Hey, yo whats 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, its 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 data infrastructure. So, let’s start it out with DeFi.
Now, you should know by now, DeFistands 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 stable coin.
So who has the first-mover advantage, and the infrastructure built on Ethereum, positioning itself to be the stable coin leader far into the future? Hand down.. it’s Makerdao & Dai. Maker is the governance token, and Dai is the stable coin, which is created with crypto asset collateral, held in smart contracts.
So anyone can use it, to create stable currency, at any time & since its just computer code, it can’t be shut down, unless Ethereum gets shut down which is next to impossible. So there are other stable coins out there Tyler, why Dai? Well, you know my thoughts on USD..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 maker do, there’s the private Zkdai, from Aztec protocol who we covered yesterday… shoot, its 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 stable coins. There is no music, 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 MoneyStreams using Dai.
Do 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 the 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 they’re actually using the scalable version of dai, xdai.
Stable, thus being used in mainstream apps, critical DeFi in structure 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 its dominating DEXs, with over 58 percent market share, and the volume of 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 its brushed right off and it’s becoming clear that Uniswapisnt going anywhere anytime soon, and is thede facto asset swapper on Ethereums mainnet. So, building a swapper, right on top ofEthereum which does the same things asUniswap…fail. Building a swapper, which cant compete with liquidity fon mainnet Ethereum fail.
Building a swapper on a vampire, bullcrap says 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 & its 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, lets 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 main net right now within the ocean market, hey hey hey liquidity pools for data.
Now, there are many other critical DeFipieces, lego blocks ready to connect the blossoming web3 ecosystem…but covering all of it would take me all freaking day, and its time for that DAO infrastructure, which I haven’t covered much on the channel, but lately I’m realizing its more than critical importance. So, DAO, it stands for decentralized autonomous organization. This is a group that has no central controller, and its governed or ruled by contracts set in computer code.
Since the proposal was approved Aragon Chains development has mostly consisted of developing Ethermint itself. So, they were developing Ethermint, and their chain safe 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 Aragonorganizations 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 voting with snapshot, and they talk about an 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 lets 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. Xdaiis a working solution that many are flocking to, including critical infrastructure pieces, data availability? Ocean? They announced they were going to be building on dai this week. Dao infrastructure? Aragon has been and will continue to build on xdai.
Xdai is going to become in my opinion, the test net for Ethereum, its canary network, where developers will deploy first and test their new app, or app 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.