@hasufl
Blockspace != blobspace
Blobspace is anticipated to increase capacity over the coming years + EF/others regularly argue that DA will not be the bottleneck, and it will be cheap. This leads me to believe there is more speculative short interest in blobspace than blockspace
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I've been investing into early stage crypto for a few years, and seen this pitch around 3-5x per year, every year. its such an obvious product to build, so why hasn't anyone done it?
its because since EIP-1559, there is no natural short side on base fee for gas or blob space.…
1/ Blobs unlock unprecedented scaling for L2s, but have huge gas spikes and price volatility. They lack financialization like hedging and fractionalization.
I've just quit my job at Apple to build blobspace derivatives & contribute to the ETH ecosystem:
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@tamarajtran
if blobspace becomes super cheap, what is the need to hedge it?
further, why should that lead to more speculative short interest in blobspace?
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@hasufl
If blobspace is generally cheap but has occasional spikes, that's exactly the reason to hedge it. It's to avoid those brief periods of volatility. Blobs are expensive right now, and they're anticipated to be cheap, so therefore people should sell at this price
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