Uniswap v3 detailed, Hermez Network launched and more - The Daily Gwei Refuel #84 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily way refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 24th of march 2021 all right everyone let's jump in so obviously the biggest bit of news of the last 24 hours was that unisop v3 was detailed in all its glory now i'm you know i know yesterday on the refill i was saying that i was expecting it any day now uh and here it is but there is a little bit of a caveat here that this is just the details of v3 it is not actually going live on mainnet until may 5th it's going on test nets in the next few days which is cool but obviously what everyone's waiting for is the main release on may 5th and then shortly after that they're saying that

they're going to have an l2 deployment on optimism so you know basically confirming that they're going to be building on optimism which we all pretty much already knew about uh and also um you know saying that it'll be going live may 5th which is you know it's not too long it's about six weeks away from now which which isn't too bad you know it would have been cool to see them launch this week or something like that to end out much on a pretty high note but you know it is what it is so i guess there's a lot to talk about here right and i'm sure you've seen you know plenty of people on twitter talking about this today and kind of doing breakdowns of it what the implications are and everything like that but basically the major features of v3 uh so there's a few i guess like the the the

biggest one is the uh what they're calling um concentrated liquidity now basically i mean if you don't know how uh i guess like amms work or how curves work in general um maybe i suggest going and reading the pros for a full breakdown of this but i'll do my best to kind of explain it here so when you provide liquidity on uni swap as it exists today on v2 or even v1 you're providing liquidity for basically the whole curve now what ends up happening is that the whole curve goes from like zero to infinity so you've got this curve you've got zero dollars sorry yeah zero dollars and then infinity and then you know the price trades between that now what concentrated liquidity aims to do is so is make it so that um liquidity providers can actually

specify the price range that they want to provide liquidity to so for example say you want to provide liquidity for eth but you only want to provide it for the 1 000 to 2000 price range right and you might wonder why would you do this well it's you would do this because you you need to provide less um capital to get the same uh to get the same or more kind of fees from the from from the training that happens on the on on unisop right so what ends up happening is that you can provide less capital or less lp right then you would have to on unisoft v2 like much less i think and then you could actually go and do something else with that money uh which is which is really really cool so basically you know if the price was to move below a thousand dollars or

or above two thousand dollars and you haven't changed your kind of um profile of lping there then what would happen is that you wouldn't get any fees from that anymore um the people that had the i guess liquidity in those price ranges outside of your one would get the fees uh but yeah you can always kind of adjust it on the fly and you know a lot of people were speculating well this this kind of is going to lead to i guess uh very complex kind of strategies popping up around this so you're going to see like this would basically be some time someone's full-time job to come up with the most profitable strategies and you know providing the most liquidity in a price range essentially and not capturing the most fees between that price range and then constantly moving it and now if this sounds like to you like

a classic market maker on a um a club exchange or a central limit order book um exchange like just a classic order book then it it is right like the the i guess the innovation that uni swap brought to the table is that it's passive market making right where anyone could lp and then you know on on the amm and then you know the trading fees would be captured by the the passive lpng now we're kind of entering into a territory where that's not going to be them you know an optimal strategy um anymore because of the fact that to capture the most fees you're going to basically have to monitor your liquidity provider position at all times because of the concentrated liquidity so there is a trade-off here and the other trade-off is that um you know as you can imagine all these positions

you know when you provide liquidity you get lp tokens back and they're fungible with each other right every lp token for the dive pair is the same as every other lp token whereas with concentrated liquidity all the positions are unique right um or at least most of them are unique like i guess if if someone has the same kind of price range as you do you can kind of i guess probably wrap those up and and and kind of like put them in a in an erc20 or something like that something like nftx does but you know generally every position is unique which means that they can't really be used as collateral within rv and maker like i was discussing on the refill the other day where you know using lp tokens as collateral so that's another drawback there but i think there are ways around it and i saw

you know a bunch of people kind of talking about that so that is the killer feature that's coming in v3 uh you know it i mean if it works like as advertised which i'm sure it does i i don't think they would have put this out there if it didn't work as advertised the capital efficiency here is absolutely massive right absolutely insane uh you know you can see here that uh if two people had a million dollars to deposit and one of them deposited it a million dollars and kind of like lp between the price range of a thousand dollars and 2 250 for eth um they wouldn't have to lp the whole million dollars they could lp um i think uh 184 thousand dollars instead and still capture the same amount of fees or more fees um they say you'll capture a lot more fees

than you would of having to kind of like i guess uh provide the entire one million dollars of liquidity so you can go do whatever you want with that and you know this is a theme that i've been watching for a while within the d5 space is this this this theme of like efficient capital right because there's so much capital that just does nothing you know if you think about it right there's so much capital in a uni swap lp pool right now or even sushi swap or whatever that just sits there and does nothing because the eighth price hasn't gone below a thousand dollars for months now right so so there's no trading happening there at all and it hasn't gone above two thousand dollars for a little while hasn't ever gone above like you know 2500 or whatever so there's like there's all this liquidity that just never gets

kind of like i guess i guess used in either direction right until the price moves up there um you know this would be like a market maker on on order book exchange you know putting you know i guess like um orders at like you know under a thousand eighth under a thousand dollar eighth yes maybe one day it gets hit but like that's not an optimal strategy for a market maker an optimal strategy is basically placing orders around the i guess you know as close as you can get to the current kind of spot price of the asset uh so that's what this kind of like concentrated liquidity does it it's basically a hybrid i guess you could call it between amms and and clubs uh which is which is pretty cool to see but you know i think the trade-offs here are actually worth it um and i don't think

that this is going to be the death of like passive lp'ing i think you know there's going to be obviously sushi swap still exists and i don't think they're gonna go for concentrated liquidity maybe they do one day but for now anyone who wants to be a passive lp can on on sushi swap and can still do it on unisoft v2 um but yeah i guess like eventually most of liquidity will move to v3 and it remains to be seen how it plays out i mean if the volumes really are this high and and the capital efficiency is much better then i i i think that you know i i don't see who's going to be lping um on the you know on sushi swap rather than than than uni swap you know there might be liquidity incentives with with the tokens and stuff like that

but kind of outside of that it just becomes a little bit of a a little bit of a i guess like open question like what's going to happen there so yeah that's the killer feature if you want to read more details of course this will be linked in the youtube description but that's essentially how i understand it um you know any errors there are on my own um i you know i started it today and i had to wrap my head around it and as i was studying i was like holy like this is huge right if this works this is absolutely massive this unlocks so much capital within d5 like in unison there's billions of dollars right and and a lot of that money is just not doing anything so if you can basically you know reduce i guess overall 80 of of the entire capital needed to power

uni swap and still capture the same fees or more fees from the trading volumes right because at the end of the day tvl is like a mean metric because you can have tvl just doing nothing right doing absolutely nothing in the system uh and then it's just like dead capital uh whereas what matters is the fees generated by the platform and the volumes generated by the platform so for uni swap what the only thing that matters to lps are the fees that they're earning and and the kind of volume the the fees come from the volumes that are being generated you know for maker dow all that matters is the stability fees for the system right that are paid by people who are taking out leverage now you can imagine how many people have taken out leverage and make a dow have a lot of eth backing it up but

their liquidation price is really low because they're scared of being liquidated that is dead capital right it's just very inefficient yes you know you're scared of being liquidated but there are much more efficient ways to to do a leverage position so you know there's that as well i mean and this is everywhere so what might end up happening is you may see a lot of tvls kind of i guess like shift so you may see a lot come out of uni swap um you know during v3 and then a lot of that go to something like you know compound or rv or whatever more of the capital intensive kind of products uh because of this so it's gonna be interesting to see i guess what happens here um the other features include uh basically uh range orders which i think are kind of like you know your

