Cross-asset NFT swaps, MEV explorer introduced & more - The Daily Gwei Refuel #63 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 23rd of february 2021 all right everyone what an absolutely crazy time in the markets over the last i guess 24 to 48 hours right uh we had uh i mean this happened just after i recorded actually yesterday's daily grade refuel where we had this kind of first dump from you know about 1800 down to or is it 1500 or something like that as you can see on the chart here and then we kind of like bounced up from there you know went back into the 1700s then today we've kind of just come down completely and eth went to 1355 below the previous all-time high it kind

of has bounced back up and at time of recording ether's at about 14 79 14 77 you know it's changing um this is a pretty big dump i think it is the biggest dump that we've seen uh for for a little while now i think the last big one was was was over here on the chart you can see uh over here what is this when we were at 1350 when we rejected all-time high we went down to about 1900 which is a 33 percent drop uh whereas up here we peaked at what 2000 kind of 38 dropped down it wasn't it was a kind of a 34 drop but i think this time the drop felt a lot more dramatic and a lot faster and there are a lot of kind of

liquidations that went off and everything so yeah pretty brutal time but you know i wrote about this in the delegate newsletter today so i won't go over all of my thoughts here you can read that for for more of my detailed thoughts on on kind of the state of the market but i don't think this means the bull market's over that's for sure i know i know i say this every time i talk about it kind of crush here but i mean this is kind of normal you know this stuff happens you know if you look back at 2017 this was completely normal actually for eighth it was even worse where heath went from like ten dollars to 420 dollars and then dumped 70 percent to like 120 um in a month so ten dollars to 420 took six months and then within a month it

dumped 70 from there and then obviously we know eth went a lot higher after that so yeah and this isn't bearish for me at all for sure um i just think you know function of the way these markets are i mean pretty pretty brutal i mean this isn't just like for eth right the whole market kind of sold off and bitcoin as well right came down from almost 60 000 to i think what is it about like 47 45 it actually got to or something like that so yeah and i i don't know if the pain's over yet right you never know with these sorts of things but for me you know you got you all know that i'm a long-term person i kind of take a a very long term outlook on all this stuff and you know i actually bought a little bit

more each today of course didn't catch the bottom bought it around i guess it was like 1570 or something like that um you know trying to catch the bottoms like a fool's errand there's no way you can kind of do that but um you know sometimes you get lucky but sometimes you don't so yeah uh and on that note there was also a very high gas prices today as well i think record high gas prices um you can see here on the screen i've got it up to like 1300 gray here for a rapid transaction or a fast transaction i think it peaked at like 1500 or something like that um which is insane right i mean you know 1300 ways is a 40 transaction and that's just like a simple kind of 8th transaction right smart contracts interactions would be in the thousands of dollars

because of this now i explained that last time i guess why gas prices kind of go so high during you know extreme volatility the two main reasons is arbitrage bots that that kind of like arbitrage the entire kind of d fight on chain ecosystem and and look for um i guess uh look for opportunities there and that that includes i guess liquidation bots as well who look for positions to liquidate and then you have people who are willing to pay absolutely anything to kind of save their positions right their people could be at risk of liquidation they're going to pay whatever gas gas kind of price they need to pay to make sure their transaction gets in because the market's falling so quickly so yeah the gas prices went absolutely nuts there and on that note as well there was a ton of liquidations that have come in

so over the last 24 hours i think this is probably more by now there's almost 6 billion dollars worth of liquidations um i think this is the this is the highest number ever as as kind of larry points out here as well in his tweet uh but not the highest relative to open interest um and then about 2.6 billion of this came from just be binance itself which which is funny i saw a tweet actually from kind of uh crypto cobain yesterday where he said you know binance traders are just farm animals with internet connections because you can look at the chart here and see that binance traders just got absolutely wrecked here off liquidations and you know this is this is kind of like what happens with with um markets is when people are too over leveraged you know

