Why do I love Ethereum!?
Well based on economic performance, it should be the #1 blockchain.
As the dapps, that inhabit it...are just straight up dominating the other chains.
So are you ready for my breaker of Chains?
Well I ain't no Daenerys Targaryen, but it is time for Chico Crypto!
Crypto Fees, shows that the Ether blockchain produced over 27 million in fees for the miners,
24 hours yesterday.
Next highest competitor is Bitcoin, which is only pushing over 9 million.
Since these are both proof of work blockchains, this basically means Ethererum has 3x the
level of economic activity that BTC….
Thus, pullins out the BTC dominance chart over the markets, in relation to Ethereum..we
can see, things don’t make sense just based on this statistic.
A wide gap sits between the two... to be exact, a 42 percent gap between dominance levels
to this day...BTC at about 54% & ETH is about 12%...
Last bull run, in the middle of 2017...this gap came close to closing.
BTC at about 38 percent dominance, while ETH was at about 31 percent.
Just 7 percent sat in between the two.
And ETH gave it another try, a flip at the end of 2017 beginning of 2018.
What was the reason for this?
Ethereum pushing up and eating into BTCs dominance like that.
Well back in 2017, it was called ICOs.
Ethereum was the place to launch a new crypto project called an ICO back in 2017 due to
the erc20 standard.
As we can see, in 2017, ICO funding bubbled like MAD, started going crazy in the middle
of 2017, making years past look like peanuts and then peaking at the end of the year, 2017.
At its peak, ICO funding reached over 1 billion in 1 month, December 2017.
And this was majority, all on top of Ethereum, basically non on top of BTC, as it didn’t
have a token contract like erc20.
These stats, this narrative helped Ethereum reach that dominance peak….
ICO fever then is so similar to the DeFi, NFT & Finance 2.0 sickness we see today.
ICO funding at the 2017 peak was just over 1 billion in 1 month.
Going back to crypto Fees, of course today, Ethereum’s base protocol is pushing out
over 27 million in a single day, but it’s top DeFi application, Uniswap, is also pushing
out over 4 million per day alone.
Now 27 million multiplied by the days in a month gives us 837 million, in a month.
Let just add on a single top DeFi application to that number.
Uniswap.
4 million times 31, gives us 124 million.
837 million, plus 124...gives us right around that 1 billion number.
The DeFi sickness over a month today, is just as bad as ICO fever back in 2017
Sooo, in my opinion, Ethereum hasn’t even begun it’s RUN into BTCs dominance, as the
next highest fee paying dapp or blockchain, on cryptofees is all ethereum dapps, compound,
sushi, aave, bancor, balancer, REN...
But...Uniswap, Uniswap, Uniswap….producing the 3rd largest amount of economic activity,
yet if you go to Coingecko.
It’s ranked out of the top 10, falling to number 11.
Cryptofees has Uniswap at over 4 million per day, do those that rank higher on gecko, rank
higher in economic activity.
Oh hell nah, cryptofees lists each.
Uniswap outdoes rank #10 Bitcoin Cash, and rank #9 litecoin, by extremely large margins.
Uniswap also outdoes rank #8 Polkadot, and rank #7 Cardano, be about the same margins.
And #6 doge, #4 xrp, and #3 binance chain??
Pretty much just as bad...Uniswap dominating by blistering numbers.
I see a major imbalance there, and I hope the markets do too.
But regarding Uniswap, I’ve noticed the value being traded through it each day, last
year last summer, 24 hour trading volumes were in the millions...but as that year came
to a close, and throughout 2021, Uniswap is pushing billions of value through the protocol
each day.
Billions of dollars of value, being captured through Uniswap each day.
Which just might steadily increase into the 10s of billion with version 3 of the platform.
16 days now, just 16 days until v3 drops on the Ethereum mainnet.
Everyone knows the blog they dropped, last month which included the whitepaper.
I’ve had some time to digest it, & it reveals a lot, but leaves many questions unanswered.
What it reveals is, exactly what the whitepaper says “Uniswap v3 provides increased capital
efficiency and fine-tuned control to liquidity providers, improves the accuracy and convenience
of the price oracle, and has a more flexible fee structure.
And then the introduction says this “gives liquidity providers more control over the
price ranges in which their capital is used, with limited effect on liquidity fragmentation
and gas inefficiency”
What they are saying is these changes, are not going to affect gas prices on the mainnet
in any negative way.
Increase them….But they don’t say anything about positive changes?
Like reduction in gas prices.
That is absent front he whitepaper as well as the v3 blog.
So, no reduction, if things stay the same, Users of the swap still could just be paying
over 55 dollars for a transaction come may 5th?
