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Monteluna
@monteluna
Tbh I'm shocked that the Ethereum community hasn't cited Berachain as a reason for *not* trying to tie ETH token to deeper onchain metrics, like proof of Liquidity. Berachain has been down only due to teams effectively Curve War style vampire attacking the chain, so the value of BERA has been dropping vs. Wrapped "yield bearing" BERA. Since ETH only serves as a call option on a future onchain action, this dynamic isn't worth it, but since Berachain has the added mechanism of driving rewards to specific stakers, cartels are naturally driven to bribe to maximize rewards to their validators at the expense of BERA.
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Catch0x22
@catch0x22.eth
i was wondering what might be the catalyst for that conversation what's a better option, basket of assets?
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Monteluna
@monteluna
For Bera or Ethereum? I might have been wonky with words here, but I like Berachain. Its just been obvious holding spot BERA is not optimal. The same with ETH, but where ETH and Beta differ is the premium for the "staked ETH" version of Bera is massive due to capital farmers. I guess I'm saying I'm not sure if any economic games Ethereum ever played to boost its value would actually mean value acrues to token holders. Maybe the optimal strategy is do nothing?
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Catch0x22
@catch0x22.eth
for bera and other similar L2s that rely heavily on ETH pairing like, couldn't they just offer stables for rewards? what actually is the point of the bera token itself tardfi instis like black rock could easily offer better in a simpler delivery without all the hoo-ha
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Monteluna
@monteluna
I don't think a stable would work since your chain is then just capital constrained for gas. That's actually what Gnosis chain sort of does if I'm understanding what you're saying correctly. There are validator revenue and then POL revenue kicked back by validators, so a stable "gas token" would mean validators could kick this back. Berachain also has emissions so that's what the cartels are taking. Emissions are about 9% per year (actually pretty good) and onchain staking cartels have formed to pump validator rewards to their own project POL. Technically I guess this was natural, but it goes beyond any form of NAV since farmers put a premium on the staked tokens, while shorting native BERA. Everyone in Ethereum knows long staked ETH short native is a totally fine trade, but imagine if that was turbo charged with new ecosystem rewards.
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