June 24, 2021: Ropsten Burns 🔥🚒

EIP-1559 Live on Testnet + Curve Liquidity Debate

Important note: Curve gauge migrations are occurring on Polygon and Fantom as the team appears to be expanding cross-chain capabilities. There is no particular rush, except that funds will not earn juicy yields until you migrate!

Curve Finance @CurveFinance

We have a gauge migration on Polygon. If you staked in one of those pools - please migrate (with the button) polygon.curve.fi/aave/withdraw polygon.curve.fi/ren/withdraw

Curve Finance @CurveFinance

Please do the same with Fantom pools also: ftm.curve.fi/fusdt/withdraw ftm.curve.fi/2pool/withdraw ftm.curve.fi/ren/withdraw (No rush but old gauges earn no CRV)

Curve Finance @CurveFinance

We have a gauge migration on Polygon. If you staked in one of those pools - please migrate (with the button) https://t.co/CH2775ciFD https://t.co/Tg9lhsEg71 https://t.co/vPxO4nGwZS

Feel The Burn

EIP-1559 is officially live on Ropsten!

Lark Davis @TheCryptoLark

EIP 1559 live on #ethereum testnet, welcome to a new era! ropsten.etherscan.io/tx/0x218582709…

You can witness Ethereum being burned in real time using https://watchtheburn.com/

Anthony Sassano Ξ 🦇🔊 @sassal0x

You can now watch ETH being burned in real time on the Ropsten testnet using this tool: watchtheburn.com

Based on the first two thousand blocks, Testnet is burning an average of just over 3 blocks per ETH. Now it’s time to light your own fires!

Péter Szilágyi (karalabe.eth) @peter_szilagyi

Did you know 1559 can potentially mess up #Ethereum mainnet in a super bad way if we missed something? You know what you can do to prevent that? Test the hell out of 1559 on Ropsten. It's ok to murder Ropsten! It's ok too murder Geth nodes on Ropsten. Go wild with it! 🔥

Péter Szilágyi (karalabe.eth) @peter_szilagyi

@_RustyRabbit Good point: 1559 introduces a new tx type. Pools and nodes need to juggle both old and new ones, which is not that obvious (tx pool side). Might make sense to try and mess with the pool by playing with old gasPrice vs. new maxPriorityFeePerGas and maxFeePerGas.

For greater detail onto the specifics of what to expect with EIP-1559, check out these recent threads.

Tim Beiko | timbeiko.eth 🦇🔊 @TimBeiko

And here it is, at 1127 words: AllCoreDevs Update 004 hackmd.io/@timbeiko/acd/ 😄 Things you should know about London activation + 1559 support 🔥, the current state of The Merge ⛓️ and eth specifications ✍️, and updates on two Shanghai candidates: EIP-3074 & 3540 🇨🇳

Tim Beiko | timbeiko.eth 🦇🔊 @TimBeiko

Starts writing an AllCoreDevs update, unsure about whether it's even worth it given the London testnet blog went out only a few days ago. Roughly 2/3rd done and ... looking like another 1000 word update 😅 A _lot_ happens on Ethereum each month. https://t.co/6X8WXNyE9U

Evan Van Ness @evan_van_ness

EIP1559 is happening in a matter of weeks. Beyond just $ETH number go up, here is a thread about all the important non-pecuniary 1559 benefits for #Ethereum 1/x 👇

If you only care about price, there’s also plenty of debate. We now at least have one metric. Despite EIP-1559’s coordinated burn the price of $ETH on Ropsten is unchanged.

찌 G 跻 じ MBA, CFA, FRM, CFP, NGMI, HFSP, HENTAI @DegenSpartan

@Tetranode do you think that the typical ETH fan has a significant cash portion in reserve or do you reckon most are overweight on ETH spot in hopes for 1559 fireworks?

Curve Liquidity Debate

Finally, we wanted to highlight a new discussion centering around an old article.

An article from December by Mechanism Capital didn’t get a ton of play at the time, perhaps because of glaring math errors. The article did at acknowledge Curve was #1, but didn’t fare so well when things moved from counting to algebra.

The general thesis of the article was that Curve was overpaying for liquidity, which @WormholeOracle picked up on with a recent poll.

W⬡rmholeOracle @WormholeOracle

Do you believe Curve overpays for liquidity? $CRV $veCRV Question prompted by this article:

mechanism.capital“Liquidity Targeting”: Toward More Efficient Liquidity Mining Programs

This prompted a good discussion worth reading in full.

DefiMoon @DefiMoon

@WormholeOracle @CurveCap Liquidity attracts volume. Imo there is no such thing as overpaying for liquidity or "optimizing" for the right amount of liquidity when you have no idea what the market really needs at any one time. The more liquidity, the better.

W⬡rmholeOracle @WormholeOracle

@DefiMoon @CurveCap There’s some value above which it stops being worth paying for more liquidity. Yes, I think we don’t have a good method to determine what the market needs (or even if it is possible to determine)

ne1k0 @ne1k0

@DefiMoon @WormholeOracle @CurveCap Yeah, I'm not sure this is possible; it's totally market driven. $CRV could be worth nothing, and the emission rate would still be the same. Are we underpaying then??

W⬡rmholeOracle @WormholeOracle

@ne1k0 @DefiMoon @CurveCap My thinking was that, if the $ value of emissions were to exceed the perceived advantage of paying more for liquidity, there could be an alternative gauge type that voters might choose to allocate to (ie. Community fund gauge)

ne1k0 @ne1k0

@WormholeOracle @DefiMoon @CurveCap A way it could be done is during the claim op, a max_yield over time_since_last_claim check would divert any overage. This max_yield could be 1e18% at start, and we could vote it down to enforce a cap on all pools. However, that juicy 1000% on new pools is what bootstraps them.

W⬡rmholeOracle @WormholeOracle

@ne1k0 @DefiMoon @CurveCap I don’t think it’s advisable to limit pool yield, but there are probably a number of metrics to help determine how useful liquidity is in a pool. For one, I’d like to see liquidity depth of curve pairs compared with other major exchanges.

The Curve team as always got the last laugh.

Curve Finance @CurveFinance

@AutomataEmily @CurveCap In retrospect, it was not overpaid for

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For more info, check our live market data at https://curvemarketcap.com/ or our subscribe to our daily newsletter at https://curve.substack.com/. Nothing in our newsletter can be construed as financial advice. Author is a $CRV maximalist and holds positions in ETH on both Mainnet and Ropsten.