Hey yo, what is up with the new week & going
on with my people the Chico Army, and if you
don’t know who I am, just a lowly viewer
of the tube.
I’m Tyler, the host of the only crypto channel,
that delivers you that fire content no matter
what.
You know our real life twisted metal.
It’s time for Chico Crypto!
Well isn’t this a twisted thought of mine,
Ethereum is going to be the gravity well,
that sucks in all assets, crypto & beyond...and
it begins with the granddaddy BTC.
I’m sure you saw the headline over the weekend
from Coindesk “Bitcoins Are Being Tokenized
Faster Than They’re Mined as DeFi Craze
Continues”...and in the article is shows,
that over last week, their were more wrapped
bitcoin, WBTC minted, than were mined by the
bitcoin protocol & participating miners.
Now you guys should know what WBTC is, it’s
a centralized as of know, version of tokenizing
bitcoin on ethereum, which uses a combination
of customers, merchants, and centralized custodians,
who watch over the placed BTC.
So, a centralized version of BTC on Ethereum,
is already overtaking and outpacing bitcoin
mining production....
What’s going to happen, when it’s fully
trustless, and that bridge is fully secure??
Well, going to the wBTC community list, this
centralized version was made possible, through
a collaboration of crypto companies coming
together, including Kyber, REN, Custodian
BitGo, Set Protocol, Compound, Maker & more.
Now, within that list of projects, there is
a certain one that is taking the next leap
into Bitcoin on Ethereum & creating the bridge,
that doesn’t have a central gatekeeper,
saying who can cross, when & why...but its
open to all, at anytime, for any reason.
Were you able to guess right!?
That project is REN & I don’t think many
people realize, the value in what they have
brought to the table….
So how are they getting Bitcoin on Ethereum
in a trustless way?
Well through the RENvm, or virtual machine...which
got it’s mainnet release, just in late may
of this year.
How does it work?
Well I’ve explained it a few times, so here
is a quick version, dapps, can use the VM,
to swap BTC for renBTC, which is the ethereum
version of the BTC, IN the background, the
VM is a distributed network of darknodes,
over 1100 nodes right now to be exact, where
all the nodes take custody, of the BTC private
key...the VM aka network of nodes then mints
the renBTC and it’s sent to the customer
or requesters ethereum wallet to use in the
DeFi Ecosystem.
Now in reality, the RENVM has only had 2.5
months on the mainnet...a sliver in time,
but the VM has picked up like crazy, going
to the chart on daily mints of renBTC...it
was slow to start, but by the middle of June
mints started to pick up, getting above 250
per day, then by the middle of august we broke
the 500 level, actually getting to 750….but
look at just a couple days ago, over 1500
renBTC minted in 1 day, which means over 1500
BTC were locked in the renVM with those dark
nodes.
That is over 17 million dollars….in just
1 day, and if we go to their dashboard, the
total value minted as of yesterday was 91
million, that is over 18 percent in just 1
day.
Ya things are picking up for REN & it has
everything to do with BTC on ETH, because
if you didn’t know, the RENVM works with
other cryptos and blockchains.
If we go back to the dashboard, we can see
both zcash and bitcoin cash are available
to mint, but it’s not being utilized, as
all the minting is being done with BTC, only
a total of just over 27 thousand of the 91
million minted is in either bcash or zcash.
Pretty much nada, zilch, zero…
So why is this?
Why has the number of bitcoin tokenized on
Ethereum risen so substantially in the past
month...between the RENvm and other options,
like WBTC, and even more...we have grown from
15000 BTC on ETH 30 days ago, to 45000 as
of yesterday.
Well DeFi is your answer….and let me explain.
There are whales, sitting on stacks of BTC...some
with between 100 to 1 thousand BTC, and even
some with 1000+.
This is seen from Bitinfo, and their wallet
tracked rich list...there are 13,799 wallets
with between 100 to 1k BTC, and there are
2196 wallets with 1k+ BTC.
Now that is a lot of money, even at 100 BTC
its over 1 million dollars, these are the
guys in my opinion, who are experimenting
with these protocols...making a large bulk
of the mints.
As they have risk tolerance, if something
goes bad, it's worse if someone loses 1 BTC
when they only have 5, than if someone loses
5 if they had 100.
So we know who is doing the majority of the
Ethereum BTC mints, but why?
What are they doing with it?
You gotta know, they ain't just holding it
in their wallets, as that is what their regular
ole BTC was doing, sitting and collecting
dust.
Well, they are using it in DeFi my friends.
And I’m going to show you a freaking amazing
example of it.
So, I have covered this DeFi protocol before,
TokenSets...in a very informative video of
what it is, and how it works..if your interested
after this, video is in the description.
But a quick overview, it’s a trading protocol
of sorts, where you buy into certain preset
trading strategies, based on automation aka
robotic sets, or people, called social sets.
The strategies are just tokens, which people
buy and your share of the sets tokens, represents
your share of the strategies pool.
And it grows and falls, based on the underlying
set token trading strategy.
Now I wonder...which token set is the largest??
Which has grown the furthest since the launch?
Well in the social category, sorting by highest
set cap, we can see it’s the BTC network
demand SET 2.
With over 128 BTC with it.
So what does this set do?
Well into the details of it….the set was
created by the bitcoin data analytics firm
byte tree, and the set “ aims to protect
investors against large drawdowns in bitcoin’s
value and boost overall risk-adjusted returns.
It will enter bitcoin when the fundamental
network demand is strong and exit into compound
USDC on weakness.
The algorithm incorporates four network demand
metrics across six different indicators, to
give an overall allocation score.
These metrics are Network Fees, Transaction
Value, Velocity and Miners’ Change in Inventory.
So it automatically goes into and out of stablecoins,
and back into and out of Bitcoin...no not
regular BITCOIN, but wrapped BITCOIN, based
on BTC fundamental data from byte tree.
That is not freaking possible right now on
the BTC blockchain, where a smart contract
does the trading for you, in a trustless way….This
is just one example, of where this BITCOIN
is going & in a second I’ll show you more,
but first a word from the sponsor of this
video, Coinzoom, and like always the full
details of our agreement are down in the description.
Now Coinzoom is the full suite, of crypto
options, including an sleek and fast crypto
exchange, with fiat on and off ramps, visa
card crypto cards, & more.
And it’s based & regulated within the United
States, which we know, is few and far between.
So another option, with more options should
be welcomed.
Now what I would like to show today, is some
of those options & we need to begin with their
card, as that is what set’s Coinzoom apart.
Now when people think, visa Card, they automatically
think of a physical one you can hold in your
hands.
But the nice thing about their option, is
if you sign up you automatically get a digital
version of the card on their mobile application,
and links for that are of course in the description.
Which can be used right away to spend online...anywhere
visa is accepted, amazon, microsoft store,
on your xbox, basically anywhere on the web.
And if you wanna get a physical one, it’s
a one time fee of 100 of their zoom tokens,
which as of right now, is under 30 dollars.
Plus, if you hold zoom tokens, differing amounts...
you can be granted different card levels,
each with their own rewards and perks.
And the next thing we will talk about is some
of the coolest perks.
ZoomMe Global, is their P2P transfer system
built into their mobile and desktop applications.
This allows you to send both crypto and fiat,
instantly & internationally between friends
& family.
With the basic green gard, your limit is 500
dollars per day, but with the black card,
you get up 10 thousand dollars per day!
Another slick feature of the card is the Debit
round up feature, which is included with even
the basic green.
This feature keeps your skin in the crypto
game if you would like.
For each purchase with a Coin Zoom card, you
can automatically have it round up to the
nearest dollar amount, and that fiat amount
is transferred back to your coin zoom accoun...t
since Merchants are taking cash and you crypto
is being converted into cash for them, the
debit round will return it automatically,
the rounded amount back into the crypto or
cryptos of your choice.
That just a couple of the perks, there are
more, like cashback rewards, cardholder trading
fee discounts on the exchange, earning interest
by holding your crypto with coinzoom, staking
rewards for both algorand and dash, plus a
whole lot more.
So if you're looking for another more robust
regulated fiat option within the US, Coin
Zoom just might be right up your alley!
Now back to what else you can do with your
Bitcoin on the gravity well Ethereum.
Setprotocol, decentralized copy trading, and
strategies...not bad, but what else?
Well we can check, going to coingecko and
looking at markets, we can see where wBTC
volume is coming from, by sorting by highest
volume….#1 Compound, #2 Curve Finance, #3
Uniswap & #4 balancer & then RenBTC...not
on compound yet..but #1 is Curve, #2 is balancer,
and #3 and #4 is uniswap and balancer.
Similar, with Curve, Balancer, and swappers
like uniwap and one inch.
But first let’s examine, wBTC on compound.
Here are the market details, as we can see
2232 WBTC are being supplied, which is over
19 million dollars in Bitcoin.
Now if we look at APY, from supplying it to
borrowers, it is just .63 percent.
Why would people do this for such a low return?
Well, there is a market being made, and I
wouldn’t doubt some whales are playing both
sides.
Now if you see the distribution APY, you also
get a 1.36 percent for supplying due to compound
governance token rewards.
This is the supply side though,
Let’s take a look at the borrow side...of
WBTC...as we can see to borrow BTC, you would
be paying an interest rate of 5.84 percent
per year, Yikes! but since Compound governance
tokens, are even given to borrowers, not only
suppliers, you can see they have a distribution
APY right now of 11.87 percent, thus to borrow
WBTC right now, you are actually getting paid,
as you have a interest rate of negative 5.86
percent.
So, farming those compound tokens, and providing
liquidity.
That's what it’s all about right now, but
there is also those other ones, like Curve
Finance, Balancer and the swappers.
What is going on there?
Well gonig back to wBTCs markets, the second
largest is one of Curve’s and that is the
WBTC and REN BTC market with over 14 million
in 24 hour volume.
The centralized bitcoin on ethereum and a
decentralized version getting swapped back
& forth...hmmm interesting but why?
Well this has to do with you getting in on
the action...
Do you have BTC just collecting dust & want
to quickly get into the world of bitcoin DeFi?
Well the wbtc cafe is the best place to do
that & this was created none other than...by
REN.
What it does is allows you to skip those checks,
and mint wBTC, any fraction, right through
the application & it connects right up to
online and hardware wallets.
The wBTC cafe uses a combination of the renVM,
renBTC, wBTC, and curve finance to accomplish
this, as curve is the swapping protocol created
for minimal slippage.
So you can get wBTC in a trustless manner
& people are taking advantage of this, and
the more people that demand wBTC through the
cafe, the more renBTC that is needed...self
reinforcing, and solidifying that Ethereum
is the gravity well...cheers viewers, I’ll
see you next time!
