NFT madness, dYdX's insane growth and more - The Daily Gwei Refuel #183 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delight refuel where recap the latest news in ethereum ecosystem i'm your host anthony sosano and today is the 10th of august 2021 all right everyone let's jump into it so i'm sure you've all well aware uh by now of the nft mania that is going on the jpeg mania right like all the digital collectibles and art that have been selling for ridiculous amounts lately past couple of months really the menus are kind of really taken off and people are saying you know jpeg saved the bull market and all that sort of stuff and it's funny i put out a tweet here saying um because it was pumping last night i said eat pumping on the news that everyone is stuck in illiquid jpegs and obviously a lot of people are speculating on these things uh using their eighth to kind of like

buy buy into them and then sell backing back back out of them into ethan and things like that um and you know whenever eth moves it's really funny to see uh i guess kind of like people being like oh well no i need i need to tell my nft i need to get back into eighth so that i can ride this eighth pump up and i see like uh the activity kind of um spike there and i see like tweets coming out and it's just funny like people start making jokes and things like that um but you know with the nft stuff right now i just wanted to talk a little bit about that i think a lot of it is just starting to remind me of like the i guess defy summer the original one last year and also ico mania from 2017 where

there's not much originality anymore a lot of it is just clones like a lot of these projects are clones of like crypto punks and a lot of them are clones of like other projects and really just harping on the mate with the mania right where they're able to get attention and able to kind of like raise money or at least make money because uh every there's like a mania around it and i've seen this play out like plenty of times with different kind of markets you know icos in 2017 perfect example but even indeed fly someone with all the food forks for those of you who are around back then where people were kind of like um forking different kind of protocols or different kind of like things um a lot of them were forking uh yearn and basically uh attaching like a food food emoji to it like i mean it was yam

there was sushi and then there was like all these others like pasta and and like cucumber whatever there was all these really low effort clones and i think that's kind of like what we're seeing play out in the nft space right now but there is definitely a difference here where the nfts actually have like some art attached to them right uh whether that be like uh rarity attributes with with different kind of like art styles or you know i'm sure you guys have seen like the penguin stuff on twitter lately and people start to form an emotional connection to it so i think even if a lot of these things end up being worth very little once the mania subsides people are still going to use them and still going to have them like in their in their gallery or in the metaverse or whatever

and they're still going to have an emotional connection to it i believe it's just funny how that works with something like nfts and how that's very distinctly different to i guess like erc20 tokens and trading in and out of those sorts of things but at the same time you know i've mostly avoided uh kind of like speculating within the nft space because i think that right now it's it's definitely in a mania it's definitely very hard to kind of i guess i mean it's easy to flip and make money if you want to do that if you want to be involved with that um but usually when it's that easy to do it it means like the end is now of the mania i remember thinking back in d5 summer uh basically you could farm anything and like you'd make a lot of money from doing so

because the apy was high but essentially and you know i guess like a few days later the market topped out for def for for those kind of like d5 forks and coins and we saw like a massive dump happen and you know even the even though like uh the legit ones like i think wi-fi went from like 50k to like 7k in a month i mean are they fell a lot i mean a lot of them fell a lot in value so even they weren't spared by the great like cleansing here and i remember feeling that same way in 2017 where i mean i was i was definitely a noob in 2017 but i was thinking to myself wow like i can't lose on these icos right like all of them are going um a 10x from from the time that they do the ico to the time that they're listed

on exchanges and it was actually very different back then because the only decentralized exchange was etherdelta there was no unisop or anything like that and if the delta was very slow and clunky and it was an order book exchange and all this sort of stuff was very different so you had to actually rely on centralized exchanges listing these things for them to for them to kind of pump after the ico and what a lot of people did would they they would actually start researching you know what chance each of these things had of listing on centralized exchanges based on like their vc investors and things like that so there's a lot of like there's a science that that came out of it and people were you know for a little while making money off of it but then eventually it topped out because it just got too easy like

