Polygon zkVerse, L2Beat updates and more - The Daily Gwei Refuel #270 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily grey refuel where i cut the latest news in the ethereum ecosystem i'm your host standard susana and today's the 9th of december 2021 all right everyone let's get into it so first update today comes out of the l2 beat team you guys know this team i've talked about them a lot the um layer 2 kind of like information website they track tvl they have a bunch of information and educational materials on there today they announced that they are going to be building a state explorer for dydx in collaboration with diy dx of course and starkware so this tool will show decoded cool data stored in ethereum l1 by the dydx rollup and it will also allow users to perform force exits and trades by sending an l1 transaction um so let's break this down to kind of like plain english it's

basically like a block explorer right like you i mean we all used etherscan there's other kind of like ones out there that we've used before but essentially what happens with zk roll ups is that they post kind of like their transaction proof and they post their call data on layer one but there's no way to kind of like extract that unless you're kind of like a developer unless you know what you're doing so what l2b is trying to do is build an interface that allows end users to kind of like extract that data and be able to kind of like see stuff like what trades they did on the on the roll-up and kind of like their balances in different points of time and all that sort of good stuff the same stuff you can see on ether scan right and in addition to that they're also

going to be building features that allow users to perform force exits and trades by sending an l1 transaction so you guys know i've explained it to you before how these l2s work where essentially if they go offline if they're a true l2 and they're posted you know call data to layer one along with the transaction proofs you can interact with the contracts by using our r1 yes the gas fees are going to be really high compared to l2 like in diy dex's case they actually give you free kind of trading because they cover the gas cost for you um through the trading fees if you do have to do it on layer one it's gonna cost you a lot like uh i don't know how much it would cost but it'll probably cost you like probably hundreds of dollars to interact with it but the thing is you can still do it

that's the whole kind of like point right you can still do it at layer one which i think is really really cool so awesome to see that uh l2 beat is kind of like building this infrastructure out they've been on fire lately both on their official twitter and kind of like their team members twitter there's been a bunch of kind of like stuff that they've been putting together i mean they wrote a blog post today as well called it titled is the six billion dollars locked in l2 secure uh by one of their team members bartek here one of the founders i think um uh and it was a really great post i really enjoyed it it basically went through kind of like how secure each of the l2s are and and kind of like all the i guess like i mean i wouldn't call them like back doors but

all the kind of like centralized controls that they have around them right now which i've warned about like plenty of times before um and then if i go to bar tech here he actually put out a tweet thread just before um oh what what not this one let me just bring it up here so this tweet thread here where he started off by saying surprised to see a lot of takes trying to argue superiority of zk rollups over optimistic roll-ups or otherwise we might end up in a multi-role up ecosystem where both play slightly different roles and will coexist and then he goes to a thread about here's why i've said to do this to you guys before as much as like i'm super bullish on zk roll ups i think they're going to be amazing i think that zktec in general is amazing optimistic roll-ups are not

obsolete and won't be for quite a while um because doing evm compatibility and kind of evm equivalents on uh with kind of like zk roll ups is is really hard and i know there's multiple efforts kind of like working towards that but it's hard it's more expensive and it's going to take just much longer than people think to to get to a point where we want it to be but optimistic roll-ups are ready today they work today they're evm compatible today they're live you can go use them right now yes they're in the early stages you have to wait for things like call data compression for cost to come down um and you know a bunch of other kind of like mechanisms there but they work and they work really well and it's such an awesome experience going to arbitrary optimism and having like an instant transaction confirmation

obviously it's not instant finality but just kind of like that feedback that you get not having to you know and obviously the costs are cheaper but you know the funny thing is i actually think the speed of the transaction um to me is maybe for most people it's probably not as important as the fees but for me like seriously after using ethereum for years and having to wait at minimum kind of like for one ethereum block which could you know range depending on where you do your transaction can range from a couple of seconds up to like 13 14 seconds or if you um you know before one five five nine if you had to kind of like speed up your transaction it could take you minutes to get uh to get into a kind of like a block because of some demand spike or something like that it happens

