The Daily Gwei AMA Series #4 - 26th of June, 2021

Transcript

all right abram we're gonna get started so thank you everyone for uh attending the fourth delegate ama series um this just a note this will be recorded and uploaded to youtube so if you have to drop out at any point in time that's okay uh it'll all be there time stamps for you to go watch again uh probably be uploaded tomorrow uh please make sure that you're on mute unless you're speaking uh just so there's no background noise and you can also ask questions in the ama series channel if you don't want to kind of use the the voice function here so yeah but without further ado i'm going to get into the first question from the ama series channel here from vogs so vogs asks are farms that require a four percent deposit fee to

enter a ponzi scheme uh i don't think i would use that word or that term ponzi scheme i don't think that deposit fees are a good idea generally i think that um you know a lot of scams can actually uh utilize that because of the fact that obviously you know if it's a deposit fee you put in kind of like a hundred dollars and then you hit with like a four percent fee like immediately and there's nothing you can do to get that back you're not even getting any value out of it so i do think that it's just a really bad idea to have a deposit fee depending on what it is say it's like a yield farm um you know having a four percent deposit fee is definitely not something that's very very healthy right um but in saying that uh you know

looking at yearn and how they do their fee structure i think it's a lot better they have like a 2 120 fee structure where it's a two percent management fee so that's on the total um assets under management for that strategy so if the strategy has like 10 million on the management then uh that two percent is on the 10 million and then they have a 20 performance fee so say the euro strategy is earning you 10 yield well um you know yearns gonna take 20 of that as a performance strategy from basically all of the profits made by by that strategy so i think that's a better way that's the way traditional finance does it i think it's tried and tested and true um but yeah deposit fees generally i i don't think are very good uh i think that they harm users because of the fact

that like you'll put money in uh and then you know you won't basically have uh have anything for it because you've already paid a fee for it so it's kind of like well you know that's a bit silly and then to get that four percent back i mean you know if it's a four percent fee and you're earning 10 i mean that's almost half of the yield just going to a deposit fee before you even earned anything so uh yeah i think that a lot of them probably are ponzi's but i wouldn't say that the uh the fact that there's a deposit fee makes it a ponzi so to speak so hopefully that answers that question and there's a two more actually from vlogs here that i'll just get through before i take one from the audience so he asks or he or she uh how do you

think arbitrary's adoption will go when they have no token incentives which were a big part of polygon's growth well things like yearning the uni swap make up for the lack of arbitrary incentives so i wouldn't assume that they wouldn't have uh incentives um i've said it before and i'll say it again i think every single project in crypto is going to have a token you know sooner rather or sooner or later um you know maybe they don't have a token until next year or you know maybe they have a token like next month who knows right but i think that that will come uh i think that uh some of these other projects like as vogs mention here urinal uni swap they're gonna maybe do kind of liquidity mining incentives to boost up their liquidity there but at the same time i i don't necessarily think that these

scalability solutions are growing just because of token incentives i actually think that there's a very big uh just built-in incentive for people to go to these solutions because they're kind of priced out of the ethereum main chain you know and like even at the current grade prices at 10 it's still pretty expensive for for most users it's still not like what layer twos are going to give you which is like sub cent transaction fees a lot of the time or even even if it's only a couple cents to do a swap or something like that that's much much cheaper than uh than the ethereum net still so i think that just a natural incentive for people to move over uh to get those scaling benefits is there but i fully expect projects too to have token incentives to to bootstrap liquidity uh there's no doubt in my mind

that that's gonna happen uh i just i'm not sure exactly how it's gonna happen i'm not sure kind of what the programs will look like i think you know if the market stays bearish then uh there's probably gonna be very conservative liquidity mining programs because if you do kind of like too much then you'll just end up dumping your own token price and you know there's all kind of negative externalities that come from that so i think that uh yeah and generally on on this note i just think that like it's funny when you look at how small the industry is and you kind of think to yourself well you know have we already and people i don't know for some reason people like to think that we've already tapped out the growth just because we used liquidity mining incentives but really it's just naturally over time

more and more people are going to come into this ecosystem and more and more users are going to be onboarded regardless of token incentives or not i think that that's one way to a really nice way to bootstrap liquidity but generally long term that's not sustainable so i think that users will come just because the apps are giving them something uh that they haven't had in in the past here so yeah hopefully they answer that question uh someone's not on mute here um maybe i'll just mute them on my end um yeah so uh the last question was if every usdc is backed by one dollar how does the company behind usdc make any profit well i mean it's i don't know exactly like i don't obviously they're not going to tell people exactly how they make money but generally how this

works is that they'll just take the us dollars that is in kind of like their bank account and they'll earn a yield on it somewhere or they do something with those us dollars to and a return on it um and that's generally how it is it's basically like get as many deposits as you can you know usdc has over 25 billion dollar market cap so they have over 25 billion uh us dollars sitting in a bank account or sitting somewhere that they can do whatever they want with um and yeah okay obviously they want to keep it in dollars uh or at least the majority in dollars because uh that's backing up usdc so maybe they go and earn a yield with that somewhere else so that's kind of like how they make a profit i'm not i mean i'm sure they're doing a lot of

other sophisticated things that i'm not even kind of like thinking of right now but they haven't revealed publicly because obviously they're a biz they're a private business they're not going to reveal their secrets um but you know the comp the funny thing is is that the the the company that's issuing usdc circle is also building other products around that as well they i think last week they released the d5 api um that they're going to be kind of like letting default projects integrate into they're doing a bunch of different things around um not just their stablecoin but like just apps in general and coinbase is involved so there's a lot of things going on there generally it's just like get those deposits in get that money in and then kind of like worry about monetization later but i i think the the most obvious thing is that they're just earning a

yield on those us dollars sitting in a bank account because it's billions and billions of dollars right it's a lot of money sitting there not doing much and maybe i guess some people would ask oh why wouldn't they just issue usdc themselves and go yield farm with it it's like well i mean that's riskier for one right like yield farming in d5 is very different than generating a yield in a traditional system uh in the traditional system they can get like fdic insurance on those deposits uh and be fully insured for any kind of loss in that system whereas in d5 you can get insurance but i doubt nexus mutual or some other kind of insurance provider is going to cover 25 billion dollars so yeah um we're not we're not there yet on that front so i guess that's why that they would uh they would do that

uh so hopefully that answers those questions i'll take one from the audience well we have a lot of people here today thank you all for joining but yeah i'll take one from the audience if anyone has a question otherwise i have a lot to get through in this sheet sheet here just feel free to speak up if you've got a question no need to ask permission or anything and you give you can ask it in the ama series channel as well if you'd like you don't have to ask it um you know on voice that's all good i'll move on to the next question i have noted down here from amol who says in order to rely less on centralized authorities what do you think are different uh the different ways in which

stable coins can be pegged to for example gold so this is the the funny thing right because you can have like a hard peg stable coin and then you can have like a synthetic stable coin that is that is kind of soft peg and the what i mean by this is like usdc is a hard peg stable coin because you have us dollars in a bank account backing it up and it's one for one and all that good stuff whereas die is a soft peg stay uh stop soft pegged a stable coin um because it's it's it's it's synthetically minted through the maker system and die obviously because of that as a consequence dial can lose its peg from time to time not so much these days because half of dye is actually backed by usdc which is a whole other thing but i won't

get into that so um if we're talking about making a stable coin that relies on something less centralized it's like something like gold well that's not really kind of possible right because with gold to in order to peg to gold you would need a an oracle you would need some kind of like price feed to do so um and if you were to back you know say you could create like a a make a dow like system where you collateralize a stable coin with like a gold token or whatever that that token is just a representation of gold it is not it's still going to be like either centralized or have some kind of like trade-offs there as well or if you have an oracle that's just providing you a a kind of like price feed for gold well that's a central point of failure there

so i think the only way to create a truly decentralized stable coin is to just back it with eth that is really the only way you can do it um and i i spoke about this on the last ama uh that i spoke about rye which is backed by ethan it's pegged to itself um you know single collateral die used to just be backed by eighth but the thing is the maker system had some central points um of failure i also had oracles and things like that so generally it's just very very hard to do something like this and if you're pegging to real-world assets well there's no way you can do that in a decentralized way because you're either pegging to a price feed or you're using some kind of like a tokenized representation of the asset which is is going to be you know have a centralized

issuer or have like some way that someone is is kind of like i'm tracking it in a centralized way so yeah hopefully that answers that question um anyone from the audience got one uh feel free to ask it and if you're not on mute please please go on mute if you're not talking i hear a little bit of background noise cool all right on to the next question from lucas hey uh lucas says how do the index tokens the d5 pulse index uh etc from index coupe work in detail how is the rebalancing done so the d5 pulse index works by it's

basically a collateralized token so the dpi is an erc20 token that's collateralized by its uh its constituent assets so those are all the d5 tokens that make up the index now the last time i checked there were over i mean there was over 10 i think maybe even 15 assets in there or something like that i haven't checked it lately um but you know those assets are what's backing up uh the the dpi now the way the dpi kind of works is that you have the net asset value which is the value of all the underlying tokens uh uh kind of like put together like not not the total of them but like the the share because look at each token has like a share of the index so all of that kind of like put together makes the dpi price and then you have

the free floating market price and that's basically you know the token can trade on uni swap and can trade on like any amm or whatever and that price can get ahead of the net asset value or can go below net asset value so what ends up happening is that that it gets it gets arbitraged away so there's arbitrage bots set up that say the dpi goes uh you know up to 200 or whatever um and you know the net asset value is like 190. well that means that people are incentivized to mint new dpi by bringing all the constituent assets to the smart contracts and saying okay i want to create fresh dpi and then they'll go sell that fresh dpi that they've created at 190 for 200 on you know an amm and kind of like uh get that profit of 10 and that

works both ways so that's how the value is kept in check there but that's not the rebalancing that's just um you know keeping the value in check with with the net asset value which is referred to as nav so and then you know lucas asked how is the rebalancing done the rebalancing of the dpi is handled by the default pulse which is the methodology for this index so basically they'll rebalance it once a month and they'll decide uh you know on the max weight so this i think 25 percent is the max weight of any asset so if an asset has gotten ahead and gone to like 30 or uh or something because it went up a lot in price well then they kind of rebalance out of that and bring it back down to 25 percent uh and then you know they might add other assets in each

month and they do a rebalance or they might remove assets from the index i don't think they've removed anything yet except orga rep i believe they removed maybe they removed something else but uh or maybe yeah i'm not exactly sure i haven't kept up with it too closely but yeah they have the power to remove or add assets there so um and the rebalancing the way it's technically done is that they do what's called a t-wop bot or a time-weighted average price bot which basically buys or at least rebalances the index over time so it doesn't have like a massive effect on the market because the d5 pulse in this is quite big so you can't just market you know sell all the tokens or market buy the tokens you need you have to do it over time as not to disturb the price too

much and to get the best price possible for the index so that's how the kind of rebalancing works uh uh in detail there there's plenty more information about this on the index co-ops medium page i believe uh or you can just join their discord channel and ask in there as well there are other products like the um the flexible leverage index or the fly um which is a bit more complex than this that's also managed by default pulse uh and and there's a blog post about that uh called uh volatility drift with the fly or something like that on the index co-op medium so you can go check that out as well for an explanation about how that all works too uh so yeah hopefully that answers your question lucas the next question i'll take from the audience otherwise i'm happy to move through my list here

cool i got one from avatar here which is quite long uh but i'm just gonna go to the meat of it so uh they're asking about not something ethereum base they're asking about anchor protocol um which is based in i think it's in the terra ecosystem uh and they're able to provide a 20 uh return on your stable coins uh or on ust which is their terra stable coin there now i'm not an expert on the terra ecosystem uh i definitely might get something wrong when i answer this but as far as i know the way anchor protocol works and the way it generates the yield is that it basically takes the yield from all the different staking protocols in in like crypto you know all the different kind of blockchains that have

