The Daily Gwei AMA Series #11 - 2nd of October, 2021

Transcript

all right everyone we're gonna get started so welcome to the 11th daily gray ama series uh thank you all for being here uh for those of you who haven't been uh i want one of these live amas before uh i'll be reading the questions from the ama series channel throughout the ama but if you want to ask a question during it feel free to just raise your hand by using the button at the bottom of your discord kind of window there and i'll have the request and i'll invite you up on stage you can ask your question live or if you want to you can ask your question in the ama series channel and those ones will be answered at the end of course this whole thing is recorded uh and will be uploaded to youtube within 24 hours with time stamps so if you have to leave

early you'll be able to catch up on everything that you missed so let's get started with the first question that comes from axi met axiomatics i think that's how you say it um so they ask what's your view on different airdrop token distribution strategies there seems to be multiple schools of thought of how to approach this people from optimism and lyra have mentioned that they are seeing bot like small transactions likely with the aim of hunting potential airdrops this makes it tricky to distribute tokens to the right users potential dow contributors while at the same time keeping it decentralized yes so i think uh uni spot like since uni swap did their air drop back in 2020 and it was like a pretty pretty generous air drop pretty big air drop uh everyone got uh

every address got 400 uni tokens if they had interacted with the union swap protocol at least once uh from one to v uh to v uh v2 um and the funny thing is you even got tokens if you had a failed transaction so the transaction didn't have to succeed uh if it failed you still got tokens and then the liquidity providers got even more tokens on top of that and there was a couple other things where people got tokens for as well but since then we've seen like a number of airdrops come come out and and they've had to use kind of like different tactics to weed out this game of this gaming that uh that people are doing right now so obviously you can use like multiple addresses to potentially get multiple airdrops you can use bots to do all these kind of small transactions to

maximize your chances of getting an uh getting the airdrop and getting more than uh you know you should rightly be entitled to and things like that and obviously it's really really hard to do civil resistance on chain because there's no identity tied to an addresses right if you've got a new address that doesn't have an ens on it or anything like that um it's just like a fresh address then no one knows if you're you're a bot or a human who you are whatever like it's on an s unless you connect it to some kind of identity uh system so from that point of view um you know i remember seeing kind of like one inch when they did their airdrop they noticed that someone was trying to game it uh one person in particular was trying to game it so they said well you had to do a transaction of

at least twenty dollars worth of value i think it was um you know through one inch so they weighted out a lot of the smaller transactions but this obviously becomes a lot harder on layer two because on layer two the fees are much cheaper than layer one it's much easier for the and probably much more profitable for these people to do this in the hopes that they get an airdrop based on their activity on the networks so i think this is something that uh there's a lot of different designs out there today for airdrops there's new ones coming out all the time i've gone through on one of the amas before and on the refill plenty of times my kind of philosophy on token distribution and i always kind of think that you should reward your um you know early community the ones that are there from the

beginning and your contributors the most they should get the lion's share of the rewards um and airdrops like should be done but you shouldn't give away like most of the network in an airdrop unless your product has already been around for a while so say say you have like a product that goes live and then you say okay well i'm going to air drop tokens to a bunch of people who use these other products within ethereum and uh because like i think that they're going to be interested in in my product uh but but when you think about that like from that point of view it's like okay well i mean yeah okay that's cool that makes sense maybe you give some tokens to people who use git coin and donate it on git coin maybe you give some tokens to people who use different

default apps on ethereum such and such but those people are probably going to just sell the token like they're not actually going to be interested in your product just because you gave them a token yes they may check it out and everything like that and maybe some free marketing but uh you know if they're not interested in the product even after checking it out well they're probably just gonna sell the token straight away you have like this downward pressure on the token price and then you you just have like a bunch of speculators that that are that hold your token from the get-go whereas the way unisop did it i thought was really interesting because they had their product out for a long time right like it had been out for a few years they had lots of users and all this sort of stuff and it was a good

product it was i mean it still is a good product of course and it's the most popular product on ethereum so there was no doubt that uh obviously people wanted to kind of like hold the token and a lot of people did like yes there were people that inevitably obviously sell their airdrops uh because it's a lot it was a lot of money even at um you know i think when uni first started trading it was two or three dollars was kind of like the price that hung around for a little bit it did swing kind of violently but obviously that's a lot of money for people's 400 uni tokens two dollars that's 800 as kind of like a a flaw there but for those who held their uni tokens they were obviously um you know greatly benefited from that too uh against the usd at least against

eighth maybe not so much i looked at the uni eth chart the other day and i was just like okay well you know it's not doing too well there but i guess like you know a lot of people uh obviously care about the um the fiat or usd value of their holdings there so from that perspective i liked that strategy where do an airdrop once your product actually has product market fit don't just air drop your token to a bunch of people from day one um before you even go to community uh because that way you just because because by doing that you you kind of like attract speculators instead of long-term kind of like community members and obviously it's not just air drops that do this it's also kind of like uh liquidity mining strategies as well which we've seen play out time and

time again a lot of them are pretty bad like you can use them in in a right way as long as you've got a product people actually want to use and i think the perfect example of this is dydx they currently have a liquidity mining program but they launched their token after their their product was you know obviously live and being used and they had some initial traction but the way they've structured their kind of liquidity mining program is actually really really uh uh really awesome and and and the thing is is that it's it's based on kind of like trading volumes and things like that and it's shared across everyone depending on how much trading volume there is uh but at the same time their products actually good like i have used dy dxfa a few times over the last i guess couple months it's such an amazing product

right it feels like you're using a centralized exchange except you're using a layer 2 on ethereum so from that perspective it works for dydx because they have a product that people actually want to use and obviously they have a lot of a lot of hype around it and a lot of ethereums are throwing their support behind it because it's actually a true layer to you know decks on on ethereum so i think you know you have to have that for the token distribution or for the liquidity mining program to actually work it's at its best otherwise it definitely does become a story of uh locusts coming along farming the token and dumping it and that will still happen even if the product is like the most amazing thing ever but you want to optimize for uh kind of like the people who actually want to use the product and

will stick around like be sticky liquidity once kind of like the liquidity mining rewards run out or they i guess i get lesser and lesser over time because they usually do uh so yeah i mean and then the the ecosystem is littered with examples of liquidity mining programs that were not done correctly and that put too much downward pressure on the token price which really hurts the early community because to build a strong early community you want to get them in on the ground floor ideally of the token price right you want to launch uh your product out there you want to maybe keep quiet about it at the beginning launch the token have it out in the wild for a bit but like have the market cap be you know relatively low so that there's actually potential for growth and it doesn't start like really high and then as you

have liquidity mining happening the uh the market cap just goes down over time or the token price doesn't move because it has to match that massive fully diluted valuation that you have as more tokens coming to the market and we've seen this plenty of times not just with d5s but with kind of like other chains as well i mean there's lots of them or with very high fully diluted kind of market caps and then a lot of them would just stagnate in price for for quite a while because as the tokens come to come to market that kind of like puts downward pressure on the price so i think you know there's also obviously the demand side to it there's different kind of token uh i guess like mechanisms that are out there of kind of like how to actually drive value to your token curve is a

perfect example here of something that i believe has a really good um token design where they kind of have like lock-up design where and they force people to compete and bribe each other to kind of lock up crv to to get like bonus um ap while to get more apy on their stables and obviously curve is an amazing product and a lot of people use it but the problem is is that curve is still paying out a lot in liquidity mining rewards uh la you know and and they they do have other kind of like token emissions going on and that's why and the price started off uh sorry the fully diluted market cap started off pretty high for for what it is now i you know it the same same goes for the ui dx as well right like you look at diy dx and i know i said before that i think

drag decks has done a uh has done it really well but at the same time they also have you know a really high fully diluted market cap right now i think it's 22 billion dollars and only 5.1 percent of the token supply is actually circulating so like how does the community get kind of like exposure there do they buy the token at 20 bucks or 22 or whatever it is today uh and then do they just like hold it over time it's just either gonna stay around that value or bleed out as more and more of these tokens come to the market it may be really good for bootstrapping the liquidity and the usage of the product itself but the token you know in a year's time may be worth a lot less against both usd and eth uh because of the fact that there

was just so many so many tokens coming to market so this is something that i think we need more probably need more mechanism designers mathematicians kind of like statisticians looking at and kind of designing these things or these token distributions in such a way where you kind of like play the game theory of it right you you probably need psychologists in the mix as well because you think okay well if we do this this and this then what's the outcome because that famous quote show me the incentives and i'll show you the outcome well there's very basic incentives do you have a liquidity mining program yes okay well people are going to come in they're going to dump the liquidity in and then they're going to sell the token and the token price is going to go down if there's too much cell pressure like

that's the pretty simple uh kind of thinking around that but then you can extend beyond that you can be like okay well you know what's the demand side here like why do people actually want to hold this token what's its use what's its long-term value accrual all that sort of stuff and then you want to ideally craft something that both has a uh a kind of modest supply uh kind of schedule where new supplies come into market and also a a very good way to drive demand to the token and to kind of like in curves case they have like a lock up mechanism which obviously works really well but still there's a lot of kind of like supply coming into the market still and uh you know probably and the demand and supply is kind of at equilibrium from what i can see now the price hovers around the

same kind of value uh but it would require probably waiting it out until those token emissions are done uh or at least kind of like much less than what they are today and then you might see kind of um the prices going up but that's not the only thing that plays into it i mean it's also just overall sentiment when it comes to these tokens too it's like people like oh well you know defy tokens are dead they're not valuable we're just going to ignore them and these things work in like cycles like i'm sure a lot of you noticed a lot of the kind of like layer 1 block chains going up in value over the i guess last two months and that's just the cycle that's playing out and then you know we had the d5 tokens going crazy uh late last year that was a

cycle playing out and you have different cycles and people follow different narratives so that also plays into it too and that's something you can't really design for uh because that is just like uh it can happen very randomly like one day everyone could hate defy tokens the next day everyone be like oh my god i gotta get my hands on d5 tokens because they're gonna go to the moon it's just the way crypto is but what you can optimize for in these token distributions and air drops and things like that is making sure that you reward your early community you make sure they get in as early as possible with a market cap that's you know really low like you don't want the market cap to open at like billions of dollars for a new protocol because that's just purely speculative and new tokens coming to market will be sold

into that like why wouldn't they i mean that's a it's a very high valuation for a project just that just started for an example there so hopefully kind of like that answers your question axiomatics uh obviously i have a lot of thoughts here and i've i've thought a lot about this but i think you know i could go on forever about this but i have a bunch of other questions to get through but it's good to pay attention to all the different token designs within the ecosystem see which ones work to see which ones don't because i think over time we're going to see maybe not the perfect design come to life but we're going to see like a design that comes out and people are going to be like wow why didn't we think of this before like this is awesome like this is really

really good this solves kind of like a lot of the issues we had with with liquidity mining and with token distributions and everything i think we'll get to that point but it just has has to have like a lot of these experiments run out people will make money people will lose money um but eventually we should get to a point where it kind of becomes a standard thing of okay well that's how you do a token like that's how you actually do a token distribution and have everyone kind of like be happy about it and the funny thing is is that i was kind of like uh reading some stuff about the equities market the other day and i i i think this is true like i didn't fact check this but like it came from a reliable source apparently it took like 80 years for this kind of like i guess

