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Ankit Chiplunkar Profile
Ankit Chiplunkar

@ankitchiplunkar

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Research @ prev. @coinbase , @airbus , supaero, @iitbombay

London, England
Joined May 2009
Don't wanna be here? Send us removal request.
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@ankitchiplunkar
Ankit Chiplunkar
5 months
Why Chain Abstraction?
@FrontierDotTech
Frontier Research
5 months
Discover the significance of Chain Abstraction in our latest presentation by our CEO, @thegostep and Head of Research, @ankitchiplunkar . Dive deeper and learn how it enhances blockchain technology to offer seamless user experiences and why it's essential for the future of Web3
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@ankitchiplunkar
Ankit Chiplunkar
7 months
Crypto users should not know which network they are interacting with, this philosophy is called Chain Abstraction (CA). Introducing the CAKE framework with @thegostep Chain Abstraction is a piece of CAKE!
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@ankitchiplunkar
Ankit Chiplunkar
1 year
1/ Optimistic relays are the inevitable future since they increase proposer profits and are cheaper and easier to maintain. Presenting a data-driven deep dive into optimistic relays. Written in collaboration with @mikeneuder of @ethereum
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@ankitchiplunkar
Ankit Chiplunkar
1 year
How are prices updated on-chain? Most of the volume on-chain happens on AMMs where prices are updated every block by trades. In parallel prices are updated every microsecond on off-chain venues.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
@LifeMathMoney This 12-year-old post on Reddit describes the process perfectly.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
In the last 3 days $ETH price fell by 20% this has been a wild time for liquidations. A total of $3M loans have been liquidated on-chain. 59% of those liquidations have happened on @dydxprotocol while 40% are from @compoundfinance Some interesting transactions 👇
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Learn Cairo by doing: Introducing full support for Cairo Lang on jupyter notebook. For the last few weeks @ArieBnhm and me have been working on improving Repl support (developed by @LiorGoldberg2 ) for Jupyter notebooks.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Recently researchers in the AMM space have been talking about Loss-Vs-Rebalancing (LVR) as a way to measure loss incurred by LPs. LVR measures loss to LPs due to arbitrage. But what does it mean let's find out using a simple example 👇🏽
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@ankitchiplunkar
Ankit Chiplunkar
4 years
1/4) Stablecoin market cap currently is $6.7B, let's take a look into how these coins are used 👇 In the last 12 months, $290B worth of stablecoins were moved onchain, growing by 8.2 times in 12 months, from $6.2B in Apr 2019 to $50.9B in Mar 2020. data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
5 years
1/5) In the last 3 days $ETH price fell by 18%. Time for another round of liquidations. A total of $5M loans have been liquidated on-chain. 40% of those liquidations have happened on DyDx while 59% were on Compound. data: @thetokenanalyst Some interesting transactions 👇
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Why should you split the block auction between the Top Of the Block (TOB) and the Rest Of the Block (ROB)? Data shows that the gas price in TOB (first 10%) is 2 orders of magnitude more than ROB.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Super excited about @artgobblers . Once the contracts are out will build a Multiplier Vault, where players can deposit their Gobblers and get Multiplier tokens in return. But before that sharing some intuitions about the game.
@artgobblers
Art Gobblers
2 years
For builder humans: Quote RT this tweet with code for an extension to our ecosystem. Your creation could involve Gobblers, Goo, novel games or protocols that integrate Gobbler assets, or anything else. Those who build the coolest stuff will get a spot on our mintlist.
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Introducing Jupyter notebook support for @CairoLang . Develop, debug and test Cairo contracts in your local enviornment. code:
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@ankitchiplunkar
Ankit Chiplunkar
4 years
Stablecoin balances on exchanges have doubled in the last 2 weeks (from $405M to $840M) 💵. Currently, $720M of USDT and $120M of USDC is sitting on exchanges, waiting for the right moment to buy crypto-assets. Data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
5 years
A look into ETH balances held by exchanges 👇 18.5M ETH (16.8% of total supply) is held by 10 exchanges. @HuobiGlobal holds 4.75M ETH @binance holds 2.78M ETH @bitfinex holds 2.58M ETH @krakenfx holds 2.5M ETH data and chart:
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@ankitchiplunkar
Ankit Chiplunkar
10 months
Happy Diwali! v1.10.09
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@ankitchiplunkar
Ankit Chiplunkar
1 year
v1.8.17
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@ankitchiplunkar
Ankit Chiplunkar
1 year
v1.8.17
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@ankitchiplunkar
Ankit Chiplunkar
1 year
v1.5.14
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@ankitchiplunkar
Ankit Chiplunkar
6 months
v2.2.2
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@ankitchiplunkar
Ankit Chiplunkar
7 months
v2.1.1
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@ankitchiplunkar
Ankit Chiplunkar
7 months
v2.1.1
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@ankitchiplunkar
Ankit Chiplunkar
10 months
Happy Diwali! v1.10.09
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@ankitchiplunkar
Ankit Chiplunkar
4 years
A look into $ETH miner rewards 👇 1/2) Fees paid to miners (ETH 26.1K) exceeded the uncle reward (ETH 20.4k) paid to miners in March 2020. i.e. the fees paid by the users are now greater than the cost paid by the network to maintain a 15sec blocktime. data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
4 years
Update the USDT + USDC stablecoin balances in exchanges has crossed $1B. It is a measure of how much money is sitting on the sidelines or placed in limit orders at exchanges, waiting for the perfect moment to buy. data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
4 years
Stablecoin balances on exchanges have doubled in the last 2 weeks (from $405M to $840M) 💵. Currently, $720M of USDT and $120M of USDC is sitting on exchanges, waiting for the right moment to buy crypto-assets. Data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
3 years
The cairo jupyter kernel is now hosted via Binder: Learn, iterate and fail fast new ideas on cairo, without setting up locally.
@ankitchiplunkar
Ankit Chiplunkar
3 years
Learn Cairo by doing: Introducing full support for Cairo Lang on jupyter notebook. For the last few weeks @ArieBnhm and me have been working on improving Repl support (developed by @LiorGoldberg2 ) for Jupyter notebooks.
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@ankitchiplunkar
Ankit Chiplunkar
4 years
2/2) Since Jan 2019 the fees paid by smart contract transactions are greater than fees paid by basic $ETH transactions. In Mar 2020 alone, the fees paid by smart contract transactions (ETH 23.4K) was 8.6 times that of fees paid by basic Eth transactions (ETH 2.7k).
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@ankitchiplunkar
Ankit Chiplunkar
4 years
Yesterday #ETH prices dropped by 50%, it led to a significant difference in ETHUSD price between #CeFi and #DeFi For 3 straight hours, there was a 20% price difference between @coinbasepro and @makerdao oracle. data: @thetokenanalyst & @KaikoData
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@ankitchiplunkar
Ankit Chiplunkar
4 years
1/4) Bitcoin prices fell by 50% in the last 2 weeks, this is economically tough for miners. To cope with reduced revenue, miners switch off equipment to reduce costs, resulting in increased block times. The average daily block time has increased by 60% data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
1 year
This is also how traders front-run an on-chain transaction off-chain. Traders with signal of a massive on-chain transaction front-run the trade on Binance. CeFi-DeFi searchers arb and update the price top of the next block. The on-chain transaction now receives a worse price.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
Of the ~100k interactions with the WBTC #ERC20 smart-contract, 92.5% of them have come via other smart contracts (internal transactions). Showcases the money lego nature of #DeFi More details on the types of interactions here:
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@ankitchiplunkar
Ankit Chiplunkar
5 years
The number of interactions with the WBTC contract has been rising steadily. There have been ~18k interactions with the WBTC contract this month already.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Thread of threads. How are prices updated onchain?
@ankitchiplunkar
Ankit Chiplunkar
1 year
How are prices updated on-chain? Most of the volume on-chain happens on AMMs where prices are updated every block by trades. In parallel prices are updated every microsecond on off-chain venues.
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@ankitchiplunkar
Ankit Chiplunkar
9 months
Sentiment across CT
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@ankitchiplunkar
Ankit Chiplunkar
5 years
1. Introducing a python client to ease the interactions with erasure protocol and built during the online hackathon. @numerai
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@ankitchiplunkar
Ankit Chiplunkar
1 year
v1.5.14
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@ankitchiplunkar
Ankit Chiplunkar
2 years
v1.2.5
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Where is this 28.6Ξ coming from? From AMM LPs. They behave as sitting ducks and provide a price update bounty every 12 seconds to CeFi-DeFi searchers.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
v1.2.5
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@ankitchiplunkar
Ankit Chiplunkar
2 years
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@ankitchiplunkar
Ankit Chiplunkar
1 year
In the chart below we see the bids placed by builders. The bid value moves in sync with the price deviation. Searchers performed ~50 CeFi-DeFi arbs in this block across a variety of tokens and pools. The winning builder paid 28.6Ξ.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
Distribution of stable coin volume on Ethereum in 2020. Of the $24B on-chain value transfer by stable coins. USDT leads the pack with 70% volume, followed by USDC with 15% volume and DAI with 7.5% volume.
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@ankitchiplunkar
Ankit Chiplunkar
8 years
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@ankitchiplunkar
Ankit Chiplunkar
5 years
@RyanSAdams Already >10% of $eth is locked in smart contacts
@thetokenanalyst
TokenAnalyst
5 years
In honor of $ETH's 4th anniversary, we decided to look at how much $ETH is staked in smart contracts relative to the $ETH supply. Despite the recent surge of #DeFi , we find that $ETH staked in *all* SC's is actually down ~2.1M ETH compared to the same time in 2018
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Where some see a dark forest, we see a new Frontier!
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@thegostep
Stephane
1 year
Today, I am excited to share Frontier Research’s Manifesto: Infinite Games Where some see a dark forest, we see a new frontier
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@ankitchiplunkar
Ankit Chiplunkar
1 year
In Order Flow Auctions: Hiding information is a tax on the user (inefficient pricing of the order flow) Sharing information is a tax on the winner (the winning bid can be front-run) Balancing information is the 🗝️
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Atharv v0.0.1
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@ankitchiplunkar
Ankit Chiplunkar
1 year
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Self-custodying crypto is HARD but after the FTX blowup it's essential. Account Abstraction (AA) makes self custodying easy by enabling multiple options for key management and account recovery. Let's look into ERC-4337 which enables AA on EVM chains 👇🏼
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@ankitchiplunkar
Ankit Chiplunkar
7 months
Ideally, a user goes to a dApp, connects the wallet, signs the intent, and waits for settlement. The complexity of execution is abstracted away in the layers of CAKE. These are Application, Permission, Solving, and Settlement. Combining layers of this CAKE results in CA.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
1/N Introducing “Multiply Gobbler Vault” a vault which **multiplies** your Gobblers.
