Hey, yo what’s the groove with the Chico Army & any newbies who I call the viewer of the tube. You
should know by now, but my name is Tyler, the host of the crypto channel, who will dance with you
for a bit, but when we get over it...Destroy! You know our ponies polka, it’s time for Chico Crypto!
One by one, we’ve gone down the ethereum rabbit hole this week, covering critical
infrastructure pieces. We’ve covered, scaling, data availability, decentralized oracles,
privacy & identity….that just leaves us two general sections to cover,
critical defi infrastructure & critical dao infrastructure.
So, let’s start it out with DeFi. Now, you should know by now, DeFi
stands for decentralized finance. If it’s not decentralized at its core,
it’s not DeFi. And let me tell you there are many, many centralized DeFi fakers out there.\
So, what is the critical DeFi infrastructure we should be paying attention to? Well, #1 a
decentralized, unstoppable stablecoin. So who has the first mover advantage, and the infrastructure
built on ethereum, positioning itself to be the stablecoin leader far into the future?
Hand down..it’s Makerdao & Dai. Maker is the governance token, and Dai is the stablecoin,
which is created with crypto asset collateral, held in smart contracts.
So anyone can use it, to create stable currency, at anytime & since it’s just computer code,
it can't be shutdown, unless Ethereum get’s shut down which is next to impossible.
So there’s other “stablecoins” out there Tyler, why Dai? Well you know my thoughts on
USDT..centralized bomb ready to go off. USDC, TrueUSD, Paxos...centralized. Although
there’s more of a reason than just centralized vs decentralized. Now each of these are erc20 tokens,
they can have devs build on top of them, and expand their use cases.
So which one has all the developers? Dai does, not so much the others. Per
example...how many different forms of dai are there right now? There's the scalable xdai,
a collaboration between POA and makerdao, there’s the private zkdai, from aztec protocol
who we covered yesterday...shoot, it’s long list of dai forms, jordan lyall has them all on github,
26 different forms on the mainnet, 11 in development, and 2 new ideas.
You don’t even see 1 percent of this development on the other stablecoins. There is no zkusdc,
there is no x-tether...and like I always say, follow the DEVs. And,
because of this you don’t see near the mainstream implementations. Centrifuge Tinlake..using Dai,
PoolTogether using Dai, Sablier Money Streams using Dai. You see the common theme?
And that common theme is continuing….2 days ago, they tweeted “Huge Drop with foundation app,
Some sweet NFTs are up for grabs, and you can use $Dai to make them yours:
And foundation is a pretty sweet app, uniswap unisocks inspired,
where limited edition physical items are tokenized, and they can be sold and resold,
and the price is based on bonding curves...but, as you can see clicking on buy, it’s not a lie,
it’s built on dai, but there actually using the scalable version of dai, xdai.
Stable, thus being used in mainstream apps, critical DeFi instructure piece
number 1, what is the next piece? Well the swapping of
assets & you guys know better know I’m going to bring up Uniswap...it’s
dominating DEX’s, with over 58 percent market share, and the volume over 408 million dollars,
which is unheard of for a DEX & in the past, only centralized exchanges saw that type of action.
Uniswap has had vampire attacks, week after week,
which it’s brushed right off...and It’s becoming clear that Uniswap
isn’t going anywhere anytime soon, and is the de facto asset swapper on Ethereum’s mainnet.
So, building a swapper, right on top of Ethereum which does the same things as
Uniswap...fail. Building a swapper, which can’t compete with liquidity fon mainnet ethereum fail.
Building a swapper on a vampire, bullcrap say your ethereum compatible chain...the ultimate fail.
Although, I do see some swappers growing, because they provide something that Uniswap doesn’t.
And one of those is Balancer & it’s smart pools. So Uniswap liquidity pools,
are all based on a 50-50 split weight, between the two tokens in the pool.
Balancer on the other hand, let’s you adjust the weights, and add more than
just 2 tokens to the pools. Per example, this pool contains 50 percent balancer,
34 percent wrapped bitcoin, and 16 percent wrapped Ether.
This feature, of which Uniswap does not have, allows something special, pools within pools,
and we got an amazing example of that this week from Ocean protocol
and their data token balancer pools, which are live on the mainnet right
now within the ocean market, hey hey hey liquidity pools for data.
Now, there are many other critical DeFi pieces, lego blocks ready to connect the
blossoming web3 ecosystem...but covering all of it would take me all freaking day,
and it’s time for that DAO infrastructure, which I haven’t covered much on the channel,
but lately I’m realizing it’s more than critical importance.
So, DAO, it stands for decentralized autonomous organization. This is a group that has no
central controller, and it’s governed or ruled by contracts set in computer code. Smart contracts.
So if you need smart contracts for a fully fledged DAO, it’s gonna be built on Ethereum.
Who has been building the DAO infrastructure for 4 years now. Aragon has. Aragon has over 1600 daos
created, with over 350million dollars in assets stored for use within the DAO organizations.
These communities include 1hive, those behind honeyswap, aave,
aavegotchi. Curve, decentraland, district0x, mstable, piedao, and even stake capital.
So what are these communities even doing, the DAOs? Well managing their communities,
like in PieDAOs case voting on proposals, setting community agents, and clicking into finance,
viewing transparently community treasuries, and where the funds are going and why.
So, once again follow the devs, and many of the devs are saying for DAOs,
we are choosing Aragon. But Aragon, they funked up you could say...one of the more
recent community proposals put forward was “for ChainSafe to discontinue development
of Aragon Chain and its ANT-linked staking token ARA which was going to be on ethermint.
In the rationale it says “Aragon Chain was originally announced October 1st 2019,
and was funded by the Aragon Association after ANT holders signalled their approval
on AGP-106 2. Since the proposal was approved Aragon Chain’s development
has mostly consisted of developing Ethermint itself.
So, they were developing Ethermint, and their chain... chainsafe who the aragon team promoted
and the community chose with a vote. And it looks to me, that was a big ole freaking mistake. They
want to drop it now. Below it says “The main motivation for Aragon Chain was to allow Aragon
organizations to operate more affordably by reducing the cost of transaction fees
otherwise incurred on Ethereum mainnet. During that time we have seen alternatives like xDai,
that provide similar cost savings, gain significant traction within the community”
Then below, they get into other “scaling” solutions, like for voting with snapshot,
and they talk about a optimistic rollup, optimistic snapshot.
So what happened? Did the community vote to drop the Aragon Chain? Well as we can see
from the tweet, overwhelmingly. Over 90 percent said, drop it and let’s work on the other stuff.
And that other stuff includes optimistic snapshot, and sidechains including xdai.
Now, many of you may be sick & tired of hearing me talk about
xdai, but seriously I’m not trying to, it’s just everything seems to be
leading back to it in some form. So, I’m going to end it on this note this week….
Scaling with Ethereum, it needs to happen & it needs to happen now. Xdai
is a working solution that many are flocking to, including critical infrastructure pieces,
data availability? Ocean? They announced they were going to be building on xdai
this week. Dao infrastructure? Aragon has been, and will continue to build on xdai.
Xdai is going to become in my opinion, the testnet for Ethereum, it’s canary network,
where developers will deploy first, and test their new dapp, or dapp features, in an environment,
with economic consequences. Ethereum hasn’t had that, and it needs it, and I hope people realize
it should be a very valuable thing. Follow the devs my friends. Cheers I’ll see you next time!