Contract Renewal & Concerns - Compound DAO is considering renewing Gauntlet's risk contract for $2.3 million [1] - A fixed $2.3 million annual fee with limited downside protection is a concern [2] - Weak ROI (Return on Investment) from incentive programs is noted [2] - Unclear rationale behind parameter changes is highlighted [2] - Potential conflict of interest due to Morpho grants is raised [2] Proposed Alternative - A performance-based agreement is suggested as a possible alternative [2]

More on this: https://t.co/KhRyXol3yVIgnas | DeFi (@DefiIgnas):1/ Is BTC a risk-on or risk-off asset?Blackrock hears this question more than any other.Their latest research shows Bitcoin is indeed risky but not a "risk-on" asset.Here's the breakdown: 🧵 https://t.co/2X0NIr22Yl ...

The easiest BTC trade:When both SPX and BTC dump and gold pumps (like today!) on bad macro news, just buy the BTC dip.BTC has low long-term correlation with equities and risk assets (Blackrock did the research; don't listen to CT on this).Short term correlation with risk assets pop up around major macro events, but they don’t last. ...

So bad news = bad news now? ...

The proposal by Gauntlet: https://t.co/lj0c25eE0q ...

Compound DAO is voting on whether to renew Gauntlet’s $2.3M risk contract for another year.Alphagrowth wrote a case against:– Fixed $2.3M annual fee with little downside protection– Weak ROI from incentive programs– Unclear parameter change rationale– Conflict of interest via Morpho grantsMaybe agreement should be performance based ? ...

Stablecoin Market Dynamics - Ethereum's dominance in stablecoin transfers is not significant, indicating limited early cannibalization [1] - Tron appears to be the biggest loser in stablecoin transfers, followed by Solana, Polygon, and L2s [1] - Ethereum stablecoin usage is primarily driven by yield farming, DeFi activities, and long-term holding [1] - Growth in stablecoins is generally bullish for the crypto market [2] Stripe's Impact - Stripe's choice of an L1 over an L2 may reduce demand for ETH holding and fee burning [1] - Stripe's ownership of the full stack (Bridge, Privy, Tempo) funnels users and volume into its ecosystem, potentially diverting them from Ethereum blockspace [2] - A potential coin launch by Tempo could further dilute capital and attention [2] - Stripe's adoption of EVM compatibility is a positive aspect [2] Ethereum (ETH) Outlook - It's difficult to definitively frame Stripe's actions as bullish for ETH [3] - New users entering via Stripe could eventually participate in Ethereum DeFi [2]

All chains compete to be cheaper & faster.Not ETH.Ethereum is slow and expensive but decentralized, secure with $ETH fighting for its role as SoV (not here yet so it's not priced in).Vivek is right. New corpo L1s isn't great for L2s but definitely worse for alt-L1s.Vivek Raman (@VivekVentures):The beginning of the end for alt-L1s ...

Interoperability & Fragmentation - Chain fragmentation benefits interoperability protocols [1] - Interoperability solutions include bridges and oracles like Chainlink [1] Payment L1s - The likelihood of a single globally-dominant payment L1 is decreasing [1] - Tether, Circle, and Stripe are building different payment L1s [1] Ethereum's Role - Ethereum is positioned as a liquidity hub for all chains [1]

Tempo: Bullish or bearish $ETH is the key question.ETH isn't dominating stablecoin transfers, so early cannibalization is small. The biggest loser looks like Tron, then Solana, Polygon and L2s.Ethereum stablecoin usage is mostly yield and DeFi based, plus long-term holding.But Stripe choosing an L1 over an L2 reduces demand for ETH holding and fee burning.Stripe also owns the full stack: Bridge, Privy and now Tempo. That funnels users and volume into Stripe’s ecosystem instead of Ethereum blockspace.On top, ...