vzlot

[Hermians @TheHermians]

Transmission Found

https://t.co/iHjdclANVm

[Michael Bentley @euler_mab]

The fallout from the Kelp rsETH exploit is going to be messy and could potentially be quite a bit more severe than some people are making out right now.

It seems rsETH on mainnet is technically still backed, but, there's no liquidity to sell rsETH, and with rsETH contracts paused, there’s currently no usable redemption path either.

In the unlikely case they socialised the loss across all rsETH holders, it would be worth something like 81.25% (1 - $300m/$1.6b) of its original value.

I don't think they will do that though. It would likely push a number of large positions on Aave towards undercollateralisation and risk creating bad debt. That alone would be enough to trigger a long and painful lawsuit.

So realistically rsETH holders on L2s are likely going to swallow the loss. Who are they? Why did they have rsETH on L2s in the first place? Could be other DAOs or funds etc who've taken a huge hit. That alone could have consequences we won't know about for some time.

Impacted individuals on L2s will likely consider their own legal action to force socialisation, potentially prolonging the delay before redemptions are opened.

Either way, once redemptions are eventually opened, it's unlikely any lending protocols would re-allow collateralisation, so there will be need to be a massive unwind of huge volume of rsETH/ETH looping trades.

All those looping trades are currently massively negative ROE. Aave ETH utilisation is currently at 100% with ETH borrow rate at 8.71%. Since staked ETH yield is around 2.5%, the ROE for any LST or LRT borrow or looped borrow is anywhere between -6.21% and around -90%, depending how degen people are. So we could see an unwind of lots of LST loops aside from just rsETH/ETH ones.

The normal path to unwind a loop is to swap collateral and repay, but this is unlikely to be possible for such a large amount of unwinds at once, and certainly won't be feasible for rsETH unless someone puts up significant liquidity for it.

When the swap and repay path fails, you normally have to withdraw as much collateral as you can, manually redeem, repay some debt, withdraw more collateral, and so on.

Here's the kicker. If rsETH is no longer collateral and no longer has borrowing power, this makes it much more difficult for people to manually unwind as well.

If people get stuck for longer periods paying huge negative ROE for too long, and there’s no liquidity to liquidate them, their equity gets eroded. Once debt exceeds recoverable collateral value, bad debt appears, and can keep worsening as interest accrues and the position remains unresolved.

[Saturn Foundation @saturn_credit]

Saturn reached $40M TVL on day one.

Gravity Points Season 1 is now live.

Full details below.

[Treasury Secretary Scott Bessent @SecScottBessent]

Congress has spent the better part of half a decade trying to pass a framework to onshore the future of finance.

It is time for @BankingGOP to hold a markup and send the CLARITY Act to President Trump’s desk.

Senate time is precious, and now is the time to act.

[The Ethereum Economic Zone @etheconomiczone]

https://t.co/T1730uZRFF

[Paradex @paradex]

get ready for $DIME szn

[USD.AI @USDai_Official]

The ticker is $CHIP.

It sets the interest rate of artificial intelligence.

Today we're announcing the https://t.co/3G1FcUsLPy Foundation and its governance token, built on over $7.7 billion in trading volume and real revenue from GPU-backed lending.

Here's how we got here...

[Jumper — Private Swaps are live @jumperapp]

Jumper Earn and Portfolio are live.

You can now move, deploy, and manage capital within Jumper, your smart money app.

Jump Further: https://t.co/GFtm8YDGFg

[vzlot @VZlot]

Introducing the Open Gas Initiative by ETHGas — a path to a frictionless onchain experience.

@arbitrum @base @Uniswap it's your time to step up and sponsor gas for users.⚡

Get started here: https://t.co/nUbTnyS9nz
https://t.co/KnC7BVOMxe

[ETHGAS @ETHGasOfficial]

Introducing the Open Gas Initiative - a way for protocols to subsidize gas for users, zero-code, for a seamless, frictionless onchain experience.

