Hate to say this but the current high gas costs on Ethereum has made it no longer welcoming to beginners or small account holders. It is now no longer economically feasible for small transactions to take place on Ethereum leaving only whales to make on-chain transactions.
When we first started using DeFi apps, it costs only couple of dollars for gas. Now, it costs $30-100 for smart contract interactions. No one starting out will want to spend this much money just to learn and will in fact have a very negative experience of this "future of finance"
We need Layer 2 solutions to go live asap or we will see either:
(a) more ETH DeFi apps planning to migrate to other Layer 1 chains like Solana and Polkadot, or
(b) competing DeFi apps launch on other Layer 1 chains that will pull new users away from ETH.
We were on a nice trajectory where many users were moving away from centralized exchanges to decentralized exchanges. However, this trend will be reversed if gas fees stay high for a long time. Hopefully things will cool down and buy us more time for Layer 2 to be adopted soon.

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More from @bobbyong

7 Feb
I have been fascinated by this NFT project, @TheHashmasks since its launch one week ago. I think it is one of the best executed projects so far and contains many interesting Easter Eggs, some yet to be discovered, and will continue surprising us in the days and weeks to come. Image
Here's a summary of what it is so far:
Hashmasks was launched on 28 Jan 2021 and is a digital art created by 70 (still) unknown artists globally. A total of 16,384 digital art were represented as Non-Fungible Tokens (NFT) on Ethereum and hosted on IPFS (decentralized storage).
I really like that the team chose to distribute these NFTs fairly. No one knew which NFT they will get during the initial sale. Price was set on a bonding curve. The first 3000 NFTs were sold for 0.1 ETH and the price went up till the final 3 NFTs were to be sold at 100 ETH each. Image
Read 19 tweets
3 Jan
Algorithmic stablecoins have been one of the most exciting parts of crypto recently. The design space is wide and there have been many innovations taking place. I have been following FRAX closely and want to take an opportunity to share my learnings here coingecko.com/en/coins/frax
FRAX is a decentralized stablecoin where its target peg is $1. Unlike over-collateralized crypto stablecoins like Dai and sUSD, it aims to be capital efficient by using fractional reserves via a 2 token model. Its other token is Frax Share (FXS) coingecko.com/en/coins/frax-…
Each FRAX is backed by USDC & FXS. The percentage of USDC & FXS backing FRAX is determined by a collateral ratio adjusted algorithmically each hour. FRAX started off with a 100% USDC collateral ratio. At this point in time, FRAX is backed 90.75% with USDC with the remainder FXS.
Read 18 tweets
30 Dec 20
2020 has zoomed by so quickly and it's time for me to give my predictions on the crypto markets in 2021. So here we go my predictions on what I think will take place next year:
1/ BTC will have a very strong year driven by institutional demand. We have broken past ATH so all eyes will be on log price chart with next line of $100k. More public listed companies will hoard >$100m BTC. One small central bank will start holding BTC. Bitcoin ETF will launch.
2/ ETH will break past its $1,500 ATH mainly driven by DeFi. Gas fees will skyrocket again and highlight scalability issues. Most of the year will be spent coordinating on a Layer 2 scalability solution. My bet will be on ZK Rollup gaining traction towards the end of the year.
Read 9 tweets
10 Dec 20
1/ Just read @iearnfinance quarterly report here: github.com/iearn-finance/…

Impressed with the transparency shown by the team and it's something that more teams should emulate. Particularly like the detailed list of Treasury and payments to contributors/grants.
2/ The report makes it easy to do research on projects.

Here's a short summary: Yearn made a total of $3.8m in net operating profits for the past 3 months ending Oct 2020. $2.5m were paid to stakers in governance contract.

Would have been good to see average staked amount.
3/ 95% of revenue came from yVault products of which yUSD is the most popular yVault generating 68% of vault revenue.

There is no mention of TVL in this report and I have to dig elsewhere to get this info. Would have been good for this info to be included.
Read 5 tweets
8 Dec 20
1/ Our November monthly report is out again! 🎉
This time round, almost every chart is upward sloping and at ATH! 🚀 Amongst top 30 coins, market cap grew by 46%. Image
2/ Bitcoin achieved its ATH and had the highest month-on-month growth in 2020 with a 42% increase in November. BTC ended November up 173% since the start of the year. Image
3/ Ethereum had an even higher growth in 2020, closing November up 374% from the start of the year. 🔥
There were 3 months in 2020 where ETH went up more than 50% --> April (+54%), Jul (+53%), Nov (+59%). Image
Read 7 tweets
27 Oct 20
I've been observing @barn_bridge token price since it started trading on Monday morning. The price seems to be going only up and at $185, it is nearly 140x seed round price of $1.33. I am fully anticipating the price to go down next week so do be careful. Thread below 👇
Let's be clear: I am interested in Barnbridge's fixed interest rate solution. Their method of splitting variable interest rates into junior/mid/senior tranche is innovative and I look forward to seeing this team launching their product. I wrote more here:
Their way of distributing $BOND via farming seems quite fair. I like that Pool 1 lasts for 25 weeks & Pool 2 lasts for 100 weeks. The long farming period allows people who may have missed the initial news to join the farming later. I am generally not a fan of short farming period
Read 13 tweets

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