Bankless - $UNI announced from Uniswap - $1,200 of UNI Airdropped to YOU!

Episode Date: September 17, 2020

Tools from our sponsors to go bankless: 🌐 UNSTOPPABLE DOMAINS - GET A HUMAN READABLE CRYPTO DOMAIN 🌈 ZAPPER - ULTIMATE HUB FOR DEFI - ZAP INTO DEFI 💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS 💸 AAVE - BORROW & LEND DEFI ASSETS ON ETHEREUM  ------ The Uniswap Token is OUT! $UNI is here and EVERYONE has some! David and Ryan release a quick bonus episode to keep you informed about the UNI token release! ------ RESOURCES: Intro to Uniswap: https://uniswap.org/blog/uni/ Claim your tokens: https://app.uniswap.org/#/uni Uniswap 2nd in crypto fees: https://cryptofees.info/ Token terminal for UNI P/E: https://www.tokenterminal.com/ Tracking Ethereum Gas: https://www.gasnow.org/ CoinGecko Yield Farming list: https://www.coingecko.com/en/yield-farming Rate the Podcast 5 Stars! ----- Subscribe to podcast on iTunes | Spotify | YouTube | RSS Feed Leave a review on iTunes Share the episode with someone you know! ----- Don't stop at the podcast! Subscribe to the Bankless newsletter program Watch Bankless shows and tutorials on YouTube Visit official Bankless website for resources Follow Bankless on Twitter Follow Ryan on Twitter Follow David on Twitter ----- Not financial or tax advice. This podcast is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.  Do your own research.

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to tell you exactly how much of which assets. you own. Not only does it know which assets you own, but it also knows where they are. So if you are providing liquidity to uniswap or you've deposited them to compound or to AVE, Zapper knows. And it will give you a comprehensive report of your entire DFI portfolio. Not only that, but you can even make transactions through Zapper that allow you to invest in various defy protocols like balancer or uniswap or curve. Check them out at zapper.fi. All right, guys, welcome everyone. This is a new segment. that we're doing on Banglis. I think it's needed. It's called Alpha Leak. So here we're talking about

something big that's just happened, usually a product launch or a token launch or something we think the nation needs to know about immediately. David, what's our Alpha Leak today? The Uniswap token is out. Uniswap, the beloved protocol of everyone, super dense in the protocol sync thesis, just distributed their Uni token. And it has one of the most insane distribution. I think ever. I think it's just going to sweep the floor with this one. It's pretty cool. Wow. Okay. Well, we're going to talk about that. So here's the format. We're going to try to keep these relatively short, but first we're going to tell you what it is. Then we're going to tell you how to use it, how to get it, what that looks like. Then we've got some, you know, I guess some

conversation that the community has been having around this token and then we'll close it up. So, David, I'm going to share my screen. And let's talk about the, the, the, you know, the, Uniswap launched first. So where did this come from? Like what time was it actually launched? Yeah, this was launched around dinner time, my time. So like 7 p.m., 8 p.m. We saw the, somebody leaked the token minting event and like 15 minutes later, one moment, and like 15 minutes later, everyone had found out that like the Uniswap token was here and that is something that you can go and claim. So they had this like planned and ready to go. And that was pretty cool.

And so it came out really fast. They had this thing just pre-planned a brand new website, brand new analytics infrastructure. So pretty sweeping solid launch by the Uniswop team. Yeah, they did it under the cover of night. So it was like 8 p.m. at least on the East Coast. And that's where I think many of the Uniswap team are located in New York City. So this is it, right?

So this is the introducing Uni token. post and I guess let's dig into the details. So what are we looking at here? Of course, you know, first they're talking about their stats, Uniswap. Bankless listeners don't need to be reminded that Uniswap does a ton of value, a ton of volume. In fact, recently they've been beating Coinbase right in terms of total volume. Nice little pat on the back from Uniswap here right before they start talking about the value of their token. Yeah, exactly. All right. So let's get into the goods. This is the allocation. So first, we've got 60% going to Uniswop community members. That's primarily the liquidity providers and users of the Uniswap platforms. We'll talk about that. And then we've

got 21% to team members and future employees, right? We've got 17% to investors. And there was a recent round like two months ago. Some accredited investors, VC firms got in. So not completely fair launch, although I suppose 60% of this maybe is fair launch with some reserved for the team as well. What's your take on this distribution in general, David? How would you rate it? Yeah, so I've heard people with some grumblings about a decently high weighting towards investors and VC firms and then also towards the team. So you add those together. You roughly get 40% towards the team members and investors that have invested in the protocol. Yeah, and like sure that could be a little bit high on a high end of things,

but at the same time, the awesome distribution that happened with the 60% on the on the other side of things more than makes up for it. And also, again, like we need to remind ourselves that like VCs aren't bad. Like VCs did the job of bootstrapping Unitswap into being what it is, right? They deserve it. Like I know where this yield farming phenomenon is trying to be like this anti-VC phenomenon, But I think we all like saw what happened with like sushi swap and also yams where like yams contract blew up and that sucked. And sushi swap the anonymous founders, they absconded with the funds.

That sucked, right? And that doesn't happen with VCs. And so 40% of VCs who had the skin in the game before Uniswap could even figure out that they were going to tokenize. I'm okay with it. Yeah. Yeah. It is 20% to the VCs and 20% to the team.

So the team is getting a good cut of this for building a fantastic product. and that is vested as well. So they don't get it right away. It comes over time. Now, there's kind of a four-year vesting period here, but when you sort of run the math, it looks a bit more like two years, which we can get into.

But let's talk about, I think, the most exciting part, and that's that 60% the community drops. So who's that going to you? Maybe let's break that down. The thing I am most excited about is probably this one right here, David. Can you talk about what they're doing with the four, hundred uni per address. Yeah. So if you have ever used the uniswap protocol even once before September 1st, you received 400, you're able to claim 400 uni tokens from that wallet, right?

Okay, wait. So that is worth repeating. So guys, if you have used uniswap, if you've ever done a trade on uniswap, right, from an Ethereum address, from an Ethereum wallet, if you did one of our tactics that we published in December telling you to go try out uniswap, for instance, you did that before. September 1st, you get 400 Unitokens. All you have to do is claim them. Yep. Yeah. And it's per wallet, right? And so I personally have a couple wallets. And so I get to claim them from both wallets, right? That's separate. And so that's pretty cool. It's 400 per wallet. If I, if I had my way, I would have kind of like rated it, weighted it towards people that were heavy uniswap traders versus light uniswap traders. There are a lot of new entrance into the DeFi world that just

made their first transaction on Ethereum like a couple weeks ago, and they got 400. And other people who have been trading on Uniswap once per day for the past two years also got 400. I wish they kind of waited it for the amount of trades. But again, I'm not going to complain. 400 Unitokens, which are trading at $3 right now. That's $1,200 to anyone that's ever used the Uniswap protocol ever, right? Yeah, it's it's AirDrop money.

This is the stimulus package. If you just, all you had to do was use uniswap early. It's like imagine if you were one of the first users of Facebook and they awarded you retrospectively, you created a Facebook profile back in like 2003 or whatever. And they rewarded you Facebook stock for that. That's what's just happened. All you had to do is be a user, be early, be on the bankless journey, essentially. And front run the opportunity, you get $1,200.

Not bad per wallet. So on coin Gecko, on DeFi Market Cap, on DefiPulse, now Uniswap has like this $2 billion dollar valuation, which we're going to talk about whether that valuation is justified or not. Two billion dollar valuation. That is now in the hands of like 48,000 like people. Like over the Uniswap token isn't even a day old. It's like 12 hours old.

And 48,000 people have made transactions on Ethereum claiming their Uniswap tokens. So the equity of Uniswap, the governance token of Uniswap, is so incredibly distributed so quickly to a sizable chunk of people with a sizable chunk of value. It's one of the coolest distribution events of all time. You should compare that to another really cool distribution event, which was the Wi-Fi token, Wi-Fi, which we've talked about. So how many Wi-Fi token holders do we have versus Uniswap? Yeah, Wi-Fi token holders, it's roughly like 11,000, right? 11,000 people have either farmed or purchased Wi-Fi from the Wi-Swap or from the Wi-Fi-W-W-W-Fing.

