Meitu buys more ETH, the state of Aave and more - The Daily Gwei Refuel #80 - 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 18th of march 2021 all right everyone let's get into it so just a quick shout out here i know i've been going on about git coin grants a lot lately but i did uh forget to mention that you should definitely donate to uh the bankless fr and mediversal fr and the daily guy fr get clean grant uh now what this is is basically uh there's a um there's a team that translates uh the bankless mediversal and daily grain newsletters into french and they do this all for free um all on a volunteer basis so definitely uh go support them and and kind of like donate to them on get coin here

and you can just easily do that by obviously the same way you you normally kind of donate to them and you know it works a support that works to support their translation uh for for people in the in the in the french community right the future of france so to speak right it's part of the meme um but yeah definitely go go go donate to them if you haven't yet so frank chaparro from the block put out a tweet uh i guess this came out like shortly after i recorded yesterday's refuel but basically he said the morgan stanley um has alerted its uh legion of 16 000 wealth advisors that it will offer accredited clients access to bitcoin related funds source at the bank says it could offer access to at least one fund by

nydig or galaxy digital um this is this is pretty pretty bullish right i mean you know it's not just going to be bitcoin only i'm sure they're going to get access to other kind of crypto assets here but the fact that we're seeing this kind of like really rapid institute institutionalized of of um this asset class right where you know just a year ago i guess um maybe a bit over a year ago like there was no companies that really had bitcoin on their balance sheets or anything like that in any big way and then obviously michael saylor from microstrategy kicked it off uh and you know everyone started doing it right we had tesla do it we had square door there's a bunch of other companies that have done it and now we're seeing it happen with as well which i'll go into in a sec but

basically you know this is i mean you might think well you know why do these wealth advisors kind of need um to be told that you know to invest in you know in bitcoin and crypto in general and this is like a world that not many people kind of get exposure to and it's a very regulated world it's not like these kind of like wealth advisors can go out and tell their clients or you should buy this this asset class you should buy crypto assets um because obviously they're incredibly risky right uh they go down and up you know really really fast um so you know they can't just go and tell their clients this and and you need to take into account risk because they're very heavily regulated so this is kind of like i guess morgan stanley saying you know we think that

bitcoin is um you know he's here to stay right is long-term investable has you know i guess um you know potential to go to go up a lot more from here uh and you know you you can kind of like start i guess offering this to your accredited clients uh and offering these funds to your accredited clients so very very bullish there uh from from morgan stanley obviously you know a lot of crypto is based on kind of replacing the banks and and things like that but i think we replaced them from the inside right i don't think we we will get to a point where like these banks aren't going to buy bitcoin before it takes over the world if if that's what happens right you know if btc becomes like this you know incredible reserve asset that's worth more than you know nation states currencies which you know

that's up for debate but generally uh you know um the banks aren't just going to like sit on the sidelines and watch that happen they're going to get a piece of that and kind of ride that wave up and that doesn't mean that the banks are going to necessarily you know have more power because of this i think it's just prudent for them to to do this right as an as an investment same with like i guess ethereum working within d5 i mean we're a long way away from a kind of like mainstream bank integrating a default protocol right i think yeah we're definitely a long way away from that but i don't see it being something that doesn't happen i i definitely see it happening um at one point in the future i could see uh you know morgan stanley or jp morgan or

whatever um or any kind of like bank basically offering their clients and saying to them hey you know you can get x percent on your stable coin right and then you know the way they generate that yield is that they use it in d5 sort of thing so yeah definitely interested in uh in in kind of like seeing that play out and seeing kind of i guess uh what happens over the next few years because it's going to be a wild ride i mean this is just the beginning of the institutionalization of of this asset class which is really really positive to see um and as i was saying there are institutions and public companies now buying ethan i spoke about this company my two uh i guess maybe a week ago a couple weeks ago they they bought eth back then as well but it was announced

yesterday that they they bought more eth and btc and and um they actually bought more eighth than btc again so they ended up buying another 28.4 million dollars of eth and 21.6 million dollars of of bitcoin here so really really bullish i mean i can't wait to see the next company do this right i mean you know it's great to see that this company's doubled down they've bought more eth and everything like that but i really want to see um you know more and more companies jump on board because it's like what happened with uh michael sailor with with uh micro strategy right he was the first one and you know there always needs to be that first one to get the party going and then the second one joined in and the third and then it gets quicker and quicker right but it does take a bit

of a time before the first one goes for the second one to join in and it obviously takes a lot longer for like the first uh one to kind of like join in so yeah i'm curious to see if over the next few months we do see more institutions buying eight public companies putting it on their balance sheets i definitely think we will and i wrote about this in the daily grain newsletter today i mean it's just an obvious kind of bet for me it's like there's there's more of a chance that that will happen then won't happen sort of thing so if you have to put like a percentage chance on you know i guess more public companies buying eth i would say it's up in like 90 plus percent chance so you know your upside there is is is pretty good and you know i think

just from a general kind of perspective right now with what he's doing i know a lot of us are a bit disappointed right now because he's just sticking around like the 1700 1800 mark and you know btc set a fresh all-time high the other day and it seems to just be not not doing much right now and i mean again not investment advice here but i i do think you know eth likes to do these things where it goes sideways for a while and then like kind of teleport up as i like to call it i mean i call ether teleport coin where it doesn't do anything for a while go sideways and then it'll move like two or three x up in like a few weeks right um which is always funny i mean you can go on the chart and it kind of plays out

like that we saw it recently play out like that in in january right or in the end of december kind of like throughout january and you know i don't know why it happens like that i mean it's a bit weird that you know it sits idle for so long and suddenly it kind of explodes up and um you know i don't know how generally how sustainable that is because how much of that is just like traders kind of catch a pump how much of it is like actual buying activity uh i do know that a lot a lot of people are still loading up on ethan buying here you know i'm still buying eighth of course so there is buying pressure there but i think eth is moving into this phase now where you know it needs these kind of bigger buyers to push it higher

because it's such a large market cap it needs what bitcoin kind of had because microstrategy started buying bitcoin when it was at around the same market cap as ethno or maybe even less right um so that kind of money is what's needed to push push each further here and i think we're going to get there i definitely think we're going to get there um and over the next few months at least and yeah i'm still obviously very positive for for ethan eats price i know it can be frustrating watching it do kind of nothing and watching absolute crap kind of pump up as well i mean that's i mean i feel it i i feel it for sure um and and i kind of like feel it with uh i guess like the quote-unquote competition that ethereum has now and people saying oh we're investing in

ethereum killers because it's like a hedge against ethereum failing i mean i think this is all just short-term noise i do think that um it's gonna move eventually um and ethereum especially with layer two is gonna is gonna take back the narrative uh from you know ethereum can't scale too well you know ethereum can scale but we're so early on this stuff it's very hard to pick winners very hard to know what's going to happen i mean i truly believe ethereum has already won you know in terms of like the most market share for a for a smart contract chain and i do believe one day ethereum can flip bitcoin in market cap but you know that might not happen for a while but i do believe it um but in general there's a lot of people coming into the ecosystem a lot of newer people

that aren't buying btc or eth right they're buying like cardano or polka dot or avalanche or whatever right because you know they're new you know i mean i'm sure when we were all new you know i when i was new i was falling for like all of this kind of stuff and thinking you know this chain can do this and this chain can do that and blah blah and then during a bear market you know i kind of was like okay well all these chains kind of do nothing and ethereum is where the innovation is happening so you know i i think it's just it can be hard during a bull market for sure and i i remember putting a tweet out in like august of last year where i said to people basically with the coming bull market you need to come to peace with that you

the the fact that you're not going to be able to catch most of the pumps that happen um and i i put out a thread the other day discussing kind of like how i think about investing in this space and really you just have to have a long-term outlook i mean i'm talking like five plus years you can't just say i'm gonna put money in this and in six months i'm gonna pull it out sort of thing it's not long enough you know eth can sit flat for i mean it sat flat for like two years in uh in the bear market right and then now it's at like 18 x what it bottomed out in the in the bear market so you you can't really have and and you know if you invested at the bottom or like around the bottom at like 100 150 at the end of 2018

right you you know you saw some really nice gains but over like two to three years and you know if you want to keep writing the current bull market is probably going to extend into into kind of like later this year maybe even next year um so from that point of view uh you know you you did very well but you obviously waited for and you waited patiently for it like like a lot of us did uh so yeah i always take the long term outlook i always try not to kind of you know i do look at coin gecko and look at these random things pumping just think to myself you know obviously retail investors are here because this is why this stuff's pumping but you know when is this going to kind of flow back into the fundamentals you know you know and do i believe it will and i

do believe over time it flows back right a lot of it's also traders chasing momentum you know in in kind of like the markets momentum counts for everything so if you see something that has a lot of momentum behind it you're not going to fight that as a trader like good traders at least um you're going to just join in on that wave and then it becomes like a self-fulfilling thing right where the momentum builds and builds and builds but eventually that that stops like the music stops there the momentum runs out because you run out of kind of like this fresh money pouring in which is really what's pushing it up because the traders all get in like you know ideally they're getting way earlier um because they notice the momentum first but then they want to take profits too right and then the more people that take

profits and the less money coming in it kind of like you know there's more sellers than buyers right that's all it is at the end of the day and you know during a bull cycle a lot of people don't take profits to to cash and keep it there they tend to redeploy and they tend to redeploy to things that haven't moved yet so that's why you do see these kind of teleportations i like to call them from eth and sometimes bitcoin as well um after you know these other coins kind of pump up a bit because people are taking profits into those things and i think that's fine um but it's just it's hard to tell in a bull market because there's so many new people and doing fundamental research and investment can pay off but you know you just got to deal with the fact that

someone can throw a bunch of money at something that you think is total crap and it can pump just because of the fact that you know a lot of other people threw money into it too and for whatever reason so yeah just a bit of i mean not investment advice just a bit of kind of like i guess uh color there for for for the way the market is right now um and because i've had people message me and be like you know what's going on with ether it's a stable coin i'm like go look at the eth chart go look at what eth likes to do it loves to be a stable coin for a while and then just explode up so each to me is always going to be a long-term investment right a very long-term investment i ideally don't want to sell any of my eth

um yeah you know because i want to be able to just do things with it whether that be staking or you know using his collateral to do whatever um i know a lot of people like me as well uh and on top of that i have a bunch of other investments as well that are definitely long term and productive because they're in d5 so yeah definitely something to to to keep in mind so stanley put out this thread standing from rv i should say sorry put out this thread today uh basically describing the state of the rb pro ave protocol in numbers so total flash load volume is the first kind of um statistic here old metric and that's almost four billion dollars of flash loan volume that's crazy because these flash loads actually have fees attached to them which gets paid to

the rba protocol which gets paid out to alves taker so that's really really cool to see and he's got a bunch of different kind of metrics here i mean the last 30 days the flashlight volume has been 260 million dollars which is which is pretty crazy 36 billion dollars of deposit uh of deposit volume uh through the rba protocol with no liquidity mining i always like telling people this when they look at rv and be like you know um it's it they've grown so much like what did they do did they do liquidity mining i'm like no they never did it they never did liquidity mining maybe they'll do it in the future but up until this point they haven't and they've grown you know so well i mean obvio's one of my favorite protocols on ethereum just because of the fact that they built such a good product that they

didn't need liquidity mining for that's when you know the product is good right when people are using it not to earn some token rewards or to yield farm but actually using it because they they value it kind of beyond that there's a bunch of other metrics here like the new users so there's been over 5 000 new users in the last 30 days which is really interesting to me because we think defy is so big but it's so small i mean i saw a stat the other day that only like three percent of ethereum addresses have actually used defy or like interacted with a d5 contract what what what do you mean you're telling me that 97 of ethereum addresses like kind of like i don't know if they're active addresses but in general you're just telling that 97 of ethereum addresses haven't

interacted with uni swap right like that's just bizarre to me um so that's just telling me that there's a lot of people who'd maybe just buy eth or buy some tokens withdraw it to their own wallet or create a wallet on an exchange um and basically don't do anything with it don't go into defile and whatever so that to me is incredibly bullish the fact that we still have so many more users to to kind of like tap into and um you know i'm actually going to go over this on the data pump video for next month where i kind of look at the metrics and kind of map all this together because i think it's really interesting uh but yeah i mean go check out this full thread from stani it's got all the all the metrics um in it and uh you know

you can kind of have a look for yourself so dan finlay from metamask quote tweeted this tweet from light clients where he was describing basically uh how ethereum wallets are going to be getting a significant upgrade soon or maybe getting a significant upgrade soon and the proposed change means that externally owned accounts or eoas which basically refer to just ethereum wallets um so actually maybe i should just clarify that so externally owned accounts or eoas are ethereum wallets that you and i use like our metamask wallet or whatever whereas the other type of account is called smart contract right which is obviously smart contract accounts um so yeah this is this whether you see eoa or externally owned account it just refers to a normal ethereum address

but basically this proposed change will bring um we'll immediately be able to send uh uh batch transactions expiring transactions unordered transactions and more now why this is kind of significant here and as dan points out um this could make ethereum dramatically more usable because as soon as this july so this may go into the london hard fork with eip1559 we could have gas subsidized transactions for all accounts and contracts uh and more so basically you could have um uh maybe like an app or a protocol subsidize gas uh the gas cost for their users right up to a certain amount trustlessly and program programmatically um so yeah i mean that's that's really really awesome right that's a huge

usability upgrade erp 1559 in general is a huge usability upgrade i can't wait i honestly can't wait because i've been doing so many transactions over the past few days and like i'm just so annoyed by the fact that i always have to speed up a transaction because i put in you know a transaction and then the gas fees get ahead of me and um you know i have to pay basically bump up my my way to get my transaction in in a kind of timely manner because i'm i'm actually generally impatient with my transactions i probably overpay way too much and that's what erp 1559 aims to address one of the core things it aims to address is and it will address is that people are overpaying because of that and also it basically most of the time almost all of the time guarantees that

your transaction will get into the next block um you know the first time you do it you don't have to speed up transactions you know nearly as often anymore and you won't be overpaying for fees which is awesome right that's i mean i love the fact that 1559 is known for its fee burn right of eth but again that's to me the probably one of the least interesting things about it i think the most interesting thing is that we're actually going to have a usable ethereum fee market now on layer one um and i've discussed the other benefits before about it basically acting as like an on-chain gas oracle for smart contracts and things like that and and you know i don't know how much it helps with mev but there is some stuff going on there too so you know this you know other

usability upgrade here would be would be very welcomed with with one five five nine for sure so it connects actually there's two things about connection i don't think i've got i got it up here so connex actually rebranded recently um i mean they're still called connects but they've got a new look they've got a new website which you can go check out at connects.network uh new logo and everything like that which i think is really really cool but basically uh the other tweet that i was referencing is that uh you know i spoke about connects and how they're doing basically fast uh you know trustless non-custodial l2 to l2 transactions and l1 to l2 and cross chain and all that sort of stuff and they're they're currently integrated with um you know a bunch of different solutions like arbitram and matic and x-die

and in in this kind of um i guess screenshot what they're showing here is that you can do uh ammatic to x-dire interoperability via connext and that's available on on kind of mainnet here uh which i think is really really cool so i mean i've said it so many times that ethereum is this economic nexus that sits in the middle of all these different things right ethereum in the middle layer twos as spokes side chains of spokes centralized exchanges are spread anything feeding into ethereum as spokes but then we need to connect all those kind of things together right they're basically existing there but there's you know they have bridges but these bridges are generally centralized so what we need to do is we need non-custodial trustless bridges that can be used not just for bridging

assets across but also for swaps between these sorts of things and and and and like kind of fast withdrawals and fast kind of l2 to altitude to communication and that's what connects does so connects is basically the bridges between all these things um which i'm incredibly bullish on and you know as i said they are they're already live on main net they're working with all the top kind of l2 teams as far as i know and also the other chains like uh xdi and matic and things like that and you know it'll all just feed back into ethereum right you just bridge over you know do what you need to do you bridge back you know i just see this as really really additive and i actually want to put together some thoughts about i guess where the future is going right now and what the cross

chain world is going to look like because obviously we're we're kind of going into this territory where there's going to be multiple chains i i do think ethereum is going to be the chain that dominates still for for you know for the foreseeable future probably forever i mean i don't see any reason to be bearish on that and i actually consider like l2 to be as you know it's not a separate chain because l2 is secured by ethereum but like that's part of the multi-chain universe right where ethereum is communicating with l2s ethereum is communicating you know via via bridges with other chains like matic and x-die and ethereum has been communicating with centralized exchanges and services for for a while right all that sort of stuff so yeah and that's and connects helping with this especially the cross l2 communication

for k'nex is what i'm most bullish on because people were very concerned about i guess composability right where they're like and i spoke about this in length yesterday so i won't rehash what i what i said but essentially like composability breaking on layer twos is a major concern and k'nex is coming up with you know ways to kind of alleviate that concern or at least remedy it as much as possible so very very bullish on this team very very bullish on what they're delivering and i i kind of like can't wait to see you know more of the solutions the l2 solutions and stuff integrate with connects so i mean on the note of layer 2 i put out a tweet today saying if theorem layer 2 is here it's just not evenly distributed yet now what i mean by this is that we we have a lot of layer twos live

today right we have loop ring we have zk sync uh we have uh it connects i guess there's a form of it right um we have uh i guess like side chains that checkpoint to ethereum or like plasma chains like matic and things like that so we have all these l2s and there's more that i'm that i'm kind of forgetting to mention but my point is is that they they're not evenly distributed right we don't have a lot of the apps that we need on l2 yet it's very limited i mean loop rings doing amazing work don't get me wrong but loopering isn't uni swap unfortunately right uni swap has 60 of the dex volume unisop is not on l2 yet right compound is not on l2 rv is not an l2 maker is not an l2 right so from that perspective we have l2s and

there's more coming with optimism arbitrary immutable x all this good stuff right but the distribution is very very uneven right now it is very i mean i wouldn't call it fragmented but it is very like unadopted i guess at this stage and we're going to get to that stage where it gets you know adoption i'm expecting fireworks when optimism releases right especially from uni swap with v3 and things like that i'm expecting some big stuff there but again it's going to take some time to adopt this sort of stuff it's not going to happen overnight but i do think that you know i actually do think that the binance smart chain kind of activity is really bullish for ethereum l2s because what it shows is it shows there's some incredible demand for cheap transactions which is obvious right but it's good to have proof of

this um now i've mentioned before how i believe that a lot of kind of i guess transactions and volume and stuff is fake on bsc and i still think like uh maybe a lot of it is uh but at the same time i do know that there's real users going over there real people using it because they're just priced out of ethereum and that's fine but i do think that a lot of that usage is going to flow back to ethereum especially on layer 2 once we actually get those layer 2s out there and offer that same experience because it's the same thing you still use metamask you still use your same ethereum address right it's the same kind of experience but secured by ethereum and and using technology and apps that haven't just been copycat forked like what exists on on bsc so i do think that

users are going to get a ton of value out of layer 2 here and they're going to see a more even kind of distribution form in the next few months so obviously you know i'm got i don't know if you could find someone who's looking forward to layer 2 as much as i am at this point i know we're all looking forward to it as part of the ethereum community but i mean as someone who has been beating this drum for so long now as someone who has to basically answer so many questions around this every single day and i try my best to answer all of them i get so many dms all the time and i i try my best not to ignore them especially if they're genuine questions because you know a lot of this stuff is confusing for people right i mean

you know imagine being new to the ecosystem and just discovering what ethereum is and then you know your first experience is running into the high fees and then you go into like something like bsc and you have cheap fees you don't know the difference right you don't know that bse is centralized you just know that you can use your metamask wallet you can use your ethereum address and you can do cheap transactions and still do what you do on ethereum uh or like similar things to what you do on ethereum so from that perspective you know education is is critically important here um and on that front actually i went on d5 dad's kind of yield tv show today to talk about layer twos and on there i made a point to talk about the different trade-offs between kind of like layer twos and and these things called side chains and

other block chains and how a lot of them are very not decentralized right and i had this analogy that i came up with while on the on the kind of video here where i said that being in ethereum and using ethereum and is like basically being in the castle walls right um there's this you can imagine like this massive castle and you have these fortified walls and you have this massive army kind of protecting you you know from it from the outside kind of world here um and that's kind of ethereum right that is the security guarantees you get with ethereum and also the decentralization guarantees on top of that now imagine you open the the gates right you you you kind of like put the drawbridge down and you you kind of like exit the the city right you exit the city walls you exit your fortress

and you go out into the world where you have minimal protection right there's not really anyone kind of protecting you you may have like a personal guard or something like that if you're an important person but generally it's like much less secure right this is what things like bsc are right you are leaving the fortified walls of ethereum to live or at least travel around in in a much more dangerous arena right so from that perspective as well i mean by living in the fortress living in like the the the main city it's more expensive right that's why ethereum is more expensive um but these other things aren't and kind of like layer twos are kind of like a cheat code here where you can still get the the kind of security of that fortress that is ethereum but

you get much more scalability and much much much cheaper transactions and i'm talking like 1 100th of the cost sort of thing one one thousandth of the cost depending on the transaction types uh so from that point of view i think that's what users should be aware of is that you are fully protected when you are um in ethereum um from you know you have like the strongest security guarantees the strongest decentralization guarantees and censorship resistance but as soon as you leave as soon as you bridge across to another platform that is centralized or not as decentralized as ethereum you're giving up that security and that's what i try to hit home in this video but i suggest you go read this we spoke for almost an hour and a half here it was a really great kind of um stream

uh defy dad's great i mean i kind of we got to talking the other day about this and he's like dude you need to kind of teach me about l2 because i watch one of your refuel videos and you and you know your i'm like yeah let's do it please i need to educate more people about l2 so that's why we kind of did this so definitely go check it out it was a great uh i think it was a great kind of um great video here so lemboshi put out this really interesting kind of like meme today um called yeah i mean he basically says is ultrasound money and he has a picture of the eighth logo in a womb essentially um which is which is pretty funny because that's the first thing i think of when i think of ultrasound as well but

anyway this is something that uh justin drake has been uh the ethereum foundation researcher justin drake has been meaning for a while and you know the bankless guys david hoffman and ryan sean adams have picked up on this i've been trying to meme it some more as well but yeah it originally came from justin drake and the reason why he called eat ultrasound money is because potentially one day it is going to be uh deflationary right whereas bitcoin is capped supply um and you know people refer to it as sound money eth is deflationary supply um and that makes it ultrasound money uh which is i think a really great meme um and the reason why eth can potentially be deflationary supply one day is uh because of the way its monetary policy is going to work once the merger

happens so right now if issued each year is about four percent so we're issuing about four percent new eth uh each year to pay proof of work uh sorry to pay miners for for the proof of work that they're doing um and on top of that we have uh i guess like eth2 as well right now paying out a little bit to stake is which is like 0.3 percent so it's kind of negligible there but once the merger happens right we're going to be paying most likely maybe you know 0.5 between 0.5 percent and 1 uh per year in perpetuity for issuance for securing the beacon chain just the stake is right we get rid of work there's no more four percent issuance it's you know um zero point five percent to one percent now on top of that

we're going to have eip1559 which is obviously coming with a fee burn so if we get to a point where there's enough activity on the network where more fees are being burned than eth being issued each year that means eighth becomes net deflationary and eth becomes this ultrasound money that justin and a lot of other people in the community now love to meme about so that's the explanation of of the meme and i think it's very powerful because i mean for a few reasons it plays on bitcoin calling themselves like sound money right or bitcoin is calling bitcoin sound money and it kind of like takes that and improves upon it and it's not just like something that is in the distant future or is something that's theoretical it's actually something that can happen in practice and

it's funny because the amount of fees already being paid on ethereum l1 would already burn more eight that's being issued under proof of work so we already like on some days not on all days but on some days so we're already there so you can imagine in the future where ethereum is much more used there's much more fees being paid on l1 especially by you know different layer 2 securing themselves on l1 that just becomes like a lot of eth being burned and we can get to net deflationary kind of supply there so yeah really really cool meme here i know that um bankless has a podcast coming out again with justin drake i think today so definitely keep an eye out for that because um he um he basically describes this you know in much more detail

and you know um i think it's uh i mean david hoffman hyped it up to me pretty pretty much so i think it's going to be it's going to be really cool so fractional announced themselves ourselves today on twitter so what fractional is it's a decentralized fractional ownership protocol basically a protocol that takes nfts and turns them into you know pieces or fractionalizes them so you can see here you know there's a there's a kind of like example of an original nft being like an ape crypto punk and what fractional does is it splits this original nft into 100 different erc20 tokens and you can own a piece of of this art instead of owning just the the ape itself um this is interesting i mean i think it's definitely a use case

that that will find kind of like a product market fit but in general i mean i wonder what happens in the long term you know what happens if you split this nft up into um into pieces right and then the one of these pieces goes missing right or someone loses the private key to them that means this original nft can never be reconstructed with all those pieces again so it's actually missing one of its kind of one of its pieces here um as far as i know that that's how it works maybe maybe it doesn't work like that maybe there's a way to kind of reclaim that i don't i don't know that would be a centralization vector maybe um but still it's very interesting to do fractional ownership here uh but i do you know i definitely do worry about the long-term implications

of that but i mean there's not too much info here in the in the kind of blog post uh i think that you know they're just you know obviously announcing themselves coming out of stealth but they're going to be doing more stuff here so definitely go check this out if you haven't already so the index co-op introduced their flexible leverage index today which is created by default pulse now the flexible leverage index is it has a token ticker called fli or fly so you can i'm going to be referring to it as fly so what this is it's basically a i guess a kind of like on chain i guess fun you could call it that allows you to have the safest safest safest easiest and most cost-effective way

to basically get leverage exposure so what it does is it's basically um i mean i guess like this is how it works so basically it takes an underlying asset being eth it kind of leverages that eth up and it kind of um you know uses compound to do that and maintains like a maximum leverage ratio and a minimum leverage ratio and then kind of like manages that position for you so you don't have to worry about getting um liquidated or anything like that on your you don't have to be worrying about managing your position making sure that your liquidation price isn't isn't kind of like too low or too high um or anything like that um so that you know you don't lose money from from from that sort of thing happening there so yeah this is really cool this is like the third or fourth index

launched by the index co-op at this point and i mean disclosure here i'm an adviser to the set protocol who who run the index or not run the index call but are very heavily involved in the index co-op and our own index tokens as well uh but yeah i mean i thought i just thought this was really cool this is something that the team has been working on for quite a while now um i think it's very good for people who want to leverage their assets but don't want the the risk right and we've seen similar products come from from yearn before i mean the eighth vault the y eth volts back in the day was extremely popular and they recently relaunched that too this is kind of like the same or i guess like a similar concept here but you know managed by default polls built

on set protocols infrastructure and kind of like uh under the index co-op umbrella as well so yeah definitely go read this if you if you want to get a better understanding of everything that's going on kind of under the hood as well and the methodology behind it and kind of like how it works and how to buy unfortunately uh through the front end on token sets this is blocked to not uh to um us residents but because this is d5 that doesn't matter too much because you can go on uni swap and basically um you know on unisop you can trade for the the fly token anyway without having to um you know there's no kyc or anything but you know it's kind of like a geofence here but the token says website still just uses units off in the background anyway so yeah that and there is actually a supply

cap on um on the fly right now i can't i don't know how high it is i think it's like 50k units i don't know what that is in dollars i think the price is 100 so 50k it's like a 5 million i think yeah yeah i think i'm doing my math right there so yeah but uh i think there's still room here so definitely go check this out if this is something you're interested in and go read this blog post for more details on that all right that's it for today everyone thank you again for listening and watching be sure to subscribe to the channel give that video a thumbs up join the discord channel subscribe to the newsletter and i'll catch you all tomorrow thanks everyone