ETH ratios down so bad we got @kylesamani on Bankless to tell us why ETH is weak & feeble

- Where ETH went wrong
- Why L2s are parasitic
- Kyle's advice for Vitalik

If you're an ETH holder with a shame kink you can get early access on premium feed now.

https://www.bankless.com/why-is-eth-down-so-bad-this-cycle-kyle-samani

building /bracket | hosting /greatbooks + /gray | ex-BCG, ex-PHD | poli + phil + econ

Why do all the bull posts ignore what a nightmare chain/liquidity fragmentation is for the ecosystem?  I feel like we've been promised solutions soon™ for over a year now.  Even just basic bridging is no better been Eth/L2s than it is between L1s

I mean we have stable coins.  That's pretty much the killer app.  

But PayPal is taking off on Solana instead of Ethereum.

We’ll get there. 

And it won’t even matter that much until we make dead simple and awesome applications for normal users.

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems

Defi is my livelyhood.

I want to borrow money for an investment, I have to look at 20 different apps on 15 different chains to find the best rates, then I have to figure out which are the most efficient swaps/bridges to get there. Evaluating liquidity and fees etc.. It takes hours to do what should be a simple single transaction.  Then a few days later the rates change and I have to do it all over again. 

It's the same for earning yield.

Like an NFT on Base? Want to borrow from CRV to buy it? Well there's no bridge for CRVUSD to Base, so you have to swap to USDC first and then bridge it. Watch the slippage. Want to swap back to crvUSD on Base to lend for the higher yield? Well actually there's not enough bliquidity for CRVUSD on Base, so tough luck.

Want to use that Base NFT as collateral on for a loan on Polygon? Well you just can't do that.

I won't even get into the fact that we have 12 different chains vampire attacking each other with the same apps doing the same things and no liquidity

Can you explain how this liquidity fragmentation is causing personal issues for you? Or can you explain how this problem is in fact a concrete negative for others that you know or heard of first hand?

Whatever your decentralized, borderless, neutral, censorship-resistant open blockchain question is, the answer is YES… to Crypto!

Except that while we're playing L2 hunger games, our L1 competition is straight up eating our lunch with better products.

If Solana or Tron or Ton or whoever else manage to not suffer a serious outage or exploit before we can get L2 composability figured out, we'll have lost our network effect and all the momentum we built the last 9 years

I would call it evolution vs fragmentation. Let the market, diverse competition and immensely wide targets of incentives provide a robust battlefield, I say, and let's sit back and watch the best emerge.