0x & Polygon team up, Aztec goes open source & more - The Daily Gwei Refuel #141 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel raricup the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 11th of june 2021 all right everyone let's get into it so for those who missed and for those who aren't in the discord channel the daily grade discord channel uh there's currently a giveaway being run there where you can basically win one of these beacon books and for those who don't know the beacon book is uh an initiative being run by uh this platform called state for works uh and the book is a collection of perspectives from 46 beacon chain researchers and implementers wrapped in delightful graphics here so there's one being given away all you have to do is be on the daily discord channel give the post in the announcements channel a thumbs up

and follow this stateful uh works twitter account here the winner will be chosen on monday so yeah definitely enter this and enter this kind of competition here for this book you will be able to buy this book at a later date i believe but it is a limited edition so if you want to own a copy you can go in the running to win one there or you can buy one later on but you know i think it's very very limited so definitely want to maybe try your luck at this giveaway and not only the daily way but there's a bunch of other communities doing it too so obviously like bankless um the eath finance subreddit um git coin po up things like that so definitely go check that out as well and speaking of the discord channel i will be doing the usual ama

tomorrow so at 11 pm australian eastern standard time which is early morning us time uh and i think that is the afternoon in europe or the early afternoon in europe if but don't fret if you can't make it or you know you miss it it'll be recorded and uploaded to youtube shortly after the ama is completed but if you do have questions you want to ask you can ask them either live on the ama or you can put them in the ama series channel on discord which you can find obviously in the discord channel there and i encourage you to do to do that if you can't join so that your questions can get answered but anyway moving on from that for now i did want to give a quick shout out here to starkware who are looking for people to work for them now they're they're

kind of looking for very technical people where i i you know but based on this tweet from uri here who says that if you're interested in zero knowledge proofs know about compilers heard of cairo uh and and and you're interested in in starkware's touring complete z zero knowledge proof language yeah uh dm erie for an exciting uh effort on this front so yeah if you're if you have those skills and you wanna work for one of the best teams in this space definitely give uria dm here so as tech network the the kind of like privacy network here announced today that they're going open source so they kind of like says here that and that aztec initially released some of it their prover code under the polaris license jointly created with starkware

and today which i think was yesterday now they announced that all future releases of code from ads aztec will be under the apache 2.0 license here uh so uh i think i've discussed this before about open source licenses and how there's uh a multitude of different ones like for example unisof v3 has his open source license but there's also kind of like a limitation on the code it cannot be used by anyone except the uniform team and whoever uni swap gives permission to use it to but it's still open source now this isn't just another license here they're apache 2.0 and there's a bunch of other ones out there as well uh that kind of people i guess like attach to open source code for various different reasons i mean i think metamask has one as well where metamasking's open source but

they have a license where that if you have more than i think uh i guess maybe 10 000 users or something like that uh and you want to fork metamask you have to actually pay for the privilege to do so uh so yeah and obviously these kind of things are put in place to both protect the work uh that the teams put into this uh and also make it so that not anyone can just copy the work and kind of like monetize it any any kind of like big way so yeah and i've seen debates about this before about these different licenses and i think i discussed this on on on a recent refuel where i said that where people often say oh it's open source you should be able to copy it and do whatever you want with it and it's like yes that that is that is

kind of like true to an extent i guess but there's the spirit of open source and there's like the literal kind of like definition the spirit is that with open source you're able to kind of like fork it contribute to it make it better overall but if you just take the code and then monetize it some way by attaching a token to it well that's just not cool that's not in the spirit of open source so i think that's why uni swap has done what they've done with v3 i think in a re in particularly a reaction to how sushi swap played out and how pancakes were paid out where they're all just forking uni-swap um and obviously using all that code and kind of attaching their own token to it now in saying that sushi swap obviously at this point in time has differentiated

themselves and is building a bunch of different products um but you know there's still a reason why v3 has that license attached to it uh whereas this apache license here i'm not sure exactly kind of what it entails you can read uh basically um i guess like here what it what it's all about and this will be linked in the youtube description um but yeah i think this is just them adopting a fully open source approach so they want and they say here the aztec team says here they want their community to not only use and integrate with their tools and technology uh but also to modify it in the best way that fits their needs which i think is pretty cool here so this seems to be a pretty loose license which is cool to see um and azteca building really cool things you can

basically play around with what they're building at zk.money which is their layer two privacy roll-up and they have a lot more kind of like things coming down the pipeline from what i know so yeah definitely looking forward to seeing aztec evolve here and congrats to them to getting this this this open source out there so polygon announced today that they are uh kind of starting up this initiative or maybe it's existed around uh already but they're kind of like ramping it up here called the polygon advocates so it's your chance to take polygon to a whole new level so essentially what this is is basically a way for you to i guess like apply to this polygon advocates program here uh and become part of like the community so they've got a few reasons here why you should become a polygon

advocate you get exclusive access and a chance to work with the polygon core team you can be become the face of polygons decentralized community receive support to grow your local polygon chapter and many other things here so basically i guess a polygon advocate would be just an evangelist who gets to work closely with the polygon core team uh and gets to work closely with the community and do a bunch of community related and maybe even marketing things here so uh definitely if you want to be part of this go and kind of like i guess fill in the forms here i think there's a form yeah yeah application form uh this will link to the youtube description of course uh and i've been saying before like how there's lots of different ways to get involved with projects um and i've talked about this you know plenty of

times where i said you can just join a discord channel for various projects ask what help they need and they'll tell you and they'll compensate you for your work whether it be from the dow or maybe you know you eventually get hired by the core team and work with the core team but there's also these sorts of community advocate programs and you know the grants programs that i've talked about as well there's so many ways to to work within this industry i mean get coin grants as well you know bounties and things like that um that you know i think there is really a spot for everyone and as i've mentioned plenty of times in the past you don't have to be a developer you do not have to be technical there are so many non-technical roles out there and this is one of them right becoming a

polygon advocate you don't have to code you don't have to like you know build kind of like really technical things or whatever all you have to do is be a community marketing person and be like a promoter of of the polygon kind of network here so yeah definitely go check this out if this is interesting to you there was one other major polygon related announcement today as well that where xerox has announced that they are partnering up with polygon to bring one million uh new users to xerox powered apps on the polygon network so there has been 10.5 million dollars in joint funding allocated to the community xerox dow here in this initiative which i think is really cool this is like i guess like sharing um resources here so the the uh and this this goes back to polygons d5 for all

fund that i spoke about where they were putting hundreds of millions of dollars worth of matic into d5 projects so that matic uh polygon has put seven million dollars worth of matic into the xerox community dow and xerox labs is contributing another 3.5 million in 0x taking it to a total of 10.5 million here so this is basically to get more people kind of using xerox on polygon building on polygon um making it so that the integration runs deeper i'm sure there's a bunch of other things to be done as well across the marketing community side of things too so definitely if you're interested in xerox or polygon this might be something that you can get involved in and i'm sure i think you can go on their governance and research forum here and kind of like get involved this way as well so if that's something you're

interested in definitely go check that out i'll link that in youtube description for you so a really interesting tweet from cyrus today on twitter where he said imagine if el salvador used one-third of its gdp to market by btc and burn it every year well that's exactly what eip-1559 does but for eth now i want to talk about a few different things got to do with one five five nine today and i'll start with this tweet and i'll move on to something that i've been seeing people talk about so this tweet is really funny because when you think about it ethereum is its own kind of nation i guess it's a global nation it's not really it's not tied down by borders or anything like that it's not tied down by by kind of like you know the passport for ethereum i mean your passport is

