Categorizing the modular rollup landscape

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With 66 L2s and 18 L3s currently listed, and 82 additional rollups classified as upcoming, it becomes increasingly difficult to keep track of all these chains and their differences.

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L2BEAT has long been the go-to source for an overview, TVL comparisons, and detailed risk analysis. Their newly introduced badges further categorize the rollups.

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At a high level, they remind us of the attributes differentiating these scaling solutions (e.g., data availability, family/stack, VM). These tags will expand in the future as L2s become even more modular (e.g., shared sequencers, shared liquidity, alternative gas tokens, etc.).

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Understanding the effects of EIP-7251 “maxEB”

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Scheduled as part of the next Ethereum hard fork, EIP-7251 is an important change for Etherum stakers, enabling validators to have larger effective balances while maintaining the 32 ETH lower bound. It allows for auto-compounding of rewards but requires manual reward skimming, incurring gas costs. While slashing costs will significantly lower in the update, the risks for consolidated validators must be carefully evaluated. Rewards, queue capacity and infrastructure needs will not be affected either way.

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While the Pectra fork is unlikely to arrive before Q1 2025, Blockdaemon is already preparing to support the new functionalities and is happy to answer any questions you may have!

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Outperforming staking rate benchmarks

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The Coindesk Composite Ether Staking Rate (CESR) is one of the several indexes quantifying daily staking reward rates on Ethereum.

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This index is valuable for institutions to benchmark their funds’ performance against the network average. While recently launched ETH ETFs in the US currently do not contain staked Ether, other investment vehicles around the world already compare themselves against such indexes.

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Blockdaemon often delivers a staking performance ~10-35 bips above these benchmarks. To learn more how this can help your fund, contact us today!

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Recap of high-caliber EthCC conference in Brussels

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EthCC took place in Brussels this year, leaving Paris for the first time due to the Summer Olympics. Some logistical troubles, such as the airport, did not curtail the great content, which can be rewatched here.

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As usual, there were a plethora of side events, with the 3-day Modular Summit potentially being the most prominent, where Vitalik Buterin contrasted “Ethereum as a Platform of Platform for Dapps” in 2015 vs. 2024 at the Metagame.day. 

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Watch panel recording of Gaetan Thabot, Blockdaemon Head of Protocol & Foundation Partnerships, discussing the "Evolving Web3 Infrastructure for Mass Adoption" at EthScale @ EthCC 2024, alongside Absinthe Labs, Eigenlayer, Pyth, and Infinity Exchange

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Blockdaemon Resources

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• Blog: Ethereum Staking with Blockdaemon
• Staking API Docs: Integration & Reporting
• Institutional Wallet™ Adds Cold ETH Staking
• Institutional Liquid Staking with BD & Liquid Collective

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Previous Ethereum Newsletters 

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• July 2024 - Trade-offs in the Rollup space 
• June 2024 - What The ETH ETF Approval Means For Staking
• May 2024 - Why Stake $ETH While Rewards Trend Down?

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