back when. And now it's basically only from uniswap or from some centralized exchange. Uniswap, again, is like at five times that distribution. And what's so great about it is because they have the two years of history of people using it and people organically shilling uniswap for being this protocol that's deep inside the protocol sync thesis. So getting the community support. And so as a product, it has been used by so many. And so as a team trying to distribute and decentralized ownership of the protocol, it went from centralized to maximally decentralized, the most decentralized thing on top of Ethereum like that. Basically, anything you do on the bankless journey, once you get to level one and you start getting your coins off of an exchange into an eth address,

and you get to kind of level two, it begins with uniswap, right? Like, that's one of the first things that someone who's new to defy a new to bankless actually does is trade something on uniswap. So what that means is the distribution is basically everybody. in Defi. Everybody in Defi pretty much got something from this event, got at least $1,200. And if you had multiple accounts, then you got more than that. So that's crazy. But they also did something cool with, so they didn't reward for trading volume, but they did reward heavily liquidity providers. Can you talk about that? Yeah, liquidity providers got paid. And so they, 10% of all Uniswap tokens went to people that traded. Five percent went to

liquidity providers. And so like that's half the total amount of uniswap went to liquidity providers. But the number of liquidity providers versus the number of traders is like one one hundredth, right? Because yeah. And so it's actually very much more concentrated. And so if you have been, I know an individual who calls himself a uniswap maximalist and he loves just providing liquidity. And he's been providing liquidity since like day one, right? And he got paid with uniswap, right? He, he, because it weight, and especially it weighted early liquidity providers, it weighted them stronger than later liquidity providers. So if you have been a steward of the protocol, if you have been providing your value to

Uniswap for a long time, you got more Uniswap tokens, right? Which is good. That's what we want. Like if you've used the service a lot and you are incentivized to take care of the protocol, you deserve more tokens, right? And so LPs, people that provided liquidity to Uniswap, have gotten. a bunch of uniswap tokens. And these LPs, the few I know that are in kind of the top 10 list,

these are not hedge funds, these are not bankers, these are not exchanges, these are people who have a decent amount of capital, but are on the bankless journey, on the defy journey. These are like defy OGs, right? These are people that are being their own bank. Exactly, exactly. So that's super exciting. All right.

So also stockholders, got a little something. Should have bought some socks, David. Awesome socks. So I think the sock token price went through the moon as well because people wanted, wanted to redeem socks for unswap tokens. Yeah. And the socks was just their NFT game, right? They were kind of playing around with. But it's kind of like our, you know, BAPS idea, which is it's redeemable for physical socks. Anyway, they got a little something from this. All right. So let's talk about the community treasury. There's also for the first four years, it seemed like the supply was something total supply. of like $1 billion, I believe. But after those four years, there's an ongoing inflation. Is that correct? Like a 2% inflation? 2% inflation, which is great because that disincentivizes passive uny token holders, right? And so with your money and with your value, the Bitcoin your narrative is like the inflation just devalues people's savings. And that's bad for money.

But with governance tokens, what it does is it devalues passive people that aren't partaking in governance, right? And so if you don't have a say in uniswap, then you get diluted versus people that have been actively maintaining the protocol. So in this particular instance, I'm a big fan of it. And it's only 2% a year. And it's actually like hard-coded 2% a year. It's not the Federal Reserves 2% wink-wink a year when it's actually like 10% a year. It's hard-coded 2% a year. Okay. All right. So some people have already gotten their unit tokens for things they've done in the past retrospectively, just being users of the protocol, you get 400 tokens. Or if you're a liquidity provider, you get more, and that's time-weighted. But there's also another opportunity that goes

live today. So I believe that's today. At least it's September 18th, UTC time. So depending on your time zone, it could be today or tomorrow. But there's the opportunity to do some liquidity mining and pick up some more unitokens. And here are the pools that they have opted. ETH, USDT, ETH, USDC, ETH-ETH-W-BTC. Boy, David, that's a lot of ETH. It's a lot of ETH. You love to see it. Why so much ETH?

Because the UNISRAP protocol is an ETH maxi, clearly. Yeah. Well, I mean, they are trying to be the most decentralized trading protocol. And for that, you need the most decentralized, credibly neutral form of money. So that is ETH. But so what happens? When this opens up, I guess we can kind of show the user interface. There's a countdown timer, right?

