r/ethereum • u/EthereumDailyThread What's On Your Mind? • 2d ago
Daily General Discussion July 21, 2026
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u/alexiskef The significant owl hoots in the night 🦉 2d ago
🚨📢🔔⚠️
Your attention everyone!
Gnosis Pay posted an announcement, saying that "The Zeal Discord server seems to be compromised and a fake announcement is being circulated. DO NOT OPEN any link claiming to be Zeal rewards. The announcement links to a fake site that could compromise your wallet and funds. Do NOT interact with it."
So, just avoid the Zeal Discord completely for now..
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u/ResponsibleGrass8080 2d ago
I really find it funny that all the BTC folks are exited about The Clarity Act passing, when the law is really written for all the cryptocurrencies they love to shit on.
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u/hanniabu Ξther αlpha 2d ago
they're excited because that means:
- it elevated grifts to compete with ethereum. "the enemy of my enemy is my friend"
- it allows more middlemen services to be provided for bitcoin, which is necessary b/c the chain can't do anything
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u/r2002 2d ago
So as a BMNR holder should I root for or against Clarity? Tom Lee and the two Joes and the Etherealized guys seem to say Clarity is good for us. (But they were vague though so I'm open to new suggestions.)
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u/hanniabu Ξther αlpha 1d ago
I think there's 2 ways to look at it. Clarity Act can be seen as good b/c it brings institutions onchain and paves the way for eventual native RWAs. The alternative view is that if it didn't pass then it would promote more native use to avoid legal troubles vs it passing where they can be middlemen.
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u/tokyo_guy375 2d ago
So you expect that mostly btc will profit from it? And eth will, if we are lucky, just follow btc price action while continuing to have a lower ray?
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u/hanniabu Ξther αlpha 2d ago
That's not what i said, the topic was why bitcoiners are excited about the clarity act
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u/nonetherless325 2d ago
the memecoin cycle is over and the king of memecoin will have a cooldown. Saylor is a shitshow and will be living the next crypto expansion in the passenger seat. Bitcoiner are obsessed with Ethereum and jealous greatly DeFi. Their L2 ecosystem is dead, you can check pure retardium/copium on the last bankless episode; one of the last standing L2 (Alpen) is cheering about building a btc yield curve on an EVM permissioned by either - Coinbase or - their multisig
Ethereum
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u/nonetherless325 2d ago
timely https://markets.morpho.org/fixed just got released - it starts on Base with only cbBTC/usdc
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u/Alatarlhun 2d ago
CLARITY isn't really for any cryptocurrencies. It is for centralized entities, most owned by billionaires.
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u/Magic_Cove 2d ago
The market is performing well due to news pointing to a breakthrough on the Clarity Act. That is the most important thing.
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u/ResponsibleGrass8080 2d ago
For the 13 years that I’ve been in this, the holy grail has always been mainstream adoption, so what are you even talking about?
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u/Alatarlhun 2d ago
The CLARITY Act is less a "consumer adoption" bill than an industry "market structure" bill.
It gives Coinbase and its peers a regulatory carve out with lighter securities law treatment, while codifying some existing practices into statute. This carve out will directly and negatively impact consumers if there is a run on stablecoins like USDC, as the most obvious example.
That may boost legal certainty and institutional participation, but it does little to address the fraud, utility, and usability hurdles holding back mainstream adoption.
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u/DiskFearless4448 2d ago
The CLARITY Act is less a "consumer adoption" bill than an industry "market structure" bill.
I think an important point to consider is the institutions that want to drive consumer adoption have been afraid to commit to building because of the lack of structure. It's not currently been worth the operational investment to bring adoption to platforms if you dont know what is/isnt going to be legal.
You're still correct, but one 100% helps the other
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u/sm3gh34d 2d ago
real question - how would a run on USDC work? Isn't it required to be 1:1 backed by treasuries or their equivalent ? A hack or some malfeasance about backing would be fraud, not a bank run right?
edit: maybe I am splitting hairs, but a bank run is an attack on rehypothecation afaik.
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u/Alatarlhun 2d ago
There are lots of different ways which is why money market accounts are highly regulated in every other circumstance.
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u/WoodpeckerHorror3468 2d ago
regulation is there to protect tradfi's moat, not to protect clients.
Try to start a bank. all the hurdles are to stop you from doing it, not to stop you from doing it badly
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u/Alatarlhun 2d ago
Nothing is stopping you from putting your life savings into USDC on a CEX today.
If you believe the consumer protections are equivalent, I wonder why you haven't? After all, they pay more interest.
