Shapella now live, Login with Farcaster and more - The Daily Gwei Refuel #566 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of The Daily gray refuel where he cut the latest news in the ethereum ecosystem I'm your host Anthony sosana and today's the 13th of April 2023. all right everyone let's get into it Show shapella is now live on the ethereum network as we all know the upgrade seemed to have gone through quite smoothly I think there were only two issues really one of them was with Lighthouse so the lighthouse client where it um basically maxed out your CPU usage uh leading to a crash in the in the client I believe or at least missed as testations and block proposals so there is a new update out to address that so if you're a lighthouse user go check that out and I believe there was an issue with the prism client uh it wouldn't propose Mev boosted blocks for

some reason and there was also an update out for that as well so if you run either prism or Lighthouse then be sure to update uh those uh clients there but other than that it seems to have gone through very very smoothly and really it seems to have played out exactly as I believe myself and a bunch of other people have predicted now what I mean by this is that obviously uh at time I guess of recording of this video the eth price has gone up since withdrawals were enabled and most of the withdrawals that are happening are actually happening uh from from Kraken so we know that Kraken needs to or it was being forced to unstake all of their us-based eth that they've staked right so there is no way around that for them because they're legally required to do that and if you

go to this dashboard here on raider.network you can actually go to the network overview Tab and then go down and you can see the execute capacity and what's taking up capacity and then you can click the execute distribution pie chart here and you can actually see that Kraken accounts for 80 of the exit queue right now so really the majority of the withdrawals are only happening from Kraken uh they're not happening from uh anywhere else really I know that Lido hasn't enabled withdrawals yet that that's they're going to do that in around a month I I believe um uh but you know if we just look at this right solar stakers aren't really withdrawing and and the crack withdrawals doesn't necessarily mean that it's going to be sold that eighth because I'm I'm sure a lot of those people will want to keep staking so

they'll just go to another service to stake and that's why you can actually see right now in the activation Q distribution or the deposit Q distribution what it looks like so you can see people are going into a bunch of different staking Services here uh obviously like uh there's a big chunk of unidentified validators hopefully a lot of that is solo validators of course then you have Lido rocker pool Ledger live okx and a bunch of others CR so that's a really cool dashboard which of course I'll link in the YouTube description for you to check out but overall a very successful uh shipping of a new major upgrade a new major feature to the ethereum network this completes the 1.0 version of ethereum proof of stake obviously I've talked about how I think there is going to be a lot of other upgrades coming to proof of stake

over time and I actually spoke about this on the bankless episode I did uh just today with Justin Jake and Tim baiko where I said that we're almost kind of looking at a 2.0 for ethereum proof of stake at this point where 1.0 would work fine line uh and and the network would be fine if we just stayed on as it is today but there are a lot of upgrades that people would like to see um put onto the network that's got to do with proof of stake and I've I've talked about these in in the past single slot finality and secret leader election uh PBS things like that they're all critical in my mind I don't think they're nice to haves I think they're must-haves so I believe that they will eventually come to the network so you know if it's not going to all come at

once but I I do believe that while we've shipped 1.0 of proof of stake there is still a lot of improvements to come for proof of stake ethereum so we've got that to look forward to of course now I put out this tweet uh today where I basically said now that Chapala is is shipped you know what's next well obviously the next major feature ad is eip4844 which is coming as part of the dencoon network upgrade hopefully by the end of this year and that's coming with a bunch of other eips as well such as the eof EIP that I've spoken at before and and a few others you can go check that out on GitHub um and then yeah I've spoken about things that are coming next year year as well such as hopefully vocal trees and possibly PBS I I don't know if PBS is

that close but we'll see right but work obviously continues on all of this and there is uh there is no slowing the ethereum train basically uh and other staking related news or Chappelle related news you can see here that etherscan now displays withdrawals so you can see uh in their thread here how to check out the Beacon chain withdrawals page to see all the withdrawals happening both rewards and uh the 32 stake obviously and the number number of withdrawals in each block are shown on each block page as well which is very cool uh coinbase announced that their uh State uh unstaking is now enabled on their website so if you have a coinbase account and you want to I mean there are a few there's actually a couple of ways to play this so it's funny because if you if you staked with