less so with one five five nine of course but you know for those of you who have been doing ethereum transactions at layer one for years the fact that we're getting like instant confirmation at layer 2 yes it's not instant finality which comes later but that kind of like instant confirmation feedback just feels absolutely amazing and uh you know you you kind of like relatively safe and secure as well because it is a layer 2 like i know some other kind of like layer 1 block chains offer this but obviously they're not inheriting ethereum's scalability and decentralization as well um so a little bit of a tangent there but i think the point i'm trying to make here is that uh i hate when people say optimistic while apps are obsolete because what do you mean obsolete like show me a zk evm that i can use today right now no one can do

it like i've said this to multiple people on twitter no one can do it because one does not exist the closest we have right now is probably stark net but stock net isn't evm compatible it's using cairo their own language it's using their own um uh execution engine at uh at layer two there um and it's in a very early alpha stage they do have a transpiler but that again is also in a very early alpha stage transpiling from solidity code to cairo uh from solidity to cairo so the the zke evm i would say like maybe polygon hermes is one of the closest teams i know zk sync is pretty close uh and then there's hybrid solutions like zk porter and things like that but um we're still gonna be waiting a

little while for them to even get to where optimistic roll-ups are today i believe so yeah optimistic roll-ups definitely not obsolete let's stop saying that i know probably none of you guys are saying it but i've been seeing it out in the wild so if you see it definitely just call it out and say they're not obsolete right like they're live and working today um zk's tech is awesome but there's still a long road ahead for it to get to where we want it to be um probably not as long as people originally thought but still it's not coming tomorrow or next month or anything like that it's going to be a longer journey there but definitely recommend giving bar text thread to read here about this he goes into a but a bunch more detail about more technical detail which i found are really illuminating um

and also if you're not kind of like i guess uh following l2b yet i mean it's one of the best followers on twitter right now especially for keeping up with l2 stuff and you can join their discord channel as well and go check out their website too for all the cool stuff they're working on so it's keeping on the topic of l2 news zigzag exchange which is a really which has become a really popular exchange on zk sync have announced that they now have a bridge so they they have a bridge between the ethereum and zk sync that they operate where you can bridge over each die usdc usdt or wbtc with instant deposits and 30 minute to 7 hour withdrawals zero percent bridge tax only transaction fees depending on eth l1 gas now i really love zig zag exchange

because with bitcoin grants matching rounds um obviously i have the delegate git coin grant on there and i have the ether bitcoin grant on there um for the daily guay one uh i would kind of like see all these funds coming in on layer two and they would be uh not just like one uh asset it would be multiple assets it would be usdt usdc die eth and then i'd have to have to withdraw each of those to go back to layer one if i wanted to uh you know sell the stable coins for eth or if i wanted to kind of like um uh kind of like convert it or send it to a centralized exchange for example to to cash out some because there's taxes owed on it it was just a super annoying process super expensive because i had to do the trades at l1 but now with zigzag

exchange i can actually just like trade the stable coins for eth or trade everything for a stable coin on layer two and then just withdraw that one kind of like stable coin or that eighth to layer one and then go to an exchange which is just so much better it saves me so much money doing that and it's not just me obviously it's everyone with a bitcoin grant um but like that's that's what i've been using it for but also i mean it's a proper exchange it's not an amm it's an auto book or club exchange right now maybe they're going to do an amm i i would i would say that they're going to do an amm uh eventually because amms are awesome but uh it's just it feels so good not having to go to layer one to do all these swaps like let me

tell you the fact that it's just so stupidly cheap at layer two and this is on a zk roll up as well uh which is awesome um uh and yeah i mean they've got like a bridge live now and everything these guys kind of came out of nowhere as well i know i've been covering it for a little bit but they kind of came out of nowhere and have just exploded onto the scene so really really awesome to to see that as well for sure but uh it just makes my life so much easier but definitely go check them out you can now bridge directly into zk sync using zigzag instant deposits which is awesome i mean instant being like one ethereum block i guess which is pretty much you know uh just a i guess like a maximum of about 13 seconds depending on

