# #1 What I Read This Week... By [chandan](https://paragraph.com/@iamchandan) · 2024-04-01 --- **AI x Crypto, EigenLayer, Avail, Stablecoins, Particle Network, Appchains, Arbitrum Nova, and more...** [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=Yj7sqT7FxJQ) Lagrange Labs (a ZK Coprocessor that can be used for data computation by smart contracts on Ethereum Layer2s) is using AVSs from [ether.fi](http://ether.fi/). [Ether.fi](http://ether.fi/) announced that it will stake 500M for Lagrange Labs AVSs security. Following this event, other LRTs announced that they will stake for Lagrange Labs. Currently, 1.5 billion has been staked. There are many ZK Coprocessors, but this will put Lagrange Labs in the lead as the most secure ZK Coprocessor. [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=DV-rMP6V-Yk) My thoughts on giving smart contracts access to AI: It doesn't make sense for a smart contract to have access to an AI agent now. Blockchain is pro-finance, and we can't afford mistakes, but AI agents can make mistakes. Using AI on-chain is inefficient. However, this can be useful in generating on-chain art, which could be its first application. [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=Tbhcqau0WdM) **Avail is building all the key modular layers like DA, SS, and Agglayer for Rollups.** AvailDA - Data layer, AvialFusion - security shared sequencer, AvailNexus - Agglayer [https://jacobrizzuto.mirror.xyz/ifZ8E6TEDM1iPOf-QA46nH8bu6Y5K9CT\_t3j9juBwM4](https://jacobrizzuto.mirror.xyz/ifZ8E6TEDM1iPOf-QA46nH8bu6Y5K9CT_t3j9juBwM4) **Overcollateralized stablecoins are inefficient compared to 1:1-backed stablecoins. On-chain overcollateralized stablecoins that are backed by crypto are even more inefficient and insecure due to crypto volatility.** [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=fKukvQ5iRkI) Particle Network: Chain & account abstraction, solving the fragmentation problem in web3. Appchains, wallets, Aggregation layer [S3 Finale: Does The AppChain Thesis Hold up?](https://www.youtube.com/watch?v=wR4a7bCzjRs&ab_channel=BellCurve) [https://research.despread.io/reports-kr-arbitrum/?ref=test-newsletter](https://research.despread.io/reports-kr-arbitrum/?ref=test-newsletter) Arbitrum Nova (for socials and gaming) has attracted cool games to build on it, on par with other gaming chains. Arbitrum Styles (to be launched this year) will lower gas fees by 10x and support other languages (Rust, C, and more...), giving Arbitrum an advantage. [https://balajis.com/p/all-it-takes-is-all-you-got](https://balajis.com/p/all-it-takes-is-all-you-got) The US government owes more than it has, and the US dollar's value is decreasing. It has already decreased by 25% since 2020. This cannot be stopped. The dollar's value will decrease even more, and people will turn to Bitcoin and Gold, causing their prices to rise. [https://m.mirror.xyz/gyyuM1OocVmptHYvl4jR6G3fWYsOutCgu19RDGjzGqc](https://m.mirror.xyz/gyyuM1OocVmptHYvl4jR6G3fWYsOutCgu19RDGjzGqc) Tokens are extremely powerful coordination tools that can be used to bootstrap product usage, seize attention conduct self-marketing, and create composable ties between different products. Launching the token at the right time can save the product. [https://mirror.xyz/0x31e69c05EE240A30CC2A007FEa3d0835f0a14096/XC\_PQGQ-n05LMWUkRZSKJ4vQS663cgVAPvjXRddQSTg](https://mirror.xyz/0x31e69c05EE240A30CC2A007FEa3d0835f0a14096/XC_PQGQ-n05LMWUkRZSKJ4vQS663cgVAPvjXRddQSTg) The article author says, "Contrary to popular belief, there is no room for a diverse pool of L2s. There is room for two, Arbitrum and Optimism. And the race is likely over. Several economic factors lead to duopolies, including high barriers to entry and limited resources, economies of scale, network effects, consumer loyalty, mergers and acquisitions, and government policies." This will play out in the coming years. If there is nothing special about layer 2, it will become a ghost layer 2. Those with clear benefits like ARB - DeFi layer2, Base - Coinbase Users, OP- Superchain, and Zora for artists will succeed. [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=JeDMWr1FqMg) Some half-baked ideas: * A crypto-friendly AI agent is built into the wallet to help users understand the transactions they are signing and answer their questions on protocols and yield opportunities. * Is EigenLayer's customer base node operators or protocols? * Reduce block time to decrease MEV. * All dollar-pegged Stablecoins will provide yield, and they will be backed by T-Bills. Let’s connect at [Chandan (@chandan1\_) / X (twitter.com)](https://twitter.com/chandan1_) Collect my art at [iamchandan.eth | My Profile (zora.co)](https://zora.co/@iamchandan) --- *Originally published on [chandan](https://paragraph.com/@iamchandan/1-what-i-read-this-week)*