classic order book as well where you can set orders at different ranges to execute um uh there's also flexible fees so uh you can set a fee of 0.05 percent which is actually extremely competitive with something like curve so this is another thing i didn't mention about this um this uh concentrated liquidity is you know people are saying okay this is a curve killer because you can concentrate the liquidity for stable coin pairs to like very you know um you know very low kind of i guess prices obviously because stable coins ideally don't you know shift too much right and and because of that and because of the the the fact that you can set a low fee here people were like well you know this is going to kill curve and i mean i don't think it's that simple at the end of the day i hate when something

someone says oh this is going to kill that or this is going to obsolete that you know it's such zero-sum thinking um this is why i've always hated ethereum killers as well because it's like you're not going to kill ethereum right just focus on adding value any in any way you can like ethereum is going to thrive you know and you you know you as another layer one blockchain maybe you can thrive as well um if you find a use case or if you find some kind of thing that ethereum doesn't have because the theorem can't be everything to everyone at the end of the day as much as we would all love it to it it can't so you know and the same thing happens with all these apps it's like you know this is the x kill this is the y killer it's like

it's never going to work out like that i i do think that curve is going to keep innovating you know they have a massive war chest at their disposal too they have a really good liquidity mining program to incentivize stable coins to go in there so i just i mean i don't buy into that that kind of rhetoric um but outside of that there's also two other feed parameters here obviously the 0.3 percent which is the standard unisop uh lp fee parameter now and one percent as well so you know it's going to be fun to see what happens here i mean this is very similar to what balancer has except balance to let you set like a you know obviously i think up to five percent in fees and and and and stuff like that but i think unisoft opted for kind of simplicity here where

obviously the 0.05 is probably going to be used for stable coin swaps 0.3 percent is just your standard and one percent you know i'm sure there's a use case for that as well so there's that um the flexible fees and they they briefly mentioned about um you know the uni token or at least the i guess the unisop governance being able to turn on fee capture for the uni token i wouldn't expect this to go live for quite a while unisop seems to be taking an approach where they're kind of like building for for the very long term here and don't actually care about capturing fees and you know why would they i mean look at the uni tokens value right now it's the most valuable d5 token and it literally has no fee capture because it's the most valuable based on how much it's going to grow into the

future and this kind of prospect of turning on on this fee you know fee capture eventually which i i believe eventually it'll be turned on but i don't think any time soon that's for sure uh other features include advanced oracles so they've they've upgraded their kind of like uh t-warp oracles that that um you know are being used i guess like sparsely within d5 i'm sure you know more people are going to use them as time goes on and i guess the last interesting thing here was their license so for those who don't know every kind of uh piece of software has a a license behind it even open source software now your software can still be open source but you can still have a copyright license on it where anyone who kind of like takes your code and reuses it um doesn't and doesn't

have your permission to uh you know you can go after them and you can request them to take it down and if they don't you can get the law involved essentially now the way that unisop has done it is that they've licensed their v3 core code base under what's called the business source license 1.1 uh but only for two years so it's basically a time delayed thing where you know you can't copy and you know directly copy unisof v3s code base and use it for your own project and monetize it or whatever um for two years and after two years it goes to a gpl 2.0 um license which basically allows you to to essentially use it as you would um in general uh open source software so and that will last into perpetuity and actually mention here that uni swap governance can either accelerate this

um or they say can accelerate this they also can probably push it back as well i'm assuming um but yeah this was interesting because people were saying you know okay well if unit v3 comes out it's just going to get fork straight away you know um someone else is going to copy it and and blah blah and whatever and this prevents that you know if you want to be a named team within the ecosystem if you're not completely anon right and if you copy this code you're going to get wrecked like uni swaps lawyers i mean i'm sure they have like some one of the best legal teams in in you know in the world considering how much money they have you know they're just going to come after you for that and i actually don't blame them for this like imagine if you work really really hard on something