With OG cohort: @eigencloud, @ether_fi, @pendle_fi, @Velvet_Capital.

👇

[vzlot @VZlot]

Discovered my Gas ID via ETHGas - turning my gas spend into rewards 🫘

As a Hero Jack, I've spent 1.6281 ETH on gas but earned 1000 Beans back.

Get your Gas ID and Beans here: https://t.co/9NHU94Iqc7

[vitalik.eth @VitalikButerin]

Welcome to 2026! Milady is back.

Ethereum did a lot in 2025: gas limits increased, blob count increased, node software quality improved, zkEVMs blasted through their performance milestones, and with zkEVMs and PeerDAS ethereum made its largest step toward being a fundamentally new and more powerful kind of blockchain (more on this later)

But we have a challenge: Ethereum needs to do more to meet its own stated goals. Not the quest of "winning the next meta" regardless of whether it's tokenized dollars or political memecoins, not arbitrarily convincing people to help us fill up blockspace to make ETH ultrasound again, but the mission:

To build the world computer that serves as a central infrastructure piece of a more free and open internet.

We're building decentralized applications. Applications that run without fraud, censorship or third-party interference. Applications that pass the walkaway test: they keep running even if the original developers disappear. Applications where if you're a user, you don't even notice if Cloudflare goes down - or even if all of Cloudflare gets hacked by North Korea. Applications whose stability transcends the rise and fall of companies, ideologies and political parties. And applications that protect your privacy. All this - for finance, and also for identity, governance and whatever other civilizational infrastructure people want to build.

These properties sound radical, but we must remember that a generation ago any wallet, kitchen appliance, book or car would fulfill every single one of them. Today, all of the above are by default becoming subscription services, consigning you to permanent dependence on some centralized overlord.

Ethereum is the rebellion against this.

To achieve this, it needs to be (i) usable, and usable at scale, and (ii) actually decentralized. This needs to happen at both (a) the blockchain layer, including the software we use to run and talk to the blockchain, and (b) the application layer. All of these pieces must be improved - they are already being improved, but they must be improved more.

Fortunately, we have powerful tools on our side - but we need to apply them, and we will.

Wishing everyone an exciting 2026.

Milady.

[ETHGAS @ETHGasOfficial]

A holiday reminder: Ethereum doesn’t have to be complicated.

Thanks to the builders, validators, and users pushing us closer to a gasless future.

Merry Christmas 🎄

[vzlot @VZlot]

@not_zama_intern @zama Done

[FHE intern (Privacy era) @not_zama_intern]

I have 5 Zama OG NFT to give away.

To enter:
1️⃣ Follow @zama.
2️⃣ Like & retweet the announcement quoted.
3️⃣ 📝Comment this post with "Done" to be eligible.

(Announcing the winner tomorrow, December 24, at 1 PM CET, in this thread.).

[Base @base]

Drop 01 - Base Watch

Limited run of 1500. Time to create.™

[Polymarket @Polymarket]

Against all odds.

Polymarket’s U.S app is now being rolled out to those on the waitlist.

We’re launching with sports — followed by markets on everything.

[Ethereum @ethereum]

The Fusaka upgrade is today.

Ethereum is securely scaling.

[vzlot @VZlot]

@fleek Is the project shutting down? That’s very sad (not really)

[vzlot @VZlot]

@monad bridge from monad with @jumperapp

[Shayne Coplan 🦅 @shayne_coplan]

Polymarket 🤝 @ufc @TKOGrp

The UFC has chosen to partner with Polymarket as its Exclusive and Official Prediction Market.

The UFC will be integrating a Polymarket Scoreboard into the fights that will show the realtime % likelihood of who will win.

When I watch UFC, I love looking at the Polymarket odds to gauge who's winning. Now, hundreds of millions of others will be introduced to the power of Polymarket too.

Humbled to ring the @NYSE bell this morning with @danawhite, @AriEmanuel, Jeff Sprecher, @lynnmartin, Mark Shapiro, and @MatthewModabber.

Dream come true. More to come.