Uniswap v3 hype, Dopex revealed and more - The Daily Gwei Refuel #113​​​​​​​​ - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 4th of may 2021 all right everyone let's get into it so i put out this tweet today and i kind of wanted to to go over what i said here and explain a little bit more about it but basically the tweet reads i'm at a loss for words these days we are currently witnessing the culmination of the hard work of tens of thousands of people over the last few years it's surreal to see the rest of the world waking up to ethereum and its potential thank you all for being a part of it now the reason why i wanted to expand a bit on this is because i think a lot of people think that i'm talking about the price when

i'm talking about this and i really i'm i'm not right i've personally always been in it for the technology um you know i know that's a meme but really i have the money is a means to an end as i've explained before you know it allows me to do the the refuel it allows me to do the newsletter allows me to do all the free education that i do um you know without kind of like having to worry about money and and i think that's that's you know very empowering and i think what money buys you is is time but for me and what i've worked so hard towards you know for all the time that i've been in ethereum is not to just make money it's to change the world like i truly do want to see ethereum become this kind of like global platform for

coordination not just for uh you know becoming the new financial system but also uh for coordinating humans in a much more in a much better way in a much more radical way as well so from that point of view you know just seeing like the world wake up to ethereum and its potential after you know myself and a lot of other people have been talking about it for you know since since i mean for me since 2017 for other people you know as early as as 2014 the really og believers um and then finally seeing you know our crazy dreams coming to reality all the things that we thought we were crazy about like you know one five five nine and and prefer steak and you know uh d5 and nfts and all this sort of stuff people are just like getting getting on board with it and actually seeing the

value in it so from that perspective uh you know the price i guess is a signaling mechanism it basically shows the you know the world that this thing is valuable and that's what i think is the most powerful thing about the price going up and obviously also uh you know from the fundamentals perspective it also increases the security of the ethereum network it uh ether as an asset becomes you know um uh more uh sorry the market cap of if goes up which means the asset becomes better at being used within defy and being used within staking and all that sort of stuff and also it makes the holders kind of like money and it gets them more aligned and gets them kind of more motivated to stick around with ethereum so from that perspective yes the price going up is good and everything but to

me it's always just been a massive signaling mechanism to the rest of the market to say that this is legit now that doesn't work for everything there are things that are like extremely overvalued like a lot of coins out there that are really overvalued but it doesn't even matter if it's true that this platform has you know fundamental value or not people just look at the higher price and look at something being worth a lot and kind of think to themselves well okay this must be legit because this works worth so much so it doesn't it's not true it's not true from for a lot of platforms but it is true for ethereum it's obviously true for bitcoin and whatever kind of like use cases that feels for people um and you know institutional kind of investors look at this and and they kind of like i think you know

as i've said before i think the price action right now is being driven a lot by institutional investors but they look at all of that and that's like a strong signal for them so you know i think if you've been around for a while you'll know exactly what i mean when i say the world is finally waking up because it took a long time uh it took a very long time for the world to wake up to ethereum and we we we definitely did feel like we were building something on the on the bleeding edge and we didn't know if it was going to work or not we had faith we believed in it we had conviction but uh yeah it's it's never a guarantee with these sorts of things with early stage technologies and you know i think a lot of stuff within the ethereum ecosystem is is definitely

not going to survive uh long term there's a lot of kind of like crazy ideas that are happening and lots of crazy experiments but at the end of the day that's what we need uh we need that to happen we needed to play out to get to those kind of um i guess like next billion dollar or or potentially trillion dollar protocols right one day uh you know and i think we've got a handful of those right now that i have a lot of confidence in that they have staying power uh i think maker is definitely uh one of those right and there's a bunch of other d5 out there but maker to me just seems like something that is just gonna have like such incredible staying power for such a long time it has such an awesome product market fit um and you know it's it's and the

market's finally pricing that in for maker 2 the mkr token has been going up a lot after staying flat for for such a long time so yeah um but outside of the price just like the fundamental drivers of all these things you know we have like you know companies like visa integrating with with ethereum and like settling transactions on there uh we have like all these i guess nfts um happening on ethereum bringing in a lot of new people so just looking at all those fundamental drivers and you know obviously we're going to do the merge which is a huge kind of historic moment for ethereum finally getting off proof of work and it's the first network i think to change from proof of work to proof-of-stake or maybe it's like at least it's the first big network do so the one that's like actually

you know worth hundreds of billions of dollars so that's going to be very exciting to watch play out but i'll leave it at that for now there's a lot more to get through on on today's episode um but speaking of of price uh justin drake actually put out another tweet today uh showing we're approaching ultra mark 3 here on the uh i guess ultrasound money uh chart that that that justin drake likes to put together here so it's funny because he's using the the 365 day moving average for daily transaction fees and if you look back it was only 551 eth on may 2nd 2020. now denominating an eighth is a bit funny because if you if you do this um to what the price was in may may 2nd i think it was around 300 or something so 300 times 551 eath

is a lot less than three and a half thousand times almost eight thousand eighth right so this equals about i think uh what is it maybe like 20 25 million or something like that um and this is obviously much less than that so if we kind of like take this uh basically the amount of fees that are being burned uh is just incredible right and i've gone through this a million times right i've talked about one five five nine ad nauseam and i won't go through it again today but i still think people are just going to be caught off guard by this when they're going to be seeing tweets everywhere people saying you know x amount of um eth was burned today because uh you know x amount of dollars of fees were paid and you know and then they're going to say like these fees went to the rest of the

fees went to miners or stakers and obviously once they've gone to stakers uh that the staking apy is going to skyrocket and we're just going to lock up more east i mean truly like i think people still aren't recognizing the implications of all of this i think that i think the market is definitely starting to price it in because people are waking up to it but still there's a lot that people don't see i think and it's just like a lot a lot of narratives right now um but i think it's good i think it's fine i think once we get to one five five nine being implemented it'll be a lot easier to show people how much kind of like eat is going to be burned and how much is being burned and all that good stuff there so yeah interesting tweet from justin again i

love when he puts these out it's one of my favorite charts if not my favorite chart uh to look at kind of like the fundamental value driver of eth and kind of i guess um you know what what we're going to what we're going to be seeing uh once the merger goes through in terms of like issuance per year being deflationary which is really really exciting so a little reminder here uni swapper v3 is launching tomorrow now i don't know if i'll be doing tomorrow's refill before it launches because uh the unit swap team is based in new york and currently at time of recording it is 9 20 a.m in new york and i record the refill about the same time so maybe it's not launched by then um but regardless of that it's still launching tomorrow and hayden has teased and i missed this a couple days ago but

he teased that there's a fun little surprise feature planned for the uni swap v3 launch now i wonder what this can be my dream scenario is that unisop v3 launches on both l1 and l2 at the same time i'd probably doubt that's going to happen considering that i haven't heard much out of optimism lately um and obviously unicef v3 is launching on optimism so i expect them to launch an l2 like soon after r1 but maybe not a simultaneous launch which is something that i would actually love to see but but maybe not um but i do wonder what this fun little surprise feature is like i i can't think of anything off the top of my head um you know on the spot especially you know the uni tokens already on every major exchange so it's not anything got to do with the token

um and we already know about all the like the core details for v3 and like the headline kind of features that are coming with v3 so yeah i mean if you've got any guesses of what it is uh make sure to leave it in the in the comments section but uh i'd love to see if any of us get it right i mean my i'm just going to say that my kind of like bet is on an l1 and l2 simultaneous release even if i think it's a low chance that's my my bet and that's something that i actually want to happen so we'll see how that plays out but yeah just uh it's gonna be crazy i think i think uh you know uni swap has such an amazing brand here uh you know hayden's got an incredible amount of followers 108 000 for someone

who hardly tweets he doesn't he doesn't tweet very often um and you know unisop is just such a well-known brand that v3 has been hyped up like to the moon and back and you know for good reason v3 is going to increase capital efficiency across d5 in a really big way so i can't wait to see that launch tomorrow but we'll see if it launches before the refill or not i'm not sure how early they are they want to launch it um in uh based on the east east coast time here but if not it'll be covered in the the next day's refuel but uh yeah very exciting times ahead in the next uh i guess like 24 48 hours so coinbase announced today that they uh i think this is their official account actually coinbase news i've never seen this account but uh it goes directly to their blog so

yeah um it must be official but anyway they announced today that they uh have teamed up with uh soda beers i think so to be so the buyers or something um i think that's how you say it i think it's so the bees um which is basically an art house but they've announced a collaboration um with them uh with coinbase commerce commerce to allow bitcoin and ethereum as payment for the purchase of a banksy image at their may 12 evening auction this is really cool i mean this is just more crypto i guess like native stuff getting integrated with the old world so to speak um you know so the business is like christie's that other art house that um uh that that people sold his piece on uh you know this is very uh i guess like outside of crypto but the fact that they now accept bitcoin

and eath is just really really cool you can just use your your you know you can use your ethers money right as we say um uh which actually i didn't even i didn't even think of that before but um yeah definitely uh just another kind of i guess uh check mark you know another kind of like validation of eighth being money here so yeah i mean i'm not i don't think like uh i don't know who's gonna be able to afford this thing like the a banksy nft piece or at least a banksy piece is is gonna go for a lot like uh obviously millions of dollars here maybe even tens of millions so i'm curious to see what happens there and i'm curious to see if someone purchasing with bts or eighth is the winner uh so yeah gonna keep an eye on that one

for sure so elias from bison trails tweeted out this uh really interesting start saying that one percent of all btc that will ever exist so one percent of the 21 million now lives on ethereum so this isn't just one percent of the circulating supply this is one percent of the total supply which is even crazier um and i've long held the thesis that eventually and i know justin drake also holds this thesis if you listen to his um he's bankless podcasts uh he goes through this but i've essentially believed for a long time that eventually btc is just going to live on ethereum as a token and i know this is like the most unpopular opinion ever maybe not to those watching the refuel but to obviously bitcoin is this is like something that is like sacrilege and how

dare you say this but if i think about um bitcoin and bitcoin the network's long-term security um with a capped supply it doesn't work it doesn't work and and another couple of hardenings there's going to be some instability issues there and even if the fees made up for the loss in block rewards um there's been research that shows that having a high fee blockchain is actually uh a security risk as well so i do think that right now the btc has been migrating over to ethereum at least over the last year or so because of the exposure in d5 of course so the utility there and this does show that people value your utility above like so much uh above like most things and that's always been my investment thesis for eth is that its utility

um and it's like sound money properties or ultrasound money properties would propel it to being worth more than bitcoin and i and i still to this day believe in the flipping i believe in it more than ever right now um but ever since like i discovered ethereum and ethan kind of came to terms with the the fact that i truly believe that the utility value is worth more than just like the belief value um yeah i've believed in the flipping there but still fun to see you know one percent of btc on ethereum here and the funny thing is is that this is not like btc on ethereum is not a special asset it's just like any other asset on ethereum whereas ethe is actually a special asset on ethereum and it sets itself apart from all the other assets and all the other tokens

it's the only trustless collateral in d5 it's the only asset that can be used to pay fees and post 1559 it'll be the only asset that gets burned with fee revenue it's the only asset that can be used uh in staking right it is the natural unit of account and and medium and exchange for ethereum because it's used to pay gas fees so it's just that kind of is ability there it's going to be the moe and uoa of layer 2 solutions so eth as an asset is very unique on ethereum it's basically ethereum's national currency whereas btc is like a foreign currency it doesn't have any special powers you can't pay fees in btc um directly to the chain maybe you can do meta transactions where you pay fees in btc and in the background it gets changed for eth and then eventually settles on the ethereum

network as e for fees but um you know that's not the same thing as just paying directly right and that's actually good because you're still paying eight you're still burning eighth post one five five nine here um so from that point of view uh yeah btc just like any other asset on ethereum uh besides each so it's like any other token so to speak it has no special privileges and you know a lot of this btc is actually um wbtc which is a centralized tokenized version of btc so it's even you know it's even i guess like worse than some of the assets on ethereum because it's centralized so yeah i think just uh it's fun to see this it's fun little metric here and it just shows that ethereum is the global settlement layer it is going to suck in all types of value no matter what it is

because the ethereum network gives you so much utility um and at the end of the day so trent uh put out a tweet here today saying that the ethereum cat herders who i've spoken about before they basically cover uh you know eth1e2 developments in a really good really nice kind of like um i guess it's fortnightly update here uh but they essentially have a newsletter now so you can sign up here and it'll basically give you a uh i guess an email straight to your inbox of all the upgrades happening at the protocol level for eth1 and eth2 so this becomes one of the best ways to keep up with uh you know ethereum protocol development i still think eth2.news is a really great resource for keeping up with eth2 but ethereum cad herders is probably the best resource for keeping up with eth1 so if you haven't signed up to this

newsletter be sure to do so it'll be linked in the youtube description below for you to go check out so tz talk chad on twitter today has announced uh their new project called dopex or decentralized options exchange that's what dopex stands for so this is another i guess like options exchange protocol on ethereum there's a few of these now i think there's over 10 of these on ethereum right now but um you know uh tz talk here basically says that uh currently all of these options protocols uh share some some some problems right such as low liquidity unfair pricing um lack of compressibility lack of user adoption lack of protocol adoption and unfair up opportunities during times of high volatility

now he goes on to say well solving all of these problems may seem like a difficult task uh his team at dopex have spent uh his i don't know if it's it's a he or she i should say their team maybe it's like satoshi right we don't know exactly who they are but their team has spent quite a bit of time thinking through and building the product and structuring their early partnerships through highly increased dopex's chances of solving them without compromising on the buyer and rider experience here so there's a long thread here explaining exactly what dopex is what it does what sets it apart all that good stuff and they're backers some of the you know the the premier anons within the space like tetranode and defy god with a bunch of others other kind of people on board as well here um so yeah if you're interested in

checking out this it'll be linked in the youtube description you can go read for full details here but it's definitely an interesting project and i am yet to see like a truly great decentralized options protocol on ethereum just yet i mean open and ribbon finance and there's like opium and hedgic there's a bunch of them out there right now but none of them have kind of achieved i guess like some significant growth just yet significant sustained growth so i'm interesting to see if dopex solves that here but yeah definitely go check out uh this thread which will be linked in the youtube description below so this was quite interesting and i wrote about this in the delegate newsletter today but essentially the maker foundation transferred the remainder of its dev fund which was 84 000 mkr or 464 million dollars to the make a

doubt which means that the uh i guess like centralized maker foundation does not have control over this money anymore the mkr token holders now have control over this as part of the uh the governance process that make the maker protocol goes through and obviously the maker foundation has done this to increase a maker's decentralization and the foundation actually wants to dissolve itself as well it wants to kind of um you know get get rid of itself which is obviously a key part in maker's decentralization journey here so this is this is cool and what i wrote about in the newsletter today was this concept of like dao treasuries right where there's a lot of new projects specifically d5 projects launching these days as as a dow first and then they have like a massive treasury because

they keep most of their tokens in this treasury instead of giving it out to like you know whether it be team investors in a public sale or whatever and unisop is the clear example here of something that has like a massive treasury their current value of their invested treasury is about 7.4 billion dollars and then they've got more treasury vesting out over the next i think two a bit years which is a further i think maybe 16 17 18 or something billion dollars so it's a huge amount of money right and what they can do with this treasury is that they can actually use this to do things like fund and grant programs which unisop has right and and so to a bunch of other apps out there but fund grant programs do liquidity mining programs you know maybe sell some tokens to strategic investors

to diversify the um the treasury um you know and basically do whatever they want and you know pay contributors to the protocol as well people to work for the protocol which is exactly what maker's doing now the maker protocol is has like a bunch of people on the payroll and i'm assuming this mkr is also going to be used to kind of fund that but also what's what's used to fund that is the revenue generated by the protocol as well which token holders have a claim on and can vote to do whatever they want with um which i think is really really awesome and this is in stark contrast to what we saw happen in 2017 where a lot of default projects launched and they didn't launch with like a treasury that token holders could govern over they would typically sell a lot of their

tokens in an ico which would obviously go to speculators and it wouldn't go to the people that you wanted it to go to and i think when launching a token and distributing it you need to get it into the hands of long-term contributors and the way you do this is essentially paying it out two contributors to the protocol early on and i think the team that has done this best or the dow that has done this best is the index co-op now the reason why i say this is one i'm closely related to the index call but i follow it quite closely because of my involvement with set um but two i truly do believe like from all the teams that i've looked at and all the dials that i've looked at and all the token distributions i've looked at index co-op has done it best because

they got their tokens into the hands of early contributors when the token price was much lower it was like two to four dollars back when um contributors were being paid like um large amounts for their initial you know early work and now it's worth almost 60 dollars the token so these early contributors are up anywhere from are up like you know 20x or something if they uh if they basically got it at two dollars and they held on to it so you essentially what you do is you make your early community rich right you make them you know basically uh socially and financially aligned with protocol and then they just keep working for the protocol right some of them can retire from their jobs or quit their jobs and just work for the protocol um some of them use that money to better their lives or whatever

and they feel this like kind of i guess obligation to keep helping the doubt out so i think that is a very different model to what we saw play out in 2017 it's a much more sustainable model it's a much better model for bringing the right people on board so yeah kudos to the make a foundation for doing this this is not a small sum of money uh and i'm curious to see how the maker dao i guess uh distributes this going forward so a big piece of news out of paypal uh well i guess from the block here where they basically said paypal has held exp exploratory talks about launching a stablecoin um so essentially i guess this article doesn't go into too much more detail here but it does say one thing which i thought was weird where it basically says that ava labs the team

behind the avalanche blockchain is one of the organizations that has held talks with paypal over stablecoin development um and it just says here one of the organizations so i'm going to assume consensus has talked to paypal because consensus i would consider ethereum's enterprise arm um and i would assume that some of the other kind of chains have obviously gotten into contact with paypal and trying to like woo them over but i would be surprised for paypal to launch their stablecoin on a smaller network i mean i would obviously love them to launch it on ethereum or an ethereum layer too and i think it would make a lot more sense but at the same time does paypal really need to launch a stablecoin shouldn't they just partner with something like you know coinbase and circle uh to basically do uh you know help along with usdc do they have to launch

their own and i'm sure their own would probably be good and more profitable to launch because they could integrate it with their their entire like payments network on paypal and they have like hundreds of millions of active users but i just do wonder like what the what the kind of aim here you know does it end up like a libra situation or a dm i think it's called these days from facebook where it just gets stuck in development and regulatory hell um or does it become like the premier way to pay on paypal eventually so love to see how that plays out um but i do i will be surprised if it launches on something like avalanche not that i dislike avalanche or anything like that or i think it's a bad chain i just think that if you're going for network effects right and you're going

for um settling on a secure network that's proven itself over time then you definitely want to do it on ethereum or maybe an ethereum l2 but we'll see how that plays out exciting news regardless i think the next bit of news here is that uh the ebay uh ceo basically said on a cnbc interview that they're exploring opportunities on how to enable nft selling on ebay now i don't think this is actually anything special like i don't want to sell my nft on ebay i don't want to buy nfts on ebay i want to do that on crypto native platforms like open c right or any of the other platforms out there like there's there's a bunch of them now i think it's like 15 of them um but still this just validates nfts even further it gets more eyeballs on it

right opens up the nft market to a bunch of newer kind of customers here on ebay rather than you know a lot of these customers aren't going to be using the crypto native solutions but again as i said i don't think that this is anything special it's just the i guess traditional world uh i guess merging with the crypto native world which is we're going to see more and more of this happen but my long-term bet is on the crypto native solutions rather than these i guess uh centralized solutions and i mean these centralized solutions and these kind of old traditional solutions are going to be i guess uh integrating across like not just nfts but with d5 like i expect eventually banks to be plugging in and people will use these centralized institutions because they they trust them and they want them to

basically handle all the hard stuff for them and that's fine i guess it just like opens up the pool of users we have that can access all of this technology and i think you know when you think about ebay as a platform it's like the the boomer platform right it's part of the old world the old internet which is hilarious because like um you know ebay was definitely a breakout app of the of the early internet here um but yeah still fun to see this i wonder if they would have like a separate section for nfts rather than a uh you know put it in the normal flow when you search on ebay i would think they might and maybe they'll just start like an nft marketplace themselves but that that is getting very saturated right now because you have as i said you have like open c there's like

foundation and super rare and wearable i mean there's so many of these platforms now that i think that is going to become saturated and over time there's only going to be a handful of big winners here but ebay has the advantage of having a massive user base already so we'll see what happens i guess like you know the ceo just saying things like they're exploring opportunities means that they're probably still in the early phases of this they probably haven't built anything outside of maybe a proof of concept so and they're about massive organizations so they obviously move slower than the smaller startups in the ecosystem but i'll uh i'll keep an eye on this and see what happens over time here so uh this is the last bit of news i wanted to talk about or i guess like stats i wanted to show so dude analytics posted this tweet

yesterday um and basically saying that dex volumes have are a hundred times higher than they were in april of 2020 for april of 2021 which is absolutely insane right um and and the total volume for april landed at 77.5 billion dollars on decentralized exchanges here and unisop obviously dominated now i went over dex volumes on the on the daily data pump which you can check out if you haven't yet so i won't rehash that here uh but you know i actually want to draw attention to this now where do analytics said now let's see what unit stop v3 can do with these numbers now i don't think so it's an interesting thing because unisop v3 as i said i was saying is going to bring like

intense capital efficiency into d5 because it allows you to do concentrated liquidity which means that you can get more bang for your buck so to speak right you can get more volumes through it but unisof v3 on l1 doesn't solve the current gas issues that's pricing out a lot of users so i think unisop v3 on l2 is what's going to drive these volumes up to the next level and get us to a trillion dollars traded a month in in on dexa's right and not just uniform on l2 but also the other dexas like uh balancer and curve and and sushi swap and 0x and all the other dexers out there once they all migrate to a layer two that's when i think we can we can keep growing because as i showed in the data pump episode i think the last four months the the volumes have been about the same

and that's because like i think we're just not bringing in these new users because they're using the cheaper chains right now the more centralized cheaper chains like bsc um and some of them are using like uh the polygon and and there are some out there like loop ring that are on l2 already and diversify and things like that but none of the breakout l1 dexers are on l2 just yet and i do think and i've written about this before that unisop and l2 is going to be a game changer it's going to absolutely show the world that ethereum can scale and it can scale with a with a wonderful user experience uh with like um you know very cheap if if free transactions um you know free trades on uni swap and and very fast right much faster than main net because mainnet will take you you know anywhere

depending on the fee that you pay can take you from anywhere from 15 seconds to a minute or whatever whereas on l2 it's much faster and gone are the days of like out of gas era right gone are the days of like reverted because it took too long to mine the transaction so i think l2 is definitely going to be a massive game changer here not just for costs and speed but also for those little things that i just mentioned so yeah we'll keep an eye on that but v3 launches tomorrow as i mentioned at the start of the refuel i'm kind of very very very excited for that actually uh and and very excited to see how the rest of the ecosystem uh takes it on here but yeah that's it for today's episode so thank you everyone for listening and watching be sure to subscribe to the

youtube 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