@artgobblers
Art Gobblers
2 years
For builder humans: Quote RT this tweet with code for an extension to our ecosystem. Your creation could involve Gobblers, Goo, novel games or protocols that integrate Gobbler assets, or anything else. Those who build the coolest stuff will get a spot on our mintlist.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
Of the ~622 WBTC in circulation more than 50% are held by #DeFi protocols
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@ankitchiplunkar
Ankit Chiplunkar
5 years
The number of interactions with the WBTC contract has been rising steadily. There have been ~18k interactions with the WBTC contract this month already.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Special thanks to @rajivpoc and @_danielmarzec for help with the charts.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Every 12s the on-chain prices become stale and if the deviation is significant arbers come in and capture value. Bringing the prices in sync. Let's look at the block where prices moved by 134bps
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@ankitchiplunkar
Ankit Chiplunkar
7 months
Special thanks to @NathanWorsley_ , @vaibhavchellani , @hal2001 , @ilblackdragon , @zmanian , @DrewVdW , @hxrts , @cwgoes , @arjunnchand , and several others for the feedback, pushback, comments, and review.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
V.0.6.17
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@ankitchiplunkar
Ankit Chiplunkar
2 years
V 0.3.14
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@ankitchiplunkar
Ankit Chiplunkar
4 years
Yesterday #BTC difficulty dropped by 15.95% to correct for the increased block times. As a consequence, the block times have dropped by 35% and returned to normal (15.17 mins to 9.75 mins).
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@ankitchiplunkar
Ankit Chiplunkar
4 years
1/4) Bitcoin prices fell by 50% in the last 2 weeks, this is economically tough for miners. To cope with reduced revenue, miners switch off equipment to reduce costs, resulting in increased block times. The average daily block time has increased by 60% data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Humbled by the opportunity. 🙏 @nkennethk @devinawalsh
@UniswapFND
Uniswap Foundation
2 years
Also in the category of Protocol Growth is a decentralized volatility oracle, build by @ankitchiplunkar It includes the dev of smart contracts to calculate & store token price volatility A new DeFi lego for devs, and a tool to create better hedging strategies for LPs
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@ankitchiplunkar
Ankit Chiplunkar
1 year
This analysis is 🔥
@soispoke
soispoke.eth
1 year
New post 🚨 Empirical analysis of Builders' Behavioral Profiles (BBPs) We introduce a collection of metrics that encapsulate builders’ features and strategies for block building and bidding during MEV-Boost auctions. 🧵⬇️
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@ankitchiplunkar
Ankit Chiplunkar
2 years
The MEV dilemma.
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@thegostep
Stephane
2 years
We predict OFA implementations will cluster around four designs on the following matrix: 1. RFQ auction 2. Exclusive batch auction 3. Transaction execution service 4. Blockspace aggregator
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@ankitchiplunkar
Ankit Chiplunkar
2 years
@cobie @coinmamba Come back to Coinbase Cobie, complete your arc.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
1/N Publishing more intuition on how to play Art Gobblers using final game parameters. Code to charts here: @artgobblers @_Dave__White_
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@ankitchiplunkar
Ankit Chiplunkar
1 year
5/ In the first quarter of 2023, 60% of the arbitrage opportunity (by revenue) was captured by CeFi-DeFi strategies. Moreover, due to the risks involved 91-99% of EV_ordering is sent to the proposer, compared to only 37-77% for the EV_signal strategy.
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@ankitchiplunkar
Ankit Chiplunkar
6 months
MEMEs from the Group Chat.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
A deep dive into the Order flow auction space. 👇 It was great fun working with @thegostep for this one.
@thegostep
Stephane
2 years
Orderflow auctions (OFAs) return value back to users and will be one of the key themes of 2023. We survey 12 independent OFA implementations and present a deep dive into the OFA design space. In collaboration with @ankitchiplunkar & @ConsenSys Research
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@ankitchiplunkar
Ankit Chiplunkar
7 months
State of the industry!
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@Travis_Kling
Travis Kling
7 months
🚨🚨Today I'm publishing my thesis on what I think could be the defining feature of the next 12-24 months in crypto. Settle in, this is a long one. The thesis is called: "A Lack of Pretense That Any of This Shit Does Anything or Will Ever Do Anything" Not financial advice.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
The flippening no one is talking about.
@sebkrier
Séb Krier
1 year
Humans now slower and worse at solving CAPTCHAs than ML-powered bots.
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@ankitchiplunkar
Ankit Chiplunkar
6 years
Built this with @willprice221 @aazarov and @Studnev this weekend 😁 #Ethparis
@will__price
Will Price
6 years
Check out the contract explorer we built at #ETHParis ! Our machine learning algorithm can be used to identify vulnerabilities in Ethereum smart contracts.
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@ankitchiplunkar
Ankit Chiplunkar
7 months
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@FrontierDotTech
Frontier Research
7 months
🇺🇸 Chain Abstraction Day @EthereumDenver 🗓️ Wednesday 28 Feb, 11:30 - 18:00 Together with @NEARProtocol and @Agoric , we are hosting the inaugural Chain Abstraction Day. Space is limited; apply now for tickets:
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@ankitchiplunkar
Ankit Chiplunkar
5 months
The demand for blockspace is infinite! Chain abstraction paves the way...
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@mattigags
Matti
5 months
We’re stuck in an inadequate equilibria of short-term narratives. Let’s explore possibilities beyond the current discourse and beyond layers. It all starts with blockspace.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
3/3) Another liquidation event paid $580 in fees (2.5ETH) to earn a profit of $2.5k DAI in a single transaction. A total of 125 transactions have paid more than 1 Eth via fees to miners, almost all related to liquidation events.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Optimal Gobbler minting strategy.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Similar to how we have EIP-4844 () which creates a separate fee market for data blobs. Because blobs are much much cheaper. We need a separate fee market for TOB and ROB block space.
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@ankitchiplunkar
Ankit Chiplunkar
6 months
The demand for blockspace is infinite!
@ptrwtts
Peter | Reservoir
6 months
We are so back
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@ankitchiplunkar
Ankit Chiplunkar
2 years
I am also interested in building a DAO where users can pool their Gobblers and take decisions to maximize DAOs Multiplier market share. HMU if interested.
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@ankitchiplunkar
Ankit Chiplunkar
4 years
@jimkxa This talk was amazing. You have significantly more first principles in your arsenal. Can you please name a few books where I can soak up these first principles?
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@ankitchiplunkar
Ankit Chiplunkar
5 years
Binance USDC balance at the start of every month. The USDC balance reached a peak of $135M in Aug 2019 and has been decreasing since then, it currently stands at $72M. More data available here:
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Releasing a DApp to place limit orders for Fei The DApp gives Fei holders the opportunity to pool their funds together and make the arbitrageurs work for them.
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@ankitchiplunkar
Ankit Chiplunkar
9 years
@ARangarajan1972 maine ek chota sa blog likha hai any reviews would be great. :)
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@ankitchiplunkar
Ankit Chiplunkar
2 years
@balajis sums up foreign policy
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@ankitchiplunkar
Ankit Chiplunkar
5 years
2/3) One liquidation event earned a profit of $40k DAI in a single transaction. It also destroyed 49 contracts (via gasToken) consuming less gas and pay a fee of only $8. cc @phildaian
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@ankitchiplunkar
Ankit Chiplunkar
5 months
4 types of cross-chain activity IMO Does this list cover all cross-chain use cases?
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@ankitchiplunkar
Ankit Chiplunkar
5 years
@thetokenanalyst can now tag 95% of the $BTC blocks mined to their respective miners.
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@ankitchiplunkar
Ankit Chiplunkar
4 years
@HyperopticCS No connection in Wapping
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Ok, installed Github Copilot yesterday and 🤯 It can read my mind.
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Atharv v0.0.1 vs v0.1.14
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@ankitchiplunkar
Ankit Chiplunkar
3 years
Atharv v0.0.1
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@ankitchiplunkar
Ankit Chiplunkar
1 year
8/ Special thanks to @thegostep , @0x94305 , @msetrin_ & Lev Livnev for their comments. And a huge 🙏🏼 to @EigenPhi for providing the atomic data.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
MEV can be split into two types. EV_ordering (atomic arb) which extracts value by reordering transactions. EV_signal (stat arb) which requires information invisible to the blockchain to extract value. DEX-DEX arbitrage is EV_ordering while CeFi-DeFi arb is EV_signal.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
The last 6 hours have been wild for the $ETH blockchain. ETH prices fell by 20% 3.6% of mined transactions failed (these were related to arbitrage or liquidations) And someone paid 10ETH as fees for a failed transaction.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
7/ This means in the future: * CeFi-DeFi will increase as token liquidity off-chain increases * Searchers will develop predictive models to win CeFi-DeFi trades. * Cross-chain arbitrage will be dominated by economically efficient execution (e.g., Chain <> CEX vs Chain<>Chain)
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@ankitchiplunkar
Ankit Chiplunkar
4 years
A total of 80k BTC went into @BitMEXdotcom and 52K BTC came out of BitMEX between 12th and 13th March, when the price of BTC fell by 50%. data: @thetokenanalyst
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@ankitchiplunkar
Ankit Chiplunkar
4 years
WBTC recently got added as another collateral type in the MakerDAO ecosystem. Let's have a look at some of its numbers 👇 There currently exists ~1200 WBTC on the ethereum ecosystem, 40% of that is with decentralized exchanges.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Genius is the ability to curate and process large inflows of images into memes which are useful for making content & generating higher-quality keks.
@NathanWorsley_
Nathan Worsley
1 year
Genius is the ability to curate and process large inflows of information into mental models which are useful for making decisions & generating higher-quality insights
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@ankitchiplunkar
Ankit Chiplunkar
2 years
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@ankitchiplunkar
Ankit Chiplunkar
2 years
V.0.6.17
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@ankitchiplunkar
Ankit Chiplunkar
7 months
In 2020, the Ethereum network transitioned to a rollup-centric roadmap. 4 years since then more than 50 rollups are already live in production. While they provide much-needed horizontal scaling, it has ruined the user experience.
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@ankitchiplunkar
Ankit Chiplunkar
2 years
In the last 4 months, 16.3% (~$20M) of Ethereum’s security budget was paid by CeFi-DeFi trades. This value is leaked by AMM LPs and captured by informed searchers and validators. As CeFi-DeFi competition increases, validators are poised to capture an increasing share of it.
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@ankitchiplunkar
Ankit Chiplunkar
1 year
The spice did flow!
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@FrankieIsLost
frankie
1 year
at ethCC, panelists are asked to define intents: person A: "intents are constraints on the state transition function" person B: "intents are a glimpse into the subconscious, a probe into user's mind. you'll never have my intents, you'd use them to kill me" we are so back
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@ankitchiplunkar
Ankit Chiplunkar
1 year
Block-builder PGAs
@ankitchiplunkar
Ankit Chiplunkar
1 year
In the chart below we see the bids placed by builders. The bid value moves in sync with the price deviation. Searchers performed ~50 CeFi-DeFi arbs in this block across a variety of tokens and pools. The winning builder paid 28.6Ξ.
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@ankitchiplunkar
Ankit Chiplunkar
7 years
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@ankitchiplunkar
Ankit Chiplunkar
4 years
A total of 28k BTC went into BitMEX on these days. This happened because investors were struggling to maintain their positions from being liquidated.
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@ankitchiplunkar
Ankit Chiplunkar
7 months
Growing the p̶i̶e̶ CAKE 🎂
@FrontierDotTech
Frontier Research
7 months
We are pleased to welcome the newest members of the CAKE working group who are coming together to help define the standards for messaging between layers of the Chain Abstraction stack: @arbitrum @blocknative @conduitxyz @Consensys @eigenlayer @EspressoSys @etherspot
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@ankitchiplunkar
Ankit Chiplunkar
2 years
Decentralisation is the means. Permissionless-ness is the end.
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@ankitchiplunkar
Ankit Chiplunkar
5 years
@mdudas Nothing that I have read thus far. But it: 1. Indicates trust in the system 2. Proves utility of $ETH as the smart contract platform 3. Signals other uses of $ETH than just exchanging/hodling
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