but the funny thing is is that what does that deprecation look like because the clients are out there are people just going to keep running the girly test net because that uh because of the fact that it's got value attached to it and does it end up becoming its own little mainnet I don't I don't know right all its own little new network that would be kind of funny and bizarre but I could see that potentially happening uh depending on the value of of girly eighth it's a coordination issue though like it would require people to get together and be like okay we're going to run these nodes and uh we're going to

have all these things on here have these Bridges we're going to have exchanges blah blah so the coordination is the biggest issue there rather than obviously forking the code uh but yeah just wanted to shout out there the girl is actually uh only a test net for validating and staking and will be deprecated this year in favor of another test net and so polio is the test net for applications and it's all explained on this ethereum.org page which you can check out I'll link it in the YouTube description below all right so coinbase and optimism are teasing something big and not only them but there's been a lot of things I mean I woke up to this today there's a lot of different projects uh kind of tweeting out this blue circle and saying that there is going to be an announcement uh today basically and bankless is actually

doing a live stream about this at 9am eastern time which uh it's maybe already by the time you've watched the refuel maybe the announcement is already out because I think the refill goes live about half an hour before this this happens so you may already know what this is but I want to do something fun where I speculate what this is by connecting some dots and see if I'm right so I think if coinbase alone just tweeted out like this it might have been harder to reach this conclusion but coinbase tweeted out this blue circle now optimism has their red circle as basically their official emoji and they've been using it for quite a while now so even if optimism didn't tweet out anything I still would have maybe drawn a conclusion here now in saying that arbitrim uses the blue our Circle as

well right so I would have first gone to Arbitrage like okay something's happening with potentially with arbitrary and coinbase right now but I think uh you know optimism tweeted out as well so it's obviously obviously you've got something to do with optimism and then my mind went to okay well what could coinbase be doing with optimism well they already support optimism they already support deposites and withdrawals they already support the op token um and okay so what's the next logical thing that they could do well optimism has something called the op stack that I've been talking about on the refuel for for a while now which is basically a way for anyone to create their own L2 now does that make sense for coinbase to do it like is coinbase going to create their own L2 what's it going to look like right is coinbase going to have a

token attached to it uh their own token I highly doubt that by the way if from just from a regular regulatory standpoint that wouldn't fly so I doubt that's going to happen Okay so what does a coinbase L2 actually look like well I believe it would still use eth as a fee token especially because the op stack is built with that in mind so I mean obviously awesome it would be a roll-up Straight Out of the Box awesome is it going to be KY seed I don't know I don't think so I don't think people are really interested in kyc defy uh it doesn't even it's not even D5 it's kyc really but that could happen right it could be there could be parts of it that are I I don't know um and you know what's the architecture you're gonna look like who's going to be validating on the

network is it going to be uh just coinbase doing it is coinbase going to be the only sequencer or are there a group of people doing this you know you can speculate all you want and as I said like most of you are probably watching this after the announcement's already public but that's my conclusion that I came to is that coinbase seemingly is launching its own L2 uh using optimism's technology which is super exciting obviously for both optimism and the ethereum ecosystem because obviously the L2 is going to be on ethereum and it's a huge uh vote of confidence not only for l2s but also for ethereum as a settlement layer because l2's I mean the way the the the very heart of an L2 is the fact that they settle their transactions on ethereum him and I've said for a long time that I believe

ethereum is going to be the global settlement layer for everyone right for individuals for companies for cop for corporates for institutions for governments it's going to be that global settlement layer that neutral censorship resistant global settlement layer that everyone can um I can kind of like settle onto now coinbase creating an L2 like a massive company like coinbase obviously one of the biggest in the space creating an L2 is that massive vote of confidence for ethereum for optimism for l2s generally and that would be super exciting to see now of course if I'm completely wrong here and completely off base and if it's nothing burger just like how those are two fists bumping together the other week where the D5 protocols um we're teasing it on Twitter if it turns out to be nothing burger then just ignore everything I

just said and we could pretend that didn't happen but I I think I'm on the money here I really do uh just because of the fact that you know what I mean optimism does one thing right I mean they build L2 infrastructure uh and Coin and and coinbase uh have been doing a lot of stuff with ethereum lately they've been working directly on EIP p4844 which is scaling layer twos they've been supporting layer twos they have someone who works there Jesse who I've talked about a bunch on the refill before just being very public about support of l2s so it just makes logical sense uh for me there and and I I hope I'm right here I and I'm really really eager to see what the details are it's actually getting announced at 1am my time so I'll be awake for this it's always funny when I get up in the