essentially your ethereum wallet um to be part of this this kind of nation all you need is an ethereum wallet really at the end of the day and some eighth of course to pay the kind of gas fees um so from that perspective ethereum can be viewed as an as an economy as part of its nation right the ethereum economy where you can kind of look at the burning of one five five nine as the kind of like uh reinvestment of uh i guess like the um the uh the nation's kind of i guess reserve asset which is ether in this case so it's not it's a it's not like literally reinvestment where the eighth the gas phase are being reinvested into like infrastructure or into some kind of fund um you know it's not like taxes which are you know the government obviously

hasn't in their war chest and just deploys as they see fit but it's actually just redistributing it all to ethers because the less eat the reason supply you know naturally over time the price of e should go up and all eighth holders benefit from that obviously so that's one aspect to to kind of one five five nine here that i wanted to talk about but the second one is that i'm seeing a lot of people kind of i guess talk about well gas fees are low now um is 1.559 really going to make a difference and gas fees are low for many different reasons i've seen some people try to push this narrative that gas fees are low because people have moved to other chains and no one's using ethereum anymore i think that is it is just like false because generally what we're seeing uh i guess um and i've

written about this in the newsletter before and i've talked about it on the refuel we're seeing i think three major factors or three major things as to why the gas prices are low i think by far the biggest is the fact that the market has cooled down now if you look at what a lot of the fees were kind of being paid on it was uni swap so i think unisop was taking up 35 of all gas on ethereum now what do people do on uni swap they trade tokens okay so what what happens when you trade tokens would you do more of that in a bull market or do you do more of that in a bear market well of course you do more of that when the market's hot so obviously as the market is hotter there's more trading going on there's more arbitrage opportunities

going on and there's more gas fees being paid that to me is a very obvious thing here the second thing other than the market cooling down is the gas limit being increased so we increased the gas limit um and that did kind of help a lot with the gas fees uh uh uh initially brought them back down to under a hundred way uh now we're hovering at about 10 to 20 so it's a lot less but i think that those two things coupled together obviously the market cooling down and one five five one five five nine the gas limit increase had a big impact here but on top of the gas limit increase you also had flash bots which takes the uh obviously um a lot of the transactions out of the public mempool and basically goes into a dark pool and the fees are paid directly to the miner

now with 1.559 implemented these fees will can still be paid directly to the miner but for the miner to include the flashbot transactions in a block they need to pay as the base fee and burn eth so even though it might not show up in the on-chain kind of metrics because it's being done off-chain that burn that burned eighth will show up now because at the moment we can't see uh literally like we've got estimates like there's a flashbots dashboard but you know um cryptofees.info isn't going to show you the fee revenue from flashbots so you have to actually add that in so if you do add that in it it makes the the fee revenue kind of like a bit better here and then uh we're a bit higher than what it is today still so

i still think we're at like six million dollars over 23 hours on average uh if you add flashbots revenue it's probably maybe another one to two million on top of that i would say maybe even more than that i haven't checked lately but it would take us up to you know about eight million say so that's still eight million or at least not all of that is gonna get bit burnt say 70 of that which would probably be like six million or something so about six million of that will end up getting kind of like burnt here uh six million dollars of ether day still and that's during a quiet market now in saying that again just because gas and i sorry i should have mentioned this when i talked about the gas limit being higher so just because the the gas fees are lower per user doesn't mean that in

aggregate they're particularly lower because with the gas limit increase we can do more transactions so if there's more transactions on the network paying lower fees well then in aggregate the fees are still kind of net higher and i know that transactions on the ethereum network have come down i'm going to go through this on the the data pump video that i'm doing which will be out this weekend i am going to stick to that i promise you that it will be out this weekend but those have come down as well i think we picked at like 1.6 million transactions per day now we're at 1.1 million so obviously it's come down and i think that's due to the market cooling down but i also think it's due to people moving to scalability solutions definitely polygon has seen a huge surge in activity uh we've had some of the layer twos um

see a huge surge in activity and this is just gonna continue something like arbor trim as well that is going live very soon in a public capacity where users can use it people are just going to migrate across because even at 10 to 20 grey it is still much more expensive than it's going to be on these layer 2s on these kind of other scaling solutions like the polygon pos chain and stuff like that so from that perspective if you take all of that in aggregate it's not just because people move to different kind of like uh chains or different scaling solutions here it's it's a number of different factors so and i do think that in 1559 is still going to play a big kind of part in its value accrual narrative and kind of like burning a lot of heath and still we're going to get to

i mean when the market heats up again gas prices are going up again that's it's as simple as that and as i've discussed before what ends up happening is that when gas fees are high they kind of price out the lower value transactions and the higher value transactions are the ones that will will kind of like be being done on the network now what is the highest value transaction that you can think of on the ethereum network i've said i've said it before this is like a pop quiz i've said it many times before the highest value transaction is a zero knowledge or an optimistic roll-up proof being kind of posted to the ethereum chain excuse me sorry the reason why it is the highest value transaction is because a rollout proof may uh uh has all of the transactions

from the roll-up on inside of it so potentially thousands of transactions worth you know whatever it is in terms of value settled in it so that those are the highest value transactions and obviously these roll-ups need to pay a theorem for its security um and with and if they don't do that then they don't inherit ethereum security so that's also a big motivator there so taking all that in aggregate is why i guess like the fees are down and it's why i don't think it's bearish for one five five nine i do think that when the market hits up again the fees are going to go up again so that's going to be good you know it's it's better that we have one five five nine implemented than not even you know even at like 10 way like average it's still going to be better than than

not having it implemented so hopefully that clears up a bit of the maybe things you've been seeing on twitter i know i've been seeing it lately about why gasps are low you know what the implications are for one five five nine here so yeah hopefully i was able to help with that so sushi uh well i guess 0x mackie from the sushi shop team is teasing something here that is coming out on the 20th of july 2021 um i don't think it's arbitrary someone else here in the comments here this is already a done deal obviously you know sushi's been kind of i'm talking about arbitrary for a while i'm just scrolling through the comments here to see if anyone mentioned anything i don't think so i think they're just teasing this no one really knows what it is so you know announcement of an

announcement obviously but still i guess like hype right i mean i know that there's a lot of sushi swap fans out there a lot of sushi holders i mean you can see from the engagement on this tweet obviously a lot of fans here so i'm very curious to see what this is and they're teasing it quite early because the 20th of july is still what 40 days away or something like that so it's not exactly close uh so you know usually i mean i'm using my marketing background hat here but usually when you tease something you definitely want to do it closer to the day so people don't forget about it but maybe they are um kind of like teasing uh just the start of it now and will be kind of like rolling stuff out and leading up to that date uh so i mean yeah i just translated what

what xerox mackie said here just said expect us so you know let's see what happens here i'm excited to see kind of you know what they're teasing here i'm sure it's something really hype uh you know the sushi swap team always tends to deliver here so curious to see how that plays out so another kind of like i guess tease is from banteg from yarn here who's teasing a new uh vault called wrapped ultrasound money and this is on the chain id 137 now for those keen enough to spot the chain id here 137 is the chain id of the polygon pos chain so this is going to be a new volt on polygon i think this is the first urine vault that's going to be on polygon i think um i i don't think they're on there yet and this is going

wrapped ultrasound money means that it's going to be a new eighth vault uh and you know banter answered definitively here by saying yes it is going to be a new kind of um heath vault here so i'm very curious to see what this is because typically when you want to earn a yield on yourself like plain eath you would do you know a bunch of different things i've discussed before how you would put it into a money market protocol borrow stable coins against it and then go and yield time with stable coins uh that has become less lucrative these days yield unstable coins has collapsed because the market has gone quiet um for those who don't know the majority of the kind of like borrowing power for stable coins comes from people wanting leverage and wanting to basically lever up during a bull market now that

we're in a quieter market people don't want to do that so much so the yields are dropping there the other way to earn yield on your eth uh is by going into the curve eighth st 8th pool which has incentives on it um i think alpha finance has an eth kind of like vault you can use there but again that is also powered by people kind of like wanting to leverage up and demand for leverage and then of course there's staking as well which is paying about 6.8 percent last time i checked uh apr there but you can't access that until the merge so you know there's a trade-off there of course uh or you can basically use one of the kind of custodial providers or something like lighter and get your st and still be able to get that return but you know it's it's it's kind of like

i wouldn't call it like totally centralized but it's definitely not trustless or anything like that so it'll be good to see what they come up with i think the the previous ether vaults that yeon had were basically just like leverage vaults where they would automatically put that ether to maker draw die put that die into curve and then kind of like stack the yield that way and basically stack each for you that way and that's what i'm actually really interested in is the eighth denominated return because if you do what i said uh just before i mean oh sorry i should mention the all eighth volts that's coming out al ethol that's coming out from alchemics hopefully this weekend as well uh but we're not like totally sure on the details of that just yet but uh that's another kind of way there but what i was saying before about

kind of like borrowing stable coins against your eighth that is not an eighth denominated return because you're returning against a stable coin so you're being paid out in stable coins so if you're yield farming say usdc you're going to be being paid out in usdc here and maybe you're farming some other kind of tokens or token incentives so those tokens will be being paid out to you so you would actually have to trade the usdc and the tokens after tax because it's income tax to eighth whereas an eighth denominated return means that uh you know you're still gonna have to pay tax on the eighth when you claim it as income tax but it means you don't have to do those extra trades or whatever it just basically gives you a return in eth so we'll see if that's the case with this volts maybe it's not because from from

previous volts on on on yern it has been definitely like just an automated stable coin farming vault but still i'm very curious to see what they cook up here and i'm glad to see them kind of launching something on polygon here so jonathan nash kind of teased this video that you can see here of apes versus me bit now i got to play the video here for you from like the start and for those who listening you won't be able to watch this but it's basically i guess like an augmented reality kind of render of uh a me bit versing a board a in kind of like a boxing match you can see here or like a just a general fight which i thought was pretty cool and you know i guess this is what i'm talking about when i talk about like the metaverse and things around the

metaverse and kind of like bringing to life nfts at the end of the day and adding utility to nft so you could imagine you know games like this just basically being made for mobile and having nfts attached to them where you can collect characters and battle them out and do whatever with them kind of like a you know street fighter or like a mortal kombat or something where you can actually own the characters and you can own the gear you can change their outfits whatever you know we already have a lot of this in the traditional gaming space but when you bring this to to crypto and you add nfts and kind of like add all this monetization into it and this plate to earn that we're seeing played out pioneered by axiomfinity i think that's where stuff gets really wild but uh you know just like

everything i i think that the nft space as i mentioned before went through its mania and now it's cooling down but i think that during this cooldown period a lot of interesting stuff is going to keep getting built and a lot of interesting stuff's going to keep getting deployed so definitely something to keep an eye on but i always love kind of like watching these i know these these kind of videos are just proof of concepts i've kind of uh i guess like showed some of these before i think but generally this is how it all starts you start with a proof of concept then you move on if there's enough attention on it and then you get users and then if it becomes like a widely used product you get product market fit and you keep building on it sort of thing but i do think eventually when a lot of

these kind of i guess um companies who make mobile mobile games with in-app purchases clue into nfts they're going to come in in a big way because it's just another way for them to monetize but the thing about nfts is that it kind of like allows anyone to build these kind of um i guess like games and monetize and and kind of like levels the playing field i believe as well because you can just see by actually infinity you know that's a brand new game that's been i mean it's not brand new anymore but it was like a couple years ago i think uh and they've been growing their community quite quite nicely and actually have a really great uh and big filipino community where uh those people in the in the philippines are able to earn a living wage by playing the game and selling items to

people from all around the world so i think that is going to be the future of uh you know gaming nfts are a big part of it is that play to earn aspect so i'll link this u this video in the youtube description you can go check it out for yourself so the index co-op has posted their march to may treasury report that's now out so the the highlights are strong month-on-month uh gross profit growth here you can see here that the default pulse index generated 100k per month in revenue for the first time in april and you can see kind of like the index co-op gross profit has been going up uh very bigly i guess like during uh during april uh this doesn't cover this covers may as well i think um so you can see april and may here obviously big big big kind of like

revenue growth there uh sorry big profit growth there and you can see the gross revenue by product uh shows growth as well uh the the fly series is obviously a massive success here so for the flexible leverage indexed um ethan btc you can see uh the eighth one has a 347 thousand dollars of kind of uh income being generated for the co-op in uh just march april and may and you can see the growth here has been kind of um kind of cool i mean to see like look at in march it was only nine thousand four hundred in april it was sixty thousand in may it was two hundred and seventy seven thousand dollars of revenue same with dpi here not as i mean the dpi revenue isn't as uh i guess um isn't as lucrative as the fly has been but still very chunky growth

very chunky revenue on on on on kind of slower growth here but that's because i think the dpi has been around for longer and d5 has also been in a bit of a i guess down market for quite a while so not many people are interested in buying the dpi but i think that will change over time i think indexes in general are just things you set and forget you don't worry about what the wider market is doing so yeah i i always love looking at these kind of reports there's much more in them i mean you can go view this it'll be linked in the youtube description but generally i like looking at these treasury reports the index cop isn't the only one who does it i think you know yeon has been been doing a lot in the past um make a dow there's a bunch of different

projects doing it now uh and it's just always good to see kind of the numbers because everyone goes on a value and defines the future d5 is big dfi's dsd5 is growing but once you actually quantify it you can you can see like what the true numbers are how much growth there actually is and what it you know what the different protocols look like when compared to each other so yeah i'll link this in the youtube description you can go check it out for yourself so finally here we have git coin and the open source collective teaming up to essentially fund the open source collective so this is a brand new way to sustainably fund open source and this is open source i guess like outside of the crypto ecosystem and they're using quadratic matching to do so so this was obviously uh something that was pioneered by git

coin you can see here there you can find a traditional open source using the i guess like matching um matching kind of sorry quadratic matching mechanism that's used as part of bitcoin grants i think this is so cool like i i mean open source software is huge absolutely massive in the kind of like non-crypto space it has been for a very long time but traditionally it has been very very hard to monetize open source or to get funding for open source with git coin one of their core missions is to essentially fund open source in perpetuity and be able to fund it so that various developers can actually earn a living off it so say you you know you can earn like a salary off just get coin grants that is the kind of end goal here and they're going beyond just you know

crypto kind of open source but going into the traditional web 2 open source here and you can see some of the some of some of the names you might recognize here like um cube's os and gulp uh i'm just looking at the ones that i recognize from my brief stint as a as a developer obviously the tall project everyone knows about that so you can kind of like fund all of these things and speaking of the tour project they also did a uh nft sale too so you know the crypto ecosystem is look is kind of coming up with a bunch of different ways to fund these things the things that traditionally haven't had funding so i think it's just really cool to see uh you know the the the mechanisms that came from crypto be applied outside of it because a lot of people criticize crypto for being very

insular being very circular so if we can break that and break that kind of i guess like narrative it's it's it's good for everyone so if you want to donate to your favorite open source software that is not you know crypto uh like yes i guess native here definitely go check this out it'll be linked in the youtube description but i think that's it for today everyone so thank you again for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the discord subscribe to the newsletter sorry join the discord channel and be sure to join the ama tomorrow um and uh but if not i'll see you next week on next week's refuel but keep an eye out for the daily grade data pump as well which will go live this weekend i

promise it will uh but yeah until then thanks everyone