the money was flowing just way too easily i'm not saying that we're there with nfts yet but i'm seeing the same kind of signs but at the same time it is distinctly different in the f in in that like um there's obviously like art attached to it and a collectible aspect to it and like an emotional attachment but i just like i'm avoiding all of that personally but i don't blame anyone for wanting to play in that i mean it's a good way to stack more heath if you play it right at the end of the day because a lot of this stuff is priced in eath and you go on open c buy and sell stuff like that and some of the earliest buyers have made like a lot of money i mean you know if you kind of like go back and and look at

like the most valuable nfts uh like auto glyphs uh crypto punks uh squiggles even like a lot of these things uh are worth like a lot more like like 100x more in just a few months than what they were but i don't expect that to continue because what ends up happening is that people see that and they're like oh wow like i could have made 100 x on that well i'm going to chase the next best thing and there's diminishing returns each time that happens and eventually reach a point where the new money coming in basically to these things it basically stops completely or like doesn't outweigh the amount of cell pressure there is the amount of people wanting to exit and you have this kind of like crash that happens so i do think that the nft space will eventually kind of like come down pretty pretty

brutally because there's never enough exit liquidity for everyone um but i don't you know i think some of them have lasting value i obviously think things like crypto punks have lasting value auto glyphs and i don't know about squiggles like i don't know anything about that project but like some of these really unique projects that are tied to either like um you know artists or tied to some kind of history or whatever they're definitely gonna have staying power and maybe some of these things like even maybe the penguin stuff has staying power i don't know it's it's too it's too hard to tell when uh there's a mania because when there's a mania you get like a false sense of security because everything's going up at once and you think you know i can't lose whatever as i've just explained so yeah i just wanted to talk a little bit

about that for today because i've been seeing people talk about it on twitter and things like that and it's been kind of a theme that's been playing out and actually on on a positive note as well i actually uh i think it's quite funny that uh now that one five five nine is in the nft mania is like so positive for eth because it's burning a lot of eighth i mean some of the the top kind of burners of each is like open c axi infinity random nft projects like every other day and and that's like a positive thing for the entire kind of like eth holder ecosystem so i guess it's like a win-win for now but then when the market inevitably comes down again sometime in the future i don't know when that's going to happen it could go on for another six months who knows right but

when it does eventually come down again uh i i think we're definitely going to see the reverse of what we're seeing now so maybe just like a warning there uh but on the on i guess like the other positive note of nfts eric connor put out an interesting tweet today where he said people are focusing way too much on the price of nfts and are missing the bigger picture the real power is that ethereum can improve art just like it improved finance the key areas of improvement are fractionalized ownership and near instant price discovery uh so we actually discussed this eric and i on the inter ether podcast that we recorded today um but like these two things i think are something that i've mentioned on the refill as well before where you know this fractionalized ownership this collective ownership that you can have and i gave the example of the

zombie crypto punk via party bid the other day uh is very unique to crypto and you can't you know it's very hard to fractionalize anything or pretty much impossible to fractionalize a lot of the i guess like collectibles and and art within you know real life like physical objects could you imagine trying to fractionalize a painting right how would you do it well you'd have to issue derivatives against that painting and say you you issue 100 shares against it and then you give 100 shares out to kind of like each person and say okay well you have shared ownership of this thing now but that is like completely centralized there is still someone who owns the actual painting maybe it's in a vault somewhere and whatever like you don't actually own a piece of it you own a derivative of it or like an iou essentially um based on like

a price ticker or whatever whereas with fractionalizing nfts you because it's a digitally kind of like native object you can actually split it up into 100 different digital pieces without losing the integrity of the original piece because you can actually piece it together at the end of it and you can prove this collective ownership with all these people and it's actually true ownership it's not just an iou it's not a derivative so i think that's really cool and also near instant price discovery because we have global fluid and very liquid nft markets now where and nft marketplaces like openc where you can get uh very uh a very quick price discovery for these things and you can oh and you can basically appraise your art or appraise your nft collection very quickly for something like a physical object it's

