WSJ covering DeFi, DEX volume growth and more - The Daily Gwei Refuel #135 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the deadly grey refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the third of june 2021 all right everyone let's get into it so yesterday um walter bloomberg here who basically is a twitter account that uh monitors the bloomberg terminal uh put out an update that google is going to uh begin letting advertisers offer cryptocurrency uh kind of exchange ads and while it's targeting uh the us so um some of you may remember from like a while ago maybe it's been a while now like a few months maybe a year plus ago um google uh was banning kind of cryptocurrency ads on their platforms and i think facebook were it was as well and there's a bunch of

that going on but now beginning august 3rd uh people will be able to kind of like advertise cryptocurrency exchanges and wallets and and target uh target the u.s users as well by doing this now you know you may be wondering why am i talking about this well i think this is quite bullish right because at the end of the day the advertising is a you know part of like this entire ecosystem marketing everything like that um and you know doing pay running paid ads um you know using google services uh like you know youtube and google search and things like that is a huge funnel for for new users especially those who may not know how to buy crypto and they might just google you know buy crypto or buy bitcoin or buy ethereum uh being able to advertise there would actually bring it be a huge revenue

driver for google for for starters and also be able and for for people that want to advertise their services be a huge funnel for getting new users to come in now i think that maybe google is doing this because uh maybe they found a way to kind of re-enable it without having to deal with the regulatory headaches of kind of this sort of advertising uh and secondly they may be seeing like the demand on their side of things like the analytics that they run where they're seeing how many people are actually looking at crypto and kind of done like a cost-benefit analysis on it and realize that wow okay we need to re-enable this we need to we need to allow crypto services to be able to advertise on our platforms because there's a lot of money kind of being left on the table here so

i thought that was really interesting i think you know i mean personally i run ad blocker so i don't really see many ads on the internet but there are tons and tons of people who don't and you know there's a lot of people that i've noticed that and maybe older generations who don't use ad blockers i mean pretty much like every i mean it doesn't have to be that old like everyone over the age of maybe like 40 that i've ever helped with a computer issue they don't run ad blockers like and not to say that it's just exclusive to older people there are definitely lots of young people that don't either but i think that you know the older people are the ones that kind of like adopt new technologies a bit later on in their life cycle so i'm pretty sure like say if coinbase

wants to do an ad on google services they would be targeting that age group especially because you know as they come into crypto they want an easy way to buy they don't they're not going to be using unisop or anything like that for quite a while so allowing them to to kind of buy from coinbase is is that in is their kind of like front door here and i'm sure gemini and crack and all the other us-based exchanges will be kind of advertising here as well but yeah i thought that was quite bullish it allows for more people to come into this ecosystem whether that's just to you know i guess uh buy some crypto from an exchange and just like have it sitting there that's still getting more and more people involved in crypto and inevitably some of those will will fall down the ethereum and d5 rabbit

hole which is what we all want uh and coinbase uh especially especially in the us is more is very aligned with ethereum and d5 so that's another positive aspect of this so yeah really cool to see this uh kind of from from google here so the wall street journal put out a piece today covering ethereum and d5 here now this is huge i mean the wall street journal is a very big publication specifically in the us here so anything that they kind of publish is going to get eyeballs on it but basically this piece covers d5 you can see the really nice um ethereum kind of header image here uh with the ether logo splattered everywhere and in this piece i mean i won't read the whole thing too you can go check it out i'll be linked in youtube description but in this piece they basically

describe what decentralized finance is kind of what it's offering you know how it all works how it's been growing over time you know the fact that most of it is built on ethereum right now um and how it compares to like its centralized counterparts and things like that and i think they briefly touched on nfts as well if i remember correctly from this so this is really cool i mean generally mainstream media has been pretty crappy at covering crypto uh you know there's there's plenty of articles out there that do like a very poor job of not only covering kind of bitcoin but covering ethereum specifically where they may kind of like mention that it's something to do with bitcoin even though it's it's got nothing to do with bitcoin it's got everything to do with ethereum but they may be doing that for for