for for a long time you know which v3 has been worked on for a long time and then straight away someone just copies it and beats you to market and just does it in a way be in that way because they don't really care about security or whatever um you know that would that would piss people off right so i think they found a happy middle ground here where they're basically time delayed so by the time it becomes open source um you know it's been it's been two years right it's been a very long time and by that point you know i'm sure there's going to be other innovations too right and maybe it's not even worth copying it at that point so yeah i actually like this even though i'm a big proponent of everything being open and open source i mean it still is open

source right um but i'm not a proponent of projects just straight up like stealing i mean it's not stealing the code but like just copying it and not doing anything with it and just like copying other people's work i've always hated that in this ecosystem um but you know that's the ecosystem that we're in right and and you know things being open source is beautiful for like cross-collaboration and people forking stuff making it better but at the end of the day there has to be a middle ground right you can't just like launch something that you've worked on so hard and you fund it out of pocket um you know and then someone come along and copy it with with no work so i mean i like this i do like this and i know people have other opinions here and that's fine you know this stuff can probably be

reverse engineered anyway using a new code base right but it does take time you need to get audits and stuff so you're basically putting you know the burden on people who want to fork you to actually do it in a way where they actually have to recreate what you've built which i think is fair enough so basically uh that's that's i guess most of what they announced uh yesterday uh they got you know the launch details here and everything like that as i said the smart contract are going to be deployed to ethereum test nets in the coming days so you can play with it on there um but you know most of us don't really use the test net so that's fine but i feel like i'm going to use the test net for this because i want to play around with this i want to see how it all works i want to

actually you know get in the weeds of things because i think it's very interesting and yeah that's that's it so i guess patiently waiting for may 5th uh you know the main net launch and then i don't know what shortly after means for the l2 launch you know i don't know if that means like a week after a month after they they kind of uh you know left that open and i i'm also speculating now is optimism delayed right like is their main net launch delayed from march because they said they were launching in march and there's a week left of march and i haven't heard anything from them like we haven't heard anything from them all month basically so you know i guess like i'm taking this the the approach here where i think that it's going to be delayed a bit i don't

know if it's going to launch you know in april now or launch in may i know there's other l2 solutions also i'm going live um soon like immutable x and arbor trim and stuff like that you know i think in this ecosystem i'm used to delays at this point uh so i think we all should be but yeah a little bit disappointing here um hopefully optimism still surprises us and launches either you know maybe this week or next week or something like that but yeah i think this is kind of like a sign that maybe it's it's delayed a bit here or you know i'm not sure what they would launch with right when they launch like i know they've got synthetics i'm going to talk about the update that came posted um a bit later uh but basically yeah we'll we'll have to see how that plays out but still very

exciting you know the next few months for ethereum are like super exciting and um you know kane actually put a tweet out about this which i'll go over um as well um you know over the next few months um and kind of like what that means for ethereum so yeah exciting news from uni swap really great to see this finally out there uh and you know we'll see how this evolves over time so i guess the other biggest piece of news from the last 24 hours was that elon musk announced that you can now buy a tesla with bitcoin and not only did he announce this he said that tesla is using only internal and open source software and operates bitcoin nodes directly bitcoin paid to tesla will be retained as bitcoin and not converted to fiat currency so pretty big right i mean there's going

to be a lot of people who are bitcoin rich who want to buy a tesla and this is just a perfect way to allow them to do that without having to cash out their bitcoin and they also know that if they buy it with bitcoin it's not going to be converted to fear which means that if you know this is just adding more pressure because maybe someone i guess cashes out bitcoin and then uh sorry buys a tesla with bitcoin and then goes and buys more bitcoin so it can be long-term good for the bitcoin price i think and obviously anytime elon musk talks about anything in general he's got like what 50 million twitter followers at this stage almost 50 million you know obviously that's going to reach a lot of people it's going to it's going to make a lot of headlines so

pretty bullish in general i think you know the price action's been kind of muddy lately but i think you know maybe we're setting up for a nice april we'll see how it goes but yeah pretty pretty cool to see this i hope it's next for sure so speaking of i guess like eighth being next and kind of like i guess fundamentals and and the price being kind of muddy lately anti-prosynthesis put out a good tweet here basically saying that feeling when fundamental metrics and relative market cap are literally reversed ethereum even settles more over 13 billion dollars a day than bitcoin settles btc less than 12 billion dollars a day and to top it all off transacting ethon ethereum is cheaper than transacting btc on bitcoin so essentially what what anti is kind of pointing out here is that ethereum's

fundamentals are uh i would say stronger than bitcoins right now um you know in terms of like network usage and fees paid and you know just sheer amount of builders and developers and sheer amount of apps obviously you can't really build anything on bitcoin but like you know it's and it's funny because you would expect eth to be kind of like performing better against bitcoin and it's sad to say that it isn't i do think that's just the function of the fact that bitcoin kind of owns the macro narrative you know it's bitcoin bitcoin bitcoin everywhere you know all these companies are putting bitcoin on their balance sheets i just spoke about tesla who's done that and at the end of the day that's what a lot of the outside world sees if we want the outside world to pay more attention to ethereum and value each and

we want the ecosystem to value eighth more then we're going to need that we're going to need more mainstream attention like you know how many talking heads go on to mainstream media and talk about eighth there's hardly any how many do it for bitcoin there's so many right like i mean all the time and and and that's kind of the divide that we're seeing is that even though ethereum's fundamentals are so much stronger what ends up happening is that because ethereum doesn't have that mainstream attention and ethereum has a lot of enemies as well um you know and a lot of i guess like it does have problems too right now with the high gas fees and stuff like that you know it causes this kind of downward pressure and it causes this kind of like pause in people they're like why would i buy

ethan i can buy ethereum killer xyz for example so yeah that's unfortunate to see and i mean and that kind of like segues into what kane's tweet was talking about today which i thought was pretty good and he he basically says you know why why are we seeing both macro crypto and d5 market consolidation right now often there's no explicable reason right now i think there are many good reasons it would actually be weirder if the market was not moving sideways let's explore he's got this whole tweet thread here i'll let you read it yourself but i guess the trd here is that right now especially within the ethereum ecosystem there's a lot of risk right there's a lot of execution risk because if you think about it like as much as we all believe that you know we're gonna execute and i still believe that

the execution risk of layer two is quite high right is it gonna work as we expect it's gonna work and i think most of it will some parts won't that's just the nature of new technology you know some parts we'll have to deal with you know i think the fact that liquidity is going to fragment is going to be a bit of a of an uphill battle for the next few months to kind of re reset not centralize that liquidity but like you know unfragment it so to speak uh or defragment i think that's that's that's the reverse um over the next few months there's obviously the uh one five five nine um you know launch we want that to go live in july you know we say it's gonna go live but is it actually gonna go live right and i believe it will but you know you never

know something could happen and there's the merger which doesn't have a defined timeline could happen end of year uh this year could happen early next year you know i'm betting on early next year hopefully like very early next year like january february sort of thing so but but all of this leads to this kind of like i guess risk in people's minds and this uncertainty and markets hate uncertainty you know any kind of hint of uncertainty markets absolutely hate it you see this play out all the time so i think kane has a very good point here i think that bitcoin doesn't suffer from this like ethereum does unfortunately you know it always amazes me that bitcoin can do absolutely nothing on the protocol level no no don't upgrade um you know no building being done it can literally just exist as it is

and still you know dominate in price and still be a trillion dollar asset and i think that's a function of the fact that it can't it doesn't do anything i think that people kind of like like that um to an extent right they like that there's no um i guess like execution risk and and bitcoin's going to be around forever i mean i don't agree with that because i do think there's kind of risk withholding bitcoin in you know the medium term i guess like the next kind of decade or so in that bitcoin security profile um is is not great and security kind of um i guess like once the blocks block awards kind of like hard enough you know if unless the price of the of bitcoin is like a million dollars plus or something like that it doesn't make up for that and the

network becomes insecure but that's like really deep into the crypto weeds like your everyday investor even the the um the the companies putting on their balance sheet they're not thinking about this this seems like a distant problem to them and they're just thinking about the next few years because a lot of them will probably sell at some point right they're not going to hold it forever so from that point of view that's that's the least risk risky thing for them then they look at ethereum right you can imagine a public company that has you know funds that are in their treasury that they're beholden to shareholders you know they can't just really nearly ape into anything they want to get exposure to this asset class um you know and most of them look at this and like okay what's the least riskiest thing well obviously it's

bitcoin has the most liquidity right um you know has the most defined i guess like um you know i guess it's not even a road map right just it is it is bitcoin it is what it is right has the biggest community has the most awareness uh and that's the first thing they buy i mean a lot of us bought bitcoin first right before we delve deeper but then they look at something like ethereum and they might realize the value but they also realize the the risks associated with ethereum and the execution risk and this isn't to say that it's bearish it's actually bullish that they're they're probably not going to buy ethereum until much later right until a lot of these risk is kind of you know like priced out or at least this the the risking event because they waited for a long time to get into bitcoin mind

you you know michael saylor didn't buy bitcoin until like and he's the one who started it off to like ten thousand dollars that's a long time and this was ten thousand dollars the second time not always the third time i think you know not 2017 during 2020. so if you look at that as well you you know bitcoin took a long time to to enter the public balance sheets of these companies um so essentially you know the and and and i think you know looking at ethereum they just see all this risk and they're just like okay i'm just gonna wait until all this risk passes you know maybe i'll miss some some gains here but i don't care you know there'll still be more left for me down the line sort of thing so that's you know it doesn't just apply to these public companies that applies to a

lot of investors in this space unfortunately and you know there as i mean there's no denying that there's risk there but for me you know the more risk the more reward and i actually don't think there's that much risk there i think that there is you know obviously an element of it but i think it's overblown i do think l2 is going to live up to the hype i do think that um erp-1559 is going to ship in july um i do think that the merge is going to happen you know as soon as possible being early next year and i do think that uh you know eth2 is going to be everything we want it to be with we obviously it's already live with proof of stake we're going to have sharding and you know we're going to have all this massive scalability so for me the execution resource isn't

there right i buy i still buy ethel all the time i'm fine with the volatility but for a lot of people they're not they're not fine with the volatility because eth is more volatile than bitcoin at the end of the day and they're not fine with the risks which is it is what it is so you know eventually we're going to get to a point where that's going to go away and ethereum and eth will become de-risked for these investors but it's gonna take a little while i think and that's okay right maybe more time for us to accumulate who knows uh not investment advice of course but i think it all makes sense and definitely go check out cain's three because he does a great job of breaking it down as well so hermes network i've spoken about this team before they're a layer two team

basically doing i guess uh zk roll ups focused on payments so essentially i guess an alternative to zk sync which you you all would have probably used in get coin during the latest matching round so they're live on mainnet today you can go to wallet.homies.io you can test it out for yourself they've got a blog post here that basically describes their mainnet launch in more detail so you can go check that out as well just another layer two solution online right i mean these guys came out i guess like a few months ago i heard of them and they just came out of nowhere i was like okay wow another layer two solution coming up that i didn't even hear of until now and i just thought that was really really cool so yeah i mean more competition more alternatives you know i don't want that to be like a

you know one day or two wins all sort of thing i don't think it's gonna be that um so yeah it's really great to see this out there so definitely go check this out if you haven't yet so synthetics put out an update on their optimistic ethereum kind of implementation that's been going on so uh for those who don't know they're rolling out synthetics onto uh optim optimism over uh various phases so phase zero is complete and they've been live for a little while uh phase one is next obviously and that's got a bunch of different features coming in and they have like phase two three and four um and they basically said that essentially here they were answering a question like why is it taking longer than english expected to reach phase one um you know it basically the engineering effort here has taken

longer than expected um you know the optimism team has taken longer than expected to i guess like um you know take the learnings from the phase zero and apply them to phase one um and then they go on to say you know what needs to be done before phase one comes out uh you know it's basically waiting on the optimism team to essentially finish preparing optimistic ethereum for these additional contracts and stuff like that this is just another sign to me unfortunately that optimism is maybe probably not going to launch in march on you know as a main net kind of capacity here maybe they do i mean there's still seven days left to march or whatever but you know this coming out at the same time is like the uni swap stuff and you know i i don't know i feel like an april launch is more realistic at

this point which i guess isn't that far away but you know a little bit a little bit disappointing because we all wanted it to go live in march but i won't hop on about that i would rather them do it safely right and make sure that it's it's secure before going to mainnet and then there being a massive bug and like 100 you know 100 million dollars being like stolen or whatever i i just i would rather that not happen um you know i'd rather than take their time so i think i'm fine with this as long as it's not too long of a delay you know we need this asap right we're bleeding users um to other kind of chains that are offering these lower fees and stuff like that um you know and that's not bearish for ethereum in general i think ethereum's

still gonna is still succeeding and still fine but i don't want i want users to experience the ethereum that like we all experienced when gas fees were cheaper right the one we all know and love that still exist today but these other new users have just been priced out of it right no one can i mean realistically the new people coming to this ecosystem haven't made like massive gains over the years on on crypto already so for them you know they don't have these kind of like i guess gains that we all have to spend on gas fees and we're fine with it to an extent right maybe it annoys us but for these new people they're just like 50 dollar fees like get get lost i'm not paying that um you know that's that's a lot of money right 50 bucks like uh you know and i i totally get that so

you know i'd rather just this stuff and this technology be deployed in such a way that is very safe and secure because a lot of the people transacting on there are going to be new users so we obviously don't want their first experience of layer 2 the the the solution that we've all said is gonna kind of like you know make the the feast cheap to be one in a very negative way as well so yeah uh definitely we'll keep an eye on these keep tabs on this and we'll see how optimism goes here so arthur xerox put out an interesting little mini tweet thread here and i'll read out what he said he said if you guys keep buying worthless layer 1 tokens with no unique value proposition no users no developers no applications aka a ghost chain this super cycle thing might not happen

allocate your money wisely guys and then the second tweet says as if the market never learns this lesson from a hundred of like from hundreds of layer ones that launched from 2017 2018 and they're as good as worthless now or most of the market participants now are formed by the new wave that never experienced 2018 before and then third tweak yeah even dog layer one is oversubscribed in their public sale now blockchain blockchain built for enterprise adoption is absolute horseshit it's proof of swindle it has never worked will never work stop throwing your money away i don't want to relive 2018. i wrote more about this in the newsletter today so i'll only go over this briefly here you can read the newsletter from for more on this but he is so right i mean i it's frustrating as someone who lived through 2017 2018 2019

saw the hype of 2017 of all these other chains and then saw them completely die in 18 and 19. seeing it repeat itself uh during this current cycle is really disheartening and really saddening because i thought the market had at least wisened up a bit but does the simple explanation here is that we have so many new people you know coming into the ecosystem they don't know what's good and what's bad they've fed a lot of hype they've fed a lot of promises and i don't blame them for falling for this at the end of the day back when i first got into crypto in 2013 i fell for everything like i was just like i mean it was so bad and it wasn't even ethereum back then it was just like forks of bitcoin i was such a noob i think it was like 21

or something like that it's like early 20s i only had a little bit of money had you know rich uh kind of like diamonds in my eyes being like oh my god i'm gonna make so much money and you know no of course i didn't i mean i i didn't i don't think i lost any money i think i ended up just like selling what i had left in bitcoin and just kind of exiting the markets that's exactly what's happening right now a lot of new people coming in they just they you know they obviously see all the gains that's being made they they kind of like do uh some cursory research they kind of find these different things and they're like wow okay you know ethereum has high gas fees and this other chain is promising to basically kill ethereum and like take all the developers away because it's got

