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

Tools from our sponsors to go bankless: 🌐 UNSTOPPABLE DOMAINS https://bankless.cc/unstoppable - GET A HUMAN READABLE CRYPTO DOMAIN https://bankless.cc/unstoppable 🌈 ZAPPER - ULTIMATE HUB FOR DEFI http://bankless.cc/zapper - ZAP INTO DEFI 💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 💸 AAVE - BORROW & LEND DEFI ASSETS ON ETHEREUM https://aave.com/ ------ 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 https://podcasts.apple.com/us/podcast/bankless/id1499409058 | Spotify https://open.spotify.com/show/41TNnXSv5ExcQSzEGLlGhy | YouTube https://www.youtube.com/c/bankless | RSS Feed http://podcast.banklesshq.com/ Leave a review on iTunes https://podcasts.apple.com/us/podcast/bankless/id1499409058 Share the episode with someone you know! ----- Don't stop at the podcast! Subscribe to the Bankless newsletter program http://bankless.substack.com/ Watch Bankless shows and tutorials on YouTube https://www.youtube.com/c/bankless Visit official Bankless website http://banklesshq.com/ for resources Follow Bankless on Twitter https://twitter.com/BanklessHQ Follow Ryan on Twitter https://twitter.com/ryansadams Follow David on Twitter https://twitter.com/TrustlessState ----- 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.

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:08David Hoffman?

  Este episodio de Bankless es traído por Ave. Ave es un gran lugar para pedir y darle dinero a los activos digitales en Ethereum. Puedes depositar tu activo preferido en orden de pedir un activo diferente, que es particularmente bueno para el cultivo de ganancias si quieres depositar tu Ether en lugar de venderlo para que puedas pedir Dyer o USDC para cultivo de ganancias. Una de las cosas geniales de Ave es que te ofrece dos tasas de interés variables, una que cambia según el mercado, o una estable que se fija para el largo plazo. Visita them en ave.com. También te traemos a Monolith. Monolith es una herramienta realmente importante para ayudarte a ir a Bankless, pero aún así te permite comprar tus comestibles en tu tienda de comestibles local. Monolith te enviará una tarjeta Visa muy sexy que puedes usar donde sea que aceptes visas, lo cual es básicamente todo el mundo.

• 0:53David Hoffman?

  Pero en lugar de usar los dólares en tu cuenta bancaria, utiliza el Dyer en tu monolith Smart Contract Wallet. Visita them en monolith.xyz y obtén tu tarjeta Visa Monolith hoy. ¿Sabes esa serie de caracteres aleatorias que tienes que pasar a tus amigos y familiares para mostrarles cuál es tu dirección de Ethereum y ellos simplemente no lo entienden? Unstoppable Domains corregirá ese problema. Con Unstoppable Domains obtienes un nombre que es legible para los humanos, así que puedes decirles que en lugar de pagarle a ti en 0x1743Q4, simplemente puedes decirles: "Hey, pídeme en davidhoffman.xyz o davidhoffman.zil". No tienes que preocuparte por enviar la dirección equivocada porque es legible para los humanos. Y esto funciona no solo para Ethereum, sino también para Bitcoin, para Litecoin, para cualquier blockchain que funcione con Unstoppable Domains.

• 1:38David Hoffman?

  Incluso puedes decir a los Bitcoiners que te envíen Bitcoin a davidhoffman.eth. Incluso te permite configurar sitios web sin censurar que siempre son accesibles, incluso si el estado nacional chino no los quiere tener. Visita them en unstoppabledomains.com.

• 1:54David Hoffman?

  If you're still using Blockfolio to check up on your portfolio, you're behind the times. Check out zapper.fi because Zapper looks directly on-chain 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 Aave, Zapper knows, and it will give you a comprehensive report of your entire DeFi portfolio. Not only that, but you can even make transactions through Zapper that allow you to invest in various DeFi protocols like Balancer or Uniswap or Curve. Check them out at zapper.fi.

• 2:31Ryan Sean Adams?

  All right, guys. Welcome, everyone. This is a new segment that we're doing on Bankless. 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?

• 2:51David Hoffman?

  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 events, I think, ever. I think it was just gonna sweep the floor with this one. It's pretty cool.

• 3:10Ryan Sean Adams?

  Wow. Okay, well, we're gonna talk about that. So here's the format. We're gonna try to keep these relatively short, but first, we're gonna tell you what it is. Then we're gonna 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's been having around this token, and then we'll close it up. So, David, I'm gonna share my screen. And let's talk about the Uniswap launch first. So where did this come from? Like, what time was it actually launched?

• 3:39David Hoffman?

  Yeah, this was launched around dinnertime, my time, so like 7:00 PM, 8:00 PM. We saw the, somebody leaked the token minting event, and like 15 minutes later,

• 3:51David Hoffman?

  one moment, and like 15 minutes later, everyone had found out that like the Uniswap token was here, and that is, it's something that you can go and claim. So they had this like planned and ready to go.

• 4:06David Hoffman?

  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 Uniswap team.

• 4:20Ryan Sean Adams?

  Yeah, they did it under the cover of night. So it was like 8:00 PM 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, 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 in terms of total volume.

• 4:57David Hoffman?

  Nice little pat on the back from Uniswap here, right before they start talking about the value of their token.

• 5:02Ryan Sean Adams?

  Yeah, exactly. Alright, so let's get into the goods. This is the allocation. So first, we've got 60% going to Uniswap 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? Like, how would you rate it?

• 5:45David Hoffman?

  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.

• 6:03David Hoffman?

  Yeah, and like sure that that could be a little bit high on the high end of things. But at the same time, the 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 Uniswap into being what it is, right? They 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 the anonymous founders, they absconded with the funds.

• 6:41David Hoffman?

  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 I'm OK with it.

• 6:51Ryan Sean Adams?

  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 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? Maybe let's 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 400 uni per address?

• 7:31David Hoffman?

  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?

• 7:43Ryan Sean Adams?

  OK, 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 uni tokens. All you have to do is claim them.

• 8:04David Hoffman?

  Yep, yeah, and 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 entrants into the DeFi world that just made their first transaction on Ethereum like a couple of 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 weighted it for the amount of trades, but again, not going to complain.

• 8:41David Hoffman?

  400 unit tokens, which are trading at $3 right now, that's $1,200 to anyone that's ever used the Uniswap protocol ever, right?

• 8:50Ryan Sean Adams?

  Yeah, it's, it's, it's airdrop money. This is the stimul-, this is the, the Uniswap stimulus package. You, 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 was be a user, be early, be on the bankless journey, essentially, and front run the opportunity, you get $1,200. Not bad, per wallet.

• 9:24David Hoffman?

  So on, on Coin, Coin Gecko, on DeFi Market Cap, on DeFi Pulse, now Uniswap has like this $2 billion valuation, which we're going to talk about whether that valuation is justified or not. $2 billion 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, it's one of the coolest distribution events of all time.

• 10:04Ryan Sean Adams?

  You should compare that to another really cool distribution event, which was the, the Wi-Fi token, Wi-Fi, which we've talked about. So how many Wi-Fi token holders do we have versus Uniswap?

• 10:14David Hoffman?

  Yeah, Wi-Fi token holders, it's roughly like 11,000, right? 11,000 people have either farmed or purchased Wi-Fi from, from the Uniswap. Or from the wi-fi farming way 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 decentralize ownership of the protocol, it went from centralized to maximally decentralized. The most decentralized thing on top of Ethereum like that.

• 11:00Ryan Sean Adams?

  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 DeFi, 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. 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?

• 11:43David Hoffman?

  Yeah, liquidity providers got paid and so they, 10% of all Uniswap tokens went to people that traded. 5% 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 1/100, right? Because 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, because it waited and especially it weighted early liquidity providers. It weighted them stronger than later liquidity providers.

• 12:28David Hoffman?

  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.

• 12:51Ryan Sean Adams?

  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 DeFi journey. These are like DeFi OGs, right?

• 13:10David Hoffman?

  These are people that are being their own bank.

• 13:12Ryan Sean Adams?

  Exactly, exactly. So that's super exciting. All right. So also stockholders got a little something? Should have bought some socks, David.

• 13:19David Hoffman?

  Should have bought some socks. So I think the sock token price went through the moon as well, because people wanted to redeem socks for Uniswap tokens.

• 13:26Ryan Sean Adams?

  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, BAP's 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 from what I recall?

• 13:58David Hoffman?

  Which is great, because that disincentivizes passive uni 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 hardcoded 2% a year. It's not the Federal Reserve's 2% wink wink a year, when it's actually like 10% a year. It's hardcoded 2% a year.

• 14:41Ryan Sean Adams?

  Okay, alright, 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 uni tokens. And here are the pools that they have opted. ETH USDT, ETH USDC, ETH DAI, ETH WBTC. Boy, David, that's a lot of ETH in there.

• 15:22David Hoffman?

  It's a lot of ETH. You love to see it.

• 15:23Ryan Sean Adams?

  Why so much ETH?

• 15:24David Hoffman?

  It's because Uniswap protocol is an ETH maxi, clearly.

• 15:27Ryan Sean Adams?

  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, we can kind of show the user interface.

• 15:44David Hoffman?

  There's a countdown timer, right? I think we're like nine or eight hours away.

• 15:47Ryan Sean Adams?

  This is better, yeah.

• 15:48David Hoffman?

  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, the, 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, I think that the most obvious next one is the Uniswap, the uni token ETH pair, right? ETH uni. And because people want to provide liquidity to Uniswap because their bulls on Uniswap, right? Or on the uni token. And so I think that's going to be the next one that comes.

• 16:31David Hoffman?

  And that one, 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, and then it just kind of goes from there. But yeah, Uniswap, Uniswap yield farming is here.

• 16:47Ryan Sean Adams?

  All right. So if I want to 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?

• 17:24David Hoffman?

  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 50,000 people are trying to claim their Uniswap tokens. And remember, Uniswap tokens, the minimum you got was $1,200-ish worth of Uniswap 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.

• 17:55Ryan Sean Adams?

  I like, by the way, I like this gasnow.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, it's still pretty, it's still pretty high. So be cautious of that, be careful of that. But a lot of this is from the Uniswap activity.

• 18:20David Hoffman?

  While we did just say that, should we go ahead and claim our Uniswap tokens, Ryan?

• 18:23Ryan Sean Adams?

  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?

• 18:47David Hoffman?

  Yep, absolutely. Okay, I'm going to take back screen sharing from you, Ryan. And then, so we have provided liquidity for the BAP token, right? And 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 to supply that. And so we have 400 ETH plus it looks like we got 333 more ETH or more uni, excuse me, to from supplying those BAP tokens. And so I'm on the the Uniswap site. We'll have that link in the show notes. I think there might be.

• 19:18Ryan Sean Adams?

  This looks like a special Uniswap site, like IPFS.

• 19:21David Hoffman?

  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 Uniswap tokens. So this is the website I've been using. I think the other one is backup. Let me, let me check. Let me check.

• 19:32Ryan Sean Adams?

  And it's just a user interface, right?

• 19:33David Hoffman?

  Yeah, it's just a UI.

• 19:35Ryan Sean Adams?

  Yeah, but the IPFS link is super cool because that's actually not using centralized servers to do it.

• 19:41David Hoffman?

  Exactly. Yeah. Okay. But the 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 that other website also works. Okay, so here's my 733 uni that the website knows that I that I have. And so I got 333 for providing liquidity and 400 for for trading once.

• 20:05Ryan Sean Adams?

  Good for you, David.

• 20:06David Hoffman?

  Yeah, nice job.

• 20:07Ryan Sean Adams?

  Good job, man.

• 20:08David Hoffman?

  Nice job. We're worked hard for this. I'm going to boost this gas fee because we're on a YouTube video.

• 20:15Ryan Sean Adams?

  Wow, you are generous to the miners, friend.

• 20:17David Hoffman?

  Yeah, mhm, indeed.

• 20:19Ryan Sean Adams?

  650 GAY. That's painful.

• 20:20David Hoffman?

  Yeah.

• 20:21Ryan Sean Adams?

  But I mean, that's only how much? That's like 25 bucks?

• 20:24David Hoffman?

  25 dollars to to claim. What are we getting? We're getting like $2,000 worth of Uniswap tokens to the to the Bankless Treasury.

• 20:30Ryan Sean Adams?

  There you go.

• 20:31David Hoffman?

  And let's go.

• 20:32Ryan Sean Adams?

  Bankless Treasury.

• 20:32David Hoffman?

  We'll go watch this transaction.

• 20:34Ryan Sean Adams?

  Our stimulus. Our stimulus fund from Uniswap.

• 20:38David Hoffman?

  Yeah.

• 20:38Ryan Sean Adams?

  It's faster than Congress.

• 20:39David Hoffman?

  Boom, there it is. We just claimed 733 Uniswap tokens.

• 20:44Ryan Sean Adams?

  Crazy, dude. All right.

• 20:45David Hoffman?

  Virtual high five, Ryan.

• 20:46Ryan Sean Adams?

  Well, yeah, nice job. We earned it. All right, so let's talk about what like what people should do with that. Of course, none of this is none of this is financial advice, right? So but I think there's a legitimate question as to whether the token is overvalued or undervalued or how you even.

• 21:07David Hoffman?

  Highly valued, that's for sure.

• 21:08Ryan Sean Adams?

  Yeah, so how you even value this thing? You're gonna have to give me a screen share back, David, I think.

• 21:13David Hoffman?

  Oh, pardon me.

• 21:13Ryan Sean Adams?

  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?

• 21:39David Hoffman?

  The price was so incredibly volatile. It went up to $10 and then down to 50 cents. And then now it's been hovering around $3.

• 21:47Ryan Sean Adams?

  And then to get the

• 21:47David Hoffman?

  Ryan, press Command plus like one or two times.

• 21:50Ryan Sean Adams?

  Okay, so to get the 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 billion fully diluted market cap and you multiply that by by the price, nice, easy round numbers. So if it's trading at $1, that means the fully diluted market cap of uni tokens is $1 billion.

• 22:11David Hoffman?

  Right.

• 22:12Ryan Sean Adams?

  It's trading at what right now, David? About $2, $3?

• 22:15David Hoffman?

  Two and a half to $3 is where it's been fluctuating.

• 22:17Ryan Sean Adams?

  Okay, so Uniswap's been in 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 uni token be? Again, this is not financial advice, but what we want to do is provide you frameworks for how to look at this. And one framework we think is super valuable is the price to earnings ratio of the uni token. So Andrew Kang makes the point, you gotta know when to sell your crop and when to hold or buy more. And he makes the point that he thinks uni tokens are actually valued fairly, undervalued, a P/E ratio of 41, so price to earnings ratio, right?

• 23:01Ryan Sean Adams?

  So Netflix is 80, price to earnings ratio of Netflix stock is 80 right now or so. Price earnings ratio of 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.

• 23:16David Hoffman?

  Yeah, the trajectory is in its favor.

• 23:18Ryan Sean Adams?

  Yep. So, okay, so price earnings ratio, you can also take a look on token terminal, which is one of my favorite websites for seeing this kind of thing. And they, 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.

• 23:46David Hoffman?

  We're running on limited data here, but yeah.

• 23:48Ryan Sean Adams?

  Running on limited data, but the point is when you, you use kind of a similar apples to apples metric, it is the lowest, second lowest. Price to earnings ratio, capital asset out there.

• 24:02David Hoffman?

  I, I think when people see the $3 billion valuation from the Uniswap token, they get a little sticker shock because nothing in DeFi is that like highly evaluated, right? Like, like one, one to one and 1.5 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 DeFi protocol.

• 24:25Ryan Sean Adams?

  Well, but, and look at this, look, look at annualized gross volume.

• 24:28David Hoffman?

  Is doing in 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.

• 24:38Ryan Sean Adams?

  Yes.

• 24:38David Hoffman?

  And Coinbase is beating them on volume and it's a protocol, right?

• 24:42Ryan Sean Adams?

  And Coinbase has 1,200 employees, Uniswap has 11 employees. Seems like there might be some efficiency delta there too. One of those, one of those is more efficient than the other.

• 24:52David Hoffman?

  That's exactly right.

• 24:54Ryan Sean Adams?

  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.

• 25:01David Hoffman?

  It has more fees than Bitcoin.

• 25:03Ryan Sean Adams?

  Yes. Like, like a decent amount more.

• 25:07David Hoffman?

  Yeah.

• 25:08Ryan Sean Adams?

  You know, seven day average fees, over 200K more than Bitcoin.

• 25:13David Hoffman?

  Yeah.

• 25:16Ryan Sean Adams?

  That's pretty crazy.

• 25:17David Hoffman?

  I, again, not financial advice, but I think that I'm personally going to be sitting on my hands, not, not really looking at that sell button.

• 25:25Ryan Sean Adams?

  Is that what we're, did we just make a decision with the bankless treasury?

• 25:28David Hoffman?

  I vote to not sell the token.

• 25:30Ryan Sean Adams?

  I, I concur.

• 25:31David Hoffman?

  Okay.

• 25:31Ryan Sean Adams?

  So we're keeping 733 uni tokens for a while anyway.

• 25:35David Hoffman?

  For a while.

• 25:36Ryan Sean Adams?

  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?

• 25:49Ryan Sean Adams?

  So that, that, that's basically the, the four initial pools that come out in seven hours that we're talking about. ETH, DIE, ETH, USDC, ETH, USDT, ETH, wrapped Bitcoin, right? So other, other monies on top of Ethereum. So CoinGecko, which has been doing just a, just a bang up job on DeFi stuff lately. They released a yield farming dashboard, which I think is pretty good. And what you can do is you can switch to DGEN mode. Check this out, David. Have you seen this?

• 26:22David Hoffman?

  Oh my God, yes. Why is that not default?

• 26:27Ryan Sean Adams?

  Yeah, it's not default. You have to like opt into DGEN mode. All right. So I haven't fully explored with the differences, by the way, but it's just fun.

• 26:34David Hoffman?

  The font.

• 26:35Ryan Sean Adams?

  Okay.

• 26:37Ryan Sean Adams?

  So what we have here is basically when you're in DGEN 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 USDT or ETH, USDT, ETH, USDC, ETH, DIE, 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, this issue when you deposit two sides, the liquidity pool of impermanent loss.

• 27:18David Hoffman?

  Right.

• 27:18Ryan Sean Adams?

  David, you have like a quick explanation of what impermanent loss is?

• 27:21David Hoffman?

  Yeah, sure. So when you deposit ETH and 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 you're, 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, 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 US dollar price, right? And so there wasn't much impermanent loss to be had there.

• 28:05David Hoffman?

  What would make me nervous about the ETH-DIE 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 DIE. And so you will be making money, but you will be making less money than if you had just been holding Ether, right?

• 28:21Ryan Sean Adams?

  Yeah, so if you're an ETH bull, you kind of don't want to do the ETH-DIE 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?

• 28:40David Hoffman?

  Yeah, exactly. And so that's why out of these four pools, the ETH-WBTC pool might be better. If you think that prices are going to go up, then the ETH-WBTC pool might be for you because BTC and Ether are much more correlated with each other than Ether is to US dollars, right? And so if you're really looking to farm this uni-token and you don't know, but you also are bullish on Ether and probably therefore also Bitcoin, the ETH-WBTC 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.

• 29:16Ryan Sean Adams?

  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 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.

• 29:43David Hoffman?

  Exactly.

• 29:43Ryan Sean Adams?

  So you have to monitor that too.

• 29:45David Hoffman?

  Right.

• 29:46Ryan Sean Adams?

  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, basically.

• 30:01David Hoffman?

  Yeah, there's not more Uniswap that's issued. It's the same amount of Uniswap tokens that are issued, spread across larger and larger people.

• 30:08Ryan Sean Adams?

  Exactly. Alright, so one thing that Jacob, a friend of ours, CoinMetrix, 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 whale's hugely profited. He said that some scams who are LPing their own coin, you know, like maybe a hex comes to mind.

• 30:29David Hoffman?

  Yeah.

• 30:31Ryan Sean Adams?

  Uh, hugely profited. And then he said, look, the four-year vesting schedule for sort of the the team and the insiders. It's more like a two-year vesting schedule, right? Um, 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, some of these takes, David, about kind of the dark side of it?

• 30:50David Hoffman?

  Yeah, yeah. So I I want to commend Uniswap for trying to have like a very uh, anti-political uh, attempt at distributing. And so like, if we wanted to kind of fix some of these problems um, that that Jacob outlined, like whale's got a lot of tokens and, uh, you know, some pools probably shouldn't have gotten tokens. That starts to, you, you, we start to make, be making decisions as to like, who deserves what, right? Like, and these are subjective decisions, right? These are political choices. And so like whale, maybe you say like, you know, whale's 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.

• 31:33David Hoffman?

  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 airdropping Uniswap like equally and relatively rela- trying to have a politically reduced distribution, I think makes sense.

• 31:51Ryan Sean Adams?

  Yeah, I I agree. You know, like it's, it's tough to kind of rate these different distributions, but if you think about Bitcoin had kind of an immaculate conception, right? I, you know, uh, on the spectrum, I'd probably rate that an A relative to all other distributions in crypto. Um, ETH 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 A2, maybe it's a B+, something like that. Yam had a decent one, to be honest. That was the first kind of like vegetable style.

• 32:28David Hoffman?

  I wouldn't give it an A, but I would give it a B+.

• 32:31Ryan Sean Adams?

  I feel like it's, you know, at least a B, maybe. And then, uh, Wifey had a fantastic distribution too, in rewarding some of their early users. You know, maybe that's an A-, a B as well.

• 32:42David Hoffman?

  I'd give it a B+.

• 32:43Ryan Sean Adams?

  This ranks right up there.

• 32:45David Hoffman?

  This ranks up there.

• 32:46Ryan Sean Adams?

  Not perfect, you know, but I don't think it's a C. I just, I feel like, you know, the, 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 DeFi prior to September 1st, 2020, got something from it.

• 33:09David Hoffman?

  Right.

• 33:10Ryan Sean Adams?

  And a lot of those folks are gonna hold.

• 33:12David Hoffman?

  Right.

• 33:12Ryan Sean Adams?

  Not bad. I can't think of another protocol that's done that.

• 33:15David Hoffman?

  Right. And, and the best thing about this is the retroactive distribution is one of the last remaining bastions of fair launching, right? Because like, 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 Uniswap.

• 33:33Ryan Sean Adams?

  Well, it turns out there was no such thing as in permanent loss.

• 33:36David Hoffman?

  Yeah.

• 33:37Ryan Sean Adams?

  Because like, you know, if you deposited 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.

• 33:46David Hoffman?

  Yeah. If you supplied Ether diliquidity 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?

• 33:55Ryan Sean Adams?

  Yep.

• 33:55David Hoffman?

  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 Uniswap 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.

• 34:16Ryan Sean Adams?

  So the new thing was, the new thing, I felt like was, um, two-year retroactive distribution, right? But you can already see that people are thinking about that and already starting to front run it. So, um, Sue from Three Arrows Capital tweets- Something out like hmm what's the what's the last DeFi darling exchange not to issue a token?

• 34:35David Hoffman?

  Right.

• 34:35Ryan Sean Adams?

  D Y D X.

• 34:36David Hoffman?

  Right.

• 34:36Ryan Sean Adams?

  Right? And they haven't issued a token yet, but similar style to Uniswap, you know, it's got some VCs involved. So hmm, should we front run that? Should we start trading D Y D X right now, just in case?

• 34:48David Hoffman?

  Supply liquidity, leverage long Ether Forex up, Forex down at the same time. Like, let's just go to D Y D X, right?

• 34:55Ryan Sean Adams?

  That's why, like, as soon as a new distribution comes out, like, you get to use it once. That's like, it's immaculate. Exactly. And then it starts to get gamed and it starts to degrade over time, uh, which is why we're starting to see all the, you know, uh, all the, all the crappy farms that we've been seeing lately. But David, um, anything else we should say on this Alpha Leak Edition, the Uniswap Edition, uh, anything else we, we need to tell listeners?

• 35:20David Hoffman?

  I, I don't know. I think that was it. I think we covered everything. Uh, I'm sure there was something that, that we could talk about, but we'll probably talk about it again on the State of the Nation, right? And so, uh, if, what, whatever happens between now and next Tuesday with Uniswap, because this ju- this is, is, 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.

• 35:41Ryan Sean Adams?

  All right. We will include some links to resources as usual, action items for you guys today. You can of course go claim your Uniswap 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. Uh, all of it has impermanent 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, a new show that David and I are creating when exciting news comes out, uh, and it's available to you on YouTube. So make sure you hit that subscribe button as well. That's it for me.

• 36:20David Hoffman?

  Cool. And we're done here.