1.5mil ETH staked, ETH is ultrasound money and more - The Daily Gwei Refuel #16 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the daily grave refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony cesano and today is the 16th of december 2020 all right guys let's get into it for today so the first thing i wanted to quickly talk about was the company i work for set protocol or sep labs is hiring a smart contract engineer so if that is something that you do or that you are you know proficient in i definitely check out the job description here i'll link this in the show notes of course um you can check you know i'll just click through click through to it here basically uh yeah you can check what we're all about here you know what we're looking for in a smart contract engineer and

kind of what our values are and where we where we want things going here um you know obviously i'm a bit biased here but you'd be joining a kick-ass team that is really kind of driven to make a difference within d5 and to create products that actually help people you know within d5 um you know outside bring new people into d5 uh and i just i mean i personally really love working with the team so i i know you will as well so if you know if you're a smart contract engineer looking for a new role you want to work in d5 uh definitely hit this up you can dm me on twitter if you'd like and i'm i'm happy to put you in contact with the other team members as well we have a few smart contract engineers on board right now and they're awesome

to work with so yeah definitely check this one out if that's something that you're interested in all right we talked i mean i spoke about the nexus mutual uh kind of uh news yesterday uh about the hack that happened uh for those who didn't watch yesterday's episode basically uh nexus mutual's founder hugh carp was hacked uh there was a man middle attack with his metamask address accidentally signed the wrong transaction which meant that what eight million dollars worth of x m was sent to the hacker's address basically now obviously nexus mutual has been doing some kind of research here some digging to see where these kind of addresses lead and to see if they can identify the hacker uh and so they put they put out this tweet thread basically saying that

you know the the the person the hacker kyc with nexus mutual um they didn't you know obviously give away their details or anything like that but they did say that they kyc'd uh but at the same time i mean it doesn't really matter if they did because you can fake the kyc pretty easily uh unfortunately these systems are easy to to get around um so that's not going to help there but they did say that they've basically been able to track them down to singapore uh they were in contact with them apparently on telegram um in a bunch of different chats and things like that uh they were digging through the ethereum addresses uh as i said they were able to track back uh they're apparently real kyc um to singapore but as i said this could be a

fake ky so we don't know for sure if it's actually real or not and i doubt that nexus mutual team is gonna you know put out all their details and basically dox them um that i think that's pretty much illegal to do in the first place i'm surprised they even put this out but i guess this isn't really personally identifiable information here uh and basically their last tweet here says that they found a telegram contact using the number that uh that this kind of uh hacker used with their kyc um and they're not responding obviously to messages uh they've said that they barely scratched the surface and more information will come to light uh and they're asking the hacker to talk basically you know yesterday i mentioned how hugh put out this tweet that said

uh basically if you return all the funds you know you can keep three hundred thousand dollars and that'll be like a bug bounty uh i don't think they've done that yet there was actually a tweet uh uh sorry a transaction that contained some text on ethereum today uh so this this account on twitter ethertext tweets out ethereum transactions with text in them and this one came from the hacker and said hello hugh i will not sell wrapped nxn anymore until rapt nxm covers his value or you send me 4.5 k in eth if you need any negotiations with me send message to my etherdress uh and then he lists a few of um hugh's addresses here like ethereum addresses but uh these aren't actually all of whose

addresses that some of them belong to nexus mutual as well that's what the nexus mutual team put out but for those who don't know you can actually embed these kind of messages into any ethereum transaction that you want there is a limit and it does cost more in gas to do this but basically you know many of you will be familiar with the transaction details screen on ether scan if you click here and say click to see more you it pops up with this input data field right and obviously this is not human readable it's just a bunch of numbers but if you go view input as and then go original uh if it's going to load sorry sorry you go utf-8 not original my bad it'll show you the actual message here so the exact same message that was

posted on twitter basically decoded and yeah i mean at least the the full addresses here i had a look at them um you know one of them has like a a a bunch of ethernet um and uh the nexus mutual team obviously said that they kind of um own that address it's not doesn't belong to hugh so the hack i guess was trying to dox hugh's addresses and trying to get him to pay up or something some kind of ransom i'm not sure but yeah so for those yeah who didn't know you can do this and you can put any message you want in here basically as long as you know you know how to do it i don't think metamask supports this natively i haven't ever tried to do it through metamask um but you can do this i'm pretty sure like with my ether wallet and my crypto

by you know signing this this custom message in the input data field um yeah so that's a really cool little feature of ethereum i think you can do this on bitcoin as well but it's it's probably more complicated and it probably costs a lot more in terms of fees um since you know storing data on the bitcoin blockchain is more expensive so yeah i mean you could put any message you want here and this is what the hacker decided to put so an evolving story still i haven't i haven't seen uh other any other updates besides this i mean if you click through to the quote tweets here we can see that uh you know there's a few people making jokes like hacker is a confirmed dumbass things like that uh this is unreal uh someone made a

