The Daily Gwei Refuel #1

Transcript

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all right everyone looks like we're live so thank you for tuning in to the very first daily guay live stream so I'm calling these things the daily gay refuel basically what they're going to be is a show every day every weekday uh that covers the previous 24 hours in the ethereum and crypto ecosystems you know kind of everything that's happened uh biggest news things that are just really interesting to talk about uh the the content will go for about 20 to 30 minutes we'll start off with uh talking about the prices um uh like of the day like ethereum you know how defi is doing things like that just a couple minutes there for a market update then we'll move into the rest of the content so let's get into it so I actually put out

a tweet just before I was looking at the ethereum chart and I kind of scrolled you know zoomed out I guess you could say and I was like wow we were only at you know $470 just just 5 days ago it was quite crazy to think about that considering the the kind of run that we've seen in eth over the last few days uh up above 600 you know with all with all the hype that was around kind of eth to and and getting that deposit contract full full of eth uh so yeah it was it was cool to zoom out a b and you know you can obviously zoom out even further and just see that this has been just a a crazy run in November right we've we've gone from at the start of November in the the high 300s to to you know about 600 today

so obviously you know bitcoin's also been doing really well pretty close to alltime high right um but yeah I think you know ethereum has been doing extremely well and that's I guess what most of you would would care about uh finally defi defi obviously had like a pretty brutal uh you know few months where it was I guess like a month October where it was basically in a a mini bare market right and then it just had like a very strong bounce and he's still on the way up you know people might feel like defi in general is is kind of like uh you know in in a holding pattern and I think it is while Bitcoin and ethereum continue to go up but in general uh it's still been trending up right and this is the defi pulse index here

that I'm looking at and yeah the general trend is still up which is really really cool all right moving on from the prices so I think this was this came out about 24 hours ago now I think but this caused a bit of a stir in the community so what the tldr is that y or Y ear or wifi or whatever you want to call it uh announced that they're basically merging with pickle or kind of like absorbing pickle into into their ecosystem uh and the reason why this caused a bit of controversy is because the pickle Community I think from what I what I could see feels kind of hard done by um you know the the I guess not just about the price and everything like you can actually see what it did to the market

here right so obviously a few days ago pickle had an an exploit against the system there $20 million worth of user funds was lost and you can see the the dump here on the chart right and then go sideways for a bit and then you know I give you one guess what this candle is it's basically when uh the announcement came out that there was this kind of merge or acquisition happening uh so yeah that's what that candle is there and then yeah we've got some more sideways action here so yeah basically it's going to be you know Pickle's tvl is going to go into to yearn the pickle token basically becomes an inflation token for the for the Y ear uh kind of ecosystem which you know we I I don't think this is the first kind of like

merger we've seen of protocols but it's the first I think yield farming merger that we've seen because cuz there's actually a lot of these yield farming or yield AG aggregators popping up right we have Harvest we have pickle we have you know obviously won and then there's like Yaks and there's I think there's a few other smaller ones but you know it's kind of like this longtail effect where the the biggest ones are going to have the most tvl and then you're going to have a bunch of smaller ones and it doesn't actually make sense to have all these smaller ones around uh simply because you know the benefits is is pulling the capital together right so fragmenting the capital out into these you know hundreds potentially hundreds of volts is or like kind of like strategies is not only like a massive security risk but it's also inefficient

from a capital kind of efficiency perspective so I think this is actually a smart move by by y it like kills some of their competition right even though they didn't advertise it as this uh I I I I I really think it's it's smart for them to be absorbing these other kind of aggregators and just basically kill competition before it can Sprout up and this isn't something kind of a new concept or anything but it's definitely new uh with in like Def and crypto protocols in general I remember reading a piece actually a couple of years ago uh I think it was I can't remember who wrote it but was basically about like how would a protocol absorb another protocol right would would their token become you know the the other protocol's token and it was was kind of doing a thought experiment around layer one

blockchains I think that is kind of like not going to happen because there's no one really cares enough for that to happen but what I do think is going to happen is we're going to see more defi merges happen here so yeah uh you can go check out the the link to this uh in it's not in the ethb newsletter yet it'll be next week's but basically on Andre's Twitter feed you'll be able to find the link to this uh there was a thread put out by W of course uh you know um detailing everything here uh and there was actually a really good thread put out by this account autism Capital don't let the name fool you though this is actually one of my favorite followers on Twitter they do a lot of really good analysis here so you know they took a very Hardline stance here and they think

that uh the way pickle handled this was you know they use the word shamefully and and you know disgraceful basically uh they made comments about bant who is one of the the Y cord devs hanging around the the B the pickle server uh Discord server for a bit which which makes a lot of sense um and apparently there was some like plan to have like a pickle kind of Dow and like they're calling it a laugh or just like you know a misdirection or a fake out basically so this is just gives more details around I guess the inner workings of the pickle community and how they feel about this um and he you know they take this hard stance that Andre just came out of the basement to announce this merger right um you know this this post merger formula is basically a direct copy of

curve with their to economics and things like that um and yeah just in general they were speaking I guess on behalf of the community they had a few conspiracy thoughts around this and things like that um but yeah the the pickle Community is not happy I haven't personally been on the Discord but from the comments I've seen it's it's not a very very very pretty picture right now so yeah I mean this is always going to happen I think unless there's like a a mutual kind of thing where the two communities agreed to kind of merge I guess because you know if if the devs say okay well we're just going to merge our protocol into this competing protocol and the community doesn't have any say in it then obviously the community is going to feel hard done by but you know if I had to put my

conspiracy hat on I think this is exactly what won went for right it's like just killed the competition basically um and and and I think they've succeeded in that I I'm not sure what's going to happen with the pickle token going forward like is it going to you know go up because of w own is it going to go down it was interesting to see that that pickle actually you know pumped a lot but Wi-Fi didn't move at all so you know and because of that I actually figured like I saw it going up and I'm just like wow this is going to just go down so quickly because it's just like this this kind of like fomo and like whales kind of pumping it up based on this news and we've seen this play out with like other projects that Andre has launched and that um not just

him but like w I guess in general um have launched like keeper network is the same thing uh and it's very dangerous I think as well just you know putting this news out there with like no kind of Prior announcements no forewarning uh it's very dangerous for people speculating on these things so I would advise against you know buying into hype news like this or else you know you'll end up in this green candle here and you know maybe you're smart enough to end up at the top but a lot of people from my experience end up down here which obviously isn't very fun all right moving on from that so Tim boo who for those who don't know is actually the one kind of leading the coordination for EIP 1559 uh so I would actually call him the Danny Ryan of EIP 1559 so for those who

don't know Danny Ryan uh is the lead coordinator for the eth2 effort basically he makes sure everyone's like in sync and things are getting done and that's what Tim is doing for for 1559 and and everyone knows what what what 1559 is it's basically to fix the ethereum fee market and to introduce a burn mechanism for E so this is a really really important EIP or ethereum Improvement proposal that has been talked about for years at this point right um but yeah it's on a ethereum test net now you can actually go try it out yourself too so all you have to do is head here you know follow these follow this guide here and then you'll be able to kind of like check out uh how this works on a main net uh sorry on a test net and what's interesting is a559

is actually on other blockchains right now it's on filecoin and it's on cell so you know this stuff you know it's on I think this is maybe one of the first that times it's on an ethereum test net where you can play with it but it's actually on other main Nets too so it kind of validates that this thing is you know is is is is good it's going to do what we want it to do uh it battle tests it on other chains and things like that and that's what people are worried about it's like you know is it going to actually do what we want it to do is there going to be bugs you know things all those sorts of things so I think that's kind of like very important so I I definitely suggest going to check that out um and and playing around with

it next up we had looping uh announcing their Loop ring wallet so this has this has been in the works for quite a while I think um they had a kind of a beta version out there um but but basically you know this is using their ZK rollup technology to scale and things like that uh so you can go download this kind of now on Android I think iOS is coming soon uh and this kind of let you do like payments and things like that inside uh the loop ring wallet so you know obviously layer 2 has been really really hot on ethereum lately um we're not just with Loop but with like a bunch of other teams doing a bunch of other things uh synthetics is playing around with it you know it's rumored that unisoft V3 is going to go on layer 2 we have a bunch

of other teams you know we had arbitrum recently Fork Unis swap put it on their layer 2 call it Abby swap to show off their technology so this is just another kind of like app that's come out now um you know and that offers these uh basically scalability benefits that we're looking for with layer 2 Tech and loop rings are Stellar team I mean they have their exchange as well their their ZK rollup exchange which I've used which I love the app looks beautiful like you can see the picture right here it looks great right this is the kind of stuff that we need to get out there to get mainstream on board right we need to abstract away all these kind of like gas fees especially the expensive gas fees for users we need to make these interfaces really really nice and yeah I

I really like what Loop's done here today so definitely go go check that one out all right this this is actually pretty big news today out of coinbase so coinbase is actually going to be suspending all margin trading products starting tomorrow uh based on guidance from the cftc which is one of the biggest Financial Regulators in the US so this is actually made me really bullish on you know obviously defi margin trading products right like the more that these centralized products get shut down the the more you're going to have these defi products just gain traction for these things like so margin training products I actually fully expect to gain a lot more traction because of this now and it's kind of like you know I don't think Regulators are doing this but it's kind of like if

you imagine kind of Hydra and you chop off a head and then you know two more Sprout up sort of thing that's exactly what you do when you take down these centralized things or like block centralized kind of players from offering this people still want this product it's not like hey you know K doesn't have margin trading anymore oh well I just won't do margin trading anymore no that's that's not going to happen people are going to find other places to do it like whether that be an offshore centralized exchange or or any or another centralized provider or they're going to move to a decentralized provider which I think as time goes on more and more people will opt for simply because with the c with the centralized providers there's always that risk there right there's always that risk that it'll get shut down you know offshore

exchanges uh some of them are pretty dodgy so you don't want to trust your funds there so why not do it on defi well I mean the biggest reasons why you wouldn't do it right now with defi is scalability right uh it's been notoriously hard to do these sorts of products on ethereum because that the scaling is not there but as I just spoke about we have layer 2 going going online for a lot of products so I think we're going to get that scalability uh like very very soon for margin trading products and uh there's a few projects out there working on this sort of stuff uh and you know it's not just the I guess like regulatory front of things but like just doing things in defi obviously a lot of you kind of watching and listening to this will know what I

mean it just feels so much better right you have self- custody of your funds you can quickly move between different apps on ethereum right it's like a super highway for your Capital basically it's just it's a completely different experience and a lot of people that you know maybe just strictly trade on centralized exchanges are going to be forced into these decentralized ones uh decentralized products now and going to experience that and for I mean if they're anything like me once you experience a a decentralized product and and a self- sovereign kind of product where you own your own funds and you're able to to move really quickly on ethereum you don't want to go back to a centralized Exchange or a centralized Service uh you know I just use them as fat on ramps and fat off ramps these days uh and you know that's what I think

a lot of people will be pushed towards as time goes on so yeah looking forward to see to seeing that happening unfortunate for coinbase obviously here uh but that's the that's what you kind of like have to deal with when you're in the US right the US has some of the strictest Financial regulations in the world and you know a lot of jurisdictions actually follow them like here in Australia we actually follow a lot of what the US does For Better or Worse uh um the UK as well I'm sure right Canada all these kind of Western countries or quote unquote the five eyes right they will kind of do similar things so you know that's why I personally always keep like a pretty pretty Keen Eye on the US especially because they they do set the guidance for a lot of this stuff for the for for

the majority of the of the of the Western World which is where most of crypto is right now um you know uh but like on the other hand the Asian space uh of crypto seems to take a different approach yeah but I'm not too clued in there I think there's like a bit of a language barrier there still but yeah I uh it's going to be interesting to see that the the kind of West and East approaches to to crypto as we as we get more in the kind of mainstream Consciousness I think you know as we get going to this like another bull market that we have coming I think what's really going to be uh interesting to see is how The Regulators respond right because we're going to have a flood of retail coming in and then those Regulators are going to inevitably get

com get flooded with complaints from users who have lost money for one reason or another whether that was a bad investment or they used a product that kind of like um you know quote unquote maybe rug them like right or or kind of exit scam them or they're on a centralized exchange and uh they feel cheated or something you know there's there's any number of reasons and it just means that you know if enough it's like in in in a classroom if enough kids go crying to the teacher about something the teacher is going to react right uh whereas if it's just one kid the teacher is going to be like oh okay just you know relax okay but if it's 10 kids they have to do something it's the same with these Regulators if it's just one or two people going to them and complaining

they like oh well we don't have the resource we don't have the time who cares but if it's like you know thousands of people tens of thousands of people coming to the regulator and being like you know I'm getting screwed here then they're going to respond they have to it's like it's like their mandate to respond uh so I'm bit worried about that because I do know a lot of the new people coming in will will do that uh you know down here in Australia we we're commonly referred to as a nanny State because uh we we put in so many uh forms of regul because people just go complaining to the government right uh and and it's it's quite worrying for me particularly to see Regulators make more of these moves but I still I'm still hopeful that Regulators will will take a nice approach here and won't actually

kind of like um you know have a heavy-handed approach because if their mandate is to protect investors that I don't think taking a heavy-handed approach is actually going to protect any investors right it's just going to uh make people lose money because the market will just dump right and they'll be like fud and things like that so I I hope I hope they move slowly and carefully here all right last thing to talk about actually I should go to this tab so we are main net ready so obviously pretty much everyone listening to this would know that just yesterday we reached the minimum required amount of eth in the deposit contract to launch eth 2's Beacon chain on December 1st so and now uh today what ended up coming out was all the client teams put out their main

net ready clients so you have prabs with their with their prism client out now release one uh 1.0.0 main it ready you can go download that you have Sigma primes Lighthouse client main net ready you go download that same thing for for Nimbus as well and same thing for teu as well so four clients for you to choose from how do you choose the right client well that's what I wrote about today in the daily gay newsletter you can go check that out at the daily. substack give it to you now basically what I talked about was the most important you know kind of considerations you have to take into account when choosing a client so for me number one thing is don't

choose a client that everyone else is kind of choosing not based on the fact that the client is worse than the other ones or that the teams aren't great that are building these clients they all are they're all Superstar teams all the clients are really great I've seen like the benchmarks across them they're all they're all doing what they should be doing but in saying that there are some clients that have more mind shared than other s right so you know everyone's probably heard of prism from Prismatic Labs everyone's probably heard of Lighthouse from Sigma Prime you know less people have probably heard about Nimbus and less people have probably heard about teu and that's simply a marketing and brand awareness thing so what we're going to see happen and what we actually saw happen on the test Nets was that most people ran prabs as client

right PR the prism client now we don't want that to happen on Main net we would ideally right in a perfect world we would like to see maybe a 30% split between uh sorry 30% for prabs for prism 30% for Lighthouse and then a 20% for for Nimbus and teu now I don't think that's going to happen I think we're going to be more heavy on the prism and Lighthouse side of things just from from what I've observed in the past but the the newsletter was basically to encourage you to to go for a minority client so personally I'm going to be running the lighthouse client I do want to support my fellow Australian Sigma Prime they're they're up in Sydney um so I definitely want to support them there I've encouraged other people to run you know non- prism clients just because the default is going to be prism right and

you're going to have like all the especially the newer people and the quote unquote the noobs to staking they're going to go for the easiest kind of um client and prism is actually the easiest from what I've seen they also have like a really nice user interface so that's going to appeal to a lot of people so definitely want to keep that keep that in mind when you're picking a client now you might be wondering why does this even matter so I wrote about this I wrote about it here I won't go into it too much now but basically the multi Cent architecture is built into ethereum from its from day one basically it was you know eth1 is a multic client protocol uh you have gu you have uh parody which is now open ethereum you have nethermind and Basu those are the

main ones unfortunately as time went on we had you know what ended up happening with parody was that the team uh you know they're now focused on like polka dot and other endeavors that they're doing so they said we're not going to maintain parody anymore so what ended up happening was that nois took it over and you know renamed it open ethereum and they've been managing that which is a great client by the way I run open ethereum myself uh but gu ended up basically coming U making up for most of the of the network which is which is as again not saying gu is bad it's probably the best client because it's been around the longest it's it's the most battle tested it's got you know amazing efficiency improvements on it so you can sync it really fast and things like that but it's not great for Network Health

and I'll give you a perfect example the other day or a couple weeks ago we saw what happened with infura and gu right uh where G they did a I mean you guess you can call it like a like a stealth update right where they found a critical consensus issue in in gu and they and it was it didn't affect the other clients but affected affected G so they thought okay let's put this out there we don't want anyone exploiting it because it was very easy to exploit let's just put this out there in a normal kind of software release for GU and let's let people download it and then eventually we'll tell people about it right that was fine I mean fine it depends where you sit on the fence but that was that was what it was at the time right and what ended up

happening was that uh the the consensus bug or whatever it was I'm not that technical but whatever it was got got exploited by uh was actually the optimism team the ler 2 Team um and that triggered uh kind of like fork in the network now most people had already updated their clients so that they weren't on the old client that had the bug in it but in fura the you know the the the infrastructure provider that a lot of the ecosystem uses was on that old gu version they were on a version from December 2019 now you might be thinking oh that was a really old version why were they on such an old version well because get upgrading INF fur's infrastructure is not just a simple thing it's not like you know me or you and our home PC click a few buttons get an upgrade no they have to

consider a wide range of different things right because they're serving you know tens of thousands hundreds of thousands of users every single day so um because of and to go back to my point about why the multi client architecture is important is because imagine if uh none of the clients had upgraded for GU right and this this bug triggered gu would have been off the network it would have it would have fked off completely from the other clients and then we would have had like this big catastrophe where we'd have to basically use the social layer to get back into to consensus across all the clients so we dodged a bullet there but this is the perfect example of why we want multi clients um because actually back in now that I think about it back in 2016 there was a similar bug where um I think it was gu

or gu or parody one of the two went went down but because the other one was still you know running the network could go on so there was no network downtime there was no need for that social recovery so that was that was quite amazing to see uh you know if you if you look at that that that actually worked in practice so that's why we're you know we're Haring on about this E2 multi client architecture as well so long story short go pick a client if you're if you're you're going to be staking especially if you got you're going to be in the Genesis block it's too late to get in now unfortunately but if you did get in before the cut off go pick a client uh they're all they're all amazing uh you know as I said I've seen all the benchmarks and everything they're all

going to do what you want them to do uh and it's just up to you which one you which one you want to pick so go do go do some research uh maybe maybe you you want to try and run like more than one of them basically and see which one you like there's I think there's still some test Nets around that you can connect to or you can just watch some videos of people setting it up and things like that because it is important right you want to pick a client that's uh you know that that that's uh that's going to do the job it's not going to you know get you penalized or anything or lose your eth or anything like that because that's a real possibility but I don't think any of these clients are going to do that I think they've been tested for for months

and years at this point and battle hardened by some really amazing protocol kind of um engineers and client implementers so definitely go check that out all right that's all I've got to talk about today everyone thank you for tuning in to the first delue refu we'll be back tomorrow at the same time and and we'll be talking about everything that happens tomorrow