I think we're like nine. or eight hours away. This is better, yeah. Seven hours, 42 minutes from the time of recording. So yeah, so liquidity mining in uniswap is going to start in seven hours, right? And according to the post, these first four pools are the pools that you can liquidity mine in. And so, you know, relatively limited, relatively small. And that is going to be the way it is for 30 days. And then after 30 days, the uniswap token is the then the governance tool to vote in further pools to liquidity mine with, right? And so I think that the most obvious next one is the Uniswap, the Uni token, Eith pair, right? ETHUNI. And because people want to provide liquidity to Uniswap,

because they're bulls on Uniswap, right, on the Uni token. And so I think that's going to be the next one that comes. And that's going to just bootstrap the liquidity of the Uni token, further pulling away the Uni token away from centralized exchanges into the Uniswap protocol, which we know and love. And then it just kind of goes from there. But yeah, uniswap yield farming is here. All right. So if I want a yield farm in seven hours or so, then I have to, of course, deposit in here. And when you're depositing uniswap, you have to provide both sides of the pair.

So for this ETH die pair, I have to have 50% ETH, 50% die. I deposited in there. There are some other things there that we don't have time to get into right now, such as impermanent loss that you have to be aware of. But that's how you do it. And there's a certain rate of uni tokens. that you'll receive. We'll get into more of that later. David, is there anything high level else we should talk about? You touched on governance, of course. Anything else we should talk about here.

Yeah, I think since we just talked about yield farming and how to do it, you should be aware that like the gas prices on Ethereum are the highest they've ever been because, you know, 50,000 people are trying to claim their uniswap tokens. And remember, uniswap tokens, the minimum you got was $1,200-ish worth of Unoswap tokens. So it's rationally, it makes sense, it's rational to pay a lot of money to claim that $1,200. And so a lot of people are doing that, right? And so gas prices right now are just through the roof. So make sure you pay attention to that if you try and do this. I like, by the way, I like this gas now.org site. Yeah, it seems to be updated a bit better than the ETH gas station website, which I also use. So you can see, I mean, this is the highest gas prices.

you know, I've seen since yesterday, but I mean, still pretty, still pretty high. So be, be cautious of that. Be careful of that. But a lot of this is from the uniswap activity. While we did just say that, should we go ahead and claim our uniswap tokens run? That's what I was hoping, man. So, okay, so I'm going to tee this up for you, David. So basically, if you've ever used uniswap, as we were saying, if you've ever done a trade with uniswap in any way, connected an Ethereum wallet to uniswap in any way, shape, or form, you have the ability to go claim 400 Uni tokens, more if you provided liquidity as well. And David, you've got an address.

You're going to show us how to do that, right? Yep, absolutely. Okay, I'm going to take back screen sharing from you, Ryan. And then, so we have provided liquidity for the BAPT token, right? Bankless has. And then we also, while I was trying to do that, we made some trades in order to have the right amount of ETH to supply that. And so we have 400 ETH plus, it looks like we got 330,000. three more ETH, or more uni, excuse me, to, from supplying those BAP tokens. And so I'm on the

Uniswap site. We'll have that link in the show notes. I think there might be it. This looks like a special Uniswap site, like IPFS. Yeah, this is the site I've been using. Because yeah, yesterday the site went down because, you know, 50,000 people tried to claim their unswap token. So this is the website I've been using. I think the other one is back up. Let me, let me check. Let me check. And it's just a user interface, right? Yeah, it's just a UI. Yeah, but the IPFS link is super cool, because that's actually not using centralized servers to do it. Exactly. Yeah.

Okay. But the other website is backup. Okay. So claim uni. Oh, I'm in the wrong. Okay. So I have the wallet loaded up here.

So I'm just going to use this one. But that other website also works. Okay. So here's my 733 uni that the website knows that I have. And so I got 333 for providing liquidity and 400 for trading once. Good for you, David. Yeah. Nice job.

Good job, man. Nice job. Worked hard for this. I'm going to boost this gas fee because we're on a YouTube video. Wow, you are a generous to the miners friend. Yeah. Mm-hmm. Indeed.

$6.50. That's painful. Yeah. But I mean, that's only how much? That's like $25. $25 to claim. What are we getting? We're getting like $2,000 with the uniswap tokens to the bankless treasury.

There you go. And let's go ahead. We'll go watch this transaction. Our stimulus. our stimulus fund from Uniswap. It's fashion than Congress. There it is. We just claimed 733 Uniswap tokens.

Crazy, dude. All right. Virtual high God, Ryan. Yeah, nice job. We earned it. All right. So let's talk about what people should do with that. Of course, none of this is financial advice, right?

But I think there's a legitimate question as to whether the token is overvalued or undervalued or how you even. That's for sure. Yeah. So how you even value this thing? You're going to have to give me a screen chair back, David, I think. Just set something up. But okay, so I thought Andrew Kang had a good take here. And it's something basically that, you know, valuation method that we've been using on bankless as well, which is sort of a price to sales or price to earnings valuation method. So first of all, Uniswap has has really popped. Like it's gone up. I mean, I think it was like 50 cents when it first launched, right?

The price was so incredibly volatile. It went up to $10 and then down to $50. And then now it's been hovering around $3. And then to get the- Ryan, press command plus like one or two times. Okay. So to get the fully diluted market cap of that, right? So that means after four years when that $1 billion is all released,

what you do is you take that $1,000 fully diluted market cap, and you multiply that by the price, nice, easy round numbers. So if it's trading at $1, that means the fully diluted market cap of unitokens is $1 billion. It's trading at what right now, David, about $2, $3, $2.5 to $3 is where it's been fluctuating. Okay. So Uniswap spending existence for a while, getting more volume than Coinbase right now, and it's being valued at $3 billion. The question is, is that expensive?

Is that cheap? What should the price of a unitoken be? Again, this is not financial advice, but what we want to do is provide you framework. for how to look at this. And one framework we think is super valuable is the price to earnings ratio of the uny token. So Andrew King makes the point. You got to know when to sell your crop and when to hold or buy more.

And he makes the point that he thinks unitokens are actually valued fairly, undervalued, a PE ratio of 41. It's a modest. So price to earnings ratio, right? So Netflix is 80. Price to earnings ratio of Netflix stock is 80. or so. Price earnings ratio of Amazon stocks, like 160 right now. Do you think Uni will grow faster than Amazon and Netflix? Well, it certainly has in the last two years. Yeah, the trajectory is in

its favor. Yep. So, okay, so price earnings ratio, you can also take a look on token terminal, which is one of my favorite websites foreseeing this kind of thing. And they call it price to sales ratio, which is a bit more accurate. But if I sort by price to sales ratio, I can see the valuation of uniswap right here. They used to do they use kind of a, I think a 30 day type metrics. It's a little bit different than the number Andrew came up with. We're running on limited data here, but yeah. Running unlimited data.

But the point is when you use kind of a similar apples to apples metric, it is the lowest, second lowest price to earnings ratio capital asset out there. I think when people see the $3 billion. valuation from the uniswap token, they get a little sticker shock because nothing in defy is that like highly evaluated, right? Like one to one in one point five billions for like the triple a protocols that we all know and love. But people have to remember this is uniswap.

This is uniswap. This is like the beloved defy protocol. And look at this. Look at annualized gross volume. Is doing more volume than Coinbase. Like what do you think Coinbase's valuation is? Coinbase's valuation is at least larger than. 10 billion. I think it's between like 15 and 25 billion dollars. Yes. And Coinbase is beating them

on volume and it's a protocol, right? And Coinbase has 1,200 employees. Uniswap has 11 employees. It seems like there might be some efficiency delta there too. One of those is more efficient than the other. That's exactly right. And another way to look at it is this. This is something we've shown before, but this is crypto fees that various protocols generate. It has more fees than Bitcoin. Yes. Like a decent amount more. Yeah. Decent amount. Seven-day average fees over 200K more than Bitcoin. Yeah.

Right. That's pretty crazy. Again, not financial advice, but I think that I'm personally going to be sitting on my hands, not really looking at that sell button. Is that what we're, did we just make a decision with the bankless treasury? I vote to not sell the token. I concur. Okay. So we're not selling. 33 Unitokens for a while anyway.

For a while. All right. Sounds good. Okay, so what else should we talk about here? Can we talk about the weather, does it make sense? Another question I think people probably have is, does it make sense to actually liquidity mine? So that that's basically the four initial pools that come out in seven hours that we're

talking about. ETH-ETH-U-S-D-C, ETH-D-T-T-Eth-W-Rapt Bitcoin, right? so other monies on top of Ethereum. So Coin Gecko, which has been doing just a bang-up job on D-Fi stuff lately, they released a yield farming dashboard, which I think is pretty good. And what you can do is you can switch to D-Gen mode. Check this out, David. Have you seen this?

