The Optimist Twitter Spaces - CyberConnect

In The Optimist’s Twitter Spaces which took place on April 11, 2024, Subli hosted Ryan from CyberConnect to discuss the evolution of CyberConnect, social platforms, blockchain innovations, and more! Read our notes below to learn more.

Background

Subli (Host) – Founder of The Optimist

Ryan (Guest) – Co-Founder at CyberConnect

CyberConnect – a restaked Ethereum Layer-2 designed for social and optimized for mass adoption

Exploring Web3 Social Market: Shifts in Revenue, Data Ownership, and Blockchain Challenges

Ryan shares his journey into crypto, starting from hacking during his school days and participating in hackathons, to fully diving into the crypto space in 2017.
He talks about building a content platform on Cosmos, which eventually reached 30 million users and was acquired. He outlines the foundation of CyberConnect aimed at enabling users to own their social connections and content.
Ryan describes CyberConnect’s products, Link3 and CyberWallet, highlighting their roles in enhancing Web3 social connections and simplifying user onboarding across chains.
He explains the new initiative, Cyber L2, as part of Superchain aimed at fostering developer and user engagement.
Ryan discusses the dominance of social networks in Web2 and the disproportionate revenue-sharing models that disadvantage creators. He advocates for a Web3 model where creators and developers receive a fairer share of revenue and enjoy fewer restrictions, fostering innovation and freedom within the ecosystem.
Subli says that owning private data is crucial, as companies like Google and Facebook profit significantly from selling this data. He notes the slow growth typical of social platforms, which depend on increasing user interaction.
Ryan says that building social applications on blockchain, such as Link3, poses great challenges, particularly on existing chains like Ethereum. He outlines the high costs incurred—over $3 million in gas fees for 20 million transactions—which burdened users engaging in low-value social interactions.
Ryan explains that the inefficiencies of chains for handling large volumes of transactions and data were evident, as they competed with DeFi protocols for resources, exacerbating issues like network congestion and high gas fees. He notes that this competition affected user engagement negatively.

Chain Design: Cyber Architecture and Staking Mechanisms

Subli says that having a dedicated chain allows setting specific parameters to ensure high transaction output and minimal congestion, keeping gas costs very low for thousands of transactions per second.
Subli mentions Cyber as the first restaked optimistic roll-up built on the OP stack, using EigenDA for data availability to minimize gas costs, and questions the architecture and choice of the LP stack.
Ryan says that Cyber’s design is not primarily user experience-focused but aimed at benefiting developers, users, and ecosystem participants with governance rights through the $CYBER token. He explains how Cyber uses EigenDA to achieve much lower gas fees and higher throughput, which remains sustainable even during high activity periods.
Ryan describes Cyber as a publicly traded token, stressing the importance of avoiding centralized control over its Layer 2 to ensure network liveliness and fairness. He introduces a fast finality layer on top of the stack to commit economically to quicker L1 finalizations and discusses future components for more decentralized sequencing and verification.
Ryan compares Cyber’s staking to Ethereum’s, highlighting the significance of a substantial token stake to deter network attacks. He details the security measures of Cyber’s Layer 2, which include fast fidelity nodes powered by EigenLayer, ensuring security through Ethereum and staked cyber tokens.
Ryan mentions the ongoing bootstrapping of $CYBER staking liquidity, with approximately $40 million in $CYBER actively staked to secure the network.

Blockchain Security, Governance, and Collaboration: $CYBER Token Staking and Development

Ryan explains that blockchain security depends on the commitment level, where non-compliant nodes face penalties, affecting their stakes in Ethereum and cyber.
Ryan explains that staking in Cyber not only bolsters security but also allows stakers to participate in governance and benefit from the network’s revenue, detailing a specific incentive rate set for the next seven years.
Subli mentions incentives provided to $CYBER stakers by partners, referencing a recent airdrop by Polyhedra to $CYBER stakers.
Ryan confirms the airdrop’s aim to add value to the Cyber network, highlighting ongoing collaborations that include bridging services enhancing the utility of the $CYBER token.
Ryan shares his long-term collaboration with the Superchain and other blockchain teams, highlighting a preference for interoperability and collective growth over competition, believing it enhances the overall Ethereum ecosystem.
Ryan discusses the advantages of being part of the Superchain, such as shared resources and greater development speed, and mentions specific support for developers through grants, reinforcing the benefit of collective efforts over isolation in blockchain innovation.
Ryan describes their go-to-market strategy which includes sharing a significant portion of protocol revenue with developers through grants, developer revenue-sharing programs, and rewards.
He highlights the desire to make Cyber a social Layer-2 platform where developers can focus strongly without competing for users based on APIs or yields as in other ecosystems.
Ryan explains that developers on cyber will be evaluated more on their contribution to the network rather than their revenue generation.
He mentions the launch of a $2 million fund for grants over the next two years to support developers, with the first grant cycle already distributing $150,000 worth of $CYBER.
Ryan highlights ongoing campaigns like cyber staking and initial liquidity campaigns to engage users. He details the upcoming “Social Summer Campaign” to showcase developers’ work on Cyber, aiming to attract initial users and liquidity for the projects.

CyberConnectHQ: Social Summer Campaign, Protocol Strategies, and Mainnet Launch Updates

Ryan says the “Social Summer Campaign” will be similar to past events, aiming to showcase developers’ work and assist them in gaining initial traction. He specifies the timing as starting in the next couple of weeks, with the campaign lasting for about a month starting in June, 2024.
Subli discusses the strategy of identifying leading protocols or ‘unicorns’ that could drive the chain’s success.
Ryan acknowledges the importance of leading projects and details that about 30 teams are currently building on Cyber Layer 2, with support through various initiatives including smaller investments and liquidity incentive programs.
He also notes the inclusion of meme coins on the platform, highlighting their social appeal and lowering user onboarding barriers.
Ryan says that users can currently try out the product built before the Cyber L2, which is deployed on the main network. He advises visiting cyber.co to learn more about Cyber L2 and to try the Cyber Wallet at wallet.cyber.co.
Subli asks about the services that will be available when the mainnet launches in a few weeks.
Ryan says that all basic apps, including bridges and regular protocols that provide liquidity, will be live on the mainnet from day one. He hints at upcoming powerful social-related apps that are already live on other chains.

Check out these important links

Show Information

Medium: Twitter (Audio)
Show: The Optimist Twitter Space
Show Title: Discover new L2: Cyber
Show Date: April 11, 2024