Eric Profile picture
Feb 27, 2023 7 tweets 4 min read Read on X
Is #Base merely ordinary exchange chains for Coinbase?

1)

The L2 project for Ethereum is one of the hottest topics right now. L2 projects started to emerge as a solution to overcome Ethereum's issue with its scalability limit and the high gas cost that resulted from it. Image
2)

With Ethereum's help, L2 has begun to steadily advance. The temporary Ethereum gas cost explosion is still present, but the current Tx of L2 is steadily increasing, reversing the average TPS, and demonstrating the outcome of sharing the burden of Ethereum's Tx processing. ImageImage
3)

In this instance, Coinbase introduced an L2, #Base. Coinbase adopted a distinctive strategy.

They facilitated Web 3.0 onboarding of users focused on Coinbase customers within the Ethereum ecosystem by acknowledging Ethereum and using the #OPstack to quickly build an L2. Image
4)

Despite it was stated that no coins would be issued, the contentious debate over whether the tokens were securities may have indirectly influenced Coinbase's decision to move to L2.

(A native token is not always necessary for L2) Image
5)

As a result, #Optimism, the technical basis of the OP stack, will have a wider application, strengthening Ethereum's position.

The involvement of new competitors will cause the competition among L2 projects to seriously increase. Image
6)

On the other hand, because a suitable ecosystem has not been established, some chains will be relatively unselected.

Cases like the "Boba network," which deviate slightly from the L2 revival flow as a whole, were ones that we were able to observe. Image
7)

The future of #Base is not doomed in that regard.

In order to advance the ecosystem, Coinbase is announcing the 'Base Ecosystem Fund'.

The community is already growing quickly. All competitors who take a different route than L2 will have a lot of difficulty because of it. Image

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More from @Eric_the_Strait

Mar 15, 2023
Is @CreditSuisse safe?

1/12 Credit Suisse's #CDS premiums have soared to higher levels than during the 2008 financial crisis, fueling speculation of a crisis. Image
2/12 A credit default swap(CDS) premium is the rate at which an insurance policy guarantees the principal in the event of a default,
3/12 and a higher #CDS premium means that the risk of default is higher, and therefore the policy requires a higher fee. #CreditSuisse blames three events in 2021 for the rise in CDS premiums. First, around March 2021, Bill Huang's Archegos Capital collapse. Image
Read 12 tweets
Mar 15, 2023
Beginning of transition from Tradiional finance to Crypto?

1/ The recent closures of several US banks due to bank runs could be an opportunity for the crypto market. As traditional finance shows its weaknesses, crypto emerges as a strong alternative.
2/ These closures highlight the importance of having a diversified portfolio that includes crypto assets. With their rising popularity, crypto assets can provide a reliable investment opportunity.
3/ The closures of Silvergate, SVB, and Signature Bank reveal that traditional banking has significant vulnerabilities. With crypto, investors have access to decentralized financial systems that are immune to bank runs and other financial risks.
Read 6 tweets
Mar 15, 2023
Major Banks Open to Serving Crypto Clients Despite Banking Failures

1/ Despite recent banking failures, major banks like Santander, HSBC, and Deutsche Bank are still open to serving crypto clients, according to a report by Digital Currency Group (DCG)
2/ The report highlights that some banks are now more willing to engage with the crypto industry due to increased demand from clients. Banks in Asia and the Middle East are said to be particularly friendly towards crypto.
3/ Banks are offering services such as custody, trading, and lending to crypto clients, which is a positive sign for the industry's growth and adoption.

However, banks are still cautious about regulatory risks and the potential for money laundering and fraud.
Read 5 tweets
Mar 14, 2023
What is FEVM?

1/4 The #FEVM is an implementation of the #EVM on the #Filecoin network. It allows developers to port EVM-based smart contracts onto the #FVM, where they are called actors, and is compatible with #EVM development tools such as #Hardhat, #Brownie, and #Metamask.
2/4 The #FEVM is designed to allow existing smart contract developers familiar with the #EVM ecosystem to quickly begin porting their existing applications and writing new applications on top of the #FVM.
3/4 Once Milestone 2.2 of the #FVM roadmap is complete, developers will have the option to deploy actors on either the #FEVM or native #FVM, depending on their performance requirements and tooling preferences.
Read 5 tweets
Mar 14, 2023
New but outdated defi, ve(3,3) design

1/ Andre Cronje’s ve(3,3) design is a new #DeFi token economy that combines Olympus DAO’s (3,3) design with Curve’s voting escrow token (ve). What does it mean and why is it important?
2/ Olympus DAO’s (3,3) design encourages users to stake or bond their tokens instead of selling them. This creates positive feedback loops for the token price and the protocol treasury. Staking and bonding are both rewarded with more tokens.
3/ Curve’s ve design incentivizes users to lock their tokens for long periods of time (up to 4 years!) in exchange for voting rights and trading fees. This reduces token supply and aligns the interests of token holders and liquidity providers.
Read 7 tweets
Mar 13, 2023
#SVB Bankruptcy and $USDC Unpegged Incident

1/7 #Circle, an issuer of $USDC, announced on Mar 10th that #SVB, where they held their funds, had gone bankrupt. This leaves $3.3B collateralized in $USDC locked up. Upon this news, $USDC plunged more than 10%. ImageImage
2/7: However, #Circle had previously disclosed the amount of reserve it held in $USDC, and currently, only 8.2%($3.3B out of $40B) was tied up in #SVB.
3/7: By using the #FDIC recovery process as a guide, it's expected that the payout rate will be around 94%, indicating an estimated loss of approximately $200M.
Read 7 tweets

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