Wrote an article on my thoughts on rollups.

Some spicy takes, some stats, some predictions. 

https://mirror.xyz/ocjonny.eth/uIYsxdOvPAmAgWv7OIRRo9-F1ydtWgr9QubwSbjdhnc

Wrote a little piece on tokenization. Kind of meant to be a snapshot of my thoughts at this point in time.

Intended more for the LinkedIn world, yes I have some form of a life outside of CT...

Curious to hear your thoughts!
https://mirror.xyz/ocjonny.eth/S6_H7OzHSqK7SUIxfpDSKJWDmUEs6Sy7t-LDthrYivU

Beefy Finance's Cowcentrated Liquidity Manager Breakdown
https://twitter.com/OvrCldJonny/status/1791597231088292345

Major vulnerability of Polygon Heimdall (consensus mechanism) has been patched.

Here's a summary of what happened:

A critical vulnerability in Heimdall was found, the validator software of the Polygon Proof-of-Stake (PoS) blockchain.

This vulnerability could have allowed a… https://twitter.com/i/web/status/1757544023349195032 

Original tweet:
https://twitter.com/asymmetric_re/status/1757454172658556952

Statement from @Mudit__Gupta 
https://twitter.com/Mudit__Gupta/status/1757460142067790361

Tagging some of my favourite CT gigabrains:

@_FabianHD
@schizoxbt
@CryptoDragonite
@pt1mfv_
@rektdiomedes
@chilla_ct
@arndxt_xo
@0xsurferboy
@0xShinChannn
@Slappjakke
@DeFiMinty
@CryptoShiro_
@crypto_linn
@thelearningpill
@2lambro
@poopmandefi

Polygon Heimdall Vulnerability Patched

Another week, another L2 announcement.

The @Blast_L2 announcement has come to surprise very few on CT as the narrative of yield maximization, RWA, and L2s all come together on one protocol.

Here are some of my immediate thoughts on the announcement.

Dependencies are such an important thing to consider when launching a network.

You cannot treat the mechanics of your chain the same way you treat a regular DeFi protocol.

DeFi protocols are relatively siloed on chain (until others built on top of it, but that's by choice).

Blast will be automatically staking ETH and stablecoins that are bridged to the rollup.

If the ETH staking is done natively and not using LSDs, then the risk that poses is reduced, as the security of the whole rollup is not reliant on other protocols.

It’s important to note that the staked ETH in this case is not used for security purposes like ETH restaking is used in the @eigenlayer.

The problem this staking poses however is bridge liquidity for people who want to bridge out of the rollup.

If the bridged ETH is not managed properly and too much of it is locked up on staking nodes, there may not be enough liquidity to bridge the ETH back to Mainnet.

This may not be an existential risk to the rollup, but can definitely cause hiccups in moments of high stress.

Not all rollups are built equal and with the same level of design consciousness.

I have not done enough research to have my own opinion on the team, but if @0xSisyphus is right, this is concerning.

https://twitter.com/0xSisyphus/status/1726761523257700476?t=klbzUlrwYbBo8uTZX8Glkg&s=19

Furthermore, it raises the question of who is managing the ETH staking nodes and who is deciding the amounts of bridged ETH being staked.

This whole process is very complex and requires lots of foresight to prevent major catastrophes from happening.

Blast is also staking all stablecoins being bridged to the rollup.

This, in my opinion is the riskiest of all they are doing.

When bridging USDC, USDT, DAI and other stablecoins to the rollup, they will be staked in protocols to earn yield.

Users bridging in all these stablecoins will be receiving USDB on the rollup, one stablecoin to represent the basket of the bridged stables that were staked.

Just like the ETH on this rollup, user balances of USDB will be rebasing based on the yield earned.

This means that the peg for USDB will be dependent on the security of all these different stablecoins staked on different protocols on Mainnet.

If something happens to any of the protocols of which these stablecoins are being staked in, the peg for USDB is at risk.

To me, this project is a reminder that we’re able to do so many creative things with digital assets that are impossible to do in tradfi.

However, it also serves a stark reminder that just because we CAN do something, does not necessarily mean we should.

If you want to read the bull case for @Blast_L2, @TaikiMaeda2 wrote a good thread breaking down why he believes it makes sense.

Worth the read and a good explainer of what Blast is trying to be.

https://twitter.com/TaikiMaeda2/status/1726953388053794962?t=TFSEeQ59ZzHIWws3th7Y1w&s=19

Here’s the official announcement from @Blast_L2

https://twitter.com/blast_l2/status/1726747087906464024?s=61

These are my thoughts right after reading the announcement.

I quickly wrote this on my iPad in a hotel room, so apologies for the brevity.

If there are any corrections or clarifications required, I’ll add them to the replies to this thread.

Be sure to follow these CT gigabrains:

@_FabianHD
@schizoxbt
@CryptoDragonite
@pt1mfv_
@rektdiomedes
@chilla_ct
@arndxt_xo
@0xsurferboy
@0xShinChannn
@Slappjakke
@DeFiMinty
@CryptoShiro_
@crypto_linn
@thelearningpill
@2lambro
@poopmandefi

Blast L2: Some Thoughts and Considerations

Is Distributed Validator Technology (DVT) the new meta for liquid staking?

🕵️‍♂️ To capitalize on it, we must first understand what is DVT and what does it bring to Ethereum staking?

Which projects are implementing DVT?

DVT: A More Decentralized Future to Ethereum Staking 🧵

‼️ Disclaimer: None of the content in this thread is sponsored nor in partnership with any protocol.

Nothing mentioned in this thread is an endorsement or financial advice either.

I'll always clearly disclose if I am writing something in partnership with a protocol.

Before getting started on DVT, it's important to understand the current state of Ethereum staking and why there's so much interest in distributing validators.

To run a validator node on Eth Mainnet, one must stake 32 ETH  to a node. That is worth ~$51k at the time of writing.

Clearly locking up $51k in capital is not accessible to everyone.

This has opened up the market for liquid staking derivatives that permits investors to:

1⃣ Earn staking yield without needing to lock up your capital.
2⃣ Participate in ETH staking with less than 32 ETH.

As of today, there are dozens of liquid staking derivative (LSD) providers, with 5 owning over 1% of the LSD market.

🥇 @LidoFinance (8.83M Ξ)
🥈 @Rocket_Pool (973k Ξ)
🥉 @binance staked ETH (765k Ξ)
4⃣ @fraxfinance Ether (275k Ξ)
5⃣ @coinbase Wrapped Staked ETH (191k Ξ)

As seen by the numbers above, Lido currently dominates the LSD market with 78% of the LSD market.

The more concerning part is that it currently controls over 30% of all staked Ether on the network.

This poses serious risks to decentralization.

If you're interested in learning more about the concerns over this, @BanklessHQ has put out two episodes interviewing @hasufl and @dannyryan providing different perspectives on the matter.

Hasu Episode:
https://youtu.be/IfuUdIblfrY

Danny Episode:
https://youtu.be/2a2owGBkfhQ

The TLDR of the concerns over one LSD controlling a major supply of staked ETH is that it consolidates voting power to a small number of node operators (NOs).

In other words, Lido's many validator nodes holding 32 Ξ each are operated by a select group of entities.

Aside from validation power, what about attack vectors?

What about if one entity's node infrastructure fails and is no longer able to validate blocks?

No matter which way you put it, there are too many points of failure present when you consolidate node operators.

These concerns have motivated builders to explore the question
"What if we could decentralize the node operator?"

That's where Distributed Validator Technology (DVT) comes in.

DVT allows for an Ethereum validator to be distributed among a cluster of nodes.

DVT is broken up into 4 parts:
1⃣  Distributed Key Generation (DKG)
2⃣ Shamir Secret Sharing of BLS Signatures
3⃣ Secure Multi-Party Computation (MPC)
4⃣ DVT BFT Consensus Layer

Not to make this thread too long, I won't be going into the details of all these components, but you can read about them in @MaraSchmiedt's Medium article (incredible read):

https://medium.com/coinmonks/eth2-secret-shared-validators-85824df8cbc0

Basically, DVT is middleware that provides infrastructure resilience to the validator infrastructure that Ethereum's Proof of Stake network uses.

With DVT, you can break up the key that signs the validator and distribute it among a number of people, similar to a multisig.

So what are the benefits of DVT?

1⃣  Reduced exploit risk due to key fragmentation across separate parties

2⃣  Better uptime, as the validator relies on more node operators that act as a failsafe. (ex. if 1 of 4 node operators fail, 3 can still sign). Reduces slashing risk.

 3⃣  Decentralization of parties involved in operating nodes.

All of these benefits can mitigate many of the concerns people have regarding liquid staking derivative projects taking over a large share of Ethereum's validators.

No innovation is without its drawbacks.

❌ Distributing the node operators adds complexity to the validation process and introduces smart contract and other risks

❌ Increasing the amount of parties involved increases operational costs that can lead to decreased profits

Now that we've gotten a good understanding of what DVT is, here's a non-exhaustive list of projects actively working on it:

👉 @ObolNetwork

👉 @ssv_network $SSV

👉 @staderlabs $SD, $ETHx and $rsETH

👉 @divastaking $DIVA


@ObolNetwork has built an ecosystem for DVs for Ethereum that allows node operators  to generate and distribute keys and deploy DVs on their network.

They have already partnered up with many large names in the industry to test their network.

Status: Mainnet Alpha, 40 NOs

The @ssv_network has also built infrastructure to facilitate DVs to launch.

Their focus seems to be with liquid staking protocols to allow them to decentralize their node operators.

Status: Permissioned Mainnet, 40 Operators, 353 Validators
🪙: $SSV

@staderlabs decided to directly implement DVT into their own liquid staking derivative protocol.

Users can stake their ETH in return for Stader's LSD $ETHx.

Currently 23k ETH ($34.6M) is staked on Stader.

Stader also supports other networks for liquid staking.

🪙: $SD

@divastaking is also taking a crack at LSDs.

They're currently running an Early Staker initiative encouraging users to deposit $ETH or $stETH to their vaults for $DIVA as they wait to launch on Mainnet.

Status: Testnet and accepting deposits on Mainnet
🪙: $DIVA

 Hopefully you've learned something new about DVTs!

@TheDeFISaint's post on DVTs helped me out in my research and I definitely encourage you all to check it out:

https://twitter.com/TheDeFISaint/status/1712757426363986096

Huge shoutout to @Leo_Glisic for his amazing thread on DVT written all the way back in May 2022!

Borrowed a diagram from his thread when preparing this one (credited in image description).

https://twitter.com/Leo_Glisic/status/1530589456872271872

Be sure to follow these gigabrains who post way more consistently than me:

@_FabianHD
@schizoxbt
@CryptoDragonite
@pt1mfv_
@rektdiomedes
@Chinchillah_
@arndxt_xo
@0xsurferboy
@0xShinChannn
@Slappjakke
@DeFiMinty
@CryptoShiro_
@crypto_linn
@thelearningpill
@2lambro
@poopmandefi

Distributed Validator Technology (DVT): A More Decentralized Future to Ethereum Staking

So... @CurveFinance was exploited this weekend...

What happened?

What were the impacts?

All you need to know about the hack below  👇

On Sunday July 30th, a hacker drained multiple Factory Pools on Curve by exploiting reentrancy lock issues .

The smart contracts were using Vyper versions 0.2.15, 0.2.16, 0.3.0.

This resulted in the hacker draining over $40M.

What are factory pools?

Factory pools were created for projects to permissionlessly deploy their own Curve pools with any asset.

These pools can also build off other base pools on curve, dipping into the already large existing liquidity that the platform is known for.

You can read more on Factory Pools by reading Curve's docs here:
https://resources.curve.fi/factory-pools/pool-factory#understanding-factory-pools

Notable pools that were affected are:

@MetronomeDAO's msETH-ETH pool ($1.6M),

@JPEGd_69's pETH-ETH (>$11M) and,

@AlchemixFi's alETH-ETH pool (>$13M).

32M CRV tokens valued at $22M were also drained from the swap pool.

