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Hey yo, what’s the prowl, with those who
never miss their daily dose, my favorite people, the Chico Army & if you new, thinking about
joining that crew, subscribe & officially drop the title of, viewer of the tube. My name is Tyler & this channel’s crypto
content looks similar to others on the surface, but we always have a surprise….some fries
mothertrucker. It’s time for Chico Crypto! Uniswap, it’s hand’s down the most dominant
DeFi protocol…volume was nearly 260 million 24 hours, and monthly visits to the exchange,
over 4.84 million…..although, if you didn’t know, Uniswap wasn’t very popular last year,
and barely heard of or understood almost 2 years ago….Uniswap, didn’t just show up
overnight, it’s taken some time for people to realize it’s true value…back in 2018,
Vitalik was trying to get people to realize this, he tweeted Uniswap is a huge UX improvement
over previous DEX’s, even the basically centralized ones. Coingecko only tracks Uniswap volume back
1 year, but that’s enough to show the point, back in October 2019…daily volume was under
1 million, it wasn’t until q1 of 2020, when things started really moving & volume picked
up..so, it took a long time, for Uniswap to get to where it is today….things don’t
just happen overnight…even in crypto & if they do, you should be worried.

Now, a little history of Uniswap…the AMM
algorithm, automated market maker which powers Uniswap, was a product of this Vitalik 2017
blog, describing the algo, which Hayden would run with and eventually turn into Uniswap..from
October to November of 2017, Hayden would build the 1st proof of concept…yes, Uniswap
was initially conceived all the way back in the bull run of 2017. Sooooo, who are the Uniswapper’s of today? Who are the protocols, decentralized, which
will change and flip finance on its head, altering how we interact with assets for good? Well, well..welll…wouldn’t you like to
know? Join my paid for, monthly subscription group
to find out!!! Pssshhhhht…ya right, Chico’s content will
always be free.

Well my friends, if you didn’t know, Uniswap
wouldn’t be possible, unless something else with Ethereum was launched in 2016. The ERC-20 standard. Uniswap v2 pools only work with erc20 tokens,
and the ownership of Liquidity Pools is based on the erc20 standard too. Now before this DeFi hype run, and probably
a good thing it happened then….Uniswap v1 allowed another token standard to run unhinged,
erc777…& from this tweet in April of this year, we can see what happened. “imBTC pool from tokenlon on Uniswap has
been attacked & drained…Simple attack vector on ERC777 on Uniswap to steal over $300k & the
vulnerability was even described 16 months prior. This goes to show how dangerous a new standard
with new functions are in the world of Ethereum. And developer, David Mihal covered it in April
after it happened. “) These hooks in ERC777 open up the issue
of reentrancy attacks. This isn't a new attack vector, reentrancy
caused the famous DAO hack. What's new is this attack is possible with
tokens. Developers assume ETH transfers are vulnerable,
but token transfers are safe. Then below he says “There's multiple ways
this can be fixed.

The Consensys audit suggests using a Mutex. You can limit the gas allowance for the transfer
function (similar to the ETH transfer function in Solidity). Uniswap V2 has already patched this issue…. Now in that same thread, a chainlink god asks
David “Is ERC677 vulnerable to reentrancy attacks as well? it's very similar to ERC777,
but came out earlier….David Says “Doesn't appear so. ERC677 only adds new functions, it doesnt
change the behavior of existing ERC20 functions, while ERC777 hooks are triggered on normal
transfer() calls… Soooo, erc677 is what I like to call erc20
2.0…erc777, was hailed by many as the next one, even some big developers…but if failed,
it’s not the next iteration, and because some DEVs, major ones….put their faith into
it, they have “something against…677, even though its better.

Per example…let’s just go to the erc677
EIP, ethereum improvement proposal, submitted all the way back in July 2017, by chainlink
CTO, Steve Elliss…it was the beginning of the transferandcall function…steve putting
forward the idea…well there was a micah zoltou, independent core ethereum developer,
an oldschool one, who was actually part of Augur, and writing their original whitepaper
in 2015…well he was in the 677 EIP thread, and he said this to another person, regarding
token standards in July of 2019 “Have you checked out ERC-777? It is currently in Last Call I believe (or
maybe Final) and includes a mechanism for doing transfer and call. I suspect it will be the next standard token
after ERC-20. Well, as we know, erc777 is not the next erc20…it
has major issues & this has caused developers who supported it, to hate on the others & throw
it away…as we can see, in June of this year, Micah, who was tasked with “cleaning up
EIPs” in 2020, said this to steve “@se3000 Is this EIP still of interest to you, or should
we treat it as abandoned? Of which Steve replies “The EIP has slipped
my mind recently but is not abandoned.

LINK uses it and it is great for minimizing
transactions and/or inter-contract interactions, along with the potential issues those raise(e.g.
re-entrancy). Until another token standard with similar
functionality emerges as dominant, I think 677 compliments ERC-20 well, and I'd advocate
for more widespread adoption too… But those in the know…they are using it,
they are using transfer and call, the functions from 677. Of course chainlink is in the know, steve
said what Chainlink was using it for “Link uses it and it’s great for minimizing transactions
and or inter contract interactions, and is not vulnerable to re-entrancy attacks like
777.

Well, we can look up the transferandcall function,
from bloxy, which will show us, how this functionality is being used…as we can see, the number
of times this was used, has been growing and growing since June of 2019…what happened
in June? The launch of the chainlink mainnet on Ethereum…and
if we look into the smart contracts using it, bulk it’s chainlink’s token, and to
the right is the specific addresses, it’s internal transactions for chainlink price
feed aggregators, like steve said they use it for…”inter-contract transactions to
save on gas by minimizing the # of transactions. Now, I don’t wan’t to credit myself for
this, but I should take credit, I got erc677 talked about again, as we can see from EIP
github, user AMXX says let’s move the discussion of this EIP to the ethereum magicians forum,
AMXX says this there “It seems that the as been a recent regain of interest issue
for #677 (that is NOT an ERC has it doesn’t have the proper documentation) both on the
EIP repo and on youtube, with ChicoCrypto making a video about it.

While I love the underlying idea, I have to
emphasize that there are many ways to achieve the same results. I know at least 2: Chainlink’s (and Dai’s
?) transferAndCall….Dai’s transferandcall? Did AMXX mean xdai or the actual dai? Well it doesn’t really matter because it’s
really all the same, MakerDAO is the creator of DAI, and xdai is a collaboration between
makerdao & POA…and me thinks he meant xdai, but maybe there is functionality of dai…they
are working on that I haven’t heard of…and that would make sense as many people don’t
realize MakerDao is heavily involved with xdai, like on the ground floor announcing
it with POA in October of 2018. Sooo, could this be dai experimenting with
transfer and call functionality?? Well in my personal opinion, I think so…as
I believe 677 and the transferandcall function…is the erc20 of this “run”…it’s going
to change the game & as it already is.

Besides LINK using it like mad for their price
feeds, allowing relayers to pay for and request external data within a single transaction
Xdai is of course using it. And they're using it in multiple ways…of
course for their “bridges” and the transferring of tokens…from xdai documentation on how
to transfer tokens we can see, they have the general erc20 transfer and it says “The
general case describes a "pure" ERC20 token. For tokens compatible with ERC677 and ERC827
token standards the steps may be simplified – see the separate section below” Yes simplified, if using erc677 and erc827…which
if you look at the walkthrough steps for each, you see that yes, it’s seriously simplified,
shorter, less steps, which means not as many transactions…which at the bottom, they have
gone even further…in Simplification for token transfers from the xDai side section
they say “The token contact deployed on the xDai chain is a customized version of
ERC677 standard.

It contains the changes that allow calling
the transfer method to withdraw tokens from the xDai chain instead of transferAndCall. So, it is enough to specify the multi-token
mediator contract address on the xDai chain as the recipient and amount of tokens to initiate
a request to transfer tokens back to Ethereum. Which this “customized version” of erc677
, and multi token mediator address have created something special with xdai, and it’s the
omni bridge, as we can see at the top it says “There is an unofficial OMNIBRIDGE UI now
available which calls the methods of the multi-token mediators contracts described below. So, erc677 and it’s “tech” is revolutionizing
bridges, and transfers across them for good, and xdai is leading the charge for this. It’s intercontract transactions for oracles
and price feeds & Link is leading the way on that….so what else is it going to change
for good? STAKING.

It's going to bring in token staking. So…going to xdai protocol terms in their
documentation, it says this The xDai Stable Chain operates with two bridges: the second
one is An ERC677-to-ERC677 bridge converts STAKE ERC677 tokens on the Ethereum mainnet
to STAKE on the xDai chain and vice versa…below it, it says “Future bridge implementations
will extend the multi-staking capability of the STAKE token, allowing additional sidechains
to use STAKE as a staking token via bridge connections… That’s why they call it stake my friends,
it's a purely designed chain extendable staking token, only possible with erc677.

So, if I’m correct in the short future,
staking will be allowed by other tokens on the xdai sisterchain. And guess what??? Chainlink is doing something similar on mainnet
ethereum, allowing tokens to become “stakeable”…from a late september tweet from chainlink, DeFi
platform has integrated Chainlink’s Price Reference Data feeds live on mainnet to calculate
its staking rewards. This ensures that all rewards issued to StrongBlock
users are accurately & transparently distributed..same goes with AdeX, chainlink price feeds are
powering their elastic issuance staking model. And the 677 standard, is what will allow Chainlinks,
own staking to happen, when that eventually goes live….it’s getting closer by the
day too, going to Chainlink’s pivotal tracker their is something in their current iteration…of
October 12 to 18th, not officially accepted yet, green but it is there, scrolling down,
the multicoordinator contract…this is piece of what allows staking, but how far are they
on it? Well going to epic’s we can see, that opens
the big pieces of chainlink, and as we can see multiword response, aka staking is about
65 percent done, 65 percent green, and clicking in we can see the multicoordinator is apart
of this the prioritized piece, then hovering over the multiword epic, we can see the prioritized
piece is only 1 story, the multicoordinator, worth 5 points, which would push completion
to what looks like about 85 percent.

So, 677, it is the kicker for the next, maybe
because of politics, it doesn’t become a standard, but transferandcall, it’s here
to stay as just like ethereum staking is going to change the game, 677 based token staking
will to. Cheers I’ll see you next time!.

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