BITCOIN this, bitcoin that, buy BTCBTC, BTC, BTC and BTC Sound similar, does it sound like what everyone is talking about!? Well get ready for something different jarheads, cuz it’s time for Chico Crypto! BTCs all over the airwaves because it’s doing really well, shattering expectations over the past 2 months, rising basically nonstop from 10k to over 18k once again as of yesterday An 80 percent increase, in just 60 days BTC is on literal fire
But, But, But, But…there is data that says, hey maybe there’s bigger opportunities that lie somewhere else So there is a nice little open source tool, called btc-on-ethereumcom It tracks bitcoin that is being moved over from the bitcoin chain to the ethereum chain
And nearly 152,000 BTC have been moved to ethereum, and it’s been a blast off since August of this year Out of the total BTC supply, that will be ever made, 21 million, that is nearly 73 percent of the total supply, with most of that coming over the past 3 months But if you account for the lost coins, it’s actually estimated to be over 1 percent of the total supply Ethereum’s DeFi is swallowing up BTC, faster than anyone could have anticipated
Now here is a very interesting figure, which makes me oh so bullish on ETH So, what if a 1 percent move of the total supply of BTC ,moves to the Ethereum chain, per year from 2020 and beyond? By 2025, 5 percent of the total BTC will be locked, and by 2030 10 percent of all BTC will be locked And 1 percent might be a low estimate BITCOIN UTXO, bitcoin unspent transaction output, it’s what wallet’s have left after doing a bitcoin transaction, and it’s the part of the transaction which keeps the ledger balanced It says this wallet has this much left, unspent with each and every BTC transaction
Thus you can use UTXO, to see BTC that’s just sitting there, not moving AKA, it’s being held, not used So here is the BTC UTXO age distribution chart, it shows the percentage of BTC, and how long it’s been held in the last wallet As we can see over 22 percent of the BTC has been held over 5 years, 3-5 years, 14 percent, 2-3 years 12 percent, 15 years to 2 years 10 percent, and 1 year to 1
5 years, is over 11 percent So adding that all up, nearly 70 percent of all BTC hasn’t moved in 1 year, or over So, some of you are like hey, isn’t this bullish for BTC?? Yes, it is, holding an asset for a long time, and not adding it to the trading supply, is a bullish sign, just based on supply and demand But that means, 30 percent of the BTC has been moved in under a year And 1 percent of that move in the last year, with a bulk of it in the last 3 months was to Ethereum
So here is where things get interesting, those BTC, moving to Ethereum, are usually gonna be there for some time, to earn interest, and stayso eventually a large bulk, will turn into 1+ year, UTXO transaction age, That will “look” good for BTC, in the charts, but in reality it’s not, not at allunless BTC embraces ETH as a layer 2 but in my opinion that’s not happening So why’s it bad? Well based on it’s proof of work algorithm, you have to keep the miners happy BITCOINs inflation rate is currently about 18 percent, after the next halving in 4 years, it will be less than 1 percent per year…remember I said, Ethereum may be taking 1 percent of the BTC per year, so by 2024, 4 percent will already be there, and now it’s taking more than the inflation rate too and the miners rewards? That’s not good, especially as time goes on, 2030 issuance on BTC will be under half a percent and upwards of 10 percent of the supply could be on Ethereum
And the longer time goes on, more Ethereum could be moved, while issuance gets closer to zero and the miners rely more on onchain activity, aka transaction fees Well guess what? Activity might not be happening on Bitcoin, it might be happening on Ethereum, and that bitcoin will be locked, not moving Like I said…that’s not good as time goes on So obviously, if this trend continues, who do you think would be the better long term bet? Ethereum… BITCOIN on Ethereum, a hot topic which leads me right into the sponsored segment of today’s video, supported by the DAO, decentralized autonomous organization, PIEDAO and like always the full details of the agreement can be found in the description
Now, I’m excited about this sponsorship, #1 I’ve covered PIEDAO and their DAOs products before, back in April, specifically something to do with Bitcoin on Ethereum, called Bitcoin ++ which we will get into again and #2 this sponsorship is a product of decentralized governance and DAOs So PieDAO is the a top Aragon based DAO, and actually a top DAO in this sector, they have the second most assets under management according to DAO tracking site, deepdao But look at membership, compared with others around them like mstable or airlab, they have over 2100 dao members, compared with their 8 & 11 Much more robust, and puts much more of the decentralized in decentralized autonomous organization So this DAO, they actually voted on doing this sponsorship
As we can see, here is the proposal in the Aragon client voting dashboard, digging into it, we can see the payment for the sponsorship, was voted on by the DAO members, and I needed to hit metrics for it to succeed, over 60 percent relative support, and hit the 10 percent minimum approval thresholdDid I do it? Did I win support? Well obviously, checking it out, I hit the metrics and the proposal passed And the beauty of this, discussion’s happen during the voting periods on the forums, tagged to my proposal, so people can say, ya let’s do it, or no Chico sucks
And why PieDAO exemplifies the beauty and future of distributed organizations, and how funds are dispersed from them, live and progressing in Action So let’s now get into the PIEDAO, DeFi products, what are they offering to the DeFi space Well BTC++ is a piece of the pie, so what is that?? Well bringing over your BITCOIN to ethereum, it’s risky There is the potential for hacks or rugpulls with centralized entities getting centralized wallets emptied and with decentralized entities, you have the potential for hacks through smart contract exploits, defi exploits like flash loan attacks & more
