Samuel Shadrach Profile picture
pool guy @RariCapital DeFi, L2, MEV and whatever catches my fancy
2 May
P/E of S&P is around 40 at the moment.
P/E of DeFi bluechips sitting around 30.

Guess which has more potential for growth.

(6 month plus timeframe please)

(calcs below)
The Block assumes revenue = supply side + protocol.
Supply side is what is paid to lenders, LP etc. Protocol is what actually matters. You need to guess what fraction of supply side revenue can be diverted to the protocol in the future.
Sushiswap has P/E of 5 as per the block, but only 1/6th of LP fees go to protocol, so it's more like 30. Assuming 1/6 for uniswap too gets actual P/E of 90. Maker P/E of 35 is legit cause all revenue goes to protocol. Lenders not sure, I'd put 1/5 to 1/10 so Aave at over 100.
Read 5 tweets
2 Apr
Energy estimates very interesting. PoS criticisms completely off-base.

PoS does capital lockup, PoW does capital burn. You can still use locked capital by tokenisation / derivatives like rETH (@Rocket_Pool).

1/
Differential access to cheap capital (and technical know-how) is a centralisation pressure in PoS, agreed.

PoW has far more - higher min investment, differential access to cheap energy (govts regulate energy), and variability in mining rewards which forces pool formation.

2/
Rules are ultimately decided by token holders not miners / stakers in both PoW and PoS. Majority wealth controls BTC too, they can fork into BTC2 with different rules if they want. Your original BTC will be left on a minority fork.

BTC immutability is social not set in stone

3/
Read 7 tweets
26 Feb
Here's a primer to rollups (hopefully simpler than vitalik's article). First, some definitions:

State: set of all addresses, balances, contracts at a given time.

State transition: Changes to be made to a state to get to the next state

1/
Valid state transition: Changes do not violate rules

State root: Hash of state. A hash algorithm takes a large amount of data, s1, and returns a small amount of data, H(s). It is almost impossible to find an s2 such that H(s1) = H(s2).

2/
Optimistic rollup: Operator publishes state roots (H(s)) and state transitions.

If the operator publishes either an incorrect state root or invalid state transition, a user needs to submit a "fraud proof". How does the user do this?

3/
Read 11 tweets