#ETHAmsterdam + DevConnect Themes and Takeaways
L222 “Layer 2 2022”
The Layer 2 theme at Devconnect was apparent within one block of the event: it was the name of the wifi password! This narrative is so strong that it was the first thing attendees saw when they arrived.
The week also featured a two day conference called L2BEAT, with a focus on Layer 2 scaling, the future of Ethereum. During one of the most attended talks, Ed Felton, CEO of Offchain labs stated, “The next thing we will decentralize is the validator set.” I’m no fortune teller, but this is where the L2 token comes into play.
Since the conference, another popular Layer 2, Optimism, launched The Optimism Collective — a hybrid governance structure with a native token. From the pressure of the Optimism token launch and the on-stage comments by Ed, I anticipate Arbitrum will launch a token within weeks.
With the combination of economic incentives via tokens and signaling from the Ethereum Foundation, all eyes are on L2. This will mean significant increase in economic activity on Arbitrum and new users for $USDs.
Market Volatility + Decentralized Stablecoins
Huddled around tables at the coworking space, I heard a lot of conversation revolving around algo stablecoins before I even mentioned Sperax. The general consensus was that regardless of market movement, decentralized stablecoins should perform well.
- If the market rips up, the governance token should rip along with it
- If the market crashes, a flight to non-volatile assets should occur, increasing demand for decentralized stable coins — resulting in the governance token ripping up.
The agreed assumptions are that over the next year or two, crypto investors should expect significant volatility. Risk aversion caused by volatility will attract significant demand for stablecoins, but long term holders of crypto aren’t attracted to centralized stablecoins like USDT and USDC due to concerns about centralization. Instead, these users are electing to hedge risk with decentralized stablecoins, and now they have one that will also offer seamless, direct-to-wallet 11% earnings, thanks to $USDs Auto-Yield.
To further explain how governance tokens of decentralized stablecoins accrue value, check out this Medium post on the relationship between $SPA burn and $USDs growth, or this article on the revenue generation from $USDs activity passed to $SPA stakers.
Sperax Events Are a Must
During ETHAmsterdam, I had the opportunity to introduce Sperax and $USDs to a crowd of engineers, inventors and builders. I briefly explained the concept of Auto-Yield and introduced the upcoming growth initiative for liquidity partners. This was the first public mention of our upcoming program, proof that alpha is at the developer conferences!
Sperax is in the process of organizing an NYC meetup for those passionate about Defi to connect. We will also be present at in-person Ethereum conferences all over the world.
Video of the talk — Posted by MetisDAO:
Alec Interviewed by Ashton Barger of Zebu Live — Posted by MetisDAO: