Conversation

Daily DeFi Thoughts, 2020-08-13: Building a performant on-chain exchange is hard. But it's also the goal, and all the EV is in doing it as well as you can. Choose the best chain, build the best team, and get the strongest partners you can for your ecosystem.

Quote Tweet

SBF

@SBF_FTX

Aug 10, 2020

Daily DeFi Thoughts, 2020-08-11: Liquidity mining, in its current form, is stupid. It artificially inflates metrics. Maybe it was good for marketing but don't drink your own cool-aid: citing TVL is like citing fake exchanges' fake volume. $50m in real VL >>> $500m in fake VL. twitter.com/SBF_FTX/status…

Show this thread

SBF

@SBF_FTX

Aug 13, 2020

Layer 2s are really cool. But they also rely on the layer 1 for core functions. Rather than compromise on functionality, just build on the layer 1 that works; you can use rollups between it and ETH like you can with layer2's.

This Tweet was deleted by the Tweet author. Learn more

Replying to

and

Hey Sam, I don’t agree that. The only downside for L2 now are deposit and withdraw. But once you are on L2 fast line. All transfers will be free and instant for now!

Replying to

and

I do think L2s are really cool! But I don't think those are the only downsides. If you're on a L2, you're taking a bunch of repeated actions on a chain without a real consensus mechanism; so you're relying on the L1 for that. So some important things are still gated by the L1.

Replying to

and

I won’t call it repeated actions. It’s more like you move all the actions/computations offchain and put the results to verify onchain in order to save mass resources.

Replying to

True, but you lose a lot of insight into what's happening with the actions until they make it onchain. And the onchain-ing of it happens at ETH speed. That all being said -- it does do way better than a fast L1 at some things! (Like orders/second when submitted in bulk.)

SBF

@SBF_FTX

Replying to

@SBF_FTX

@jay_loopring what do you see as the largest advantages of L2s over fast L1s?

3:39 PM · Aug 13, 2020Twitter Web App

Replying to

and

TBH, I don’t have a fancy answer now. But I think it’ll enable more potential on Ethereum. Eg, stablecoin payment etc.

Replying to

Oh yeah I definitely think that L2s are what's best for growing out Ethereum. But I think that's mostly because they can _only_ grow out Ethereum because they aren't their own functional chain. Whereas L1s have another option.