Ethereum layer 2 challenger Celestia is about to join the fray

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Ethereum layer 2 challenger Celestia is about to join the fray

The slew of blockchains released over the past year has left most DeFi denizens apathetic to new launches. There were about half a dozen new Ethereum layer 2s, including Aptos, Sei, and Sui.

Another contender, Celestia, just announced it's about to join the fray.

If you've been a active user on one of Ethereum's many layer 2 networks, you may be eligible for an airdrop of its TIA token, even if you haven't been paying attention to Celestia.

Token airdrops have proven themselves as a great way to bootstrap users and liquidity - look no further than the top layer 2 Arbitrum. Celestia has a better chance than most because it's focused on something unique: modularity.

In contrast to relying on a single blockchain, Celestia uses interconnected modules that are each responsible for specific functions.

Celestia cites a pioneering innovation in scalability, flexibility, and interoperability. The arrest of Su Zhu, the co-founder of Three Arrows Capital, offers a few lessons.

Among them: going on an soul-searching trip to Bali and then spinning up another crypto business isn't enough to shirk responsibility for the collapse of your $3 billion trading firm.

Zhu's arrest in Singapore was heavily influenced by his new venture OPNX, a crypto exchange that also lets individuals buy and sell bankruptcy claims for FTX, Voyager, and Three Arrows Capital. In addition, OX, which crashed over 44% on the news, shows little sign of recovery.

On the bright side, those who lost money lending to Three Arrows Capital may have a better chance at getting some of it back now that Zhu is being forced to cooperate with liquidators.

Singapore authorities also have an arrest warrant for Kyle Davies, the co-founder of Three Arrows. He was last seen in Dubai, where he planned to open a restaurant focusing on chicken-based cuisine.

Lastly, Osato Avan-Nomayo wrote up another story on DAO rage quitting, this time at Jade Protocol.

Rage quitting is becoming more common among DeFi protocols.

There are dozen of DAOs that raised funds, usually by selling tokens, trying to make something work, but failed. Now, token holders are voting to dissolve what's left to recoup some of their losses.

I expect the DAO rage to continue, he said. There are still many other DAOs in similar positions, and with increasing competition for a declining pool of blockchain-based liquidity, it's going to get harder for many projects to justify burning investors' cash.

As long as tokenholders have the motivation to hold team members accountable, they have no choice but to keep it going, he said.

Crypto groups have airdropped a whopping $2.2 billion in tokens to users in 2023, far surpassing the previous record of $2.2 billion.

Airdrops not only become a way for projects to acquire users and cut out middlemen but also to efficiently decentralise ownership.

Yearn Finance developer Banteg has created a heat map of more than 2.1 billion native Ether transfers.

The transfer patterns are hidden within the noise, which Visualise liquidation cascades and likely Sybil attacks over the past seven years of Ethereum activity.

For me, the distinctive purple hue of Banteg's chart makes it all the more mesmerizing and shows how, with the right approach, data doesn't have to be soulless and dry - it can be beautiful, too.

FTX's bankruptcy case started a new stage last week when the courts gave the defunct exchange the go-ahead to liquidate its crypto holdings.

But former customers are increasingly worried that FTX's new management may try to clawback funds from those who exited the market in the 90 days before its collapse.

As @0xg00gly points out, the precedent set in the liquidation of Cryptocurrency lender BlockFi may protect those who withdraw less than $250,000 or are based outside the US.

Tim Craig, the DeFi correspondent for DL News, is based in Edinburgh. Tim has more than $1,000 worth of Ether, Swell staked Ether, Redacted Cartel, and GMX. He also holds an insignificant amount in NFTs.