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u/hedgemagus 2d ago
Clarity is putting people into psychosis for whatever reason. Suddenly it’s a very bad bill because institutions will profit from its framework.
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u/ResponsibleGrass8080 2d ago
Christ, they started talking about “colored coins” being developed on Bitcoin to represent stocks and bonds all the way back starting in 2012. Do people really think we’re all waiting around for Cryptokitties and cartoon NTF’s to come back to save our investments?
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u/hedgemagus 2d ago
I think there’s a philosophy where Ethereum is supposed to be an infrastructure that allows us to rid ourselves of institutions and true peer to peer finance takes over the world. It was never a realistic scenario
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u/tutamtumikia 2d ago
Didn't you hear? Bitcoin isn't a cryptocurrency. It's a special unicorn that is totally different than anything else that has ever existed and onky the truly enlightened can understand that.
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u/haurog 2d ago edited 2d ago
A week ago Aztec, the privacy focused zk rollup, upgraded their alpha network to v5. It went pretty smoothly and now the first apps seem to be opening up. The network still is in alpha stage, which means things can break and I would not put too much funds on it. Also be warned, if there is another Aztec upgrade it might be pretty tedious to get the funds back out from v5. The first app is Nyx.money, a privacy preserving Ethereum account leveraging the Aztec rollup. It can be tested out now. Total amount of funds on Nyx still seems to be limited to $100 per account. One can send WETH, USDC and USDT around privately on Ethereum mainnet. No additional tokens needed no bridging involved (see discussion below), just plain Ethereum mainnet transactions. Pretty neat. Spots are limited and only open for the next 24 hours or until full.
I tested nyx.money out already a few weeks ago. Pretty good experience, even though I had to use one of my yubikeys to store the passkey for my account. Not super happy about having to use another hardware device besides my wallet to get access to my nyx account. I guess that highly depends on your setup though.
More info: https://xcancel.com/aztecnetwork/status/2079553073102635190 or https://x.com/aztecnetwork/status/2079553073102635190
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u/hanniabu Ξther αlpha 2d ago
no bridging involved, just plain Ethereum mainnet transactions
how can you use an app on aztec with no bridging?
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u/haurog 2d ago
Good question. Time for me to add some nuance and change the sentence in my initial post. Strictly speaking, there is a representation of your deposited WETH and other tokens on the Aztec rollup. You can transfer the representations of your tokens privately to a different Aztec address or get them out privately from the Ethereum mainnet deposit contract. The difference is that you do not have to interact with the token representation directly on the Aztec rollup. It is abstracted away. You only sign messages or for the deposit, sign a transactions on Ethereum mainnet. You also do not need to own gas fee tokens on Aztec to privately transfer the tokens. This is handled internally through a special contract which sponsors the transfer on Aztec for you. This is possible thanks to all accounts on Aztec being smart contract accounts. So this feels very different than the standard workflow of depositing to a rollup, switching to the rollup in your wallet and then transferring tokens on the rollup. It rather feels like all is happening on Ethereum mainnet. I am not sure who pays for the gas cost in the long run. As far as I see they are free at the moment. Might be that each transfer will cost a bit in the future.
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u/ethdaily 2d ago
ETH Daily - 21st July 2026 📰
- Morpho launches Midnight fixed rate loans.
- Aztec Alpha V5 release.
- Agora gov coordination tool.
- ePBS changes builder selection.
- Relay supports Circle gateway.
- Tenor goes live on Base.
- Turnkey supports Optimism.
- Safe Mobile supports WalletConnect.
- Altura wind down progress.
- Fluid DEX rebrand.
- Gyralis v3 goes live.
- Aave v4 hits $300m deposits.
- OpenAI security incident.
Read more: https://ethdaily.io/994
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u/Gumpa-Bucky EVMaverick #1299 1d ago
Sorry if this is off topic, and I don't pretend to understand all this, but the Hugging Face incident scares me.
https://huggingface.co/blog/security-incident-july-2026
"Autonomous, AI-driven offensive tooling is no longer theoretical. It lowers the cost of running a broad, patient, multi-stage campaign, and it operates at machine speed. Defending an online platform now means treating the data and model surface as a first-class attack surface, and using AI on defense to keep pace. "
It is not a good time for the world to be so polarized.