stock market to come to consensus on how to value us equity in a company right like the price to sales and price to earnings ratios apparently it took a very very long time since kind of like the birth of capital markets in the us i guess and kind of like the proper stock market and proper proper trading it just took a very long time to get to an i guess consensus on what a valuation kind of like uh temp uh i guess evaluation mechanism looks like for these sorts of things uh with with tokens it's probably gonna happen a lot faster it's probably not gonna take 80 years but maybe it takes us another five years or ten years to to get to that like ideal perfect design because we have to go through all the experimentation we have to go through all the speculation to get there

so we'll have to see it's still i i think it's exciting that we get to run like thousands of economic experiments in parallel and we all and it's all open for everyone to see everyone to kind of like write about and everything and educate each other about so that's what kind of like i'm most excited about uh but i think yeah the design space for airdrops and token distributions is is huge and uh we're gonna see much more come come come along all right next question comes from i don't even who says i've been arguing with my btc maxi co-worker for years which is great because i've learned even more about why i love and support ethereum he recently sent me this very dense paper titled only the strong survive and tries to argue that btc is the only crypto that should exist from a

philosophical technical and economic perspective have you read this and do you have any thoughts on it so i did see this piece i didn't read the whole thing um i kind of like skimmed through it i i don't know i'm probably not going to speak to this piece in particular i want to speak more generally about how i view in particular bitcoin maximalist and their kind of train of thought they start the way they debate and the way they present their ideas is that they start from the end and then work themselves back to justify the end so what i mean by that is like they work themselves into a position where they're like okay well i i have this belief this is my position on something so let me find all the reasons i can to justify that belief instead of doing it the

other way around will you have all these reasons to believe something and when you work backwards like that you get into this thing where it looks more like a kind of like religious zealotry than actual kind of like a practical science and that's always what's turned me off about i guess like the bitcoin ecosystem is that they take the ideology of this stuff to the extreme obviously i'm very ideological about ethereum and decentralization all that sort of stuff but i'm i'm i'm kind of like uh practical about it too i look at the the the kind of like um the real world stuff that i can measure like i don't get too bogged down in the philosophy of things i don't try to convince myself of something of an argument or a position um without kind of like getting into that position uh uh from the start and you know i

don't try to work backwards sort of thing whereas the the the bitcoin maximus from my experience will try to work backwards and i think the perfect example of this is them assuming that everything else except bitcoin is a scam so let's take ethereum for example they say ethereum is a scam and then you ask them okay well why is ethereum a scam and then they work themselves backwards and they say well resistors in this reason this this and this reason but the thing is is that they have automatically called ethereum a scam it's not because of of anything that they've kind of like researched to get themselves into that position they've just gotten to that position because they take a view that everything except bitcoin is a scam then they have to look for reasons as to why they feel that way or you know it's

is vitalik's um in control of it oh you know there's a pre-mine oh you know this this and that and and and that just doesn't make for good debate in my mind so that's why i actually stopped debating and kind of engaging with bitcoin maximus a very long time ago i just i can't reason with someone who didn't use reason to get into their position in the first place uh i can't like reason with someone who uh basically debates as if they're kind of i guess like with with zealotry with kind of religious like beliefs rather than uh kind of like um actual debate based on facts i just i just can't do it and that's why i ignore a lot of these pieces as well especially ones that basically say well only bitcoin should survive and already like just you know just kind of like knowing

that that's what the piece is about it's kind of like well i just i i don't i don't i don't see how that even you can even reason yourself into that and but they do they find a way to do it i mean i i call them masters or like gold medalists in olympic olympic style mental gymnastics because they have an ability to reason themselves into a position um without using reason and as you see that play out a lot on on twitter and things like that so i guess like to answer your question um you know my thoughts on the piece don't really have any because i didn't read it but because of the reasons i just outlined i i just i don't know it just feels like a waste of time to entertain these ideas and i'd rather focus on fact fact-based debate than you know pure beliefs and

ideology about things uh because you can have your your ideologies you can have your beliefs but if you're using them to justify a position that doesn't factually make sense it just doesn't really interest me and i you know it's kind of boring to me so hopefully that answers your question i don't even all right one coming in here from dom who says in the absolute worst case scenario where the u.s bans all crypto activity everywhere uh they can um unlikely i remember imo but we have to prepare for it anyway how do you see fiat stable coin ramps existing in a decentralized way that can't be regulated or stopped or is that just an idealistic pipe dream um i mean they can exist but it'd be very hard right like you'd have to do it in a peer-to-peer fashion and we actually saw that these peer-to-peer

marketplaces like local bitcoins were already forced to implement kyc a while ago so you know that would probably be banned anyway so it would basically go underground there'd be like a black market for it it'd probably be quite a large black market but it'd be a lot less scalable it'd probably uh you know there'd probably be tasks for set up to kind of i guess um you know catch people doing this or to be a lot riskier and things like that so i would say that if there's anything to worry about it definitely is the um i guess like the us banning or at least choking these kind of like uh fiat on and off ramps or stable coins and things like that and i've spoken about this on the refill plenty of times that's the kind of things i would go after if i was

a regulator um but also i think that i i mean i don't think the us is going to do this like the us is definitely not anything like china when it comes to this sort of stuff the i mean the us can't unilaterally basically the us government can't unilaterally say well crypto is banned you know that has to go through the the the whole kind of like uh political process the whole um the democratic democratic process whereas in china you just have the one party the ccp who can basically say well crypto's banned and then it's it's banned and they can do whatever they want they can crack down on whatever they want they have the power to do that that's not the same in the u.s and that's not the same in a lot of countries around the world um you know especially obviously the

western ones that have um democracies and it's just very very hard to outright ban things um but in saying that what they can do and what is actually i think something that's worse than outright banning it funny enough is uh basically restricting people from being able to withdraw to their own wallet so say you can still buy crypto on exchange but you can't uh withdraw it to your own ethereum wallet for example which means you can't do anything within d5 or any other app you want to use on ethereum that to me is worse because what it does is it basically just turns crypto into this really boring thing where the only thing you can do is buy tokens on exchanges and speculate on them uh and then the whole thing just turns into a massive casino because if there's no if

there's no use cases backing it up then why people are buying these tokens if you can't actually use the networks because no one can be on board onto them then what's the point at the end of the day right so it just i think that's actually even worse and i don't think that's protecting anyone at all i mean it's probably protecting banks and and the incumbents and stuff like that but it's definitely not protecting uh uh retail investors or kind of like everyday investors or anything like that so um yeah those are kind of like the threats that i see of course um i think they're gonna train their hardest to and they probably will succeed at regulating the centralized stable coins uh because they're just so easy to regulate i mean they're already regulated to some extent but i think they want to clamp

down on it harder which i guess makes total sense i mean stable coin like stable coins obviously are a big deal they're they're they've got market caps and tens of billions of dollars there's some that are shady some that are not like taylor's obviously shady usdc is not and then you have like you know decentralized alternatives or hybrid alternatives which are either not very scalable or just like not as used as as these other things so i think that the regulators are going to look at these centralized stable coins and be like okay well we can we can choke this we can we can do a choke point here but we'll have to see how that plays out maybe they basically require kyc for everyone using a stable coin which would probably kill uh decentralized stable coins on on chain uh not on on centralized exchanges

but definitely on chain so it's going to be interesting uh we've got a lot of people fighting for us in in kind of like the political sphere right now fighting for crypto to make sure this stuff doesn't happen but uh you can never rule out this this sort of stuff here so uh yeah hopefully that answers your question dom all right we have one here uh one or two uh from md triple h uh regarding l2s and potential airdrops uh if someone were to deposit eath on optimism use uni to swap eight for diet then diet of wbtc then provide a small amount of liquidity to the wbtc eat pool and uni would that be enough to qualify for a hypothetical airdrop are there any other actions that would increase the likelihood of receiving an airdrop are the requirements for other l2 or sidechains the same different what did dydx require

to qualify so the first question would that be enough to qualify for a hypothetical airdrop i mean your guess is as good as mine i have absolutely no uh inside information here i don't know if these teams are even gonna do a token um i don't know if they i mean i i've said before that i think they will but i don't know for sure right um and i don't know how they're going to do their job or even if they're going to do one uh it's all speculation but obviously the easiest way to kind of like position yourself for that is just to use the network in any capacity um i i would actually like personally i would wager the more you use it probably the more of an air drop you would get uh if they wanted to do an airdrop kind of

uh in in in kind of like more of the right way or at least the right way that i see it so i would just i would suggest just using as much of uh kind of like the layer twos as you can and but the thing is like you could use it as well because it's actually just a good product like you get cheaper fees and everything like that so don't just use it for the sake of using it just so you can potentially get an airdrop one day because you never know maybe the airdrop uh snapshot only happens for in six months and they only count like the last six months worth of activity uh from that point and you kind of like stop doing things on the layer two network because you were just doing it for the airdrop so you never know how

they're gonna do it maybe they take the only the most active people on the l2 maybe they don't even take everyone they just say okay oh this address has been active you know every week for the last six months we're going to air drop a you know a more sizable portion to to this kind of like address here so yeah it's just it's anyone's guess but i would say just use these products as much as possible and then your second question are there any other actions that would increase the likelihood of receiving an airdrop i mean i guess like they may airdrop tokens to people who are contributing to the network in some way whether that's being in the discord channel um helping out people in the community you know answering support answering questions people who are asking kind of like for support and things um spreading the

word about it writing articles writing educational stuff there may be air drops for people like that as well so that maybe it might be something you can do maybe they'll airdrop two people who are using the bridges to bridge into these l2s i'm not sure if they if they will do that maybe that's a low chance but yeah i mean there's a few i guess auxiliary things you can do to maximize your chances at an airdrop and to maximize the amount you can get from it as well uh then your next question are the requirements for other l2 or sidechains the same or different i'm going to assume that everyone every one of them is going to do it differently so i wouldn't assume that you know you can do everything on everything the same on every network but again i would just do organic kind of

like user activity on each of these networks use which ones you actually want to use don't just force yourself to use them and don't just kind of like try and fake your activity to guarantee a higher air drop because i'm going to assume that these teams are going to try and filter that out if they if they're doing the air drops in the right way so that's kind of like i guess my thoughts on that one and then you ask what did dydx require to qualify um i think they require it was based on kind of like trading volume um before they took a snapshot so if you had traded a certain amount of volume you were given uh more of an airdrop than other people i think the base airdrop was like 1100 tokens or something like that uh so it was quite a sizable airdrop but then the

more you traded the more you got uh i think that's how it worked so i mean that makes sense right the and the thing is trading it it is very hard to kind of like uh spoof that because of the fact that there's fees associated with that so if you just kind of wash trading on there they do have a way to filter out what's trading as well but if you were sophisticated enough to maybe uh kind of like i guess make it look like it was natural activity you would still be paying you know lots and lots of fees so and it just depends on kind of like the volume that you were kind of pulling and things like that as well so that's kind of like how i d how do i dx did it there so yeah hopefully that answers your questions md triple eight here