This exploit spooked out many users and liquidity providers of Curve.

Even though the total impact of the hack was estimated to be around $40M, Curve's DEX TVL declined by $1.53B on July 30th.

That's a 42% decline in TVL in one day!
(Chart from @DefiLlama)

How has this impacted Curve's $crvUSD?

Well, the stablecoin's TVL only declined by ~$11M, which isn't significant as seen on the chart below.

This, along with the TVL charts will be very interesting to pay attention to as we evaluate participant confidence in the protocol.

$CRV prices had erratic behaviours on-chain, dipping all the way down to $0.44 on Uniswap V3 (and wicking lower at different points).

The drop was less dramatic on higher liquidity centralized exchanges like Binance, dropping all the way down to $0.58.

This aggressive drop in price raised concerns over the founder's loans on Aave V2.

Curve's founder  @newmichwill is notoriously known for having a significant sum of USDT borrowed against his $CRV tokens on Aave.

This loan has been the center of attention in the past.

https://twitter.com/JackNiewold/status/1595126505994014720

At the time of the hack, there was over $100M USD of $CRV that would have been liquidated if $CRV dipped to $0.42.

Thankfully many of those debts have been repaid throughout the day, lowering the liquidation price to ~$0.37. (As of July 30th)

Luckily, @AaveAave uses @chainlink as a price oracle for its liquidations.

If the protocol depended on on-chain exchanges as oracles, there would be a good chance that a 9 figure liquidation would occur, causing serious repercussions to the DeFi ecosystem.

If you're interested in reading more about the hack, @TheBlock__ wrote a great piece on it below:

https://www.theblock.co/post/242066/curve-finance-factory-pools-targeted-due-to-reentrancy-vulnerability

@DefiIgnas also covered this situation very well in his mini-thread below:

https://twitter.com/DefiIgnas/status/1685739128015765504

Hack survivoooors
@_FabianHD


@pt1mfv_


@francescoweb3


@DeFiMinty


@schizoxbt


@Subli_Defi


@0xsurferboy


@rektdiomedes


@chilla_ct


@CryptoKoryo


@2lambro


@thelearningpill


@0xFlips


@crypto_yuvi


@burstingbagel

Other DeFi heads
@DAdvisoor


@Louround_


@CJCJCJCJ_


@crypthoem


@0xSalazar


@WinterSoldierxz


@jake_pahor


@kindahangry


@Slappjakke


@arndxt_xo


@CryptoShiro_


@ThisIsM1NH


@crypto_linn


@rektfencer


@NNovaDefi


@0xShinChannn


@DefiIgnas


@0xFastLife

CurveFinance Exploited: The Impact and Aftermath

Token-Bound Accounts. Yes, you read that right!

🤖 If you haven't heard about ERC-6551 yet, you're missing out.

Here's everything you need to know about the new token standard that will change the way we interact with our wallet. 💸

We'll be exploring the topic in three sections:

1⃣  What is ERC-6551?

2⃣ Use cases for the new token standard.

3⃣ More content on ERC-6551!

Part 1⃣: What is ERC-6551

This new token standard allows NFTs to OWN assets.

What does this mean, well, an ERC-6551 token can hold other assets inside of it.

On a more technical level, ERC-6551 allows for the NFT wallet to sign transactions and messages and directly own assets just like any other wallet can today!

The fact that this one token can subsequently hold multiple other tokens means that multiple assets can be transferred in one transaction!

@BennyGiang gives an example in his article (linked at the end of the thread) showing the usefulness of this feature.

Taken from Benny's article:

Scenario A — WITHOUT token bound accounts

“Bob mints an Apple NFT from a project called Fruits. A few months later the project decides to airdrop $FRUIT tokens which are automatically deposited in the same wallet.

At an IRL event they issue out a bunch of POAPs for collectors to claim. When Bob decides to sell his Apple NFT none of the tokens, POAPs, or transactions relating to the Apple NFT are transferred.”

Scenario B — WITH token bound accounts

“Bob mints an Apple NFT and later receives $FRUIT tokens as an airdrop. POAPS received through IRL events are transferred to the Apple NFT’s account/wallet.