Oh, my God, yes. Why is that not default? Yeah, it's not default. You have to opt into D-Gen mode. All right. So I haven't fully explored with the differences, by the way, but it's just fun. Okay. So what we have here is basically when you're in D-Gen mode, some returns calculation.

I haven't fully investigated the returns calculation, kind of what all the variable parameters are, but you can kind of get a flavor of the various estimates for uniswap, right? With Ust ETUSTT or ETH USTC, ETH-USDC, ETH-D-Eth-D-C, ETH-D-D-Eth-D-Eth-D-Eth-D-Eth-D-Eth-D-Eth-D-Eth-D-E-Eth-D-E, right? and kind of calculate the returns based on the current price of uniswap this way. So that's certainly one way to look at it. Another way that I like to look at it is because we have this issue when you deposit two sides, the liquidity pool of impermanent loss. David, you have a quick explanation of what impermanent loss is.

Yeah, sure. So when you deposit Ethan die to the same pool, what you're allowing people to do is you're giving them the freedom to purchase one of your bags to sell them your other bag, right? And so if you deposit both, you're claiming that you're okay with owning any balance of both of these things. And as one or the other appreciates and depreciates, you should be okay with that adjustment, right? And so the question as to whether you should provide liquidity or not is kind of a function of how okay are you with both assets, right? And so I think that's why the first pool in Uniswap that really got a ton of liquidity was the Ether MKR pool. And

it's because those two tokens kind of tracked each other in U.S. dollar price, right? And so there wasn't much impermanent loss to be had there. What would make me nervous about the ETH-DI pair is that, like, if ether doubles in price, you will be owning less ether than if you had just hold it, and you will be owning a lot more dye, and so you will be making money, but you'll be making less money than if you had just been holding ether, right? And so that's the risk that you're taking. If you're an ETH bull, you kind of don't want to do the ETH-DI pair, because, If ETH goes up in price, you end up losing some of the die that you've contributed and exchanging that and selling it early for the die.

That's essentially what the liquidity pool does is it kind of exchanges that ETH for die under the covers, right? Yeah, exactly. And so that's why out of these four pools, the ETH WBT pool might be better. If you think that prices are going to go up, then the ETHWBTC pool might be for you because BTC and Ether are much more correlated with each other than ether is to U.S. dollars, right? And so if you are really looking to farm this unitoken and you don't know, but you also are bullish on ether and probably therefore also Bitcoin, the eth, WBT pool might make the most sense. And I'm going to be willing to bet that that is the pool that experiences the largest increase in liquidity because of that logic. Okay. And then the other, I guess, variable to consider when you're thinking about yield farming, something like this is you get more if, you know, the fewer people,

people who contribute to the pool, essentially, the better for you. Right. So what you just said is if you think a lot of liquidity is going to come to the ETH WBTC pool, then that could also dilute the amount that you receive. Exactly. So you have to monitor that too. Right. And ultimately, it could start, it could start super high right here, like you see these yearly numbers. That's not going to last. Because as liquidity gets injected in, those amounts per share of the liquidity pool will decrease. Yeah, there's not more uniswap that's issued. It's the same amount of uniswap tokens that are issued spread across from larger and larger people. Exactly. All right. So one thing that Jacob, a friend of ours, Coin Metrics said,

is he actually argued that like, hey, this is awesome, but there's also a bit of a dark side to the Uni AirDrop. He said that Wales hugely profited. He said that some scams who are LPing their own coin, you know, like maybe a hex comes to mind. Yeah. Hugely profited. And then he said, look, the four-year vesting schedule for sort of the team and the insiders,

it's more like a two-year vesting schedule, right? And then he said claim on fees unclear, though expected. I don't know what that means. But what do you think of some of these takes, David, about kind of the dark side of it. Yeah, yeah. So I want to commend Uniswap for trying to have like a very anti-political attempt at distributing. And so like if we wanted to kind of fix some of these problems that Jacob outlined,

like whales got a lot of tokens and, you know, some pools probably shouldn't have gotten tokens. That starts to, you, we start to make, be making decisions as to like who deserves what, right? And these are subjective decisions, right? These are political choices. And so, like, well, maybe you say, like, you know, whales got too much, but they're the ones that provided the value, right? And then if we also say, like, you know, Hex shouldn't have gotten it. Well, then you're making a decision that Hex is a scam, which I don't really think too many people are going to fight you on, but it's still a, like, a decision at the end of the day. And so to some degree, like, just doing what they did and just like blanket, blanket air dropping uniswap, like, equally and relatively trying to have.

a politically reduced distribution, I think makes sense. Yeah, I agree. You know, like it's tough to kind of rate these different distributions. But if you think about Bitcoin had kind of an immaculate conception, right? You know, on the spectrum, I probably rate that in A relative to all other distributions in crypto. Heath had a pretty decent one as kind of an immaculate ICO where you could, anyone could enter totally permissionless, not VC funded, no accredited investor rules, right?

So maybe that's an A too. Maybe it's a B plus, something like that. Yam had a decent one, to be honest. That was the first kind of like vegetable style. I wouldn't give it an A, but I would give it a B plus. I feel like it's, you know, at least a B maybe. And then Wifi had a fantastic distribution too in rewarding some of their early users. You know, maybe that's an A minus a B as well.

I give a B plus. This ranks right up there. This ranks up there. Not perfect. Right, you know, but I don't think it's a C. I just, I feel like, you know, some of the redeeming qualities of it are 60% does go to the community, right? And a whole bunch of LPs who were early adopters of this did really well on it. And basically everyone who was using defy prior to September 1st, 2020, got something from it.

Right. And a lot of those folks are going to hold. Right. Not bad. I can't think of another protocol that's done that. Right. And the best thing about this. the retroactive distribution is one of the last remaining bastions of fair launching, right?

Because it turns out that we've been farming uniswap since 2018 and we didn't even know it, right? Like, turns out we've been yield farming for years according to yours. Well, it turns out there's no such things in permanent loss. Yeah. Because like, you know, if you deposit into the pool and you're a big liquidity provider, you were making money every month and didn't know it. It was just paid in the future to you. Yeah.

If you supplied ether die liquidity when ether was $80 and then ether mooned and you lost a bunch of ether, you just made a bunch of uniswap to make up for that, right? Yeah. And so like some whales took a hit and they are being compensated for that. And, you know, and at the end of the day, like, one person that made, you know, 10,000 trades on unSwap versus one person that made one trade on uniswap, getting the same amount of uniswap tokens is kind of like maybe that doesn't feel right. But also distribution, distribution, distribution. Yes. So the new thing was the new thing I felt like was two-year retroactive distribution, right? But you can already see that people are thinking about that and already starting to front run it.

So Sue from Three Arrow's Capital tweeted something out like, hmm, what's the last defy darling exchange not to issue a token? Right. Right. And they haven't issued a token yet, but it's similar style to Uniswap. You know, it's got some VCs involved. So, hmm, should we front run that? Should we start trading D-YD-X right now just in case? Supply liquidity, leverage long ether 4X up, 4X down at the same time.

Let's just go to D-Y-D-X, right? That's why, like, as soon as a new distribution comes out, like, you get to use it once. One ball in the chamber. Exactly. And then it starts to get gamed and it starts to degrade over time, which is why we're starting to see all the, you know, all the crappy farms that we've been seeing lately. But David, anything else we should say on this. Alpha Leak Edition, the Uniswop Edition. Anything else we need to tell listeners?

I don't know. I think that was it. I think we covered everything. I'm sure there's something that we could talk about, but we'll probably talk about it again on the state of the nation, right? And so whatever happens between now and next Tuesday with Uniswap, because this isn't even 24 hours news. It's a 12-hour old news. So we're going to watch this, and then we will update everyone on this state of the nation on Tuesday. All right. We will include some links to resources as usual action items for you guys today, you can, of course, go claim your Uniswop tokens. If there's an eth address where you've interacted with Uniswap,

make sure you go do that. You can also think about whether it makes sense to start providing liquidity to Uniswap. Of course, none of this is risk-free. All of it has in permanent loss risk, which you should understand as well as smart contract risk. So keep that in mind. This has been the Alpha Leak Edition,

a new show that David and I are creating when exciting news comes out and it's available to you on YouTube. So make sure you hit that subscribe button as well. That's it for me. Cool. And we're down here.