
Nikolai Golub
1.6K posts

Nikolai Golub
@citizen_stig
Software Developer, DeFi Curious, Ocasional rustacean, cable manager.

















Announcing Relay's $17M Series B, led by @archetypevc & @USV. And we're launching the Relay Chain — purpose-built infrastructure for instant crosschain settlement ⛓️ Any asset, any chain, instantly.

There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts: * L2s' progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected * L1 itself is scaling, fees are very low, and gaslimits are projected to increase greatly in 2026 Both of these facts, for their own separate reasons, mean that the original vision of L2s and their role in Ethereum no longer makes sense, and we need a new path. First, let us recap the original vision. Ethereum needs to scale. The definition of "Ethereum scaling" is the existence of large quantities of block space that is backed by the full faith and credit of Ethereum - that is, block space where, if you do things (including with ETH) inside that block space, your activities are guaranteed to be valid, uncensored, unreverted, untouched, as long as Ethereum itself functions. If you create a 10000 TPS EVM where its connection to L1 is mediated by a multisig bridge, then you are not scaling Ethereum. This vision no longer makes sense. L1 does not need L2s to be "branded shards", because L1 is itself scaling. And L2s are not able or willing to satisfy the properties that a true "branded shard" would require. I've even seen at least one explicitly saying that they may never want to go beyond stage 1, not just for technical reasons around ZK-EVM safety, but also because their customers' regulatory needs require them to have ultimate control. This may be doing the right thing for your customers. But it should be obvious that if you are doing this, then you are not "scaling Ethereum" in the sense meant by the rollup-centric roadmap. But that's fine! it's fine because Ethereum itself is now scaling directly on L1, with large planned increases to its gas limit this year and the years ahead. We should stop thinking about L2s as literally being "branded shards" of Ethereum, with the social status and responsibilities that this entails. Instead, we can think of L2s as being a full spectrum, which includes both chains backed by the full faith and credit of Ethereum with various unique properties (eg. not just EVM), as well as a whole array of options at different levels of connection to Ethereum, that each person (or bot) is free to care about or not care about depending on their needs. What would I do today if I were an L2? * Identify a value add other than "scaling". Examples: (i) non-EVM specialized features/VMs around privacy, (ii) efficiency specialized around a particular application, (iii) truly extreme levels of scaling that even a greatly expanded L1 will not do, (iv) a totally different design for non-financial applications, eg. social, identity, AI, (v) ultra-low-latency and other sequencing properties, (vi) maybe built-in oracles or decentralized dispute resolution or other "non-computationally-verifiable" features * Be stage 1 at the minimum (otherwise you really are just a separate L1 with a bridge, and you should just call yourself that) if you're doing things with ETH or other ethereum-issued assets * Support maximum interoperability with Ethereum, though this will differ for each one (eg. what if you're not EVM, or even not financial?) From Ethereum's side, over the past few months I've become more convinced of the value of the native rollup precompile, particuarly once we have enshrined ZK-EVM proofs that we need anyway to scale L1. This is a precompile that verifies a ZK-EVM proof, and it's "part of Ethereum", so (i) it auto-upgrades along with Ethereum, and (ii) if the precompile has a bug, Ethereum will hard-fork to fix the bug. The native rollup precompile would make full, security-council-free, EVM verification accessible. We should spend much more time working out how to design it in such a way that if your L2 is "EVM plus other stuff", then the native rollup precompile would verify the EVM, and you only have to bring your own prover for the "other stuff" (eg. Stylus). This might involve a canonical way of exposing a lookup table between contract call inputs and outputs, and letting you provide your own values to the lookup table (that you would prove separately). This would make it easy to have safe, strong, trustless interoperability with Ethereum. It also enables synchronous composability (see: ethresear.ch/t/combining-pr… and ethresear.ch/t/synchronous-… ). And from there, it's each L2's choice exactly what they want to build. Don't just "extend L1", figure out something new to add. This of course means that some will add things that are trust-dependent, or backdoored, or otherwise insecure; this is unavoidable in a permissionless ecosystem where developers have freedom. Our job should make to make it clear to users what guarantees they have, and to build up the strongest Ethereum that we can.









