Crypto News Recap - How to Yield Farm -- Without the Hassle - August 28 - September 4 2020

Transcript

thanks for tuning in to this week's news recap first headline dex volumes hit new all-time high as uniswab overtakes coinbase decentralized exchanges saw 11.6 million dollars in trade volume in august up from less than one billion dollars in january this sets a third consecutive monthly record index volume up from 4.5 million dollars in july as dennis vinakura head of research at bequan told coindesk it indicates that the d5 flipping is real and already here uniswap is leading the charge into centralized exchange growth with a reported 283 percent increase in 24-hour trading volume from july to august and more than one billion dollars in

trading volume on tuesday and wednesday of this week which was roughly 50 percent higher than the 24-hour volume on coinbase pro at the time to illustrate just how massive the increase in trading on uniswap has been larry cermak of the block posted a graph on twitter showing the staggering increase in unique trading addresses on uniswap alone in the last few months frank shaparo also of the blog posted a diagram showing the exponential growth in google searches for uniswap this year which began shooting up in april but have since but have quadrupled since july it's not all unicorns and rainbows however while the surging volumes on decentralized exchanges present a challenge to establish centralized exchanges like coinbase they've also increased fees on ethereum

due to congestion next headline why earns why ethevalt makes it easy to yield farm why earn finance has launched a vault for yield farming with e as the recently departed chief of oracles at maker dao mario nakanti explained to the bankless podcast put simply this will make it easy for anyone who holds needs to get involved with yield farming think betterment but for yield farming because why earn utilizes the automated market maker curve stable coin deposits won't be required as has been the case with previous yield farming projects anthony cesano in his daily guay newsletter explained how the white falls works after a user deposits his or her eve it

is put in maker down to borrow dye which is then deposited in crv to withdraw its liquidity provider tokens and earn crv tokens the crv is then recycled into each by buying more on the open market because wyonet uses smart contracts to find the best deals gas costs for multiple operations are ostensibly spread across several users saving on transaction fees on tuesday's bank list conti referred to the vault as the smart contract equivalent of quote said it and forget it because quote you are earning a lot of money on your each without losing exposure to your eight but is the host of thankless as well as cesano noted this does not come without risks as the creator of why earn

famously tests in production which means putting your money in smart contracts whose level of security is unknown for those of you who are watching on the video this image which if you have some background in how maker jail works in how curve works in you know all these different yield farming projects work is pretty easy to follow and it breaks down exactly how this vault in wire net works all right next headline gas fees on ethereum reach all time high putting focus on scaling with all this yield from an activity on ethereum it's no wonder that according to the

block research the theory miners generated record fee revenue of 17 million dollars on september first which is almost four times higher than at the peak of the 2017-2018 frenzy however ethereum's exorbitant fees highlight the limitations presented when it comes to scaling d5 on the xerox blog remco blowman argued that at present ethereum has become a place for the rich as only wales can profit from trading with such high transaction costs however he says simply raising gas limits then creates risks for ethereum's security he analyzes whether it's possible to scale at layer one but concludes the only reliable solution aside from focusing on layer two

is quote to tear everything down and rebuild it from the ground up ethereum creator vitalik buterin posted a lengthy twitter fred arc thread arguing against trying to solve the problem of high gas fees by artificially setting gas prices higher or lower which he calls naive he advocates for increasing transaction capacity through scaling citing migration to the scaling solution zk roll ups by tether bitcoin and other apps as the best solution next headline has d5 reinvented the fair launch in case you haven't noticed everyone is excited now about fair launches many crypto projects have attracted criticism over distribution mechanisms that favored early adopters enter the fair launch a trend kicked off

by y earns yfi token which launched without a pre-mine without founder equity and without venture capital at darabin insights hassu analyzes the fair launch looking at previous altcoin launches and noting that projects that on the surface look fair are often not so he says investors should scrutinize any coin advertising affair launch as a core feature to see if there are any possible exploits ian lee the managing director of ideoco lab ventures wrote in his email newsletter synthesis a post titled fair launches will disrupt crypto vc he says quote if fair launches become more common sophisticated and successful they should scare the out of crypto vcs

he believes they will become more fair and not advantage whales as much as current fare launches do and reward people not just for short-term activity but also for longer-term actions and other forms of participation such as voting and proposals he also thinks that returns will not scale one-to-one with the amount of liquidity one has again in an attempt to keep wales from earning a disproportionate amount of rewards in a subsequent post he argues that fast follower forks such as sushi swap will become more common and that projects without a token have a higher risk of having their project forked tokenized and fair launched he also said that projects will now have to be careful to not take on too much venture capital next headline the sec is keeping a close eye on d5

in an interview with the block securities and exchange commissioner hester purse said the sec is taking notice of d5 and the questions it's posing saying quote i think it's going to challenge the way we regulate while purse admitted that defy regulation isn't at the top of the svc's list of priorities she concedes that the agency is following the space closely purse who is known as crypto mom has shown a keem interest in the cryptocurrency industry and stated that the delicate line between fostering innovation and protecting protecting investors will become even more precarious with the rise of defy next headline how patosi mines strategically to protect the bitcoin network sergio demion lerner the researcher who

has looked into early morning habits of a minor he believes was bitcoin creator satoshi nakamoto and who discussed his findings on a recent episode of unconfirmed has discovered that this miner used mining algorithm not included in the release of the first bitcoin client lerner not being 100 sure of the identity of this miner has nicknamed the miner potoshi lerner recently reminded bitcoin's first 18 000 blocks and discovered that potoshi's minor did not mine the way the early public software did while the public software which is ostensibly searching for a number that will enable it to mine the next block would do one sweep for this number potoshi would do multiple sweeps

additionally potoshi reduced the hash rate of his or her minor several times that first year plus likely shut down his or her minor for five minutes every time patoshi mind a block so as to foster competition and create a diverse set of minors on the other hand pitochi would also turn on his or her minor when there wasn't a lot of other computers on the network lerner says quote i conclude that the most plausible explanation is that he was protecting the network time for fun bits how dan robinson lost someone's money to a front-running bot this week's unchained guest dan robinson of paradigm published a blog post about a conundrum he was posed with last week someone had accidentally sent their

unistock liquidity tokens to the pair contract itself where anyone could grab them if they realized the tokens were there the challenge for dan was that because of front running bots that scoured the memphis which is the area where pending transactions wait he realized that once he submitted a transaction to rescue the funds any front-running bot could see the money which as he put it would be like quote would be like flashing a free money sign pointing directly directly at this profitable opportunity he entails all the machinations he went through to try to obscure the transaction and stealthily secure his friends money read his post to find out what happened

and to learn why you should never underestimate a front running bot thanks for tuning in to learn more about nadav and dharma be sure to check out the links in the show notes of this episode don't forget you can now watch video recordings of the show on the unchanged youtube channel go to youtube.com c unchained podcast and subscribe today unconfirmed is produced by me laura shin with help from anthony yoon daniel ness and the team at clk transcription thanks for listening [Music] [Music] you