Sushi Trident announced, Vitalik returns and more - The Daily Gwei Refuel #169 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily way refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 21st of july 2021 all right everyone let's get into it so i hit 10 000 subscribers on the youtube channel last night really really exciting for me uh the big five digits hopefully eth can get to 10 000 soon so thank you to everyone who has been uh long time short time subscriber uh if you're new to the channel uh welcome uh i'm i'm really definitely feeling blessed that there's you know ten thousand people out there um you know thousands of you watching kind of like the daily gray every day uh for you know pure unfiltered ethereum content it's actually quite amazing to me that you know that many people are interested in just watching you know non-price

kind of related content just like fundamental uh kind of developments within the ethereum ecosystem and it's really encouraging so yeah thank you again uh to everyone who subscribed and if you haven't yet be sure to subscribe of course um but yeah onwards to i guess what's the next number from here 20k 30k 40k let's let's try and get those kind of numbers up you know i don't use any clickbait for this channel i've discussed this with some of you in the discord before where basically i don't want to have like any of those clickbait thumbnails or titles or anything like that uh you know this channel is not meant to be one that attracts like moon boys or people who are just interested in speculating on the latest scam tokens or whatever it's it's definitely just meant to be kind of uh it gets daily updates on the

ethereum ecosystem and pretty much as far as away from prices you can get really i mean i don't have any charts that i show most of the time and i don't really talk too much about price i mean it's unavoidable of course and it's a big part of this ecosystem but i i just um definitely try to stick to the fundamentals where i can and you guys know that i mean if you're a daily listener or watcher you know that so yeah once again thank you for subscribing um onward to 20k here so i put out this tweet last night i was actually this was 2 45 a.m for me so i was lying in bed and i'm like you know what what about what about if we think about ethereum as like a generation generation e or generation ethereum and then i put out

this tweet where i just said we're all a part of generation ethereum and i wrote a newsletter about this today um you can check that out uh linked in the in the description but essentially what i'm what i mean by this is it's funny because when you think about a generation of people it's usually split off into like age brackets right like you have obviously people always make fun and make jokes about like the boomers right the um the older generations the baby boomers who came kind of like after the war of world war ii and then you i mean it's funny because like there's a lot of generations that uh you know are alive today or like have um i have people that are alive today but it you don't really hear about baby boomers and millennials in the news i never hear about like kind of the silent

generation um generation x or or zed sometimes you'll hear about zed and they'll call them like zoomers these are like the the the young people who are just entering adulthood now and like late teens and stuff like that um but generally you know it's the baby boomers and like the gen y or the millennials that you hear about and that it's very kind of like age oriented because of the fact that generations go by um the year you were born obviously which which means it goes by age whereas with ethereum with generation ethereum there is no concept of that it's literally whoever you are regardless of your age regardless of where you are in the world you are part of generation ethereum you are kind of like growing with ethereum it doesn't mean you're growing up with ethereum it doesn't mean that uh you're growing

up in a certain kind of like a part a point in time or certain kind of like point in like in technology or whatever but you're that you're definitely growing up uh sorry growing up with ethereum like alongside ethereum so i kind of used some examples in the newsletter today where i basically said think about the amount of people who are never going to kind of interact with the traditional finance system and they don't even have to be necessarily kind of like uh you know the younger people like in their teens or whatever like someone like me i actually never kind of interacted with the traditional finance system and i still really haven't besides like having a bank account i didn't um set up a brokerage i didn't buy stocks or anything like that i didn't speculate on equities or whatever i essentially all of the stuff that i've done

with with finance pretty much all of it has been on chain on ethereum uh you know i haven't even taken a loan from the bank i you know obviously if i'm going to get a mortgage i have to do that through a bank it's very hard to do that through d5 still because it's very capital inefficient and um you know it'd be kind of like much riskier than than going through a bank as much as i'd love to do it on d5 it's not there yet um but still like everything else i'm doing on ethereum and there's a host of people that are doing this and that i have basically said well i don't want to use the traditional finance system at all like or anymore maybe they've just kind of like gone off completely and basically said i want to do um my financial activities on ethereum and

obviously i i kind of like talk about the benefits of this all the time on the on the refuel and ethereum isn't just for the financial side of things it's for basically everything i mean think about all the stuff that's happening in the nft space and all the cultural stuff that's happening there where essentially ethereum's kind of culture is being encapsulated in all these kind of on-chain digital items i guess you could call them or digital collectibles digital art and that's kind of being kind of uh i guess woven into the generational uh i guess shift that we're seeing within ethereum so i guess that's what i meant by this tweet but maybe generation isn't the right word because that does definitely uh i guess trigger people's kind of like mind to go to age bracket like then

they start comparing it between like you know baby boomers millennials all that sort of stuff but i still think it encapsulates exactly what ethereum yeah is it's a group of people who are extremely uh kind of aligned on on this mission to decentralize everything to basically get off the traditional system to get off centralization to custody their own assets to do all sorts of things in a digitally native way uh and i think that's you know the most exciting part about ethereum so i think maybe generation maybe it is the right word i don't know if you've got a better word i'd love to hear it but i think that uh generally it's just like a an easy way to refer to kind of all of us in ethereum today regardless of our age or whatever else i mean that's still the most amazing thing

i know i know i've spoken about this a lot um but i think this the most amazing thing about crypto ethereum in general is the fact that you can be part of this ecosystem and no one even ever has to know who you are i mean there are some famous anons on twitter that no one knows who they are or maybe their close friends are the only ones who know they are who they are but they have made a name for themselves whether that's been by publishing research or educational kind of like content or doing things like making themselves famous through on-chain activities all that sort of stuff and you know working for dao stuff like that and like adding value that way the fact that you know they could be anyone literally anyone they could be some 15 year old kid in india you know um doing it from his

like his home um on his laptop and and kind of like doing all this stuff and and and no one would ever know right or it could be some 85 year old in a retirement village who you know still got his wits about him and basically just uh contributing to daos and things like that i mean that's the most amazing thing to me at the end of the day uh and i think that as you kind of like as we progress through the development of ethereum and the option of the adoption of ethereum we're gonna see more and more of this happen i already noticed more and more of this happen over the past i guess two three years in 2018 and 2019 there was a lot less anon accounts on twitter that were at least kind of like semi-famous or semi-well-known than there are today and i think there

are a lot of people who have alt accounts as well where they'll have like their main account where their identity is attached to because they've already built themselves up through that account but then they'll have like an alt account which is basically completely anonymous and they'll start like saying things that they normally wouldn't say on their uh i guess like normal account which i think is another cool thing that uh i i guess like the internet in particular but uh but crypto allows you to do and it embraces it like crypto embraces it on imminency i mean this whole ecosystem was built on satoshi being anonymous right so yeah anyway i've got uh there's some more about this in the delight newsletter today if you want to check that out but i'll leave it at that for now so a random idea i come up with today i

don't know how many of you have played the game called rimworld it's basically a uh i guess uh the easiest way to describe it is like a simulation game where you can basically uh go in build your own kind of like world out um uh and essentially it's like it's very it's very time consuming because you have to go on there and you have to basically uh build up your colony uh protect it like do all this sort of stuff so anyone who played kind of like um i mean a lot of you probably played the sims and things like that and there's a bunch of these games out there where essentially you just build up uh i mean there's there's games like age of empires and things like that which are not like this but they're similar where you would build up your base and

and kind of like um progress through the game and and room world is very similar to this it's kind of basically like a colony builder or a colony simulation kind of like builder where you build out your own world um and i kind of put out this tweet where i said a play to earn games similar to rimworld but built on ethereum uh you know take all my money because i think that would actually be really cool because the one thing that actually stops me from playing these games all the time even though i really want to play them is i know that they're a time sink and i know the only thing i'm getting out of it is a kind of like entertainment value i'm not getting any monetary value out of it uh and i feel like it by because of that i'm not actually

um using my time the best that i could be but if there was like a play to earn game where i could actually build up my my kind of like empire or build up my kind of colony whatever you want to call it and actually earn money doing it that way i would feel a lot better about it personally i feel like i'm actually using my time more wisely even though i was playing a game and obviously we've seen the explosion of pl the play to earn genre with axiom infinity uh you know there's a lot of grindiness that goes into it too i mean for those who don't know what that means basically you're doing the same thing over and over again in order to achieve some kind of outcome um that's usually what these games are at the end of the day you know real uh real money or not they

a lot of them do tend to kind of like go to that specifically towards kind of like the the end game or at least kind of like much further along in building out your your kind of like colony whatever you want to call it um it does become like more grindy but i think that if you just if you think about like i guess ways we earn money in general or work in general a lot of it is greater you do it you you know it's repetition you do like the same thing day in day out um for a lot of different jobs so if we could monetize that um and uh with ethereum and then we could like make a video game out of it i think that'll attract a host of people i mean we've already seen that it has product market fit with axe

infinity but i think that there's much more that can be done here and dark forest is is um is one thing that i mentioned before the the the game that's on x die they've been doing a lot of thing a lot of kind of like trials around this and people have been really addicted to it actually uh it's really fun to see everyone get around that one that game but on top of dark forest you also have uh there's another game that was being teased i don't know the name of it but there's there's a few of these being teased and i think it just really fits in perfectly with what i guess crypto is it's essentially um a money game i've talked about money games before whereas you could evolve it from just being something that's specifically d5 with it where it essentially looks more

like a ponzi than a game to something that's an actual video game where you have all this gamification going on people like grind it out earn real money have like a real uh economy built on it with real money like not uh kind of like in-game tokens you can't trade for anything i'm talking about like real tokens that you can trade on unisop or something like that i mean we already have the the the financial system for this game built out on ethereum so all we need to do is put a game layer on top of it and the games can tap into it and the coolest thing about it and and this is going a bit probably a bit further than um uh then we're going to see for a little while but the coolest thing about it is all these games can talk to each

other too because there's i mean i've spoken about the metaverse before but essentially once you have like a shared infrastructure like ethereum a shared economy like defy you can have all these games that tap into the same economy so you could have like five different games tapping into uh compound for example or tapping into uni swap and or using all that infrastructure so you could trade your item from one game for another for another for an item in another game and i mean it goes way beyond that but you get you kind of get the point here so i think that's something really cool that i hope to see i mean as a big gamer myself like i still play a lot of games in my downtime i would love to see this come to ethereum i couldn't think of anything more uh exciting for me like gaming and a few

of my two biggest passions in life coming together that'd be really cool so i mean if you know of any of these games that i haven't mentioned or i may not be aware of definitely kind of drop it in the daily grade discord channel come and join the channel and kind of ping me on there i'd love to hear about people working on this or kind of games that are in kind of like sort of stealth but like still early stages but you know i kind of like trying to try to push this along here so preston van loon put out a tweet yesterday there's a hundred thousand blocks left until london activates on ethereum and main net so this was about 18 hours ago um for me right now so there's obviously less blocks than this but yeah i mean london is getting closer 1559 is getting

closer it is two less than two weeks out now this means the 21st of july fourth of august that goes live that's the target date finally here i just figured i would kind of like uh bring up like how close we are i mean it feels like yesterday i i think a lot of us in the ethereum ecosystem in like 2019 were talking about uh the fact that is one five five nine ever going to go to maine even in 2020 we thought we felt like it was taking so so long you know i think some people lost hope at some stages but it's finally here and i just can't wait at this stage so uh there's a few different things going on in zk sync so i've spoken about zk sync 1.x their major upgrade that they put for put through the other day i think about a week ago

now they put it live which allowed for a bunch of permissionless things to happen on their layer 2 network including um a lot of got to do with nfts permissionless token listings and trading and stuff like that uh so there's a few things here there's this tweet from mark who said um he did the first ever permissionless token listing to zk sync uh with dpi so the dpi the d5 pulse index is now supported on zk sync's zk roll up you can actually see all the tokens that are that are kind of listed here that are available all of uh and their addresses and everything like that as they exist on the zk sync layer 2 and then you have the index co-op saying that it's not just the dpi that's available but all their other indexes as well like the metaverse index the eth2x

fly and the btc 2x fly are now on there so you can basically use them on there and trade them on there which i think is really cool and then finally 0x mons who i've spoken about a few times on the refuel before is teasing a pseudo swap v69 which i think is just like a placeholder there um but basically a new uh version of pseudostop which is basically an nft swapping platform on uh i i think it's going to be on zk sync uh because they've been kind of like working with dk sync and working with layer 2s to kind of build a lot of nft stuff on there as well so really exciting stuff coming out of there i mean it may seem like the layer two space uh is moving slowly right now even with the deployments that we have like zk

sync 1.x deployed we also have optimism so unicorn optimism deployed and i went over kind of the metrics around that uh yesterday or the day before on the refuel uh but essentially this is the way it's going to be it's going to be kind of like getting people used to the taking and used to kind of like using it and and essentially on boarding onto it but i think it's going to be faster than um um uh than than many would would think just simply because a lot of people are used to changing networks now think about how many people change their metamask network to go on to polygon or to go on to bsc for example layer 2 is exactly the same you change your network you bridge assets across and then you know you kind of have those assets on on the layer two network

so i think a lot of people are familiar with that a lot of people that were priced out of ethereum's layer one um with uh and went to like bsc uh are basically uh able to come back to ethereum now and play around with the layer twos and obviously a lot of the centralized exchanges are going to be implementing the uh onboarding to the different kind of like side chains and layer two which is just gonna increase adoption there so all this is us basically just laying the groundwork developers laying the groundwork getting everything live so that when a lot of uh you know as as i guess the ecosystem grows and as the market gets hotter again we're going to have more and more people coming back into the ecosystem and more and more people being onboarded they're not going to be priced out of

ethereum this time i think that's something that unfortunately ethereum suffered from during the last few months over the bulma the bull run is the fact that a lot of new users that we could have on boarded went to bsc instead and then halfway through or at least three quarters of the way through the bull market we had polygons pos chain get a lot of adoption which um i i consider to be a much better than bsc obviously it is still what not not um what people refer to as a true layer 2 or anything like that but i think that socially it's much better but then i think finally the next time we have this bull this bull market kind of um or another bull marker or another market we are where we're onboarding like tens of thousands if not hundreds of thousands of people a day we're going to

have this infrastructure ready on layer 2 for them to play with they're going to be able to experience fully secured networks um where you know using their favorite apps like uni swap and you're doing nft stuff i mean immutable x as i mentioned the other day is also doing permissionless nft listings and things like that so all of that is is is happening and it's gonna it's gonna be ready for the next time we have this influx of people which i'm really excited for so sushi swap announced basically uh this uh new uh version of their amm called trident so they described trident as a new amm protocol built in-house by the sushi team with features never before imagined in d5 now this is a effectively sushi swap v3 but

they didn't want to call it v3 i think because unisop already had like a v3 on them so they wanted to kind of differentiate themselves there but essentially uh they've called it trident as well because it has a trident has three prongs which represents the three new pools that sushi swap is adding to their original constant product pool which is the 50 50 pool uh they have hybrid pools like kind assets in one pool reduces price impact weighted pools supports eight tokens at once so this is kind of like a balancer has and concentrated liquidity pools uh which is obviously what unicorn v3 has what i find funny about this is that sushi swap has kind of like come under fire a lot for you know people thinking it's just a a fork of unisop right because it did start out as that

but these days it's much more than that they have a whole ecosystem that's that they've been building and things like that and i've talked about that before but it's funny because a trident is kind of like a fork right so that they're like leaning into this meme of being a fork but also these three uh prongs the hybrid pools i mean that's curve essentially right like for like assets um in one pool trading that's kind of like curve uh well that is exactly curve weighted pools supporting eight tokens at once at once that's balancer concentrated liquidity pools that's unisop v3 so essentially they're leaning into this fork meme and and building out their own kind of like flavor of it but also um sticking true to their kind of like roots here which i think is pretty funny and i think it's actually a really good

uh kind of way of doing it and a really good marketing play here but yeah this was their major release that they or at least announcement that they had been teasing since uh i think a while now maybe a month i think i covered the teaser on the refuel but essentially they showed it off at fcc uh and you'll be able to kind of i guess get i guess get more information about this soon and it's going to be coming soon as well to the platform so cool to see more innovation or at least more um more competition coming out of the amm space because i don't believe that we should have just one amm that dominates or like a a two amm that amms that dominate i know there's like a power law effect going on but uni swap is still like 60 or 70 percent of the total market but

that's not going to last forever and we you know ideally we don't want just like a concentration in any one project and i mean i love uni swap i i've always loved uni swap but i don't think that it's healthy for the ecosystem to have uh essentially you know unicorn b most of the market share and and basically no competition coming to market and people kind of like not having a choice of where to park their capital or what or which projects to support and things like that so yeah uh cool to see this announcement from sushi swap i'll keep an eye on it and keep you guys updated when this is live and when you can play around with it so maple finance has unveiled their new landing page here which is a full redesign essentially of their website so i'd just like to disclaim here i'm a

seed investor in maple i just wanted to kind of get that out there but uh you know i think just to be critical of mabel for for a second here the old website that they had was very basic i actually i was not a very big fan of it but i knew that this kind of like redesign was coming so i'm pretty excited to see that it's now live um for those of you who don't know uh i i guess like what maple is it's more targeted towards i guess like um creating kind of credit for for corporations or institutions essentially um you know the lenders can generate yield by lending to top crypto institutions uh and kind of like borrowers can can um uh premium sorry premium crypto institutions borrow under collateralized through maple to expand their business so it's essentially a protocol that's trying to push forward

the undercollateralized are borrowing lending by using institutions as liquidity providers so i mean if you were to open up the kind of rpr you can you can see the liquidity pools that are available these are two kind of like trading firms slash institutions maven 11 and or falcon all trading and you can kind of see the pool balance and the cash balances here um and kind of like what you can borrow and things like that so yeah really cool to see this i mean you can you can see it on my screen the new design here it's much better than than the previous design i don't have the previous design handy but it was as i said it was very basic and if you haven't checked out maple finance yet i i highly recommend doing so it is definitely one of my favorite projects i

mean that's why i backed them and actually funny story about maple i met the two co-founders back in was it early 2019 uh so it was a while ago now and i was i wasn't even working in crypto yet i was working at um my old job and i met them at some cafe in in melbourne and it was just really cool to see that they didn't abandon the idea that like they they kind of built through the bear market and they've launched now obviously they launched a few months ago but essentially i just always love seeing these projects that essentially start from like a coffee date essentia uh you know like two years ago um and to see these kind of like go live and kind of um you know keep growing here so yeah really excited about that but as i said seed investor in it um

just kind of a disclaimer there so vitalik is back on twitter i think or at least he put out two tweets yesterday promoting a different blog post so actually i'll cover this blog post that he uh co-authored with georgios from paradigm here and this one basically covers uh real orgs after the merge in ethereum now obviously that the concept or the topic of re-orgs in ethereum has been a very hot topic lately i went over this on a refuel a couple of weeks ago uh i've got with um i guess the mev and how that kind of impacts things and i'm really really glad that vitalik and georgios have put out this post because i would consider them to be two of the smartest people when it comes to obviously the the mav kind of arena here uh and doing research

into this and kind of like coming up with ways to mitigate it or essentially i guess writing about it and publishing research on it so i read through the post here it's a very very good read i i really enjoyed it so i highly recommend giving it a read um but also i think vitalik he maybe a comment about like his twitter absence i think he he either said it on twitter or or in a comment or something or or somewhere but i think that he's tried to spend less time on twitter just generally and try to focus more on just kind of other stuff going on but i don't know if i think that's the best use of of his account because if you think about his account as what 2.1 million followers so him putting out this blog post here um and even just talking about the the

kind of like ethereum reorgs and giving his opinion on it carries a lot of weight like it's all well and good for me to talk about it on the refuel a couple thousand people will watch it and then you know they'll go on their way but vitalik putting together this post which is probably gonna read by tens of thousands of people and it's coming from vitalik right the creative ethereum like you can't get more legitimate than that i think um you know i i i wish for dalek did more of this i know he's active on e3 search he's still blogging he's active on reddit and i would love for him to just link to that and share that with his 2.1 million followers because that's a lot of people that are following him and a lot of people that could get uh a lot of value

out of um him putting a spotlight on things but i totally get that he wants to kind of limit his twitter time because it is distracting and obviously you know him i'm using his efforts and energy on on just like core research and development of ethereum is is much better use of time but just the marketing person in me just thinks that uh you know him putting out kind of like or just sharing things doesn't have to be things that he writes but just sharing things that he he finds extremely interesting or valuable for people to read goes a long way here but anyway i guess back to the point here on this blog post again definitely give it a read i think that it covers all of the concerns about re-orgs and it's specifically talked about what happens after the merge aka what does three orgs look like in eth2

now i discussed this when i was discussing the uh the real stuff a couple weeks ago but i won't rehash it here i want you to go read this blog post so i'm going to leave you hanging there and another blog post of italic kind of i guess uh i wouldn't say he co-authored it but he collaborated on optimism so with optimism on was this thing called retroactive public goods funding which essentially is a thi is a um a way that the optimism a solution sorry that the optimism team have come up with on how to sustain them sustainably fund the public goods uh so essentially the tldr tr after reading this post and reading through the comments on on twitter is is essentially uh the optimism team is going to be

committing to giving all of their profits made from sequencing um prior to decentralizing the sequencer to public goods funding experiments including the first public goods exit now i guess i'm going to break this down for you guys so sequences in layer 2 are basically block producers where the transactions get bundled and they get sequenced and then the block is produced and added to the chain and all that sort of stuff i mean i've spoken about this before on the refuel how a layer two protocol is essentially a new blockchain that just inherited security from ethereum um so that's why it's a layer two but the optimism team is going to be running the the sole sequencer and because of that they're going to be the ones extracting the kind of value from um i guess like the the use of

usage of optimistic ethereum uh whether that be kind of like fees paid to the network or excess fees or even stuff like mav so what they've committed to is that they're going to give all of their profits made from this back to i guess the community in the form of public goods funding which i think was was a pretty cool kind of like thing for them to do and a pretty good way for them to do it i mean i expect them to kind of have a token eventually as well so i mean it's good for them to kind of like do retroactive public goods funding here but i think that uh you know when the token goes live it's gonna get even wilder because there's gonna be different token incentives and liquidity mining programs everywhere and all this sort of stuff going on so i mean i highly recommend

giving this a blog post to read to get the full kind of rundown of what this is and and kind of like what it entails and and uh kind of the details of it there are a few comments in here about like people giving their opinions on it what it can mean you know why it's a good idea why it's a bad idea i think hazu actually didn't think it was a very good idea and he had a tweet somewhere if i can find it quickly i'll go through it um which i found interesting because i always like hearing people kind of like at least not going against um uh you know any particular person or idea but just giving their own perspective on it and uh no i can't seem to find it here unfortunately it might have been quote tweeted from from optimism's tweet here uh instead

maybe let me have a quick look here if not i'm sure you can go on houzz's twitter profile oh there it is there it is okay so how's it basically put out a tweet where he said i'm quite skeptical that this mav auction based design has any chance in the marketplace of roll ups so you donate all revenue from running the sequence set of public goods that's a heartwarming story but as a user i'll always stick with rollups to kick the mev back to me now i think in in this first kind of i guess like tweet has got like a little bit of his wires crossed here because he was talking more about the mav auctions which is essentially the act of auctioning off the right to do mav on the layer two so um this is another idea that the optimism team has had for

quite a while and has was basically saying that i want to use the layer 2 as a user that will give the mev back to me as a user instead of taking it from me as like a stealth tax or something like that and i mean i get that and i think that's fine but at the end of the day as i've said before i don't think i've said it on the refill but i said on justin's kind of like live ama that we did mev is just the concept of those in the know taking advantage of those not in the know and it mav doesn't necessarily have to apply to just like what miners or what people on the earth on chain can extract from unknowing people like through front running or sandwich attacks or or whatever mav can also refer to inside information for example like imagine if

you get inside information that a project's coming out with a major upgrade and they haven't announced it publicly yet but you think it's going to moon the price of the token well and you go by the token well you had privileged information you were in the know and those who um weren't in the know uh maybe they're formoing in they're pumping your bags or whatever um so it's kind of like that concept it's the same sort of thing here but the the debate kind of like falls into a couple of different buckets but i think the main bucket is what is that mav being used for so if you're auctioning off the right to do mav and you're essentially charging some kind of fee for this and then that fee goes back to pump to funding public goods whether that be funding the infrastructure uh needed to

keep these things running or funding all these open source teams that don't have a token and or funding bitcoin grants or anything like that um if that happens like is it fine for mav to occur and like does that mean like we've basically gotten rid of the negative externality of mav yes we're still stealth taxing um i guess users and a lot of unwitting users won't know that they're getting taxes why it's called a stealth tax and maybe tax isn't the right word but i think it's just a way that people kind of intuitively understand but if that kind of money goes through public goods is that like a net win and this goes into a large debate and this is very subjective there is no real objective answer here because you know who decides where the money goes you know who decides whether it's right

or wrong to take money from people i mean then you start getting into like the politics of it and it goes down a very deep rabbit hole that i'm not going to get into for now but still very very interesting i highly recommend giving the blog post to read and then reading through houzz's thread here which i'll also link in the description for you so finally jake shivinsky who's a lawyer he works at compound uh at least um the general counsel at compound labs here put out a tweet and he was quote tweeting uh the new jersey bureau bureau of securities orders cryptocurrency um uh of sorry the new jersey bureau of securities orders cryptocurrency company block fire to stop offering interest um accounts here

and this is a story from the other day where block fight kind of got targeted by um new jersey's uh uh securities i guess regulator to stop offering these kind of accounts because they were arguing that they were offering them on uh security like assets that were securities now in this kind of like i guess order they they said the and this is a quote that jake has kind of quoted here the bureau action comes amid rising concerns over the proliferation of decentralized finance platforms like blockfi and then jake had his own little comment here where he says new jersey thinks blockfire is a d5 platform that's how badly we need to educate our regulators now this is actually really scary i think it's very scary because the worst that could happen the absolute worst that could happen for defa

the worst thing that happened for defy is if regulators bucket the centralized exchanges the centralized services the crypto banks into the same bucket as d5 because then it all gets blanket regulated and there is no nuance there is no uh kind of like detailed analysis of these things they just think that oh well people are trying uh people are kind of like money laundering or people doing like illegal things or whatever and we need to kind of regulate this that's the worst thing that could happen so we definitely need to keep the education up but it's a hard thing because education isn't the only thing you need to do you need to lobby you need to pay or at least i mean you need to donate to these politicians which aka is a bribe but that's that's the game unfortunately because there are a lot of i guess like

vested interest in traditional finance that don't want this stuff to happen and you bet you're asked they're going to be i guess again being in these politicians ears and essentially saying hey you know you need to look at this you need to regulate this because it's you know it's eating into our business and it's unfair that they they are unregulated and we're regulated so i really really hope that we can get these regulators more educated here i'm not holding my breath because unfortunately i don't have very much faith in a lot of governments around the world i feel like governments are very reactive to this sort of stuff especially when it comes to new technology they are extremely reactive and they usually come very late into the game and a lot of them usually have preconceived ideas and notions about what this technology is and they kind of like put a blanket um

opinion on it which i think is is is pretty worrying but at the same time true d5 can't be regulated uh you can still access it but they can choke the the um the on ramps they can if they wanted to they could ban you from withdrawing from a centralized exchange to your own ethereum wallet uh which would actually kill most of the activity on on ethereum and would kill most of the new new users coming into ethereum so we need to be very careful that we educate them we make them we make them aware of the fact that a lot of this sort of stuff uh doesn't need to be heavily regulated because there's no central points of failure there's no one custody in the assets it's all self-custody it's all transparent because it's on a blockchain all those sorts of things so i'm hoping we can get to there we'll see

jake's doing a lot of good work in this area as well he's helping a lot of different um uh funds and helping a lot of different kind of like regulatory uh i guess bodies uh try to uh kind of get through this but at the same time it is an uphill battle it is a long-term battle and we have to remain vigilant when it comes to regulators i think but anyway i'm gonna leave it at that 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