Uniswap v3 hype, L2 bridging coming and more - The Daily Gwei Refuel #83 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 23rd of march 2021. all right guys let's get into it so just a quick shout out here i put out this out on twitter just before but basically if you haven't visited the ethereum.org website lately i highly recommend that you do uh there is so many resources and so much information on that website now it's actually incredible and it's a beautifully designed website too i mean i can open it up here to give you guys a bit of a bit of an overview right a bit of a teaser i mean i i think i've shown it on the refill before basically but you know the website's also available in a bunch of different languages you can

see here this there's it's not just english you know it's basic i think um native translations for these languages and all these sorts of things um and then yeah i mean there's so much info you can click learn up here and learn about basically anything and it's not just you know uh kind of like your standard info they've actually got like a ton of stuff in here especially geared at kind of like newbies as well um and kind of like let you click through to exploring defy apps if you're in the d5 section and stuff like that i mean this is awesome right i mean it's absolutely incredible uh and you know if you haven't been on it lately you definitely should um and on that note actually it's funny because there's a bit of history here with with ethereum.org um i think up until recently this is

only a recent thing maybe the last couple years or so that the redesign kind of happened uh but up until then the ethereum website was still uh kind of like what it was from 2014 i think um so it didn't get updated for quite a while and it had a bunch of like outdated information on it didn't have kind of like any of the new information and that's actually one of the major reasons why ether was started is because you know people kept kind of like saying you know they need to update this website i need to get it done and and it didn't get done for a while um obviously it's gotten done now but you know to fill that kind of void in that hole uh eric and i started ether that's one of the major reasons we did um and and kind of like uh i guess like

since then the website's been updated here they actually use ether's information to to kind of relay off this site and kind of link to and things like that which is really cool but yeah just a really really cool thing to see that this website got the love that it deserved because this is the first thing new people see when they search ethereum like the first google result uh the last time i checked at least is ethereum.org so you know we didn't want to be funneling the the newer people into an old kind of website that's still mentioned like the term world computer that no one uses in ethereum anymore so the fact that they've got a really really great resource here to to learn from and it's available in in many different languages is just really positive so yeah kudos to the ethereum.org team for

this i think it's really important and and you know i really like what they've done here so i think the biggest bit of uh i guess like news today was uni swap uh put out a unisop v3 teaser on their twitter profile now uh you know unison v3 is the most hyped thing ever at this point you know i i don't think you can get any more hype than this i mean look at the engagement on this like over 500 000 views over 10 000 likes you know it's very rare for an ethereum kind of related tweet or to get to get this much engagement but it's absolutely it's you know amazing how much engagement this got and that's because unisop has such a a kind of like big brand awareness behind it right you know everyone knows it especially because the the uni airdrop is basically

um some of the the the best air drops ever in in the ethereum ecosystem because so many people got it uh but basically they did this whole video and teased v3 which was which was quite cool i mean at this point it's like are they just going to release it this week because if they're releasing this today or yesterday sorry which was monday you know can we expect them to release v3 this week they also had like i mean you can see it here in the video there's a teaser and they taste some logos here the pig is actually teasing unipig which is a layer 2 demo they did a couple years ago with optimism so they're teasing that there's a red fox here which i assume is metamask there's another logo here which is actually for cyber.org which is like a governance related website

so and then at the end they spell like v3 out in the stars and stuff i'm sure you all saw this this teaser but yeah i mean i think we can expect v3 any day now and i mean i don't know if it's going to live up to the hype i've said you know what i what i think that will live up to the hype if they do a kind of a dual kind of release on layer one and layer two so obviously put v3 on layer one and then have it on optimisms layer two as well i kind of have a theory that may on it play out that the univ3 is ready right it's ready to go but they're waiting on optimism to kind of release their main net uh before they before they release univ3 so they are very close with the

optimism team like the uniswap team and ud swap's uh main backup paradigm or main investor paradigm is also very close with both teams and they you know the the paradigm isn't just like an investment fund they have like some of the smartest people working working there so uh they obviously help a lot with with different sorts of things here but yeah i guess um you know from from this kind of note here i would say that univ3 is dropping any day now you know it may it may even drop like before you watch this video i don't know maybe it drops today who knows but i i think you know they wouldn't put this teaser out uh like this if it wasn't dropping soon because if you remember back to when hayden teased the the uni token it was six days before it released so he

teased it on twitter he said pretty colors and posted a picture of kind of like a logo of of the uni token and then six days later the uni token was live so maybe you know i guess maybe it takes six days maybe it takes till next week but i would expect v3 to go live any day now and i mean just get it over and done with right we've been we've been kind of like uh i guess awaiting this for so long now hayden keeps hyping it up everyone keeps hyping it up there was a meme on twitter today about you know what v3 does and what it enables so yeah we'll see how we'll see how this goes for sure so alpha finance uh announced today that uh their alpha tokenomics the staking and more will be launching in the coming days now this

has been in the works for quite a while i think this is being quite hyped up as well um and basically uh you know this this this kind of token becomes productive now the alpha token very productive within the alpha system uh and you can use it for different sorts of things on layer one and layer two and different chains and sort of things here as well across their various products and stuff like that uh and you know uh depending on and there's also kind of like alpha tiers as well so depending on how many alpha tokens you stake you'll be in one of the five alpha tiers the more you stake obviously the higher tier you will be in um and then you can unlock unique features and and kind of like unique um you know unique products within the alpha finance system so

yeah cool to see more experimentation being done on the token side of things you know there's a lot of teams doing tokens these days but a lot of the tokens leave much to the imagination you know a lot of people just say okay governance token fee capture token that's it right when there's so many different things we can do with tokens i mean one of my favorite token designs is actually are there and how they do different things like you know you're staking it right to earn a fees on the on the platform but you're also acting as an insurance pool uh so either token stake that is like an insurance pool so yes you're getting the reward but you're also um taking on the risk that your assets may be sold if the platform i guess essentially loses money for some reason or becomes

undeclarable or needs to kind of re uh kind of re-collateralize or get more liquidy into the system so yeah i really do like ave's mechanism and i think a lot of tokens are trending towards that over time um you know it's funny because there are some tokens that just won't change like mkr i actually think mkr is a funny thing because the mkr buy and burn mechanism actually makes a lot of sense because it puts constant pressure on the mkr token you know from from maker system revenue but a lot of people don't like buy and burn what they do like is they can earn so you can imagine if if if maker had a kind of i guess option for you to stake your mkr tokens and then earn the system revenue like that instead of going and buying and burning mkr

i actually think that that would be a better thing than buy and burn because when you think about it with a buy and burn there's no token lock up right there's this the tokens are free kind of trading they're they're on exchanges they're in people's wallets whatever right they're always liquid whereas if you did like a lock up what kind of like i guess what curve does um where you lock up tokens and depending on how long you lock up you get more system revenue right um all these sorts of things uh i think that is the better model and i i think that's what kind of like alpha's doing here that's the kind of what like aves always doing with the with the lock up another lock up side of the staking um and you know it's shown in the markets right like make it isn't

you know i guess a low cap coin it's like two or three billion dollars but i think that it would have an even much higher market cap considering how much system revenue it generates if they were a stake and earned model but maybe that doesn't matter in the long run maybe you know eventually we have enough people coming in who are like wow this this protocol is generating so much revenue and it's going and burning it's it's token like let's let's get some of this so yeah we'll see how that plays out but um you know i'll link this thread on alpha's token that you can find in the youtube description so you can go read the whole thread for yourself so the documenting ethereum account on twitter which i recommend following by the way put out this tweet and i was quoting um santiago from parify capital i've spoken

about before but basically what he said on uh i think he was on a podcast he said ethereum is a perpetual call option on human creativity and innovation and i mean i couldn't have said this better myself you know if you're betting on ethereum and you're buying if you're buying different kind of like tokens of ethereum based projects and things like that you're betting that ethereum you know it keeps innovating right it keeps growing it keeps i guess like coming up with all these kind of new ideas of how to i guess improve the ethereum like protocol itself but also improve the different apps you know scale up to you know billions of of users i mean we're not even at millions of daily active users for for kind of i guess like d5 product protocols at this point not even close

so when you take that into account right it's kind of hard not to be bullish because if you really do believe that ethereum is going to deliver all this value you know d5 is going to take over the traditional finance system and replace it and then how can you not be bullish at this point so you know and you basically yeah by by being in ethereum by being betting on eth you are kind of like you do have this call option on human creativity and innovation so i thought that was just a very uh kind of like powerful way to put it and it's exactly been my thesis for a lot of the years on ethereum and eth and you know big part of my thesis has been the developer ecosystem which falls into that because the developers are the one who once mostly who come up with the innovation

right and the human creativity but we also have a lot of creativity in the nft space for example too right so you know i think just betting on on all of that happening on ethereum is is a good bet to make and you won't regret it i think at the end of the day uh you know i i know i don't so hot protocol uh officially announced i guess like i mean i don't know if they were like in fully full stealth i remember they had a white paper that they released but they've kind of announced that the um you know their protocol is being audited and will be live on mainnet next month now for those who don't know hot protocol is uh going to be a protocol for sending tokens across different roll-ups aka layer twos on ethereum and uh different layer one network so

they're going to be supporting optimism arbitrary polygon and xdy starting next month so you know i know that um connexxt is doing this as well and i'm going to talk about connects in a sec but this is just another team kind of focusing on this and this is actually the team behind ethereum which is an ethereum wallet um that some of you may be familiar with but i mean it's good to see these solutions coming out you know i've kind of gone over the different solutions now you know i remember showing you guys that uh make the make a dow community came up with an optimism uh bridge to bridge from like i guess layer two to layer one in a very fast kind of manner arbitrary is using connect uh networks technology you know there is um there is also i think like some other

tools out there right now that are maybe in alpha that are kind of live but hot protocol is just another one that kind of goes into the you know puts the hat in the ring here because this is this is a critical issue right a critical problem where we need to open these lines of communication between the different layer twos and the different i guess quote-unquote side chains so the liquidity can flow freely through all of this stuff and through the ethereum layer one network as well and that the users don't have to worry about it so yeah really cool to see this from hot protocol and you know on that note connex actually announced today that they've um well yesterday sorry that they raised the 2.2 million dollar seed round led by uh some big investors poly chain capital 1kx network hobby global and i think a bunch of

different kind of angels as well so yeah i mean the connex is doing something similar to hot protocol but they've been doing it for for a while now i think they've been doing it for about four years um where they want to bridge all the different chains together all the different l2s together and they have um i think they have uh uh a bunch of stuff going live tours going live soon as well um in terms of like cross chain exchanges cross chain bridges you know all this sort of good stuff and you know you may be thinking is this does this include like other layer one block chains right and yes it does because polygon and um you know at least matic network and uh and xda are like separate layer one block chains even though we call them side chains

you know they have their own validator set sort of thing so from that from that perspective yes but also um they'll be able to bridge like any evm compatible network so you might have seen this term flying around and there's a bunch of them right i mean bsc it has had so much kind of like uh i guess growth you could call it um or kind of like users moving over because it's just very easy for bsc to copy anything in ethereum because it's evm compatible uh same with i think phantom as well that andrei's been talking about and there's a bunch of other networks here they're all evm compatible but at the end of the day i mean i do think the layer 2 ecosystem is going to win out um you know in the end state so we still need this for the layer 2

system even though there's bridges between the abm chains even if the avm chains you know besides ethereum just die out which is a very real possibility that they do we're still going to have this technology um for layer twos you know communication between the different layer twos fast communication between layer two and layer one which is sorely needed uh it's it's a huge problem i mean a huge thing that needs to be solved and i'm glad to have multiple teams working on it not just one because you know if we only have one team working on it then you know there's it's a lot slower to get things done you know there's no competition there's no kind of like fire under their asses so to speak to get them to to get to maine and things like that so i think now that there's competing

standards here and people have realized that i guess the winner of the the or at least like the the project that takes the most market share here in the bridging world is going to do very well so i think that's why we're seeing this kind of like uh resurgence here of these kind of technologies because now's the time that we need them basically and you know connex is hiring so if you want to go join you can go to jobs.connect.network and i actually think hot protocol maybe hiring as well uh yes join the team you can reach out to them so yeah these are both hiring i mean pretty much everyone's hiring right now so you know if you if you don't have a job in crypto and actually wrote about this yesterday in the delegate newsletter there's never been a better time to to

work in crypto especially ethereum ecosystem than there is right now so if that's something you're interested in you can go and and you know literally any team or every team right now in the ethereum ecosystem is hiring so there's no shortage of roles there so the ethereum foundation ecosystem support program put out their q4 2020 allocation update so they ended up paying a bunch of different grants to a bunch of different teams so you can see here that there's a lot of community and education that got funded here like uh the truffle suite um they they sponsored truffle con 2020s virtual developer conference uh you know i mean there's so much here cryptography and zero knowledge proof research and i mean look at it look at this list right there's just so many people that

got funded from the ethereum foundations which is really cool including eth1.x work and ethereum 2.0 work um and and kind of like developer experience and tooling so yeah really cool to see this obviously this will be linked in the description you can go check it out and see kind of like what teams got what and see you know what what it's all about because i think you know these grants are all well and good but you want to i mean i'm sure that the the support program knows what they're doing and knows what they're giving the grants to and everything and they've been doing this for quite a while now but it's always good to kind of like i guess go through and see kind of like who's been given the money and like the total given away was over four million dollars so you definitely want to see you know

who's been given the money what their projects are doing how you can maybe help as i said lots of projects hiring right now and even if you're not looking for a full-time gig you can probably jump into any number of projects as just part-time or casually and help out maybe get paid some tokens if they've got a token or something like that or if you just want to do it for free you can do that too so definitely a lot to do right now in the ethereum ecosystem so justin drake continues his uh i guess i wouldn't call it shilling but i guess like a memeing with the ultrasound money thesis and you may have listened to the bankless podcast yesterday with justin drake if you haven't yet i highly recommend going listen listening to it it's i think it's about two hours of like pure bliss

pure ethereum bullishness put pure eth bullishness around this ultrasound money thesis now i mean i've explained it before it's basically the thesis that each supply is going to become deflationary due to the fee burn uh and what justin drake is doing here with this with this chart is he's basically mapping out kind of like the eighth uh per day that would be burned with eip1559 and kind of like what sound barriers where we're going to be breaking and these are kind of a little bit arbitrary i think but he's put them on this chart where he says we're going to be we've already broken ultra ultra mark 1 and then ultra mark ii we've done as well and then we're on to ultra mark iii and ultra mark ii basically means burning over 6 000 eth per day if erp 155 numbers implemented which it will be soon of course

um and i mean yeah i've spoken about this a lot on the refuel right where i think that eventually we're gonna get to a day where billions of dollars of fees are paid and and that so much is being burnt that it just becomes like such a an awesome deflationary uh kind of asset here but you know he does make some assumptions here as well on the bottom left you can't see because my camera is blocking it but he assumes that 20 million each is staked and there's a 70 percent fee burn so if 20 million eight is staked i actually think that the issuance goes up to maybe point eight point nine percent on eth2 um and then he's assuming that there's a 70 fee burn here so if 70 of all the fees are burned we could still get to a point where

we're actually burning more uh than we're issuing each day which means you know it becomes this deflationary asset aka ultrasound money which is really really cool so yeah as i said i highly recommend going and uh what uh listening sorry and watching actually there's a video too the justin drake podcast slash youtube video with bankless because he explains this thesis i mean he goes deep on this sort of stuff and he uses so many analogies that i really really liked but uh basically i think you know this is something that a lot of people are still sleeping on i know i talk about it to you guys a lot on here but you know i don't reach like tens of thousands of people right or hundreds of thousands of people and i think that eventually when more people clue into this and clue into um you know how heath is going to become

a deflationary asset they're going to realize that it's like why aren't i kind of like oh why don't i own a sort of thing and that's been a big part of my thesis on ethos and asset for a long time is that the information asymmetry is pretty bad where you know a lot of people don't have the information available to them right now about eth they still think it's like an uncapped coin so to speak where i think they couldn't be more wrong by that but the only way i think to convince people is to just show them over time right once we get fee burning in we're going to be showing that we're burning fees i mean right on main net there's there's on chain proof of this and then when the merger happens we're going to be showing that we're potentially you know

and i think there's a higher chance we're going to be burning more fees that are being issued each day now couldn't you imagine the kind of headlines that that's going to you know generate especially the mainstream media i do think mainstream media will cover it too because they already have covered eip1559 because it's such a popular thing thing to talk about but basically you know there's no denying it at that point you know not even bitcoin can hold the candles that say oh we've got we've got a cap supply in it but it won't be you know fully capped until 2140 right but then we can say well we're burning more ethan we're issuing each each day now or each month or each year right which means we're a deflationary uh token which means we're we're basically on our way to being more scarce than

bitcoin or already most guests than bitcoin so not to say that it's a zero-sum game but i do think that once more people realize this and once once more people realize that at one point there's just not going to be enough eighth for everyone right there's going to be in e2 that's perpetually locked and you know in there for for you know a long long time i mean i have a a stash that i'm gonna you know i haven't put all like most of that stash into eth2 yet because of the long kind of um lock up i put i i do have some obviously staking but um you know when we have the merge and everything i'm planning to put like this this perma east stash just in staking right and that's just going to earn me some some passive income and stuff like that and then obviously

i'll earn fees out of that too not just the issuance but or at least some of the fees right not all the fees because some of them will be burned um but you know there's that then there's the the public companies gobbling up eth right then there's also a uh d5 gobbling up eth right and then just people holding it in cold storage there's so much of that going on i don't know i just you know i know the price action's been a little bit bit bit shitty lately but like this is just short-term stuff long-term it's it's incredibly bullish so yeah i'm glad to see justin drake pushing on this ultrasound money thesis and obviously the bankless guys do it a lot too and i've been tweeting a little bit about it because i think more people need to be aware of this and you know i do want to

do a video on this at one point uh basically kind of like breaking this down for people in in plain english that kind of anyone can understand because i do think sometimes it's hard to understand some of the stuff that we talk about in ethereum well most of the stuff that we talk about so breaking it down into like bite-sized chunks where people can actually get a grip of what what's happening here i think is very important so etherscan added a new feature today uh basically you can now see the minimum or maximum amount of tokens you'll receive in a unisop or sushi swap trade and when the swap will expire in the kind of pending transaction view so you can see here that while the transaction is pending you know you can see down the bottom it says swap 53 uni for 12.9 torn um oh sorry for at least 12.9 torn

so i would say it says to you'll get at least 12.9 um and then the swap will expire at this time here so just another quality of life feature that uh etherscan has added here they are the absolute best i mean either scan is free obviously there's ads on there but it's free right i mean even if they charged a monthly subscription fee to use it i would pay it i mean i use ether scan every single day um you know without fail because i mean i'm pretty sure we all do right you know even if we're not doing transactions we still look at other people's transactions we still look at our addresses we still look at our balances and things like that yes there's pretty dashboards for all that stuff but a lot of those dashboards won't show you the kind of details of

different transactions right and obviously etherscan helps a lot for tax purposes too to work out how much you kind of owe there um but yeah i mean i i just i can't believe how much of ether scan is just like sorry how many features etherscan has considering it's free ah just amazing so yeah definitely a a welcome kind of quality of life improvement here so arthur xerox put out a really great tweed thread just before where he took a data focused look on eth and and he goes and says that each role within the ethereum ecosystem is becoming more significant over time and currently being used as a non-speculative asset more than ever and he puts together a mini thread here he basically said that the amount of each sitting on centralized exchanges has reached the lowest level in the last 19 months and i remember

talking to you guys about this in the context of um the eth kind of going into smart contracts here and i actually wrote about this on on the delegate newsletter but i also spoke about it on the refuel and as you can see on this chart ethan smart contracts has just rocketed up it seems kind of like d5 summer right and exchange balance has gone down because of that and also because people are withdrawing to cold storage and things like that you know the smart contract balances doesn't just include d5 it includes the gnosis safe multisig wallet which i believe have has over a billion dollars worth of ether in it right now so there's that and then he also you know says that the amount of eth locked in eth2 is at 3.56 million but increasing steadily you know it's kind of like flattened out here but it's still

increasing you know steadily over time and obviously once we have the merger in that's just going to increase even more because there won't be a kind of lock up anymore there and that represents three percent of its supply and then he goes on to say all about all of the above combined with the implementation of erp-1559 and accelerate a timeline of proof-of-stake merging should further increase the value of eth the future of ether looks bright to me and i mean same with me like i i just i mean i just smoked about kind of like justin drake's ultrasound money faces here and why the future of it looks kind of very bright from that perspective or at least from like a i guess scarcity slash issuance perspective but i would also say it looks bright from a utility perspective right because it's just it's being used to power d fight there

is 9.3 million ethan they're being used as collateral as exchange pairs you know as as as money you know the nft six nft ecosystem is powered by eighth priced and eath you know um you know a lot of uh oh sorry obviously eth2 is powered by eth i mean there's so much going on right now and the fees being paid to like with ether as an asset it is just so amazing like how how many different roles it has and how much demand there is for this asset that i just can't help but believe that you know the same as arthur here that the future is extremely bright we have so much to look forward to when it comes to not only the ethereum as a platform but ether as an asset and as more and more time goes on i believe more and more people are going

to clue into this and they're going to realize that what they've been sleeping on is this amazing asset because every time i explain this to someone one-on-one they're like holy i had no idea right because this as i said this isn't i've said this before on the refill sorry where this is not something that is easy to explain like the like the bitcoin kind of thesis because you can say to people well bitcoin supply is capped at 21 million it halves every four years and here's the current issuance rate right with eth you there's so much moving parts right now i know it's it you know people hate the moving parts but i actually think it's a positive thing but basically right you have to say to people okay well each supply isn't capped right it's supply uh will never be capped its current issuance is four

percent on proof of work uh but then when we move into a proof of stake it'll be under one percent and then we have this thing called erp-1559 that's coming in that's going to burn eth and then eventually you know we're going to burn uh more ethan is being issued when the merger happens with eth2 and then um you know we're going to get to a point where he's deflationary and then all of that they're just like okay you know especially if they're newer to the ecosystem they're going to be like okay well explain all those steps to me again because each one of those steps requires a full explanation but if you have people that are already in the ecosystem and have at least surface level level knowledge of this they do kind of get it straight away from from my experience which i think is really important

and that's why i kind of keep bringing it up on the refuel too because i know there's a lot of you guys who may be newer to the ecosystem that are watching or may not know about this kind of i guess monetary policy plan for ethan the future and i just i i think it's important to keep keep you all informed so yeah great thread from arthur here and if you're not following him on twitter yet uh you're missing out he does a lot of great threads and he's i've said it before but he's one of my favorite investors in this space he takes a very very long term look on things he has great ways of of looking at different kind of default tokens and things like that so yeah you're missing out if you're not following him but i assume most of you

would be following him at this point so yeah all right everyone that's it for today thank you again for listening and watching be sure to subscribe to that channel if you haven't yet give that video a thumbs up join the discord channel subscribe to the newsletter and i'll catch you all tomorrow thanks everyone