much harder like i know you know i've sold some of my pokemon cards in the past um like doubles and things like that and it's so annoying having to go to some of these online kind of like marketplaces or go to like ebay or whatever and kind of like scroll through and look at the prices and say okay well is that a legit price or is that like something um that someone just come up with and then there's other kind of like um websites uh like there's one that's famous called troll and toad i used to go there and look at their prices but then you think you know am i getting like the best value for my money here are they under quoting whatever and it was just like a much slower and clunkier process whereas with um with nfts on ethereum it's much much

faster for these price discoveries so i think what eric probably meant to say here was like people focusing way too much on the speculation of nfts whereas you know focusing on the price discovery aspect of it is definitely very important um and and i think is why nfts are going to transform art transform collectibles transform gaming just like d5 has transformed finance and it really is only the beginning of it i think we're gonna get much bigger from here but i do kind of like think that we're obviously in like a mania and i think that there's too many clones right now not enough innovation i would love to see more innovation in the nft space and and more iteration on on things rather than cloning what you know might have succeeded in the past and may not succeed into the future but that's just how these things go when the

money is easy you get people coming along they they create new projects they do new things and and you know they make the money while while they can but eventually kind of like that kind of runs out so yeah i just wanted to give a few thoughts around nft is there um but on that note i'm going to move on to the next thing here and this is the infrastructure bill i think this is the final thing i'll be saying about the infrastructure bill for a little while here so what ended up happening was they needed a unanimous consent to uh pass the compromise amendment uh that you may have seen being talked about on twitter for this bill and what unanimous consent means is that all senators needed to basically vote for it if even one objected then it would would fail and and the original

um language in the bill would go through so what ended up happening was that one senator called uh richard selby shelby objected to the amendment um because he didn't get his own amendment for a 50 billion dollar increase in defense funding so he's against all the others which is just hilarious because if anything the u.s does not need any more defense spending but anyway um and then unless he changes his mind that's it the compromise amendment is dead and he's also retiring it in the beast turn so i think chain-link god put it really well here and i'm not gonna rant too much about this but he basically said so this is what it really comes down to one boomer already halfway out the door screwing over everyone else over something completely unrelated it's like a pouting child who takes away everyone else's toys because he didn't get the

mcdonald's toy he wanted um and you know he continues why are we letting an 87 87 year old politician determine the regulations of a new technology that he has never used or understands which would have brought trillions of dollars in economic activity to the us and then he says wait he isn't even a boomerang he's from the silent generation brawn during the time of the great depression which is just grand irony here um but this i mean i i think i want to hop on about like the age thing here i'm not trying to be ageist but if you're like that old and you really i mean there's a very high chance you don't know anything about crypto and i'm not even going to say that's just like if you're old um there's a lot of young people who don't know anything about it but you know

typically a lot of politicians are really old uh and and career politicians and and really they tend to lose touch with a lot of what what's going on with um with society um at large because they're just sitting in their own ivory tower or whatever but i didn't want to kind of like hop on about that too much what i do want to talk about is the fact that i just find it so insane that the people who don't understand crypto are the ones legislating on it uh because like how does that make any sense right how can you expect them to legislate something properly when they don't even understand it and ted it was actually it was funny because ted cruz one of the senators i think this um uh senator from texas basically had a there's a video of him basically giving a speech where he says

um if he asked every senator in the room to stand up and give kind of like a a breakdown of what cryptocurrency is probably less than five could i think it's like 100 senators or something like that so we basically have five percent of all the senators being able to give you a breakdown of what crypto is and the rest of them can't but they're still voting on and they're still deciding kind of like uh what happens in this industry which is just absolutely insane at the end of the day so that's kind of where we stand unfortunately um you know the the uh the amendment you know didn't go through the original language is is it it made it into the bill uh which is the crappy language and that'll be going through to the house now and as jerry bruto says here the good