proof of stake and pay out a staking kind of yield and they kind of like average that out and pay out that yield in stable coins in their ust stablecoin i believe uh if you're basically in this yield farm that's why i believe it works so i don't think it's like anything uh scammy or kind of like dodgy or whatever it definitely you know is based on sound reasoning um but i don't know enough about the terror ecosystem to comment further maybe someone in the audience does but yeah that's i mean terry ecosystem i do find interesting i just haven't dived too deep into it um and ust is their native stable coin i believe that is backed up by luna i think which is the native token of of the terror ecosystem so um yeah hopefully that answers your question at the time sorry i couldn't go

any any in depth there i just don't have enough knowledge about the terra ecosystem at this point in time i'll take one from the audience otherwise i'll keep moving through the list cool uh so an interesting question from crypto henry here who says uh that they read about taproot which is a bitcoin kind of like upgrade that went live a couple weeks ago um as part of a soft fork uh and it promises to bring three enhancements to btc which is improved privacy reduce data that each transaction needs to have and allow smart contract a functionality uh and currently wants to know um if an improvement like this to btc uh is uh if i had heard of this and like what this

basically means well i've yes i've heard of this i i kind of look looked into it and i was like okay well what is this like is it actually you know everything that people are kind of like saying it is and every and stuff like that and from what i can tell it's a very basic upgrade but it's big in bitcoin land like if if you like look at bitcoin in a vacuum this upgrade is pretty big because it does bring improved privacy in some specific scenarios um reduces data for transactions and i wouldn't call it smart contract functionality i would call it call it like additional functionality uh than what bitcoin can do now but very in a very limited way so i guess the way the easy way to think about this is that bitcoin doesn't have a virtual machine whereas ethereum does

so ethereum has the evm the ethereum virtual machine and that's how it does the computation on layer one in order to you know process smart contracts and all things like that bitcoin doesn't have that at layer one it can have that at layer two or it can have that and you know side chains or whatever but side chains aren't bitcoin technically so even that's a stretch but at layer 2 those those virtual machines or any kind of smart contracting is still going to be very limited because bitcoin's layer 1 is inherently limited so this upgrade as far as i know it doesn't add like too much on that front i don't think it as a it um it's basically a huge upgrade like i mean it you know if it's funny if this if this upgrade was in ethereum land this would be considered something

really small like some small eip that was part of like a much larger upgrade so yeah that's that's what i understand about it um but still it's it's funny i think this is the biggest upgrade since segwit which was done in late 2017 for bitcoin so it's just funny to see the pace of developments like what three and a half years takes them to do an upgrade and they call it a soft fork and whatever but anyway uh i i just i don't know it just didn't seem interesting enough for me to kind of like dive deeper into but yeah hopefully that kind of uh i guess it clears that up and answers that for you there i'll take one from the audience otherwise happy to move through my list so another long question here from

avatar actually two more from avatar here i'll go through the first one who says uh using broad strokes if one says that bitcoin is a gen 1 blockchain eth is a gen 2 blockchain and algorand polkadot solana at gen 3. um are there inherent architectural shortcomings tech debt restricted ability to evolve because of backward compatibility that limits ethereum's ability to respond to tomorrow's need in the marketplace um so i'll answer this part first and then i'll go through the rest of it so i would push back on people calling these things gen 1 gen 2 gen 3 blockchains i i don't know if that really makes a lot of sense at the end of the day i think that it's funny because when you look at bitcoin versus ethereum they're very different things like you

bitcoin doesn't do what ethereum does ethereum you know doesn't do what bitcoin does for bitcoin like bitcoiners don't want to basically hold each instead of btc right like the the maximalist for example they want to hold btc because they believe it's the best asset in crypto they believe that it's like you know story value kind of like digital gold whatever um they're not going to kind of like i guess hold uh uh instead right so there's kind of like these different use cases for different kinds of people generally so i don't know if i'd use the generation kind of terminology here and i also think that a lot of these other layer one chains are very very far behind ethereum maybe you know maybe their tech is like quote unquote better right i would it's it's funny when you talk about tech you know

you talk to 10 different people they're not going to tell they're going to tell you that their tech is the best so even from that perspective i don't know i i don't think it's the right framing but in terms of like shortcomings for ethereum and tech debt and all those sorts of things 100 like there's no hiding it ethereum's kind of uh i guess like ethereum as it exists today eth1 is is you know you can call it old technology because it was basically um created back in like 2014 2015 uh the eth1 chain um and it hasn't really the virtual machine like the evm hasn't really changed much since then yes there's been tweaks and there's been upgrades but it hasn't been fundamentally rewritten um and evm has a lot of shortcomings for sure and so does the ethereum blockchain generally but in the face of all of that and there is a

lot of tech debt too because there's a lot of um history of ethereum but um in in the face of all of that uh ethereum's still chugging along like people are still using ethereum the evm is still the most used uh it's piece of technology and crypto regardless if it's on ethereum or a sidechain or whatever other chain like you know polygon this pos chain uses evm bsc uses that phantom uses it hobbies eco chain uses it there's so many out there and it really just comes down to network effects so when when thinking about technology the best technology isn't the one that's always going to win uh it's just going to be the one that gets the adoption the fastest right and builds up the network effects and this has been huge in the web 2 world where a lot of people will basically say well javascript is

like really crappy and we have so many better languages why do people still use javascript and well it's because people got that sorry javascript achieved a network effect with enough people and developers that it's a switching costs from going from javascript to something else is really high and if you were to change it would take a long time now these days i'm sure there's a lot of other languages out there that are popular but i think javascript is still very far ahead of everything else in terms of um you know what people use to kind of like build responsive websites with but there's like frameworks built on built on javascript as well that people use and it's still javascript under the hood right so when you kind of look at all that i think generally uh the the kind of like uh better tech doesn't always win it doesn't win most

of the time actually um and that i i don't think that's got that that's like a big deal i think that's actually fine because you if you kind of think about it if the best tech if we needed the best tech to win that we wouldn't ever build anything because tech is always evolving and it's not just on the hardware side but the software side as well where tech is always getting better and if you wait for like the best thing before you actually start adopting anything in building network network effects around something well then you just keep kind of like falling behind and you know without picking on any particular project i do want to say that this is exactly what cardano has fallen into in my opinion now let's just assume that all the technology that the cardinal ecosystem is is building is like

revolutionary it's going to like fix everything it's going to be amazing and you know everyone agrees that it's it's amazing well where is it right they haven't deployed anything yet meanwhile the ethereum ecosystem has been uh sorry there's a bit of spam in there in the channel here from someone uh i'm gonna ban this person from the channel that's weird um anyway uh what was i saying yeah so on on the kind of like the tech side of things like i i with with cardano i think that like they've just taken too long to ship anything and and meanwhile the ethereum ecosystem and other ecosystems have just like gone way way way further ahead um and i don't think like them or any other kind of like most of these other projects have really any chance of catching up with those kind of network effects um

and then you know avatar talks about backward compel compatibility well the good thing is is that uh the ethereum one chain is is completely backward compatible like when the merge happens and when we go into eth2 um the eth1 chain is going to exist in in perpetuity uh and it might you know there might be fundamental changes to it as time goes on uh such as becoming a stateless chain and things like that but generally it's going to be uh very uh very similar to what it is today and it's still going to be the avm and things like that there might be other virtual machines that people kind of build out on layer 2 and stuff like that but i i think that on on kind of like layer 1 it's just going to be evm there so um yeah and then like avatar goes on

to say um you know how does the theorem i guess like respond to market demands and and what weaknesses the other in ethereum i think i kind of like i guess answered that um uh and yeah there's a bunch of stuff here i'm just fishing through it like it's a big kind of paragraph here um if one went there okay and this one here if one were to start with a clean sheet today how close would the end result be to solidity well it probably wouldn't be solidity right that's a little for those who don't know is the native programming language of the ethereum virtual machine but you don't have to code in solidity there's other languages too um but if we started clean today well you can already see this with all the other ecosystems like a lot of them are trying to get off solidity or do

things like in rust like i know salina ecosystem is trying to do rust cardano is trying to do haskell but like these things don't have the network effects that solidity has and solidity is brand new language from 2014 or 15. and people say it was based on javascript but i i believe it i don't believe it was um so you know generally i just don't think that it's it's worth it to kind of i guess compete with solidity you can you can build other things right you can build other languages and adopt other languages but solidity is here to stay it's not going anywhere it's got a massive network effect and people are learning about it every day because it's just what everyone knows and there's been so much not just network effect there's so much tooling developer tooling you know um guides and developer documentation built

around this that it'd be very very hard to to kind of like go off this and basically switch to something else and other things will get adopted over time but i think solidity is here to stay i think the evm is here to stay and i think basically you know all the things that people consider shortcomings of ethereum are here to stay and we'll just navigate through them as an ecosystem uh there's another thing from avatar here i'll quickly go into this then i'll take a question from the audience if anyone has one um so avatar says the other area of interest and concern i have is around d5 given how rapidly things can innovate wide-ranging and poorly understood token economics human psychology what should a smart investor do what is the risk-based spectrum of investments in crypto look like um it's very hard very very hard to

invest in in d5 i believe and i think i've spoken about this maybe on the refuel before the reason it's so hard is because a lot of these protocols have liquidity mining programs right where they basically issue like a very small amount of their tokens when they go live as a product maybe they have like five or ten percent of their tokens on market then they're paying out the rest of these tokens to some liquidity mining programs which a lot of the times result in like farm and dumps and if you look at basically the charts of all these tokens they look very similar where there's just mercenary farmers come in they get the token they dump it they don't even care they don't care about the long-term value whatever so um from that uh kind of like lens it's very very hard to invest in a lot of those um but

at the same time it you know d5 is becoming so competitive now and there are so many products out there that there's so much competition where investing in any kind of 1d5 app is incredibly risky because you don't know which ones are going to win like and you know the ones that have been around for a while are already in the billions of dollars of market cap so it depends how much risk you want to take you know if you want to invest in the winners like not the maybe not the winners so far like these things can still fail mind you but like the biggest default apps so far think about them all maker ave compound uni whatever like most of these tokens are already worth billions of dollars so you know what are you looking for when you invest in this like do you just want like um

you know low risk steady returns over the long term well you know maybe they will give you that do you want like high risk high return well you're going to have to venture into the smaller market cap things and the and the reason why they have like a smaller market cap is because of that incredible risk i tied to them there there's no kind of like guarantee that these protocols are going to succeed um and and you have to kind of look at the way their tokens are distributed you know is most are most of the tokens still locked up in investor locking or team locking are they being paid out in liquidity mining programs uh you know how how you know what's the competition for this uh this kind of like um this new product you know is it an amm well how's it going to compete with uni swap

and sushi swap and you know uh i guess curve to a to a lesser extent there how's it just going to compete in that arena there's plenty of amms now so that's why i guess like it's just been very hard to invest in d5 generally and it's also very hard to outperform eth because i don't benchmark every anything against usd except 8 obviously but i benchmark everything else against e so if i'm not outperforming eth then there's really no uh reason for me to hold things and not only do i have to outperform eth i have to outperform eth by a lot because there's taxes that i have to consider as well because my taxes are denominated in australian dollars they're not denominated in eighth but i also have to consider the additional risk that i'm taking on for me personally i think eighth is much lower

much much lower risk than any anything in d5 um and and and and i feel much more comfortable holding eighth over the long term uh but also like if i don't get like much more than a i mean i would say i would actually depending on on on kind of like the d5 thing that i'm investing in i would want like a 5x against eth to to make it kind of worth the amount of risk that i'm taking on and and you know that that is actually really really hard to do because to get like i guess a 5x against eight over the long term you would need to invest in these things very early on and you would need to pick a winner very early on um so and i think there's a lot of recency bias in this area too where people say oh if only i had invested in

rve when it was like a 50 million dollar cap in whatever it was 2019 or early 2020. you know i would i would have so much money now i would i would have so many so much returns now i would have beaten eighth blah blah well i mean you'll you know that's recency and hindsight bias right there because you know you had no idea that avid was going to succeed the way it did i mean you know it's funny because back in 2019 arbi wasn't even live yet it was still eth land they hadn't even released the v1 of their product yet they came out of january 2020. you were basically taking a massive risk by buying into it and those who did you know did very well of course um so yeah that's kind of like how i think about it and why i think a

lot of people in this industry get absolutely obliterated when they try to invest in things because they you know i guess like there's a lot of narratives that prevailed like defy season and things like that and people assume oh if it's defy season everything's going to go up it's like okay maybe it goes up in a little bit of a bull mania but are you going to sell the top are you right are you going to buy the bottom before it goes up or are you going to buy into a mania are you going to out perform eighth because 8th usually goes up at that time as well are you going to outperform eat by enough to justify the additional risk you're taking on so there's all that to consider and it's the same with like traditional investing i mean i don't think any of this is

really fundamentally different if you're investing in like you know newer companies on on on the stock exchange or like penny stocks or whatever they're much riskier than the more traditional ones like if you if you invest in apple it's obviously a lot safer than investing in some brand new kind of like company that's just hit the stock exchange they're trying to do something really wacky and they wanted to raise money by going public uh you know the risk is much much much much larger there so i mean i could talk about this for a long time but i won't get bogged down on this question yeah but hopefully that answers answers that question for you uh avatar and he also kind of asks here um kind of like how long of a runway do projects have generally um you know in this kind of ecosystem and i actually wrote about

this in the delaware newsletter yesterday where i said that a lot of these projects have a massive runway now they either sold their token and diversified their treasury as a dow into stable coins or something like that or they raised money recently a lot of them raised seed rounds in series a rounds recently um you might have seen some of the mega raisers from dydx who raised like 75 million um uh uh sorry starkware raised 75 million dydx rays 65 million um a16z just announced their 2.2 billion fund which is you know that's 2.2 billion dollars ready to go ready to be deployed so i think in general a lot of the existing projects have um you know a decent runway and a lot of new projects are going to keep getting funded so i'm that's that's actually one thing that's very very different this time around as

opposed to 2018 and 2019 because you know say we go into a longer drawn out bearish kind of period or market here in 2018 and 2019 a lot of teams ran out of money a lot of funds blew up or or kind of like ran out of money and had to close up shop and it really felt like especially in 2019 and especially in ethereum a lot of people felt like you know it was all over right this was going nowhere we better just pack up but the true believers that stuck around obviously did very well but this time around we have a lot of um funds that have raised money recently that are roaring you know roaring to deploy it and they're going to deploy it over the coming months so i think that in terms of runway projects and teams have a lot of it and you know

if they kind of hit a snag they'll probably be able to raise money even if they're like early stage even if they don't have like anything that resembles kind of product market fit yet i think that this sector is still viewed as like such high growth that they're not gonna have an issue kind of raising money from from one of these funds because there's not just a 16z there's like so many other funds that raised kind of money recently and i would say there's many billions like probably even up to 10 billion dollars or more that you know is ready to go ready to be deployed in this ecosystem so hopefully that answers your questions there avatar i'll take one from the audience if anyone has one otherwise i'll keep moving through the sheet awesome all right i'll take this one

from mark on the sheet here who says if ethereum or other um others become the main narrative of crypto and topple bitcoin dominance could this result in bitcoin protocol governance becoming more flexible in adopting changes and effectively altering the uh their thesis in hopes of proliferation of use if so what do you expect would follow um so this was something that hazu actually has been kind of like pushing for a while where he says that he thinks that the flippening if it was to ever happen if 8th was to ever flip bitcoin in market cap would actually be bullish for bitcoin because it would make the bitcoin community more open to changes and and have to move faster because they have realized they've actually got competition now which is weird to say because you you

might be thinking well haven't they realized that by at this point that they have competition uh if you speak to some bitcoin maximalist they just deny it outright they deny ethereum's growth they deny ethereum's kind of dominance and and it closing the gap with bitcoin over time which is whatever right so people are basically have this theory that okay well if ethereum includes bitcoin it's very hard to deny it then so what's going to happen then are these people going to sorry is the bitcoin community going to be all more open to changes are they going to basically come together and have like a you know coming to coming to jesus moment and say oh wow we actually have to innovate now we actually have to change things i'm on the fence about what would happen here i don't think anyone truly knows but i actually don't think that that

would happen i i think that there are the the core bitcoin community is so kind of like i guess staunch in their ways of like minimal changes at the base layer not get i guess like doing anything radical uh and not kind of like i guess not maybe not innovating is the wrong long term here but not like making those massive changes um and i actually think that's fine i think that's what bitcoin is and what it should be i don't think it should try to be anything else for just for the sake of it uh but maybe they do move faster on those more conservative upgrades as i said before tap roots took what three and a half years to come in since the last upgrade so maybe all these other upgrades that they have coming like snore and there's a few others out there would come faster

because they would you know there'd be a fire lit under their ass just like in the ethereum ecosystem there was a bit of a fire lit under ourselves to get the layer two scaling out there when we saw other kind of chains like bsc taking market share away uh from ethereum so you know i could see that happening but it's it's you know it the funny thing is is that the longer that ethereum doesn't flip bitcoin and the longer that um you know bitcoin go at bitcoin is kind of feel like they have no real competition um the the more entrenched they become in their views and in their ways and it just becomes much much harder for them to kind of change that over time and you know even taproot was like it might not have seemed like it but there was some controversy among you know

large parts of the community over taproot and how they want to activate it and and people saying well you know soft fork is just you know a stupid term because it's basically a hard fork and uh it's basically coercive because if what if we don't want taproo what you know what if we what um what want to kind of like fork off well you know because it's not a hard fork you'd have to like fork off and make your own chain and i don't know there's all these other kind of like politics around it so yeah it'd be interesting to see if they actually do respond positively to to that um so yeah hopefully that answers your question mark i i don't think as i mean as i said i don't think anyone has a definitive answer at this point in time i think we're all just kind of like

guessing and assuming um but from what i've seen of the of the main bitcoin community they're pretty entrenched in their views they don't really want to change and i actually think that's good for bitcoin because bitcoin needs that to be what bitcoin wants to be i don't think bitcoin should be flexible um i don't think bitcoin should change very often because then i don't think it actually represents what bitcoin has wanted to represent i think it just represents something closer to ethereum which a lot of bitcoiners think is you know useless and they don't like it or whatever and they think it's the wrong approach to things so yeah hopefully that answers your question there um i think that was it from from mark uh he also says would the bitcoin brand network effects be strong enough to successfully pull this off or would violation of core founding principles of

bitcoin undermine any attempt to do so i think it would i think it would lead to another fork war if i'm being honest if there was like a massive split in the community where one of them's like well we need one part is like okay we need to innovate faster now we have like real competition you know this is really bad bitcoin's not number one anymore and then there's the other side of the community who's like who cares if bitcoin's not number one market cap doesn't matter we're building something for like the long term and you know this is just temporary whatever so i can actually see a schism kind of like uh getting uh created there between two parts of the community sort of like what happened with bitcoin and bitcoin cash so yeah we'll have to see what happens over the coming years i don't think we're going

to have like any kind of evidence or kind of answers to this for a while but still something to think about for sure um but yeah before i move on to the next question here anyone from the audience feel free to chime in and or you can kind of post your question in the ama series channel as well if you'd like cool i'll move on to the next question from andreas who says uh so this is about i guess like liquidity provider pairs and i'll try and make sure i get this right um so say you have an eth die liquidity provider pair the value of the eighth increases and the third part is arbitrage the value out of the pair and you end up

with for example and then it gives an example of like a ratio but then the value of the eighth crashes and you have uh this ratio and then the value of eighth returns to the value that you started liquidity providing at you pull out your pair presumably having paid a protocol fee and earned some lp tokens where has all the value that has been out of the pool come from it seems like alchemy money being created out of thin air so there's a lot of debates that i've seen over time on this on twitter and this is the concept i believe of toxic flow and if you google that you'll probably be able to find more info that i can give you but basically it describes the kind of like over time how uh the fact that there's this arbitrage going on on these amms it leads to toxic

kind of price movements and toxic kind of returns for liquidity providers where they actually kind of bleed value over time now i don't think there was ever like a definitive thing given here or a definitive answer given here that everyone kind of agreed upon but just to answer the core questions like where is this money coming from to do the arbitrage well it comes from the same place that it comes from in centralized exchanges just like market makers having these uh kind of like dollars or or tokens to do this arbitrage and you know if you ask that it's always funny whenever someone asks this question about like where is this money coming from well if you really want to go like to the i guess top of the the pyramid if you want to call it that of where the money is coming from well it's coming

from the federal reserve or like federal banks or like you know the money printer at the end of the day all the money that's coming in to i guess like society in general is coming from the money printer because it gets kind of pushed into commercial banks and then you know it goes out from there and then you know that's why we have inflation and things like that right so that's kind of like how how that works um you know if we want to go to the highest level and and the money isn't being created out of thin air because what ends up happening is that if you're earning fees as a liquidity provider and you know you come and you basically uh add liquidity uh when ether is like 500 is right set to the eighth die pair and then you pull liquidity uh

after say a few months and it's gone back to 500 you have all these trading fees that you've earned so you actually you know earned a nice return on that without suffering any impermanent loss well that trading those trading fees have come from the up the market makers and the people who just want to trade that pair basically coming in with their own funds and and paying those fees and where did their own funds come from well as i said the same place that all the money in the world comes from it's like the central bank's printing it uh and and you know you have this kind of thing over time where uh hard assets against uh fiat currencies go up because of the fact that they're not uh inflating at you know the same rate as a fiat currency is or they're not inflating at all you know uh you

know and then they get their proper scarce assets and things like that and they're also not like pegged to and supposed to be stable as well so they're not you know a currency of a uh sorry they're not a they're not made to be a currency they're made to be a kind of capital asset so hopefully that kind of answers just that part of the question if you want to learn more about like arbitrages and how uh sorry about amms and and market making and arbitrages and toxic flow in general there's plenty of literature out there you just have to kind of google for it um and there's plenty of literature out there based on crypto too because there's a lot of really interesting stuff happening in the amm world and a lot of debates around that as well but yeah anyone from the audience

otherwise i'll just keep moving through the list all right one from patrick here who says what do you think will happen to the d5 ecosystem if we go into a bear market for example the demand for leverage will drop so the demand for getting a loan will drop so the yields will drop so the usage of the default ecosystem will drop so the default ecosystem will slow down so the need for the ethereum network will drop so ethereum will lose its biggest use case and so on um so it's already happened right like the that wouldn't even have to be in like a quote-unquote bear market for this to happen the market has cooled down considerably yields have dropped considerably because the demand for leverage has dropped

which means that demand for borrowing stable coins has dropped and the ethereum network uses had dropped because i mean we can see the gas fees are at you know 10 20 grey or whatever which is much lower than they were just a couple months ago so uh i guess like what i think will happen is like it depends on what you're asking there do i think that this is like a death knell for i guess like ethereum no do i think that this is short-term bearish for maybe token prices and eth i mean yes we've already seen that kind of play out i guess because there's like less less demand uh for you know to use these apps there's generally less demand to buy tokens and the they're kind of like a bearish trend so that's kind of what's happening but the way i look at it is you look at

looking at the transient stuff like the short-term stuff is not a great way to measure growth and measure the ethereum networks kind of like usage i look at it as like a long term thing so if you look even just over the last years go and look at d5 pulse go look at doing analytics and there's a bunch of charts on there go look at all the metrics i mean i've done this in the dail the data pump videos that i do on the channel uh on the youtube channel uh where i analyze kind of like the longer term things here if you if you kind of look at that defy is still up massively from where it was a year ago absolutely massively a year ago in may actually a bit over a year ago in may of 2020 uh uni swap i believe was only doing

like 10 or 20 million dollars of 24 hour volume today it's still doing i think still like almost a billion last time i checked or maybe over 500 million or something like that anything between that which is still up massively from what it was a year ago uh and all these other protocols are still up huge i mean rv is still at like over a 10 billion dollar um tvl i believe that might just be on ethereum only they're on polygon and stuff like that too but you know that's still there so generally yes you know usage is going to drop when uh when the market's quiet because a lot of this is based on speculation and what's happening you know in the day-to-day kind of stuff with the market but the long-term trend is still intact so and and this is i've said this on the refill

before where i like that the ethereum ecosystem doesn't build for any specific market it doesn't build for a bull or bear market it just builds right over time no matter what the market's doing we just build uh and you know i actually think it's bearish when projects target specific times in the market to do things for example a lot of projects try to time their token release when the market's hot because obviously they want a really great token price and they really you know they obviously want to um you know get speculation around it so they can get a high valuation the perfect example of this is dfinity or the internet computer whatever they're calling it these days they launched in well i think it was last month or a few weeks ago whatever when people were still kind of feeling a little bit bullish and you know they launched then

and then since then their token price has gotten obliterated because it started very very very high i think it started at like a 200 billion dollar fully diluted market cap or something like that it's come down to like a 12 billion fully diluted market cap now but generally you know targeting these kind of things is just not the great a great approach to it because i believe now that dfinity's you know community and anyone who bought tokens is absolutely like just obliterated right like i i strongly believe that a good community comes in over time during like the quieter periods of time they're able to buy tokens cheaply and kind of like uh get exposure to that upside but when a project like that does that and kind of like destroys their early community it just becomes very bearish so from that

perspective i just look back at what ethereum did what all the top ethereum apps did and when they were deployed uni swap was deployed in the heart of the bear market maker was deployed in december of 2017 and back then no one had any idea what the hell maker was right we were still obsessing about icos in 2017 um even it's even in december um and you know it had it grew through the bear market and then you look at everything pretty much like grew through the bear market all the top d5 apps i think yearn and uh is one of the ones that was born during the bull market that's up there uh you know if you look at the d5 pulse list but a lot of the top apps were in the bear market um now i expect the same thing to happen

uh you know going going forward if we do go into a longer-term bear market i expect a lot more teams to kind of like deploy things and build things through and the usage of these protocols may be very low um for for a time but then if they're actually good products and they've actually got product market fit that will come to light as the market heats up again so generally i think it's it's not kind of like useful to look at the day-to-day or month-to-month movements of things on ethereum i think just looking at the holistic approach and looking at you know year to year and year-on-year growth for each of these things is a much better approach because that has just been going up and to the right if you zoom out like yes there's going to be dips and there's going to be

things that look like crashes and yes there are a lot of protocols that aren't going to survive they're just going to die out because they were just like bull market protocols because they were only um getting usage because people were speculating or farming tokens and earning all this free money and whatever right so i think just pay attention to the proper kind of like i guess probably not the right way but like the the the fundamental value in i guess uh in in these d5 apps in the ethereum ecosystem and the ones that keep building through the bearish periods and keep deploying things regardless of market conditions because at the end of the day if a team is is uh uh is more concerned with what the market's doing and when they can launch their token to maximize you know the pump on their token well then that's

not really a team that i want to back or be involved in at the end of the day so hopefully that answers your question patrick are going to keep moving through the list unless someone has one from the audience cool the next one comes in from next alpha who says what are the top three most innovative projects applications on ethereum layer one and layer two that have pushed the space forward during 2021 in your opinion um this is a hard one actually i think there's a lot of innovations that have that have kind of come out i think uh alchemics with their self-paying loans was uh something that really shook up the uh the kind of ecosystem and i opened their ideas to a lot of different kind of things that could happen with

that i think something like element finance uh splitting up the yield um into different tokens so basically taking the the yield bearing token splitting it up into the principal and the yield uh to get to do like fixed rate kind of different things is is very innovative i think uh the layer two stuff like they are to technology it's come a very long way roll ups in general um have come a very long way i think that that is very very exciting um so yeah those are probably the things i would i would pick the most that i can think of just right now um but generally um there's just so much innovation happening in in a lot of different areas you know not even in d5 if you kind of look at i guess like um nfts and what people are doing there and

and the dow space and and you know social tokens and stuff like that they may be very small today but there's still a lot of innovation happening in that space there's people doing a lot of cool things coming up with new ideas to get people more involved or generate real fundamental lasting value so those are kind of like the the three that i the few that i think that have pushed uh the space forward during 2021 so far we're only in june right or almost at the end of june so almost halfway through the year um so yeah hopefully that answers that one there's two other questions here from next alpha he says what are the space waiting for in terms of breakthrough innovations i think we're waiting for more kind of like i guess research and development on starks and snarks which is the

uh i guess like voodoo magic cryptography that only a few people understand there's a lot of work going into that and i think that's what the space is is waiting for and i actually think the space is waiting for more kind of like tools to combat mev actually i think that's another thing that i should mention another innovative project um around mev is flashbot i think that has been uh pushed a lot of people a lot of the space forward in 2021 and gotten a lot more people thinking about mev and how we can combat it so yeah i would say that that was um that's what we're waiting for in terms of breakthrough innovations as well is more stuff around mev more stuff around snacks and and snacks to come to to light um you know statelessness for ethereum is also an open research

question right now things like that uh i think the space is definitely waiting for and also um truly decentralized um evm compatible zk roll ups i know there are teams working on this they're not live you know in a public mainnet capacity yet and you know there hopefully will be over the coming months but if that actually happens that's going to be a huge breakthrough as well and the last question from next alpha um uh actually no i think that was just the two questions the other thing was just the comment so yeah hopefully that answers your questions i mean i could go on forever about like all the innovative stuff happening and and you know what i think is pushing the space forward but just on the top of my head that's what i what i think uh is doing it there but anyway i'll take one from the audience

if not moving through the list cool i think i'm just going to keep moving through the list if you do want to answer a question just um interrupt me before i move on to the next one so one from mr hoddle here who says what 8th price would you shave your mustache at so [Laughter] i'm not going to shave my mustache no matter what the 8th price is at uh it takes a very long time for my mustache to grow believe it or not like the rest of my beard grows faster but anyway i i'm not going to shave it i know i said that i may shave it if we went under 2k but i did say may on purpose because i didn't want to promise anything and i've already made too many silly promises around each price east price in the past so i'm just gonna

not not kind of like make any more i think going forward so another question here from a jin bill lilly who says what is the future of layer twos and site chains and how can the problem of fragmented liquidity be solved will bridges be used to provide instant access to pull liquidity across these chains well yeah i think you kind of like answered your own question here a little bit where um basically bridges are going to be used to solve all of this um k'nex network any swap hop protocol seller network i think is working on this there's a lot of teams working on this kind of bridging now and not just bridging between uh i guess like the different changes different layer twos but also bridging liquidity from layer one to layer two which is what starkware

is working on as well and i've seen some posts about this where they basically are working on a way to pull liquidity from a layer one amm and kind of like pull it into layer two and do you know trustless swaps between them and things like that so there's a lot of innovation happening there actually so i think that the fragmented liquidity thing is just like a concern troll so to speak i think it's just something that the other layer one block chains like to push to kind of i guess maybe you know detract from ethereum i know that in particular the solana kind of thesis is that we can just scale it layer one we don't need layer two um and you know uh that's better because it doesn't fragment liquidity i don't think that that's true and uh because the fact if you're just scaling at layer one then

you're giving up on decentralization basically in my eyes and i think solana has already given up on it because they just i'm not just picking on celina but a lot of these other chains um they just have like a very small valid validator set that controls the network um to run a node you know to run a fully verifying node is very expensive all this other stuff that comes into it uh so from that perspective yeah i mean i just i believe that the future is like layer one for settlement layer two for scalability and side chains i mean side chains i believe do have their purpose i think that side chains have their purpose for things like uh gaming and maybe like nfts and stuff like that where the the lower value things can be done on but at the same time i much more

interested in layer twos and i believe that those things can actually be done on layer twos as well so hopefully that answers your question i guess the tldr we're gonna solve it with bridges and uh you know i'm bullish on the l1 l2 kind of landscape going forward so next question here from hubba kook who says what are the current decentralized stable coins for automating recurring transactions say for the dca into the stable coin eth or even from an on-ramp into fiat ease diversified with the integrated ramp networks look interesting in that context so yeah i think um there's a few out there that have fiat on ramps i know argent has an inbuilt fiat on-ramp into their mobile wallet i know some of this the centralized exchanges i mean a lot of them have this but you're asking for decentralized solutions

um inverse finance is one that i know about that basically allows you to deposit uh kind of like money and little dca kind of like i guess your yields into uh these things so you'll generate a yield and then that yield will be kind of like used to buy eighth or something like that um but there's i think there's maybe other projects out there that are kind of like doing this um maybe super flawed finance is doing this i haven't really kind of looked too deeply there but i'm sure there's a bunch of them out there and if not they're kind of coming um because i know this is definitely a product that people are interested in right like a fully decentralized smart contract automated kind of uh dca kind of strategy where basically it just you know you set like okay i want to buy

ether this this and this price point here's my like stable coins you put it into the smart contract and then that'll execute it on your behalf um you know there has there's not actually many of those projects from from kind of memory but i'm sure there's going to be more maybe as the bear market progresses because people will be like well i want a dca in but i don't want to do it through a centralized exchange i want to do it on d5 so maybe we'll see more of that going forward so a user user asks what is the most exciting project or idea to you right now i mean it has to go to mev and everything surrounding that flashbots and just everything got to do with mav is just super exciting right now it's something that i think the smartest people in this industry are working on

um and i would actually say it is probably in terms of like the the uh being a hard research problem to solve it's probably harder than something like the layer two ecosystem is working on because mav is or can be an existential threat to ethereum or to expressive blockchains if it's not minimized if it's not basically kind of like uh i guess uh helped along to become like non-toxic to to the rest of the ecosystem so i think generally uh you can kind of look at that as probably the most exciting thing but also on top of that obviously the layer two ecosystem is super exciting everything happening there i talk about it all the time but i just can't get enough and i just can't wait to be able to use more and more of these layer twos on mainnet i mean i tweeted out the other day that the zk

sync experience was absolutely phenomenal um with git coin i loved doing the checkout experience on that i already had funds on on my zksync wallet so it was really easy i just checked out you know clicked uh you know yes and signed a transaction and away you go right my donation was done so i really really loved that aspect so those two things are the most exciting to me right now but there are so i mean it's it's hard to pick right there's so many so much going on i mean i'm really excited about the merge i'm really excited about seeing one five five nine go live i'm really excited about stateless ethereum and how that's coming along sharding of course i mean and like even on the app layer with like d5 i'm just i'm so excited for basically everything happening in this ecosystem

it's just hard to pin down one thing but definitely what's capturing my the most attention these days for me is the layer 2 ecosystem and mev so a question here from a grac attack who says can you talk about how you see the crypto space in australia i'd be curious to understand if you see any potential for a country that does nothing but sell houses to each other and dig up dirt to sell over overseas so for those who don't know this is what australia's economy is run on we basically speculate on property we dig up minerals and we sell them to uh you know we export them to countries overseas if you look at kind of like our gdp a lot of that is that and we also kind of like have a big services industry so we basically buy and sell stuff from each other we go to

restaurants blah blah all that sort of stuff and i think we have a decently sized tourism industry but maybe not lately because of covert but um so in terms of like crypto in australia i think it's actually pretty good considering that the government hasn't really invested much money into it and we don't have have very friendly kind of like tax laws or regulations around crypto so you know everyone knows synthetics they're up in sydney the immutable team behind god's unchained are up in sydney um there's maple that was born out of australia m stable d hedge there's a lot of pro i'm forgetting projects like i think thought chain as well there's another project that's in australia there's a lot of projects coming out of here that are well known within the industry and you know i i was asked this question a few

basically on twitter like what would i chalk it up to i actually think that um a lot of it's got to do with uh our gambling mentality so in australia for those who don't know um we have like a massive gambling culture for better or worse sports gambling is everywhere like if you if you watch a sports sporting match and you kind of like watch it on tv every single ad break has gambling ads in it no matter what like no matter what and it's not just during sporting events it's just during any kind of like uh tv that you watch whether that be paid to air or free to air tv there's sports ads everywhere we have pokies at every single restaurant basically uh you know every single pub i should say not every single restaurant um and you know just generally we have a

very kind of like i guess gambling uh culture and this isn't just for like the older folk who do love to gamble but also the younger people um and i think that's what attracts a lot of people to crypto is that that kind of like um speculation side of things um and you know for better or worse right i don't have any opinions uh uh on on gambling there but i think that's one aspect of it and a second aspect of it is maybe that we have something to prove because australia really is like a very small country at the end of the day we have a population of 25 million people we're detached from uh the rest of the world yes the land mass that we have is absolutely massive but the things that we are known for are like the the animals like and the spiders and the

kangaroos right so i think generally we just have something to prove in in australia as well so um and there are a lot of very smart people here despite everything else so i think i am bullish on the future of crypto in australia i am hoping that there are better regulations and kind of like tax policies coming for for crypto in australia i don't plan to move out of here like i'm down in melbourne in australia for those who don't know it's it's the south of south of australia um i love it here i think it's like an amazing place to live but uh it does suck for different things like our crypto taxes are not very fun they're very similar to the us so for anyone in the u.s you'll know that they're not very fun and the government doesn't generally invest much money in crypto

and let alone the technology sector here as well so hopefully that answers your question greg attack there so uh slay or ktc asks post merge will clients support mev so clients such as prism lighthouse and will they each have different strategies for mav or is this a separate piece of software that will run alongside our validators i fully expect these clients to either build mev features into themselves or for there to be something like a flashbots that is like a fork of a client that basically enables people to extract mev and stuff like that um that's definitely gonna happen i don't even think it has to has to wait till post merge i think people will have these tools ready for before the merge goes through and then maybe it will start getting extracted there

but i like to think that by the time the merge comes around we have a much better kind of grasp on mev we have a much healthier way of kind of i guess like um distributing it or at least uh managing it within eth2 but at the same time eth2 introduces other problems with with mev where um you know block proposer is known i think like two epochs in advance uh too epic sorry i should say in advance um i might be getting that wrong maybe misremembering there but generally it means that like if you know that you're you're gonna propose a block then you can do some fancy stuff with mev so open questions a lot of smart people thinking about it but i do think that clients will support it or there will be forks like flashbots that support it uh so yeah it'll be the

same as what it's like on eth1 i believe uh so frey denz asked where do baby eth come from after the uh pos update so after the merge and i assume that they're asking like how is eight issued to the network so basically it is issued as it's issued now where the protocol itself issue is new eth and this eighth instead of going to miners it is going to block proposers and um people that attest to blocks so generally i believe like 1 8 of the revenue comes from proposing a block because you won't propose a block very often um and the rest of it comes from attesting to blocks so you're set you're basically chosen as a validator to attest to blocks every uh i guess uh you know i think it's like uh every six

minutes or something like that i believe uh you would test the blocks every six minutes and you know you get a reward for doing that and you get a reward for doing that well and on time and things like that and then obviously you get a reward paid in eighth for proposing a block too now the block reward is is much higher but the frequency of the blocks that you'll be proposing is much lower so as i said like seven eighths of the revenue is going to come from um sorry the rewards is going to come from a testing to blocks and that goes for like every single validator um on the network and for pools as well at the end of the day so uh yeah hopefully that answers and answers that question so brian peace asks on the last ama you said main net would eventually be for

wales and roll up proofs how should i think about my assets currently staked or in vaults on main net could it eventually become cost prohibitive for me to withdraw them so yes it's a short answer long answer it's going to take a long time i don't think that we're going to get to a point where a thousand way transactions on ethereum layer 1 is going to be the norm for a long time i do think that you know maybe in five years or so like something like that we will get to that point maybe maybe maybe it's longer i don't know like timelines are hard to tell here but i do think that uh if you have stuff on mainnet by the time it gets to that point where uh i guess like we're at those like super high transaction fees and only whales and roll up transactions

can get into a block uh for you know um can afford to get into a block i should say you're probably not gonna have any assets on layer one anymore you're probably just gonna be living on layer two i know me personally once the layer two ecosystem is built out more and once i can do everything on layer two that i can do on layer one i have absolutely no reason to stay on layer one because layer two is giving me the same security guarantees that layer one is or at least very similar security guarantees and decentralization so um you know i'm just going to move my assets across so but so yes the trdr is by the time this happens where it becomes like very very expensive to transact on layer one way more expensive than it's been in the past and i'm talking about like not just

doing manias but like persistently expensive you're probably not going to have any assets on layer one anymore and if you do well i mean it depends like maybe you have like a thousand dollars on there and you can't and it cost a thousand dollars to move it i expect that to happen like one day in the future sometime not not not anytime soon one day in the future and i think that's just what the way it's kind of like unfortunately going to be or there was kind of like discussions around uh doing something where you would basically have uh the community come together and say okay you know let's rescue all the dust that's uh in ethereum so basically dust is refers to assets or eth whatever acid it is ethanol ac20 tokens that are stuck

because they cost more in gas fees to move them than it does than does the value of that asset so essentially the proposal would be let's move all those assets into a layer two system uh and then you know that saves the assets for people but there's a lot of problems with that like you know which layer two system do you pick you know you're playing favorites if you pick one over the other doing this is actually kind of like uh setting a bad precedent because you're essentially you're not taking custody of users funds but you're you're technically moving users funds somewhere without their permission so i don't think that would fly with with the community so i do believe that that will be you know any any the the the amount of dust will keep going up on the chain eventually um but like as i said i

believe most assets are just gonna sit on layer two in the long run so disco danson asked i'm a novice so my question is a bit jumbled is it possible that staking allows other traders to in effect borrow eth or matic for by shorting it to profit on the downside so could more staking mean more of this type of trading so if you like matic for example maybe you shouldn't you shouldn't stake it for a yield or um have i misunderstood something so this is basically one of the attack vectors of proof of stake where you could essentially uh short eighth i guess like or short medic or show any proof of stake token on the open market and then attack the network for example and in doing so you would hope that the price of that asset would fall and you

would profit off your short in practice this is a very impractical way to make money i believe i think that you're much more likely and you have a much better chance of shorting uh you know an asset or whatever asset it is whether it's a proof of stake asset or other or otherwise you have a much better chance of of kind of like shorting that based on some technical indicator or some market momentum than you do of being able to attack the network and also having enough confidence to believe that attacking the network would dump the price enough to be worth it for your short because if you attack the network uh in ethereum you're getting slashed which means that the the stake that you use to attack the network um the ether you use to attack the network is going to get burned or deleted you're going to

lose that eth you're going to as i said you're going to get slashed so i don't think it's really worth it it's possible but i don't think it's worth it so generally i think it's fine to stake your assets and just like uh you know follow the rules of the network or whatever and make sure that you're not doing anything wrong so you don't get slashed or not going offline or whatever if you're staking on your own so yeah hopefully that answers your question there just go dancing so one here from bailly oh sorry quick about that question actually i read in the chat he was actually referring about uh lending out your assets on a platform like a centralized exchange like ftx where you're lending out your assets for a yield which means somebody else is borrowing them effectively shorting them

and i believe in that situation yeah if you're lending your assets on a centralized exchange for that to be profitable somebody else is borrowing it because they want to they want to short it okay yeah yeah well that's that's correct then yeah maybe i've copied the question over wrong there thanks thanks for uh for clarifying that there but yeah for sure yeah like if you're lending your assets out someone can can definitely uh borrow it to short it yeah all right on to our disc uh not this good answer bazer's question so do you ever dabble in cryptocurrencies that act as a complement to ethereum chain link polygon rba etc how to get into yield farming in the safest easiest way for beginners so i'll answer the first question um i do kind of do things i guess like trading

here and there right like as i was saying before it's very hard to do this i don't regularly trade or anything like that but sorry guys one sec there's uh there's some something something i have to do i'll be back in a sec take a short two minute break i heard some noises for just one sec i think the noise you heard was just the

east price hitting the floor sorry about that guys just the gate outside was for some reason making noises but anyway um yeah to answer to answer that question uh from from base um yeah i do kind of like double in other cryptocurrencies other than eth i mean obviously eth is my you know long-term hold i don't i've said multiple times i don't really plan to ever sell my eth um but as i said earlier trading is very very hard i'm not a trader um i have held things like

uh link and rv in the past uh polygon i mean i'm an advisor to polygons so i um get compensated in advisor tokens there that are vested over time um but generally when i kind of like buy into something it's like by as i said buying something other than like 8 is just hard because it's very hard to outperform either but my strategy is always to you know do my research look at kind of like newer protocols and and and protocols that i believe like are undervalued and kind of like uh buy the buy up those assets and just wait over the long term because i'm a long-term investor i'm not a trader so yeah hopefully that kind of like answers that but i think i answered it a lot earlier about like how i view trading and kind of like trying to outperform eth with different kind of tokens and

stuff like that and the second question from bayes was how to get into yield farming in the safest easiest way for beginners um so i guess like all yield farming comes with risks but the safest yield is probably just like a naked stable coin yield where you basically just put stable coins into some vault whether that be like a urine finance vault or something on like m stable and there's plenty of stable coin things out there and it's just like um you know farming with just stable coins rather than doing something like a liquidity providing pool like you know their projects will pay out their tokens to you if you provide liquidity but you're taking on the risk of impermanent loss and you're taking on and you know if they're providing liquidity what could end up happening uh sorry if

they're paying out lots of tokens what can end up happening is that you basically just become the quote-unquote exit liquidity for the the farm and dumpers and the token price just goes down a lot and you suffer a lot of impermanent loss because of that so yeah i would say that the safest and easiest way for beginners is just to look at the very basic stable coin yield farms rather than trying to chase anything uh kind of more complex than that so a question here from t1 who says with layer two's imminent it's fair to expect a decent decent chunk of liquidity to move from polygon to albuquerque optimism shortly after general go live how will this affect yields on polygon lp pools and does it make sense to pull out now in anticipation of this um i think it's very hard to say what

liquidity is going to do to be honest i think that liquidity is going to be absolutely everywhere i think there's just going to be so much more money coming into this ecosystem literally hundreds of billions of dollars that it's going to be spread across these things and it's really going to depend on token incentives too in the short term because you know say uh polygon on polygon ava doesn't have token incentives but on arbitrary they do well it logically it follows that capital would would go from you know polygon and even ethereum to to arbitrary for example but at the same time we saw polygon do liquidity mining for uh sorry for abe do liquidity mining on polygon but uh on arbitrary uh certain arbitrary on ethereum's layer one the tvl was fine it kept growing so

i think that it just generally there's different users on different platforms there's different people who can take different security trade-offs some people don't want to be on polygon some people want to just be on ethereum layer 1. some people don't want to move their positions because that would maybe incur taxable events and things like that as well so there's all those kind of things to consider so i think that it's very hard to tell or explore very hard to to say what to expect when when these other things go alive and where liquidity is going to flow to um and i think it really does in the short term depend heavily on token incentives um and you and you also ask like would it make sense to pull your liquidity into anticipation of this um i don't i don't know it's i think as i

said it's very hard to tell what's gonna happen uh i don't really have an answer to that question i think that generally uh you should probably just wait and see what happens rather than um i guess like uh trying to preempt something but i don't really give investment advice generally and i consider that to be investment advice so sorry i can't give any more detail there um yeah i'll just leave it at that so uh babs to the future asked do you have an opinion or feeling on how much the demand for new validator activations will be leading up to or after the merge do you think we'll be looking at a months-long queue in 2022 so some background here about what what babs is asking is basically there's a validator queue in eth2 only 900 validators can enter and exit the beacon

chain at any given day around 900 i think i believe it is around that number so what that essentially means is that if there's a kind of like over 900 validators waiting then you uh sorry if there's uh uh you know i guess like more than one validator kind of being put in then you have to wait in a queue now if there's like lots and lots of different validators and you know thousands of them then you're going to be in a queue for multiple days uh and what babs is asking is like do i um think that uh is it going to be a coup leading up to um and after the merge i think there will be because people on aren't people aren't really thinking about the fact that the yield that's currently on um eth2 staking is just the block rewards uh so that 6.5 apr that

you see is just the the block or the protocol reward sorry i should say um that are being paid out that does not include the fee revenue now people might be wondering well you know i'm gonna have one five five nine and aren't most of the fees going to be burned yes but there's still going to be a healthy chunk of those fees going to minors and proof of work and then stake is after the merge which means the apr is going to go up so i think that we're going to have like uh as more people realize this but they're going to they're going to stake and then post merge i think we're actually going to have a spike in the apr kind of like these people really underestimate the the fee revenue and especially if it's bullish i mean if the market's bullish again and we have like

100 way plus um transaction fees uh sorry uh gas prices well yes the api is just going to skyrocket we're going to have people for mowing in and there's going to be a long queue um i don't know if it's going to be months long in in 20 and when once the merge goes through um but it might be you know there might be a really like heavy fomo for for that apr but and especially if that apr is like over 20 or something so yeah i i can see that happening i think the queue was like got up to like two weeks at one point so months long isn't really too far fetched especially if the if the apr is quite quite juicy there um but leading up to it i expect people more and more people to clue into it because more people will

be talking about it and doing estimates based on like current fee revenue and things like that so that's going to be um that's going to be i guess like interesting to see and then the second question bob said here was if this is the case the logic should follow that space and staking pools will become more scarce too uh yeah i guess sorry because staking pools are still stuck subject to um i guess like the queue because they have to go through the same kind of like lane that all the uh that every staker has to go but i uh i sorry i heard my echo there for a sec um but i don't think that uh generally when you kind of like look at the staking pools i don't think they would actually just uh i guess say okay we're not going to accept any more kind of like eat the

steak and we've closed off our staking um i think they're just going to tell users while there's a queue you know whether you want to wait in this queue or not is up to you but uh just be aware of that so yeah i think that's how that that will uh eventually play out there so one from bran here who says what are your thoughts on curve as well as crv rewards anthony oh sorry go for it yeah um it's just a couple of guys in general can you increase the cap for the voice channel or they want to join uh okay um let me have a look settings uh is it does it i think the cap is because of like the the channel's not boosted or something

that might be that might be it guess it's their bad luck yeah yeah i can't boost the the channel right now so yeah um if they want to they can boost the channel if they've got like discord nitro if anyone else does um i don't yeah i don't think that i can increase the cap on my end unfortunately um but yeah i mean if you want to tell them that the uh uh these things being recorded all good um cool i'm just going to go through the before i go down the list here i'm going to go through the channel and see what people are asking here let me have a look um so there's a few more questions here

um one from from knowledgefire he says are there any other ecosystems outside of the eth ecosystem that you look at to try and see what innovation is happening examples include solana terra etc um sorry guys one sec i'll be back in one sec sorry um yeah there are other ecosystems that i kind of uh pay attention to um i'm not not too deeply into any of them really um i am kind of like aware of what's happening on them and kind of

like the traction that they're getting i do pay attention to some of the metrics and stats i think that you know if we want to talk about specific ecosystems i think that the salina ecosystem is like wholly dependent on ftx's involvement right now i think ftx and spf are basically bankrolling the whole thing and you know i wouldn't say that's necessarily like a you know a bad thing because you know ethereum definitely had like a very big kind of like benefactor and consensus early on um but generally that's what i'm seeing there so and in terms of innovation i'm not saying anything too innovative yet i'm just seeing apps being kind of like you know existing you know apps that are on ethereum just being rebuilt in rust because it's not evm it's not solidity so they're just rebuilding the apps which i guess is

cool just to see that but yeah i'm not seeing anything too kind of like i guess like interesting in there uh terra i mean i was talking before about how they have like anchor protocol which i actually think is pretty interesting they have a bunch of other things that they've got like mirror protocol which is like stock trading uh sorry synthetic stock trading but you know synthetics has that and stuff like that so um and then i mean there are other protocols like uh file coin and r weave and and those sorts of things that are doing like something very different to a smart contract blockchain where they're doing uh centralized data storage i think that's pretty cool like decentralized file storage and all these sorts of stuff i think that stuff's really cool because i think that the the thing that has the most product

market fit on the internet in general is like file sharing so and you know why if we could if and like cloud storage and things like that so you know if if we kind of think about that then can we decentralize that now i don't know how successful these things are going to be because generally it's just like it's an economy of scale thing where i think that these things are going to centralize around these big kind of data warehouses that kind of i guess like serve that data to the network um and that's just going to repeat what we already have with like aws so it remains to be seen how decentralized those are going to be so yeah those are some of the things that i pay attention to but it's very very hard to pay attention to anything but ethereum these days as you know i'm sure

you're all aware there's just way too much happening in ethereum even when the market is bearish there is just too much happening and like now that the market is bearish i actually have um a lot more time to go over a lot of the old blog posts that i put in my reading list and things like that and that's just taking up so much time and yeah so yeah just hopefully that answers your question knowledge fight about kind of what other stuff i pay attention to and what other things are interesting i guess besides ethereum and actually i also pay a bit of attention to what's happening in bitcoin um just to just to keep an eye on it i guess like just like out of curiosity so there was one from selvis here i actually accidentally skipped over who said uh you mentioned bitcoin how do you

think china banned the bitcoin miner so i guess like they're talking about like what do i think about china banning bitcoin mining um i mean i i think this is this thing's been talked about to death already like everywhere but generally um i can just say that it's very real they definitely did ban bitcoin mining this time um a lot of the miners obviously leaving china now going to other kind of like uh places in the world they crack down hard on crypto exchanges specifically the leverage that's happening in the crypto kind of exchange market there um and you know i think exchanges are having to to kind of like ban people from from accessing certain products and stuff like that so it's real and i think that the market movement is in large part due to that ban um and due to the kind of miners

having to sell off assets and and not just like their hardware but their bitcoin as well or their btc to cover running costs and stuff like that so yeah it's it's unfortunate but i think it's actually long-term bullish for the ecosystem that um you know it decentralizes this kind of hash power out of china and things like that so it remains to be seen like where all this hash power and mining power goes does it just go to the next cheapest country or does it distribute you know globally i don't know we'll see we'll see what happens there so a few questions here from meeple dad in the uh channel so first question i've noticed lots of mis mud slinging between different communities on ct i believe this is foolish it makes the whole space look immature and childish uh

i mean yes if a question is like asking it's like do i agree or disagree with this i mean yes i think it is immature and childish but i also think that crypto twitter is just like one kind of piece to the part to the overall puzzle of the crypto ecosystem and i think that twitter in general it loses a lot of nuance so you might see something that seems like someone's being toxic or someone's kind of like mudslinging or something or something but because they're just like limited to a certain set of characters because it's twitter and because it's like over the internet it's over text you lose a lot of the the nuance you lose a lot of the emotional kind of side of it you don't know exactly what the person's doing you don't know if they're kind of like saying it in a joking attitude you don't

know if they're saying it like seriously but yeah i mean there's a lot of mudslinging but this just comes back to the incentive like if you're holding a token um you know say you're holding like the solana token you're not holding ethereum well you know of course you don't really care if a theorem does well or not because you're holding solana you want solana to do well so maybe you're mudslinging against ethereum and then it works the same way right works the other way too but generally i think that um you know this stuff is always going to happen not i mean humans are tribal at the end of the day like over anything like look at it's you know it's funny it's like uh i i've once said that like i think crypto takes like the worst aspects of three different areas in um in humanity uh

gambling because the speculation is really bad um general like tribalism over like say sports teams for example like sport tribalism is pretty pretty bad in in some parts of the world especially and then third is like religious or like fanaticism where people get very fanatical about these things almost kind of cultish beliefs about things especially the i believe the bitcoin is a bitcoin maximalist a very cultish vibe there so just generally i mean i don't expect that mud slinging and that kind of like tribalism to subside because crypto brings in those those kind of like things in a really big way but on the other side of things there's a lot of good stuff that happens within the crypto ecosystem a lot of positive things different communities are more positive than others i believe the ethereum community is still very very positive you know on

on net and i believe that it's it it doesn't do as much mudslinging uh as other communities do but again like that's probably like not not a great argument to have and we should always strive towards i guess being nicer to each other but online isn't representative of real life like as someone who's been to a fair few ethereum conferences uh and and people were there that you know uh either bitcoin maximalist or you know not you know i guess like a totally ethereum line and things like that i would generally say that people are very very different in those kind of like things and you can have better conversations rather than what what you have on twitter so hopefully that kind of like um gives some color there your second question meeple was what can we do during this bearish period to help build bridges between the communities um

i actually think that the tribalism gets worse in bear markets i'm sorry to say because people you know lost money or people didn't take enough profits so they they're down a lot on their you know imagined gains once upon a time that and then people kind of like start digging their heels into more of the tokens that they hold which means they dig their heels into more of the communities that they're involved in so i actually think that bull or bear market this uh tribalism is going to going to persist unfortunately um and then the last question what problems can different project maxis come together on i think and this is a funny thing i think at the end of the day most people in this ecosystem are working towards the same goal of decentralization right we want to take power away from centralized entities and

we want to kind of flatten the playing field or level the playing field for all of humanity with these sorts of things we're just taking different approaches to get there we have different beliefs on how to do it you know we some people want to do it one way some people want to do it the other way like for example bitcoin maximalist or bitcoin or whatever they want to do it their specific way which is move very slowly only do the changes that are necessary on the base layer and do everything else at like higher layers whereas ethereum takes a bit more of like a pragmatic approach where we say okay let's move slowly still like we're not moving like super fast let's still be decentralized but also let's uh basically um uh make sure that we can kind of get a kind of halfway

point here where we don't have the super conservative view we don't have this like super um you know pragmatic view we have like a balance between the middle and then there's like communities that fall kind of like in between that as well so hopefully that answers those those questions there um yeah i guess like man i should maybe say sorry to people for not being able to get in because we hit the limit uh we haven't hit the limit before which is i guess bullish for the daily way that's pretty pretty cool um let me just make a note yeah that those are great answers to those questions i really appreciate that um i it just came to light for me because i was listening to the bankless episode where they had uh preston the bitcoiner on and it was like they were super cool to each other like

they were and they had like really good questions it was a really thoughtful um discussion and i was like yes like we have so much to work together on between all these communities like but you're right that that it's way easier to be a dick on the on twitter than it is in life yeah and i think it's also funny because like with twitter the goal really for a lot of people is to just farm engagement right because they want to grow their brand and they want to grow you know their following or whatever and the quickest way to do that is to cause drama and i know this because i did some of this back in the 2019 or whatever like if you want attention on twitter you just have to cause drama that's literally all you have to do and the quickest way to cause

drama is to drive right into that polarization between the different communities so you know and and like i think the tweets that go the furthest are the ones that piss off the most communities so if you piss off the bitcoin maximus you piss off the if you want to call them 8th maximalist you know and then you kind of like pit them against each other and then you get all these replies and all you have to do is basically mute the thread you don't have to listen to anything and just walk away and then people are just going to fight amongst each other because everyone loves to fight on the internet there's this old comic that i saw that said you know um the wife is is kind of saying to the to the husband it's like i'll come to bed honey and he's like sorry someone's

wrong on the internet right it's like it's just a lot of these debates and arguments are so pointless but because like for some reason like a lot of a lot of us like we love to get into arguments and debates and we're tribal and it's very easy to kind of get fall into this trap on twitter and i fall into it all the time like even to today but i stopped doing so much of those polarizing tweets because i just felt it was like a waste of time and i actually felt kind of gross doing it but a lot of people still employ this so maybe when you see those tweets just keep in mind that people are just doing it to farm engagement most of the time um they're not actually doing it because they maybe they don't even believe what they're saying they just know that it's

going to get like a rise out of people um and this just goes back to people on the internet of trolls at the end of the day it's just always been like that i i i ben cohen actually blocked me on twitter because i was trolling him and i had to message him be like i was joking it was just a joke i'm sorry yeah yeah i've done that before too with people that have trolled me um you get sensitive after a while because if you have a large following you have so many people going and talking to you and you sometimes can't tell the difference between like someone who's joking and someone who's serious so yeah all right uh mark asked another question in the channel here so do you think we could ever see infrastructure such as data centers controlled by dows become

normalized as in decentralized governance overseeing centralized computational resources is this a scenario too far removed from uh possibility i mean i think so i i guess like um it's it's not impossible i i think that if you think about like the file sharing protocols like filecoin and rweave and if you hold their token you have like governance over the platform i guess like that could be viewed as something like that like a data center that is controlled by a dao um but i think that it's funny because if you if you kind of like it depends like where the central point of failure is for example if you have uh say like a data center that's controlled by amazon right and you're just renting it from them say you're renting renting

some like massive aws kind of space uh and then you have like a dao built on top of that well it doesn't really matter at the end of the day what your dow does who the talk on token holders are whatever jeff bezos can come along and shut you down immediately because he owns aws he owns amazon um and he can control the whole thing so i think that from that perspective the only way to do it in a decentralized way or at least a more decentralized way was with was to to maybe do it on something like um you know file coin or rwev or on those platforms there so but yeah that's something that i haven't really thought about too much so interesting um maybe i'll have to think more about that and maybe have a better answer for you later on all right uh last one here from on the

channel from hen f who says i haven't really looked into erp 1559 and mev too closely so this may be a bit of a stupid question um at the moment a lot of mev goes through flash bots right where the mav transactions pay very little gas or no gas to be included into the next block i wonder if this is almost subsidizing gas phase a little bit by bringing the average gas price down i get they are still using up block space which other users have to fight over but it was just an idea in my head with erp 1559 they will have to pay the base fee i was just wondering if this would lead to a higher gas price for everyone if this is that they are actually subsidizing gas so i actually do believe that the reason why gas prices are down is actually due

to two main reasons one market volatility is down market's quiet less people using the network gas prices are down two is flashbots for sure because what flashbots has done is it's taken that mev which is usually kind of like arbitrage between amms which takes up a lot of block space and taking it out of the public mempool and put it into this dark pool as they're known as the flashbots dark pool so in a pre one five five nine worlds essentially uh you know that that the base fee doesn't exist so no kind of like e if is being paid to the network it's like a zero grade transaction fee but uh the miners are still making money through the flashbots kind of bundles whereas post one five five nine they will have to pay the base fee um but i

still think that um most of the extra that they pay for mev is actually gonna be part of the tip which is the fee that's not burned and that's still gonna go to the miners or the stakers through through flashbots or other kind of mechanisms like that so the base fee i guess may kind of like rise a bit from this because we're going to get more of those transactions coming back onto the public mempool so i would expect to see maybe a little bit of a spike but again i actually think that the i actually think that besides flashbots the number one thing is market volatility so we'll have to see how the market is going uh at that point in time all right let's keep going down i guess my list of questions here just a few more left so um one from bran what are your thoughts

on curve uh as well as crv reward boosting protocols like convex and yearn i mean i love curve you know i think they have amazing product market fit with the stable coin swap protocol uh i think that they're innovating pretty fast i think a lot of the stuff they put together is way over my head in terms of like the white papers and stuff like that um so and they they're they're branching out you know uh out from being a stable coin swap protocol now in response to uniswap v3 they're trying to do i guess like volatile asset swaps now um and in terms of like crv reward boosting uh protocols like convex and yearn i think overall it's bullish over the long term because you basically you have these protocols i guess competing for crv to lock it up to boost their earnings for their users in

the curve protocol or to boost their yields so yeah long term i think it would be it would be bullish but i've had this debate with um with someone in uh in the in the in the general channel in the discord uh affair a fair amount el elnara hopefully i said the name right right that that time but um basically i've had this debate where i've said that like crv has a lot of um uh liquidity mining pressure over time and it also has a lot of investor and team unlocks over time so i don't know what's going to happen with the price short term total to medium term i don't know if that like these are kind of like battles over the crv locking is actually going to put sustained upward pressure on the price especially not during the market that we're in right now i think

it's gonna be even harder to do so um but yeah i don't really have any strong opinions for or against there but i do think that the crv token economics design is actually one of the best i've seen because of the it encourages this kind of like i guess battle between these protocols that are built on top which i think is quite elegant all right one here from shoremen who says seeing that uni swap has elected not to deploy on polygon and he's held it in the highest regard of staying true to ethereum values can you help me on this better understand how polygon is ethereum aligned is there a roadmap for polygon to switch to using ether's gas so i maybe i should kind of describe or kind of like clarify so polygon is an ecosystem or there's a suite of scaling solutions so

it is not just what they have live today but they're going to have other solutions going live um but what they have live today is two things the plasma chain and the pos chain the pos train is by far the most used and the pos chain is not what people typically consider a layer two now and that's not to say it's bad or anything like that but it's not typically considered a layer two because it doesn't directly inherit its security from ethereum um so it is called what some people like to say a side chain or a commit chain or whatever else you want to call it here and for that reason uh i think maybe that's why unisop didn't deploy on there because they want to stay pure or true to ethereum kind of i guess like values they only want to deploy to like true layer twos and i

guess that's fine but to help you better understand how polygon is ethereum aligned well essentially i mean as an advisor polygon i know the team very very well they are basically ethe maxis if i'm being honest right they absolutely love ethereum a door ethereum they want to help ethereum scale in any way possible and they actually are working very very hard on their roll-up solutions that are coming soon i don't have any dates for you or anything like that but essentially uh the pos chain is like a means to an end it's essentially a stop gap i believe um and you know this is just me saying this is not them saying this but the way i view it is that the pos chain the polygon post trend basically stopped a lot of users from going to bsc which i consider bsc to be very

parasitic towards ethereum because it's completely centralized cz is very hostile towards ethereum he's just in it for himself and in it for binance so why not get like users onto kind of like polygon post training let them play around with them experience defy um you know ethereum based d5 and let them experience things in a really um you know ethereum way and then once these kind of like layer twos come online and things like that when they're more mature like ave trim optimism zk sync and then polygons roll up solutions as well users will prob you know will flock to that um so that's kind of like i guess what i mean by ethereum aligned is that they're actually wanting to scale ethereum in in kind of like the layer two way as well they want to help ethereum scale in any way possible and

they're not hostile towards ethereum and you you know you ask as well sherman if there is a road map for polyglot to switch to using ether's gas i know that it is something that i want to do i just don't know when they're going to do it and i actually think that using ether as as gas on on the polygon network makes a lot of sense on the pos tray makes a lot of sense because of that coherence around ether as an asset like everyone has eighth you know you can just port it over you don't have to acquire another token to do so and i and i think matic just being like a staking token and capturing the fee revenue and capturing kind of like the block rewards is is is a very bullish thing for formatic generally and is a fine way for

matic to kind of i guess accrue value over the long term and things like that so yeah i it is definitely on the roadmap i just don't know when so hopefully that answers uh your questions there all right i'm gonna power through these questions here because uh we've got 20 minutes left before it's 1am here so uh there's one here from bug who said what kind of notes do you work off when you do your podcast do you run through uh before you record are you just really or are you really just that good at winging it so this is talking about the refuel i wing the whole thing i literally two minutes before i um before i start recording i open all the tabs uh that i'm gonna cover for the day and then i push record and i do it that's it i wing the whole thing the way

i view the refuel is like uh keeping a diary i guess of what i've learned during the day about ethereum or what i've come across and my thoughts and just like putting them all together and kind of like putting them putting them down or like i guess recording them and sharing them with uh you know the delegate community obviously um and really it's because i i really just talk to a lot of people during the day i do a lot of ethereum based research i read a lot of blog posts i read a lot of twitter i'm basically living on my pc these days because i can't really do much else for those who don't know australia's borders are still closed um our vaccine rollout is horrible i can't even get the vaccine because i'm like 29 and only over 40s can get it um so i'm

just waiting right now and maybe i'd be less active if i could go to ethereum conferences but right now i'm just sitting in front of my pc so my life's just ethereum um so from from that perspective uh yeah i just i just just wing it uh and it's just a good way for me to to kind of get my thoughts out there so yeah i'm i'm glad you you find that impressive uh i i think it's just me just like a stream of consciousness in kind of one take and i think that's just the best way to do it i don't like jump cuts you see in some like youtubers they'll do a lot of jump cuts i hate that like it just it takes me out of the video um and it just feels like very i don't know it feels very like uh gen z where it's like everyone

wants something really fast right everyone wants like fast reactions to things and they want like you know they want to know what's going on in 10 seconds i i feel like you know myself and a lot of people who watch the refuel like those more longer form kind of i guess uh descriptions of things so that's why they're like you know 30 minutes long and things like that all right so one here from aento 20 or a few here actually i think what are flashbots and what do they do and why do we need them uh so i i could go on about flashbots for a while but tldr is flashbots is basically a service that allows people to uh or any people who want to extract mav to post their transactions directly to miners uh who basically put those transactions directly into a block so a bit of

background miners have um the ability to order transactions in a block in any which way that they see fit um and you know they they can basically put their transaction at the front or they can put in or they can put like the highest bidders transaction at the front that's usually what happens the person the people who pay the highest transaction fees on the network get into a block before other people that's why you see like on um gas estimator sizes like rapid fast slow rapid transactions guarant uh you know high likelihood you're gonna get into the next block fast maybe a couple of blocks things like that what flashbots allows people to do is basically go um uh around the public memphis so when you and i do transactions through something like metamask we're posting our transactions into the public mempool um which everyone can see

and you know miners are kind of like building blocks on and things like that and collecting those transactions together and building blocks with them whereas flashbots uses their own kind of like i guess pool which i think they call bundles um as part of like and they're referred to as dark pools where it basically doesn't go into the public mempool it goes straight to miners and miners put it into a block and that's why you see transactions with zero zero way attached to them because the transaction fee was actually paid directly to the miner through the flashbot service instead of paying it to uh you know the public network through the public mempool so hopefully that answers the question about what are flush flashbots is at a high level and why do we need them well we need i wouldn't say we need them but what flashbots does

and what it hopes to do is basically democratize mev so allow anyone to basically have access to mav and do mav stuff i have mixed opinions about this i think that it mav generally long term is very toxic i think that we should be minimizing mav as much as possible democratized or not it's still shitty so i don't really think that uh we need flashbots i just think that is probably you know a marginal improvement on you know on mev being done by just sophisticated players but still long term i hope that we don't need flashbots i hope that we donate anything like this i hope that we can solve mev or at least minimize it to a point where it's unviable for most people to do uh second question from my answer is i have heard there may be a cap on each

two validator nodes at one million as not to block the network with excessive issuance um just a question there it's not not it's not because of bloating the network with excessive issuance it's uh to do with stability of the beacon chain so past a certain amount of validators or validator nodes the beacon chain can become unstable because the network requirements or the band width requirements get too high so we want to keep that kind of like at a safe level but anyway the question is do you know if existing nodes could be forced out of the network or simply a queue as and as eth2 validator nodes exit new ones are allowed in so basically if there was a cap uh how it would work is that say there's like 60 million each staked as an example here and the cap is 30 million each what

would happen is that it would get rotated through so only 30 million each would be staked and actively getting paid rewards at a time and and and then like uh and then there'll be 60 million total staked but then it would rotate through the other 30 million so technically all 60 million is being rotated through but the active set is only 30 million each and this uh i the reason i say it's just an easy example but really it means validated so it would only be like 50 of the validators that are active um being kind of like uh sorry that are online being active at any given time but it would still everyone would still kind of get a turn there to kind of like validate um and you could still exit and enter just as normal here uh and the third question what are some

good use cases that nfts built on eth can could do in the future um nfts are a broad category a lot of people think about them as like collectibles and in-game items and stuff like that but nfts can represent any unique asset so you could have an nft for an insurance plan so say you have an insurance kind of like a product with um with you know a nexus mutual something like that and it's a unique thing well you can nft that and you can maybe use that as collateral in some kind of money market if someone wants to take that on so there's those kind of use cases i think bringing just general more utility to nfts and doing things like um being able to hold an nft and have special access to something or po apps pops nfts right being able to vote in

governance based on how much pipes you have and stuff like that so there's a lot more kind of stuff that's coming to nfts um but yeah just because i'm running out of time here i just want to leave it at that but yeah just don't sleep on the utility of nfts it's there's a lot of stuff happening there so uh monkey king asks believe in eighth long term and uh sorry he believes in eighth long term he doesn't plan on selling um have a stack just sitting doing nothing been waiting for rocketpool to launch but at this point i'm tired of not earning yield on my eighth deciding between depositing e in alchemix ethevault or staking in lido could you describe your thought process if you were deciding between these options or if you have a better alternative to passively earn yield on eth again

yield farming generally just about how much risk you want to take i would consider that the alchemic's eighth vault to be more risky than staking on lido i love alchemics but i mean they their vault just had an exploit recently um so yeah it's obviously more risky um staking with lido is is definitely not like uh staking on your own it's definitely i wouldn't call it like i mean i would say it's centralized in the fact that like um you're you're basically doing it to a distributed service where your stake is going to um staking providers rather than staking on your own so yeah essentially i would say that that would be i guess like uh riskier than just staking on your own so if i was deciding between these uh i would stay on my own like that's what i've done i've staked on my own um but then

if i couldn't stay on my own i probably would go through lighter or some other kind of provider you know if a lot of people don't have 32e so i understand that you can't stack on your own um but you know i know rocketpool's taking forever to kind of launch and i'm hoping when they do it's actually decentralized and you know it lives up to everyone's kind of like hype around it and things like that um but you know other ways that i would passively earn yield on my eighth i mean sure i would use the alchemics eighth vault when it's more battle tested uh i would put my ether into something like the the curve st eighth eighth pole which is paying out some yield there i would use my eighth as collateral to borrow stable coins that's again riskier to go yield farm

so there is a lot of things you can do but it's all about how much risk you want to take on just like anything in d5 really and i and i really do want to stress that it's just the risk is just like the first thing that comes to my head it's okay what's the risk you know what are the chances i'm going to get rug pulled or i'm going to lose my funds here because i spent like a lot of time stacking my eat i don't want to be losing it in some kind of thing just for like some small amount of yield at the end of the day all right so apollo of the sun asked what are your thoughts on projects like litintry that aim at tackling decentralized identity management do you think it is possible to manage detentionized identities without requiring large amounts of capital to be

staked i haven't heard of this project uh before actually this is a first for me i have ever haven't heard of a project so i'll definitely look that up after the ama um but essentially decentralized identity is like the uh one of the holy grails of blockchain technology and i think that it can be done um i'm not sure i'm not an expert on this there's a lot of projects tackling this right now like proof of humanity idina i think there's one even built on bitcoin that's tackling this uh and things like ens which aren't decentralized identity but they provide you with like a way to identify your ethereum address um if you're happy with doing that so i think that uh i think it's we definitely do need a way to have a identity on i guess like ethereum uh not in a way that doxes

people but in a way that basically allows people to prove who they are essentially right so you know build an on-chain reputation so to speak and this would be useful for things like on-chain credit scores and all that sort of stuff so uh yeah generally long-term bullish on it but don't know enough about it to have like too too much of an informed opinion here so jan asked have the recent rug pulls with e2 staking pools change people's opinions that decentralization and trust the sense of pools is not essential but only a nice to have um this is a funny question because the rug pulls i guess that you're seeing or like the hacks or or whatever generally um that you're seeing out there this is just like the dark side to

staking with a provider in that once you kind of stay with them you're at the mercy of whatever they do even if you don't give up your keys even if you're like just delegating your steak to them they can do whatever they want with your steak they can get you slashed they can go offline they can do whatever um so from that perspective i personally and i'm in the position that i have more than 32 weeks so i can obviously stake on my own but i personally wouldn't use any of these staking solutions um even if i had less than 328 because to me the risk isn't worth it now if i was like if i had to i've had a gun in my head i would use a centralized exchange because they are fully insured right and i'm talking like coinbase i'm not i'm

cracking i'm not talking binance i would never touch binance with my with my heath but coinbase or kraken um i would kind of like use them if i had to uh but but generally i think that you know um you know the the kind of opinion around decentralization and trustlessness of pools not being essential but only a nice to have i mean sure centralized kind of staking is just by definition not decentralized in any way or trustless in any way because you're always delegating your stake to a third party or you're giving them your keys or whatever um and i totally understand why people do that if they have less than 32 that's fine um but i'm hoping things like rocket pool succeed at what they're trying to do and i'm hoping more projects kind of like pop up around that and you know more kind of like trustless

staking pools pop up that allow people to do this without having to risk their eighth so uh pg fastpants that's a funny name pj fastpants asks a question regarding one five five nine in sharding when we get 64 shards that increases capacity by 64 x does that mean if demand then also increases by 64 x that 64 x more east will be burned um i mean yes if demand goes up 64 x then i mean it's probably not going to be a one-to-one mapping but that more eth is going to get burned at the end of the day i don't think that demand is going to go up 64 x though because like i think a lot of the shards at the beginning are going to be ghost towns because people want to be on the same chart as other people and layer two uh

is going to be basically the la whatever the layer twos are going to be uh i guess using the shards for because shards are just going to be data availability layers is going to be where the the fear even is generated so you might have like the majority of these shards being essentially ghost towns where no fees are being generated then you're going to have a handful of them where lots of fees are being generated but yes the fact that we have more capacity and if the you know i guess like transactions um or at least the demand were to 64x then yes more each would be burned so that's like i guess kind of the straightforward answer to that and at the final one from ayanto 20 again here once sharing is implemented will that change anything for validator nodes we need more nodes to handle those

extra shards uh no i don't believe so it will have more you'll have more load on your validator because you'll now be validating the shards but you but the way it works is that um no validator is validating all shards at once you get randomly shuffled through them and you know over time you you just work through them but you only have to keep i believe the state for like one of them or parts of the state for one of them um vitalik's got a few blog posts around this and i believe he did a podcast maybe recently on this with someone uh or at least uh there was some kind of sharding podcast i think epicenter did one from dan crad from the ethereum foundation if you want to go listen to that um but yeah essentially there will be some extra load on the

validator uh nodes and and um you know more than there is with the beacon chain um but we won't need more nodes like i think there's already enough to handle the the sharding from what i've seen all right so i think uh actually one more here from knowledge fight in the in the kind of like discord channel here um thoughts on andre's fudd tweet earlier regarding 1559 and eth2 uh so yeah i mean andre posted this tweet if i go to the general channel here just let me scroll through where he said uh one five five nine and eighth two scare me i think their impact to the economic policy is understated don't know if good or bad but either way will be a significant change tread cautiously there's no substance in this tweet i mean i love andre but he didn't really

say anything here he just basically issued caution which is fine you should also always be cautious around new protocol upgrades especially major ones and we should obviously you know the only way to get like the results and to measure their their performance and the measure of their effectiveness is to get them on main net so i think that you know there's always a risk involved but i don't think andrew was saying much there so i i quite literally would love to think that he was spreading a little bit of fud um but i would love to see him actually expand on that tweet and actually say what his concerns are rather than just putting out like a tweet with no kind of i guess um i guess substance there and then knowledge fight said as a follow-up what you see as being our biggest challenges

to overcome before the merge um i would say that maybe not before the merge but leading up to the merge uh i think the biggest challenge would be just keeping maybe miners happy enough until the merge happens because there could be some perverse incentives there where miners say okay well i'm about to lose all of my revenue what can i do to kind of like screw with the chain or you know what can i do to kind of like extract the maximal amount of value here um or what can i do to essentially uh i guess like fork off the ethereum network and create like a another fork of ethereum where i can earn some free money so maybe that's something that we have to i guess pay attention to but other than that i think the merge should be pretty straightforward and things for most

people or the majority of people shouldn't really change because the way the merge works is that essentially we're just ripping out proof of work for proof of stake we're not changing anything on the eth1 network fundamentally we're just making it so that it's validated by the the staking validators rather than the miners so yeah i guess that would be the biggest concern leading up leading up to the merge there but yeah okay that's everything from my sheet and from the discord channel does anyone have any last questions from the audience otherwise i'm going to wrap it up for this week all right yeah i've just got one go go for it go for it yeah uh when 1100 main [Laughter] where's aaron he said he was going to be

in here has he been locked out of the channel maybe maybe i missed that in the in the discord channel um i don't know 1100 i'm i'm not going to say that 1100 is not going to happen because then if i'd say that people are going to come back to this and say uh what do you mean it happened and aaron was right you're wrong for those who don't know aaron's this guy in the prices channel who has been calling for 1108 for a couple of weeks and and today he said that oh no i'm actually all in underneath now with i've i've turned bullish so i'm like okay it's become a bit of a meme so it's actually pretty funny but yeah i don't know maybe we get there maybe we don't who knows i know if we go to 1100 i'll actually be buying a lot of

eth there that's for sure all right well yes thank you everyone for listening in on another ama here and for all of your questions i really enjoyed it uh if you just came in late or i guess for anyone who's missed it this will be recorded and uploaded to youtube tomorrow and we'll have another one of these in two weeks i'll make sure that i increase the capacity of the channel as well so people don't get locked out uh that's never happened before so bullish for the delegate ama series for sure so yeah once again thanks everyone i hope you have a good day night morning wherever you are let's all donate to get coins so there's enough money for premium uh version of discord yeah yeah actually i should look into buying that actually but yeah if you haven't donated on git coin generally go

do that yet not just to deadly way but to everyone just a reminder there but yeah thanks everyone i'll see you all in the next one