Hello, I'm Hubert. I'm from L2B. We are an analytics platform for Ethereum L2s, but our research and our uh work can be pretty much used for any other L1 and L2 ecosystem out there. If you want to do it, I highly encourage it. Uh so since our inception, we are always getting a lot of messages uh from different people why TVL on L2B is different than TVL on D5 lama for different chains, right?
So for example our bit room base or zk6 sometimes we were showing that there is like seven 8 billion dollars of value in those chains but the lama was showing only two and three. So the spread was pretty huge hence the confusion. So now I I hope that I can just send a link to this presentation to the recording instead of just writing the answer all the time. Uh yeah, so the whole story uh we started with tracking value locked uh in canonical bridges of in the smart contracts uh of the of the L2s similar to defy lama tracking value locked in defy smart contracts. But we soon had to kind of make our scopes a lot more broad uh for other types of assets that are not necessarily locked, you could say.
uh more on that in a in a second. But so you can very easily understand it. If you want to let's say invest in DeFi on base, right? You transfer 100 USDC from Ethereum there in some way using some kind of breach, right? You put 50 uh% of it to some liquidity provision protocol or whatever and leave 50 uh on your wallet to wait for another hot meme coin to make huge gains.
uh L2 bit will show you uh $100 and D5 Lama will track only 50. Uh and theoretical scenario number two uh you loop the position by borrowing more assets. So so if you put $100 in E to some lending protocol on L2 and borrow 50 USDC against it and then you put this 50 USDC to the same lending protocol, right? So what probably most of you are doing on a for example uh L2 bit will show you $100 but defy lama will show you $150. So in theory you can just loop it and kind of game the TVL that way.
Of course it's in only in theory because L2 bit number is already higher by definition uh because we are tracking those uh all of the assets secured by this particular chain. But it's easier to explain this way. So you could ask why does it even matter, right? Why did we rename that? Why why why are we tracking it differently and why did we decide to actually rename it right to total value secured at some point?
So by having to track more assets, we actually developed a whole new framework for them. Uh and we split them across three different types. So we have canonically bridge assets, natively minted ones and externally bridge ones. Canonical ones are the the tokens that are Ethereum native. So for example, if or or bitcoin uh so you trust the ethereum in that way that they are minted on ethereum.
Um you have native tokens so the ones that are minted on on the L2 itself. So that's for example all of the governant tokens maybe except started and some others like AR or OP and you have all the others that are either minted on other L1 for example like warhole Solana or omni chain tokens like layer zero USDT. So the tokens that can be minted on many different chains at the same time. Yeah. So again why does it matter?
Because all of those asset types have different trust assumptions. So for example uh canonical ones as I said you trust Ethereum right Ethereum is this most decentralized ledger with a lot of nodes across every single continent right so in theory it will never go down right so if it's if the L2 is set up correctly you will be always uh able to permissionlessly withdraw your money so your couple of million dollars in USDC or whatever from this chain uh for native ones you trust del itself and unfortunately most of the twos right now are a single sequencer. So like uh and single operator. So the chance for something going down and you being not being able to do anything is pretty high. And for the external ones you need to trust this third party chain or provider.
So you need to trust layer zero or warhole multisync at the end of the day. Yeah. So all of this is backed by our industry standard setting frameworks and research. uh because now everybody wants to build an L2 bit for something, L2 bit for stable coins, L2 bit for anything else. But it's a huge rabbit hole and we can't go through all of it in in 10 minutes unfortunately.
Uh but I prepared a pretty good example for you to check it out. Uh and it's uh two different L2 shutdowns that recently happened dydx and real. So in case of DYDX, you were probably using it for per trading. It was dominating before moving uh to Cosmos for V4. They were using Starkware tech called Starkex and they were stage one rollup.
Uh and they shut down, right? They are not producing blocks anymore. But thanks to this additional stage one trust assumptions, you can still withdraw your money using only smart contracts on Ethereum, right? uh you need to be a bit technical to actually do it. But fortunately, we built a front end for that called Dydx Explorer.
So even if you are not technical, you can just go there and with your withdraw your money by clicking couple buttons. So if you were trading $1 million there, then you went into coma or whatever. If you are waking up today, you can still withdraw it. Then we have real. So they halted producing the blocks like this week or last or last week.
And the problem is they didn't have any proof system. They didn't uh have any good DA uh because they were using a duck. So like a set of couple random computers somewhere in the basement. And now there is $500,000 in st and USDC locked there. And if those are your assets, I feel sorry for you because they will be staying there probably forever now because the team moved on and they don't seem that they that they care unfortunately.
Yeah. So you need to be aware of all of those risks uh even more now because soon we will have interoperability between uh all of the chains and you know everybody wants to build interop infra right now. uh so there will be like a lot of different trust assumptions out there as well and we have account abstraction coming so even like depending the trust issues even even further. So what I can tell you as a conclusion next time when you will be transacting on new hotel too farming the airdrop or new cool meme coins better check out to bit first so you will not end up with your whole uh money or your client's money most importantly stuck there forever and if you want to learn more catch me after my talk and yeah I can tell you more about stages and risk our two leading frameworks Yeah, and that's all. Thank you very much.
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Automatic transcript — names and jargon may be misspelled.