news is that i mean they're not giving up coin center being them and all the other people working on this like jake trevinsky and next stop is the house where they can get like a whole new amendment from crap from scratch that can address all of their concerns um so yeah we're gonna have to look out for that and see what happens there with the amendments and things like that and you know there's also these these senators that have been kind of fighting for us here you can see them named here uh and and also all the people kind of like working at coin center and around them as well so yeah all hope is not lost and as i said this doesn't go into law until 2023 the market definitely shaking this off and doesn't really care and i put out my own tweet today where i

said you know the fact that we got like rugged by this boomer who's not even a boomer turns out right but the fact that we got rug about this person uh that doesn't understand crypto at all and was just being petty is just frankly ridiculous and insane and i said you know don't don't don't [ __ ] with crypto right don't [ __ ] with us because we're gonna hit back and the way we hit back is we basically just um work to disrupt all of these institutions that these people hold dr uh but like even though i'm taking kind of like the cynical approach here the problem is that a lot of these politicians are probably gonna be dead by the time crypto takes over it's still gonna be like five to ten years until crypto essentially takes over and a lot of these position uh politicians

are so old that in five to ten years some of them can be dead and a lot of them will probably be not lucid enough to realize what's going on like that's how old they are which is it's just crazy to me that we don't have um age limits on who can be a politician like at a certain age you kind of like definitely uh aren't representative of the majority of population anymore you probably don't understand what's going on especially in in technology and i do think there should be age limits there but maybe that's an unpopular opinion i don't know um i just that's just like my personal view on it and i think that maybe the age limit should be like 60 or 70 and there shouldn't be like minimum ages for being uh kind of like i don't know if there's a minimum age

for being a senator but there's definitely one for being the president which i think is kind of like uh crazy because at the end of the day um i definitely would probably trust someone in their 30s to be my be a president rather than someone in their like 70s to actually be in touch with what most most of the people want when it comes to these sorts of things at least and especially when it comes to like uh you know senators regulating uh i guess like crypto and technology in general so yeah i'm not going to rant anymore about that i i think that at the moment there's not really much to worry about we'll see what happens when this final law goes through but we basically made ourselves known now we've basically said we are here we are a force to be reckoned with we

being the crypto ecosystem and we're going to fight and that's what we're going to do so i'm going to be keeping tabs on on kind of like how the fight looks what happens in the house but for now this is where we stand on that infrastructure built so in more positive news muhammad here has updated his watchtheburn.com website to version 2.1 so there are now more stats on the sidebar and he's cleaned up the units improved performance for the client and geth proxy and a more a bunch of other improvements next up he'll be putting including aggregations into his improvements bringing back the usd price for everyone sorry for all the metrics here and more charts now i mean watch the burn was one of the original websites that was uh spun up for watching uh uh

eighth being burned as part of one five five nine there's a bunch of them now i mean i've spoken about them before on the on the refuel uh but generally like i love these dashboards i mean as i said i have the ultrasound money uh kind of one down here on my little ipad mini kind of like just there all day i just love uh going to bed and then waking up and seeing like thousands of more eth being burned it's just crazy and then watching the leaderboard and seeing like how uh on certain days like open c will be number one and then unit top will be number one like the leaderboard changes over time obviously and some random like new nft project will be in the top ten and so it's going to be cool to monitor as well but yeah great to see

muhammad keeping up with uh with watch the burn here and improving it and adding new features to it as time goes on so i've been talking about the altair uh network upgrade that's coming to eth2 well we now have a date for the pyromont test net to fork to this network upgrade and this i think is the last test net before it goes to mainnet so the test net will uh will fork at on the 19th of august at uh 2021 at epo epic 61.50 so that's fairly soon right what nine days until this happens uh and you know i think there's already been like a bunch of other devnets and test nets happen but this is like the full public long-standing test net for eth2 so this should be uh really cool to watch and see it go through um but essentially uh once that happens

you know probably have a couple more months until i guess like it goes through on on the beacon chain and then all eyes on the merge like the i mean really the merge is the the the next major upgrade as i've been talking about a lot and all the eth1 and e2 developers once altea goes through will be focused on the merge and and focused on making sure that goes through uh without it without a hitch because at the end of the day if that goes through perfectly i mean i think it's funny because i've been talking about like execution risk with regards to ethereum and how a lot of people considered 1559 to be such a huge upgrade that there was a lot of execution risk and something that you know there's a high chance of saying would go wrong but that went well like obviously we

found a consensus bug on the test net and we fixed that and then wayne that forked and you know it's been all well and good um you know up until now fingers crossed nothing happens there so i think that the risks ethereum for a lot of people and then the merge as well like being the major upgrade the one that everyone's like you know kind of worried about and kind of like wow this is crazy like this is this is an actual like really big deal where you're basically hot swapping out the consensus mechanism and things like that uh i think once that happens you know there's going to be a pretty big shift in i guess like narrative around ethereum about its execution risk and and about its future as well like i just i mean i've said it plenty of times i can't wait proof of stake is

almost here for ethereum as a whole um and i'm just i just keep stacking um more ether to just keep adding to my validator stack i just want to you know i want to stay got my eat forever when i want to make sure that i'm part of the network i want to make sure that i'm securing it so i just can't wait till i'm actually securing real kind of value because at the moment all i'm doing is i guess securing the beacon chain itself i'm not securing any eth1 transactions or any kind of like network activity and i can't wait till my valedictories are doing that and i can't wait until i'm getting that juicy extra apr from all the fees that aren't being burned as well which should be really really cool just just more of a way to stack more eth there

so uh gearbox protocol came out of stealth today i think they've been building for a little while here but they basically announced themselves today and essentially what gearbox allows you to do is get leverage uh on your favorite d5 protocol to be able to margin trade on uni swap or sushi swap leverage farm on yearn or arbitrage pegged assets on curve and so on and that's what they're building here so basically it's a generalized leveraged protocol as they describe themselves and they have these these concepts of like vaults where kind of like capital can sit and people can like borrow that that capital to to go to as i said like leveraged kind of like urine farming or like arbitraging of assets or leverage kind of like farming on uni swap or sushi swap uh and what was really cool about gearbox is that they're actually born out of eighth

global's market make hackathon uh which i think happened last year for my memory says me correctly but this is just another kind of like protocol that's gone on to continue building after one of these ethereum hackathons which which is just like i mean absolutely amazing i've judged a few of these hackathons there are some really really smart people working on projects there and you know the thing the fact that they continue building them and eventually get them to a point where they probably you know will raise funding and then get to mainnet and provide a product that a lot of people will use is really really awesome so yeah great to see them kind of like coming out of of stealth here and announcing themselves you can definitely go read the the blog post here for a full breakdown of what gearbox protocol is how it works you know what what their

key innovations are here and what they think um i guess like what what i think the real value that they're bringing to the ecosystem is and i really like that kind of like little artwork yeah it's like rick and morty inspired right uh where they've got like this uh these kind of like cockpits going on here this sci-fi rick and morty inspired stuff i really like that um and i love the name gearbox protocol too i it's when it's like a steampunk sci-fi kind of mix here um in their eye which i actually think is pretty important like a lot of people don't realize it maybe but like branding marketing and all that sort of stuff is really important especially in an ecosystem that is obsessed with things like nfts like could you imagine them nfting this for example like the gearbox team turning this into an

nft and basically selling it off and maybe they put that money that they earn into like their protocol treasury or anything or maybe they use it to pay developers or things like that so there's lots of stuff you can do here um but yeah generally just just cool to see these you can go check out this blog post for a full breakdown of what gear pro gearbox protocol is and maybe how you can get value out of it um you know when they go live so diversify put out an updated ethereum layer 2 ecosystem map here with 162 projects on this map now you can see they're basically split up into different categories from infrastructure to lending and borrowing to bridges to uh side chains uh to nfts and gaming all that sort of stuff here