What the freak?
What gives?
Well hodl your horses, that may not be true & v3 could be seeing some downright astonishing
things.
Going back to the v3 whitepaper, they show the authors, which of course includes founder
Hayden..but also a Moody Salem.
Now Uniswap v3, has the core contracts, which are described in that whitepaper and blog...
but it also contains the periphery contracts, which are going to allow it to do, many other
things.
The github for the periphery is open, describing them and showing who is contributing.
Going to insights on these contracts, we can see the #1 contributor is Moody Salem, from
the core whitepaper.
Ok, he’s the leader of periphery.
Now within a github, a good place for research, is issues.
As it shows what’s being trialed & errored, of code aka...what ‘s possibly coming next
with protocols.
As we can see from the issues, there is one called gasless swaps & mints.
Clicking into it, it was opened by none other than Moody Salem.
As we can see, this took place on March 3rd.
What did Moody tweet that same day!?
He mysteriously tweeted out that smart contract DEVs should be aware of a code pattern, in
the absence of batched transactions, Linking to an EIP 2711, which is to implement just
those.
Batched transactions are for gas savings...
Well that batched EIP isn’t passed, and there is actually a new front runner taking
its place and being discussed EIP 3074.
Just discussions though, all that means, is batched transactions won’t be ready in a
couple weeks, by the time Uniswap v3 goes live.
But you wanna know what is ready?
Not batched, but bundled transactions from Flashbots.
The github for these is open, within Flashbots but they are described within the flashbots
PM, under alpha.
They say “ On Jan 6th 2021, we entered the Flashbots Alpha phase by establishing a proof-of-concept
communication channel between traders (searchers) and miners.
This proof-of-concept is made of two components: MEV-Geth, a slightly modified fork of the
Ethereum Geth client, and MEV-Relay, a transaction bundle relayer.
Then the first step of how it works says “How it works:Searchers send Flashbots "bundles"
to MEV-Relay.
A bundle contains: one or several transactions that can be the
searcher's and/or other users' pending transactions from the mempool
a sealed tip that is paid by the searcher to the miner via a smart contract call
Now, March 12th...9 days after Moody posted within github about gasless swaps & mints
for Uniswap v3...someone tweeted something very telling in my opinion.
An Alex Manuskin, said “Flashbots gives you superpowers!
Here's a cool trick of "gasless" transactions made possible by flashbots bundles.
In this case: Swap ERC20 for ETH without owning any ETH”....
And at the bottom he shouts out, those he could haven’t accomplished this without...many
interesting characters.
Number 1...thegostep, Stephane Gosselin of Flashbots and Alchemist Coin.
Number 2...
Phil Daian, who we only know as Flashbots, but then 2 more people we should focus on.
Tzhen, Tina Zhen & Gakonst, Goeorgious Konstantopolous…
Why?
Well they are all referenced in the flashbots initial ether research post.
Phil Daian and Tina Zhen stewards Flashbots, wile Georgious is a feedback contributor
So, first Phil Daian, of flashbots...s he an alchemist!?
Well going to his twitter, he kind of gave it away for both himself, and Tina...retweeting
Tina Zhen saying this “are we all alchemist’s” with her doing some glasswork alchemy, retweeting
the gostep, stephane, retweeting someone getting an alchemist tattoo.
Alcemistception?
They be alchemist’s…..whose flashbots technology allowed Alex Manuskin, to create
gasless transactions March 12th…, 9 days after Sam Moody of Uniswap, was looking at
v3 being able to accomplish just that...I wonder of alchemist coin put out a roadmap,
of what entities involved with them were working on….March 7th they tweeted, a gaseless DEX
might just be in the works….
But what about Georgoeous George, Gorgeous Konstantopolus.
Who in the heck is that?
He was referenced in the flashbots, etherresearch post as a feedback contributor...but is he
really that involved with Flashbots?
Well the Flashbots, put together their most recent meeting just last month.
From the agenda, it had a special guest...Vitalik Buterin..but as we can see...presentation
#1 was given by Georgeios, on Ethereum block space market structure….so yes to this day,
Gorgeous is involved, which is confirmed.
April 10th, thegostep, tweeted “Overheard from a major mining pool: "Flashbots is cause
of recent low gas prices as traders shut down their PGA bots"...with Georgeios replying
“this makes sense & why”....
So Georgeious is connected to Flashbots, who does he “work” for...well of course Paradigm.
He is a research partner!
I wonder is that Gorgeous guy is working with something else...like Uniswap v3 periphery
contracts...there he is, listed as a contributor….
Now that is how you dig, and make the connections.
Cheers I’ll see you next time!