When Bob sells his NFT everything will come with it. All of the transaction history/provenance is also recorded within the Apple NFT and is something that will be later reviewed by a serious potential buyer”

-- End of Benny's example.

As you can see, this now allows people to buy, sell and transfer bundles of assets, unlocking lots of value for groups of assets!

This also can save gas fees, as transferring multiple assets can now be done in one transaction!

Let's explore some more use cases...

Part 2⃣: Use cases for ERC-6551

The possibilities are endless with what you can do with token-bound accounts! I prefer referring to them as bundled assets.

Use-case 1: Video game characters

Imagine you're playing an RPG and your character just slayed the final wassie boss and the loot is the one and only @loomdart blueberry of truth!

Now your character, represented as an ERC-6551 of course, can actually carry that item!

What does this mean?

If you want to transfer your character from one wallet to another, you can do so in one sweeping transaction and have all your character's attributes and items follow with it!

Your character wants to sell the mighty blueberry? No problem either!

Use-case 2: DeFi

Hear me out.... DeFi ETFs...

Imagine being able to buy a basket of tokens at the exact allocation you'd like... IN ONE TRANSACTION?

This is one of the many applications ERC-6551 can have on DeFi.

I can spend a whole thread just discussing the many different potential implementations of ERC-6551.

It'll be exciting to see what the genius builders in the space come up with as the standard gets adopted!

Part 3⃣ : More content on ERC-6551!

Other people have done great jobs covering ERC-6551 as well.

Starting with @WhatTheLJW's great breakdown on the topic.

https://twitter.com/WhatTheLJW/status/1671156620376805381

@BennyGiang's article announcing the launch of ERC-6551:

https://medium.com/future-primitive/tldr-nfts-have-their-own-wallets-try-it-here-http-tokenbound-org-6fac135a1f9d

Link to the EIP:
https://eips.ethereum.org/EIPS/eip-6551

Link to demo on testnet:
https://tokenbound.org/

Where do you think the ERC-6551 standard will be adopted first?

What about this new token standard excites you most? Gaming? DeFi? Collectible NFTs?

Let's discuss in the replies!

Also shoutout to @2lambro for inspiring me to make a GIF for this one!

Tagging for your thoughts on this
@_FabianHD


@pt1mfv_


@francescoweb3


@DeFiMinty


@schizoxbt


@Subli_Defi


@0xsurferboy


@rektdiomedes


@chilla_ct


@defi_mochi


@CryptoKoryo


@2lambro


@thelearningpill


@0xFlips


@crypto_yuvi


@burstingbagel

Tagging for your thoughts on this pt2
@DAdvisoor


@Louround_


@CJCJCJCJ_


@crypthoem


@0xSalazar


@WinterSoldierxz


@jake_pahor


@kindahangry


@Slappjakke


@arndxt_xo


@CryptoShiro_


@ThisIsM1NH


@crypto_linn


@rektfencer


@NNovaDefi


@0xShinChannn


@DefiIgnas


Introducing Token-Bound Accounts: ERC-6551

There has been a rise of popularity of decentralized stablecoins amid the recent Tether and USDC scares.

🏝️ What's going on in stablecoin land?
🏆 Who are the top players?
🛣️ Where are things headed?

Let's explore the stablecoin landscape. 👇

It seems like every other week we hear about a new stablecoin project launching.

So many different implementations of them. Before diving into all these different projects, it's important to take a step back and understand the current landscape.

The total stablecoin market cap has decreased to $128B from its $187B all time high in May of 2022 (32% decline).

Currently, the most dominant stablecoin, with 65% dominance, is @Tether_to $USDT.

It's interesting to see the fluctuations in stablecoin dominance over time.

$USDC was gaining market share against Tether throughout 2021 and 2022, but that trend reversed in 2023.

The USDC depeg in March has contributed greatly to large USDC redemptions.

The lion's share of stablecoins reside on Ethereum Mainnet (54%), with a surprisingly large amount living on Tron (34%).

Followed by BNB Chain (4.4%) and Arbitrum (1.35%).