and i mean it's it's funny because you like these charts i think are just pure marketing i don't actually you know i i don't actually think that there's that much signal in them it really is just like a bunch of logos in a chart just basically showing the ecosystem and i've seen like other projects do this like cardano had one without like a bunch of logos there and no one really knew what it meant or whatever um you know it just includes like every project even if the project doesn't have any traction or not uh but i still think it's just a great way to visualize like the fact that all these projects are working on layer two in some way or working on uh getting on onto a layer two or basically a kind of working on bridges or you know working on side chains as well which is like

orthogonal to the layer to ecosystem in terms of like scaling but you can see here in the infrastructure we have like so many now working there like i talk about these all the time stockwear mutablex aztec hermes you know loot brings zk sync polygon connects uh optimism arbitrary i mean look like there's heaps there now i don't have to go through all of them and then you know on the other side you have bridges as well which uh i've been talking about a lot too obviously connect and hop and and seller i've been talking about and then you can you can break i mean some of these are doubling up here like infrastructure includes immutable x and gaming includes immutable x as well because uh that's focused towards like nft and gaming um and then you've got double ups between like infrastructure with connects then bridges with k'next and

so it's not you know it's obviously not like uh uh all unique here but i still think it's a very very good way to show like where each project sits within a different categories and like how big this ecosystem now has become in terms of uh in terms of scalability so yeah great to see this kind of chart put out by diversify but as i said look view this as more of a marketing thing uh and less of like an accuracy thing because this really doesn't show i guess like which projects have traction which don't which are legit which are you know not legit all those sorts of things so yeah great great to see this uh this kind of like flow uh chart sorry here regardless of intent so speaking of layer two uh stockwear has basically i think put a a post on the maker down

governance forum or at least a mip making improvement proposal uh to add the stark net engineering core unit to make up which would essentially get maker on starknet which is uh starkware's generalized kind of like l2 uh ecosystem here so make a is one project that hasn't gone to any l2 yet uh they haven't uh gone to any optimism on arbitram or at least haven't confirmed that but they have been looking into it there was a post i think a few weeks ago uh basically discussing the scalability landscape and where makers should deploy itself they obviously released um the bridge for optimism where you could basically have this dire bridge where you could have instant die withdrawals uh two uh sorry from optimism to layer one so they are definitely involved in that space but they haven't deployed the maker

system itself to any of these um these layer twos just yet and i think it's it'll be funny because if they did this they would have to maintain a a die supply across like multiple chains right they would have to make sure that uh the die in circulation adds up like all the dye on ethereum layer one all of it on like optimism and arbitrary and everything like that and it would remain fungible between the two so i don't know if maker um you know maybe needs to be on a layer two anytime soon maybe they can stay on layer one and just have dye on every layer too because i mean obviously maker's uh main product is diet but on the flip side its other product is cheap debt so people like taking out kind of like dialogues on there kind of like eighth collateral whatever other

collateral and things like that so i you know i'm curious to see how maker plays this like if they deploy their makeup protocol to uh uh kind of like optimism or arbitrary or any of these other layers who's like i guess even starkware and stocknet and how they kind of like keep consensus on the die supply between all the different chains and things like that so very curious to see how that goes but you can read i guess like this post here from uh lewis from from starkware who basically goes through like why uh you know make us should consider adding the stock in the engineering core unit to uh to the protocol here so definitely go check this out so speaking of layer two uh dydx has been exploding in growth lately and obviously that's because they announced their token the other day

right the token isn't available just yet a bunch of people got air drop the token and to actually claim that airdrop and to earn your airdrop you have to do trading on dydx which i think is actually a great growth hack there but essentially they have this tweet here that since announcing the dydx token uh they basically hit several new records they have 1.1 billion dollars in weekly volume 220 million dollars in daily volume 124 million dollars in open interest 170 million in total value locked now number one in layer twos as measured by l2b.com 5k new depositors and 9k weekly active traders this is the power of a token my friends uh i've been monitoring diy decks's growth for quite a while i've mentioned it many times on the refuel