BTC++ was made to spread out that risk of BITCOIN on Ethereum Itis balanced pools of top ethereum based bitcoin assets, 4 right now, wrapped into 1 token So you don’t put all your eggs into one smart contract basket, but multiple Spreading out riskNow BTC++ was just their first product, they have launched more portfolio’s wrapped inside of a single token, and this can be found at the app dashboard, pools
piedaoorg, and of course the link for this is in the description The new pies include DeFi+L, Large Cap exposure to top DeFis top projects like compound, aave, link, yearn & more DeFi +S, smaller cap exposure to projects like UMA, REN, Loopring, Balancer and moreThen they also have a 50-50 weighted pie, of those two pies, called DeFi++, and they also got out, their risk adjusted stablecoin out, called USD++, which contains UDSC, TUSD, DAI and SUSD again spreading out stablecoin risk
Now, I’m sure some of you are like hey, this sounds pretty similar to the set protocol, and their token index’sand you are correct The two kind of spun out of eachotherwith the launch of the Index Coop in October, someone asked why not PIEDAO? And Felix Feng, CEO of setprotocol said, Haven’t really looked into PieDAO Seems like they have a similar vision / thesis Always good for customers if the market has multiple vendors Which is true, but the Alexintosh came in and said “We spoke on October 2019 during the concept phase of PieDAO, again on June, you know we did a testnet on SetProtocol (github check) In June, you informed us rebalancing multiples assets was not possible yet and still far away + you had to whitelist the assets
A little crypto index token drama? Well competition is a good thing, but if Set Protocol and DeFi pulse got their ideas from PieDAO, give credit where credit is due Although, PIEDAO indices are currently performing better than INDEX’s DPI, and other’s, depending on which one you choose Here is a comparison, the DEFI+L is the best performing, over 77 percent returns, then synthetics defi index, sDeFi at over 65 percent, then piedaos DeFi++, at nearly 62 percent, then the DPI at just over 58 percent, and finally the DeFI+S at just over 24 percent And the beauty about PIEDAO’s pies versus others, they are fully governed already, by the DAO with their governance token dough, which gives you access to participating in the DAO’s governance votes and proposing votes of their own…not bad slice of pie, wouldn’t you say! Now besides tokenized indices, what else within ethereum am I bullish on…?? Well, I’m bullish on Deep DeFi integrations, and this one actually leads us to a new token
So Kleros, I’ve brought them up, and am a holder of their token, bullish on their decentralized dispute resolution layer Well Kleros just brought on a big player, Jimmy Ragosa, former product lead and manager at Conseynsys And now he is lead of product integrations with Kleros, from the wide Ethereum net of consensys to product integrations at Kleros? Me thinks big plansand Jimmy he some of their current integrations, including Uniswap, Omen, Gnosis & more, including a picture of the cross defi integrations, kleros plays inbut also he said “Among many others (integrations) now and tomorrow that I will detail in dedicated threads soon Tomorrow as in future product integrations and others
Well, I know of one, its OctoFi, the decentralized finance tentacles They tweeted this 2 weeks ago “Thanks to Kleros_io and our inclusion in klerosT2CR, the listing process on OctoFi will be completely decentralized And $OCTO holders will have listing fees directly distributed to them The future of #DeFi is more decentralized than you think Then in an October blog post, they said something that might reveal something that’s bullish for both, Kleros and OctoFi
they said this “Now you can stay up to date with the octopus directly from coinbase Just one of many integrations made possible by our recent inclusion with Kleros Which isn’t false, you can view Octo on Coinbase, but of course it’s not supported
but this is possible only by Kleros? Is Coinbase using Kleros tech for their asset exploration lists? How was that made possible by Kleros?? But back to Octo remember I, Deep DeFi integrations are a good thing Kleros is one, but they have many more The aquafarm dapp, is deep it’s a dashboard and tool that aggregates the thousands of DeFi opportunities, tracks them, allows you to invest, swap and govern with them, and shows you your performance, all in one place! So OctoFi, it’s DAO governed toothey are currently using Snapshot, to run voting, which is from Aragon and Balancer Although going to their wiki, Octo 101, they do say the team is anonymousbut give their reasons, but scrolling up in 101, it says its rug pull proof How? Well going back to their October blog post, about Klerosbelow it says this “OctoFi has been rug-pull proofed
We locked approximately $23 million with our friends at Team Finance following their audit: 200,000 OCTO from Project Reserve locked for 1 year, with 25,000 streamed back in real-time to project over 6 months Approx $300,000 OCTO-USDC and OCTO-ETH Uniswap liquidity locked for 1 year So this is a good sign, they are locking up the team's tokens, and integrating with DeFi to eventually pay the team 25k Octo are being streambacked to the team, in real time to the project over 6 months
Streambacked? What does that mean? Well it’s a solid DeFi toolDeFi Dad on twitter said he was thinking about moving his team payments from zapper fi, to Sablier And OctoFi replied, “We use Sablier quite a bit Fantastic tool So the tool? I’ve covered it a few times It allows payments to securely be streamed, on set schedules, even by the second So this leads weight to their vision, and long term stay, but just like any anonymous team or protocol this is not an endorsement, I’m investing an extremely small amount, not going all “in” and nor should anyone else Cheers I’ll see you next time!
