Hey yo, what’s the prowl, with those who never miss their daily dose, my favorite people,
the Chico Army & if you new, thinking about joining that crew, subscribe & officially
drop the title of, viewer of the tube.
My name is Tyler & this channel’s crypto content looks similar to others on the surface,
but we always have a surprise….some fries mothertrucker.
It’s time for Chico Crypto!
Uniswap, it’s hand’s down the most dominant DeFi protocol…volume was nearly 260 million
24 hours, and monthly visits to the exchange, over 4.84 million…..although, if you didn’t
know, Uniswap wasn’t very popular last year, and barely heard of or understood almost 2
years ago….Uniswap, didn’t just show up overnight, it’s taken some time for people
to realize it’s true value...back in 2018, Vitalik was trying to get people to realize
this, he tweeted Uniswap is a huge UX improvement over previous DEX’s, even the basically
centralized ones.
Coingecko only tracks Uniswap volume back 1 year, but that’s enough to show the point,
back in October 2019...daily volume was under 1 million, it wasn’t until q1 of 2020, when
things started really moving & volume picked up..so, it took a long time, for Uniswap to
get to where it is today….things don’t just happen overnight...even in crypto & if
they do, you should be worried.
Now, a little history of Uniswap...the AMM algorithm, automated market maker which powers
Uniswap, was a product of this Vitalik 2017 blog, describing the algo, which Hayden would
run with and eventually turn into Uniswap..from October to November of 2017, Hayden would
build the 1st proof of concept...yes, Uniswap was initially conceived all the way back in
the bull run of 2017.
Sooooo, who are the Uniswapper’s of today?
Who are the protocols, decentralized, which will change and flip finance on its head,
altering how we interact with assets for good?
Well, well..welll...wouldn’t you like to know?
Join my paid for, monthly subscription group to find out!!!
Pssshhhhht...ya right, Chico’s content will always be free.
Well my friends, if you didn’t know, Uniswap wouldn’t be possible, unless something else
with Ethereum was launched in 2016.
The ERC-20 standard.
Uniswap v2 pools only work with erc20 tokens, and the ownership of Liquidity Pools is based
on the erc20 standard too.
Now before this DeFi hype run, and probably a good thing it happened then….Uniswap v1
allowed another token standard to run unhinged, erc777…& from this tweet in April of this
year, we can see what happened.
“imBTC pool from tokenlon on Uniswap has been attacked & drained...Simple attack vector
on ERC777 on Uniswap to steal over $300k & the vulnerability was even described 16 months
prior.
This goes to show how dangerous a new standard with new functions are in the world of Ethereum.
And developer, David Mihal covered it in April after it happened.
“) These hooks in ERC777 open up the issue of reentrancy attacks.
This isn't a new attack vector, reentrancy caused the famous DAO hack.
What's new is this attack is possible with tokens.
Developers assume ETH transfers are vulnerable, but token transfers are safe.
Then below he says “There's multiple ways this can be fixed.
The Consensys audit suggests using a Mutex.
You can limit the gas allowance for the transfer function (similar to the ETH transfer function
in Solidity).
Uniswap V2 has already patched this issue….
Now in that same thread, a chainlink god asks David “Is ERC677 vulnerable to reentrancy
attacks as well? it's very similar to ERC777, but came out earlier….David Says “Doesn't
appear so.
ERC677 only adds new functions, it doesnt change the behavior of existing ERC20 functions,
while ERC777 hooks are triggered on normal transfer() calls…
Soooo, erc677 is what I like to call erc20 2.0...erc777, was hailed by many as the next
one, even some big developers...but if failed, it’s not the next iteration, and because
some DEVs, major ones….put their faith into it, they have “something against...677,
even though its better.
Per example...let’s just go to the erc677 EIP, ethereum improvement proposal, submitted
all the way back in July 2017, by chainlink CTO, Steve Elliss...it was the beginning of
the transferandcall function...steve putting forward the idea...well there was a micah
zoltou, independent core ethereum developer, an oldschool one, who was actually part of
Augur, and writing their original whitepaper in 2015...well he was in the 677 EIP thread,
and he said this to another person, regarding token standards in July of 2019 “Have you
checked out ERC-777?
It is currently in Last Call I believe (or maybe Final) and includes a mechanism for
doing transfer and call.
I suspect it will be the next standard token after ERC-20.
Well, as we know, erc777 is not the next erc20...it has major issues & this has caused developers
who supported it, to hate on the others & throw it away...as we can see, in June of this year,
Micah, who was tasked with “cleaning up EIPs” in 2020, said this to steve “@se3000
Is this EIP still of interest to you, or should we treat it as abandoned?
Of which Steve replies “The EIP has slipped my mind recently but is not abandoned.
LINK uses it and it is great for minimizing transactions and/or inter-contract interactions,
along with the potential issues those raise(e.g. re-entrancy).
Until another token standard with similar functionality emerges as dominant, I think
677 compliments ERC-20 well, and I'd advocate for more widespread adoption too…
But those in the know...they are using it, they are using transfer and call, the functions
from 677.
Of course chainlink is in the know, steve said what Chainlink was using it for “Link
uses it and it’s great for minimizing transactions and or inter contract interactions, and is
not vulnerable to re-entrancy attacks like 777.
Well, we can look up the transferandcall function, from bloxy, which will show us, how this functionality
is being used...as we can see, the number of times this was used, has been growing and
growing since June of 2019...what happened in June?
The launch of the chainlink mainnet on Ethereum...and if we look into the smart contracts using
it, bulk it’s chainlink’s token, and to the right is the specific addresses, it’s
internal transactions for chainlink price feed aggregators, like steve said they use
it for…”inter-contract transactions to save on gas by minimizing the # of transactions.
Now, I don’t wan’t to credit myself for this, but I should take credit, I got erc677
talked about again, as we can see from EIP github, user AMXX says let’s move the discussion
of this EIP to the ethereum magicians forum, AMXX says this there “It seems that the
as been a recent regain of interest issue for #677 (that is NOT an ERC has it doesn’t
have the proper documentation) both on the EIP repo and on youtube, with ChicoCrypto
making a video about it.
While I love the underlying idea, I have to emphasize that there are many ways to achieve
the same results.
I know at least 2: Chainlink’s (and Dai’s ?) transferAndCall….Dai’s transferandcall?
Did AMXX mean xdai or the actual dai?
Well it doesn’t really matter because it’s really all the same, MakerDAO is the creator
of DAI, and xdai is a collaboration between makerdao & POA...and me thinks he meant xdai,
but maybe there is functionality of dai...they are working on that I haven’t heard of...and
that would make sense as many people don’t realize MakerDao is heavily involved with
xdai, like on the ground floor announcing it with POA in October of 2018.
Sooo, could this be dai experimenting with transfer and call functionality??
Well in my personal opinion, I think so...as I believe 677 and the transferandcall function...is
the erc20 of this “run”...it’s going to change the game & as it already is.
Besides LINK using it like mad for their price feeds, allowing relayers to pay for and request
external data within a single transaction Xdai is of course using it.
And they're using it in multiple ways...of course for their “bridges” and the transferring
of tokens...from xdai documentation on how to transfer tokens we can see, they have the
general erc20 transfer and it says “The general case describes a "pure" ERC20 token.
For tokens compatible with ERC677 and ERC827 token standards the steps may be simplified
- see the separate section below”
Yes simplified, if using erc677 and erc827...which if you look at the walkthrough steps for each,
you see that yes, it’s seriously simplified, shorter, less steps, which means not as many
transactions...which at the bottom, they have gone even further...in Simplification for
token transfers from the xDai side section they say “The token contact deployed on
the xDai chain is a customized version of ERC677 standard.
It contains the changes that allow calling the transfer method to withdraw tokens from
the xDai chain instead of transferAndCall.
So, it is enough to specify the multi-token mediator contract address on the xDai chain
as the recipient and amount of tokens to initiate a request to transfer tokens back to Ethereum.
Which this “customized version” of erc677 , and multi token mediator address have created
something special with xdai, and it’s the omni bridge, as we can see at the top it says
“There is an unofficial OMNIBRIDGE UI now available which calls the methods of the multi-token
mediators contracts described below.
So, erc677 and it’s “tech” is revolutionizing bridges, and transfers across them for good,
and xdai is leading the charge for this.
It’s intercontract transactions for oracles and price feeds & Link is leading the way
on that….so what else is it going to change for good?
STAKING.
It's going to bring in token staking.
So...going to xdai protocol terms in their documentation, it says this The xDai Stable
Chain operates with two bridges: the second one is An ERC677-to-ERC677 bridge converts
STAKE ERC677 tokens on the Ethereum mainnet to STAKE on the xDai chain and vice versa...below
it, it says “Future bridge implementations will extend the multi-staking capability of
the STAKE token, allowing additional sidechains to use STAKE as a staking token via bridge
connections…
That’s why they call it stake my friends, it's a purely designed chain extendable staking
token, only possible with erc677.
So, if I’m correct in the short future, staking will be allowed by other tokens on
the xdai sisterchain.
And guess what???
Chainlink is doing something similar on mainnet ethereum, allowing tokens to become “stakeable”...from
a late september tweet from chainlink, DeFi platform has integrated Chainlink’s Price
Reference Data feeds live on mainnet to calculate its staking rewards.
This ensures that all rewards issued to StrongBlock users are accurately & transparently distributed..same
goes with AdeX, chainlink price feeds are powering their elastic issuance staking model.
And the 677 standard, is what will allow Chainlinks, own staking to happen, when that eventually
goes live….it’s getting closer by the day too, going to Chainlink’s pivotal tracker
their is something in their current iteration...of October 12 to 18th, not officially accepted
yet, green but it is there, scrolling down, the multicoordinator contract...this is piece
of what allows staking, but how far are they on it?
Well going to epic’s we can see, that opens the big pieces of chainlink, and as we can
see multiword response, aka staking is about 65 percent done, 65 percent green, and clicking
in we can see the multicoordinator is apart of this the prioritized piece, then hovering
over the multiword epic, we can see the prioritized piece is only 1 story, the multicoordinator,
worth 5 points, which would push completion to what looks like about 85 percent.
So, 677, it is the kicker for the next, maybe because of politics, it doesn’t become a
standard, but transferandcall, it’s here to stay as just like ethereum staking is going
to change the game, 677 based token staking will to.
Cheers I’ll see you next time!