Pro
Ethereum’s Compliance Concerns are Greatly Exaggerated
Key Insights
- Ethereum’s OFAC-compliant blocks have started to decrease after peaking in late November.
- This improvement is thanks to the efforts of Flashbots as well as the community prioritizing neutrality over profits.
- The relay market is still dominated by Flashbots’ MEV-boost but is moving in the right direction. The builder market is more distributed.
- Ethereum staking returns peaked in November at 11% as the FTX hacker traded with high slippage. Since then, the returns have fallen into a range of 5% to 6%.
Ethereum’s neutrality and censorship resistance have recently come under question as the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the popular fund mixer Tornado Cash. The community has since rallied to maintain Ethereum’s core ethos.
Vive La Révolution
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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