Ethereum's stablecoin dominance can be attributed to multiple reasons.

1⃣ The rich DeFi ecosystem. (Ethereum currently holds 57% of DeFi TVL)

2⃣ Seen by most as the safest chain to mint assets.

3⃣ The growing rollup ecosystem.

If you're curious as to why I believe Ethereum can end up being seen as the canonical chain for valuable assets due to its rollup-centric roadmap, don't miss one of my first threads where I cover that thesis:

https://twitter.com/OvrCldJonny/status/1620436764404891655

Many people ask why Tron @trondao is second on the list of stablecoin MCap dominance.

You may have heard about @justinsuntron's $USDD experiment, but that's not the main reason why there is so much stablecoin liquidity on the chain.

There is more $USDT issued on the Tron network than on Ethereum ($40.4B on Tron and $35.8B on Ethereum).

The second largest stablecoin on Tron is @tusdio $TUSD with almost $2.4B, followed by $USDD ($545M) and $USDC ($360M).

So why would Tether mint so much on Tron?

Tron's low transaction fees makes it very attractive for exchanges and users to exchange USDT in an affordable way.

Transaction fees to transfer a TRC20 token can be a fraction of a cent.

Tron has also been partnering up with smaller governments to offer the infrastructure for their stablecoin transfers.

Exchanges also contribute to this volume, as users send USDT between their exchange accounts on the Tron network to save fees.

https://www.youtube.com/watch?v=oLa1FJw_rHQ

It'll be interesting to see the shift of where stablecoins will reside in the future with modern cross-chain communications like @circle's CCTP.

Allowing for native USDC to be minted/burned when being bridged will definitely shift the numbers of stablecoin volume on rollups.

Here's a timeline of stablecoin's dominance over the total crypto market cap over 2022 (and beginning 2023).

As we see, stablecoin marketcap dropped after the Terra collapse and the FTX collapse.

The market cap of stablecoins increased as traders rush to stable assets in a falling market.

As the bear market continued throughout 2022, many catastrophic events occurred such as the 3AC, LUNA and FTX collapses.

Increased fear and the wavering trust in crypto assets by many traders lead to the redemption of centralized stablecoins as people rather hold USD in their own bank accounts than a crypto-asset backed by USD in someone else's account.

This sidelined capital started to work its way back into the market as people onboarded their USD back into crypto throughout 2023 as prices started to increase again.

(The major outflow in March was due to the SVB event with USDC)

As crypto works its way back from its market cycle lows, investors are easing their way into stablecoins again.

There are more and more proven use cases for stablecoins emerging, and  builders are taking notice.

This has lead to a large market opportunity for stablecoin providers and has sparked a stablecoin renaissance, with many innovative projects leading the way with creative economics.

Notable mentions are: @fraxfinance, @CurveFinance, @AaveAave, @vestafinance, etc.

Stablecoin projects will be competing on the following metrics:

1⃣ Liquidity

2⃣ Safety (peg stability)

3⃣ Yield opportunities

The tradeoffs between these metrics will lead to a wide range of stablecoin applications, and I'll try my best to cover them all in the future.

Some of my statistics and graphics come from @coingecko's 2023 stablecoins statistics report found here:

https://www.coingecko.com/research/publications/stablecoins-statistics

Screenshots from @DefiLlama's amazing stablecoin dashboard were also used in this thread.

Also shoutout to @TweetThreadFred for the wassie art!

If you're interested in diving deeper into who's behind the leading centralized stablecoins, I've made threads analyzing USDC, USDT, BUSD, USDP, TUSD and GUSD.

Note: some of the stats may be a little outdated but most of it is still relatively accurate.

Part 1:

https://twitter.com/OvrCldJonny/status/1635596679100649472

Centralized Stablecoin Analysis Part 2:

https://twitter.com/OvrCldJonny/status/1638148545479049216

What are your favourite stablecoin projects?
Which ones would you like me to cover in detail?

Let me know in the replies!