morning and I see the announcement and I I quote tweeted and I did like the the looky eyes and then people were saying did you just get up I'm like yeah yes I just got up Australia is a real place guys like we're bloody ahead of you by so much um and it kind of all happened and then I went through my Twitter feed and I'm like okay okay this is exciting and then I obviously I caught up and formulated my own thesis in my head here uh but yeah I'm super excited I just I I want to know I don't really care if I'm right or wrong but I just want to know what a coinbase L2 would actually look like right like as I said are they going to be the only ones running the sequencer are they going to be the ones running

the validator or is it going to be a group of people uh I don't think they're going to have their own token as I mentioned that just doesn't really make much sense to me using Avis the Fate token is also a massive vote of confidence for eighth and eighth value accrual and I I don't even know what's going to happen you know is is the op gonna pump is eth gonna pump who knows right I don't know what the market reaction is going to be to this but regardless of any of that coinbase launching in L2 is going to be a massive deal and other exchanges may follow and other big companies may follow in this space so watch uh watch this space I guess and we'll see what happens if you're watching these before the announcement uh well I guess like you're probably one of the very few and I'm

sure uh we know what it is at this point so yeah hopefully I'm right on the money here but as I said you'll be able to watch this bankless stream at 9 00 a.m eastern time which uh you've probably watched already but anyway it's kind of hard for me to record these things and be and talk about something as if it's happened even though it hasn't happened for me yet it's still three hours away from when I'm recording this it's 10 p.m right now so anyway we'll see we'll see all that happens there but as you can tell I'm super excited all right so a pretty exciting announcement out of uni swap today so they announced that you can now buy nfts with any single erc20 token so if you don't have enough eth it doesn't matter either to cover the gas fees obviously you can use any erc20 token in your

wallet to completely trans to complete your transaction without swapping to eth first so uh actually I don't actually uh I should should have clarified this I don't know if this applies to gas fees or if it just applies to using Eve to buy an nft and obviously having to use either to pay gas fees as well but essentially what this is doing is it's uh abstract it's abstracting this away and using the unusual back end or the unisop liquidity back end to essentially uh swap that the rc20 token let's say it's usdc for eighth in the background so the person get that that same nft still gets eighth but you are paying in usdc so it's just all abstracted away in the background so they've explained it yeah this is how it works it efficiently um routes your erc20 token and swaps it

for eth and completes the trend transaction with soft eth so they said currently only single input tokens are supported but you can expect future releases will bring the capacity to bundle multiple erc20 tokens into a single single purchase now obviously this is a this is a killer feature right this is a huge deal this is something that I've thought I've talked about for a long time about how eth will always be used in the background on ethereum but we need to abstract that away from the user we need to allow users to be able to pay for things in any token that they want now in saying that I feel like the only things that are really going to be used is money at scale are going to be on ethereum are going to be 8th and U.S dollar stable coins maybe potentially other uh Fiat stable coins but

definitely just Fiat stable coins and either going to be by and far the most liquid tokens used as money on ethereum uh maybe you might see some uh Bitcoin activity there like wrap Bitcoin but it hasn't really taken off as people thought it would and I feel like if it's just an easier money to use uh and it's just easier for accounting purposes as well well but obviously stable coins are even better from that point of view because it's it's stable right so yeah but the the thing that units has launched today means it doesn't really matter what you use you can use it and you can use it to pay for whatever nft you want it's interesting that they've done this uh with nft so quickly as well because as I as I mentioned I think a few weeks ago unisop seems to be very

interested in going all in on nfts and they've obviously got uh uh a kind of um uh competition for this but the the kicking goals here with this and I think that they're going to do a lot in the nft space just out of brand awareness and marketing but also these killer features that they are shipping uh here but anyway you can check out this announcement for yourself it'll be linked in the YouTube description below all right so synthetics V3 is now on mainnet so you can see this announcement post here uh describing exactly what synthetics V3 is with a bunch of pretty Graphics as well you can see here this nice little graphic of what the V3 core looks like and some examples and things like that and the main features are also detailed in here so that as I say

synthetics V3 has been successfully deployed on the ethereum mainnet and optimism after a thorough security audit from open Zeppelin Ico is0 and macro though this is certainly a big milestone for synthetics it should be considered a beginning and not a conclusion uh we'll be progressively enabling functionality and rolling out upgrades from here as synthetic has too many real world considerations that can't be anticipated in a laboratory setting yeah this has been a long time coming I remember when synthetics V2 launched and that was a big deal and obviously that they um they kind of migrated uh to optimism and have been building on there for a while and now with synthetics uh V3 uh they've done a bunch of other massive upgrades in order to improve the synthetics ecosystem here and it's great to see this because synthetics is one of the

older D5 protocols that as I've mentioned before got stung by the high gas fees on ethereum mainnet then had to move uh to optimism or was basically the first app on optimism and I've done a lot of great work within the optimism ecosystem and a lot of apps that have built off of them such as Lyra and Quinta and that's they've been getting good traction as well I'm curious to see if synthetics V3 is going to be deployed to any of the other l2s I would say that it's a no-brainer for them to deploy it to arbitrim uh obviously arbitrim has a big ecosystem as well and it's somewhere where Lyra already exists um and they're using GMX right now on arbitrim but I guess if synthetics launched on there Lara could use synthetics as well so I I feel like they're going to launch on