A Difficult Personal Decision I’ve made the personal decision to step away from trading on HyperLiquid. And I want to stress that word - personal (and difficult). I’m not asking anyone to follow me. I’m simply acting in alignment with where my values have moved. Most of you have watched my thinking evolve over time. That’s what we’re supposed to do as human beings: evolve, refine, shed old frameworks, and build better ones. And look - I know you’re not supposed to develop an emotional attachment to a protocol, but HyperLiquid was different for me. Jeff built something the market desperately needed. He dragged structural fairness into the spotlight and paved the way for a better conversation. He and the HL team deserve their chapter in crypto’s history books. I personally hope they continue to write new ones. But if you’ve followed me for any length of time, you also know I’m an idealist - maybe to a fault - and I can’t turn off the portion of my brain that not only can see things as they currently are but continues to believe in what they should be. 10/10 ripped the mask off the industry for the new folks. Or for those who’ve been around long enough, it simply reminded us how fragile and easily manipulated this ecosystem still is. The fact that one centralized exchange can trigger a global liquidation cascade and force temporary price dislocations across every protocol? That’s not a “black swan.” That’s a design flaw. Here’s a short recap: Binance relied on its own oracle - which depegged a stablecoin. That started a smaller, but manageable, liquidation chain. The real chaos began when their API mysteriously went offline. Market makers, who operate largely delta-neutral, suddenly couldn’t hedge on their primary venue. With hedging impossible, they pulled quotes across CEXs and DEXs. With no liquidity present, price falls off a cliff. And across the industry? Victory laps. “Zero bad debt!” “Liquidations processed flawlessly!” Great. The protocol didn’t die. But users did. Protecting the protocol IS important - obviously. But it is not the same thing as protecting traders. If we want broader adoption, if we want legitimacy, if we want crypto to grow without getting handcuffed by regulators, we have to start building real consumer protection into our systems. TradFi has circuit breakers, obligations for MMs, structural guardrails. Crypto has...hope. And an instruction manual that says, “Good luck out there!” So why am I leaving HyperLiquid? Because I choose to back teams who are actively trying to solve these design flaws, not merely observe them. I’ve spoken with Jeff and another member of the Core 11. They don’t appear to see this as part of the roadmap right now. That’s their choice and I respect it. And to be clear - nobody has a perfect fix. There is no silver bullet. What matters to me is who’s walking toward solutions rather than ignoring the problem. We lost people on 10/10. Real lives were ended. Real families were destroyed. Over...a design flaw allowing one entity to control the world? Crypto doesn’t get to just sweep that under the rug. So the question becomes: Who’s actually building protections that might prevent the next Binance-induced disaster? On Solana, I’ve only found one. Drift’s liquidation protection isn’t magic. It’s not flawless. But it exists - and more importantly, it worked. It checks: “Is the oracle price diverging by more than 50% from the 5-minute TWAP?” If yes it simply puts a temporary halt on liquidations. That single line of logic saved a lot of people. Scam wicks get filtered. The insurance fund catches the edge cases. It’s not some grand philosophical overhaul - it’s simply a meaningful step toward sanity. I’m not as brilliant as Jeff. I don’t pretend to know the best way to solve this at scale. But I am a customer - and customers vote with their dollars. The industry keeps repeating, “Protecting the protocol is protecting the trader.” But that’s not the full picture. A car isn’t complete without a driver. Both are equally important to the beautiful symbiosis that exists. This is a heartbreaking post to write. This isn’t a Drift advertisement. It feels more like a gut-wrenching breakup with a first love - not because the love disappeared, but because you finally recognize that you’re growing in different directions. HL will always be a part of my story. It’ll stay on my shortlist whenever people ask where to trade. But it’s time for me to move forward - toward my values, toward my ideals - and to say to Jeff and the team, with real appreciation: we’ll always have Paris. 🫡 From the depths — The White Whale 🐋