Centralized stablecoin enjoyoooors:
@_FabianHD


@pt1mfv_


@francescoweb3


@DeFiMinty


@schizoxbt


@Subli_Defi


@0xsurferboy


@rektdiomedes


@chilla_ct


@defi_mochi


@CryptoKoryo


@2lambro


@thelearningpill


@0xFlips


@crypto_yuvi


@burstingbagel

Decentralized stablecoins ftw:
@DAdvisoor


@Louround_


@CJCJCJCJ_


@crypthoem


@0xSalazar


@WinterSoldierxz


@jake_pahor


@kindahangry


@Slappjakke


@arndxt_xo


@CryptoShiro_


@ThisIsM1NH


@crypto_linn


@rektfencer


@NNovaDefi


@0xShinChannn


@DefiIgnas

Stablecoin Landscape

A new rollup has entered the arena... opBNB!

#Binance just announced an optimistic rollup that is already live on testnet.

Did Binance really just fork Optimism and launched their own L2?

Here's a summary of what's going on 👇

opBNB is based on the bedrock version of the Optimism OP Stack that is EVM-compatible.

This rollup is built on top of the existing BNB Chain and not Ethereum Mainnet (like most other Optimistic rollups we have seen so far).

Binance claims that opBNB will be pushing gas limits "to a whopping 100M", more than Optimism's 30M gas limit (according to their article).

They claim that opBNB will be able to process 4000 transfers per second with average transaction costs below half a cent.

Not going to lie, the gas limits seem concerningly high, but the technical details of blockchain scalability is not my area of expertise.

BNB will remain the native currency of the opBNB chain.

The new rollup will have "native integration" with the BNB ecosystem, so we can expect a similar on and off-ramp experience directly with the Binance CEX as we do with the existing BNB Chain.

In their docs, they seem to hint at the fact that they'll be implement Proto-Danksharding and Danksharding to the existing BNB Chain when possible.

They have also announced their own dedicated storage layer called BNB Greenfield.

The team seems to want to be competitive in the gaming and NFT space to compete with the likes of Polygon with their low fees and easy onboarding experience.

They mention gaming, metaverse and social networks several times in their docs and announcements.

 Competition in the general purpose rollup space is fierce right now.

With all the new ZK-rollups entering the space on top of the existing optimistic rollups, developers are spread quite thin.

The @BNBCHAIN team is banking on the existing large BSC ecosystem migrates and builds on this new opBNB chain to kickstart the ecosystem.

Will their existing community pull through? Will this just end up fragmenting user base and liquidity across their two existing chains?

Their docs state that opBNB will interoperate with other L2 platforms "like Optimism". Does this mean that it will be connected to @optimismFND 's  Superchain?

If so, this would mean a lot of interoperability between opBNB, Optimism and Coinbase's @BuildOnBase L2 coming soon.

I quote tweeted the announcement thread here along with,

the announcement article:
https://www.bnbchain.org/en/blog/introducing-opbnb-unleashing-a-new-era-of-scalability/

their technical docs (took some graphics from here):
https://docs.bnbchain.org/opbnb-docs/docs/intro

https://twitter.com/BNBCHAIN/status/1670783527485419521

So what are your thoughts?

Will you be experimenting the new BNB L2?
Do you think Binance is bringing anything new or useful to the table?

Let me know your thoughts in the replies!

If you'd like to learn more about Optimism and Arbitrum's roadmap and how they compare, be sure to check out my thread on that here:

https://twitter.com/OvrCldJonny/status/1645801123834662916

Tagging the degen army for their thoughts:
@_FabianHD


@pt1mfv_


@francescoweb3


@DeFiMinty


@schizoxbt


@Subli_Defi


@0xsurferboy


@rektdiomedes


@chilla_ct


@defi_mochi


@CryptoKoryo


@2lambro


@thelearningpill


@0xFlips


@crypto_yuvi


@burstingbagel

Degen army part 2:
@DAdvisoor


@Louround_


@CJCJCJCJ_


@crypthoem


@0xSalazar


@WinterSoldierxz


@jake_pahor


@kindahangry


@Slappjakke


@arndxt_xo


@CryptoShiro_


@ThisIsM1NH


@crypto_linn


@rektfencer


@NNovaDefi


@0xShinChannn


@DefiIgnas