arbitrary maybe they've already announced planes to do so I haven't kept kept up too closely with that but it feels like a no-brainer to me for them to do that but for now it is live on ethereum mainnet and optimism not fully functional yet in terms of features that they plan to deploy but definitely something that you can go uh play around with and all the relevant information is in the uh blog post which will be linked in the YouTube description below all right so ingonyama has launched their ingopedia V2 which is a Community Driven and comprehensive collection of info related to zero knowledge proofs uh so yeah I mean I looked at this before and I was like wow okay if you want to learn all there is to know about zero knowledge proofs and you have a lot of time and you like reading and you like

uh I guess like podcasts and videos well then this is for you I mean they have links to everything guys it's crazy like look at my screen right now okay let me just go to one of the sections I'll go to protocols look at all the links they have in protocols like this is crazy and then each one of them is going to take you a while to read so maybe you are heading to Denver and you have a long flight ahead of you and you're a reader on a plane I'm definitely not a reader I can't read on planes for some reason I think it's weird but I I don't generally read on planes but if you are a reader this is something to maybe read I mean obviously if you're on a plane you can't do this online but you can download these pages and things that download

button up here yeah you can print this book AKA you can download it save it as a PDF and bring it with you if you're on a long flight or maybe you just want to go through it on an iPad or something like that or a Kindle but feel free to do so there me personally on my flight to Denver which is 14 hours the first leg and then I think two and a half the second leg or something like that I'm going to be playing video games I have a steam deck and I have a switch and I've been playing both of those I've already loaded up the games I'm gonna be playing um one of them I'm really looking forward to that comes out on the 25th of Feb uh is octopath traveler 2. it's a jrpg I I I'm so happy it's coming coming

out like two days before I fly out I'm gonna be doing that uh but anyway tangent there again if you're not like me and you can read on a plane then this is definitely something that that is interesting uh to to get your I guess uh hands on and it is going to be technical I mean it's ZK stuff of course it's going to be technical but I wanted to hide it because I feel like it's the perfect thing uh for people to check out if they want to and of course this will be linked in the YouTube description below for you to check out and just a reminder as to why you should pay attention to this um ingonyama I should I should um I should also disclose I'm investor in them they're building Asics for for zero knowledge proving and they've been at it for quite a while so

if anyone is an expert on not only zero knowledge stuff but curating resources that let you learn about all this stuff it's ingonyama I mean there probably is only a select few other teams that would be able to Pro to create a resource like this uh so yeah you can trust that it is a lot of good information in there all right so last up here we have uh this Twitter account maker Lee who's uh she had a screenshot saying that sign in with ethereum just got added to Shopify and you can actually see this here in his screenshot that it's there's a connect wallet button here uh if you are holding a certain nft uh you'll be able to get a discount if you connect your wallet so let's say you're holding an nft for this beanie let's just call it beanie nft and you connect your wallet

or you get an automatic 15 discount from uh from holding that nft this is cool like I you guys know my relationship with nfts but this sort of stuff is what I like because it's basically a way to nft gate certain things and being able to do it and being able to get people involved and more involved with your I guess e-commerce uh platform and get them coming back as well because you can do this and then you can send them another nft on chain and say hey thanks for buying uh a beanie or thanks for spending x amount of dollars here's a discount code as an nft for the next time you you know you um you you purchase from our site so instead of obviously going to your email instead of it being a code it goes to your wallet and you can have that portable with you

as well which is I think is really really cool can can follow you you can send that maybe you could even sell it right like that there could be a whole Marketplace for discount codes it depends if it's a soul bound token or not obviously but if it isn't there could be a market for for discount code which I think is really really cool so um and and and and there is kind of a market for that already but it's more of a it's not really a an efficient market it's not really one that's very scalable or liquid so having something like this or would definitely make them a lot more scalable and liquid here and you can go check this out it's on shopify's dev platform it's called tokengating and they've got a whole kind of explanation of what this is and how people can

actually integrate this into their own Shopify apps and and site here and for those of you who don't know who Shopify is or what Shopify is it's a e-commerce platform the biggest by far on the web you have probably bought something from a Shopify hosted website I mean you've definitely bought something from a shop like fire hosted website before um they're massive like I can't it can't be understated how big of a deal this is um and obviously it just requires the the store owners to integrate this but I'm sure they will over time and it's great to see Shopify uh supporting this yeah uh but yeah I think on that note that's it for today's episode 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 newsletter join the Discord

Channel and I'll catch you all tomorrow thanks everyone