all right i think there's three questions here from bulla 42 the first one what is the risk of using wrapped assets such as wrapped eath is it right to say as long as they are backed 121 with eighth and all is good so i actually checked up on this a few months ago with a smart contract developer that i know i asked you know what is the risk of using wrapped ether like is it actually one to one equivalent with eth in terms of trustlessness or is there a bit of added risk i mean wrapped ether is a smart contract but it is so basic it i mean it's it really the code is i don't remember how many lines it is but it's so so basic you can go look at it on etascan that i would actually consider wrapped eighth to be uh pretty

much the same as as normal eth in terms of trustlessness there's no one that owns the contract or anything like that it just exists on ethereum and as i said like it has minimal code so minimal surface area for bugs or exploits it's been around for a very long time now and no one's exploited it even though it has a huge amount of eth in there so i'm pretty i'm pretty confident in saying that it's basically 99.99 equivalent uh to eth you know you can never never be like 100 but i'm basically you know it's basically equivalent there um and of course it's always backed one to one with with eth because you can't uh uh you can't kind of like uh wrap air sorry you can't issue w8 without um depositing eighth into the contract and you can't uh get your eighth back

without swapping w e for it as well so yeah and i'm sure there's been um uh uh w8 that's been kind of like lost over time which means that eighth is just locked in there as well so yeah maybe it's a bit more than one to one backed if you count that as well uh so your second question as a newbie scouting your projects are there any high-level checks i can perform for a smart contract that can immediately alert me to something being wrong for example token distribution lack of multi-sig wallets if there is a good tutorial somewhere online about this that would be great um if you're not someone who knows how to read smart contracts then it can be a bit hard you have to rely on i guess like uh the social layer where you rely on other people calling this stuff out the ones

that actually know how to read smart contracts but i'm sure that there are some guides online for this like in the contracts you can see if it's a if it's a kind of like multi-seat controlling it or not you can kind of like see what the multiseat is and if is it like a is it just like a two of three or is it like a three or five and then like how many sign is and stuff like that like is there a time lock on the contract so that changes can't just have like uh can't just happen immediately they have to go through a waiting period period but uh generally yeah it is definitely harder for people who can't read the code you have to rely on other people um but i mean there's other stuff you can look at when you're kind of like looking

at a project just generally it's kind of like you know are they from like for me it's like okay what does their community look like does it look paid is it is it you know do they have like tens of thousands of community members but they don't have a product yet that usually means that it's that it's paid for um uh are they is their marketing focused on just talking about the token a lot usually means they're trying to pump the token there's yeah there's a few red flags that kind of like pop up and and things like that so that's another thing that i kind of look for but in terms of the smart contract itself i always rely on the social layer because i can't read smart contracts either uh and i kind of like make sure that i'm relying on relying on trustworthy

people too you don't want to just talk to anyone you want to kind of rely on the ones who have got a good reputation within the ecosystem and you can be you know pretty sure they aren't lying to you really at the end of the day all right so third question i recently chanced upon a project that had the following characteristics uh i guess is the follow-up to a second one no audit liquidity pool's not protected by a multi-sig as there was one dev only however they claim it this uh they claim that this is fine uh sorry i just gotta uh yeah sorry they claim that this is fine as they are a fork of impermax which has been audited by certik and while some protocol parameters can be modified at the discretion of governance in the future the core contracts are not upgradable

does this sound like a ticking time bomb to you well i mean just because something's a fork doesn't mean really anything um it can be forked and then modified right uh and the developers can say whatever they want and you know if you can't read the contract yourself then you're just trusting the developer on that front so what can end up happening is that they can fork it and then they can just like change a few lines of code and and basically change something critical where they basically have you know full unilateral control over it in some way they they maybe introduce a bug without even realizing it like they could they could literally change one character in the contract and introduce an exploit that could mean that all the funds in the contract were drained that's how sensitive these things are and that's exactly what happened with the comp

token contract the other day they were missing two characters or two of the same character in in in two sorry the same character in two different places and that's what resulted in 90 million dollars of comp tokens being paid out when they shouldn't have so um i would never trust the developers to be honest with you even if they say oh this is a fork and they say oh well you know we can't modify anything because you just don't know you have to actually check the code for yourself or you have to ask someone that you trust to check the code for you as well so and you know just because the original contracts were audited as soon as any code change is made that audit goes out the window it doesn't count anymore really i mean as i said because you can introduce a bug with just like a one

character change of a smart contract so i definitely wouldn't trust the developer's uh uh you know word on that i would i would i'll get someone else to check it too but i know this stuff is kind of like not not easy to scale either and that's why we see a lot of rug pulls because a lot of people just take the i guess like developers word at i kind of like face value and get themselves either exploited or scammed or you know rug pulled or whatever they're calling it these days but uh generally if you want to protect your funds you you definitely should check and and kind of like get a second opinion so to speak on on these kind of contracts outside of the developers of course all right another one here from dom what are your thoughts on the rye stable coin

if it accomplishes what it claims to do it seems like a big deal yet i barely hear about it anyway is it just a matter of poor marketing or is there a fundamental downside i'm not seeing so i guess i should give a bit of context about rye and what it is for people who may not be familiar with it um rye is a stable coin that's pegged to itself it is not pegged to the us dollar it maintains its stability but uh through um i can't remember exactly what the mechanism is called it's like it's something got to do with control theory um and as i said it's stable to itself which means it doesn't target one us dollar it targets an arbitrary value that has been set um and it's only backed by eighth as well so people were saying okay well this is like a truly

decentralized stable coin because it's not pegged to the u.s dollar because obviously the us dollar loses purchasing power over time it's pegged to itself and it's backed only by eighth which is truly decentralized collateral and as far as i know i don't think there's any centralized kind of points of failure as in admin cares or anything like that and i don't think there's any kind of like governance or any heavy governance in it so um from the on the service it looks really good but it hasn't been tested in a really big way yet it's been out for quite a while but still it needs to go through more trials of fire it hasn't really scaled up to i guess like the the scale of other stable coins out there it definitely needs better marketing maybe for people to kind of like pay more attention to it

and say and to kind of like uh uh i know about it as well because yeah i don't hear about it too much either but if it does accomplish what it aims to do it definitely is probably one of the best stable coins we have um and especially because it's not pegged to the us dollar uh because you know pegging to the us dollar definitely not just not only do you inherit the kind of like inflation that the usd suffers over time which means loss of purchasing power but you also inherit i guess like the um the uh what is that the risk of of of just the us generally right you and you inherit the kind of like risk of um the peg coming off for whatever reason because of the usd doing weird things or whatever um or maybe the us government decides to

outlaw you know all stable coins that are pegged to the us dollar uh and that could affect the decentralized ones as well out of kind of like a panic so it's good to have these things um definitely just be outside of kind of like nation states and outside of picking yourself to a nation-state currency uh but yeah i just think maybe it just needs better marketing i think they might might be being quiet just because they don't want to get they probably don't want it to get too big while it's still in these early phases but if it works yeah it's going to be massive that's for sure all right a couple of questions here from max invests first one confused about volitions and validiums can you give me a tldr on what they are and why you are so excited about them so uh volidiums and volitions are a type

of scaling construction that peeps that i've gotten into a bit of a discussion with people lately about if these things are actually layer twos or not so i should actually define exactly what a layer two is so something is considered a layer two if both um the proof of the transactions being executed off chain is posted to ethereum layer 1 and also the data is posted to ethereum layer 1. that is what is considered a true l2 zk roll-ups and optimistic roll-ups are the true l2s because of that now volitiums and volitions take a trade-off where validium will store the data portion of um of kind of a of kind of like the scalability um piece for example and and when i'm talking about data i'm not

talking about uh kind of like data such as uh metadata for nfts or kind of like jpeg files for nfts i'm talking about user balances and stuff like that so the actual data about okay who owns what asset you know what's the user balance of this account at this kind of like state and all that sort of stuff that need that goes on chain and in as part of a zk roll up and a an optimistic roll ups and that's why z kit roll up i mean that's why i mean optimistic robs are kind of like more expensive and zk roll ups uh that are as well but they're a bit cheaper but they definitely are more expensive than something like a validium or a volition now whatever lydium does as i said it takes the data off chain so it'll put the data on what's called a

data availability committee which is just a bunch of nodes running off chain that kind of um keep the data available and feed that data into the voludium so that you can get that more scalability so the only thing that the volitium is doing is posting proofs or that they're running the transactions to layer one now the problem i mean not the problem but like the trade-off with the volidium is that uh if you if that data is inaccessible for whatever reason if you can't access that data because the community has gone offline or they've just withheld it from you because they're trying to censor you then the potential issue becomes you can't actually withdraw your funds from uh this kind of like lithium construction your funds are frozen and there's nothing you can do about it so obviously that is uh not a uh not an ideal

scenario that's obviously just a massive trade-off that you would you kind of like you take when using these kind of solutions um but it is a stepping stone to the kind of like next solution which is a volition which is like a volidium but it gives you the option of where to store the data you can store it as part of a daily data availability committee or you can actually switch on what's called ck roll-up mode and store it on chain so volition essentially just gives you a choice of what to do with the data and potentially you can um store it anywhere really the as far as i understand it you can store the data on your own pc if you want to and then provide that data to um to the layer one where you wanna withdraw your funds and things like that

you know especially in the case that um the the kind of like construction withholds the data from you or it tries to sense you or something like that then you kind of get that option there now the the reason why you take such these trade-offs is because you get massive scalability out of this posting the proof to layer one ethereum is very very cheap the expensive part is posting the data the call data um and if you if you kind of like don't post that to layer one you obviously save a lot and that's why uh platforms like immutablex which are over lydium allow for uh free minting because they're covering the cost because the costs are so low like literally you know pennies on uh uh or even just like less than that i think you know to mention nft is like maybe uh

0.001 cents or something like that something very very cheap but as i said there's a major trade-off there where the data is somewhere else it's not on chain but the thing is the reason why we're using these solutions is because ethereum's uh uh kind of like capacity ethereum layer one's capacity for uh data availability or for data in general is low right now because we only have the single ethereum chain we don't have data sharding yet but when we get data sharding we'll be able to have uh initially with 64 data shards 64 x more data data availability capacity than we have today and that lends us to be able to do kind of like those true l2s in a more scalable fashion and then we just add more shards over time and things like that but in saying that

i think that uh the the trade-offs that these that these things are making like validiums and and i mean evolution is better than a validium uh i think the the trade-off that evolution makes where it allows you to kind of like select where you want to store your data is really really cool i i really like that i think that's an awesome solution an awesome hybrid solution that basically allows for really really nice scalability while also giving the users the choice of how secure they want this thing to be um and you know depending obviously the costs are going to vary and things like that as well uh but like over the longer term we're definitely going to get to a point where we're going to have so much space for data on layer 1 that it's going to be kind of like cheap to have these as true

l2s as well so hopefully that kind of i guess um answers that question i think i think you had a follow-up question within that as well i was like what is the nature of data availability solutions um the the thing is is that there's a few kind of like blockchains out there that are just trying to be data availability layers like polygonal veil and celestia they aren't trying to um do what ethereum is doing is where ethereum is doing the security and settlement layer and data availability layer with with sharding um but the problem is is that from my understanding if you store your data on celestia or avail for example well then you're at the mercy of their validators you're at the mercy of that network so from that perspective you're not getting

ethereum level security you're getting a veil or celestial level security they're good solutions don't get me wrong and it can actually help us scale but it and it's probably better than just trusting like a handful of nodes uh to kind of like keep your data available but the the problem it becomes that you're trusting just like another network so you have like a trade-off there so that's kind of like how to think about data availability solutions and so your second question here is i think a bit of a follow-up as well um what's the difference between the crappy btc layer 2 side chains whatever it is called stuff like um rsk and ethereum layer 2s so because bitcoin doesn't have an expressive base layer it doesn't have kind of like a virtual machine it can't uh verify uh like layer two proofs and things like that it can't have uh cool

data stored on it uh bitcoin the only quote-unquote layer two that bitcoin can do is are state channels which is the lightning network and they work very differently to how roll-ups work um so bitcoin is relying on side chains which as we all know probably by now side chains are very very different to layer twos when you rely on a side chain you're relying on the nodes within that side chain for everything for both data availability and security of your funds and then you think about the bridges as well into that like when you're bridging into a side chain you know what's the trust assumptions of the bridge too so a bit bitcoin can't do roll-ups if it added the ability to verify um proofs and have cool data and stuff like that it could do um it could do uh true kind

of like uh zika relics and optimistic roll-ups if it added the ability to just verify the proofs and not do call data then they could do like evolutionary validium but we all know that bitcoin doesn't change right it just and i i don't think they're actually going to do this so from that perspective they have to rely on side chains or uh the lightning network which is inherently very limited as well because it inherits limitations of bitcoin's layer one so those are the kind of like major differences between the things um rsk as far as i know is a side chain rootstock there was also this thing uh i think this was kind of like in research for a while called drive chains which i think i think is what rollups kind of like uh similar to um at least they take some things from drivetrains but i'm not

entirely sure it was definitely something that came out quite a while ago now so yeah hopefully that answers your questions there max invests i'm going to take a quick drink break and i'll continue with the rest of the questions all right so i get a few here from rv deeb um do you validate both uh sorry i've got a few questions regarding running a non-validating node do you validate both current chain and beacon chain or only one so i guess by non-validating you would mean like not becoming a validator so not having the 32 eth to become a validator or running

validator software um and not having like a mining machine to kind of like mine um so i mean personally i run an eth1 full node and an e24 node which is called beacon node and obviously validators that talk to that beacon node and kind of like run off of it so uh yeah i mean i run both of them and not everyone does i mean some people don't run an eighth one node and just like point their their eth2 uh kind of node to an eighth one node and and and do it like that you can do that but i guess that um introduces additional trust assumptions so you obviously just for maximum kind of like trustlessness you want to run your own nodes um so yeah that's the kind of like i guess the question the the answer to that one

um what happens after the merge are there two chains to validate so there's not two chains to validate there are two layers to kind of like uh i guess like validate um the consensus layer and the execution layer the consensus layer consists of the beacon chain the execution layer is basically what we know as one today without proof of work so in a post-merge world um you can run it you don't have to run both of them but you know you would be running both of them you would be running your beacon node with validators talking to that beacon i mean okay i take a step back you don't actually have to run a beacon node either if you have validators you can you can talk to other beacon nodes but ideally you want to run your own so essentially what you do is you run your

beacon node if you want the most trustless setup you run your beacon node on your machine uh you run your validators off that beacon node so they're talking to that one then you um uh have a have an uh an execution layer full node up like a gathered aragon and you have your beacon node talking to that and and then kind of like you have like the full trustlessness and you don't have to trust anyone you're you're validating everything by on your own and kind of like on your own hardware uh and you get like the full decentralized experience like that so there's not two chains to validate to answer your question there are two layers to i guess um run for no uh full nodes for if for backup for lack of a better term there the beacon node um and and the kind of like in consensus sorry the

execution layer which is uh the eighth one kind of like full node as we know as we know today all right uh the next question are there any benefits to running a minority clients so this has been a hot topic i guess over the last few weeks within the film community especially when it comes to eth2 because the prism client is a large part of the network it's around 64 percent of the network uh lighthouse coming in at that second at 21 and then you have nimba senteku taking up the remainder the benefit of running a minority client is so it's two i think it's two or three fold the the most important benefit is the fact that if you run a majority client and something goes wrong with that client you're more successful

susceptible to being slashed uh susceptible to being slashed because the way the the um the eth2 proof of stake works is that if if the network detects that you and a bunch of other people uh do something malicious or kind of like go offline at the same time or whatever like say you know prism is like 50 of the network and 50 of the prism clients go down well you're going to get a much harsher penalty than just your yourself going down because the network is going to think that okay well you know this is really bad all these clients went offline at once all these clients stopped validating all these validators stopped validating the chain at once uh let's punish these people for that so it's it's in your best interest to not run on the majority just from an economic

perspective but also i guess the second benefit is the health of the network so i explained this to my newsletter the other day but if 66 or more percent so two-thirds or more of the network is running on one client it means that that client has the final say uh and and kind of like the final say in terms of what the actual canonical chain is so for example if the majority client if the two the client that has two thirds had a major bug in it and uh and kind of like it forked off onto its own chain because of that bug and the other three clients came out of consensus with it um it would actually finalize on that new chain after 12 minutes which means that if you wanted to revert it you would have to uh basically um uh slash all the

finalized stake which is billions and billions of dollars and lots and millions of eth um and and then you basically kind of fall into this trap where you have to kind of go back to the the social layer and say well we need to kind of i guess like come to consensus on uh rolling back the chain or kind of like rolling it back to this point where this bug uh kind of like it gets fixed and and kind of like reversing all the finalization and everything and it i mean it's it's a huge mess like i mean this sort of the the the beacon chain was designed so that this stuff doesn't that this stuff can't be done very easily at all and it's like the last resort sort of thing so by running a minority client you help the health of the network and you help

you help the fact that we don't want any one client being more than two-thirds of the network because that's really really bad just for the network in general because of the reasons i outlined so those are just like the two major benefits i think you know the the last benefit would be maybe that uh you're just helping these teams like feel valued as well like the teams that are the maybe the smallest client on the network that only has a couple percentage share if you you know you spin it up and if and other people do maybe they gain more market share it makes their work feel more more valued at the end of the day and i can tell you right now the majority clients like prism for example they have no issue with people using other other clients instead of theirs because they uh they very much know that

uh the network health is is a major priority and the multi-client architecture is a major way to to ensure network health um and on that note as well they they put out i mean the pry labs team put out a blog post the other day where they basically said well we think that um we shouldn't force people to like change clients we shouldn't kind of like bribe them to do it whatever and prism is going to still uh sorry prolabs is going to keep building the best client they can but the way you do it is you just coordinate as community and you signal to the community that hey you know we need to to um make sure that the network's healthy all the clients are awesome but you know just for the sake of the the network if you can uh run you know run a different client and this is

more more so for i guess like the large staking providers and and newer stakers i know old stakers or ones that have been mistaken for quite a while are very hesitant to change their setup because they said it's been working well so why change something that's not broken it could introduce kind of like bugs into their own system they could get slashed for whatever reason so people are very scared to do that which is fine so we should focus on like just getting new people onto these validators giving them to these minority validators but also kind of like explaining the benefits to them too so yeah hopefully that kind of uh answers your question there you ask where can i see current client weightings there's actually a website that i pointed out on uh the refuel nodewatch.io uh so if you go to nodewatch.io it was a

website made by chainsafe i'm just looking i'm just looking it up now you'll be able to see kind of like the nodes and kind of like the distribution between them and kind of like geographic location and stuff like that as well but do know that this is an approximation okay an estimate it is not going to be 100 accurate because um kind of like um sorting out all these nodes and trying to kind of like figure out what's what he's just based on a bunch of heuristics that aren't you know 100 kind of like uh uh uh 100 accurate so yeah but still they're accurate enough to get like a decent picture of the network and your final question any opinions of dapnode's pre-built boxes can you run any client software from these um i think the previous boxes are fine uh

dapnode comes i mean dapnode is software so their pre-built boxes obviously just like the hardware that their software runs on um so that note is basically just like a i guess like a uh i mean a piece of software that allows you to run different clients not just for ethereum but for other chains as well at a click of a button so it's kind of like purpose built to allow you to to run any kind of like client and just do it very easily and update and stuff like that i mean i would recommend it people who just want an easy way to have like an eth one or an e2 kind of like set up uh with with nodes and validators and clients but also you're relying on them to deliver packages and stuff too and you're relying on them to update things and yeah it does introduce a little bit

of extra trust into them into the mix here uh but still a pretty good solution for people who who definitely want something just you know easier than doing it themselves sort of thing all right on to the next question comes from jvr lux i think i think it's javier or jv i think the jay is silent there you have your lux uh who asks uh about ew blockchain and the polygon integration um are you uh there's actually a long question here i think they want to know um sorry i'm just looking for the actual question here's a bit of a paragraph uh i think just like from the gist of it here they're just kind of like asking my thoughts i guess on this and you know what it means uh for the wider kind of like enterprise

ecosystem and what it means for kind of like big corporations banks whatever it's getting involved with uh with crypto and stuff like that well so i guess like just focusing on ey's blockchain initiatives and nightfall which is the roll-up that they kind of teamed up with polygon to kind of put into production i think that's like super awesome like it's it's really cool to see that these large enterprises are getting involved and putting their resources and like both monetary and personnel resources behind this new technology and built and building things on the ethereum mainnet especially because it's all well and good to build things in private uh you know behind closed doors and stuff like that but the crypto ecosystem doesn't work like that we generally like the openness we like open source stuff and that's exactly what happened with the ey

nightfall software and now that polygon is kind of putting their weight behind it essentially it's got like a really great um marketing and bd effort behind it so they'll be able to get uh you know more users that way as well so i think that's you know really really positive i really like uh like that outcome there but i mean they're not the only one doing this there's plenty of corporates and enterprises getting involved with with crypto now i mean visa uh just announced the other day they're building their own kind of like layer two payment network obviously is getting visas getting involved with other ways like buying crypto punk and stuff like that you had mastercard do stuff as well uh jp morgan um has you know had their quorum fork of ethereum that they worked with for quite a while and they're doing a bunch of other stuff

in there too um but yeah i mean there's there's plenty of these kind of like things just scattered around microsoft's done a bunch here as well so these corporates and enterprises are definitely doing a lot of a lot of things both in private and in public so i think it's just very very very um a kind of like a very good sign and especially that they're building on ethereum and see the value of ethereum too so yeah hopefully that kind of like i guess like answers your question here you just had like yeah a bunch of i guess uh comments about corporates getting involved and stuff like that um uh and then oh yeah no yeah okay that was your first question there uh and then the second question is are you aware of accentra ibm global services uh capgemini we pro projects in ethereum

blockchain like are they working with ethereum um i'm sure they are i think i i saw that accenture and ibm were i'm not aware of those other um kind of like corporates there but i'm sure pretty much every corporate you know big corporate enterprise has some kind of blockchain research or division going on or at least they're aware of it and they're trying to spin something up um that would be my assumption at this point in time but a lot of them are definitely not public about it either maybe they don't want to be public about it till they have something tangible to show but there are ones that are public about it which is cool to see as well so stuff like ey and things like that so yeah hopefully that answers both of your questions there all right another one from bula 42 who

says you mentioned this is the era of l2s what are some ways to get exposure to promising l2s eg optimism and arbor trim don't appear to have tokens at the moment um so i guess like i went over how to position yourself for an airdrop earlier for for these kind of networks in general so that's one good way um the other good ways of obviously just buying eth because like a lot of the value flows back to eath anyway but that's probably a little bit of a cop-out answer there um but uh just thinking more generally the way i'm playing it is the kind of like bridges that and the supporting infrastructure uh around it and like the layer twos themselves is is kind of like obviously what you want to purchase to get exposure to it but obviously a lot of

these l2s don't have tokens yet um you know i'm uh i am a kind of like uh an investor in arbitrary but that was done privately there is no there was no public sale for avatram uh so that's how i got exposure there i'm an advisor to polygon so i have uh i i i get i get um compensated in medic tokens over time um you know and i'm not telling you what to buy here and because it's an investment advice and what not to buy but i mean if you're thinking about liquid tokens that are actually available for l2s i mean matic is obviously the um the the kind of like uh i guess like the most well-known one uh yes they have the pos chain which isn't an l2 but they're also building l2s i mean and they also have one live the hermes is live they're

doing a lot of stuff in the background but i mean disclosure advisor polygon so i'm not trying to show you too hard there but it's it is kind of hard right now to get direct exposure to these things because a lot of them don't have tokens and i doubt any of them are going to actually do public sales they'll probably do airdrops but i really doubt if they're going to do public sales or not and if they do they may just do it through coin list which is inherently very limited because there's so much demand for these sorts of things that you may only get a very small allocation as well then you look at things like bridges um hot protocol uh connects by economies hyphen um seller network all that sort of stuff some of them have tokens seller has a token uh synapse has a token um you know

i'm assuming hop and connects are going to have tokens you know you you obviously uh you know maybe you'll get an airdrop so you're going to want to position yourself for that as well by using these bridges but again it's just very hard because not many of the the tokens are live yet and when they do go live they're probably going to be worth a lot of money from the get-go because there's so much hype around these things so unfortunately it is hard to get exposure right now so like even for me i mean i i as i said like i'm an investor in highway trim and have um kind of like um my uh the the advisory ship to polygon but you know i'm not an investor in stock where um or like optimism or some of these other ones um so like not even i can get

exposures to everything because there's just so much kind of like i guess fomo for these sorts of things these teams probably don't even feel the need to raise again because they're like well you know we can just kind of like put our token out there and and if they do if they do have a token maybe we can kind of like just um have a treasury where we we kind of like decentralize out the protocol and then we kind of um you know find the operations through the treasury via the token and stuff like that so yeah it is kind of difficult but in saying that uh try to position yourself for every airdrop with all these sorts of things because i i would be very surprised if um if if if they don't do air drops like i'm pretty much very confident that they'll

all do air drops in some kind of capacity so i mean as i said earlier just use these things use all the l2s use the bridges use the supporting infrastructure and everything like that that's built around it um and just make sure that you you kind of like position yourself for the best possible way to get those air drops and to get exposure to this because i mean i obviously firmly believe that the next kind of i guess like few years is going to be heavily focused on the l2 ecosystem and everything connecting that and everything supporting that so that's where i'm placing a lot of my bets but at the same time the l2 ecosystem works to reinforce eth as an asset as well and as you guys know i buy stack eight in different ways you know pretty much every day

so uh you know that that would not be a good option for you as well if you want to just kind of like broad exposure uh to the whole kind of like i guess theorem ecosystem but again none of that is meant to be investment advice just kind of like how i'm playing it all right one here from kb house who says what is the best way to keep track of upcoming developments in the l2 bridges space for non-tech people listening to your show certainly one way but would like to find out other ways to broaden my knowledge so i would suggest if you want to just keep track of all the developments of any project just do it join the discord channel they pretty much all have one and follow their announcements channel or follow you know follow their kind of community channels and and just talk to people talk to the

developers um ask for their you know what what they've got coming up ask you know don't pester them about it don't say oh you know when when token or like when uh this part of the roadmap or when this when that don't don't be like that but you know just talk to them and get to know them and kind of like uh get to know their project and get to know what they're working on that would be a really good way another way i mean if you want another you know there's plenty of news aggregators out there right now obviously the daily guy will keep you up to date with pretty much everything on the bleeding edge uh but bankless is is is essential as well they have interviews with these with the people um building these sorts of things whereas obviously the daily doesn't do

interviews and stuff like that um keeping up to date with uh just like general kind of i guess press releases too from the block and stuff like that uh and maybe even coindesk uh that'll keep you up to date too twitter obviously is a great tool um reddit reddit used to be a better tool than it is today for for seeking new alpha and just follow smart people as well on on twitter that are talking about l2 stuff all the time because they'll be the first ones to point out any of these new developments and stuff like that so those are my ways to keep up with it but again the funny thing is is that my goal with the daily guay refuel is to basically make it so that you don't have to go anywhere else to get all the info on everything like i

make sure that i you know cover all these sorts of stuff on there but that's not me telling you that you shouldn't go elsewhere and find information elsewhere you shouldn't just centralize within the daily way um but i'd be surprised if you were able to find information elsewhere like i've been covering stuff on the refuel now for uh for a long time and it's always funny when i see people kind of like talk about it in my circle two weeks later and i'm like hey guys don't you watch the review i talk i talked about this two weeks ago come on and then they're like oh go i don't have time to watch the review i'm like oh okay fair enough fair enough but yeah i just think that like um i pretty much cover all of this stuff anyway uh because i i pretty much uh i'm

i'm as i'm signed up to all of the um the new the different newsletters i uh i i'm on twitter all the time i have like all the discord channels on notifications for announcements and stuff like that but if you want to keep up on your own for the bleeding edge you know you can do all the stuff that i do that i just outlined all right uh question here from bo huss bohus dot a eth there are so many bridges between l2 side chains already and it's hard to keep up with which one is the cheapest and most capital efficient do you know if there are some bridge aggregators which checks multiple bridges and chooses the best one or is anyone building it yes there is it's called lee finance so li finance i don't remember their twitter handle but i will get that

for you right now um because i'm pretty sure i'm following them uh lee finance let me have a look yeah so it's it's le-fi protocol so lifi protocol is their twitter handle um and it's li.finance now this is in very early stages it is not compatible with everything um it's kind of like in a i guess like a beta stage right now but this will be an aggregator for all these bridges it will be an aggregate of all the chains that the bridges uh support and for all the assets as well so yeah there is someone building this right now which is really cool uh i came across this project the other day and i was like oh my god this is awesome um so yeah definitely go check that out if you if you're kind of like concerned with that sort of stuff there

and your second question here uh berhas is you say in optimistic roll-ups funds can be stolen if there is one if there's no one that checks the published state fraud fraud proofs assume at least one honest and able validator if is there any data dash or dashboard showing that there are some validators that actually check the transactions produced by sequences on existing optimistic roll-ups if not how can we be sure that sequences provided arbitrary optimism actually produce valid transactions um with optimize and arbitrarium right now i'm pretty sure they're both completely centralized like i think i've mentioned this before where no one else can run a validator node right now so you're basically just trusting them to to keep the state of the network uh um you know um sorry to produce the proof if they do

detect fraud and to go through that whole process um but the thing is is that from my understanding they can't be fraud unless they do it themselves because no one else is running a validator right now so um that's kind of like my understanding maybe i'm off there i haven't actually kind of looked into that just yet but uh from my understanding yeah they're both totally centralized so i wouldn't be worried about checking it you just have to trust them at this point in time that's going to change over time when they decentralize out their validators and anyone can kind of i guess um go through the fraud proof system and anyone can can can do that and put up bonds and stuff like that as well but right now i would assume that it's all on the optimism and arbitrary team because of the fact that they're they're

the only ones running validators and and sequences all right uh one or two here from you on the phone uh could you go through the metrics which proved that ethereum is by far the most decentralized blockchain um so the thing is about talking about like what makes a blockchain decentralized and why ethereum is the is the most decentralized it's less so about the metrics such as like how many full nodes there are and kind of like what the mining pool distribution looks like and what the token distribution looks like and it's more about the social layer and the subjectivity layer now what i mean by that is within ethereum we have like a governance process right we have a rough consensus off chain governance process there's no on-chain binding governance

process you can do token voting if you want but that token vote doesn't give you any power over changing things on the network the way that changes go into the network it goes through the eip process which is the ethereum improvement proposal process which includes uh basically community feedback community kind of i guess requiring community consensus and ultimately to get an upgrade on the network you need overwhelming community consensus like what we had with 1559 for example which is a which was the highest profile erp in existence i think ever besides the merge so from that point of view i would say you need to know that there is a culture of people who care about decentralization enough to speak up when

they see that something is kind of like ori or something is kind of like going wrong within the system or there's a eip for example that has been proposed that is not in the best interest of the system we've had a few of these within ethereum we had the prog power eip which a lot of ethereums felt was not a great eip it didn't solve the asic kind of like problem on the network and that our goal shouldn't be to kind of like be acid resistant because we're getting rid of miners anyway so it doesn't really matter in the long term another one was an eip to basically bail out the parity uh multisig wallet that was exploited and the funds were frozen in there that again was rejected and i'm pretty sure there's a few others out there as well but those are kind of like i think the

two most high profile ones so we were able to reject them as a community because we have a culture of a lot of different people thousands tens of thousands people probably that really care about ethereum the network care about decentralization run their own full nodes care about the governance process and we also have uh you know core developers that are distributed throughout the um throughout the world they aren't just working for one company or foundation obviously the ethereum foundation does fund core development uh but it's not they're not the only ones you have no cess funding core development you have uh independent teams like nethermind and stuff like that as well uh and building you know the different clients and things too so they're not all just funded by one entity

so there's that aspect to consider uh but then yeah i mean the hard metrics obviously the amount of full nodes that are running how easy it is to run a full node the token distribution like uh you know what what kind of players are involved with the ecosystem is it all centralized in one kind of like exchange or one kind of like central acta all those sorts of things you know how how um decentralized is is kind of like the um the app layer as well and things like that like is it just like a handful of apps that control the network or are there lots of lots and lots of apps that all have their own say within within different uh within things uh stable coins play a big role as well it's like is there is there decentralization amongst the stable coins or distribution at least amongst

the stable coins uh i think there are uh so all those sorts of things you you kind of like um take together and as i've mentioned before balaji has a really great post on this called quantifying decentralization that he posted in 2017 and it's aged really well so yeah from my point of view i don't think you can just look at the hard metrics and draw a conclusion from from that because the hard metrics can actually be spoofed and there actually can be a lot of misinformation around this where a blockchain can claim oh we have 10 000 full nodes running but then um in reality they're not actually full nodes at all they're just like these things that they've fluffed or maybe they're actually fluffing the metrics on their their kind of like website and they're just faking them completely uh and you you know you have

to just trust that they're not sort of thing so from that point of view those kind of metrics uh yeah obviously can be faked but you know the social side can be faked as well it can be like astroturf there can be bots spun up to kind of like put weight behind an opinion that isn't consensus but to make it look like it's consensus so governance just generally is very hard and governance is at the heart of whether a blockchain is decentralized or not i think like the governance process to kind of like get upgrades in or out of the network you know it's funny because bitcoiners will commonly say well bitcoin doesn't have any governance bitcoin is um and it doesn't change and that's it well no you do have governance you have uh the governance of not having governance that is still governance because um by

rejecting changes to the network by rejecting hard forks that is governance because you know what happened in 2017 with bitcoin with with um the the kind of i guess hard fork to increase the block uh size limits uh they rejected that as a community and then the people who wanted it forked off as bitcoin cash right uh that's still governance like you can't just say oh we have no government you do because you you you fought back against something that you didn't want in the network that is a form of governance so bitcoin's governance is the exact same as ethereum's but ethereum's uh embraces it and ethereum kind of says well we have like a process in place where we embrace hard forks we'll do them regularly because we want to put upgrades into the network and we're happy doing that so um yeah hopefully that gives you like a

bit of an idea of how i'm thinking how i think about decentralization and how i think the hard metrics don't always work very well um but on the flip side they do work very well for things that are very obviously you know centralized for example and i've brought this up a lot before if you look at um at solana right now uh the top 19 validators can halt the network so 33 of the state can halt the network which means they can shut it down they can stop transactions from happening on there and there's nothing you can do about it and also it's really hard to run a celina validator it's also really hard to run a fully validating node i don't even know if it's possible to do that because you know the more transactions there are the more state that builds up over time i don't know

what kind of like um uh kind of like solutions they have in place for maybe discarding state over time which introduces new trust assumptions and stuff like that i mean it's just it varies from chain to chain and there's like different terminology and different things happening on all the different chains so it is hard to do to kind of measure that stuff um so that i always look to the social layer and i always look to the kind of like the the history as well the historical context too to kind of like see you know what's happened in the past is there a is there a culture of rejecting bad changes is there a culture of people being active in governance and all those sorts of things yes well you know maybe you know this thing is actually decentralized and stuff like that so hopefully that answers your question

there and your second question is you mentioned that it would be a good idea to use these l2 protocols and bridges in some fashion because they're an opportunity for airdrops do you think we'll be okay just using the protocol once i've already talked about the airdrops um i think at the start of the the the um the ama and also uh just before so definitely go check that out for my answer to that i think the question was from uh where is it uh md triple eight that's the that's the question i answered around around airdrops and what to do there with regards to layered two all right on to a question from xerox boomer my number one source of unbiased info is the delegate number two is bank list i'm looking for number three and four to fill out my working day do you

have any recommendations for regular content podcast that can fill those hours they can be very technical uh and thank you for everything so i listened to a bunch of different podcasts but um it just depends like what you're looking for if you're looking for technical stuff i would suggest listening to uh the podcast uh zero knowledge uh that's a really great podcast it's it's very technical but it's very good um i like listening to up only not as more of kind of like a casual listen and a casual kind of podcast where there's a lot of comedy kind of uh rolled into it but still kind of like hits on a lot of different things and they have interesting guests on um i'm just going kind of going through my podcast up here too to see epicenter has has done a lot over the pa i mean

episode has been around for a very long time so they have a lot of really great episodes um i do listen to other ones sometimes like unchained and block crunch but yeah in terms of my core i mean i'm the same bankless i mean i don't listen to myself on the daily gray of course but bankless is my is part of my core rotation um i do enjoy up only um i would say you know um into the ether the one that i do with my co-founder eric connor we do actually a weekly recap of ethereum and it's it's him on there as well so it's kind of like not just me even my thoughts he's given his thoughts as well uh but that might be a little bit redundant if you listen to the daily gray every day because we do cover pretty much the same

stuff but still it's good to get someone else's opinion on it and we have like a have like a really good vibe going on i mean the podcast has been around for for quite a while uh but it does just general content too i would say that there are a few youtube channels out there that i follow um find maddox is is or cinematics i don't i think that's how you say it it's really really great has a lot of great educational content but it's a kind of like kind of semi-regular video uploads like maybe once a month once every two months but every time i do upload a video it's really great and it's really educational um on top of that i guess like twitter as like a content machine like everything's pretty much on twitter uh i would go on there obviously and and read it to a lesser extent but

um yeah i think like delegate bankless and a few of these other ones like you have pretty much like a lot covered in terms of uh keeping up with the ecosystem already uh and if you want to dive deeper as i said zero knowledge has a lot of technical stuff going on epicenter um you know there's a few others out there as well that i sometimes listen to like uh where is it uh delphi digital uh sorry delphi podcast it's pretty good as well um but yeah i mean that's kind of like what i listened to at the defiant too i mean it's just funny because like bankless produces so much content that i find myself myself listening to them a lot uh a lot more than any other ones out there but there's plenty of uh plenty of podcasts out there um and plenty of kind of like

uh youtube channels as well uh yeah as i said cinematics and i mean benjamin cohen or into the cryptoverse he does a lot of videos pretty much all of them are on trading so if you're into i mean not trading but like macro kind of like outlooks of prices and stuff like that it doesn't really change day to day but if you're interested in that you can definitely do that watch those i tend to watch them when i'm eating lunch just as something to have there in the background um but i've been watching him for it for a while now and he's not like chilly like the other kind of like youtubers and stuff like that um but he does do videos on other coins not just like eth but i tend to just watch his ethan bitcoin videos so yeah hopefully that helps you out there xerox boomer

all right another one coming in from bulla 42 who says when yield farming can you share with us your risk management framework for example i believe diversifying deposits across different platforms is one way however are we also diversifying risk if we deposit funds in different pools within the same protocol um uh eg ren btc pulling curve and hbtc pulling curve deposit funds into the same pool same protocol but different network uh eg run btc pull on badger dow on ethereum mainnet versus ram btc pull on badger dao on arbitram so i mean there's always these compounding risks of course like if a protocol is using another protocol and is using another protocol then you inherit the risk of all those protocols perfect example being like alchemics and this is a strategy that i've used where

um alchemics maker and curve sort of thing where or in urine sorry i should say well i mean you're an and curve um i would put my eth into maker risk one i would i would kind of uh you know i risk one being the maker risk uh the risk being you know smart contract uh risk uh uh peg risk because i draw die um uh kind of like uh getting liquidated risk but i mean i keep my gradation price really low but some people don't some people like to play fast and hard so there's that that that kind of thing there then you know i take my die put it in alchemics um and then alchemix obviously puts that into yearn and then yearn does their strategies with curve so alchemics yearn curve makeup four different platforms four different levels of risk uh and you

know diversifying it across different platforms is sometimes pretty hard because uh if you kind of like if you kind of like borrow funds from ava for example uh or kind of like deposit your funds into rv to earn like a yield maybe someone else has borrowed those funds to go do something else another contract or maybe they put it into a curve pool and then the curve pool kind of like becomes unstable because a coin loses its peg and then all these kind of like stuff happens at once maybe die loses its peg because it does you know sometimes maybe it goes to 95 cents and then you know all this stuff just happens around it so there is compounding risks here but my risk management framework is to basically just use the protocols that have been around for a while um as i said i did do the alchemic strategy but

i didn't do it for very long um and i stopped doing it when the their kind of like eighth exploit happened uh unfortunately i just kind of like was like okay well if it happens on the eighth contract then there's no reason it can't happen on the other one and i'm generally pretty risk-averse i don't do that much yield farming these days um i pretty much put most of my ether into staking at this point um because i think staking is the lowest risk thing you can do with your eth right now besides holding it in cold storage of course uh but yeah i would say that like spreading out your funds across different platforms and stuff just make sure that you're doing it in such a way where you're not inheriting risks anyway because there's just like so much kind of composability going on there's so much money legos

going on i would just be very careful about that uh and i'd be and also if you're on different platforms like if you're on arbitrary instead of ethereum l1 well now you've just inherited the arbitrary risk which is as i mentioned arbitrary is 100 centralized right now but it's also a new system so something could go catastrophically wrong within it you could potentially lose your funds you know you never know so you have to be careful around these new platforms as well all right a question here from jake and stake who says uh religious daily great listening here you've said before that you expect the yield for staking eath to rise from five to six percent to over 10 maybe 20 after the merge could you elaborate on how that might happen particularly the mechanics and maybe some probability uh weighted predictions so there's two areas that uh stakers are

going to get you uh are going to get rewards from or i guess like extra yield from besides the block reward once the merge happens that's going to be all the unburned fees so say today we're burning like 70 to 80 of the fees the stakers would get 20 to 30 of the unburned fees as pure revenue basically as pure kind of like additional ap apr then on top of that you have mev so if you're part of a staking pool that's actively taking advantage of mav something like flashbots or or one of the other solutions out there then they're kind of distributing that to their to to the people staking with them then you also have that on top on top on top so that's where i get like the 10 20 number from i don't know exactly what

it's going to be i haven't run the math myself i know i think that justin drake has run the math and he probably has some spreadsheets kind of floating around somewhere but um for most users unless you are part of a staking pool or unless you're doing kind of like mav on your own and offering up you know your service your your services on your own it'll come from that unburned fear of a new that's where the extra apr will come from so i i do expect it to probably get over 10 at one point but in saying that uh the higher it is the more it gets staked i think we're going to find an equilibrium at some point and the lower the apr goes the less kind of like incentive there is for more state to come along so it's like a self-balancing act and obviously once um

i'm sorry obviously right now it's a one-way bridge because you can't uh withdraw each from the beacon chain until uh the withdrawals are enabled after the merge but once that happens we're going to have like people leaving staking joining staking we're going to really reach an equilibrium that i think maybe three to five percent will be like the base rate and then you'll have uh i guess like the additional rate which is the mav and the um the fee revenue now in saying that i wouldn't count on the mev being like a long long term thing most of the mav i think will be uh a lot of the mov that we see today especially the toxic mev will definitely be um are kind of like i guess not fixed but like made a lot better where it's just

like a lot hard it's a lot harder to extract that mev because there's a lot of smart people working on that um but that those are the two major areas where the extra kind of like apr is going to come from so hopefully that answers that question all right one here from robdog who says what type of common behavior on twitter discord or discord do you like dislike and discourage so this is an interesting question um on twitter i really really really dislike when people just like say things with such confidence and have absolutely no idea what they're talking about and you know same goes for discord but doesn't really happen that much on discord happens a lot on twitter where people will give like their opinion or give their kind of like uh you know uh uh give uh say something make a statement and they'll have

absolutely no idea what they're talking about like literally no idea and you know they haven't done any research you know that they don't um actually know what they're saying they're just repeating something that they've heard somewhere else that really irks me and it hurts me even more when people use it in a debate obviously twitter is a pretty shitty place to have a debate but when people get into a debate with with other people um and i fall into this trap sometimes where they'll just keep saying really dumb things and they're not actually having a healthy constructive debate i really hate that that's like a really big pet peeve of mine and also i really hate public shaming like what happened with um when robert lesnar put out that tweet uh we all saw that tweet about him saying oh you know return the comp or i'm gonna

dock you to the irs um the public shaming that he got for that was insane like it was crazy he obviously put that tweet out because he's um stressed and anxious about what happened right that compounds his baby and everything um and he's really stressed that that that's what happened to compound it obviously um isn't isn't a great look and things like that um and you know the public shaming that he went under for just that one tweet that obviously was down in the heat of the moment was was intense and you know even if you deleted the tweet um someone would have screenshotted it and still shamed him about it so i'm not a huge fan of that sort of stuff but in saying that i have done that in the past too like i publicly shame bitcoin maximalist a lot of the time when they say really stupid

things but i think there is kind of like a fine line i try not to do it as much these days it is it is a bit toxic but i think the the difference being that with um with what what with leishnow is that like he's actually a good actor i don't actually consider bitcoin maximus to be good actors within the ethereum ecosystem they're very bad actors because they spread misinformation they spread lies they just spread toxicity whereas robert lesterner doesn't do any of that i mean he basically kickstarted d5 summer which kickstarted this whole d5 revolution and actually you know i guess like accelerated its growth he built compound one of the most popular defy apps so i really hate when that sort of stuff happens and just general toxicity on on twitter i i really hate when people kind of like um insult other people or kind of like

be really mean to each other on twitter i know that's just kind of like humans being humans but it's just unproductive it's boring to look at it's kind of like wasteful to kind of read and i think the last thing is when people make stupid comments about uh things that people have spoken about for months and there's there's kind of solutions to but people are making the same comments obvious example being and and this happens a lot to me people being like oh the gas phase on ethereum are too high for me ethereum's dead blah blah i'm not going to use a theorem anymore i really hate those statements because i mean it just reeks to me of like this person's a noob um and this person also isn't a critical thinker because yes okay the fees are high but we have solutions to this

there's more solutions coming um you don't you know ethereum is not gonna die like that's just really stupid thing to say and i hate when people just show me these other solutions especially other chains in my replies um and call me an ethmaxy if i don't pay attention to their favorite chain of the week um so that's another kind of thing that i uh that's those that's like probably a summary of the behavior that i really hate seeing within twitter um and and on discord i think one thing i really hate is when people shield things and don't contribute to this to the discussion otherwise there's been a few of those in the daily grade discord channel actually and i've deleted these messages where i can see if they've been active or not i can search their user within the server and be okay you know

has this user said anything before i searched their name and the only thing that they've shared is a link to an nft project that they're shilling and i'm like okay well you haven't actually contributed anything to this discord i'm going to delete that message and if you do it again i'm going to ban you um so that's that kind of like is a pet peeve of mine i really hate that um because it's just blatant shilling at the end of the day so and you know some people might say oh that sense of but no i mean i don't think it's censorship at all the the you know the the daily grade discord channel isn't kind of like uh protected by the constitution of the united states i'm sorry like it's not protected speech like and i've got channel rules as well that says if you

shield things i'm going to ban you if you can repeatedly shield something so those are kind of the things that kind of irk me a bit and common behavior that i just don't like to see generally so hopefully that answers your question robdog all right another one coming in here from dom who asks are there any plans to move ens to layer two yes there is ens has been working on layer 2 for quite a while now i don't know what solution that they're going to uh kind of like go with i think they are working with on optimism i don't know what the status of that is but they're actively looking into it so i think if you just google e s layer 2 you'll be able to come across a few kind of like talking points about it there was an ether research post i

believe but i'm not sure on the exact status i haven't kept up with it myself but yeah there are plans and there's a lot of people working on it as well all right three questions here from bebe what's the closest you come can come to a safe asset in crypto btc and 8th can drop 90 usdc centralized dai can lose its peg rise early unp proven what's the best alternative if one believes things may go to in the short term uh i mean you said it right like btsc and eth can in theory they have in the past dropped 90 stable coins pretty much all of them are centralized or pseudo-centralized um dye is not decentralized because it's got usdc backing now i mean it's kind of like half decentralized maybe i guess

you could call it rye as you said early unproven um and as i described before about rye it's just like pegged to itself it's a very unproven mechanism needs to go kind of go through um kind of like testing battle testing and stuff like that um so i would actually say that if you want a safe asset that can't drop in value 90 within a year or even like 60 within a month as we saw during uh during the kind of like recent crash probably fiat like i'm i'm sorry like probably fiat in your bank account is going to be the safest kind of like asset i know that's not within crypto but i mean if you want it within crypto then a centralized stablecoin outside of crypto it would probably be fiat because uh i mean yes with fiat you can have it

confiscated and everything like that and and kind of like sense it and and all that kind of like ugly stuff that can happen and the same thing can happen with centralized stable coins but if you're looking for uh stability like maybe maybe stability is the better term than here rather than safe asset then you're gonna need to use something that's that's a stable coin right um but if you're looking for the safest asset then yeah btc and eighth like even if it drops ninety percent the safest assets to hold are the ones that come with the least amount of trust involved with it all the ones that are actually truly trustless which are btsc and eth and uh i think that's it right now really um so yeah it's kind of hard to say but i would say that like if you want the safest asset not the most

trustless asset not the most decentralized one um you would go for either usdc or you would go for fiat in a bank account i hate saying that but i guess like that's the quest that's the only answers i've got to that question right now for you um second question does tornado cache exist on any layer twos if not why and is there something similar on l2's not that i know of i think it's on side chains like x die and polygons pos chain but i don't think it's on layer twos and i don't think there's anything similar on l2s right now from my understanding i'm sure they will launch on l2s but yeah nothing right now as far as i know number three how do you keep track of all of your wallets i guess you don't want to share your personal setup understandable but anything you can

share would be great i'm thinking about if you want to take advantage of airdrops and use multiple wallets how do you keep track of everything it's easy to end up with 100 plus wallets right um zapper i i mean i'm not going to shield zapper too hard here because i'm an investor in them but zappa is how i keep track of my wallets i add them all there i have my whole dashboard there and then that's how i keep track of all of them uh the the actual wallets themselves interacting with them with my ledger and on on kind of like through metamask and stuff like that i have i have names attached to them um ledger live i'm pretty sure the app allows you to kind of like uh assign names to it for me personally i don't assign assign names within the app

i just uh write the names down on a piece of paper uh of kind of like and and write the address out and that might seem a bit insane to do that but that's kind of like how i do it to keep track of things um but generally i mean if i lose the naming and if i lose what something belong to there's a non-trained footprint there so i can actually go and look at the the address on chain i can see what actions i took on that address and i can say okay well now i remember what it was so it may be a bit hacky to do that but i think like the best one-stop kind of like solution right now is zappa because it allows you to kind of like view everything in one dashboard allows you to interact with different things based

on different addresses and stuff like that so that's how i keep track of everything um so hopefully that answers your three questions there baby all right another i think i've got just a few more left here but another one coming in from md triple eights how far off do you think we are from good options for staking eth on an l2 um so this is an interesting question because you have to like to get into staking the eighth has to go into the deposit contract which lives on l1 so even if you stake on l2 you still have to make a deposit on on kind of like l1 so what could happen was that if you want to save on costs uh to get into staking or to get into something like rocketpool there could be kind of like a i guess pooled thing on layer two where

you kind of like all put your funds into something and then those funds go across a bridge and then they go over to the deposit contract and then it's just programmatically uh assigned to your validator on there or assigned to your kind of like rocketpool node or whatever that might be one way to do it there's probably other ways to do it but i would i would think that you could still do that on layer one as well where with layer one you basically have like a trussless smart contract that pulls all the ease together and then once it once it reaches a certain number of eighth it deposits into the deposit contract and shares the load of the gas fee between everyone that was uh that was in that kind of like pool like proportional to the amount of i guess kind of like uh

uh kind of like deposits that were in there so yeah i don't think that you could do like a thing on al fully kind of like ethon l2 2 staking because there's no deposit contract there and they can't be because it has to come from the layer one chain so yeah hopefully that kind of like uh that answers your question there all right so brian peace asks when you when uh considering a future where ethereum l1 is primarily used as the security layer for rollups i have considered this this result in high gas prices on at layer 1 due to increased network demand but i wonder how the price of eighth might affect things you have mentioned uh that ether is divisible to 18 decimals um but but would that help when paying for gas even at one way a basic transfer

costing 21 000 gas would be pretty expensive if the price of eighth were in the six digit range could we lower the gas cost of transactions or would that uh would that be equivalent to increasing the block size does execution sharding address this um so yeah i mean a lot to unpack here but basically we can actually change it so eighth is divisible to more than 18 decimals so we can actually go to as much as we want essentially or as much as kind of like the hard limit is on the math uh within the kind of like code um but you're right that you know basic transfer for eighth cost 21 000 gas and that's a hard fixed limit so even at one way depending on the price of ether could get expensive but that can be changed too like it's it's a hard limit until

you hard fork to change it and it can be lowered over over time but it doesn't increase um the block size it doesn't increase like the state size but what it does is that so so the state is like and the gas limit and everything like that it's kind of like a a healthy balance and and different kind of like actions on the network require different amounts of gas because you basically want to make it more expensive for the more i guess compute comp computationally expensive stuff on ethereum to cost more and sending in the simple eat transfer is a kind of like cheap thing to do because it is a cheap thing to execute it's a cheap transaction to execute whereas handling all the smart contract logic and stuff like that's more expensive so you need to pay more of a fee so that

it's it's a you know because you're filling up more of the state now the block size can only be increased if the block block gas limit is increased so even if you changed each uh transfer to only cost 1 000 gas that wouldn't affect the block size because the gas limit hasn't been increased along with that unless maybe it and if it had well then the block size increases from there um and then you say does execution sharding address this uh [Music] the funny thing is execution sharing is still in such a deep research phase i can't give a definitive answer here but from my understanding yes it would because you would be able to do executions on the shards with the extra capacity um uh with the 64x extra capacity if there were 64 more shards because it's

basically like having 64 more 81 chains for example but i don't know when execution shine is going to come into the network i don't know if it's ever actually going to be a thing we may never need it because we're just going to do all the execution at layer 2 anyway so hopefully that answers your first first few questions there brian second question i hope you could share thoughts on the eth2x fly it's double volatility in the near term is overshadowed by my long-term bullishness on eighth i just buy and hold long-term so i don't mind volatility but doubling my long-term gains without the stress of having to manage a debt position feels almost too sweet and i wonder if i'm overlooking something so you mentioned here that you've already read a bunch of the index cops post on the fly products um they've got

a few on there that discuss this the major risk is i can't remember the exact term for it right now but it's around kind of like the volatility it's it's it's basically the risk of over time the uh the kind of like um index product getting chopped up due to the volatility and basically and uh uh you ending up in kind of like a worse position over the long term than you would have just having held eth um i'm not going to go over now because i'm not like an expert on this topic in particular but as i said there are blog posts on the index cops medium page that discuss this and i can't remember the exact term for i don't know if it's called volatility drift but it's something to do with the volatility of these things and why

over time potentially if it's not managed correctly you can end up in a worse off position and obviously uh you take on smart contract risk and and um you know obviously the thing can still be liquidated if it isn't serviced correctly as well uh so there are additional risks there but um yeah i suggest reading those blog posts uh there are older ones maybe you didn't see the older ones uh because they don't show if you go to the archive section of the medium page you'll be able to see those there but um also asking in the index call will probably get you an answer pretty quickly as well all right taking a quick break for a drink and i'll i'll continue through the questions all right i got three more left here

before checking the channel for any new questions so one here from lefi who says i would love to get your take on running an ether validator node through a service like aws i'm not in a position to house the hardware as i travel frequently and i'll continue to do so for the foreseeable future i'm aware it's not the most decentralized option maybe the best at this stage pros cons will be greatly appreciated and if you have any suggestions on where to start this uh this path that would be great also um i would say that obviously you realize that it's not a decentralized option because if you put it on aws they could cut you off at any time that they wanted to right it's a centralized company amazon controls it jeff bezos kind of like could kind of like switch off afws if you wanted to so

obviously it's not decentralized if you do that that would be the major risk another con would be maybe it becomes more too expensive maybe it becomes more expensive than just doing it on your own i don't know i haven't looked at the cost for that sort of stuff yet another con would be you are contributing to i guess like an unhealthy network because the less hosted node less aw aws nodes the better but there's an argument to be made that you're actually contributing to the health of the network because you're running a validator anyway and you maybe weren't going to do that if you couldn't do that on aws for example so there's arguments to and for and against there sorry um but the pros of course like if you're traveling a lot then you can still be a validator right you can still earn rewards you can

still put your eth to work so and as i said you're still being part of the network and validating on the network so the pros and cons i would say 50 50. uh and and really the the major con is that you could just be shut off from your validator you could uh uh kind of like uh because of that if they shut down your validator you could get slashed because if you got it no sorry not slash but if you go offline you can kind of like suffer in activity leak but you could get slashed as well if for some example the aws glitches out and does something wrong it runs two instances of your validator when it shouldn't be then what ends up happening is that you will double sign uh and then by double signing you get slashed and you get ejected from the validator set and you

don't get to access your eighth until the uh withdrawals are enabled and you're left with less ethan you are kind of um started with so that's a i guess a major risk there is you really aren't in control of what happens there um you know i guess like you are in control because you get the control panel but like i guess uh the ultimate control relies on aws's goodwill i guess uh and your second question or i guess like a follow-up thing i have considered using a service like lighter or rocket pool um but i have some concerns around that initial deposit being possibly viewed as a token swap tax a little bit event by the australian tax office any thoughts on this as well would be awesome to hear um not tax advice but uh the way i'm treating it is when you swap

eth for another version of eighth so something like uh st lido r8 rocketpool um even w aethrite wrapped eighth it's a like for like uh swap so it doesn't incur a capital gains event now as i said not tax advice consult your own accountant about this but that's how i'm treating it personally because that's how it's treated in just like on the non-crypto world if you're swapping something for a like for like it is not a capital gains uh tax event there but as i said consult your own tax professional all right a few questions here from virat i hope i said that right um so first question what are your thoughts on ethereum and its ecosystem uploading its data on storage blockchains like

filecoin r wave etc as this can help with data availability at all times which could be especially beneficial for nft zika rollups and zero knowledge proof based protocols reduce the dependency on aws um so i think i need to i guess i talked about this earlier when we talk about data availability we're not talking about jpeg data and metadata of nfts and stuff like that we're talking about the call data which is user balances like this is very different to the the other data that i just mentioned and as i mentioned before if you store that data on something else then you're relying on that something else to secure it rather than relying on ethereum to secure it so it would basically be like uh i mean like a volition for example or a

volidium or something like that it wouldn't be a true l2 like a zk roll up or an optimistic roll up but in saying that i'm very happy for file coin or ipfs or rwev to store the jpeg data or the metadata or whatever for these nfts because um uh you know they're built for this sort of thing they're purpose built to be a kind of like data storage or blockchain um not a data availability blockchain which is very different i know that can be confusing because the term data is used both times there but it's good to understand the difference between the two so hopefully that answers uh your question second question how can crypto help in solving the logistics of universal basic income i haven't looked into this myself but there are a few projects out there working on this right now if you just

search like universal basic income crypto i'm sure you can you'll you'll find a few out there i think it can help greatly because of the fact that global that crypto is global permissionless decentralized all that good stuff out there and we have tokens that we can issue and do stuff with and we have like on-chain identity that we're looking at doing as well um and doing decentralized identity and all that sorts of stuff so i would definitely uh just google it and you'll be able to find a bunch of projects out there and kind of like follow the rabbit hole down there um what other other chains that are not ethereum killers that are solving problems other than ethereum and they can also benefit from ethereum and other chains um i think you mentioned a few of them like file coin and r weave i think some of the um the bridges are

actually going to be their own kind of like chains um so that they can kind of like have their own uh states and things like that and bridging between the different chains i think that's cool the data availability chains like celestia and vale are pretty cool there's a few out there as well that are doing cool things around zk snarks like mini protocol i don't think there needs to be a whole new layout one to do this sort of stuff i think it can be done at layer 2 but still they're doing a lot of good research and a lot of good development there and testing stuff out in the wild so i can't fault them for that uh so those are the kind of main ones that i'm interested in so yeah hopefully that answers your third question and the fourth question what are the possible

changes if any would you come up with to fix bitcoin without changing its hard cap and proof of work consensus um i as i mentioned earlier i would change so to make bitcoin just like much better than what it is today i would make it so that you could validate um uh volition and validium proofs or kind of like just like layer two proofs and stark proofs on the bitcoin layer one because then bitcoin layer one could do roll ups like that would already be a massive improvement right that's what i would change about bitcoin the number one thing that i would come up with to quote unquote fix it but the thing is it depends who you talk to that doesn't fix bitcoin according to bitcoin is that just makes it worse so that's just like my view my view on that sort of stuff

and i would actually change its hard cap and proof of work consensus as well if i was to fix bitcoin but then we're just at ethereum so why am i even gonna focus on fixing bitcoin we already have a fixed bitcoin in my eyes which is ethereum but anyway um and then you go on to say i think right now we may not see any solutions to bitcoin's problems but there might be a chance that any future breakthroughs that we might not have seen coming at all might help solve this problems through the changes though the chances might be slim i think another thing that people are underestimating is quantum resistance too uh ethereum is definitely has been looking at that and kind of like trying to build quantum resistant systems i think the bitcoin is maybe aware of this but i don't know what their current

plans are for this sort of stuff it seems like a distant thing but it could come faster like quantum computers could come faster than we think which could lead to kind of existential threats for these sorts of things but i think in that scenario the bitcoiners would basically say well we need to fix this let's hard fork because it is an existential threat so yeah hopefully that answers all of your questions last one on the sheet here before i move to the channel one from a knowledge fight how can i get exposure to starkware and zktec other than just stacking eth any recommendations i mean i spoke about this on on the ama earlier on about kind of like how to get exposure to all the layer twos through air drops and stuff like that um that's how i would do it basically positioning yourself for an

airdrop for things like um stockwear zk sync um zktec i mean polygon's working on that as well as i mentioned earlier matic is a token you can buy if you want to don't buy it if you don't want to i'm not telling you to buy it or not but that's just one that's live today uh but yeah go back and listen to the kind of thing if you're kind of like watching this on youtube you can go back and listen to uh the answers that i gave around airdrops on layer 2 in general all right ama series channel gear there's a few questions in here so first question from kb house given that gas now is shutting down any other good gas trackers to recommend yes the block native gas tracker so if you just uh google block native gas estimator there is a website and a chrome extension i

don't know if it's available in other browsers but it's definitely on chrome that you can use to access um uh sorry to do the same thing that gas now did so that's one that i've been using for quite a while um and a disclosure i'm an advisor to block native but i mean that's an amazing product i'm not just shilling it because i'm an advisor it works really well i use it all the time definitely go use it um lloyd banksy you asked you just mentioned coinless which i've never heard before can you talk a little bit about how that works and differs from popular decentralized exchange offerings is it only available for the accredited investors in the us i think kb house answered you a little bit here but coinless is just like a centralized ex exchange platform that does like ideos essentially like initial dex offerings

um it's not just for accredited investors but they do bar us investors unfortunately um and in the past they've bought other jurisdictions like the immutable x sale recently on coin list barred australian investors um and there's been other kind of things going on there so it is like fully kyc you're usually given a very low limit of how much you can buy um for uh some of the sales like a thousand dollars and that you can only put in and stuff like that so uh yeah i mean i i mean there's been a few kind of sales on there but yeah they're kind of like not great they're definitely closed off to a lot of people unfortunately all right uh one question here or a couple of questions here from wim wham first one what are the main use cases for an ens these days uh i guess like

the main use case is just tying kind of like an easy to understand um i guess like uh string of characters to your address now of course when you do this and other people know the string of characters uh they can see all your on-chain activity but like for sassafeeth for example it's just easy for me to go up to someone and say hey sasel.eth uh here you go um you know that's my theorem address there's no need to tell them you know go copy paste the address i can just put it in there which makes it a lot easier to share my address around um other things like on-chain profiles and identities and stuff like that that dns team is working on they're working on the signing with ethereum stuff too there's more stuff coming but like those are the kind of use cases that i'm paying attention to

especially around decentralized identity and stuff like that too uh your second question how would you define liquidity in adapt what about across in an ecosystem how do you feel liquidity affects investors decisions i think there's a pretty like black and white thing where you can kind of like go and see the look uh the kind of like liquidity in these things and is it useful liquidity is it liquidity that's only there to earn token rewards um you know is it is how long has liquidity been in there for is it actually uh offering something to the system like in a decentralized exchange it's actually offering kind of like liquidity to the pool so people can trade in and out of them but is all the liquidity in a pool that no one actually wants to trade in and out of so are the volumes low are

they just farming rewards um and in terms of liquidity affecting investor decisions i think it really does like personally i'm not going to buy a lot of a token if i see that the liquidity is really low like i'll go and go on coin gecko and i'll look at the plus minus two percent depth if that depth is really shitty say it's like for a lot of these tokens it's like 10 or 20 000 dollars either way i'm probably not going to take a sizable position in that token because i don't know like what kind of exit liquidity is going to be there when i want to sell um and in saying that it's not just me like i mean i'm not like a active trader i'm not like a huge whale trader but there's a lot of investors out there that are they're not going to answer these these

things unless they think that they can eat the slippage and then up and then the token will outperform enough to eat the slippage on the or when they're buying in and when they sell as well so yeah tintin a respect to anthony with what i'm posting is that's just my personal preference i don't like listening to upload only it's too much fooling around i mean yeah as i said it's like a comedy kind of like casual listen it is not something that should be taken too seriously they do have some guests on uh sometimes that i like listening to like i listened to one with hazu recently um but yeah there's a lot of fooling around so that i mean that's what you get from that show at the end of the day if you want something super technical there are other podcasts out there as well um and

i think yeah i think that's it uh for for now i think someone's typing maybe i'll maybe i'll wait for them to finish typing if if they'll finish in the next few seconds otherwise i think that's going to be it for today unless anyone in the audience has a question they they wanted to uh to ask um if so you can raise your hand and i'll happy to invite you on stage if not yeah i think i think i'm going to end it there i'll just give it a few seconds and then then i'll wrap it up all right i think that's it so thank you everyone for listening in again uh this has been recorded it will be uploaded to youtube uh into about 24 hours uh and with timestamps and everything so if you

came in late you'll be able to i guess kind of like go there and listen back on everything but on that note i'll catch you all in the discord channel thanks again everyone for coming and see you later