Is Metis still an L2 play for the next cycle?
Thread637 words
Argues Metis has strong tech innovation and low valuation, but off-chain data via Memolabs, an unfinished fraud-proof system, no escape hatch and a stagnating DeFi ecosystem leave it behind other L2s. Concludes it is not currently a top L2 pick.
Key claims
Metis stores data off-chain via a storage layer rather than a DA layer
Fraud proof system still under development and no escape hatch per L2BEAT
0/ was recently asked if $METIS is still a play for the next cycle
summarizing my thoughts below 👇
🧵 (0/20)
1/ if you're not familiar with @MetisDAO, check my thread here 🔍
x.com/expctchaos/status/1537857630357446658
2/ imo, @MetisDAO has quite a good track record in terms of innovation on the tech side of things (e.g. decentralizing sequencer, finding a solution to overcome the DA bottleneck, etc.)
3/ however, they've been getting quite some FUD for posting data off-chain, as it is considerably less secure than #Ethereum
4/ but from a UX perspective the cheap fees are a USP, even compared to other optimistic L2s like $OP & $ARB (at least pre-EIP4844, but that will take a while to mainnet)
they made the trade-off consciously (which can be a good choice, depending on the usecases you're going for)
5/ however, they use a decentralized storage layer (memolabs), which as the name suggests, is a storage rather than data availability focused solution
6/ hence, end-user verifiability isn't great (you have to download full data to be sure data is available)
7/ Modular DA layers like @CelestiaOrg or @AvailProject that support data availability sampling light nodes are superior in that regard
x.com/expctchaos/status/1661069523024490496
8/ these DA layers will play a key role in scaling DA for rollups across the board imo, while also improving on decentralization/security (through L1 with own validator set or restaking)
x.com/expctchaos/status/1663213648121307141
9/ additionally, the optimistic fraud proof system is still under development, which means, in theory, the system permits invalid state roots
also, there is currently no escape hatch mechanism, leading to funds being frozen in case of a sequencer failure
source: @l2beat
10/ but I expect @MetisDAO to evolve and optimize.
Maybe they'll adopt shared DA or shared sequencer tech?
and in some ways they already are, for example by opting for an innovative hybrid rollup approach 👀
x.com/HouseofChimera/status/1689659112173326337
11/ but let's get back to the initial question
the comparably low valuation and the upside potential in an #L2 mania, coupled with a good tech stack could make $METIS an interesting play
12/ even more so as shared sequencers, specialized DA layers, zk-based bridging tech & GMPs enable more seamless cross-chain composability drive overall L2 growth...
13/ ...as liquidity flows across ecosystems more freely and #DeFi opportunities can more easily be accessed across different networks (which is not a driver exclusive to $METIS though)
14/ however, the DeFi ecosystem has been suffering a lot as other L2s have been sucking in lots of liquidity
15/ it also looks like ecosystem growth has slowed down with other L2s taking the spotlight and displaying much higher numbers of active dApps
16/ so, should we write $METIS off?
imo no (still trust in @VitalikButerin's mom kek)
but the competition in the L2 wars will be fierce and currently I do see other ecosystems have an edge over @MetisDAO
17/ however, I'm also convinced we will need a couple of general-purpose execution layers in the modular infrastructure stack of the future
hence, there will be a couple of ecosystems that succeed
18/ & if they continue to innovate & build out their ecosystem, @MetisDAO might be among them
19/ but something needs to happen in order to revive the $METIS ecosystem.
Especially with airdrop incentives on new L1s/L2s and the size that ecosystems like $OP or $ARB have already reached, it won't be easy to compete
20/ looking at the overall ecosystem, I think there are a few L2s that stand out and @MetisDAO is currently not one of these
so while it was one of my plays last cycle, it currently isn't
want to know my L2 plays? check out my thread below 👇
x.com/expctchaos/status/1684269204151881728
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