The Daily Gwei Refuel #2

Transcript

hello everyone and welcome to another episode of the daily gray refuel where we recap the last 24 hours in the ethereum and cryptocurrency space today's episode is going to be packed so let's get into it so as i guess everyone knows at this point the crypto markets had a bit of a tumble unfortunately over the last i guess 12 or so hours uh it was funny because yesterday i was saying that you know just five days ago eth was 470 and you know it was up in the 600s but seems like we went almost to 470 over the last few hours again and have kind of bounced back up to 520.

uh you know i think this came off the heels of one i mean we were due for a kind of correction in the market uh after going up so much especially bitcoin like it had gone up for so many weeks without any kind of correction uh and i kind of felt it was it was coming i mean easy to say in hindsight of course you know no one can predict the future but i'm not not really surprised by this this fall here and then i think it was exacerbated by the uh kind of um i guess you could call it fudd or like uh you know concerns around the us banning self-hosted wallets uh so self-hosted crypto wallets which i'll talk about uh in today's episode as well um yeah so we got bitcoin here did the same thing as kind of eth i think

you know pretty similar charts here uh and the d5 pulse index is is pretty similar as well here so yeah not a great day in the markets but i don't think it means the bull market's over or anything like that i just think that it's a it's a you know healthy correction that was needed uh which actually resulted in a lot of liquidations today so you can see here that this is actually over 100 million dollars worth of liquidations happened on compound today uh because of this this dump but it wasn't just because of the dump it was also because of the fact that uh dye actually ended up trading at a dollar 30 on coinbase uh for a little bit uh which you can actually see in the chart here so the usdc pair kind of like spiked up to one

130 and then came back down of course now compound actually uses uh coinbase as one of their oracle providers which you know it wasn't the only one that they use but it's one of them which means that the the die price on compound would have been higher than it was everywhere else because it was being dragged up by this 1.30 kind of outlier here um so you know this is not a new problem with oracles or anything like that there's always going to be these outliers that you know if other kind of services are relying on them they're going to affect the price so we saw some huge liquidations here we actually saw i think one of the biggest liquidations ever and giorgio's gives a great breakdown here basically uh this is how it worked here

they drew you know all these dye from from uni repainted into compound compound received the seed eye unwrapped the seed eye to die repair repaid the the dye uh to uni and then keep the remaining sea dye die using a liquidator bot so you know this is a big payday i think they got you know three milli three point five million dollars of cdi worth uh out of it and if you go to the ethereum address here we can actually see uh the the transaction here so yeah it's crazy amount of amount of money for this liquidator and for those who don't know when i say liquidator i'm kind of referencing liquidator bots or you know human liquidators who hunt for these opportunities right they see that a position on compound or a maker has gone underwater

they're like okay it's time to time to liquidate this person to keep the system healthy and everything like that but also to profit of course so that's what we saw kind of play out today here but yeah as i said it's really crazy because uh you know people are saying it's like an oracle attack um you know there isn't very there isn't like a very clear deep dive yet on what exactly what happened i'm pretty sure we'll get that in the next few hours uh but for now i don't know if it's an attack per se you know it could have been someone uh you know pumping the price up to a dollar 30 on on on coinbase's die usdc pair and then getting ready to liquidate positions that they knew that they would they would they would be able to liquidate in this case

um but yeah i'm not convinced yet i'm gonna wait on the internet report here um and what this did do actually as well was it it resulted in a lot of dex volume for the last kind of 24 hours so you can see here and this was updated two hours ago it's probably more than this 1.2 billion dollars traded in the last 24 hours a lot of this volume went through unisop of course uh the lion's share of it basically brings the unicorn's volume for the last seven days to three billion dollars um so yeah this is this is a pretty big event uh as i said there's more kind of news coming out about it as time as the next few hours go on we'll probably cover it in tomorrow's daily gray uh refuel episode so and what else ended up happening and i put out this little

funny tweet here is that the gas prices on ethereum spiked again uh and this wasn't just due to compound this is in general when prices are very volatile especially to the downside people are trying to close off their positions right so if they have an open leverage position where they're at risk of liquidation on chain on ethereum then you're going to pay whatever gas for you need to pay to close out this position uh you know i have been in in similar positions before not so much because of like leveraged trading uh you know eth or whatever more so stable coin farming but you kind of get scared right when you see the prices drop so rapidly like we saw happen right we saw eath go from 600 to under 500 in a few hours i think it was um that's scary and then you think okay

it's better safe than sorry so everyone just ends up paying all these all this money to to you know protect their positions and on top of that there's a lot of trading going on because of the volatility so all the on-chain you know dexers are seeing a lot of volume there's a lot of art opportunities popping up and that's why people will pay more gas fees as well so i don't expect these gas fees to persist i mean you can see here they're already down back into like the 80s and 70s or whatnot um you know this is just like uh this isn't like you know the d5 summer yield farming craze where it was persistent this is just naturally going to happen when we have these these moves in the market basically another interesting thing i saw today was from antiprosynthesis this was really cool actually