coinbase you can exit right now but there is actually a um an Arbitrage opportunity that I don't think a lot of people know about where people are still selling CBE into the market rather than going through coinbase and I think this may be for a few few reasons one some people just don't understand that they can actually go directly to coinbase and unstake this ether not have to take any kind of discount but two I think that there are probably people that don't have a coinbase account and can't actually exit via coinbase so they have to go through the secondary market and that presents an Arbitrage opportunity where say the CBE token is at a one percent discount to uh the fair value you can buy CBE if you have a coinbase account and then send it to coinbase and redeem it for actual eth from the beacon

chain and make an instant one percent profit from uh from that Arbitrage opportunity there so that exists and that can actually be done I believe still right now uh but for those of the people that did this before Chapala went live where basically you bought CBE that what 94 I think it was 0.94 uh for a little while there was at a pretty steep discount you pretty much made like six percent or more in a matter of a few months for a very low risk strategy because now you can just go redeem it for actual eat staked in the beacon chain which is just incredible Ryan I mentioned this charge opportunity before it wasn't just CBE that was st8 obviously R8 was the other way around where essentially you had to spin out many pools in order to take advantage of that that premium uh because it wasn't

trading at a discount uh but yeah now you can do the whole loop with coinbase and you can do the whole loop with everything now except Lido unfortunately I I I'm actually really upset and and disappointed that Lido is going to be a whole at least a whole month from now before they enable um withdrawals and I'm not going to say that they've done this on purpose or anything there's any malice behind this but I do kind of find it a bit like weird that they knew about chappella for so long and they're like a month behind I understand that they obviously uh shipping withdrawals as part of a um their V2 upgrade and they're auditing that and things like that but still I don't know I I don't like it because it kind of delays that great reshuffling event that I've been talking about I

think obviously the great reshuffling event starts at the Block that chappella went live but it kind of delays it right and and you know a month is actually a long time in crypto as we all know so is the same momentum going to be there in a month who knows right I think it will be but yeah just a bit disappointed by that uh by that action there from from Lido but coinbase has their staking withdrawals enabled Kraken obviously does and is force unstaking every us-based investor and I've actually spoken to two of them one of them is going to be uh us going to solar staking so that's a pretty big plus right that they're moving from cracking to solar staking and the other one is still deciding but I think they want to go with rocker pool so I mean this is really positive that's

obviously that's only two examples of or two people out of probably thousands but even if I even 10 or 20 of those people go to a decentralized service or do solo staking I think that's much better than what we've had now right with with it all being staked with a centralized exchange so it's cool to see that there and speaking of dashboards there's two other dashboards here that I'll link in the YouTube description below where you can monitor a bunch of different things around chappella obviously you want to monitor the deposit and withdraw queue I don't know if this data is accurate because right now it says that there's more deposits going in than withdrawals right now I I don't know if that's accurate I haven't double checked that but that's actually pretty wild to see if that is true and then there's a bunch

of other metrics that you can view here as well on the nanson dashboard which I'll link in the YouTube description below for you to do so and there's also this dashboard from the token unlocks website which is pretty good as well I don't like that they are displaying pending withdrawals as cumulative of both the staked eat that's being withdrawn and the with um and the um the rewards the consensus layer Awards but you can actually hover over it and see here how many partial withdrawals there are versus full withdrawals uh there's only 17 000 full withdrawals worth of eth being withdrawn uh whereas partial withdrawals is 280 000 eighth now we all know that partial withdrawals are automatic within four to five days from when chappella went live all of that accumulated consensus layer

rewards which is actually uh I think it's 1.1 or 1.2 million each will be paid out to the um to everyone who has the the relevant um uh withdrawal key set and actually I think only 55 of the network has actually converted their uh withdrawal keys from 0x00 to 0x01 so there will be a large chunk that actually isn't paid out now who knows why they haven't uh enabled this yet uh they're probably staking with a service that hasn't done this yet or maybe they just haven't gotten around to it but that but that is also something to consider as well that not everyone can unstake because they haven't uh converted their withdrawal credentials just yet but anyway I'm going to link all those dashboards in the YouTube description for you to check out uh but just overall a very successful hard Fork

overall it's played out exactly as I think a lot of the people who are actually paying attention said it would play out obviously it's only a day since the um since the the hard Fork happened not even a day yet right and price action tends to whip whipsaw and tends to kind of like chop everyone up especially in events like this but the fact that like eighth has gone up quite a bit even leading up to chappella even though everyone was saying that there was going to be a massive kind of unlock of Ethan it was gonna be a massive dump because of this I've explained it numerous times on the reefer before and there's that seven minute video clip that I've shared on Twitter with me explaining it as well it didn't make any logical sense it did not make any fundamental uh sense from a fun mentor's

point of view and it just wasn't going to happen as all the Bears thought it would not to say the price can't go down from here I mean sure obviously it can but I think that even though it's only been a little bit of time it the market has definitively shown that Chapel was not a bearish event for uh for ethereum anyway but anyway gonna move on from that uh actually I did put a tweet out before saying that anyone who's watched the refuel for I guess the last few months probably even more than that six to 12 months at this point knew that Chapala wasn't going to be bearish for eth and I said that all people have to do is watch or listen to my show my 30 minute show every weekday which is completely free I mean you guys know

this but if your friends are uh you know if you've got friends that want to get into ethereum or crypto you can you can reference this show and say it's free there's no ads no no monetization I'm not trying to sell you anything right and then you'd be ahead of 99 of people in crypto by just listening uh to to the show and as I said I'm purging to the choir here quite literally you guys are already know this but for anyone that you talk to I just just tell them just honestly like I'm not trying to pump myself up or anything like that but at the end of the day there's so much bad information out there when it comes to crypto especially when it comes to ethereum and I believe I'm one of the only uh consistent media Outlets out there that actually puts out the good

information obviously there are a bunch of others um banklesses the obvious example here but there are others out there and there are smaller communities as well uh that that specialize in things like eat Staker for example but I think generally uh yeah it's on us to save the newer people to the ecosystem from falling down the rabbit hole of a bit boy or or something else right we don't want them going down those rabbit holes we want them getting the right information and being able to form their own opinions based on that correct information anyway enough about that moving on to a bunch of other things that happened in the last 24 hours so Tony from the mavb Mev boost dot pix website has put out a screenshot here with any captioned or a picture here any captioned it saying in the past six months validators received gave the same

average execution layer Awards this would probably not be possible if validators had to engage in centralizing Mev games the success story of PBS so far now I remember I explained this I believe it was yesterday or the day before or the reefer before where I basically said that we do have PBS right now proposed to build a separation in ethereum right now because we have the Mev boost networks which which acts as that separation that's happening and I highlighted this exact uh uh chart here uh yesterday or the refill before but it was only on a one week time frame and I did say that on the longer time frames I suspected that the execution layer Rewards or the Mev Boost payments rewards would pretty much look the same across all of these Stadium providers and that's exactly what we see here

there are differences here and there right but mostly it's it's the same it's it's same on average right which is incredibly cool because as Tony says here this probably would not have happened if it wasn't for Mev boost now I know Mev boost has come on under a lot of scrutiny for a bunch of different reasons but I think until we have in particle PBS it is a necessary evil there are issues with it it leads to centralization in other ways it leads to uh censorship as we've seen but we've even rectified that right uh but generally and it leads to bugs because so so what happens is because 90 uh or on average 90 of blocks are being outsourced to Mev boost and Mev boost as a software is not part of the the main

track of ethereum core development there are sometimes critical bugs that happen like with the prism client where there will be an issue with the prism client talking to the Mev booth software because it is a sidecar software it is not part of the core protocol so it's it's actually hard to test for these things now within protocol PBS it would be a lot easier and and Mev boost as a software will go a long way to informing us how to do PBS in a in a proper secure safe resilient way which is obviously also very exciting but great to see that my my thesis from just seeing the the weekly chart uh last time uh played out plays out over the over the last six months and I think this is something to show people when they say oh look at lato or look at coinbase getting all the

big Mev Boost payments out I should stick with them well over a long enough time frame and this isn't that long six months it's basically averages out to the same thing um and even as I would imagine even as a solo Staker it would as long as you are or I I I I have high Effectiveness on the network and you aren't missing block proposals uh you should be the same as well so I think it's a bit of a misconception out there that the biggest staking providers will give you more apy I really do think over the 6 12 18 month time frames and longer you're going to be averaging the same rewards as long as you have that um steady Effectiveness you know it would probably want an effectiveness of at least 95 or more and you don't want to be missing any block

proposals obviously as a solo Staker on your own Hardware that could be more difficult to achieve because you have to make sure that you've got your own redundancy set up such as a UPS or an uninterruptable power supply and a backup internet connection and things like that and I I totally understand that obviously those kind of things are quite hard for many people to to achieve but still I think it just speaks to the fact that no matter what staying in service you go with your Mev Boost payments should average out to the same across all of them all right uh yeah this is the prism client the link here that I'll link in the YouTube description below that you should upgrade to as I mentioned before there was a critical bug with it talking to Mev boost that could list that will that would actually lead to missed block

proposals so definitely go check this out if you haven't yet um so there is a bit of a meme right now about kind of changing the terminology of dank sharding because dang sharding as Ansgar says he um he likes dangshotting as a meme but he thinks it was a mistake to stick with sharding as we pivoted away from execution sharding what we are doing now is data availability scaling and by not calling it that many people still think enshrine sharding execution is on the roadmap I agree with this I think we need better memes here so there was a bit of a thread here people coming up with with different memes this this person said dank scaling and then Ansgar scared I said dank scaling The Blob space and then Tim baiko said dank scaling The Blob space

with the little dot o uh dot um sorry period little o and um capital O here to represent the different blob sizes I think tank scaling and blob space is pretty funny from a meme perspective but it's also gonna confuse people again I think dank sharding and Erp 4844 are going to be quite sticky but it is accurate to say that it's not really sharding as originally envisioned and it will confuse people so dank scaling and blob space it will probably be the memes that you see thrown around from now on um so I just wanted to say that uh that that and I wanted to explain what they were so that you weren't confused when you saw this new terminology floating around on Twitter all right so Dan Romero from farcasta has uh has teased a new feature on

firecaster called log in with firecast star so what login with ficuster comes with is an oauth-like flow to log into other firecaster apps direct relationship between developer and user 100 user controlled assigning key pair is off chain and uses fire Caster hubs and then here's a video of how it works on Jam here this is pretty cool because you obviously you're already using an ethereum account to sign into Far Cry star and then you can take that a step further where you're using the actual fire Caster uh login or app login to connect to different apps within the kind of file Caster ecosystem which I think is very very cool and as I've said before forecaster remains pretty much like the most exciting decentralized social media app that I've seen I'm

trying to use it more I am using it more as a lurker lately I haven't really posted on them that much yet it's very hard for me to switch off Twitter I think I'm gonna have to try and use both of them at the same time and see which one I like more more and see which one I spend time on more just naturally without having to force myself to do things but I still have and on that note as well I still have a bunch of invites for firecaster if people want to reach out to me I'm going to look here I have 65 invites left I can see it right here on my screen so feel free to just DM me it should come up as a request or just add me as a friend and I'll know why you've added me as a friend and I'll

send out an invite to you it's pretty easy I just I just need your email so yeah if you're damning in me or or kind of friend requesting me about a forecaster invite just to send a message to me saying hey I would like a forecast to invite and send me your email just so it's a quick process and I'll I'll get the invite sent to you uh when I can there so as I said I have 65 invites left first come first serve obviously but they are there for you to grab onto all right so Marissa tashman couple here from the blockchain association announced today that the blockchain association and the D5 education fund filed an amicus brief in the Van Loon versus treasury uh uh kind of suit here fighting ofax unlawful sanctions of

alternator cache software oh facts decision raises serious Regulatory and constitutional questions inhibiting the rights of many Americans and then she continues by saying we argue that tornado cash is simply a tool as it would be Unthinkable for ofak to prohibit Americans from using tools like the internet or a car rather than punishing the Bad actors themselves ofax sanctions of tornado cash are unprecedented unprecedented and there's a bunch of more uh kind of stuff in the thread here that you can go check out for yourself but just reminding you guys here that there are active lawsuits against uh ofac right now against the treasury Department I should say uh from different parties there's one from coinbase there's one from a bunch of different ethereum community members there's one from David Hoffman I don't know I I think some of these overlap I

think there's only two right now there might be three I can't remember exactly but there are a bunch going on right now and they're still in the works obviously the wheels of Justice or the law generally moves quite slowly so you're not going to see anything major from this for quite a while but it's good that people are fighting back and it's good that not only individuals are fighting back but but well-respected institutions like coinbase are fighting back as well so I just wanted to give you guys an update on that this will be linked in the YouTube description below for you to check out all right an update from l2beat here today so they have released something called Earl which is a modern assertion library for typescript so this is obviously one of the things for Developers for developers to check out obviously if you're not a developer

these probably won't mean much to you but you can head to earl.fun to check out what this is all about along with a bunch of documentation and examples and things like that for you to get started with just figured I'd shout that out for people out there or the developers among us to check out because I thought it was quite interesting so yeah I'll link this in the YouTube description for you to check out and rounding off the updates was just at bankless episode that I was talking about ended up not being a live stream because unfortunately for some reason the software wasn't working correctly so we just ended up recording it offline and then it was posted as a normal bankless episode so if you haven't checked out that one yet I highly highly recommend doing so not because I was on it but because Tim

baiko and Justin Drake were on it honestly those two guys make me feel so inferior in a in the best way possible there is so much Alpha packed in this episode that you may not be aware aware of Justin Drake dropped some really big Alpha bombs in there so you should definitely go check out this episode if you haven't yet I'll link it in the YouTube description below alright just like yesterday I have left a bit of extra space here at the end of the episode to talk more broadly about what I was talking about at the start of the episode which was uh obviously Chapel now that Chappelle is live everyone is asking what's next and I think that everyone I I shouldn't say everyone everyone outside of the ethereum ecosystem is asking what's next because everyone inside the ethereum ecosystem already knows what's next we know that

erp4844 is coming soon we know that we have vertical trees to look forward to in PBS to look forward to and all these other really cool stuff to look forward to because we we're familiar with the with the um General ethereum roadmap but I think it's on us going forward to make sure that we keep meming these things into reality because memes are the best way to disseminate information amongst a wide group of people on the internet and even in real life these days so I think that with 4844 we definitely want to keep talking about things like that you know the terminology like dank sharding and blob space and stuff like that even if it sounds silly even if like Bitcoin maximums are going to make fun of us for saying it that's good because it's it's it's free marketing for us if they make

fun of us like make fun of it I mean the fact that this upgrade was called chappella which was obviously an amalgamation of uh the Shanghai and and capella upgrade names for the El and cl uh layers there uh it was called Chappelle and people were making jokes about this there were some people were like generating AI images of Dave Chappelle holding an eighth kind of coin in his hand right because shapella sounds like Chappelle and uh some people were making jokes about how he did that skit once where he said you know y'all got any more and then there's like you're gone anymore of that East stake right so I think meaning uh these upgrades is the best way to get make people aware of them and the best way to keep the narrative going that ethereum is not slowing down it is shipping

faster than it ever has before there are major upgrades being shipped Guys these are not small quality of life improvements these are major things especially 4844 especially PBS especially vocal trees especially things like single slot finality all that sorts of stuff those are all absolutely huge upgrades obviously not as big as the merge oh and that's totally fine right because at the end of the day I don't think there's ever going to be an upgrade as big as the merge there are people who disagree with me on that um there are people who say full dank sharding is as complex as the merge and that's totally fine like I I'm happy with people disagree me with me on that even if they are core developers as well and call researchers but in terms of the scope of the upgrade I think the merge isn't going to be beaten and but as I