lower fees right that's that's kind of like the surface level knowledge and i've discussed this with with various people and that's kind of like their thesis i'm like well guys like that's not the point like i know the fees are bad but that's that's not all that makes a blockchain right if scalability actually mattered for as much as you think it mattered for you know eos would have won because eos launched in 2018 they had like all this scalability and you know that that that's not what mattered right eos didn't win ethereum went on to to grow and grow and grow so there's more to it than scalability at the end of the day but it's a very easy narrative to feed to new people and a lot of the layer one blockchains feed on this right because they want adoption for their own chain they want to pump their tokens

and you know i think it's actually to a point of where it's borderline scammy um you know not to say that all the layer ones are useless right there there are some out there that are actually legitimate projects doing legitimate things um but the ones who position themselves as ethereum killers they're just you know the the the team and the community just bags out ethereum constantly and says that ethereum and they're going to kill it those are the ones that like are just like complete promise chains complete hype they're never going to deliver on anything um so yeah as i said not to say that all layer ones are worthless but there are so many things out there i mean like enterprise blockchain enterprise adoption stuff like it's just like as as arthur says yeah like it's just absolute crap it's not gonna go anywhere there's been

so much money invested into this stuff and it's just wasted it's just completely wasted so i'm not gonna go on ranting a little bit longer there but you can read the newsletter for more of my uh it'll be linked it's linked in the youtube description of course for more of my um kind of thoughts on that but yeah i mean it's just it's it's pretty pretty frustrating as someone who's been in this ecosystem and especially as a as an educator right i mean i try so hard i do the newsletter i do this video every day i'm on twitter all the time i'm talking to so many different people like i respond to pretty much everyone that dm's me on twitter unless that's like a straight up like you know asking me for investment advice or whatever um i respond to them as best i can but

again i can't reach a lot of these people there's a lot of big youtubers out there who are just shilling everything to their followers because they're just making money off them and i frankly i think that's disgusting and i'll and i will never do that i'm never going to show you guys like any any tokens and i always disclaim when i'm when i'm an advisor or an investor to a project um but you know a lot of people just do it right they just do it because they can uh so it is what it is i'll keep going i'll keep educating of course and and i hope you guys stick with me you know while i keep doing this and i hope that you you know you pass on this education to your friends and family and anyone that you have an audience with because it's going to take

more than me right it's going to take an army to to keep growing ethereum to keep kind of fighting back the enemies that ethereum has and the people that want to take ethereum's market share away i want to kind of like kill ethereum so yeah we're all part of that and you know i'm glad to be on this journey at the end of the day this isn't like a bearish thing this isn't me saying i'm going to exit the ecosystem or anything i would never do that um but just me saying i think that we need to do better on the education front for sure so lastly here a bit of positive news to end the refuel on i know i've gone over time here but i did want to mention this so git coin grants around nine and as i've been going on for a while

it's ending very soon i think within the next day or two um so definitely get your donations in but what i did want to highlight here is that there has been over 130 000 contributions from over 9 000 people and over 1 million dollars has been raised by the community which is absolutely amazing this breaks all the previous records it's amazing that we have over 9 000 people donating here um because this is a very like i guess ethereum community-centric thing where you know i don't expect that many kind of like people that spend a lot of time in the bitcoin community would be using git coin right all the people in the quad on quote crypto community aren't using get coin but the fact that we're growing to this kind of number is just amazing this just shows me that there's like almost 10 000

like super active ethereum community members because and by super active i mean like people that like spend you know every day or every out every second day in the ecosystem paying attention to what's going on trying to add value right donating on git coin grants like they've done here just absolutely amazing so kudos to everyone who donated here and of course thank you for donating to the daily gray and to ether as well i mean obviously i'm i'm one half of ethan and we really appreciate that but yeah just like if you haven't yet definitely go get your contributions in before time's up um but you know there's going to be around 10 in a few months as well so you know you can give then as well so yeah really really positive kind of uh kind of movements here with git coin and absolutely love that the communities

come out in a big way for this all right that's it for today everyone thank you again for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up join the discord channel subscribe to the newsletter and i'll catch you all tomorrow thanks everyone