your gas feed that you've selected uh as well but um yeah this will get you in and you can do like lots of trading on there liquidity is decent from what i've seen it it's building up over time obviously still early days for zigzag here the liquidities are pretty decent it's probably not uh enough to service like really large orders just yet but if you're a whale you're pretty much gonna just be on layer one anyway and you don't really care but i'm sure as time goes on their liquidity is going to get much better and it's just like such a better experience than having to having to essentially uh do what i did before when i was cashing out some bitcoin stuff so yeah really really cool to see that and see this feature from zigzag here so influence which is this kind of

strategy space mmo that is building on starkware shared a link today that uh there's a link on notion we're listing the projects currently building on starknet so you can see here they're split into three main categories uh d5 projects games and nfts and governance and community apps so there's not too much just yet but uh it's definitely um it's definitely making progress here so right now acropolis which is an amm he's heading to stark net maker of course is heading there a stark finn which again is another amm zigzag which is uh the order book based exchange that i was just talking about a bunch of games and nfts including influence of course uh dope wars i've seen talked about before and a few others on this list and then some governance tools like

stark votes which is trustless voting and zorro now obviously this list is pretty bare right now but the thing is as i said to you guys starting out is still so so real i'm sorry i should say so uh so early in its life cycle that uh we're gonna have to wait for this sort of stuff to happen it's not like the projects on layer one ethereum can just clone themselves over to stocknet right now there is that transpiler but from what i understand the transpiler is not kind of like up to the point where it can just like take the evm code from layer 1 rv for example and port it over to stark net layer 2 and everything be well and dandy and everything work and also these teams are going to want to audit that code again like it's not as simple

as just translating it over and you want to have certainty that it hasn't introduced any kind of like new bugs or anything like that um maybe i you know maybe i'm wrong here and it doesn't do that but i doubt it so the teams would also want to kind of i guess um uh kind of like get another audit done as well so it's going to be slow for those projects to move across much faster for them to move across to um arbitram and and optimism i'm hoping ave v3 goes live on arbitrary soon because we we kind of like need um i need ave on arbitrary one of the only key missing things there and obviously on optimism as well uh but i think you know i've had already committed to deploying to arbitrary but you know i think they've i think they've committed

to deploying to optimism as well so we'd love to see that there but anyway um definitely go check out these leads maybe bookmark it and you can watch it keep getting populated over time which i'm sure it will be so an update at a polygon here today they've introduced something called a zk verse which is a new blog series dedicated to all things zero knowledge so polygon has really gone like more than all in on zk at this point you know when i i kind of mentioned this when they announced their 1 billion zk fund a few months ago they've just like gone fully into it they have polygon maiden polygon nightfall polygon hermes and there's another announcement coming today like a big announcement that they've been teasing i think it's today or tomorrow at zk day pretty sure it's today um that they're teasing as well so who knows

maybe it's another zk roll up or another zk team that they've acquired i don't know i'm just speculating here it could be uh some breakthrough on the tech side we'll have to see what happens there but uh this is really cool because i think there needs to be a lot more education around zk stuff because it's really become a main theme now a lot of people are talking about it but if i had to say most people still have no idea how any of it works most people have no idea in what part of the life cycle we're in for zk tech i'm not going to say i'm an expert on it far from it um zero knowledge kind of like technology in general is very early not just the crypto context but just in general the applied technology is very early it's existed in in kind of like theory land

for a while i believe but in terms of kind of applying it practically to things it's it's very very new so great to see more education coming out of polygon here around this and again you should bookmark this blog and definitely keep kind of like periodically checking back because you'll be able to read uh a kind of um different post about uh zero knowledge stuff but the first approach is post is basically an introduction which i i gave it a read um earlier it's a short just a short introduction which i thought was just was really cool it has a few links to other kind of like things you can read and check out as well so definitely go check this out it'll be linked in the youtube description for you so pods announced today that they're now live on arbitrom so pods is an options