clicks right like seo and stuff like that and and you know more people recognize the bitcoin name than ethereum and i get that but at the same time when you're a journalist or like you're a publication like this you have a responsibility to inform your readers and and you know be be truth back based and fact based here so it's good to see that that this piece from the wall street journal is doing exactly that rather than being kind of like trash i guess like media that i've seen a lot of and it's always funny when i read the comments here um you know sometimes i read the comments on these kind of posts to see what people are saying uh you know and one person was saying here that everyone thinks d5 stands for decentralized finance when in fact it stands for degenerate finance um

you know obviously because of like the the kind of yields being high in in d5 due to people wanting to go like leverage along on assets and things like that and and and stuff like that and then this person's calling like you know 20 21 the year of the bubbles by you know because the freddy's printing it's producing like the you know results like defined things like that i think once again missing you know the forest for the trees people like to do that a lot right uh where they're kind of looking at the speculative side of it and thinking that you know that's all it is it's all it's it's only the casino um aspect of it that's all it's going to ever amount to and i think that generally people if more people knew how the traditional finance work they would view it in the

same way it's just that d5 ethereum crypto makes it all very transparent i mean if if any of you have seen the movie the big short that covered the what happened in 2008 with the big crash and how that came about that was that was really got to do with like a speculative mania and degeneracy if you want to call it that and kind of like all this dodgy stuff going on um whereas within you know define within crypto you could say that there's like obviously a ton of speculation there's a lot of gambling and stuff like that but i think the the main positive is that we can actually see what's going on we can account for everything we can see if something's under collateralized we can see if some protocol um you know it doesn't have the money that it's supposed to have it's all

enforced by code and by math and by smart contracts and whenever something goes wrong we can see it happening straight away there's no need to wait you can't sweep it under the rug it is all on chain if you're if you're on chain then everything that ever happens to your protocol is viewable by literally everyone in the world they can simply either go to one of the many block explorers out there or they can spin up their own node and monitor the network themselves if they want to so i think that right there is like the the kind of 100x improvement um over the traditional system already in the fact that it's transparent and that comes with its trade-offs the trade-off being that everyone can see all the degeneracy going on everyone can see that people are speculating on random erc20 tokens with silly names and

dog tokens and all that sort of stuff but if you were able to see kind of like what goes on on wall street as transparently then you would probably then these people sorry would probably have the same opinion as they do of of d fight i think they already do i think wall street in general has a very bad reputation not the wall street journal but like wall street you know um where all the kind of like financial um services run out of and all the the kind of like stock market trading goes on and things like that i think generally that's not viewed very well these days but for the longest time it was uh and people didn't really realize what was going on there until i guess post 2008 a lot more people woke up to it and these days i mean the

stock market looks it looks even worse than crypto i'm sure a lot of you have seen what's happening with am the amc stock and it's this trend of like meme stocks where people get on like tick tock and and anything that's on robin hood they're just going to speculate on and kind of pump it up through through memes and things like that it's got no basis in reality and a lot of it does have to do with i think the federal reserve printing and just central bank printing in general there's a lot of free money floating around there's a lot of inflation going on and that's going into assets like stocks and crypto and property and all this sort of stuff so you can see inflation playing out right before your eyes you don't need to kind of like have research done on this everyone can see this and it's not only

playing out in those assets it's it's playing out and kind of like um you know prices for for groceries and prices in things like like cars and i mean the used car market in in in australia has has ballooned like it's gone crazy and properties as well and things like that so i think that's got a lot to do with it as well but still good to see the wall street journal covering this it was a quite a quite a nice piece they did go through some of the negatives of um what's happening within this within the industry and kind of like but like you know also going uh covering sorry the value prop of it as well so yeah i guess kudos to the wall street journal for covering ethereum and d5 here so justin drake put out a really interesting kind of like flowchart i

guess you could call it here um where he starts and for those who list listening you might be able to see this but it's linked in the youtube description but this chart basically starts from a kind of like bubble here that says eighth price appreciation and then this is what what that leads to so it leads to a bunch of different things legitimacy by performance and economic bandwidth each stake appreciation and ef treasury appreciation now from legitimate legitimacy by performance that gets press covering you know ethereum uh and and kind of like d5 all that sort of stuff it attracts more builders and attracts more users then this leads to more on-chain activity which leads to more fee burn which leads to more monetary soundness which means to more eat-staking inflows

which leads to an increased cost of a cost of attack which finally leads to ethereum security um now secondly here we've here we have economic bandwidth which which leads to like aether's economic bandwidth so eth as um use within d5 for example uh as collateral within d5 this obviously leads to more on chain activity which also leads to increased staking rewards um with which which leads to each taking inflows increase cost of attack ethereum security again and it also leads to the fee burn kind of aspect to it as well now the next point here is eighth stake appreciation so obviously as the eighth price goes up the security of the beacon chain goes up because the uh i guess costal attack goes up uh so that's that's what the flowchart is

showing here and then finally ef the ethereum foundation treasury appreciation aka as eth goes up in value the ethereum foundation has more money to spend on things like research and development for the ethereum protocol which again leads to increased ethereum security here so um this will be linked in the youtube description for those who want to check out the flow chart for yourself but this is exactly what myself and a lot of other people in the ethereum community have been saying for years in that if the price going up is good for so many different reasons it is not just good for making people rich or making people lots of money right that's to me that has always been like a positive side effect i think the real kind of value add is exactly what justin drake is pointing out in his flow chart here

in that all of this leads to higher security for the ethereum network which is exactly what we want because as justin drake points out here the goal of um at least the e-2 effort is to have world war iii grade security which means that if there was something like a world war another world war which decimated a lot of the infrastructure in the world um the ethereum network should be able to either continue um running or be able to be bootstrapped again with low trust assumptions if for some reason it went offline due to due to any number of reasons and it should be incredibly hard to attack the network by any kind of like nation state or any kind of actor out there uh and that all goes back to eath price appreciation

at the end of the day because if the eighth price is at 10 bucks or like i mean you should really say market cap i guess but like for the sake of the argument i'll just say if the eighth price was ten dollars could like the network security would be very very low it'd be very cheap to attack it um you know the the kind of like press coverage would be like non-existent the builders would be very kind of like essentially non-existent too uses the same kind of boat here um the economic bandwidth would be very low what we could use within d5 and things like that um so from that perspective you know you can even look back at when eth was ten dollars that was the last time eighth was ten dollars was uh early 2017 and i know 2017 was a pretty big

bull market but early 2017 you can go look at all the metrics uh the uh for the ethereum network they were very very low the ethereum network was hardly being used it was essentially almost a ghost chain you know if you kind of like can call it that uh but you know and the same player plays out for 2016 and even if you go back to when ether was like a dollar in 2015 the network was basically you know typic very much a ghost chain there was nothing happening on there now as the price was going up network activity increased you know we had more builders more users all that good stuff and then it kind of um feeds off itself as the eth price goes up it attracts more people as more people come to into the ecosystem you know these people buy eighth eighth price goes up

more people come in blah blah right it's just like this this constant cycle that plays out again and again and again um and and it all traces back to the eighth price going up that's how we get the most users in this ecosystem and it's not just eth right it's also all the other assets in kind of like the ethereum universe and outside of it too whether any of these assets going up just brings in more people and that's why i've always said that i think that even though it's annoying to see like something like dogecoin going up and like a lot in value when it's just literally just a meme coin it is very positive overall for the ecosystem because it does a very good job of bringing in a ton of new users and these users you know not all of them maybe most of them will just come and

kind of like gamble on dogecoin and then go away later but a lot of them will will stay will stick around we'll get involved with things that you know mean something like ethereum like defy uh and you know of course they got these ones these people are gonna buy ethan as well i mean you'd be hard-pressed to find anyone who spends time in the ethereum ecosystem that doesn't own eighth at this point and i think that's another important point is that in in crypto generally it's it's actually pretty wild how much of a crossover there is between the owners of the platforms and the assets and the users because for every user out there pretty much all of them would own the assets of kind of like the things that they use if you use ethereum then you're going to own eight even if it's just to pay for

gas fees even if it's just to use it as collateral so you can do some some fancy stuff within d5 you're still going to own eth now if you have to kind of use like a bunch of other apps out there or if you have to use the internet you don't have to own any kind of like asset right if you want to use like um an iphone you don't have to own apple stock and you don't have to do you don't have like technically you don't have to own a token of a default app that you're you're kind of like um uh i guess like interacting with but the point is is that there's much more kind of owners um and users in the same bucket than there is in kind of like the web 2 world so i think that's another important point

here but a really great flow chart from justin drake here that shows exactly what a lot of us in the ethereum ecosystem has been have been saying for quite a while so definitely go check this out it will be linked in the youtube description below so i mentioned i think last week or the week before that alchemy uh and basically an infrastructure provider for ethereum similar to infuria announced that they were supporting arbitrim well that support is now live already this is crazy right i mean arbitram uh launched last week with their developer mainnet and now alchemy is ready and and live for developers to tap into and all the developers currently building on arbitrom in anticipation for the public release in the next couple weeks or maybe a little bit longer than that maybe it takes over the next few weeks but still this

is really really cool because these as i said i think i said it last week these are the core building blocks that need to be in place for these things to be used you need these things um you need stuff like the graph you need stuff like alchemy and fuhrer you need things like etherscan or block explorers in general to be able to service end users and give them that really great d5 experience that they're used to otherwise end users would have to run their own full nodes right they would have to basically tap into that using their own kind of um metamask wallet they would have to basically directly interact with the smart contracts you know if there wasn't a front end or things like that they would have to manually calculate a lot of their a lot of the things are happening on

these front ends whereas services like the graph and alchemy and infuria or do this kind of like all for you where you can query things you don't have to use your own full node um which but i highly recommend that you do um you know you don't have to but i highly recommend that you do for added security here if you can uh and also getting all the information like really quickly on the front ends a lot of that is supplied by the graph like a lot of you may have noticed that i think the graph went down maybe it was a little while ago now it's probably six months ago or something like that uh probably maybe even longer than that but it went down and like you would see like on the front end of a lot of the default apps that you use

a lot of the information will be missing from there and that's because the graph provides that information it's not that it doesn't exist it's just that the apps use or at least the front end use the graph to query that information to display it to you you could access it yourself if you want if you were to run an ethereum full node but that obviously is more difficult and has more overhead than just kind of offloading that to an infrastructure provider like like the graph or um or anything like that um so on that note i think the graph has arbitrary support right now as well uh i haven't seen it officially announced maybe it was announced a while ago but definitely i think that they already have support there but still really cool to see alchemy i'm already having like their the implementation live on arbitrary here

i'm just like dying right now to i guess like get on arbitrage because i know there's going to be a very very nice abacus ecosystem on there from day one like i i think they're going to deliver and i think they're going to deliver in a big way and i just can't wait to play around with that so hopefully soon hopefully this month we'll see what happens there so there a bit a very popular uh options exchange for i guess like centralized options exchange for cryptocurrencies posted this image today of the flippening and how the eth option options kind of like growth as a percentage of their total options volume um has been kind of like i guess increasing rapidly over the last kind of i guess you could say maybe a few months and

catching up to bitcoin here so you can see that uh they started off with 100 bitcoin back in 2018 because i think that's all they offered but then they started offering ethereum products and you can see over time especially since the start of this year ethereum kind of options products have become very very popular and are at about 38.2 percent of the total volume uh whereas btc is at 61.8 percent here and that gap is closing fast i think this is going to keep happening as i've said before on the refuel there is a definite market kind of like structure change happening right now with centralized exchanges where um their ether is doing more volume than bitcoin uh a bit you know on spot volume uh on on options volume it's growing as well um and there's a lot of people kind of

like i guess trading their uh btc for eighth and stuff like that too and the fbc ratio is going up and all that good stuff there so this is just another kind of flipping uh i guess like that's happening right now or potentially will happen in the future sorry uh where where eve is going to be leading against bitcoin here so yeah just cool to see this again uh you know i've gone over like all the flippings that have been happening lately and this is just another one under ethereum's belt so get coin grants round 10 is going live on june 16th until july 7th here so this is going to be the biggest bitcoin grants round yet and number 10 is getting really really cool here there's a bunch of sponsors uh you know familiar names like uni swap and badger uh polygon i mean there's heaps of

people here the graph and things like that and there's also going to be a hackathon running as well uh so if you are a hacker definitely kind of register for this it'll be linked in the youtube description below um but yeah grants round 10 are i think is going to be the biggest ever simply because even though we kind of i guess like hit a bit of a the snag recently with the prices there's still people who have made a lot of money and over there over the kind of like last few months and a lot of um i guess sponsors have made a lot of money too and we'll be putting this money up to kind of like sponsor the round as well so yeah i mean and and and also it's funny because git coin just did their um their airdrop to people with

their gdc tokens and i'm actually curious to see how many people either sell their gtc tokens for like eighth or stable coins to be able to donate to this git coin round or they use those gtc tokens to to um to donate to projects and things like that which is i think something unique to this round because the token was hasn't been out um for the other rounds there so yeah really really cool obviously uh the daily guy is going to be participating uh as a as a kind of like fund there so if you want to donate you can do it on june 16th um but i'll definitely cover it when the time comes there but you should definitely get that money kind of ready to donate to all of your favorite projects because i think there's going to be you know more projects than than round nine of course

there's gonna be you know hundreds of thousands of dollars of matching money up for grabs maybe up to a million dollars there and uh you know giving back to this ecosystem and giving back to the projects that have kind of like held this ecosystem together uh is is definitely the way to go about it and the way to fund public goods here so yeah very much looking forward to bitcoin grants around 10 as i said if you're a hacker you can you can register for the virtual hackathon here so i put out a tweet today uh when i was looking at some decentralized exchange volume growth because i'm getting ready for this weekend's deadly great data pump video uh so yeah this is coming that's coming out this weekend so keep your eye out for that um but essentially the centralized exchange volume on ethereum last month so may

2021 was billion dollars which is a a record it is more than double the previous month i think um i think april was 80 billion or something like that but even more striking here was that in may of 2020 the volume was only 1.1 billion dollars so dex volume has grown 150 times of 150x in just 12 months uh and i finished off my tweet here saying that i think dfi is going to obliterate traditional finance i would say that it already is you do not see this kind of growth in any fintech company in any traditional finance company no matter how hyped they are no matter how big they are nothing grows this fast and the i guess like the beauty of it is

that there is no kyc or aml here all of these decentralized exchanges are able to be uh operated by anyone in the world from anywhere in the world any jurisdiction you want to you can access this like for example you can access unison from anywhere in the world even if you can't access the front end for some reason you can still access the smart contracts on ethereum here now this is obviously not the only bit of growth that's been happening uh obviously like uh there's been a lot of growth on money market protocols i saw that rv was over 20 billion dollars today or something like that with value locked a lot of eighth being locked uh almost 10 million dollars of eighth being locked in d5 protocols uh which is which is you know absolutely massive and like you know usd locked is up

massively as well um and you know even if if i was to go back to 2019 in may of 2019 i'm pretty sure the centralized exchange volume for the whole month was like 100 uh sorry for the whole year uh sorry for no no for the whole month sorry um was like uh maybe 200 million or something like that decentralized exchanges on ethereum today do like four billion dollars a day so you know it's just funny how far the ecosystem has come in you know in just even if you go back to 2019 in just 24 months and i can't you know even begin to imagine what the next 12 to 24 months is going to be like with the layer 2 roll out with the i guess the fact that d5 is now kind of becoming like a a mainstream thing where people

are not questioning anymore it's just becoming inevitability and lots of traditional finance folks are trying to get in trying to build apps trying to fund things trying to play in this ecosystem i mean i can't even imagine what it's going to be like will we see a one trillion dollar volume on dexa's in one month uh coming up uh maybe even this year i think maybe you know depending on how crazy things get depending on if the layer twos are out there i can very much think i very much think that we can see a one trillion dollar month uh which is just insane i mean when you think about it that's more than i think you know some traditional stock markets do around the world and i don't know about the u.s stock markets i think they do more than that but the fact that decentralized exchange

volumes are you know getting just just continue to grow like they haven't slowed down the high fees on ethereum the you know the relatively low scalability and things like that haven't really slowed this down at all so once we get layer two i mean geez i can't even begin to imagine how explosive that's gonna be but still uh yeah d5 is just gonna i i just i i know i say it a lot but d5 isn't a hundred x isn't a thousand x it's not even a ten thousand x i would say that d five is a one hundred thousand times improvement over traditional finance because if if you think about it uh you i i consider stuff like payments to be defy i know this is this is like a contested thing but if you just look at payments as like a very i guess um

a simple example here if you need to send money from one side of the world to the other uh usually it's going to take you you know maybe two to three days right in a wire transfer and to do a wire transfer you have to be kyc and aml you have to have a bank account or you have to use a service uh like that that's going to charge you some kind of like ridiculous fee to do this now when you do that with ethereum yes okay the layer one fees can be high but to send tokens underneath is relatively cheap so let's just say it's going to cost you five bucks to send some tokens to the other side of the world in ghana gas fees here and that's just on layer one we're gonna have layer two which is gonna obviously dramatically reduce these fees

but even just layer one five dollars to send the this um uh these funds over to someone on the other side of the world anywhere in the world um within 13 seconds with no kyc no aml none of that noise you don't need to do any of that 13 seconds compared to two to three days yeah that's a hundred thousand times improvement think about the money markets uh lending and borrowing yes you have to over claralize but you can do so instantly you can put eth into maker into rv into compound whatever instantly get a stablecoin loan or you can put your stablecoins into alchemix and instantly get a loan on that and then have your loan pay itself off i mean i can go on forever about why defy is better than traditional finance and why

i believe it's 100 000 x better but i think you know we all use it every day like at least like i know i do we're all like most of us i think would be considered power users compared to the average user uh and we still like at the very early stages of this so to say that defy is going to obliterate traditional finance is putting it kindly i think defy is going to delete traditional finance from people's memories and and i think that you know in 10 years people are going to be like why were we even using stuff like the traditional finance system why did it take us so long to digitize value to digitize a monetary system to make it to essentially pull it into the 21st century just like everything else has been pulled into the 21st century well i think it took a while because we had

to solve a bunch of fundamental computer science problems like the byzantine generals problem that bitcoin solved um and we had to to basically build a bunch of different things around that we had to obviously scale this thing too which took a lot of time we had to basically upgrade the core infrastructure with e2 and stuff like that but the fact that we're almost there um you know it may take another few years to kind of get to where we want to get to but the fact that we're almost there already is is insane and i think within 10 years people are going to be thinking to themselves how do we ever live without d5 how do we ever live without ethereum so very very excited to see how how the growth plays out here over the next 12 to 24 months i'm sure we're going to see a 1 trillion

a month for dexers sooner rather than later and it's going to be wild it's going to send i guess like shock waves because that's a big number right it's the big numbers that people kind of like love to to kind of uh i guess like talk about and it's very easy for press to get coverage on these big numbers when they kind of like say them so yeah i i'm very very much looking forward to that so gnosis announced yesterday that they've joined forces with eragon uh which is formerly known as the turbo geth ethereum client and they will be deprecating the open ethereum code base so for those of you who don't know open ethereum uh wasn't is or was an ethereum client that was basically taken over uh by gnosis and it was a fork of parity uh which was the original code base of the parity

client now parity the company uh ended up uh kind of like stopping support for the parity client because they went all in on polka dot so nurses took over that but now they're deprecating the open ethereum legacy code base in favor of helping out the aragon team uh which is which which obviously was formerly turbo geth now for those of you who don't know i i kind of like talked about turbo geth and eragon what they're trying to do and how and kind of like how they're improving the ethereum kind of client space here they're doing a lot of amazing work i mean i've been kind of seeing developers uh kind of praising this client as being one of the best clients they've ever used uh it's very good for syncing if it sinks faster than kind of like vanilla get here um you know and there's a bunch of

different features included in this and you can sync uh apparently you're gonna be able to sync on a hard drive that's the first time i think for a long time you've been able to sync an ethereum client on a hard drive because normally you need a solid state drive to do it so that's really exciting too but i think this makes a lot of sense because the open ethereum client was based on a legacy code base uh the parody code base which obviously as i said parity wasn't maintaining that anymore and i think it came with a lot of dead weight and baggage for gnosis that they didn't want to kind of that at this point they're like well why are we dealing with this when we have like a really great client in aragon that we could be using so i think this is a really positive step

forward uh i'm yet to sync one of these clients i'm i think i'm going to do that this weekend actually get one of these errorgram clients up and running see what all the the fuss is about because it seems very exciting i already run a geth full node um and i was running it open ethereum one a few months ago but i i stopped that so i think that eragon uh you know is is the future here uh gethin aragon and this there's nevermind there's uh there's a bunch of other ones out there like bay su as well but i think you know at the moment geth is a majority of the network so anything we can do to get uh geth to like i guess less than that you know ideally maybe instead of being 85 something like 60 and then eragon and never mind um taking

up the other kind of parts there will be really positive so yeah cool to see this and called en for gnosis to step up to the plate and kind of i guess enjoying this this effort here i guess with funding and human capital so lastly there was a question from unchained dreamer on yesterday's refuel that i wanted to kind of like address on today's refuel and they asked what are your views on potent potential acquisitions or mergers companies like facebook or amazon have shut down many competitors by buying them or doing price wars can something like that happen in the l2 l1 space uh like a vampire attack uh and you know i i think that this question i have talked about on the refill before if a lot of you will remember yearn started acquiring apps and

bringing it into its kind of like ecosystem uh a few months ago so something like pickle finance was a yield aggregator that yearn brought under its umbrella because it kind of wanted to i guess like maybe not kill off the other yield farming competition but kind of like bring it in-house sort of thing and and kind of like share developer resources share capital share brain power all that kind of stuff there so i've already seen this play out now in terms of like what's it happening with different layer twos i don't know this is a this is a funny question because when you kind of like think about what a layer two is it's essentially another chain that lives on top of ethereum but it's secured by ethereum a lot of these layer twos are gonna have their own tokens so could say arbitram be acquired by

optimism for example uh technically the arbitrary company or at least the company that houses the people that launched arbitram the core developers could be acquired by optimism could be acquired by another company and and that'll be all well and dandy but the thing is the code is open source for a lot of these things so even if the team gets acquired someone could fork the code and do whatever they kind of like wanted with it um and you know if they didn't like the fact that say facebook acquired the uh you know the some layer two devs or something like that they could fork that and create their own uh instance of it and essentially start it from scratch if they wanted to and if they got enough users to come over well then yeah they would get kind of usage on that platform there so i think

that while it's possible for these kind of like acquisitions to happen i don't think it's in it it's very feasible in an open source world now you maybe might be thinking to yourself well what happens if kind of like the uni swap team was uh was acquired and you know people can't the univ3 code base because it's got a copyright license on it well i mean in unisop's case univ3 is completely decentralized uh just because someone buys the you know if someone wants to acquire the core unisop team doesn't mean that the core unit swap team could do anything drastic to change kind of the protocol they could do a unisop v4 but no one is forced to kind of adopt that and yes the unisop team has a lot of uni tokens they could kind of like sway governance and things like that but if people saw

this happening i think they would uh you know and it was bad for the protocol i think they would reject the uni v3 and um that kind of like i guess was was doing that and then they'd fork it and or some other kind of protocol or some competing protocol like sushi swap or something like that would uh i guess like get more market share because of that so i think when thinking about these things it's all about the social layout it's all about how people react if people have choices in an open source world and the capital can move very freely i think that's what's going to happen they're going to move between platforms depending on i guess what happens uh post kind of acquisition here i'll post merger so hopefully that answers your question unchained dreamer and for those who have other questions

about things definitely pop into the discord channel into the ama series channel and drop them in there i do an ama every two weeks as some of you may know and i answer those questions on the ama as well there so yeah if you want your questions answered do drop them in there and i will get to them when i can but for now i think that's it for today so thank you 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 discord channel uh sorry join the discord channel subscribe to the newsletter and i'll catch you all tomorrow thanks everyone