DeFi

DeFi Gigabrain Tarun Chitra on ETH staking and re-staking and why “financial nihilism” is a real consumer product

Published

8 months ago

19 May, 2024

Crypto is a world built for self-taught people, a playground for mathematicians. Tarun Chitra, founder of the risk management, economic research and software optimization organization Gauntlet, is just one shining example. In a conversation with Chitra, this comes through. There seems to be no corner of crypto that he hasn’t examined.

CoinDesk caught up with the real DeFi celebrity known for his colorful style (hair, glasses And clothes) to talk about new financial primitives in crypto, artificial wombs and why he appreciates hecklers.

This interview has been lightly edited for brevity and clarity.

I thought maybe we could start with a quick overrated/underrated roundup. You can skip any of them or clarify your statements if you prefer.

I have a very rough classification in my head, like between passive and active life extension. The passive is: I’m getting healthier by eating better and maybe taking supplements. Active is: I get all kinds of esoteric experimental therapies and, like, injections. You know what I mean, one involves surgical procedures and the other involves simpler habit change.

I was thinking more about the first one.

Probably overrated. I think the latter is correctly noted.

Yeah. Healthy living is good.

But that’s why I wanted to separate them.

Actually, I think it’s rated pretty well. Maybe slightly underrated, actually. But not super underrated. I feel like they get a lot of hype.

CLOB [central limit order book exchanges].

I think we had the CLOB era as the only thing that worked. Then AMMs took off and CLOBs were like shit. And then, in the world of perpetual, low-latency blockchains, everyone was saying “CLOBs are better, CLOBs are better.” Not that we’ve necessarily seen a lot of people coming back to CLOBs, but I feel like the tide has changed at the moment. People talk about PAD all the time. So it’s good. But it feels like there’s always this cyclical thing between the two.

A shot Dutch auctions are overrated. Dutch multi-plane auctions are underestimated.

Can you define what you mean by omnichain for this context?

Honestly, not so much. It’s just a term I’ve seen pop up a lot recently, and I can’t say what it is.

Yeah, well, I found it to be more of a marketing term than anything real, to be completely honest. So overrated that it feels like it’s not real. This doesn’t refer to a single technical thing that I could write equations for and say, “That’s a guarantee you’re getting out of it.”

That’s the impression I had too. It may be mean, but Aave.

Who are your intellectual heroes?

Paul Dirac. John von Neumann. I’m trying to think of a more recent one. Boring is like Terence Taos of the world. Is there anyone who isn’t as famous? …Yeah, stick with it. These are the ones that are quite well known, I have the impression that the others are far too specialized.

Fair enough. You have written about DAO governance in 2021. I was wondering if you think we’ve learned anything since then? whether the governance of the DAO has improved in the years that followed?

I think there’s kind of a thing where the actual governance processes for many DAOs have gotten worse or better. Whether it’s because of sclerosis, or because of centralized buyout or something else, there are plenty of reasons for one or the other. I don’t think there have been many new mechanics that people have focused on because you don’t get rewarded for improving a DAO mechanic.

With Compound, I feel like because of the way they launched, they were rewarded as a team for improving the DAO mechanics when they decentralized governance in 2020. But since then , everyone who has innovated in governance is generally outside of DeFi. And these did not succeed.

There are still many mechanistic innovations that have not been realized. And part of the reason it hasn’t been done is because it’s underfunded compared to other things, right? For example, you can raise a lot more money to make another robot than you could ever raise for a new governance system.

When is it appropriate for crypto to embrace financial nihilism? As in, lean into it?

Good question. I have the impression that we are currently considering this question. So I don’t know if that’s an answer to the question of when it’s appropriate – but hasn’t it already happened? The problem for me is that financial nihilism is a real consumer application. Most other things are considered crypto for consumers, people say it’s a scam or a lie, or that it doesn’t really need crypto at all, it would work fine as Web2 for me – I can browse the list.

Financial nihilism is a real consumer product. Like there’s no way around it. It’s hard to get around the fact that they found a way to make Binance more fun for someone who doesn’t like looking at candles – and I think that’s why Pompe.fun exist. People love it because it’s the same thing but it doesn’t seem like it and it’s a good consumer app.

This will disappoint anyone raising millions of dollars to do mainstream crypto, but that’s exactly what it is.

Do you think Farcaster will ever completely supplant Crypto Twitter and would it be a loss for Farcaster if CT was completely recreated on Farcaster?

Farcaster is like where WAGMI refugees [we are all gonna make it] the 2021 movement is gone. At first, they were all people who were really sincere about being part of the cult of toxic positivity. I feel like those who were serious about it went and created Farcaster. I just don’t feel like trader type people will ever fit in perfectly, so it doesn’t seem possible to fully recreate the “degenerate side”. Farcaster is so much healthier.

Do you see any interesting financial primitives emerging that you think will become increasingly important?

I mean, in general, I think restaking is part of it. But things that allow you not to know which network you are on, but which offer you the same security guarantees as this network; Re-staking is a version of that, aggregation stuff that people do and ZK-land is a version of that. I think this is the key to making the UX of the multi-chain world as good as something like Solana.

Some fear that there is already too much ETH staked or that there will soon be too much. Do you agree with this argument? Is there an appropriate amount?

Honestly, it depends. I don’t think there is a static, fixed quantity that will always be the right quantity. It depends on the usage. If it turns out that ETH is used a lot in on-chain applications or in centralized exchanges, then it’s pretty bad to have a lot of ETH staked, because then there’s no liquidity and you could find yourself in a supply crisis.

On the other hand, if there is too little ETH staked, then yes, of course, different types of attacks are possible. In some ways, the biggest problem with proof-of-stake is that it’s easy to calculate the monetary value of an attack. I can always take 1/3 times the amount bet and figure out how much an attack costs.

With proof of work, because people can join and leave, it takes a while to determine the cost of an attack and you can’t determine it as accurately. So the lower bound of proof of work is actually harder to estimate, and it’s actually harder to attack in some ways.

So I think it will always be dynamic. Some new technology will help reduce the amount you need to stake – that’s the whole point of ZK and advanced crypto, but it will never be constant. It really depends on how much apps you want to use and if the apps use a lot of ether.

How many pairs of glasses do you own?

And finally, is there anything in particular you’re looking forward to at Consensus?

Do another live podcast.

I was there last time. It was good!

Yes, live podcasts are fun. Especially if you act like a heckler.

I’ll try to find something intelligent to heckle.

Yeah, well, thanks for stopping by.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

No spam, no lies, only insights. You can unsubscribe at any time.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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