The Weekly gm - June 5

Run to your goals this week, SD!

1. This Wednesday: Run @ LA Tech Week
Join us in trekking north, SD! This Wednesday, ETH SD and Run Tech Club are teaming up to host Run A.I., an exciting LA Tech Week satellite event with a 2.5 mile jog and a following panel discussion.

Sign up on Luma and we’ll see you there: https://lu.ma/la-techweek-run-ai

2. FOAM Trust Zone Initialization Recap and YouTube Premier
It was a blast to have the FOAM team out in SD and the community come out to Edge for our Trust Zone Initialization last Thursday. We got some awesome FOAM merch, looked into the capabilities of the Proof of Location Network, and brainstormed some future initiatives on how the community can dynamically activate the Trust Zone going forward.

Thanks to all of the online community who tuned in via Twitch. Be sure to subscribe to the ETH SD YouTube to be notified about the video premier first.

3. Other LA Tech Week Events
We’ll be bouncing around to different LA Tech Week events this week. Send us a DM to let us know if there’s any you think we should be attending.

We’ll be stopping by the Bankless VC Brunch tomorrow.

See you there, fren?

1. LSDs
No, not Lysergic Acid Diethylamide (apply sparingly); LSDs are liquid staking derivatives. LSDs are financial instruments symbolizing ownership of a staked token in a decentralized finance (DeFi) protocol. This allows token holders to stake their assets while maintaining the ability to use these LSDs within other decentralized applications (DApps).

In the case of Ethereum, this was crucial since staked ETH was inaccessible on the beacon chain until the Shapella upgrade was implemented. Consequently, LSDs offered a crucial liquidity solution for stakers, while their ETH tokens secured the blockchain.

Following the successful execution of the Shapella upgrade, Ethereum allowed the long-awaited withdrawals. This enhanced the attractiveness of staking for Ethereum enthusiasts, which consequently boosted the prominence of LSD protocols. In fact, the total value locked (TVL) in LSD protocols now exceeds that of decentralized exchanges (DEXs), securing the leading spot at approximately $19.5 billion.

2. Circle USDC on Arbitrum
This Thursday, Circle is launching USDC natively on Arbitrum. This version will gradually replace the existing USDC liquidity that's bridged from Ethereum. The native USDC will always be fully backed and redeemable 1:1 for US dollars, it will facilitate institutional on/off-ramps via Circle and other partners, and it will soon receive support by #CCTP to eliminate bridge withdrawal delays. Prior to the launch of native USDC on June 8th, the Ethereum-bridged version of USDC will be renamed "USDC.e" on block explorers, and ecosystem apps will be encouraged to make this change in their user interfaces and documentation.

Read the full announcement here: https://arbitrumfoundation.medium.com/usdc-to-come-natively-to-arbitrum-f751a30e3d83

3. Chainlink BUILD
Chainlink BUILD is an initiative by Chainlink Labs aimed at fostering the growth of both nascent and established Web3 projects. It does this by offering these projects improved access to Chainlink services and technical support.

Learn more and apply here: https://chain.link/economics/build-program

1. Hot off the Press: Binance and CEO CZ Sued by SEC
The U.S. Securities and Exchange Commission (SEC) is reportedly suing cryptocurrency exchange Binance and its CEO, Changpeng "CZ" Zhao, on allegations of violating federal securities laws, including operating an unlicensed stock exchange. This lawsuit would add to earlier allegations made in March by the U.S. Commodity Futures Trading Commission (CFTC) that Binance and Zhao unlawfully offered unregistered crypto derivatives products in the U.S. Both the SEC and Binance have yet to comment on the issue.

We’re following along for further developments.

2. Ethereans Fear Lido Centralization
The Ethereum ecosystem is facing a debate due to the high influence one of its staking pools, Lido Finance (LDO), has on the network. Lido holds 74% of all liquid staking derivatives (LSDs), pooling more than 7 million ETH worth approximately $13 billion, which some see as a threat to the decentralization of the chain. LSDs, tokens representing staked positions that earn rewards, are another concern, with fears that they could create "block space cartels" that amass outsized profits and have the potential to manipulate block timing and censorship.

Solo staking, an alternative to pooled staking, requires considerable technical knowledge and a significant amount of ETH, leading many to use platforms like Lido.

3. DCG CEO Requests Case Consolidation
Venture capital firm Digital Currency Group (DCG) and its CEO, Barry Silbert, have requested the consolidation of two class-action lawsuits related to alleged losses during a cryptocurrency market downturn. Both cases purportedly revolve around similar facts and legal issues. DCG and Silbert argue that combining the cases is necessary to avoid conflicting decisions and improve judicial efficiency. They are also seeking to transfer a case from New York to Connecticut to facilitate this process. The Connecticut lawsuit alleges that Silbert orchestrated a misleading transaction to hide a $1.1 billion downfall after Three Arrows Capital initiated liquidation proceedings.

Amid these legal challenges, DCG has decided to close its prime brokerage subsidiary, TradeBlock, due to an uncertain U.S. regulatory environment for cryptocurrencies and overall economic conditions.

We’ll keep you posted every Monday on what’s happening in the space. Follow @ETHSanDiego on Twitter or visit ethsd.org for info on events, educational content, and more!

See you next week,
@ChaseOnChain.eth & @gmchad.eth