so for those who don't know uh it's actually encouraged that when you set up your eth2 validator that you run an eth1 uh full node as well you don't have to you can use third-party providers but it's encouraged that you do and it actually turns out that a lot of people are doing it so you can see here on the chart uh you can see on towards the right and there uh you know when people have started spitting up these eth1 nodes because as i spoke about yesterday you want to get your eth2 validator set up before december 1st so we're actually seeing a huge spike in eth1 decentralization right now which is really cool and and anti-pro synthesis um kind of points out that ethereum's node count is now almost at parity with bitcoin which is a pretty big deal right bitcoin has pride themselves on running a full

node and and being decentralized because of that but you know ethereum is almost is almost up to that and you know in general ethereum hasn't got like a low kind of node count in uh you know it's lower than bitcoin but it's not you know too much lower but now we're pretty much we're probably going to surpass it given how many people are setting up validators right and i'm going to be setting up these eth1 nodes um and yeah if you want to check out uh this for yourself you can go to ethernodes.org it's a really cool website to track the nodes and like the distribution between them and the history tab here will show you exactly what is in anti-protein prosynthesis uh image there so yeah as you can see as i was saying you know i mean i don't think these dips are

accurate like these node counts are there it's a kind of a crude way of getting node accounts it's just scanning the network to get them and sometimes like they dip due to due to you know number of reasons um but i don't you know obviously you see how quickly they come back kind of like a v-shaped recovery right so but yeah this is the highest it's been since since a while i mean this doesn't go back too far but you know i'm willing to bet this is this is some of the highest uh node count we've seen on the network and that's simply because the incentive is there to run this sort of stuff so there was a really bullish tweet uh kind of posted by spencer noon today and he actually posted this just before the market started dumping i think uh you know 3 39

a.m my time i woke up and the market was already kind of like cooling down and then you know went on to it to be a big dump there but basically what he does is he walks through kind of like the on-chain metrics that are showing that we're in an eighth bull market so some stuff like ethereum uh you know daily active addresses which is a figure that's nearly doubled year-to-day uh you can see look at that that's that's crazy growth right uh you know you know and coming out you know january february looks like it was kind of like um maybe not so much february like basically until mid february it looks like it was taking a dip but then it just exploded up right and it's continued up and now we're kind of going sideways but you know as the market heats up again i

think we're gonna we're gonna see that kind of like um continue to can you improve there uh he points out that ethereum's fees dwarfs you know everyone else's fees in terms of like bitcoin and like every other chain it's not even worth mentioning the other changes their fees are quite low so if we just look at bitcoin it's pretty crazy and it's even crazier that uni swap's up there right with with bitcoin too uh the gas being used on the network you know it's that record highs another bullish thing the network's being used like extremely you know extremely frequently there's more than 16 billion stable coins uh issued on ethereum which has gone parabolic i mean everyone knows about the growth of stable coins this year it's just been it's been insane uh cumulative there's almost 1 million defy users now i do want to caveat this

with by saying that this metric just tracks um a bunch of basically interactions with different default apps it doesn't track every d5 app and it kind of like misses a lot but it's basically has an address interacted with a smart contract or a default app yes okay add it to this cumulative total uh but it's still cool to see the growth here and you can actually see it kind of like go up much much faster as we came into d5 summer which makes sense right so it's cool to see that one it goes into tvl right at the time there was more than 14 billion dollars locked in ethereum protocols um or on ethereum which is really really cool for almost three billion dollars with a bitcoin on ethereum now which is just insane like most of that came to ethereum just this year as you can see

from the chart right it wasn't really a thing last year and now it's crazy i remember at set we were talking about you know wbtc liquidity earlier in the year and we're like you know we need to get more wbtc liquidity because we wanted to do more um wbtc sets and it was really hard you can see for a few months there or even pretty much a year uh there was just hardly anything and then it just exploded and now you can't get enough liquidity right there's so much uh talks about dexter's as i just showed before you know decks volumes are are exploding you know it's been the year of dexa's for sure on ethereum and then you know it has a link to his newsletter here i actually highly recommend that you go subscribe to this newsletter from spencer noon it's like an on-chain

analytics newsletter uh the link to the thread is going to be in the in the description of this video along with the links to everything else uh in this video so definitely go subscribe to that now i mentioned at the start of the video that there was a bit of drama around uh self-hosted wallets today um so basically what ended up happening was that you can see brian armstrong put out a tweet thread about rumors that he heard that the us treasury and secretary mnuchin i think is say how you say his name uh we're planning to rush out some new regulation that would basically make it so that centralized exchanges institutions and everything around crypto would have to uh kyc aml and make sure that a user owns their

