Thread by @cyberFund_

𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗧𝗵𝗲𝘀𝗶𝘀 — Root Chain for the World Computer

We invest in, build on and love Ethereum ❤️ — since 2014.


Here we share our conviction & discuss:
‣ Ethereum's state
‣ Rollup-centric future
‣ L1 & DA moats
‣ ETH value accrual

🧵cyber.fund/content/eth

1. Our core thesis: Market will push most execution to Rollups, driven by businesses seeking lowest risk-adjusted tx cost & highest liquidity.

While L1 captures high-value tx market—DeFi, settlement, interop—and *cross-shares* activity & network effects with L2s.

Let's unpack:

2. Ethereum is the home of DeFi.

With $60B+ DeFi and $120B+ stablecoin TVL, capital is clearly choosing Ethereum, compounding trust and liquidity network effects daily.

Reason: security first approach — highest decentralization and hence censorship resistance & neutrality.

3. Ethereum is the main *neutral* base platform for applications & businesses.

‣ World Chain rollup has >25M users
‣ Base+Ethereum are doing >75% of stablecoin volume
‣ Stripe & Visa are adopting these rails

Emergence of Ethereum as a settlement layer is unraveling *today*

4. What should be Ethereum's business strategy?

‣ Offer superior products: L1 and DA
‣ Offer maximum viable blockspace supply — to unconditionally win valuable customers
‣ Reinforce security, liquidity and composability network effects
‣ *Not* extract value prematurely

5. Ethereum L1 will scale and continue to be the nexus of DeFi, settlement & interoperobility.

The zkEVMs & PeerDAS tech is ready for Ethereum L1 to scale from 16 to 10k TPS — continuously over several years, and *without* compromising security (thanks to FOCIL).

6. Ethereum’s rollup strategy to offer abundant & cheap DA—while widely debated—has been right.

It allows Ethereum to unconditionally win all the valuable customers.

Long-term, DA will scale (via PeerDAS) to 1M TPS, capturing payments, HFT, AI-to-AI & other 10K+ TPS usecases.

7. Ethereum DA *does* have a moat.

By solving the rollup interoperobility issue, Ethereum will extend its network effects from L1 to rollups, building a strong liquidity moat for DA

Highest security is key here—obtained via validating bridges, escape hatches & native rollups

8. The market will push execution to rollups, making Ethereum the Root Chain for the World Computer.

Driven by applications & businesses seeking customizability, lowest risk-adjusted tx cost, and highest liquidity premium

All while security moat *reinforces* liquidity moat:

9. Rollups will generate $10B+ fees for Ethereum.

Capturing high-velocity usecases such as payments will push rollups into 30K+ TPS range, and allow Ethereum to earn $10B+ DA fees with sub-cent txs

And "minimal-price" tweak of EIP-1559 will mitigate potential DA oversupply

10. ETH is productive asset first, and money second.

Because Ethereum's tech adoption will reinforce ETH's monetary premium, but not vice-versa

Fees will be ETH's core foundation. While monetary and speculative premiums, fostered by the L2 economy, will push ETH to be money

11. The Future is Bright.

Ethereum will be the programmable value exchange substrate, on top of which the new, cybernetic economy will thrive. Any two agents, AI or human, will be able to permissionlessly coordinate resources in an efficient and transparent way.

We at Cyber are proud to support Ethereum and accelerate this future.

Full thesis: cyber.fund/content/eth