said that's totally fine there are other very exciting upgrades coming down the line they're not too far away uh and they're being worked on actively in parallel uh and and there's so much happening on that front so as I said I think it's on us to meme those things into reality and to keep talking about these things publicly so that it remains fresh in people's minds now the importance of this is twofold one it's it's for keeping you're in fresh in people's minds which I don't think is hard to do because there is a million different reasons why ethereum would be fresh in people's minds but secondly I think that in terms of uh uh keeping the the fud to a minimum I guess like dispelling fud and every time that we say something and it comes true it basically takes more and more power away

from these people who spread the fud and these people who sped this spread this misinformation and I think Chapala is a perfect example of this as I said earlier at the start of the episode for months now months and months and months everyone was going on about chappella is going to be this massive unlock of staked Eve it's going to be Uber bearish for eth price is going to crash to zero that and this is ridiculous that there's a cue to unstake like they're only doing that to stem the bleeding blah blah right all this stuff that we know to be to be false but the only reason we know it to be false was because people were talking about it I went on about it for months and months and months trying to to make sure that you guys understood that chappella was not a bearish event for ethereum I don't

understand how people think that shipping a major upgrade is a bearish event but anyway right um yeah and the broader context of the market right now as well the market is generally bullish so I just didn't see it as being a bearish event for ethereum and and for eighth as an asset of course but I think there's going to be similar kind of fud around these sorts of things when it comes to uh 4844 for example you're going to see people fighting the fact that after a month The Blob uh data expires on ethereum layer one and if you don't store it somewhere else you're never going to have access to that data again it's going to be lost basically forever now people are going to to flood this it's an easy way to fight back on this fight you can say to people well if

people actually care about this data they can just store it themselves it's not hard to do there's going to be plenty of services they're going to store it themselves and anyone who doesn't actually want to to use a service that's using these blob type transactions can still use normal rollups that you that don't use blob type transactions that use core data and have their data stored on ethereum forever so there are multiple ways around this now of course these things are quite technical they're harder to explain to the average person than someone that's in ethereum already because you have to have have to add a lot of context to it but I think it's still very important to explain these things and explain the Nuance behind them rather than letting the narrative get away from us and people being like Oh my God look at ethereum deleting

history now you're going to get rugged after a month if you don't save your data that's not how it works at all but that's the fight that's going to be going to be uh put out there so I think we need to get ahead of that because it's definitely going to ramp up and I also think that fight is not going to be that big of a deal and no one's really going to care about it because everyone's going to be like well this is really silly this this is even dumber than the chapelofard so let's just you know mostly ignore it and just correct it where it needs correcting because you know I I often get people telling me that why do you bother right why do you bother correcting this misinformation it's just crazy people saying this stuff no one listens to them

anyway but that's not true because these people have a very big reach some of them like to take an example here of someone that I I really think does a lot of damage to ethereum is Lynn Olden she is considered a respected and intelligent voice in the macro Community right in the tradify community now she doesn't like outside of Bitcoin she does not pay attention to anything else going on in crypto and because of that she either willfully or or kind of like unknowingly spreads some of the worst fud to a really large crowd so for example she said the other day that ethereum has on-chain governance because it's proof of stake which is completely factually incorrect like there's not a there's not about a matter of opinion

here it's about the fact that that's literally incorrect ethereum does not have on-chain governance by that there is no token hold the voting for ethereum for the ethereum core protocol so saying that and spreading it out to an audience of obviously there's crypto people who follow her but there's a lot of macro and chat by people who follow her as well um puts out this information that is just completely incorrect that's what really gets to me is when I see that and I'm like wow this is this sucks so much this person has so much reach and they're literally spreading lies and essentially propaganda to their their followers so I will keep fighting the misinformation because of this I'm not going to stop I think that at the end of the day there are plenty of people that are going to be misled by these sorts of

things and I would like to do my part to make sure that we uh that I can educate them and that I can kind of guide them back into the truth so to speak rather than getting lost down the rabbit hole of fud and propaganda which unfortunately this industry is full of but I think if we keep fighting we can strengthen ethereum's narrative strengthen the the community that ethereum has and then we can get like an army of flood Fighters going which we already have a lot better than we did even a couple of years ago but we're gonna have to keep strengthening that I believe but anyway 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 it a thumbs up subscribe to newsletter join Discord

Channel and I'll catch you all tomorrow thanks everyone