these liquidations happen and then you know as people get liquidated it pushes the price down more and then you have what's called cascading liquidations and these can get pretty deep and that's why a major reason why we saw such a big dump is because we had a lot of these cascading liquidations happen um and then you know there's obviously not enough liquidity there to kind of pick it up so the bottom kind of just absolutely falls out and then you get to a point where eventually you know the selling pressure dies down and then buyers start stepping in but you know you never really know when it's going to stop in that scenario and there are certain technical indicators you can look for there are things called wicks on the chart you know i can show you here on the chart like these things wicks here

the wicks can go pretty deep i mean you can see here this week was extremely deep before going back up right and you know that just means that there just wasn't any buy buyers there there was very low liquidity there uh but then the buyers step in because you know they see a bargain or whatever and they think it's time to buy and that's kind of when the market reverses but after a kind of dump like this i think it takes a little while for us to head back up i mean you can see from other kind of dumps with the same magnitude if we look at even the the daily chart here right you can see you can see how bad this one is um you know i think the comparable one was kind of january it didn't take us too long to start going back up this is the

daily chart only took us a few days here i guess to get back to a word maybe about a week um but sometimes it can take longer than that right uh you know it is a bull market so who knows at this stage but maybe it only takes us a week to get back to where we were which is around 2000 um you know i'm still pretty bullish in general uh so we'll see what happens there but yeah i guess just uh hold on to what you've got and make sure you're not too over leveraged in these markets and i think you'll be fine so there's a bit of drama today with uh with crypto punks and and and binance the binance punk sorry uh so what ended up happening is that someone i guess uh cloned crypto punks like literally cloned them uh and put them on binance chain and

just called them binance punks and you know it was a direct copy there was no changes made it was just like being sold as something and it was a clear money grab i think they raised over three million dollars or something like that which is absolutely insane right for something that they just literally copy pasted over um and you know it's just scammy as hell and i don't want to kind of think talk about that too much what i do want to talk about is you know the copycats here because you have nfts and then you have anyone that can copy them right you can copy the images you can copy the code you can copy whatever and then people think well if it can just be copied then how is the original still valuable and i think this is a funny kind of line of thinking

because this was the same logic that was applied to forks of like bitcoin for example this used to be a very popular argument where people could say well you know bitcoin has 21 million you know coins that's its cap but you know bitcoin can be forked infinite amount of time so what gives bitcoin its actual value right what makes bitcoin continue going up in price what makes it unique and we all know you know a lot of the reasons why it's unique right you know a lot of it's got to do with the the community and the social contract around it you know the community's saying well no you know bitcoin is bitcoin you know these other forks aren't bitcoin and that's why bitcoin is valuable you know bitcoin has all these other special properties to it right um you know it's decentralization things like that

um and you know has all of the mind share essentially and stuff the the same kind of thing plays into i think you know nfts and specifically i guess crypto punks right you know binance punks just because it's a clone doesn't mean it's the same as crypto punks crypto punks as i've discussed before are the first nft right on on ethereum where there's a lot of culture around that there's a lot of social consensus around those being the crypto punctuality those are the ogs you know you owning a copycat is essentially owning like a bootleg or a rip-off like no one no one cares about that right like people want the original right no one values the bootlegs or the rip-offs normally unless it's a very good rip-off but obviously with with kind of blockchain technology we can tell if it's the original or not

uh because you can see on chain um but yeah and i actually think that the forks i guess you could call them of these nfts work to reinforce the value of the original um i don't know we haven't seen this play out yet and this is just the hypothesis that i have but i think it really does uh work to reinforce the value of the original because i saw everyone kind of calling out finance binance punk saying you know this is crap this is just this is a copy it doesn't make any sense you know why would this be valuable to money grab and then you know not only does that bring more awareness to crypto punks itself for those who haven't heard of it yet right it also kind of acts as a as a social signaling mechanism to say you know any copycats are just crap like

just you know this isn't uh this isn't something that we want to own this isn't something we're going to value and then the rest of the kind of ecosystem follows that they're like well you know if all these people are saying this is crap then you know and there's no community backing behind and it just looks like a scam then you know why it's not going to be worth anything right and this is what happened a lot with a lot of the bitcoin forks not that that was scams or anything but a lot of them didn't change anything right uh a lot of you know i guess like the two clear examples here of bitcoin forks that tried to be bitcoin is bitcoin cash and bitcoin sv right now bitcoin cash is a bit of a special case where they actually the community that actually forked off did

