What Happened With Cap's Stabledrop?

Summary

Cap founders explain how their stable drop promise shrank from $11M to $4M due to market conditions, triggering community backlash. The panel discusses Ethereum Foundation's latest spinout EthSystems, Jesse Pollak handing Base's app to Cobie, Robinhood Chain's explosive memecoin activity and tiny Ethereum settlement fees, and a series of DeFi governance and private key hacks. Market implications include doubts about points programs, debates over L2 value capture for ETH, and ongoing security failures despite known solutions.

• Cap's Ben and Weso detail the stable drop controversy: a promised $11M stablecoin reward became $4M after markets tanked, making farmers whole but unhappy.
• EthSystems spinout from EF is seen as bullish for Ethereum by giving builders more agency and faster execution.
• Kain argues Ethereum massively undercharges L2s for settlement and should raise fees to capture more value or force L2s to become real L1s.
• Robinhood Chain launched with huge memecoin volume but faces sustainability questions and criticism over low Ethereum fee payments.
• A governance attack hit Barnbridge, exploiting a forgotten DAO and old infinite approvals to drain ~$800k from dormant wallets.
• Ostium lost ~$23M to a private key compromise, with attackers operating non-stop for hours, likely North Korean.
• The episode emphasizes repeated security failures from operational mistakes and the difficulty of building in DeFi.