self-hosted wallet so the wallet that you own your own private keys to they have to make sure that you own it before they let you withdraw to it so i mean you already have to do kyc and aml when you go on these centralized exchanges of course but these new regulations would basically make it so that you'd have to go that step further where you're like okay i own this address and attest to it but there's a number of problems with that i won't go through all of them because brian does a really great uh job of breaking it down in his thread but i think for me i mean i wrote about this in the daily gray i kind of hypothesized that in the delegate newsletter sorry i kind of hypothesized that this could be a stepping stone if it does go through to those banning self-hosted

wallets all together right you know you can think of a self-hosted wallet or your personal wallet as like cash right and government like fiat cash and governments have been trying to not ban fiat cash but like get people offered for for for many years now simply because they can't track it right it's very very difficult it's not impossible to track cash whereas they can track the entire banking system right and all the digital system going on there and they're happy with that whereas the same thing applies to crypto where they can't really track a lot of the things that are going on in the crypto economy because it's it's all self-hosted right no you know you can be anonymous because you don't have to tie your ethereum address to any identity stuff like that yes they can use chain analysis software but

that's not going to tell them you know too much depending on who the person is and and you know it's more work basically than just you know the burden becomes for them to do it the government to do it instead of the exchanges to do it so it becomes a lot of work and it's not very scalable it becomes very hard to kind of enforce these things so i think that is a stepping stone if this goes through um would be really bad but i i doubt it like i don't see a world in where something like this goes through it's pretty crazy when you think about a banning self you know self-hosted hosted wallets but i guess if they did do that it wouldn't really matter i think it's unenforceable the ban i think it's like copyright infringement right like people download things all

the time download copyright materials it's it's extremely hard to police that right there's hardly any individuals that have gone to jail over it have gotten fines for it or anything like that it's mostly like you know the enforcers go for the suppliers and the big the big parties as part of it they don't go for the individuals so you know you could still kind of like have your own wallet still interact with d5 and ethereum still do a lot of things it would definitely suffocate the d5 space i think because a lot of d fight actually benefits from these centralized players those market makers there's centralized exchanges using you know people uses arbs between that and and defy and there's a lot of centralized players actually getting into d5 as well um not just market making but generally

providing liquidity and being part of the ecosystem so this would hamper their efforts as well so you know i hope this doesn't go in i don't i don't really think so and the the um the the administration is changing of course to a biden administration and munich is not going to be uh you know the the the secretary anymore uh from my understanding so yeah i i don't think this is something to worry about just yet but just know that you know this can happen at any time and any government can do this uh that's what we're fighting against basically all right last thing i wanted to talk about so yesterday i spoke about uh how you know wyone is going on this kind of merger spree so they they or acquisition spree i should say so they merged

acquired pickle yesterday and i spoke about that yesterday's episode if you want to go check that out i apologize for the audio quality on that episode actually it's a bit choppy but you can still hear it but today they announced that uh yearn y and sorry and cream v2 are emerging now you know i don't really know if these things are mergers or anything like that because the protocol that they're merging with still retains their token so cream still has its own token it's not like creams okay we're giving up our token we're just going to be part of the young ecosystem and we're going to use wi-fi or wi-fi as our token that's not what's happening here what's happening is basically that they're kind of like merging in the sense that they're trying to like increase the tvl of both platforms uh you know share uh kind of like create

these synergies of like sharing liquidity and things like that and bringing cream in as like a lending platform for for why earn um it's it's a bit it's a bit weird i i think i think what i mean i wouldn't say weird maybe i think what wyoming is trying to do is they're trying to absorb as many kind of quote-unquote competitors as they can uh they're doing the classic mergers and acquisition spree where acquire you know competitors merge with uh with apps that are synergistic for for your own platform and do that really aggressively and really quickly right before someone else can do it i kind of i get it i get it you know that strategy might work uh for you uh you know cream isn't really a huge lending platform i mean it's growing but

it's not like a compound or an rv right if that happened that would be big news but i doubt that would happen right you don't you know it's very hard to acquire or merge with the bigger players usually you go for the smaller players and you hope that they can move faster to disrupt the bigger players and that you know you have a stake in that as well so yeah i think that's what we're seeing here uh i'm curious to see what the next wiring merger is uh you know there there's smaller yield farming protocols out there like harvest and yaks that uh that they might go after there's uh there's a few other things like options platforms like hedgic for example you know molly and andre molly the the founder of hedgic and andre did some work together for a while but i think that relationship fizzled so

i don't know what's going on there but yeah um go i guess go check this article out i mean there's not much here there's a few different things like andrea likes to keep his articles sweet but yeah i've got all the links to everything that i spoke about today in the description anyway so yeah definitely go check everything out all right i think that's everything for today that i had thank you for tuning in we'll be back tomorrow with another live stream i'm sure there'll be plenty of talk things to talk about tomorrow as well so don't forget to subscribe to the channel and definitely go subscribe to the newsletter and go follow the delegate on twitter to keep up to date with everything thanks everyone