Expanding Bitcoin Markets at @Bitflow (co-founder); OMSCS ‘20 🐝;
Atlanta, GA
Joined September 2019
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dylan.btc retweeted
Bitcoin’s execution layer.
Increasingly convinced that there will likely be one main execution layer for Bitcoin. Game theory of staking dynamics, combined with liquidity concentration, points to this.
Staking dynamics: Ethereum has one major source of low-risk yield: the consensus yield. Even though you could earn higher-risk, higher-return yield elsewhere, most capital goes to the lowest-risk option: the effective ETH fed rate. Multiple on-chain Bitcoin yield options would converge on the lowest-risk yield that is meaningful enough. Offering higher yield with added risk can’t lure that capital away. The Bitcoin layer that can offer the effective BTC fed rate yield at scale is the one with the largest market cap and economy size.
Liquidity concentration: We saw this with Solana vs. Ethereum L2s. A single execution chain offers better UX, and everyone benefits from concentrated liquidity rather than fragmented liquidity and assets spread across multiple L2s (the various Ethereum ones).
We can try to put a valuation framework for what Bitcoin’s execution layer should be worth (an exercise for another post). Right now, I’m just making the point that the probability of getting N different execution layers is very low (unstable equilibrium and bad UX for users). Either one major execution layer exists where, say, 10-30% of BTC supply is actively deployed, or Bitcoin remains a passive asset.
I’m an optimist by nature; I believe that we’ll get one major Bitcoin execution layer.
dylan.btc retweeted
🚨CLOSED SOURCE SOFTWARE IS DEAD
... especially in web3. Security researchers are now achieving hash-perfect recompilation of Rust projects' source code, using AI. And then they find Critical vulnerabilities.
Insanely cool work by @osec_io, love it👏
osec.io/blog/goonfi-decompil…
dylan.btc retweeted
I’m no longer sure what “intellectual property” means when intellect becomes free.
dylan.btc retweeted
Quantum-safe signatures are far larger, so Bitcoin's transaction capacity shrinks sharply after an upgrade.
Bitcoin then needs a layer secured by Bitcoin and fast to upgrade. That layer is Stacks, powered by STX.
dylan.btc retweeted
Stablecoins are absolutely in competition with Bitcoin for the role of the future of money. And winning.
dylan.btc retweeted
Anchorage Digital is enabling institutional Bitcoin staking with @Stacks.
With the PoX-5 upgrade, institutions will be able to earn BTC rewards while their Bitcoin stays on Bitcoin L1 in secure custody.
Learn more:
anchorage.com/press-room/anc…
If you follow this industry and haven’t heard of @TychoOnnasch yet ... go fix that asap
I'm watching him put on a master class demo of what top tier product launches look like in crypto. The growth and GTM speed by @ZestProtocol is remarkable
Nobody in Bitcoin doing it better
dylan.btc retweeted
I backed Zest Protocol because this team has been building on Bitcoin longer than almost anyone, and they know how to ship great products with amazing user experience. Seeing real Bitcoin collateral working on mainnet, with the coins never leaving Bitcoin, is something I’m incredibly excited about.
dylan.btc retweeted
Bitcoin Collateral Vaults demo is now on mainnet.
Deposit native BTC into a self-custodial vault on Bitcoin L1. Borrow Ethereum USDC against it. The capital layer for Bitcoin.