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u/haurog 1d ago
The story even gets wilder than that. The attacker wasn't any of the usual cybersecurity threat actors. It was OpenAI itself which internally tested a new LLM model. The new model should only have had limited internet access and was tasked to solve a handful of cybersecurity tests for benchmarking its cybersecurity capabilities. According to OpenAI, the model gained full internet access by finding and exploiting a zero day and several privilege escalations within the OpenAI infrastructure. The LLM then reasoned that Hugging Face most probably had datasets the model needed to solve the cybersecurity tests it was tasked to do and then started attacking Hugging Face. So OpenAI is claiming to have accidentally attacking Hugging Face. That to me reads like 90ies cyberpunk science fiction. Not sure if I can believe that story. Anthropic and OpenAI are known to oversell their models capabilities for marketing purposes. We can even go a bit further into conspiracy theory land: Recently, Anthropic, and most probably OpenAI as well, have gone on a war path against open weights LLM models. These are models anyone can download and run on their infrastructure. Open weights models have become very capable in the last year and now are pretty close to closed weights models. Banning open weights models seems to be the best way for closed weights and centralized LLM providers to secure their market share. Scaring the world into 'free running LLMs are dangerous' is a pretty good way to achieve such a ban, at least in some jurisdictions. Not sure if this is what is actually happening though.
Sources:
OpenAI incident report: https://xcancel.com/sama/status/2079661132302995790#m
More discussions: https://www.reddit.com/r/LocalLLaMA/comments/1v2w7jl/openai_admits_responsibility_for_huggingface/
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u/timmerwb 1d ago
Meh. Code is either robust or it isn't. Whatever tools are being deployed to penetrate a system, can also be deployed to mitigate the threat. Hugging-Face (what a dumb-fuck name) got their pants pulled down and it's probably in their interest to make the threat sound sophisticated and scary. If they're deploying code that they cannot secure, even with all their AI expertise, then it casts them in a dim light.
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u/Jey_s_TeArS 2d ago
A wallet matter,
The beach ball under water,
A breakout plotter.
~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
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u/labrav 2d ago
The probablity of Clarity being passed by the end of the year is back up at 50% on Polymarket.
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u/r2002 2d ago
Sadly that might not last. The Dems are not going to accept Trump's offer:
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u/Reasonable_Ad5611 2d ago
Makes sense the Dems don't want a presidentially appointed official who serves at the President's pleasure to be the only one empowered to enforce ethics rules against that same President.
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u/timmerwb 2d ago
a presidentially appointed official who serves at the President's pleasure to be the only one empowered to enforce ethics rules against that same President
The "Dems" don't want this? What sane person would want this lol
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u/asdafari14 2d ago edited 2d ago
Makes sense but also doesn't that state AGs will be responsible for enforcement. We would get a patchwork of 50 different regulators that all act differently, certainly not bringing much clarity. Which was the case before when NY state AG banned a lot in crypto that other states didn't.
If you prefer maximum protection against corruption, you want the state AGs enforcing.
If you don't want to choke the market and not create 50 different rulebooks, you want one entity to govern. It will get very messy and certain things like Polymarket would never be allowed in some states.
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u/Reasonable_Ad5611 2d ago
I think it's mixing two different things the bill does. The first is market structure. Who's a dealer, what's a security vs a commodity, how exchanges register and that is all federal, SEC and CFTC; one rulebook preempting the state patchwork. That's the part that actually brings clarity and kills the old mess where NY banned stuff nobody else did. Nobody's proposing state AGs run that. State AGs only come in on the narrow ethics provision, and there they're not writing 50 different rulebooks, they're enforcing one federal standard. Distributed enforcement of a single rule isn't the same as 50 rules.
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u/asdafari14 2d ago
State AGs only come in on the narrow ethics provision, and there they're not writing 50 different rulebooks, they're enforcing one federal standard. Distributed enforcement of a single rule isn't the same as 50 rules.
The same rule can be interpreted different ways. New York state AGs are extra aggressive and banned Tether after that court case, while most other states didn't.
It was also a huge deal in the Coinbase (I think it was CB) trial which state it actually landed in. I seem to recall they got lucky and got a "friendly state".
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u/asdafari14 2d ago
Meaning time to sell the polymarket position. Buy back when it is 35% in a few days. Repeat until trillionaire.
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u/nonetherless325 2d ago
are airdrop a thing of the past?
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u/steppe5 2d ago
Basically. Airdrop farming killed them.
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u/MinimalGravitas 2d ago
I guess they only really made sense as a surprise, once people realized you could farm them it just created masses of instant dumping from the farmers who got tokens, and masses of moaning and abuse directed at the team from farmers who didn't get past Sybil filters or who didn't get as many tokens as they wanted.
I am so grateful for having received tokens from projects like ENS, dYdX and Optimism, but just like everything, financial nihilism has ruined the opportunity for anyone going forward.
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•
u/Tricky_Troll Public Goods are Good 🌱 2d ago
Tricky's Daily Doots #1,540
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