kind of like protocol and their first deployed option on arbitrary is a put option on ethe usdc with a strike price of 3 500 expiring on december 23rd with a cap of 1 million dollars so they're doing a guarded launch here with just like i guess one product right now obviously a lot more products over time but great to see another options protocol live on arbitrage i spoke about uh premiere or premiere the other day uh they're on there i think there's a few others uh there's obviously open uh sorry not open not lyra on optimism so these options protocols uh are definitely kind of making the the kind of like uh migration here because i believe pods was on uh ethereum layer one and then polygon pos chain now on arbitram i'm sure they're gonna deploy

to optimism if they haven't already i can't remember if they're on there or not uh but yeah i mean the strategy seems to be to kind of like deploy to all these evm compatible slash um equivalent chains which makes a lot of sense so if you're into options trading and you want to go check out pods it's live on arbitrary for you to do so just another thing for you guys to do on our bedroom so rainbow mobile wallet has teased a new feature today so it's a sneak peek of their upgraded gas features and a new gas ui uh which obviously includes support for eip1559 so you can see in this video here how you can kind of i guess like change your gas and and see all the information about it so it'll show you the current base fee um uh which is kind

of like the current standard network fee that everyone pays then it shows you your settings for like okay what do you want your max bass feed to be and then what what you want your minor tip to be which is the kind of like um the uh the the tip that metamask display which which you've all seen before uh and then you continue on here they have like i mean you can set custom amounts there or you can do normal fast or urgent obviously we're used to all seeing those different speed settings that we can choose um and then once that's kind of like done uh you know it'll give you kind of like prompt you with warnings like you know this minor tip is higher than necessary and then it kind of gives you information saying that the minor tip goes directly to the minor um and you

know the higher tip makes your transaction more likely to confirm uh and there you go they're just kind of like finishing up the transaction here editing all the kind of like as related settings and and there you go i think uh the rest of the video is just kind of like that that kind of confirming there which is really cool so great to see i guess more experimentation around how to show gas settings to end users because i think there's been a lot of uh flat given to metamask about how they do it saying that it's confusing does it you know just it makes a little sense the the tooltips that they have are just like really not up to scratch so it's great to see other wallets kind of like doing something different because if everyone just copied metamask and deal with metamaster we wouldn't actually improve

wouldn't actually get kind of like better ways to do it and i i think rainbow's way of doing it right now is my my favorite that i've seen so far to be honest because of the fact that they just like plainly tell you what these things are like current you know current base fee max base fee and minor tip and then it gives you an estimated max transaction fee in dollars which is obviously what you know that's what most people care about right like how much is this transaction gonna cost me in dollars but at the same time you know i think this is good for the short to medium term but long term i just really don't think there's going to be any uh like i mean users on layer one that doesn't understand this kind of like um this kind of stuff on like a deeper

level because the newer users just are just so totally priced out they're just going to be at layer 2 and they're not going to have to worry about this sort of stuff unless the layer 2 maybe implements an eip1559 style transaction method which i mean i think i'm pretty sure arbitrary has it right now if not they plan to have it um i can't remember exactly i've gone blank there but uh yeah but just like on layer one i mean i think it still makes sense for sure but like when you see that max transaction if you have 70 imagine you're a new user and you see that you're definitely going to be like uh no like what the hell i'm not gonna pay this so uh you know they're gonna go to layer two and they're gonna like have a much better experience there which rainbow's working

on layer two integrations as well by the way i've talked about that before but yeah really really cool to see this out of out of rainbow here all right next up we have index co-op that announced that it has raised 2.5 million dollars in a round led by sequoia india blockchain.com ventures and white star capital here this brings the total funding to about 10 million dollars since launch in october of 2020 led by a 7.75 million earlier round from mike novogratz's galaxy digital and 1kx network so i guess congrats to index co-op on this raise really cool to see that they've got more capital under their belt to keep building out the best index products in in d5 in crypto really uh because they're not just d5 they have the mvi and a bunch of other products

now as well um and just as disclosure here i'm an advisor to set which is uh you know pretty kind of like um pretty involved with with index card pr but i mean it's just been amazing to see index clubs journey over the last year or so because i i mean but every year now um because i was involved in the initial launch uh it was kind of like a wild experiment for us to do at set and it turned into something amazing i mean it's outgrown set that's for sure it's its own kind of like beast now where um there's a lot of kind of contributors on there a lot of really cool people i'm kind of contributing to it and the dao uh works really well and and yeah they're building a lot of great products that people love to use um but what i

love about index cobs journey the most is that there's been a lot of other kind of like index i guess product ecosystems or competitors you could say over the last year and i think index cop is the only one left standing because i think what they did right is they focused on uh being like a product first i guess they're not a company like a dow um instead of just wasting time on the frivolous stuff right and they also kind of like not just not only focused on their products but also focused on the dow itself and getting working groups spun up getting the right people in the right positions making sure that things got done and uh you know things were kind of like running like a well old machine because as we've seen i guess like over the last few years dows are really difficult to get right

and i think a lot of them are just going to fail long term because there are kind of like things that happen where within dows if you have someone that's kind of like in a leadership position at the start like a core team not even just like an individual but like a core team and then that core team kind of like leaves or kind of like tries to remove itself from the project uh to kind of further decentralize it without kind of like stewarding in the next people to take over what ends up happening is you have a leadership void and then the people who usually fill that leadership void are the wrong people they're the people who should never be in positions of leadership so for me uh i guess like my opinion on this is that the best dows are the ones that

have contributors that come in after the core team set it up and everything and the core team kind of like guides these contributors guides them and stewards them into positions of leadership uh if they're the right person for the job they don't just pick anyone they don't just okay you're cool you know you're in the discord you're talking a lot you're the new leader of this kind of working group that shouldn't be the way it happens at all because most people suck at being a leader like i personally for myself i am not a great leader i don't think like i have a you know the community with the daily gray and everything but i don't consider myself a quote-unquote leader of the community i'm just like part of it like the rest of you but a big reason why i haven't started my own kind of like defy company

or dao or whatever you want to call it or something like that is because i don't think i'd be a good leader because most people aren't most people can't hack being a leader for a number of reasons i mean being a leader requires a lot of people skills a lot of um a lot of uh being able to kind of keep your cool mediate disputes all these sorts of stuff and in the world there's really not many people who can do this that's why ceos are paid so much money that's why ceos are so hard to find because ceos have major companies i mean they have to for them to do their job well they have to be a really good leader they have to have like all types of like uh skills across like many different domains um but like i'm not just talking

about the top level leaders but just leaders in general like doesn't matter small or big uh most people just can't do that and a lot of people who want to do it aren't suited for it but if you leave a leadership void in a kind of like organization whatever it may be it's going to get filled with those kind of opportunistic people especially if there's money to be made like for example if there's a leadership void in a project and there's a treasury that has like say 100 million dollars in it and the um the dao has control over that treasury well or which they do of course obviously well you're gonna get these opportunists that come in and say hmm maybe i can get some of that for myself maybe i can do like the bare minimum and get some money it's happened plenty of times across

projects before so i think that's what the index co-op has done right over the last kind of like year or so the two major things being a product for uh product first focused organization and also uh focusing on uh making sure that the dow functions properly because you know if the dials doesn't function properly everything else falls apart right so really really great to see that but also you know again congrats to them for this raise it's great great names on board sequoia obviously massive web 2 uh vc and blockchain ventures part of blockchain.com that has been around for a very long time in crypto a very very long time like one of the earliest kind of companies in crypto so great to see that all right announcement out of vaults

protocol today uh they have uh raised the six million dollars in a seed round led by i think framework ventures yep uh that's right led by framework ventures here um with participation from a bunch of other uh uh kind of like uh funds and vcs fabric ventures coinbase ventures winter mute and then some angels as well stani from arva david and ryan from bankless a bunch of others my name's not on here but i did participate in this in this in this as a seed investor just the disclosure there um but you're probably wondering what is vaults like what is this thing that anthony has invested in all these other people are invested in so what volts is you know in terms of kind of like the um the most basic explanation is pretty much in this graphic here and at the top

it says volt is a non-custodial amm for interest rate swap so basically an interest rate swap protocol now these uh this is another exotic product that i've spoken spoken to you guys about like another exotic financial product like options and futures and derivatives stuff like that um interest rate swaps they're very very popular especially with kind of like banks and funding and financial institutions and obviously banks with mortgages things like that there's these are kind of like the ways that they can offer like fixed rate mortgages a variable and they kind of like swap the interest rates on them trade them to kind of like you know hedge risk or kind of like take on more risk get yield i mean there's a lot of stuff that goes on it's very complex and exotic but what volts is trying to do is bring this to

d5 right bring this to d5 in a root in a big way and they've got some great backers to do it like framework ventures is is awesome obviously uh coinbase ventures huge and a bunch of others here and great angels on board as well um but they're trying to do it with using the amm model which i don't believe has been done in d5 before um and if it has i i've probably just forgotten about it right now um but yeah i mean they describe it here you know interest rate swaps are a key pillar of any financial system so you know by bringing the interest rate swaps to d5 they've abbreviated interest rates with irs yet it's an unfortunate abbreviation because irs i read that and i think internal revenue service i think tax right in the us um yeah but but essentially uh kind of

like they're right it's a key pillar of any financial system it is one of the i mean as i said it's an exotic product but it's also a product that uh needs to exist in a deep in a um financial ecosystem for more of the the bigger institutional players to want to actually play here and for more of the the kind of like bigger like banks and stuff to ever you know if they were ever to adopt something like d5 uh they definitely want to to use something like this so go give this blog post a read for more details about it they break down kind of like what makes them special how their kind of like product works and everything like that um i i was excited to participate in this because i'm always looking to back you know new kind of like stuff coming

to d5 there's a lot of uh kind of like reused stuff in d5 these days but uh you know when you kind of like find something new you get excited about it and that's exactly what happened here so definitely go check this out i don't want to show it too hard to you guys but if you're looking for something new here it is definitely go check it out all right so to wrap today's episode up i did want to quickly talk about a tweet i put out today which i wrote about in the newsletter as well uh and it's a simple tweet i said the hardest part of crypto investing is not making money it's keeping it and this is because over the course of the last few years when i've been in crypto i've had a bunch of friends i've spoken to you know i've seen them kind

of like do various things within crypto and i kind of got to thinking today wow surviving in crypto is hard because and i think that it's due to kind of like one major reason with a bunch of other reasons that fall of off of it but the major reason is because crypto tricks you into thinking you're a good investor when in reality you just wrote up a wave and then you're and then if you're not kind of like someone who's used to taking profits or if you get too greedy you end up just holding those kind of like paper profits down and you end up with much less than you started with or much less than you kind of kind of gained it originally and if you're benchmarking get something like eth you end up get you know getting obliterated

there as well so um once what ends up happening is that when the market is super super hot you can literally throw money at anything and make money in measured against usd but the problem is is that most people won't take profits they'll get greedy they'll kind of look at that and be like oh if only it went to this amount i'll have this much more money or you know once it gets there to be cool i'll just wait until kind of like it's a year i've held it for at least a year because then i get a tax discount if you're in like the us or australia i mean i've done this before right i've made these mistakes guys i'm talking from experience here um and then they won't they also won't benchmark against like eth which i i think is is is not not a

great way to go about it because if you're not outperforming eve then why did you buy something else to begin with like you took on lots more risk especially within the ethereum ecosystem um but you know even if you're just benchmarking against usd it still ends up in the same kind of place there and i think the clearest example of this is over the last 12 months or so or i guess a bit longer than that now it with what happened with d5 for those of you who are new to the ecosystem you may not be aware of this but defy in the last six months of 2020 was the absolute hottest thing ever everyone was saying buy defy tokens you don't need there were there are people saying oh you all you need to do is buy btc and d5 tokens and you'll be fine you

can skip eith like this was a popular narrative this was consensus back then and there were a few of us pushing back against that saying this is you're insane like how does it make sense to to only by defy not eth and the reason why this was a common kind of like belief was because defy had performed really really well because we had defy summer a lot of defy had gone bananas like absolutely insane led by um a lot of the popular tokens like wi-fi that went insane um you know you had like arvi which was a fan favorite a bunch of others like snx there was heaps of them out there they went crazy right but then they crashed really really hard because uh obviously you know what what goes up must come down but i mean i don't really think that applies to

crypto but uh because it's like a physics um metaphor but but essentially uh kind of like what what ended up happening with uh uh kind of with d5 is it crashed really hard and then eth went on a run so not only did defy get crushed against usd it got even more crushed against eth because at the time when d5 crashed i think eth was around 400 right and since then ethan's gone 10x over 10x whereas d5 against usd has gone back up a little bit but not really and it hasn't it definitely hasn't gone up 10x from where it was at at its peak last um uh last year so from that perspective a lot of people got wrecked on d5 against especially against eth some of these things are down like

90 against eighth and these aren't just like the random coins this is like i think wi-fi is down 90 against eth i think ave is down like 80 like these are the fan favorites so just taking that as the example here hardest part of crypto investing is not making money because everyone was making money last six months of last year on these d5 things but it's keeping it how many people took profits i would say very little amount of people took profits how many people took profits and rolled them into eth which was an even better way to to kind of play it even even less so not many people at all because the popular narrative at the time was that you don't buy eighth and then each proceeded to go on an insane run 10x by may right 4.4k so over 10x by may and it's still

over 4k today where d5 hasn't really done anything it's just kept bleeding against eth even more because d5 itself is going down and ethy's just kind of like staying flat so even you know d5 prices are going down in usd which means they're going down in eighth as well um so that's just one example but i think the the next kind of like big thing and the next mistake people make is that they marry a bag and what i mean by this is that they buy something they get really attached to it and then they kind of like convinced themselves that er just because it's going down now if i hold it for long enough it's gonna be fine it'll pump eventually i'll be okay and it leads to kind of like a really bad frame of thinking where uh you hold something for a very long time and you

watch all these other things outperform it but you somehow convince yourself that it's fine but when in reality it isn't you should have cut your losses or at least kind of like taken profits instead of writing it down and there's this famous quote from i can't remember his name now but like a famous investor i think uh paul tudor jones where it's behind him in a picture and it says losers average losers and what that means is that if you're kind of like uh holding down something that is just like underperforming the whole market and then and then some people what they do is they double down they'll they'll buy more of it most of the time that's not going to work out for you and people will kind of like hit back and say well eight that's what happened with eighth like eighth obviously came down 94 since

its all-time high in uh and then it came back you know buying ether at the bottom was the best best decision ever it's like yes there are exceptions to the rule and eth is a completely different asset to a defy token or some other kind of token out there and guys i'm not saying that eventually these things can't go up in value again but the point is is that over the long term because all these emotions are at play all these biases are at play all these kind of like different different kind of like things are playing out it just becomes a thing where most people especially if they're newer to the ecosystem uh end up kind of like over trading getting blown up on leverage just like holding something for way too long and just like you know basically giving it all back essentially like they don't keep the

money that they've made so i mean in saying all this none of what i'm saying is investment advice it's not advice at all i just it's kind of like just my view of everything and how i kind of like see the markets because i've seen in the discord channel as well the daily great disco channel over the last few months a lot of people saying damn i should have just held each like why did i buy this thing i've underperformed eighth i should have just bought and held eighth and i don't say anything i don't say oh yeah you should have done that or you should just buy eight i always give my opinion where i say that i don't think most things are gonna outperform eighth especially in a one five five nine world especially leading up to the merge which is going to drop

issuance by a lot um and also increase staking apr which will lock up more eighth but that doesn't mean that things can't go up in the short term but the problem is is that most people do not take profits in the short term do not roll those profits into each do not roll them into kind of like stable coins and then buy it later what they do is they hold it for too long um so yeah and as i've said as i said before i've done this too guys i am not innocent here at all this is all me speaking from experience i mean my first foray into crypto was 2013 with bitcoin i fell for every pump and dump i bought into like literally borderline scams i lost like probably over 50 of my portfolio as measured in bitcoin at the time and then

i sold the near bottom in 2014 and didn't look at crypto again until early 2017 when i bought my first eighth um so i've learned this and and you know i've still learned lessons since then as well i held some d5 tokens way longer than i should of and i just broke even against ethan some of them because of the fact that i had held them from really early on but uh it wasn't even worth it like i should have just kept it in in eighth i lost actually i think i lost against eighth on on one or two of them by a little bit it would i mean it's just a mess guys like seriously and the problem is most people don't buy really early they buy like going you know as it's going up and then it just becomes very messy so this isn't to say that

don't buy other things and uh you know that you can't make money and other things and you can't outperform ether and other things but know what you're buying for are you buying for the long term if so you've got to be really really confident that it can outperform eth and you have to kind of articulate a thesis as to why because the long term is ruled by fundamentals and thesis driven investing the short term is ruled by traders and speculation and momentum if you're doing a short-term flip well you better know when to flip that you if you're if you you kind of like have to make that decision before you even buy something you can't buy something and be like oh well this is going to be a short term position but then like halfway through because it's going up a lot you say ah i'm going to hold this because

it's a long term position now i love this i mean that works sometimes very rarely but i mean it works sometimes but most of the time that's not going to work out for you and what's going to end up happening is that you're going to convince yourself that holding it and keep holding it it's going to come back and then uh you'll kind of come back into it in a few months or a year and you'll see that you've drastically underperformed something like eighth and then usd you may be flat and you'll feel really shitty like trust me you'll feel really really shitty anyway that's just some kind of like commentary again not advice not investment advice please do not take it as that but just kind of like be wary of these things these are questions you should be asking yourself these are things that you should be conscious of

do not let your emotions rule your investing or trading because when you do that you get wrecked and do not guys like again this isn't me telling you what not and not to do but leverage like be careful because it's very easy to get blown up you've seen it time and time again when the markets come down really quickly those are those are liquidation cascades that's people getting liquidated that's billions of dollars getting liquidated they dropped to 3 600 the other day billions of dollars worth of positions got liquidated they're wrecked like absolutely you don't want that happening to you because i've seen people blow up their entire positions on leverage and then leave crypto they made a lot of money and they blew themselves up completely it's for your mental health as well it'd be really damaging um but anyway i'm gonna i'm gonna leave it at

that for now uh last thing to mention here is just from patrick mccrory he has started a oh he's launching a free eight-week course on cryptocurrencies with a special focus on layer two protocols it'll start in q1 of next year so if you want to sign up you can the links here i'll link this in the youtube description for you um patrick macquarie is one of the smartest people in the crypto ethereum ecosystem i can like i've spoken to him before he's great uh he works uh he's worked with infuria he's where he's part of a fund called limnuscap here and he's also uh worked at zbd here as well which is kind of like a virtual worlds thing but he's been part of like i guess the layer two stuff for a while like even in bitcoin land and stuff like that so yeah

definitely would recommend signing up to this i'll leave a link to it in the youtube description but i've gone over time so i think that's it for today thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone