The Daily Gwei Refuel #3

Transcript

hello everyone and welcome to another episode of the daily grave refuel where we recap the last 24 hours in the ethereum and cryptocurrency space let's get into it for today so i guess the price here of eth has been a bit stale today um you know it's that's expected after what we saw over the past 24 hours or so where the prices came down i think you know right now the volatility has kind of subsided a bit and and the market's just just trending sideways for now you can see that on on the chart here it's been trending sideways a little bit i don't expect any fireworks for a little bit here um maybe i'm wrong but you know it seems the market needs to kind of cool off you know people need to be more confident again and then we might head further up but yeah

not sure what's going to happen there so we'll keep an eye on that one uh you know same thing for bitcoin here you can see still just trending sideways and then we have the default pulse index as well which is is doing similar things so you know i guess in times of when the market kind of corrects and dumps down it tends to correlate a lot more than it would if it was going up so you know normally correlations decrease in the bull market and they increase uh in a bear market but you know even the short term moves the correlations are there right we all see what happens when when bitcoin dumps right uh the rest of the market tends to follow so but that's just a short term for now and i don't expect this to to be anything like the bear market i

i as i said yesterday i still think we're in this this bull market and i still think we have a a ways to go from here speaking of i guess mark the market and things that can affect it we had this really insane news come out just a couple of hours ago that um the block put out so they put out an article that stated that the chinese police have seized 4.2 billion dollars worth of crypto from the plus token ponzi so for those who don't know this is a pretty big ponzi uh this is actually some people think that this ponzi was responsible for the 2019 run-up we saw in bitcoin and ether where uh where bitcoin went to i think it was like you know 14k or something like that and ether went to the high 300s uh and then you know through some

on-chain analysis people actually saw that uh you know the timing was was was you know uh matched up sort of thing uh so you know i haven't looked into that lately but you know considering the the kind of the amounts that were sent to this ponzi it is plausible so you can see here that one percent of all bitcoin about 200 000 bitcoin was actually associated with this uh plus token ponzi 833 0008 which is 0.73 of the supply you know there's a bunch of other coins here as well like 1.4 million ltc uh 26 uh 27.6 million eos uh for uh six billion doge which is actually i think like five percent of the total supply of doge which is quite insane um so yeah

and you know this isn't actually new i think from from what i dug into it uh we can actually see um that this news is is in particular uh probably not fresh i think it's actually about six months old it's just been now confirmed that the chinese police are inc are in custody of these assets i think before it was kind of known because you know the funds stopped moving or they were being like you know some funds were moving and they were washing through different addresses you know you can see here that uh you know this this person's claiming that the address on ether scan here you know one of the addresses associated with them hasn't moved their coins in 140 days which is which is quite a while um so yeah still developing story i think

you know we don't really have a clear picture here people think you know maybe this will lead to a dump in the prices because the the government's just going to offload these coins now that's not usually how these things work um you know the queens will either i mean the way it works in the us is that when this property seized from criminals it is auctioned off in kind of private auctions on on secondary markets this is actually how um investor tim draper for those who who know him how he got access to a large uh chunk of bitcoin back in the day and just recently we we saw that the silk road bitcoin is going to be auctioned off in the same way i'm not sure how it works in china it's probably totally different given uh given us china but definitely we'll keep a keep an eye on

this and see how it's going and see how it evolves next up was so i we obviously spoke about this yesterday about how there was the uh the compound liquidations of over 100 million dollars due to the diet price going to 1.30 on coinbase so there was actually a lot of discussion around this on twitter today it was kind of hard to follow there's a lot of back and forth uh we had everyone's favorite green frog chain link guard in a lot of the threads because you know this was an oracle issue right where the oracle reported this this kind of number that it shouldn't of been able to report to compound uh you know it functioned as it should have but you know there should be a kind of like an aggregate feed that gets fed of the price

so that it doesn't doesn't just come up as a dollar 30 right you know you could have 10 different feeds and if if nine of them say you know die is a dollar oh one one of them says it dies a dollar thirty it'll take that into account and kind of like average out the price and this is what maker does with their oracles this is what chain link does of course as well so you know we had robert lesnar put out a kind of tweet about it and there's a there's actually a blog post here um uh not a blog post sorry a forum post where they went through what happened uh with with compounds oracle and did some analysis here so i'll leave the link to that in the description on on youtube if you want to go check that out uh same with all the other things

i'm talking about today um you know and then robert leschner who's the ceo of compound and the founder of compound for those who don't know he went on to say that only 124 out of 225 000 users were impacted uh there weren't any undercollateralized accounts and and all the markets seemed healthy now i mean i get that but at the same time i think what he's doing is he's using ethereum addresses as a proxy for users here which i don't think is very accurate we saw the volume that was liquidated right i think in d5 what matters more than anything is volume and liquidity more than individual users this is a pretty big blow uh you know as i mentioned yesterday there was one uh address that got hit for 40 or 50 million dollars and it actually

turns out that that address might belong to celsius the the centralized lending platform um you know i don't know that for sure but from my in you know investigations and talking to a few people it seems like that's the case so yeah as i said chain link god who's a huge chain link advocate on twitter you've you've definitely seen him if you're on twitter uh he he's you know he was on the on the attack today about oracles he went after basically you know compounds oracle uh uni swaps uh you know oracle i mean using unisop as an oracle for example and basically saying that you know rolling your own oracle solution is is not the best thing to do you should just use you know standards that we already have like chain link and things like that

now you know i tend to agree with him i i'm one of those people who actually think that chain link is is great it's a great project i think what they're doing is really important you know oracles in d5 uh are extremely important you want a strong oracle for exactly this reason you want the prices to be reported correctly because if they're not you can have these things happening within different d5 protocols that are that are quite uh you know not not expected basically so yeah i mean i i expected this from chandling god actually said to one of my friends yesterday i'm like i can't wait for for chandling god to see this because he's going to go on the attack because he'd actually been warning about this for weeks uh with compound basically saying you know what the oracles that compound users aren't

great and they are not going to function as expected and you know he was he was right credit where it's due uh there was another kind of person on twitter called defy god uh kind of uh you know putting out his thoughts here saying that he's very angry over these liquidations because they could have been avoided um you know by not using just coinbase's price feed uh and using chain links oracles and things like that and again i i agree with this to an extent um i really think that uh if you you've got a d5 app out there and you need an oracle which pretty much all of them do you should you should seriously consider chain link and i'm not saying this because i have you know i own link bags or anything like that i actually don't own any link i just think that you know after seeing

what's been happening in this space and how important oracles are uh you know and how i've actually interacted with the chain link team myself a lot as well i know them you know i've spoken to them as part of my role at set i trust them and you know you might get turned off because of the the link marines on twitter or whatever but that's just an unaffiliated kind of like i guess you would call them army of people that obviously you know made some money on link and are really excited about the project because of that but that doesn't take away from the merits of the project the project is sound it works uh i actually speak to people running nodes and it works really well so yeah when you think about that uh and you take that into consideration you know i can i can see their point of view here

you know hayden also put out a tweet uh about oracle's 2 um and he said that from from what he heard the compound liquidations would have been much worse without the addition of the uniswap protocol uh t-wop compound oracle so what teamwork stands for is time-weighted average price so what this does is it basically averages out the price of of an asset over trading pair basically and uses that as the oracle price i'm not sure exactly how uni swap does it but uh that's that's generally how it works um you know he goes on to explain that while the uni swap oracle price spiked uh sorry while the coinbase oracle price spiked uni swaps uh price did not increase much uh

causing the most extreme prices to be to be rejected uh and of course there was some discussions around um you know from chandling god again um and and saying that you you know using unitop as a price oracle is not the the greatest way the greatest thing to do it's an insufficient solution uh when you want to secure real value and things like that um now there's a bunch of other discussions in this thread i'll link it definitely in the youtube description as well for you to check out i won't go won't go into it all today uh there was an interesting post on the eth research forum uh from uh his username mikhail mka al in the continent maquette mikhailon sorry i'm here talking about um an executable

beacon chain and this is part of the eth1 to e2 transition so it actually gets quite technical here but the tr tldr is that he's proposing an eighth to execution model that's alternative to the executable shards with support for single execution thread enshrined in the beacon chain now as i said this is very technical but this is actually quite an important post and and quite an important thing to think about because as i said it plays directly into the eth1 to e3 transition which is in my opinion you know we have phase zero going live with the beacon chain which kickstarts the e3 chain that is probably the most important but i think the eighth one to e2 transition is is pretty much just as important it's

going to be just as a big of a deal if not a bigger deal because we get to basically get rid of proof of work and um you know use proof of stake for eth1 as well now so yeah go have a read of this if you're into the more technical things i'm not going to try and you know describe it here because as i said it gets very technical and there's a lot of discussions underneath here as well so as i said i'll i'll link the uh the post in the description you can go check that out so for all our budding uh eth2 validators so if everyone's looking to to stake on eth2 you've got your ethernet deposit contract you need to set up your validators now there are some amazing guys that have been put out by summer isat here uh i'll i'll link this uh it's on

his medium anyway uh so he's got three guides so far with the fourth one coming out soon uh basically he's got the guy to staking with eth2 for like the lighthouse client from sigma prime he's got the one for nimbus from status and he's got one from for teku from consensus and then he'll obviously he's obviously going to have one uh from prismatic labs uh for for prism so these guys are are quite detailed like i think they're about 20 minute read each and he goes like in depth basically like really in depth uh from zero to two thirty two uh thirty two eighth basically uh staking uh and he explained you know he's got all these amazing diagrams here he's got a ton of different things here like step by step each step you need to

