Uniswap v3 live, Aave growth and more - The Daily Gwei Refuel #115 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 6th of may 2021 all right everyone let's get into it uh so today i actually did an ethereum monthly update that i usually do and i think it's been a couple months since i last did this with alex saunders of nuggets news here but we basically got on with alex we talked all things ethereum of course i talked about you know ether as an asset uh scaling competitors you know competitive blockchains and things like that and you know we basically went back and forth about that it was a really great conversation went for about 45 minutes you can see here so if you're interested in checking that out i'll link it in the youtube description for you and definitely go

subscribe to alex's channel he does a lot of great stuff fellow aussie as well which is really cool um but yeah definitely go check that one out so i think obviously the biggest news of the last 24 hours was the unisop v3 mainnet launch now we all obviously knew about v3 we knew what day it was going live we knew what features were coming and all that good stuff so i think the launch was a bit muted because of that where it wasn't like it was a surprise or anything everyone was expecting it then it launched and everyone's like okay well cool let's migrate our liquidity across and i i think there were some issues with migrating liquidity across with metamask um because of some some kind of bug and then people needed to kind of do a workaround or there may have been some issues with like hardware wallets

or whatever but yeah there was a bit of a little bit of a bumpy bumpy start there but um you know i think that they're kind of working through it but essentially yeah this is really cool to see v3 uh finally live on main net and you know the coolest thing about uni swap is that they the unisop contracts are non-upgradable which means that v3 is an entirely set of new contracts and v2 still exists and will exist forever on the ethereum network same with v1 there is no admin key so they can't you know delete the smart contracts they can't upgrade them they can't change them they have to redeploy the whole protocol every time they want to do a new version here which i think is actually really really cool um and it means that you know unused is really truly decentralized like v1 v2

and v3 are all truly decentralized here i think v3 has some governance field features built in as well so obviously token holders will be able to to kind of directly govern the protocol here they may switch on the the fee capture right the um the the the fee capture where uh 0.05 percent of the fee goes to uni token holders and 0.25 percent goes to the liquidity providers but they haven't done that just yet and maybe they weren't for a while but yeah essentially v3 uh brings with it those headline features that we all know and love like the biggest one being concentrated liquidity which promises to offer much better efficiency for for the liquidity that's provided on unisport pr uh as well as be able to launch a whole new suite of products that people can

create around this where you can basically have for example a yearn vault that is like a unisop lp strategy and it will do all the work for you instead of um you having to manage your position yourself but you know the design space here is is is insane there's a lot that can be done here i think no one really knows how this is going to play out exactly the hypothesis is that passive lp or passive liquidity providing like what happened with v1 and v2 is not entirely dead but it is like much less i guess like profitable than just like doing active lps here so the consensus seems to be that a lot of people are just going to be going through these things like urine vaults or any other products that come out i come out with it

so any other projects that come out with a product like this to do this automated alpine here which i think is fine i think that's cool i think it's a net positive for the ecosystem and there's going to be other projects that still allow for passive lps like you know sushi swap still allows it and and um things like loot brings layer 2 exchange stuff like that so we've got like a bunch of different amm designs that are live on mainnet right now which is which is i think really healthy for the entire ecosystem uh and the last thing here that was really cool is that each position because of the fact that they're concentrated liquidity positions now each position is actually represented as an nft instead of a erc20 token now so essentially what this means is that uh uh with the way the way uniform is set

up here is that each position um is represented as a unique piece of on-chain generative art so you can see the the kind of nft here so if you were to provide liquidity for say the uni um weak pair here it'll give you this nft and you can see this in like your wallet and you know i i was looking at a rainbow wallet today and kind of looking at how it looks there and it looks really really cool um rainbow is a mobile wallet for those of you who don't know it's a really really cool wallet um but yeah i think that's a cool little feature there and it really does i guess um you know give give something to people uh to kind of make up for the fact that these positions uh are not ese 20s anymore because there were some concerns

around that saying that while lp positions aren't fungible anymore so how do we use them as collateral and things like that and there's ways around that you can do like wrappers and stuff like that and and there's like the smart people kind of working on this so i wouldn't worry too much about that but yeah definitely a little bit of concerns there around that but i'm sure we'll figure that out and finally here our developers can obviously start building on unisop v3 immediately there are a bunch of integrations that already went live as well so if you do have liquidity on v2 you're not required to migrate it but you can and it's pretty easy i'm pretty sure that they have like just a simple migration tool here um that you can use and as i said there has been some bugs uh with that at the moment which i don't

know if they're fixed or not yet but maybe they will be fixed by the time you watch these videos so yeah but exciting i'm cu i'm very keen to see how this plays out over the coming months and actually i want i'm really excited about seeing how the other amm projects respond to this especially curve because there's some concerns with curve that union swap's going to be able to offer a more competitive stable coin swapper uh than curve is and kerb's working on their v2 they've already teased that but i'm very curious to see how that all plays out because it's it's up in the air right now so yearn finance tweeted out a link to a forum post today that basically details what you can do with your wi-fi tokens now wi-fi as a token has had a colorful history right it fair launched

um back in i think it was august or september or july even i i think maybe it was july um but basically it was fair launch you could liquidity miner for for a few weeks there uh there was no team allocation there was no vc allocation um and then you know uh you could stake your wi-fi tokens and you would get a portion of i guess like the fees generated by the platform now what ended up happening towards i think the end of last year or maybe early this year the um governance kind of voted to take those that fee capture off so you couldn't stake your wifi tokens to earn fees anymore because it really just wasn't worth it they weren't it was worth um kind of like i guess printing more wi-fi tokens to give to the team and give to the treasury to be able to

develop uh the the protocol more instead of just pay and doing like a i think they change it to like a a buy a buy back and and build uh sort of model where they would buy back wi-fi from the market using the fees generated and use that to also pay out to contributors and things like that so on that note and the reason why this post exists is that people are wondering about like okay what can i do with my wifi now that i kind of kind of own it here and i still have mine and you know mine's just used as collateral i have it on rv um paired with all the other stuff i use collateral um but in general like that's not the only thing you can do right you can do a bunch of other stuff here as detailed here so essentially

uh you know you can you can basically uh uh lp uh single-sidedly in bancor right now with wi-fi bnt it's one thing you could do uh you could do you could put it in make a dao it's like a vault or whatever put on r there put it on all these other money markets like unit protocol and cream and stuff like that and this isn't just like uh here's a list of what you can do they also go through essentially uh kind of like the risks associated with it um and the insurance that you can get on it the uh the kind of assumed apy here and how they derive that api and stuff like that so i think this is just like a really um awesome resource of people who hold the wi-fi token because it's not just shilling you on places to put it it's

also telling you the risk associated with it which is something that i think a lot of people seem to miss is that anytime you interact with any smart contract right there's risks associated with that and sure there's some that are less risky than others you know for example maker is is less risky than i would say make is the least risky protocol to put your kind of like funds into uh in terms of like you know it's been around for the longest time it's been audited by like everyone you know who's anyone that's been formally verified all that good stuff but on that note um you know there's still risks there and you should be aware of the risk before you do any of this so i'm very happy to see that here but yeah if you're interested in this and you hold wi-fi tokens and they're just

sitting in your in your wallet and you want them to be more productive you can definitely go check out this foreign post which of course will be linked in the youtube description below so scoopy triples from alchemix is teasing al-eth again so for those who don't know uh currently the alchemics protocol just has the al usd vault and the next vault in line is al-e which will basically allows you to stack eighth now i'm obviously super excited about this because i want to ape into this and and basically stack eighth but again i will stack as much as i can using my eth but again there are going to be risks associated with this it's going to be a brand new kind of vault here um i'm not you know i'm personally not going to just put in all my ether once so to speak uh and definitely make sure

these things are like audited and all that sort of stuff and and you know if you're comfortable taking on the risk then then all for it but i'm curious to see what the apy is going to be like on this vault um you know if there's going to be a lcx rewards on it um which would actually if there was a rcx rewards on it i would assume that's going to attract a lot of eth because eth as an economic asset within ethereum is unmatched like there is nothing else with that much uh liquidity and that that high of a market cap on eight not even close i think the the highest market cap token is uni which is 30 billion or something fully diluted or maybe 40 billion um whereas uh if eath itself is like 400 billion dollars so there's a massive thing there's like

almost a 10x probably an over 10x gain there and um uni has way less holders than eth2 right and you know uh uni is uh is a bit different it's not like fully trustless and all that sort of stuff as well so when you kind of look at that um you definitely kind of i get like a get like a big difference there so very excited about this i wonder when it's going to come out i hope it comes out really soon i would love to to see you know how this plays out i would really love to see how much uh kind of look how much ether draws in uh and you guys know alchemix is one of my favorite projects within the ecosystem um you know i've i've used it a lot you know i'm a heavy user of it uh and i just really love what they're

doing here so yeah if you haven't checked out i'll commits yet be sure to do so uh but i'm going to leave it at that because i don't want to don't want to show it too much there so peter from the go ethereum team put out a tweet that uh the goal ethereum client version 1.10.3 is now is now out and they've basically done some major upgrades to snap sync here which is basically a faster way to sync the ethereum blockchain so uh this will probably be the last release where the snapsync mode isn't the default sync for it so you know i mean you probably won't even notice this if you upgrade uh it'll just like um you know for i guess like if you upgrade you've already got like it's synced um so you're not gonna notice that but if you're running a kind of like i

guess a node from the beginning it's gonna in the next release uh peter says that it it's possibly gonna just default to this sync mode so if you're not running an eth node yet eth1 node you should be um and i think that it's not hard to run one especially with things like snap sync uh if you've got like a spare pc or even on your like your main pc that you just leave on all the time um you know you should consider running one you've obviously got to have i guess like um the requirements for doing so like hardware but also bandwidth running in each one node is is definitely heavy on the on the data um it's not going to slow down your network necessarily but it's going to chew up a lot of data so if you're on a connection where you don't have

unlimited uh data as part of your internet plan then it's probably something that uh you might not be able to do but if you do then in my mind there's no reason not to be running one i think uh you know it's not gonna increase the costs of i guess like your electricity cost or anything if your computer's already on all the time um you know it may i mean negligibly negligible it might be an increase but it may be kind of negligible because of the fact that you you know your computer might be working a little bit harder than it normally does but in general i just think you know anyone who can run a node should run a node if you care about decentralization you care about keeping the network you know as decentralized as possible then you should definitely do that so yeah go check out this release if you

have if you're already running a node then definitely go upgrade to this latest release from geff here so speaking of uh core protocol stuff a super fizz from the eve staker community put out his latest video on on his youtube channel called state of the state number 45 which is basically running through ethereum client diversity and how to solve for it now i'm not going to describe the whole video because i highly recommend you go watch it yourselves but super fizz is one of my favorite people in the eat staking space he has a very sober view on the staking space and his thoughts around client diversity uh which i've spoken about before on eth2 right with with client diversity and why that's important um his thoughts are very good he's a lot closer to staking than i

am and he said things that really resonated with me and actually one thing that really resonated with me was that you always need to ask the right kind of questions here it's not like okay why is client diversity important it's like i can't remember exactly what he said but essentially it was like you know don't ask why client diversity is important ask why the ethereum network is targeting client diversity right because most of the other networks out there don't have more than one client like even bitcoin only has one client i mean dominant client that like makes up most of the network like 99 of the network whereas ethereum has always tried to be multi-client both on eth1 with goal ethereum and um never mind and basu and parity that's now um uh open ethereum right or at least open

ethereum is a fork of parity parity still exists um and in eth2 we obviously have four clients which i've which i've gone through before but yeah i'll leave it at that because i really want you to go watch this video and definitely subscribe to to superfizz's youtube channel if you're interested in keeping up to date with uh staking things he is basically the the go-to um and he's the person i always talk to and ask questions too if i have any kind of um i guess like burning questions about staking so yeah definitely go check out that video there so mark zeller azala from ave here put out an interesting update tweet where he says basically giving the state of arva so at the moment they've got 17 billion dollars of total liquidity across all kind of chains that includes ethereum and polygon um so i guess it's just the two there

but uh they're on fire they're they're on track to do one billion dollars of annualized protocol revenue um and two billion dollars of protection funds uh in state are there uh 1.25 billion dollars of community award chest uh with you know uh with basically their treasury which is which is a huge amount uh and i've spoken about the d5 treasuries before and how they're getting up there like in in value like you know billions of dollars like uni swap and and are there and like there's a couple of others that i can't remember off top of my head we were in the billion dollar club um uh but yeah on that note uh the world chess is also growing by six hundred and fifty thousand dollars per week which is which is insane right that's that's huge for for rv here uh and uh 2.5 billion dollars on on

polygon um alone right on on on the uh the scalability solution are polygon here so alve is i mean just as a side note here other is one of my favorite projects in the ecosystem for a number of reasons but i think the reason that that really resonates with me with i mean really really speak to me with arvi is that they are a bear market darling just like synthetics is right just like kind of like uh make a dao is but but really are there because when when you kind of like think back to abe's origins they started as eth lend they did an ico where they sold this lend token which is now they are their token uh and then it ran up with everything in 2017 of course and then it came down and the token value lost like a ton i

think even it even went down maybe even 99 percent from its from its top and i think it bottomed out at like a five million dollar market cap i don't remember what the price was because there was a conversion when they did obviously i'm not going to try and quote prices here but essentially a five-ish million dollar market cap now the last time i checked i can't remember exactly but i think it's at like four or five billion fully diluted um right now so this was publicly available to anyone you know during 2019 um or 2018 2019 so to speak so you could have bought the one of the top d5 projects for a 5 million dollar cap and um obviously like they didn't have a product back then either they launched their v1 in january of 2020 but if you had been following the

project developments and following it all and you obviously believed in d5 and things like that i mean sure it's easy to say now but if you've been following all of that and there are some people that did this you would have been able to buy ava back then you didn't didn't even have to buy much right you could have bought like you know a few thousand dollars worth of um i guess len tokens at the time and just ridden it up to where it is now now would you would you have hold held that and all that sort of stuff i mean let's just assume that you were uh kind of like diamond hands investor um and you bought it and then you just held it till now i mean you made a lot of money right five million to five billion that's a thousand x

like you know you put a thousand dollars in you made a million bucks um there's not many opportunities like that anymore on the public market i mean i would venture and say that like you would be very hard pressed to find something that is an investment that will go 1000x on the public market that isn't just a pure gamble obviously there's this there's all these gambling stuff going on like safe moon and whatever but if you look at the the projects that are based on like just pure fundamentals that you'd be comfortable holding good luck getting a thousand x like if i'm i'm just being honest here like it just it's it's so hard because all the newer projects or a lot of them um they obviously raise capital from like vcs and early investors and by the time they hit the public markets they already have really large market

caps of of many hundreds of millions so for you to get a thousand x at a hundred million that wouldn't it would need to go to a hundred billion dollar cap and i you know some of these will do that but the thing is that's going to take much longer than it took for aver to go from where it was to to there so outside of the price as well you know i remember meeting stani the founder of ave at uh where was it um osaka for devcon in 2019 so it was september i think or august or whatever or actually maybe it was october it was it was late um i met him there and he was so passionate like just bleeding passion um about about what he was building and like super excited about it i have a picture with him like i just remember it really

vividly um unfortunately i didn't buy ave back then i bought ava in 2020 but i didn't buy it early on um and that's because like at the time tokens were actually considered a liability for projects and a lot of people just thought that tokens are useless um it's just eighth just by eth and you know obviously it was like a deep bear market so everyone wasn't really kind of looking at this stuff so unfortunate for me of course i didn't get a thousand x um you know uh but but still like i got to buy some rv early which is which is good enough but i guess even outside of that um just seeing the project grow as fast as it has in 18 months not even from when it launched on on mainnet uh to becoming one of the the top depot protocols here and

continuing to grow and you know continuing to build out they have v2 launched and stuff like that i think when you just look at all of that as like a combination it is just one of the best stories in ethereum in d5 and i'm so glad that they stuck to this i'm so glad that they were able to to get through the bear market keep building uh and basically give this amazing protocol that offers so much value to so many people as a money market here i mean i use it all the time i love rv like it's it's definitely one of my favorites um and i'm sure a lot of you have used it before as well and maybe a lot of you hold rv tokens too uh which which i still do as well um but yeah i think just looking from a

pure kind of market perspective here there were so many opportunities in 2019 that just weren't seized because at the time it was just very hard to better anything like i was buying eth but i wasn't really buying anything else because just the narrative was so different and even thinking back to i guess like uh early 2019 it was even kind of like worse because the i think that early 2019 we were just coming out of like the the extremely brutal bear market of 2018 when everything dropped at once and we were kind of going sideways i remember being at edcon sydney and then um hearing about uni swap raising a million dollars from paradigm back then and i remember thinking to myself well unicef doesn't have a token uh are they gonna have a token in the future and then i thought nah surely not tokens

are uh you know are not in favor like no one tokens are a liability and sure enough right i mean um you know as as as as wrong as i was on on tokens i think it's been like a pretty cool thing to see you know tokens become like not a liability but actually an essential kind of aspect of a protocol for a number of reasons but anyway i think i've rambled on enough there i'll leave it at that for now but uh definitely really great to see obvious continued growth here and you know 100 billion market size sooner rather than later i think once we get more scaling right once rv is on things like layer two i think we're really going to kickstart uh another d5 season i've been saying before where i think that an ethereum d5 season can't really take off

uh in a big way until we have layer two because we're just locking out too many users even at forty gray it's still too many users locked out like they're a fifteen dollar union swap trade is still a fifteen dollar uni swap trade yeah it's better than fifty dollars but it's fifteen bucks right so when we have layer two unit supplement we have layer two are there layer two synthetics all that sort of stuff that's when i think we'll start on boarding like the masses again to ethereum and newer users and we'll get that like ethereum d5 season now in the short term things can go out because of just pure speculation right i mean the market's still very hot but i think in terms of usage and seeing like that explosive growth that we saw the last d5 season it's probably going to be like a

quote-unquote l2 season i think but we'll see maybe i'm wrong i mean maybe i hope i'm wrong but i just i just talking to people and then like new users being like they literally have to use bsc because they can't use ethereum and it makes me sad and it really pains me so that's why i've been promoting layer 2 so much uh but yeah i guess like on that note i just uh obviously later two's coming i mean there's lots lots live now and i'm very confident that there's gonna be more coming in the very near future um but until that happens yeah i just don't foresee any kind of like big d5 season so to speak but you know we're still going to see growth we're still going to see um you know are there and other platforms continue to grow uh as i guess the ecosystem

continues on board you know more people in general um maybe not the masses but still more people in general so david mihal the creator of the crypto fees dot info website has uh updated the website so basically uh it's basically a new and updated version that has a bunch of new features i think the design's a bit different here um if i go to the website where where is it here um has he linked it yes so the website's here um essentially i'm pretty sure i'm not sure if this was here before this little drop down um but if it was i never saw it before but essentially if this is new it basically tells you um i guess what the fee model is of each of these kind of um networks and apps uh like the website the blockchain

the the source that the data is coming from like coinmetrics and and relevant information like the price to sales ratio and stuff like that so you can see here obviously ethereum still dominates uh even at like the the lower gas prices than we're used to um you know bitcoin trails behind uh and then unisop is is just behind bitcoin here but you know for uni swap this isn't gas fees or network fees it's it's trading fees paid by um you know traders to to lp's here uh and that's a lot right that's it that's huge and like arveir as i just said abby's generating so much right now so a huge amount here as well and then you make your way down the list then it's quite funny dogecoin's been kind of getting up the list lately because of doge pumping which is really funny to

see and dogecoin is actually one of the more quote-unquote scalable chains and it's not really used that much because except for probably arbitraging between exchanges because no one really uses dogecoin for much maybe it's used as money sometimes for little things but it's not like it has smart contracts or anything right so but yeah i don't want to bash a doge but you know and then you kind of like scroll down the list here and you can see like all the all the smaller apps and smaller chains and what fees they generate and things like that and you know there are some chains that are literally just not generating much at all and you know they're they're kind of like price to sales ratio is ridiculous i mean litecoin's price of sales ratio is eight thousand eight thousand that means it's like extremely overvalued based on its its fee revenue now of

course these networks are not just valued based on their fee revenue they're valued based on a bunch of other things here but like even other things like cardano 10 000 price to sales ratio which is absolutely ridiculous i i just you guys know my view on card down i'm not gonna i'm not gonna say anything else here but you know and compared to a theory i'm like look ethereum is only 65 that's like normal for tech uh i guess like for traditional tech it's very normal um and then you kind of have a bitcoin is even pretty high 436 but obviously bitcoin is valued based on more than it's fear revenue of course um you know unit swap's quite low actually it's it would i would actually say it's undervalued um you know by the fees that it's generating here um you know sushi swap

is as well here generating lots of fees but i guess like his market cap is still quite low uh but you can see here like the the all the apps and stuff like that are pretty are pretty low but then when you go to like the other blockchains like avalanche i mean avalanches isn't that bad actually but like um you know as i was just showing you like cardano and and stuff like that and you know it just gets ridiculous and like ripple 35 000. like what the like what like that that just just means that ripple is just like the most overvalued thing in history i mean even if we look at other things like even bitcoin cash is less than that i'm just curious to see if anything else is more than ripple like i i would i would um wager that probably not uh

maybe maybe polka dot yeah this is getting ridiculous 500 000 for polka dot stella 238 000 uh but as i said i mean taking this this stat as like a vac in a vacuum and saying okay well these things are only valued based on the fees that they're generating that's not true in saying that i do think things like polka dot are really overvalued right um i do think a lot of the other blockchains are super super overvalued and they have zero reason to be worth that much um and you know imagine if ethereum had like even just a thousand price to sales ratio here that would mean that the eth price would be like tens of thousands of dollars it would be some ridiculous price um well maybe not so ridiculous but you

know ever up there so yeah i just looking at this sometimes is just like uh really funny to me but this is a really good site for keeping track of this sort of stuff um but yeah i guess like kudos to david for updating this year this is like a free resource it's really cool he does have a git coin grant i believe at the bottom here if you want to donate to support him maybe it's not here right now but i've seen it before um but yeah i'm glad that he keeps this kind of like website updated and keeps kind of working on it and keeps it kind of fresh because i think a lot of people visit this to just see kind of like what the fees are like for different networks and and i've i visited almost every day to see how

ethereum is doing because this is going to show us how much eighth is gonna get burned with one five five nine right um but yeah i'll leave it at that for now you can go check out the full post in the youtube description there's a couple other things i want to talk about that i think is going to actually take me a little while to talk about because i'm going to be talking about its value again so this is a really interesting tweet from lim zero here where they said the explosion of stable coin supply was supposed to weaken its monetary premium in actuality on chain eight remains the base pair currency for almost everything on the contrary it is btc that lost the gateway to alts privilege on centralized exchanges due to stable coin pairs dominating so i think i need to give a

little bit of background here last year so as early as mid to late last year and i spoke about this in the newsletter as well today you can go read that but as early as mid to late last year there were people saying that eth would not accrue any value of the ethereum network people legitimately thought that everything built on the ethereum network like the the tokens of the different default apps and stuff like that would accrue all the value and eth would be left in the dust now ether was 200 at the time now thirty five hundred dollars we can definitively say those people were completely wrong um and you know it bears in disbelief as i like to say but i wanna explain why this happened so let's let's kind of like go back to this tweet now for now so there was also in addition to

like the d5 tokens capturing the value narrative instead of eighth there was also this narrative that stable coins would basically mean that eth wouldn't be used as a money within the ethereum ecosystem now i at the time and a lot of ethereums like me were like well this is dumb like ethereum or eth isn't just used as money it's used as much more than money like i know we say um the meme ethics money but we don't say evie's only money if he was only money i'd be much less bullish on it um but ethie's much more than that right and you know i know i'm preaching to the choir here but to quickly run through it eth is it has three main kind of use cases here it is used as trustless collateral within d5 the only trustless collateral you can use on ethereum

it is used in staking the only asset you can use in staking and it is used to pay fees the only asset you can use to pay fees and post 1559 even the the um the the the flash bots or the mav extractor extractors are going to have to the miners are still going to have to pay each to the network instead of taking bribes around the network to so and then obviously fees will get burned and all that good stuff so those are the three main main value drivers here but in addition to that ethys still used as a amazing money within the ethereum ecosystem it is still used as a unit of account to price things like nfts it is still used as money and the preferred money for lots of different things merch is sold priced in eth right uh you have as

as a as a as a trading pair on amms and a dominant pair because it's so it's so um it's worth so much right as i was saying before it has so much economic bandwidth so stable coins are additive to ethereum and because the stable coins allow us to do much more within d5 which allows eth to to to kind of fulfill its role as trustless collateral much more um you know uh much more efficiently and much more effectively with uh because stable coins take that role of moe or like money but that doesn't mean that it's monetary premium and properties go away it's still used but stable coins can obviously stable coins can be used as collateral and all that but eth is much better collateral than stable coins is for a variety of reasons uh because

people you know when you can when you use ether's collateral as long as you manage your position safely you don't have to give up your eth to to basically leverage it whereas if you're using stable coins as collateral you're not in an active position of eath you're not holding it you're holding stable coins so but that's why i don't like you stable coins clutter i use my eat because i don't want to sell my eat so and and on top of all of this there was as i said there was also the narrative that um d5 tokens would accrual the value and if eth wouldn't accrue any of the value and if that's down for all the reasons i just outlined but there was also a prevailing narrative that all you had to hold was btc and d5 tokens now i don't think i have

to kind of say to any of you guys because i'm sure you follow this but since the bottom in march of last year eth has greatly outperformed bitcoin right the ratio is at .06 the ratio at the bottom last year i think was at two in march which is a three x on on each in in a year and a bit right so not only that but the d5 tokens if you look at them right now a lot of them are down a lot against eth go look at wi-fi against eth from its top it is down so much it was i think at the top it was worth over a hundred eighth now it's like under 28th so and that's obviously that's measuring top to bottom and all that sort of stuff but most people buy on the way up right they don't buy early on if you're just

looking at the people who bought at the start yes they're still in profit against eth but looking at like a risk-adjusted basis and where the most people got in based on the volumes and based on like the holders people have underperformed eth by holding both btc and by holding both and by holding d5 as well now that's not to say that you can't hold default tokens and you can't outperform eith and that's not to say that every d5 token is underperformed eth some have outperformed but the quote-unquote blue chips have really lagged eath lately so the eth won't i mean the argument that eth will not accrue value is debunked like completely bunk at this point there is no reality where this is true there is no

reality where the bears have been right they have been wrong for since ethereum existed i mean you can people will say oh they were right during the bear mark and i was like okay but it was a bear market right you would be right about being bearish on eight if during a bull market eth didn't go up or eth underperformed bitcoin um and i think a lot of people late last year just held this opinion and that they've just been completely blown out of the water and it's surprising to me because obviously i always held my conviction on eth i knew it was coming i knew about one five five nine i knew about the merge and a lot of you did as well but it's cool to see the market actually be efficient here a little bit and actually start to price all of this

in though obviously i hold defy tokens i want them to perform as well but d5 tokens have much more risk than eath as an investment so for that risk you want more than you know even a two to three x against eighth you want like a 10x against eight for the amount of risk you're taking on and a lot of these things i don't know i really don't know eth as an asset is just so strong right now and that's not to say you can't outperform it but there's there's buying something outperforming it and then holding it and not selling it and then underperforming so you have to this is why trading investing is so hard you have to basically buy the asset outperform eth and by you know by trying to outperform ether basically it's like it's like you're running a race against someone and you're consistently trying

to outrun them but that person has more stamina than you do so eventually they're going to catch up to you but and you'll fast to them but yeah eventually they're going to catch up to you so so from that kind of point of view you have to outperform um yeah eth and you also have to sell at the right time and you have to account for taxes a lot of us have to pay taxes on this so you put money into a defy token it goes 10x against 8th right maybe you landed a moonshot do you sell a 10x against 8th or do you get greedy do you think wow maybe this can keep running i've gotten 10x why not 20x a lot of people do this especially the newer people i've done this before when i was newer like i and then when you sell a lot of us have

uh have things to consider like long-term capital gains where if we hold it for a year we get a discount on our tax but if we don't we have to pay the full income tax against that now depending where you live this can be quite high let's say you're paying 20 30 um of income tax like i'm paying more than that so for me it's really hard but say you're paying twenty thirty percent in income tax so you sell your you're automatically down quote unquote down 20 30 because you have to take that out for tax right um and then essentially take that out and then okay you're up against each still but you know was it worth the risk right and and this is this is assuming that you sold at the right time so i mean just thinking about it it's hard and this is why most people just

opt to hold each and i'm not saying that you can't play around with things and this is an investment advice of course but i'm not saying that you can't play around with different things and try to outperform it but if you're putting your whole eighth stack into something you better you better be you know very confident that that's gonna 10x against e or something for the amount of risk that you're taking and you better be confident you'll be able to sell it and you better be confident that you'll be able to outperform the tax that you owe as well um uh you know and get the the the 10x against back that you that you kind of like made from that so just something to consider as i said like not i'm not saying what to do and what not to do but i think it's something very important to

think about but i'm going to move on to the last tweet i wanted to talk about here because i think this is going to be the longest refuel ever wow but this was another interesting tweet about eth from sandeep from polygon here when he said where he says can someone explain to me how btc is a better story value than eth eth has more users product market fit with d5 nfts and dows real use as gas as collateral in d5 even warren buffett can't refuse its intrinsic value unlike btc reducing supply with eip1559 and proof of stake which is leads to locked supply i mean i can just say that i mean i said it in this in my reply here it's not btc is not i truly believe i believe that for years eth is a better asset than btc across every single measure that you can even

think of um i think it is going to flip btc i have absolutely no doubt in my mind about that i don't know when it's going to happen but it's going to happen and i think that ethereum and et's continued utility is going to drive way more value to eth than it will to bitcoin and i as i've said before i think ether is going to be a 10 trillion a dollar plus asset sooner rather than later which is a hundred thousand plus um each price here uh because of of its immense utility so i'm just going to leave it down i'm not even going to go um too far into this because i've spoken about this lots of times before and i'd be preaching to the choir anyway here but yeah long story short 8 is a better story value than bitcoin i'm not afraid

to say that i think more and more people are waking up to that fact i think as eth continues to perform against bitcoin more and more people will wake up to that um but i'm gonna leave it at that for now uh because yeah that's that's it for today so 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