joke about um i think it was like a nurse saying you know i'm a nurse give me my money back and this is some inside joke about how um the hacker i think the pickle hacker um got a message from one of the the uh i guess uh the what's the word i'm looking for the the the victims that's what i'm looking for so i got got a message from one of the victims that said hey i'm a nurse a hundred thousand dollars was my whole life savings and you stole it can i have it back and i actually sent it back uh to them uh because of that so it's kind of a joke now where it's like you know i'm a nurse uh please send me my money and you know i don't even think that original person was a nurse either they were just like playing around but

it seemed to have worked so that's where that kind of joke comes from but yeah it's just uh it's just funny i mean this is like negotiations right uh through the ethereum blockchain uh in and we're seeing it play out in real real time uh it's obviously not great right but this is not not good to see it all um you know it's interesting but it's it's still pretty crappy i mean forty five hundred eighth ransom is is is is quite high um and then it's you know they say negotiable uh i mean that's laughable right um you know you you could imagine you sending a message back on the ethereum blockchain basically saying oh yeah i'll offer you you know three thousand eighth instead or something or something lower than that or whatever um and the hacker coming back and saying

well i you know meet your offer at 3 500 eve and yeah it's like a classic negotiation on like they're returning the hacked funds um i don't know if the hack is doing this because they're kind of like scared that they're going to get caught they might because it only takes one mistake to basically get caught especially when law enforcement gets involved because if you leak your ip even once and it's able to be tracked back to where you actually are that's it it's game over for you if you leak other information like i worked in cyber security for three years so i'm very familiar with the information that can easily be leaked if you don't know what you're doing and you can leave breadcrumbs everywhere

and law enforcement has a lot more access to data than you know a regular person would investigating this so you know if you're not careful it's pretty easy to get found you know it might take a little while because obviously these things tend to move slowly but i it's just not something that's worth the risk like it's just it's pretty insane i mean this is a lot of money right and this isn't just i guess limited to the nexus mutual hike but like all hacks and all these sorts of stuff uh unless you you hide your tracks very really well if law enforcement gets involved and they're motivated enough to catch you they're going to catch you it's it's it's incredibly hard to to stay hidden um and as i said like during my cyber security years we saw a lot of like very sophisticated

actors get caught because of the dumbest mistakes they left like the tiniest breadcrumb that was easy for them to like not leave and they left it and that led the law enforcement and everyone else investigating them to find this and basically say okay i know who this is right or i know where to find them and things like that so very hard to hide your tracks here i think the best thing to do for a lot of these hackers to avoid you know law enforcement coming after them is hack you know i mean this is not advice or anything like that but if i was like a smart hacker or whatever and i didn't want to be caught you know you just steal a bunch of funds and then return most of it and keep what you know a little bit of it that you stole and that kind of like prevents

um these teams from even wanting to go after you anymore because it's like okay well they return most of it you know we'll just we'll cover our losses here and we'll learn from next time and even lauren enforcement would be like you know it's not even worth our time anymore or whatever uh you know and we've seen kind of this i guess play out a little bit where the some of the hackers returned half the funds like the em er eminence hack sorry uh had like half the funds returned i think the pickle hack did as well or the farm hack one of those two um so we've seen that play out but i don't know if they did that for uh you know for the purposes of not getting caught or not getting pursued i think they did that um at least the second time was like just for the meme

so or maybe it was the same hacker and they were just like that's their signature right returning half the funds so yeah it's it's it's a wild kind of west out there within ethereum and d5 as i was kind of saying yesterday it's very easy to fall for these things but yeah i guess i'll keep you all updated on what's happening with this as we get more updates interesting tweet uh from justin drake today he reposted this image uh basically comparing uh bitcoin and ether as sound money uh that's what bitcoin is like to call bitcoin and then he goes on to say that with erp one five five nine and if if fee burning is greater than uh the

inflation or the issuance of uh staking then it becomes ultrasound money because it actually has a decreasing supply rather than a capped supply and for those of you watching the video you'll be able to see the the picture that i'm talking about for those of you listening in uh you can just go look at it in the tweet it'll be linked in the in the show notes but basically uh i mean i like this i think it's a cool meme right ultrasound money sound money uh i mean i believe in this kind of vision where ether will become deflationary if there's enough use on the network um and we have obviously we're gonna have fee burning in so it's burning more ethers than is being issued per year which makes eth you know net deflationary so the supply actually

decreases which is better than a cup supply right so uh i hope we see this play out i mean it relies on a lot of things right it relies on the merger happening so getting rid of proof of work and merging eth1 into eth2 it relies on erp-1559 actually burning more than it's being issued and at the moment at current usage it's not during d5 summer it was but that was like not sustainable right only lasted for a month or so of those really high fees where we actually had you know if we had eip1559 in people calculated that we would have had net negative issuance even with the proof of work issuance so with proof of stake it's going to probably settle at around

0.5 percent to one percent issuance per year or inflation per year so we would have to burn you know one percent of all a year from usage in order to make up for that to make it net deflationary and to have a decreasing supply which i think we can get to right if you really believe in ethereum becoming this global settlement layer uh for like all value to settle on uh and you know we defy keeps growing all these other apps keep growing and we have like millions and billions of of transactions on ethereum trillions of transactions on ethereum each year potentially uh both at i guess layer one with sharding and layer two um i think we can get there uh and you know it's it's just gonna make such a such a great asset uh and improve on what's already in my mind a really

great asset in heath so yeah i'm glad to see someone like justin drake pushing this out for those who don't know he's one of the core researchers of eth2 uh he's generally focused on a lot of the advanced research within eth2 like vdfs are verifiable delay functions and things like that um and he's he's played a big part in it but uh you know you never really see these researchers talk too much about eth you know and and kind of like this kind of concept around a decreasing supply so it's good to see them you know you know at least justin talking about this and pushing the narrative here all right an update out of uni swap today so they've introduced this new website called cyble.org it's basically

a governance tool for discovering uni swap and compound delegates it maps the on-chain addresses to our chain ethereum addresses to digital identities while avoiding on-chain transactions and user signups so you can verify and discover uh delegates on here so if i go to the website here you can see here that uni swap governance or you can sorry you can choose from uni swap governance or compound governance and it will come up with basically a rank of all the uh i guess uh delegates that are part of each governance system how many votes they have how many proposals they voted on and their vote weight and you can sort by verified so you can see here there's a bunch of verified

people or companies like gauntlet network dharma hq monet supply and a bunch of other people here i won't breed them all out um or you can go to all you can see the anonymous ones as well alright so same same for uni swap you can see dharma is the top delegate for uni swap that has 17 of the the voting rate which is quite high second is an unknown gauntlet network again is in here they're at number three uh and then yeah we just go down the list it's it's kind of funny because robert lesch nominee supply gauntlet darma they all appear in compound governance too uh and you know even looking through these names here are just glancing across there's a lot of overlap happening here now you know i wonder why that is is it

because these people started off being very active in compound governance and now with uni swap governance they're more trusted i think so to be honest um because if you build up a reputation and become you know what's called a quote-unquote protocol politician you're more likely to be trusted than someone who's either new to the scene or basically i guess um less well-known uh or anonymous right so i think that's why we're seeing a lot of overlap here and you know gauntlet network is actually doing a lot of a great work in governance space robert lesnar is extremely active in different communities and with within their governance so i mean it makes sense for these people and these companies to be at the top of the list

so yeah it's great to see that playing out uh you can even you know sort by proposals on this website and see you know who voted for and against you know the address is tied there things like that so yeah a nice little site from from uni swap here i think this uh this will this is gonna go far it's gonna be great for handling all these governance related stuff um so yeah kudos to unicorn for building this one all right a little bit of a shill here about the index co-op so for those who don't know uh the index cop is uh i guess was launched by set protocol so the company i work for um so basically we're working on the index co-op as part of the community we're working to steward it and to grow it so

i just just a disclaimer there i obviously hold index tokens as well so just wanted to put that out there before i dive into this but i did want to give a shout out here to what we're running at the moment so we're running what's called the index co-op creative challenge so we're giving out 15 000 worth of prizes in index token uh for people that submit kind of a bunch of different creative materials like art video you know music writing like blog posts and memes and things like that uh and you know this is a way to let the community get involved and get paid for their involvement within the index car especially those who you know aren't developers or aren't smart contract engineers right that are more on the creative side of things and

do a lot of um you know memes and art and creative writing and things like that uh so yeah if that's something you're interested in definitely go check it out it'll be linked in the in the show notes but i was also talking yesterday about the index co-op as well um because i was talking about linda shea's tweet about how dows can basically pay people to be full-time contributors um index co-op isn't at that point yet but we are paying people a fair bit to do work so if you're someone who's got a bit of free time you think that you want to put your skills to the test on doing creative work then you can go check this out and it's not just limited to this challenge you can do ongoing creative work and be paid for it in in index tokens by the co-op if you

add value and the index cop isn't the only one doing this of course there's a bunch of other dows doing this as well and i think this is just the next evolution in kind of work right where you basically can work for ethereum there's a few members in our community that actually work for work in other communities as well so you know if if you work in like you know three or four different communities you could probably earn a nice uh wage doing that right a livable wage like not just livable but like you know substantial depending on kind of what what quality of work you do and how much the different dows are paying but from what i've seen a lot of them pay quite well for the work depending on your impact essentially so yeah definitely go check this out if you're a creative

it's something that i'm really excited about we're already getting a ton of content posted on the discord so join the discord channel as well because that's where all the submissions are done uh and you'll be able to talk with fellow members and maybe you can team up with someone and work on something together that's another idea so yeah i just wanted to give a quick shout out there to what we're doing at the index cop as i think it's pretty exciting all right so shane coplan the ceo of poly market put out this tweet today that basically uh went through that uh since two months ago since poly market stage two launched they've broken 40 million dollars in volume generated amongst the highest fees of any crypto project and most importantly

become an indispensable information source for many tracking this election cycle so for those who don't know poly market is a uh prediction market platform that got a lot of attention during the election of course along with auger and other platforms like that uh the difference is with poly market is that it it already runs on a layer two solution so it's using magmatic network to to process all this and i um i had a bet like i put place the bet on the us election uh result and i used their system and it was extremely smooth uh it was such a great process and the fact that i knew i was using layer 2 ethereum and it was so so seamless got me really excited and really bullish so uh yeah it's great to see that they've grown they've grown

here i mean i've always been of the opinion that prediction markets are are really great if there are markets that people actually want to participate in there there are tons of prediction markets about like what will the price of eth be at this date or what will the price of this be at this date or whatever right and i don't think they're interesting markets because if you want to bet on the price of an asset there's already a million different ways to do that you can buy options you know you can sell options you can basically you know play in the futures market you can play in the spot markets just buy the coin if you think it's going to go up right so those markets are always very uninteresting to me whereas markets like you know election cycles and election results

markets like will eath to launch in 2020 all those sorts of things are very very uh relevant i think they're very exciting they basically get the community involved with things as well and let's the community basically um tweet about it and and and kind of like spread the message and be like you know if you if you i mean i saw this play out with the election it's like you know if you think uh that i'm wrong bet against me here so you know that is a lot more i guess enticing then hey if you think the price of each isn't going to you know this amount in this much time then bet against me people be like well i mean what's the point i'm just going to like short eat or something or or i'll just sell eat or something um

so yeah that's that's why i believe that as long as we keep getting these more interesting markets there'll be more activity on prediction markets so curious to see how poly market grows from here obviously there was a bit of an outlier in the u.s election but there's a lot of other markets that still can be put out there that i think can be maybe i don't know if as big as the u.s election but uh you know at least almost as big so yeah looking forward to seeing how prediction markets i guess across the board grow here all right finally we reached 1.1 million each in the eth2 deposit contract which is over one percent of the circulating supply of eth this is this is crazy i mean i've said this before

i've said it on twitter i've said it on the ether podcast i've said it on daily grey refuel no one expected this literally no one even the most permabull of permabull like maximalist if you want to call them right did not think we would get here some of them were doubting that we'd even get to the minimum of of etherequire the 524 000 each required to to launch the chain and we've with almost three times that at this point so i mean i i don't even know what i can say here other than this is just an amazing show of support from the ethereum community it just shows how many people want to you know support the community support the network because uh you know as you all probably know this is locked for one to two years

it's it's not available so uh you know and you don't even know when it's going to be available it could be two years could be one year you just don't know and your rewards are locked too you can't access those rewards um you know the majority of this is in that state some of this is done through exchanges and third-party providers that are offering kind of like liquidity on the deposits but i'd say that most of it at least a million eighth worth of it is not in that state uh it's like actually locked so uh that's why i'm so impressed by by by this number it's just that people are just like okay there's opportunity cost here but i don't mind it's it's fine i'll just put my ether in there i'll stake or support the network and then one to two years i'll

kind of you know take out my rewards or cash some out at that point um but until then i'm happy to to lock my eighth so yeah kudos to everyone who's done this obviously i'm a big eat staker uh i i'm you know watching my validators kind of run and run nicely every day it's nice to wake up and check my dashboard and things like that uh and it's really cool to see so many people getting on board with with each staking so yeah if if that's you i hope you're having as much fun as i am with it all right everyone thank you for watching listening to another episode of the refuel uh be sure to subscribe to the youtube channel if you haven't yet give the video a thumbs up join the discord and subscribe to the daily gwei newsletter and i'll catch you all

tomorrow thanks everyone