kind of like want something different to what bitcoin was giving them and that was bigger blocks you know they were probably misguided in what they wanted to do and obviously bitcoin cash is worth a lot less than it was relative to bitcoin bitcoin sv is a scam right run by a serial scammer who claims to be satoshi i'm just gonna you know straight up say that um so that there's that aspect to it as well and that's kind of where i guess the social contract comes into it and people being like you know bitcoins and and other people outside of the bitcoin ecosystem you know recognizing bitcoin as the thing and this this uh you know as the real kind of bitcoin so to speak right and not these other forks and stuff and the forks actually reinforce the fact that you know it's not just easy enough

to fork bitcoin and like call it bitcoin and then everyone will accept it as bitcoin so i think you know we'll probably see a similar thing play out in the nft space and this is just the first example of it i think so uh diversify uh so for those who don't know diversify is another i guess decentralized exchange that is using zk roll ups to scale their um their exchange and they're partnered with starkwear to do this so you've heard me speak about loopering a lot and about their zk rollup exchange but diversify is just as good uh as loopering and i think that they deserve more attention here but basically what they introduced today in in their um i guess uh solution was that you can send tokens to other diversified users

now kind of gas free right because the layer two and you can do this privately it will not be visible uh on publicly on the ethereum blockchain this is something that a lot of people miss about layer two is that when the layer twos are built right uh it's always private by default to uh and it means it doesn't publish kind of like your data on the ethereum blockchain i do think the l2 operators can maybe see what you're doing or at least kind of like see some of what you're doing but it doesn't get published to the main ethereum blockchain so you have like privacy within that ecosystem by default which i think is like a really undersold aspect of layer two not only do we get scalability but we get privacy because we don't really want privacy on ethereum's base layer right built into

the protocol and the major reason for this is because of inflation bugs now for those who don't know zcash has a um has a privacy built into it but it's not by default it's an opt-in privacy but that still prevents uh issue sorry presents issues as well because you don't know if an inflation bug has happened because of the fact that you can't verify the the supply um so if there's like an inflation bug where the supply is increased uh you won't actually be able to tell because of the fact that it's all private and that kind of like is very dangerous right and this is the main reason why we don't want privacy on on on layer 1 is because we want to be able to verify everything and verify everything's fine if there is a bug we

want to be able to to see it and revert it because there actually was an inflation bug on zcash and i don't think they've been able to work out if it was exploited or not at this stage so sometime in the future you know it could be revealed that it was exploited and there were funds in shielded addresses they called them the private addresses that um that were using this inflation bug to create more z cash and that could flood the market right i haven't kept up with that since that was announced maybe they did figure it out but normally that's the main risk there so that's why we want to push all the privacy stuff to layer two or you can do like privacy wrappers on layer one aztec protocol actually did this where they wrapped dye at other tokens in like a zk die so zero

knowledge die and then you could you couldn't see the amounts being transferred on chain you could only see like the to and from address uh so that was a really cool way to kind of obfuscate the the transfers happening there but generally privacy is going to be done at layer two and and layer one it might be done in a way with like kind of like zk technology as well cryptography on layer one but that's expensive so i think most of the time is going to be happening on layer two which is really cool so yeah kudos to diversify for this if you haven't used their exchange yet i highly recommend going and checking it out you know you've probably used lubricant because i've spoken about it so much but it diversifies just another option for you on layer two and there's more coming i mean i know i

talk about it all the time but there is more coming to layer two very very soon actually i spoke about how uh yesterday i spoke about optimism and how they're due for an update very soon in the next couple weeks according to their last blog post so i'm keeping an eye out for that uh and there's also actually i think i've got it up here i'll actually talk about this now there's a podcast that you should definitely listen to from bankless where they got um matt feinstein robbie ferguson and justin moses from loop ring and mutable and synthetics respectively to talk about layer two and why they chose layer two and a three and what they're building what the differences are between them it's a two hour long podcast i've only listened to about 45 minutes so far but it made me so bullish i was like i

was i was on a walk and i was just listening to it i'm like oh my god like and you know it was funny at the time the eighth price was crashing and i just completely forgot about the prices because i was like this stuff's awesome right these guys are really like trying to scale ethereum and you know loop rings live today synthetics is on test net immutable is building their decentralized nft exchange which is going to be live soon so yeah i mean i highly recommend going and listening to this podcast um because it'll just get you really amped about layer 2 and ethereum uh and it's it's it you know it's coming and it's here and it and and kind of like the rest of the kind of ecosystem is gonna get on layer two over the next few months and it's gonna be good

it's gonna be really awesome and you know as i guess ryan says here rip eighth killers i really do think that if layer 2 works as we want it to work which i believe it will i don't really get the value prop of these other kind of chains like most of them most of them at least right their main selling point is that they're more scalable they can do more transactions per second they have cheaper fees well when we have that on ethereum with layer 2 then what's the what's the point of these other things right if your main selling point is that you have cheaper fees and lower you know um you know more tps that's not going to mean anything and you know it's hilarious i was actually looking at some stats today um because of like all the binance chain drama and i was looking at ethereum

usage stats to see if they had gone down at all they had it right they're still trending up like the bsc has not put a dent in ethereum at all and this goes back to i guess my thesis about ethereum becoming this economic nexus where everything just feeds into it regardless of you know if people go off chain to do it it comes home to roost right people are sending their assets back into ethereum once they're done in the binance casino right so in in the bsc casino so you know this just feeds into that thesis and so do layer twos as well and everything else kind of around ethereum too so definitely go listen to this podcast because you know i i know i've sold it here um but it's very very bullish and i can't wait to listen to the rest of it uh tomorrow

so token tone will put out this interesting statistic uh on twitter i think this was actually from a couple of days ago now but they basically said the total value locked in d5 was 40 billion or 42 billion dollars uh i think it's three days ago and the total revenue being paid in d5 was 800 million dollars and uni swaps dominance is almost 50 of the fees being paid uh which is awesome i mean you can see it in the in the kind of charts here my head's probably blocking half of the picture here but i'll kind of walk through it um you can see you know since d5 summer the revenue of these protocols has gone up and i think it's important to to kind of like split out protocol revenue from lp revenue so for example on uni swap right now

all of the fees and all the revenue generated is going to liquidity providers right there's 0.3 percent fee charged on every single trade on uni swap and that's going to the providers of the liquidity whereas you know there are plans to switch on kind of like fee capture where 0.05 of that 0.3 percent would go to uni token holders right or like uni token stakers or whatever but that's not happening right now but but that is happening for some protocols like sushi swap for example has that right where they have fee capture you know yearn used to have that doesn't have that right now i don't think um comp uh well at least it doesn't have for token holders i don't think compound does i think i'm pretty sure ave does um and then these other ones i'm not entirely sure i i think most of them

don't yet and they will turn them on and there's one here that actually i don't think is listed is maker right uh maker is is generating a lot of physics like 50 million dollars annualized or something right now which is huge and that's going to buying and burning mkr tokens so which is really cool as well so yeah this is something to keep an eye on something i keep an eye on when i look at things that i want to kind of put my money into like if a protocol is generating i guess you know cash flows especially to token holders i kind of put the flaw on the token price right where you can kind of look at it and be like why are people selling this thing this thing gives them a ticket to generating kind of like revenue and to kind of like uh getting a dividend

essentially so why are people selling this and i think we've seen that play out with something like curve you know the crv token where curve is actually um making like a lot of money for its lps and for its crv token holders and people are like well why is you know why isn't crv like a steal here and it was like 60 or 70 cents and it's gone like three dollars now so and you know even though crv is still being paid out as part of a liquidity mining program which puts kind of cell pressure on the token there's still that demand there from people who want to get you know the fee capture essentially while kind of like putting their assets in there as well so that was really cool to see here so elluvium has uh announced that they're teaming up with immutable x uh i think they announced

this the other day but they've detailed it more here and as i just explained immutable x is going to be an ethereum l2 for nfts and alluvium is of course a new nft kind of like video game or gaming kind of thing on ethereum um and that's coming out soon i think it's coming out uh q3 2021 actually it's launching on immutable x and q3 2021 so that's going to be huge it seems like uh q3 is probably going to change the game for nfts and gaming because we do need a layer 2 solution for this right because i think nfts are one of those things that got completely priced out from layer one unfortunately um and i think immutable x is going to play a big part here in getting nfts back into kind of like the game you know no pun intended so

we're really looking forward to this if you haven't yet you should check out alluvium you know they've been teasing a lot of stuff that they've got going on they've got airdrops going on in their discord for their token as well so you definitely go check them out if you haven't yet so justin from nftx tweeted out this kind of teaser today that cross asset swaps are coming to the platform which means you can kind of like cross asset swap between different nfts so he's got an example here that you can go from you know one punk to another punk to one hash mask to another hash mask which i think is really cool so basically being able to you know get from like one nft to a completely different one routing through different kind of like other nfts and this is kind of what

happens with uni swap right where or at least other amms in general where you can kind of like buy something with eth and then it'll kind of like route through die or another stable coin to get to the token that you want if it needs to right and this is exactly what can happen with with um with nftx and and not yet they're kind of teasing it but i think you know this is just awesome right nftx is one of my favorite projects right now i am a holder of the token of course as i've mentioned before um but it's just awesome they're bringing liquidity to nfts which is which is solely needed i think they're going to actually like i just assume i haven't seen any announcements around this yet but i assume that they're going to basically team up with mutable x as well because it just like

seems like a very obvious um kind of thing to me but yeah i mean this is exciting nfts are really hot right now anything in that arena i'm just having so much fun with because d5 is fun right d5 is awesome but it's very like i guess speculative focused whereas nfts yes there's this element of speculation there but you don't necessarily have to kind of play in that arena you can just buy things that you want right and buy things that you like you can pay attention to things you can look at things you can get involved in the designer communities by art whatever you know talk to people about the different art and how it kind of like speaks to you and stuff like that right in the different video games so there is another side to it rather than speculation which i think is really

cool to be fair there is with defy as well because there's a lot of developments going on but i think with nfts it attracts a different kind of crowd and a different kind of person than what defy does and it's just kind of refreshing as well to see that so the index co-op released a new index today called the coin shares gold and crypto asset index uh with ticker cgi now what this index is it basically um it consists of eighth btc and gold so basically it will track that as part of this index and you know i think it's a pretty good way to get exposure to i guess like these three kind of the two crypto blue chips plus gold right because you know people still want gold right

people still like gold people still want to buy it and still want to hold it and this gives you basically tokenized exposure to it through coin shares and i should kind of like i guess like disclaimer here that um you know index cop i'm pretty close to i hold index tokens um you know it's part of like my advisor role at set um but in general like i just thought this was really cool this is the second index that the index cop has launched the first being the default pulse index of course and this is like completely different to the d5 pulse index because uh the the d5 plus index obviously has d5 tokens in it doesn't have btc ethan and gold or whatever so i thought this was really cool so if this is something you're interested in definitely go check it out if you

want kind of this exposure i feel like this portfolio in particular is definitely going to be really great over long periods of time i feel like that the presence of gold will dampen the volatility here and the presence of bkc and eth will will kind of like give you those nice returns because gold obviously doesn't go up too much compared to btc and eth um but it does help to dampen the volatility here so yeah definitely go check this one out so an announcement from immutable here that they've onboarded another kind of project called epics gg here which is uh they basically make i guess trading cards for uh pub g and cs go which are two of the most popular video games in the world uh they're going to be scaling with immutable x which is really really

awesome i i just i mean i really love immutable and immutable x and what they're trying to build here they have to listen to that podcast or at least parts of that podcast from bankless with um with robbie from from immutable there talking about it they care deeply about scaling ethereum right and making sure that they do it in a right way in a way that retains kind of decentralization and security properties at layer two and not just building some kind of like centralized thing where people can go and and do whatever not taking a shortcut essentially so their deep commitment to ethereum is what makes me the most bullish on on on them and their their team and you might know them from god's unchained fame or they've been building that video game for quite a while but i think they hit a

roadblock there because of the scaling kind of issues so that's why they needed to build immutable x as well but the fact that they didn't just pack up and go somewhere else i i love that i love when that happens i love when teams actually stick to ethereum and stick by the mission and believe in the mission so yeah really really bullish on them go check them out if you haven't yet i'm very much looking forward to seeing immutable x go live in q3 so alex here announced a new tool called mev transactions explorer so i've spoken about mav on the refill before for those who don't know what it stands for it stands for minor extractable value this basically means value that is extracted by either miners or by you know astute kind of like uh

blockchain i guess like observers or like people who build bots and what they do is they basically a lot of it is front running where they'll front run your transaction so for those who don't know what a front run transaction is say you're making a uni-swap trade right and you know you've made a unisub trade you've paid your fare you're waiting 15 seconds until it you know or whatever waiting one ethereum block until it confirms and then someone comes along and runs in front of you and submits the order and pays a higher fee than you and kind of gets that order before you do for purposes to make a profit so that essentially the front run you right um this is this plays into mev plays a big part into mev and as you can see here uh and mev is not necessarily i mean it's not it's not

really good it's kind of parasitic right because it's it's kind of stealing value from the ecosystem or at least taking value for where it should be preserved and you can see here that since january 1st 2020 which was i guess about a year ago now there's been 320 million dollars worth of mev that this tool has detected or their team at um flashbots have detected here which is quite a lot uh and it's it's accelerating you can see here it's going up a lot because the on chain defy activity is going up a lot so it only makes sense that it will track that uh and the daily extracted mev is going up you know actors are getting more sophisticated you can see here the mev split by protocol unishop's number one sushi swaps number two right and then by type there's arbitrage and

then um you know liquidation and and front running arbitrage kind of counts as front running here where you know the reason that front run used to arbitrage that kind of transaction and the uh mev by roll uh so you know mev can be done by as i said miners but it can it it's it's done mostly by non-miners at this stage but the reason why miners would do it and why they have an advantage is because they control the transaction ordering in ethereum blocks so i've spoke about this before but basically miners can control whatever order they want transactions to go into a block and they can also put transactions into a block that costs zero fees so they can just put their own transactions in you know put it first right put it at zero fees and front run the world and i expect them to do this

more and more into the future you know um you know it's only 12 now i expect this to grow i'm surprised it hasn't i'm surprised they're not doing more of it because they have all the advantage to do it here and extract even more value out of the ethereum ecosystem i mean they're already making a killing from i guess like mining uh the mining block award and the fees in general so maybe i don't know maybe they like the fees more than they're like moving the world but we'll have to see what happens there but this is a really cool dashboard i'm glad that we have it gives us something to keep an eye on and there are people working on ways to mitigate mev but it's a very hard problem it is something that i think some of the top minds in the space are working on

because it's a very fun problem to work on because it's so hard to crack uh there's some stuff going on about like uh mev at layer two how to kind of solve that how to fix it we'll have to see right i i have faith in the builders here i faith in the researchers and i'm excited to see how it plays out so speaking of miners uh tim biker put out uh update on one eip1559 today so uh he does these updates from time to time this is update number seven the trdr is basically uh i guess most of it focused on miners i mean there was some stuff about client updates and kind of like when we can expect the ip1559 uh and i know i've spoken about this before that i think we're gonna get it in july or august as part of the london

ethereum network upgrade but basically he go he went what i wanted to talk about was this part the mining update so obviously we know that miners uh some miners not all miners aren't a big fan of one five five nine because it represents a pay cut for them um and miners have proposed kind of several alternatives two one five five nine which would uh which uh here he's listed out here the first proposal being change one five five nine itself to remove the fee burn that's never gonna happen like i can already say that that's that's absolutely never gonna happen um no one in the community wants that to happen except miners right increasing the block reward to make up for the lost fees that's also not going to happen that miners are making enough money the network is secure enough we don't need to

increase in block reward to make up for for some loss of revenue here and changing the proof of work out of the algorithm to make it asic resistant again that's not going to happen because we already had this debate with prog power last year so i just these are just weird to me these kind of i don't i wouldn't call them demands but these like even just these requests it just doesn't make much sense to me at all for this to kind of like come up like these things are basically not going to happen i mean i i don't even know if miners think they're going to happen because this is just too obvious to me that um you know the community really wants the fee burn that's like a major part of one five five nine that people want right increasing the block award i mean no one

wants to do that no one wants to give more miners more money at this stage right and no one wants to increase the overall network inflation and no one wants prog power as we saw last time or at least no one most people don't right um and you know the funny thing about uh i guess um kind of like the the kind of like increasing and block reward here to make up for the lost fees i mean the price is still like really high and they're still making a lot of money off this so i just i just don't get it and overall the funny the even funnier thing is that you know i've gone through before on the refuel how miners are making threats now right they're threatening to kind of do a chain split or attack the chain if they don't get their way

and it's just so like weird like is this the way to negotiate right do you threaten people with all this like stuff that's basically empty threats to get your way it's like a child essentially kind of like doing these empty threats or you know someone just kind of like holding a gun to your head and threatening to to kind of pull the trigger but there's no ammo in the in the kind of gun right there's no bullets in the gun it's just it's so weird to me right and i've said on the refill before i don't hate miners but and not all miners are like this but there's a certain kind of like you know section of them that are just like going kamikaze on this and basically kind of just going like the complete wrong path here and i'm a firm believer in that the

miners really are just service providers and we shouldn't be negotiating with them at all i actually don't really like that they've been invited to this community call um you know they can have their say but at the same time i don't think we should be compromising for them i don't think that we should be you know if these are the things that they want then you know in reality none of this is going to happen so you know let them speak on the call i mean everyone should have a voice sure whatever but at the same time i think there's enough kind of proof out there that those three things aren't going to happen right and 1559 is going to go in and the game theory around kind of miners including one five five nine is pretty sound and it was actually a piece from from hasu and georgios uh that was

published yesterday um that goes over why they believe one five five nine is going to actually go in uh it's actually here it's in this post so i'll link this post in the youtube description you'll be able to check it out but basically yeah they go through like why they they kind of think it's going to go in one of them one of the reasons is because of the difficulty bomb right the net needs to be diffused and 1559 is going to be coupled with that uh then they kind of cover the case where the miners are going to launch their own fork which you know would require them to obviously convince everyone else to follow on their fork which isn't going to happen you know the top dapps in ethereum have already signaled their support for one five five nine you know the exchanges are going to

follow it i i think as well that's just a non-starter altogether and they also explore the idea of miners launching a fresh state fork um which would basically encounter issues regarding supply distribution as well and then finally they explore the scenario where miners stay on the one five five nine chain but decide to block its usage by not allowing blocks that raise the base fee which um hasu and georgios uh kind of argue here that this is just like not in their best interest to do they're just kind of shooting themselves in the foot um so you can read the analysis in full here but i mean that kind of like echoes a lot of my sentiment around these two and yeah i mean this is a really great update so i won't kind of go won't linger too much here but definitely go check it out if you

haven't yet last thing here is alpha finance and cream finance did a joint announcement about how they're going to be paying back that debt uh i remember i spoke about this on the refuel last week about how there was like 30 million or 34 million dollars worth of debt that um alpha finance owed the iron banking cream so what what's going to end up happening is that alpha's going to pay it back out of protocol fees they're not going to sell any alpha finance tokens to the market to pay it back or anything like that which is i think the better path here but they are actually going to put up 50 million alpha tokens which is worth about 50 million right now as um a bond with cream so to guarantee that they're going to pay back the uh the value so i thought that was a really good outcome

for both of the teams here i'm really kind of like impressed or at least proud that they went down this direction so yeah kudos to them for doing this but i won't linger too much on this one you can read the thread in the youtube description of course i think i've gone overtime for today so yeah that's it thank you everyone for listening and watching again if you haven't done so give that video a thumbs up subscribe to the youtube channel join the discord server subscribe to the newsletter and i'll catch you all tomorrow thanks everyone