take to get this all set up right all the commands you have to type in everything like that so if you if you are stuck at all in your journey to setting up a validator right and you don't understand what some of this stuff is i highly recommend checking these guides out and giving them a read they will help you a lot and as i said he's got them for the three major clients and he'll have it for the fourth one soon maybe he has it now if i refresh the page here uh yes he does okay that was published three hours ago i hadn't refreshed yet so he has the prism one as well so whatever client you're running on eth2 he's got a guide for it so definitely go check that one out and speaking of eth2 staking as well dap node has a mainnet package that's ready

basically their prism package is ready now so you can go check that out as well for those who don't know dapnode is basically an operating system that you can run on on your hardware that lets you basically easily set up different nodes and different kind of like infrastructure for for ethereum and for other networks as well so you can set up like eth1 nodes and now e32 nodes i used them a lot for the eth2 test nets and it was it was seamless it was really great so yeah definitely go check that one out as well all right so another a bit of news that came out that uh you know i hadn't heard about this project uh for a while but basically uh there's a report that facebook's libra could launch its first stable coin in january which is a lot sooner than what i what i kind

of figured uh you know we first heard about libra like a few months ago and everyone was just like wow facebook's gonna like you know kill the game here but then what ended up happening was that the regulators and i guess like especially in the us were like you know they're not very fond of facebook facebook doesn't have a very good reputation with regulators so when they announced this the regulators were like oh no we can't let facebook issue their own currency this is you know this is not on which you know for better or worse that's what it was um so you know then they had people pull out of of the libra association and things like that uh you know they had a bit of a bumpy start there but it seems like they're still chugging along and they want to to get this out there

as soon as january so yeah we're gonna keep an eye on that there's not much meat in this article here i think it's just uh just an announcement this is gonna be kind of uh coming in january so you know we'll see what happens january is only two months away so much sooner than i expected all right the last thing i wanted to talk about was so for those who don't know their their centralized exchange ok x uh had paused their withdrawals for quite a while so no one could get their crypto out of the exchange and this was due to one of the co-founders being questioned by police there was a ton of fud around this um there was like you know he's under arrest like he's going to jail or everyone's coins are lost you know the

usual the typical stuff um but they actually resumed withdrawals yesterday um and they've seen a quite a quite a big outflow of of bitcoin specifically almost 30 000 bitcoin has left the exchange and we saw the same thing happened when the bitmex founders were charged and a few of them were arrested where the withdrawals still went through um they weren't they weren't paused but there was like a withdrawal window that they missed because bitbex only does withdrawals like once a day and they actually do do them more frequently now but what ended up happening was that you know we had a ton of btc flow out of bitmex because of this and it's only natural right i i mean i personally if i was using a centralized exchange and then this was

happening with it i wouldn't keep my coins there if i could get them out like why would you um so yeah i mean just seeing this chart from glass node here showing it uh it being a pretty huge withdrawal from ok x which is one of the bigger the centralized exchanges uh it doesn't really come as a surprise to me um what's what's more surprising there's still 212 000 bitcoin in there like as i said i i if anything like this goes on i would be getting my coins out and you know this is why exactly why i don't even use these exchanges anymore it's because they have this risk associated with them uh you know when you're using decentralized finance protocols especially something like uni swap like an exchange protocol that's fully decentralized you know no one can can take your funds here right

so yeah i uh i i don't know tons of people still use centralized solutions and that's fine it's just not my not my cup of tea for sure um but yeah so and in general i think uh for those who who who follow and who like to follow on chain stats and on-chain data i actually wrote about this in the daily grade today as well um on-chain data is like really rich right because we've got no base layer privacy you can get like a ton of insights from it and one of my favorite websites to actually go on is uh glass node so they have this amazing studio on here so studio.glassnode.com for those listing on the podcast you won't be able to see it but i'm just quickly showing it here um you can see here they've got metrics for like you know new addresses active

addresses addresses with balance over a certain amount so if an account has you know more than ten dollars of of bitcoin or ethereum that they show you that and these insights can can kind of like let you see you know if we're in a bull market if we're in a bear market is there going to be a price move there's tons of info here uh now i will say that um you know there are most of uh the the best insights are behind you know subscriptions you have to to pay a subscription uh you know this isn't an advertisement or promotion for them by any means but they have a few free insights you can go check out as well and they're not the only data kind of provider as well you've got coin metrics you know into the block um there's there's a bunch of others like this there's

actually a lot now uh out there that i i that i tend to use and they're just super interesting to look at so definitely go check that those things out all right that's it for for this episode everyone thank you again for listening uh we'll be back next monday to go through all the news that happens over the weekend of course uh don't forget to subscribe to the podcast the youtube channel and the newsletter and you know and and follow on twitter and join the discord uh we'd love to get some some some more conversations going in the discord if you need help with anything be sure to join you can uh you know talk with everyone else that's in there and we'd love to see you in there so yeah thanks everyone for listening