and they didn't have any any kind of like metrics anywhere close to this until they're out of the token and i think it's funny that their language here is that since they're now announcing the launch of the diy dx foundation they hit new records i mean come on guys like it wasn't because you announced the foundations because you launched the token um but anyway like i just this this wording because of like regulatory stuff just annoys the crap out of me even though i know why people do it it's just like so cringe like i just hate all this stuff like the careful wording you have to use but anyway i get it i'm not gonna rant about that but ascension essentially this makes dydx the i guess leader in l2 exchanges by far 220 million dollars in daily volume is absolutely massive i mean

uni swap on optimism uh hit like 3.5 million dollars the other day now given unisof doesn't have a liquidity mining it doesn't have like a i guess incentive program to get users trading on the platform in order to claim some tokens um but yeah this is just like way beyond what my expectations were for a token here but it really does show the power of it so yeah i guess kudos to the ui dx on this growth i really love to see the fact that they're that they're growing uh this quickly you know with a token and and and i said as i said i think it's a really great growth hack because it gets more people using the exchange more people familiar with like an ethereum l2 ecosystem and works to change the narrative too i haven't seen many people complaining about the gas fees these days and i think that

those that were complaining about it maybe are eighth holders and they're like okay well maybe high gasps are good now because it means more eath is getting burned which is it's kind of funny how like that shifts the the argument around where if the people that like hold um ether getting value out of it they it kind of like outweighs the fact that the gas fees are high so really little interesting narrative change there that i've been monitoring lately but maybe that's an aside but anyway uh great to see this growth from dydx i hope it continues for them so circle the company behind the usdc stablecoin has announced they intend to become a full reserve national commercial bank that's absolutely massive this is going to be the first digitally uh sorry yeah the first digitally native or crypto native

uh kind of like company that has turned itself into a bank like an actual kind of like a bank like you know your jp morgans and and and every and and kind of like um goldman sachs's of the world which means that circle is perfectly positioned to be the kind of like i guess bank that's a front end into d5 now i've been talking about this a lot where i said that you know d5 is going to sit in the back uh these front ends are going to be either centralized or decentralized that sit in the front and tap into d5 but what circle has here is an absolutely amazing opportunity to essentially be this middleman like yes we all hate middlemen but like a lot of people still want to use them so what they can do is they can set up this bank take deposits in from customers

and then basically put those deposits into uh with usdc into d5 and earn a yield for their customers and offer a higher yield than what the existing banks can do because they are digitally native they understand the crypto ecosystem they already have the tools and apis in place and all the software in place to do this and they're going to be fully regulated just like any other bank is in the us so i think this is absolutely massive news as much as we want to you know obviously disrupt all the banks and everything like that with defy i think this actually plays into that because this is not a bank like we know them as a bank this is a this is going to be a bank that's that's going to be tapping into d5 adding value to the ecosystem adding liquidity to the ecosystem

and basically adding value to ethereum at the end of the day because every transaction they do is going to burn eth that's going to add value to ether as an asset it's going to increase ethereum's network effect increases it's it's on chain liquidity and all that sort of sort of stuff so there's this whole announcement post here from jeremy alaire the the ceo of circle here uh you can go read this and check out like what they um what what their plans are and essentially what we know how they see this playing out but the way i see it playing out is just like absolutely massive onboarding vehicle for all these people who would probably have never touched defy without something like this because a lot of people won't want their hand held at the end of the day like for better or worse people want their hand held and that's

what i think like the circle bank will give them so i'm very interested to see i guess like how this plays out going forward and how much growth they see because they're going to be able to offer like what what i guess like compound treasury offered like four percent on your dollars for example um two like institutional clients uh two you know maybe maybe like like normies or whatever you want to call them two people that haven't touched crypto before which is you know much higher than what you can get in a traditional bank and that's going to force the traditional banks to actually catch up as well so we're going to see like a flyable effect here of d5 just like exploding in growth because of this sort of stuff happening but anyway i think i'm going to leave it at that for today so yeah thank you everyone for

listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone