Polygon Avail announced, Compound Treasury & more - The Daily Gwei Refuel #153 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 29th of june 2021 all right everyone uh let's get into it so actually before we get into it just wanted to give a quick shout out here that i did another bull case for ethereum episode the second episode on bankless i was joined by uh cyrus unissi and dc investor here with hosts david hoffman and ryan sean adams of course now some of you may remember that uh eric connor was part of the uh bookcase for ethereum number one he was i guess like hot swapped for cyrus in this episode uh so it's good to get a different perspective here from cyrus but the episode i mean the first episode we did was that was when

eth was 650 now obviously there's a lot higher than what that what it was back then so we did this second episode uh i think this was kind of uh recorded after the kind of crash happened yeah i believe it was um we're in like the low 2000s or something so i guess it was good to take stock of what had happened since december which is the last time we did the uh one of these bull case episodes and kind of project out what we all thought was going to happen over the next you know a few months and kind of even coming years so if you're interested in that definitely go check it out it's free to listen to on bank list and the link will be in the youtube description below all right so only three days left to get your git coin grants contributions in

so if you haven't done so yet you haven't donated to all of your favorite projects just yet do so do it asap because you've only got three days left for your contributions to be matched and it's really cool to see these stats being posted by get coin each day you can see here that almost 700 000 has been crowdfunded so far from 164 800 contributions over 9 000 unique contributors and over 4 000 hackers have been part of this uh grants round as well this is just so cool i mean every single git coin grants round that has taken place since round one it's just been bigger and bigger and bigger every single time even during like the downturn here it's this is i believe around 10 is still bigger than round nine across all metrics so i'm just so looking forward to seeing this continue

to grow over the years like i hope to get to a point where it's tens of millions of dollars being donated each round uh to open source projects from pretty much like everyone in the ecosystem not just individuals but different projects and things like that but generally it's really just uh i mean with the quadratic matching um uh the mechanism is basically built to reward individual contributors uh and get them and make it so that their their donations go further then basically you know uh just being able to donate one die so that it's matched by up to like 50 or something like that to a project is much better than you know only donating one die and that's all you can do right and that's all that the uh project gets so really big fan of these rounds of course but as a reminder yes

this is probably your final reminder you've got three days left or two to three days left depending on when you're watching or listening to this uh definitely go get your grant uh donations in before the matching round is finished so uh aip1559 is ticking along on robston very nicely here and etherscan has added a new field to their robston uh block explorer here called burnt fees uh eighth now uh you can see on the right hand of this right hand side of the screenshot here there is a um a field obviously a column called burnt fees and you can see which uh how much each is being burned per block here so uh this is just really cool to see and i think and it shows you the percentage of the fees that were burnt as well now as i've said to to all of you before like

most of the fee revenue will be burned but not all of it and the rest of it that's not burned goes to uh what's called the tip field which basically goes to miners and in the future stake is as as per normal so i think this is gonna be exactly the same as as it's gonna be uh i guess for our main net right we're gonna it's gonna look the same here in terms of like the field on ether scan and and i just can't wait to see like all this roll in and just it's going to be fun to watch and as i said like watchtheburn.com is a website that basically has like a real-time visualization of being burned on roxton and then just when that switches over to mainnet it's going to be really really fun to see so yeah definitely um a really nice

addition from aether scan here they're known for doing this sort of stuff i mean they are the best block explorer by far i don't think anyone really comes close uh and either scan like i couldn't live without a scan let's let's put it that way and i'm sure you know pretty much all of you couldn't either so yeah great to see them doing um uh eip1559 related fields already on the first test net so a lot of you may have missed this uh because maybe you're like me and you don't check reddit too often like i used to check the ethereum eighth trader eath finance sections uh much more regularly than i do now i think you know i transitioned from reddit in 2017 2018 to twitter uh because twitter just became the place where everyone was and and basically everyone who was anyone in

the ethereum community was on twitter as well whereas the subreddits uh i guess are still very active today and there's still a lot of stuff going on on there and one of those things was actually something that i caught today where vitalik posted an impromptu impromptu technical ama on statelessness and vocal trees and state expiry so you can see in this thread here vitalik answering people's questions isn't this some prom impromptu ama and he's going really in-depth like these are paragraphs and like multiple paragraphs of answers with technical jargon thrown in there and everything and he pretty much has answered like every question from what i can see which is absolutely amazing or at least most of the questions which is really really cool and you know this speaks to one of my newsletters the other day that i put out in in the daily grade

newsletter where i basically wrote about you know sharing knowledge and this is exactly what the ethereum ecosystem is known for it's like just sharing this knowledge for free straight from the source like you're getting the technical knowledge about uh the future of statelessness vocal trees and state expiry from the source like vitalik is one of the main researchers working on this sort of stuff and you know he obviously published all these posts the other day that i highlighted on the refuel but he's going in here and just answering everyone's questions uh which is absolutely incredible and i haven't had a chance to read through the ama just yet i'm looking forward to doing so hopefully tomorrow if i find some time um but i just think it's just like not just vitalik but like we had the ethereum foundation researcher ama last week as well which had uh you know

a ton of good info in there um you know we have like so many people on twitter like from different d5 apps and dows and nfts like all the all the founders and ceos and everything are all on there and they're all answering questions it's not even just on twitter it's on discord like you can go into a discord channel and basically tag the founder of like a project and be like hey like can i speak to you and like nine times out of ten they're going to reply to you it might take them a little while to reply because they're busy or maybe they'll say hey you know i'm really busy right now but this this person can help you from our team so you know getting access to all of these people is just really easy within within crypto uh especially and it just

it's great to be able to go to the source because you can always get a lot of secondhand information and especially within crypto people lie a lot because there's incentives to lie because of monetary kind of like factors like for example if you're a fan of like one project you're not a fan of another and they're competing with each other well you may have an incentive or an unconscious bias or a very conscious bias to kind of like i guess talk down about another project and maybe spread some information that is not totally true whereas if you want to kind of follow up on that and and i guess go straight to the source and find out the information you can uh and you know you can even do that with the biggest projects out there i mean this is vitalik the guy who started

ethereum ethereum is the second largest crypto project by market cap uh and he's still on here asking you know answering regular everyday people's questions and he does this regularly right when he was active on twitter he was always answering people's questions on reddit he spends a lot more time on reddit these days i believe because he likes the longer form format um but generally you know if you if you really wanted to you can at one point or another get in contact with vitalik and ask him questions and things like that and he puts out a ton of educational content too which i think is really really awesome but it's not just him i mean there are so many people out there that you can go to direct to the source for and they're all very public and they're happy to be public and i

think it's a very um strong shift from i guess the web 2 world where i wouldn't know who to contact at any of the top kind of web 2 products at all like i there's not most of them don't even have a proper customer support department where you can actually just like message them and talk to them or you know you can put in a ticket but it takes forever for them to get back to you whereas within them i guess ethereum space it just seems like you get a much faster response from these people and you can always find help if you want it and yeah to be fair like none of the d5 apps or whatever are nearly as big as their web 2 counterparts but ethereum is right and we you can still talk to the protocol engineers of ethereum as much as you want you can jump into

like one of the ethereum related discord channels and literally talk to any of the people working on the bleeding edge you know or otherwise stuff on ethereum from from the core protocol level and not just the core protocol but layer 2 stuff as well i mean anything anything like uh you can just go there and talk to them which i think is is is a big reason why ethereum is going to remain the dominant platform going forward and is going to remain the dominant communities because you've just fostered such an amazing group of people that are happy to answer all your questions and happy to help you i don't see that with every community and you know i a lot of the um other kind of like competing blockchains out there and their ecosystems they definitely don't have this level of openness i've checked and i just don't

see it at all some of them do like don't get me wrong but a lot of them don't have it like nearly you know to ethereum's level which i think is something very special that i hope that we get to preserve in the ethereum community in the ethereum ecosystem as time goes on but anyway i'll leave a link to this ama in the youtube description and you can go read all of italics answers i think this is actually something that you should like i highly recommend reading it because statelessness vertical trees and state expiry is a huge thing that's coming to the network kind of like after sharding and it's actually going to be a massive upgrade across multiple vectors so you know learning about it getting up to speed with the details and being on top of it is going to give you an edge

over like a lot of other kind of people um and it will give you more conviction if you need it on like ethereum and ether and all that i mean this sort of stuff is what gives me my conviction right just being able to see five to ten years into the future and even like less than that say like two three years and then five to ten that kind of stuff gives me the conviction to say things like i'm never going to sell my eighth and to stick to it to buy eat more eat every day and you know that that's how i've done it ever since i got into ethereum is i've just read and read and read heaps of stuff and i've talked to lots of people and that's how you keep your conviction because it's very easy to fall into the trap

of the day-to-day market movements and kind of like have some recency bias where you're like oh no he fell 10 today is it all over and your mind plays tricks on you right the the monkey brains that we have are not very fun sometimes but when you kind of like reorient yourself and go read some things and and maybe listen to a podcast or watch a youtube video on ethereum or whatever it kind of like um reorients you and kind of puts your mind at ease and let you kind of be bullish again and that's what i've done in the past as well like some days like on the really bad days i'm talking the days where for some reason something's gone wrong everyone's on ethereum especially during the earlier years um and you know the price is like really bad uh and you kind of like think to

yourself you're just like wow like you know all these negative stuff's happening around me like uh you know am i actually bearish on ethereum and then you kind of like listen to these podcasts read something read a blog post read about the future of ethereum and you can kind of get bullish again because you're reminded of exactly why you're bullish on ethereum in the first place so yeah i'll leave it at that a bit of a bit of rambling there for you guys a lot more to get through so i'll get right to it so i missed this the other day actually it was a few days ago but cooper put out this awesome blog post uh called the dao landscape so basically going over the current landscape of what dows look like particularly i guess in the ethereum space as most of these dowels

live on ethereum and it is absolutely massive i mean if you look at his tweet thread here and you can see this screenshot this is the dow landscape of 2021. uh and you know obviously bottom left is cut off because of my camera here but you can still see the magnitude there is so many dowels doing so many different things and he's put them into different categories here you have dao operating systems so these are things that are basically i guess dows for dowels like uh making the supporting infrastructure 40 hours you have investment based hours the ones that will basically invest in d5 projects or nfts or whatever uh you know by pulling funds of capital together uh you have grants dows i guess speaks for themselves and i speak i've spoken a lot about these before like uni swap grants ava grants compound grants and a

bunch of others that basically uh give out these kind of grants out of you know treasuries and wherever they get the money from their treasury from to to builders out there then the bottom left as i said you can't see but collector dows which are basically dao's formed to collect things specifically nfts a lot of you may have heard of pleaser dow already before which is blocked off by my camera here but blizzard has been buying up some of the i guess most sought after uh nfts and like basically a syndicate of uh i guess like people that just want to be part of this down and just like pull capital together to buy culture essentially and to own a piece of internet crypto d5 ethereum culture at the end of the day and then of course you have protocol dowels which is basically like

all of the the d5 apps that have um have dowels like make a dowel you know compound unisop all that good stuff and also um other things you may not have heard of before that aren't d5 like audios and uh ocean dao and universe uh as well that's an nft based thing and then service dows uh there's a bunch in here like uh meta factory manufacturer for those who don't know does like um limited edition uh i guess swag like um clothing and things like that uh and there's a bunch of other dowels out here lex dao i'm sure it's like i'm pretty sure it's like a legal down where they offer kind of like legal advice to people and there's so many others here i'm not going to go through them all social taos uh i guess again speaks for itself but this falls into the

social token category where you have uh basically people kind of like coming together and forming like i guess like a community uh around a kind of like a something right in the day and there's a bunch of dows around there's some some social thing and then at the bottom you have media dowels which includes bankless dow and and rect hq and a bunch of other things basically people creating content and stuff like that um but yeah so that's that's the basically tldr on the landscape of it but in the blog post cooper goes into more details he describes like what is a dao uh basically the difference between all the things that i just mentioned but he basically goes into more detail about it uh the the tools that dao's are using and there's so many tools these days for them to use like nurses safe a lot of

you may have used before discourse snapshot tally board room rabbit hole so many out there uh and then he goes on to like uh describing how dows evolve and how they evolve on chain and off chain and a bunch of other information out here i'm not gonna go through the whole thing you can read this yourself would be linked in the youtube description but i think this is awesome i think cooper i mean i've known cooper for a while he's a good friend of mine he's on the bleeding edge of this stuff of like crypto culture dao he spends a lot of time in this kind of um in this ecosystem and i think he really gets it and really knows what's happening in this ecosystem and has a really great way of putting it all together writing these posts and making and letting us like understand what's

going on because personally i don't have enough time to spend in like the culture culture downside of ethereum i try to keep up as much as possible but it's hard right i mean it's very very hard to keep up with keep up with everything so i think just following people like cooper is definitely the way to to keep up so i guess on that no i highly recommend following him on twitter if you haven't yet but also go read this post uh it'll be linked in the youtube description so nansen announced today that they have raised a 12 million dollar series a round led by a16z uh now i've talked about a16z's 2.2 billion dollar crypto fund the other day right i'm not sure if this came out of that fund but you know a16 is going to be very very busy funding different crypto projects going

forward and you're going to be seeing them all over the headlines but back to i guess nansen so for those who don't know nansen is basically an on-chain kind of like um analysis platform for ethereum and i don't know if you have used that i've used it before it's absolutely amazing what you can actually find on there they tag a bunch of different things you can there's like sections where it's like click on um you can click on this tag called smart money and you can follow what all the whales are doing on chain you know there's a thing called like the stable coin kind of like oscillator where you can actually see how many p of how much of the smart money you're sitting in stable coins right now how much of them are deploying it you can monitor for things like new contracts being deployed

and new kind of like nfts and new defaults being deployed so you can be first you can monitor things like people accumulating tokens and things like that i've used this to do all those things that's why i'm describing them but um you know they they basically i think a few months ago they raised the seed round and now they're doing the series a which is a 12 million raise which is absolutely awesome i mean you know blockchain analytics companies are going to be around for a long time regardless of if we get privacy or not just the fact that we have like all of this data available to us um and people people do want to harvest it they do want to have access to it they want to get that edge it gives you alpha so why not kind of i guess like have a

platform that does this all at once and there's obviously other platforms as well that do similar things but uh i uh you know i think nancy is one of one of the best definitely um and you know this money is going to be used to do a bunch of different things that detailed here enhancing the user experience of course uh increased support for more blockchains and layer two solutions including polygon optimism and arbitrim which is going to be really cool uh and you know you can join the discord channel as well if you want to find out more or kind of join their community here but yeah congrats again to them on this race absolutely awesome i think you know a16 was the lead but they also had a bunch of other investors join uh like uh coinbase ventures uh iron token ventures mechanism capital and a bunch of angels

here as well i won't read them all out but but here they are basically really really cool congrats again um and that's it for nansen so token terminal shared this uh tweet yesterday where they said crypto protocols sorted based on past 90 day total revenue the right clock column shows the project's twitter following so you can see here that ethereum is obviously number one with a revenue of two billion dollars or almost two billion dollars over the last 90 days now the way the revenue for ethereum works is that's basically taking the amount of uh i guess like gas fees that are paid on the network of over the last 90 days so the funny thing is is that most of that's getting burned soon so you can see where the bullishness for 1.559 comes in when you start looking at these revenue numbers

but then you can go down the list and you can see you know the revenue that uni swap has generated and bitcoin and sushi swap and then all the way down the list then uh unisop obviously uh is is a big one because it's generating a ton of revenue for uh liquidity providers um and and this isn't going to any of the token holders yet because that fee switch hasn't been turned on you can see bitcoin is coming in at third here a bunch of other protocols and you know it kind of tapers off and a lot of protocols aren't earning you know nearly as much as as um the top ones are but it's still pretty cool to see just there's just this breakdown here and i guess looking at it with twitter followers as well can kind of add some additional context but it's just i mean it's just

staggering how far away ethereum is from everything else and obviously you wouldn't compare ethereum to the defy apps you would compare ethereum to bitcoin well ethereum is like almost 5x the revenue of bitcoin over the last 90 days in terms of fee revenue and as i said post 1559 we're going to be burning most of that as eth so this is just insanely bullish and you know how i was talking about how before how i said that you sometimes have to reorient yourself if you're feeling bearish and you have to kind of remind yourself like why you're bullish on ethereum in the first place i mean this is always the easiest stuff for me to look at i look at things like okay well you know even though the gas fees are low like what's the total revenue going to be okay you know assume 70 of that gets burned

okay this is the amount of ether that's going to be burned you know map that out to the total issuance of the er this is how much we're going to lower issuance by and then i kind of look at a bunch of other on-chain metrics as well around there just to kind of i guess get an overview of really like the the reduction in cell pressure for eight because that's obviously going to cause uh well i mean if the demand stays the same and the cell pressure reduces then that's going to cause f to go up but it's not just that right it's a bunch of other things like i check on kind of like how the layer twos are doing how the default apps are doing i also checked if i up revenue and users and you know are we getting more new users into the ethereum ecosystem

how how's the layer two space faring as i said like um and all that good stuff like how's the the core protocol development coming along so um but i really just like the most tangible thing you can look at is the usage stats and i think fee revenue it for a layer one block chain or just in general firo new is one of the best things to look at because of the fact that you have uh it's very hard to fake this because it costs a lot of money to fake it and you know on that note i actually think that the the way you can fake it is if you own where that money's going to so for example i've seen um you know uh uh i don't want to kind of like uh i get go go too far down the rabbit hole here

but i've seen binance smart chain doing like uh a a fair bit of fear revenue if you go to crypto fees dot info you can see it there but the thing is is that that binance controls the nodes so they're just paying the fees to themselves so you can't trust that as a metric at the end of the day because they could be faking that for example and this is a clear difference between you know ethereum and and bsc uh is the fact that on ethereum there is the ethereum foundation or like no central party is getting these fees like the fees are going to minors and miners aren't just like this monolithic entity there's obviously mining pools but there are like many many individuals in in that that that has that and same with you know unisop like that um fear

revenue is going to liquidity providers and and things like that so there can be spoofing on uniswap as well don't get me wrong but the thing is you have to pay gas fees as well this is unisop revenue just for the protocol so you also have to pay gas fees which means it wouldn't be worth it to spoof it unless you were trying to temporarily pump a token or whatever maybe it would be worth it if you were able to get enough attention but it's risky it's it's high up front costs and you know by spending the network with transactions you end up causing um uh i guess like the transaction fees to spike themselves maybe this changes on layer two i've spoken about how before like layer 2 is going to encourage you know a lot more people to kind of like come in

a lot more bots to come in and kind of fill up that block space maybe we see that maybe we see accounts just like spoofing and spamming the the kind of layer 2 networks because it's cheap to do so and they're trying to achieve some kind of like manipulation tactic here so um yeah i think there's a lot to look forward to there in terms of like analyzing this stuff and i'll definitely be keeping an eye on it and probably going over it in my data pump series which i think it's what the 29th today a new episode will be coming out uh i think on this weekend yeah i'll probably get it out this weekend um on that one but one last thing about this kind of table that i wanted to point out is metamask now metamask is doing has done 32 million

dollars of revenue over the last 90 days which uh i think averages out to what three four hundred thousand dollars a day or something like that in revenue now the way metamask makes money is that they have a swap uh feature built into the the wallet there and then you can click it and then they take a 0.8 percent fee off every swap and it's basically acts as like a decentralized exchange aggregator now as far as i know the overhead for metamask is super super tiny they have a small team working on the actual wallet itself so they are printing money here this is this is not going to a token holder because there's no metamask token this is not going to any kind of like liquidity provider because there's none of that this is going directly to the metamask team so they're printing cash like every

day from people and obviously like the more people are swapping the harder the market is the more money they're going to be making but this is just incredible i mean metamask went from like i think six months ago a bit before that earning basically zero and being free for many many years to use and it's still free to use mind you to earning you know say four hundred thousand dollars a day in just pure fee revenue absolutely incredible right and who knows if they do a token and that token has like governance rights or like a claim to this sort of stuff i don't know i don't think they need to do a token like why would why would you do a token when you're printing this much this much money unless she wanted to go like public right but i don't know we'll see what happens

there i still think that there's a there's a higher chance that they'll do a token rather than not but i don't have any special knowledge there so polygon had a big announcement yesterday they announced avail which is their new general purpose scalable data availability focused blockchain targeted for standalone chains side chains and off-chain scaling solutions uh or this off-chain scaling solutions basically refers to layer twos and and kind of like some other constructions there now a lot of you may not know what avail uh kind of is and what it actually means and what the implications are so i'll give a quick tldr here and you can read the blog post as well for a deeper dive but essentially data availability is the i've spoken about this on the rachel before but it's basically the main kind

of like bottleneck for uh as well as bandwidth for like scalability and the the way layer twos work is that they actually post their data to layer one and they take the execution to layer two and then there's other kind of technologies that like the valid avalidium and things like that that fall into i guess you could say fall into the layer two family but they basically take the data off chain as well so they only post a bare minimum of proofs to uh the blockchain in order to basically verify that everything's gone correctly now what avail is going to be able to do is serve as that data availability availability layout for any project or any kind of like chain whether it be a you know standalone chain side chain

or a layer 2 chain to tap into in order to store their data there and kind of like be secured by this chain but also for the data but also be secured by ethereum now i think this is like the future of a big part of the future of scaling here i think that this is how someone like a project like zk sync advertises their 100 000 transactions per second with something like zk porter which is also doing something like this where they take the data availability and put it kind of like off-chain as i mentioned valydian from starkware is doing this as well and they all use kind of like something called a very i guess like technical uh i guess like secure mathematical primitive as they kind of say it here called erasure codes now you may have heard of this before

i'm not even going to begin to try and explain how erasure codes work because i don't understand that uh but you know you can google it you can check out this post more information on that i don't think the technical details are too important here and like how it actually works like on the protocol they are i think just being able to kind of like understand the benefits of um you know of kind of like a data availability layer and of a veil specifically i mean they mentioned the benefits here with avail you avoid encoding fraud proofs there's no honest majority assumptions and no reliance on honest full node peers to gain data availability conf confidence now if you don't know what any of that means that's okay they go into more detail about this but this is again technical stuff here um and and stuff that's like protocol

layer and really i mean end users don't won't need to know about this um but yeah generally i'm just really really excited to see polygon release this out into the wild uh finally i think uh uh basically they're going to be releasing more and more of this stuff in the future i mean i've teased before that they've got roll-ups coming soon they've been talking about it um you know and i think that polygon gets a lot of unnecessary kind of like hate for the pos chain because that's just one of their solutions and people think that they're just going to stick to the pos chain and not ship anything else and as like an advisor to polygon i can you know i i don't want to sound like too much of a shield here but i can promise you that they are working on so much stuff in the background it's

insane like they are i mean honestly i don't want to hype it too much here but they're basic they're working on so much really cool stuff here so if you're just looking at the pos chain and thinking that's it well you're missing the forest for the trees my friends and you really do need to pay more attention here uh and you know this is just the first in in many kind of things coming to the polygon ecosystem so i'm really excited for that but uh definitely go dive deeper into this kind of have a look through this blog post there's a bunch of nice graphics as well that explains how this all works uh and you know i'll link it in the youtube description of course for you guys to check out so another big announcement over the last 24 hours was compound announcing their new product

called compound treasury which is designed for businesses and financial institutions to access the benefits of the compound protocol now the idea here is simple as they say it basically uh they're basically offering a fixed four percent apr on us dollars with daily liquidity and none of the complexity of crypto that's the marketing spin in in you know normal people talk this basically means that uh businesses in financial institutions can tap into d5 without having to do the normal process that we all have to do such as like going into metamask right or installing metamask or having a ledger hardware wallet or any kind of like well having a lattice one or whatever um or having any wallet just generally and kind of like you know proving transactions going through the motions having eight for gas fees all that sort of stuff

the treasury product is basically obstructing that all the way yes it's basically adding centralization back into it the mix but it's centralization in the front and d5 in the back so you have this nice beautiful kind of like uh i guess interface for institutions and businesses to use where they essentially and this is how easy compound have made it they can go from usd like they can just wire usd into their treasury account and immediately start earning four percent apr they don't have to do anything else the uh treasury product handles the rest of it where they basically take that convert it to usdc put it into compound protocol and basically pay out the yield to to the treasury kind of accounts which i think is just absolutely awesome and also speaks to what i've been kind

of like talking about lately about the ins institutionalization of d5 we've already seen arvo teasing this before compounds now come out with this huge announcement today there's going to be other protocols out there i mean maker's already been working on a lot of real world asset stuff this is all coming and this does not take away from defy it does not take away from me and you being able to use defy because at the end of the day businesses financial institutions regular people uh you know quote unquote normies whatever you want to call them a lot of them don't want to tap in directly to these things a lot of them just want a simple easy to use kind of thing that's built on top of these new rails i think that's totally fine because just because the compound treasury product exists

doesn't mean uri can't keep doing what we're doing we can still tap into all the dfi protocols we want we can still yield farm the way we want we can still trade with the way we want no one's stopping us from doing that it's just that these new products are kind of like building on top of those rails instead of the traditional finance rails so they kind of like what's referred to as fintech or neo banks um which you know i think is really really cool because as i said this offers are just a brand new way for people to get involved and if you think about the amount of money that's sitting on the sidelines now uh for institutions and businesses they're sitting on stacks of cash like hundreds of billions of dollars just idling there earning no yield can you imagine even a fraction of that

coming into d5 what's that what that's going to do for defy it's going to inject so much fresh capital into the ecosystem it's going to um give people a very cheap rates to borrow with as well so if people want to kind of like leverage long or borrow stable coins to do whatever you know yield farming involves a lot of borrowing and things like that then they can do that and there's much more capital to do that and makes the entire system more efficient and compound is just one app doing this you know there's so many more out there that are going to be doing this on d5 apps doing this and as i said this does not take away from the true d5 experience at all i saw a lot of people kind of concerned trying this today on twitter saying like oh we shouldn't

be embracing this it's like guys like we built new rails we built new financial rails for people to use them as they see fit it doesn't matter if it's centralized or decentralized anyone can use them if they're open they're not opinionated on who can use them and that's where the real decentralization comes from and where the real power comes from so um i'm going to leave it at that because i got to power through the rest of what i've got here but essentially i highly suggest giving this blog post to read it short it'll give you some more details on what treasury is but compound is leading the charge here being pioneers again this comes just one year after or like just over one year since they launched the comp liquidity mining program and i put a tweet out before saying you know is compound finance going to launch

uh d5 summer round two because they launched d5 summer round one it'd be poetic if they they basically you know reinvigorated d5 and we had like another really massive ethereum based defy with like layer twos out there and stuff like that i don't know we'll see um you know still two months left of summer for the northern hemisphere maybe it will happen in my summer as i've been saying my device somewhere around to end of the year you know you heard it here first no no i'm joking i'm joking anyway i'm gonna lay out at that a couple more things to get through alchemics basically put out a thread today or yesterday going through uh a few updates that are coming to the system so as i mentioned their return eighth program uh was was a big success with over half of the eighth being returned

there's gonna be a special nft for those people uh with uh with al eth they have upgraded their testing and tooling and added additional security features they plan to reopen lf to the public later this week when they are sure everything is safe and the uh cap of 2k aif will still be in place and remain there and alcoholics v2 auditing has begun so that's the coolest bit to me of this announcement i guess uh a.l ethan alchemics v2 are tired here but yeah and there's like a few governance things to vote on as well so yeah really great updates out of alchemics here and the last thing i wanted to talk about was something that raul jordan posted where he said prismatic labs is taking an initiative to fully drop the eth2 terminology from our ethereum client we believe it is the right time to clarify there is only one

ethereum now raul is one of the core devs at prylabs who builds the prism client just some context there and he goes on to say eth2 was used as a way of differentiating the work on proof of stake plus sharding from current core dev and it stuck as we get closer to the merge it is critical we reduce confusion for user users especially as a large portion of ethereum consensus nodes are running our prism software we urge all implementers to do the same over the coming months um pry labs isn't an ethereum sorry prism is an ethereum consensus client and will remain sorry moving forward into the removal of proof of work um this is i guess like going back to what i was saying maybe a few weeks ago from danny ryan trying to push this out there that there's going to be a

an execution layer and a consensus layer the execution layer is going to be basically eth1 and and kind of like i guess technically sharding later on and the consensus layer is eth2 uh and and basically that and and the beacon chain so the terminology basically uh happens like the beacon chain is considered the consensus layer the execution chain is where all the kind of like stuff happens right all the smart contracts all the the stuff that we do on layer one today so those that's the terminology that i'm probably going to be using going forward i still probably use the term eth2 um just because a lot of people are familiar with it but if you see uh the developers and more people using these terms of like um consensus uh uh i guess um layer and execution layer just know that

the consensus layer refers to the beacon chain the actual proof-of-stake consensus and the execution layer refers to the execution layout like the ethereum blockchain uh itself that we know and love that executes smart contracts you know has it houses your your assets and all those sorts of things but anyway i've gone over time i'm gonna leave it at that for today so thank you again everyone for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone