u/cyhiandra

Thinking about CLPR and token prices. Focus on one example, ie. ETH moving between Ethereum L1 and Hedera.

Firstly, I am not sure if the market can even price ETH on Hedera - for example, there might be some Hashspheres receiving ETH from Ethereum L1... OK, so there's less ETH on Ethereum, does that make the price of ETH go up? How does the market track ETH via CLPR on Hashspheres? So I'm wondering that for ANY token to be handled on Hedera, it must be created on Hedera mainnet first... Then the smart contracts for CLPR could also be on Hedera mainnet, ie. public, so anyone can call them for CLPR transfer. Right? Therefore SC calls will push tx on Hedera mainnet - nice. And that way as well liquidity can also be tracked... CLPR needs to live on Hedera mainnet is my thinking via a public coordination/routing SC.

All just questions and speculation, obviously.

But then, once ETH is on Hedera or a Hashsphere, surely the VALUE of ETH on Hedera/Hashsphere could be deemed as MORE than if it was native on Ethereum L1?

For example, transferring ETH back to Ethereum L1 from Hedera:

1. is slower than natively on Hedera
2. inherits all the risks of Ethereum and loses all the benefits of Hedera
3. Not sure if MEV comes into these transfers back to Ethereum L1, but hey, let's throw it in.

So my point is that pretty much every asset in the crypto sphere (and let's remember that other networks have no choice in whether this will happen or not, someone on Hedera or Hashsphere just have to want it to happen) would benefit on being on Hedera.

Then my mind goes to how defensive crypto networks are, and what could they do to try and prevent this transfer of liquidity to Hedera from happening? Maybe offer even better staking benefits with locking... but that would only work for so long, plus increasing staking benefits would put further strain on their treasuries and tokenomics/mining rewards models.

Would appreciate points from pointy heads in this sub.