David

@davidf

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99 Followers

David pfp

The idea that there is no “real” intrinsic yield at 100% ETH staked is wrong. It confuses “inflation” of the supply with price inflation. Those are correlated but not 1:1 - just look at US dollar. If all ETH holders get the same reward we still win vs the rest of the world because FX with fiat is what matters

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David pfp

Love the episode, but the idea that there is no “real” intrinsic yield at 100% staked is just wrong. They are either assuming ETH price inflation matches ETH supply 1:1 (not true in real economics) or everyone in the world holds ETH (obviously false). I mean, was no one better off because we all got stimmy checks?

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David pfp

This episode was fire 🔥 just what I needed to get pumped about eth again

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David pfp

An under appreciated fact about scalability is that if costs in the network don’t come down, centralized intermediaries will arise to internalize costs. This happens in TradFi all the time. Low scale —> Centralization

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David pfp

I like that - so maybe even though the end goal is similar (individual service provider —> network) the means of getting there are totally different

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David pfp

Blockchain is a continuation of the trends we’ve seen in Uber, AirBnB, Amazon etc. Trust is moving from individual service providers to networks of new service providers. For money, trust in individual banks can be replaced with trust in a blockchain network.

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David pfp

Yea someone pointed out to me that you can do it with really short term treasuries and avoid the interest rate risk. Your point on it just being “one instrument” is so true though. We think of stables as crypto Trojan horse into TradFi, but actually it’s gov’t Trojan horse into DeFi

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David pfp

One thing missing in the tokenized treasury conversation (i.e., yield-bearing stablecoins) is what happens if interest rates go up. That would mean the value of the treasuries go down (a la SVB), and what if the stablecoins are then under collateralized? 🤔 Happy to be schooled here if anyone knows

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David pfp

https://www.imf.org/en/Publications/WP/Issues/2023/09/30/Assessing-Macrofinancial-Risks-from-Crypto-Assets-539473

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David pfp

Love this IMF report quote: “Crypto asset technologies, if not well regulated and supervised, could create de facto a new and alternative financial system.” Yea bruh, that’s that’s the point. It’s been the publicly stated goal for years 😂

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David pfp

This is one of my favorite South Park episodes hahaha

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David pfp

Really interesting take - hadn’t thought about it like that before

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David pfp

I think 5 is most likely. But just adding staking modules doesn’t seem to solve this right? Letting more validators join doesn’t fix the governance risk if Lido holders can vote to eject them (take away their income) for any reason. That’s a lot of power to have over Ethereum’s validator set

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David pfp

What do people think is the single largest comparative advantage that blockchain has over legacy financial technology? My vote is a unified ledger. Huge friction in TradFi

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David pfp

Came across a crazy stat today: A 2022 MasterCard survey found 51% of Latin American consumers transacted with crypto in the last year. These are the kinds of 51% attacks we need

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David pfp

You gotta try the men’s ABC trousers 👌

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David pfp

I think part of the issue is builder discomfort with the trade-off between decentralization and UX. I think we need more community discussion about where some centralization is OK (e.g., Web3Auth?) so builders are more comfortable to just build

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David pfp

Maybe a better way to put it is that treasury rates will be the floor interest rate for USD stablecoins on Ethereum. To the extent that USD stables are become the money of choice on chain, this does give the Fed leverage over willingness to spend or save in the new economy. But maybe not total control

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David pfp

Great Bankless pod on tokenized treasuries. Two thoughts (if this scales): 1) Americans can access the yield via AAVE once arbitrage forces the on-chain interest rate for all stables up to the US T bill interest rate 2) The US gov’t will control interest rates in DeFi via this arbitrage

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David pfp

Thanks! Makes sense that wallet connect could support

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