 Welcome to Jalassette News. Take a look at top stories and cryptocurrencies in Jalassette's and bring them down to bite-sized pieces today. We've only got two stories and they're pretty interesting. First up, a universal basic income app launches and it gives users free crypto. I'm excited about this one because I've always been a fan of universal basic income. So it's interesting to see that this actually comes alive on the blockchain also. This is going to be a complex story, but it's going to reveal the ridiculousness of the market. So first we've got Aves lend spikes by over 21% after a coin-based custody reveals exploring the AVE token. And to reveal why this is kind of ridiculous, we need to take a hard look at what exactly AVE is. But before we do that, let's take a look at what's going on in the markets. So today it is October 18th at its high noon Texas time and it looks like we've got a little bit of a rebound. So Bitcoin's up by a percent. I'm happy with that almost at 11.5. So back again after that OKX debacle that is going on over there. Ethereum up two and a half percent almost back to 380. So everything looks like it's almost going back. A tether's tether, XRP almost to its rightful place, pegged to the quarter at 24 cents. Bitcoin cash 1.9%, one chain link up 3.6, almost at $11. So just pretty much a nice little rebound and pretty much what I thought was going to happen. So again, when we have these goofy stories where OKX does, you know, something ridiculous and then there's a little dip here and there, nothing changes. Fundamentals don't change. The cryptocurrencies last at market. Nothing really happened. Just one goofy exchange did something stupid. And it's just a great opportunity to just pick up a little flash sale between, you know, 3% to up to 10%. And here we are going right back to where we were before the OKX story. So if you took the advice and bought the dip, congratulations to you. I know I did that myself, but we'll see what happens. Let's see where we got as far as the biggest losers. Crypto.com down 9%, down 21% for the weekend. I've been getting a lot of emails, direct messages on Twitter. Apparently there's something going on with rewards and staking. So I don't really get it into crypto.com as far as like one of the exchanges or wallets I recommend. I just don't. People always send me things like, it's awesome. It's awesome. But I don't know. I just don't get into it. And this is, I think one of those reasons everybody's going to have growing pains every single wallet and every single exchange is going to have issues. There is no perfect thing out there. And when things like this happen with the rewards getting slashed, of course, you're going to see a big tumble. Eos, Monero, everything's up 2.1%. There is a hard fork coming up for Monero, but they're not splitting. It's just a upgrade. So I think people are really into that. They think it might be something else, but they're not going to split. It's just an upgrade for the protocol. And let's see. Cosmos up 5.5. OKB, 9.7%. That's weird. It's considering that they are the official token of OKX, but yeah, sure. 2.8 for Huobi, 8.4 for VeChain. Fantastic for your VeChain holders. Hey, 7.5% up for Uniswap. Makes me happy. And then, wow, 25% for UMA. Another DeFi token. Synthetics, 12.8 for Urn. And what else do we have? And this is a weird one. The Ave, which we're going to talk about right now. It's down 3%. Before I actually get into that, let's just go on to the main story and then we'll jump into the Ave issue. So first up, this was pretty interesting. This was sent to me by J to the T. Thanks, J to the T. I really appreciate it. And it talks about universal basic income app, launches, gives users free crypto and really free money if you look at it. Circles is a universal basic income app based on the Ethereum blockchain. If you're not really familiar with universal basic income, it really what it states is that everybody should get a set amount on a matter of their position and matter if they're super rich or super poor, everybody gets a set amount. And we actually have this in the United States in Alaska. They get about $1,600 annually. And all they have to really do is just be residents of Alaska. And really what it comes down to is each resident gets to have a share of the state's oil revenue because oil is heavy in Alaska. And it states most everyone is living in Alaska for a year or more, just got $1,600, no strings attached. The annual giveaway shares the Arctic state's oil revenues with its residents, but Alaska's program now in 38th year is also providing valuable data. It goes on to some of the things, but yeah, we do have universal basic income, which is in one state. So when I see an article here about universal basic income being put on the blockchain, I'm like, tell me, let's see what's going on. Because everybody likes free money, but I don't really think anything's really free. So circles is a basic income on the blockchain launched today. Here is the creator Martin Kopelman and talks about how it took him seven years just to get here, which is pretty impressive. Only took him seven years circles, which is launched on the X dietherium side chain gives each of us users a basic income in the form of a cryptocurrency called circles, value of a circle, which a president is unclear increases as more people use the network. So that sounds a little bit odd right now, but maybe it'll actually work out. Let's see. The protocol issues circles to all of its users each week upon sign up, you'll receive 100 circles, then you'll receive about 14 each week, and the value should inflate by 7% each year. Anyone can create an account, but to verify it, you'll need three incoming trust connections. I'll get to that in a bit. This means that three people most invite you to the platform, the Berlin based company, which launches as Germany experiences a second wave of the coronavirus pandemic. If from Germany, let me know about that because one of our renters is actually from Germany. He talks about how Germany is doing actually pretty well because they're doing contact tracing. So is that true? What they're saying about is that is there a second wave coming about? Let me know in the comment section. So anyway, circles advises that you only verify other users if you know someone in person. How are many users have posted their invitation codes on Twitter so people can verify? Sure. And of course, it took seven years like we just talked about upon launch, its website struggled to handle the activity and its servers crash. So let's take a look at that. Maybe we should sign up for it. So it is join circles.net. The link will be in the description like everything else in this video. So let's see what we got. Nice little slick looking website. And here's how you do it. Looks like four steps. Sign up, get trusted, receive your circles, use your circles. I like that. That seems pretty simple. Let's just see how this all works out, shall we? So we're going to click on get circles. And it's going to take us to circles.garden. And we can log in or sign up. Since I haven't done anything, I'm going to click on sign up unconditional income. Interesting. Circles is designed to be a basic income from the bottom up. When you create a circles account, you are initially issued circles on a regular basis. So that's the whole point of UBI. So next, you can spend circles with people you trust and the people they trust only it looks like. And you can build your own economy. Circles has no central leadership. So it's yours to create. You can invite friends and local businesses to circles to support and create alternative income. So it looks like you are building this yourself. So when we talk about why does the dollar have value? Why does this have value? It's because we give it value. And that looks like that's exactly what circles is all about. So let's find it. Got it. Create your username. I'm going to go with digital asset news. Let's see if anybody's taking it. Oh, look at that. No one's taking it. Amazing. Continue. Enter email. Well, that's pretty simple. And continue. So here's our seed phrase. I'm going to write this down in my stonebook. Did you save your seed phrase? Please enter word two in your seed phrase. Sure. Oh, great. Now you can, your photo is how your friends can search for you in the circles app. Well, and there we are. So sign me up. All right. You're kind of successfully created. Now we need to verify my account. How do you do that? To receive your basic income, three people must trust your profile. So looks like three have to actually know me who are in this whole thing. So share the profile link. Let me click on that. And I think what I will do is put this on Twitter like everybody else. Let me tweet something. So I'm going to say checking out this universal basic income for the blockchain. If you know what this is about, help me get verified. And I'll put the profile right there. And let's tweet that out. All right. So that's it. So let's see how that works out. But it's an interesting concept. Again, I don't know if circles will be worth anything at any point, but universal basic income seems to work in other places. So maybe it'll work in the blockchain. Let me know what you think in the comment section. Let's move on. Next up, Ave. I've been interested in Ave ever since I was an Alex Maskeoli show, and they had the founder Yanni on and he was given a pretty great example of why he created Ave and what it's supposed to do and how safe it could potentially be or actually is. And he's a very reserved and more of a conservative type of person. So I was like, you know what, that sounds pretty realistic. So I was just perusing through my email as I usually do. And I got this email from Glassnode. Glassnode is their data analytics type of firm and they put together or compile a lot of great information. And one thing they talked about was there was a there was a migration from the lend token to Ave. And what's going on here. So there was a very long email, but it was condensed into this little post right here. And the reason why I need to go over this first is because we're going to take a look at the ridiculousness of this market or what I think is ridiculous. When we talk about Ave's lend token spikes by over 21% after Coinbase Custody reveals exploring the Ave token. So to figure this out, we got to figure out exactly what Ave token actually is. So Ave, one of Ethereum's most popular lending platforms is currently migrating from their lend token to the Ave token. It's a new staking model promises favorable rewards for relatively safe investments. So what exactly is going on here? First of all, what's Ave? Ave is a lending platform. It's on Ethereum. It's open source non-custodial protocol enable the creation of money markets and users can earn interest on deposits and borrow assets. And it's the same type of thing we see on different platforms such as things like Celsius, which I love the death, and then BlockFi and things like that. But Ave enables users to lend and borrow a range of Ethereum based crypto assets borrowers can choose from either stable or variable interest rates. And again, they're very conservative. And the reason why is because they're a lot more safer than some of those things out there. I mean, when you're seeing like, when we had yield farming and you get like 20, 30, 40%, it's something crazy out there like that. I don't know if it was that high, but it's pretty high. That's just seems unrealistic and unsustainable. And here I can see these rates. I'm like, okay, great. First of all, they're better than the bank. They're better than the bank. I'll take that. And especially if you have them on a wallet and you're just doing nothing with it, why don't you put it somewhere where it actually accrues some interest? So why not? Anyhow, moving down, this was interesting. Ave also offers uncollateralized flash loans. So so loans that are collateralized, you know, you want to borrow $100,000 like, great, we'll give us $150,000 worth of Ethereum. And that's how that works. But they also have these flash loans, which are uncollateralized rate switching and unique collateral types such as LP tokens, as well as insurance via Nexus Mutual. And I was like, well, how the heck does that work? So I went to their website, ave.com forward slash flash loans, and it just pretty much lays it out. What's the flash loans? Well, no collateral is needed, provided that the liquidity is returned to the pool within one transaction block. If this does not happen, the whole transaction is reversed to effectively undo the actions executed until that point. And there's documentation to take a look. So again, I'm looking at this, I'm like, I'm not totally familiar with what's going on here. What I need to do is ask Yanni to come on the, on the show and just kind of break it down for me because I get a little confused. It makes sense in principle, but, but the whole thing of like, well, why would I do that? Anyhow, so this is the big thing, token migration, lend to Ave. So the protocols they have token lend was launched in November 2017. So, you know, three years ago or so, token was initially designed to provide holders with discounted fees with plans for eventual staking and governance functionality. However, if the recent approval of the first ever Ave improvement proposal, that's what's great about this, you know, we have the power to go in there and vote on the things that we want to do if you're a holder and just say, you know what, we want to go from lend to Ave. And that's how we want to do it. The protocol is deprecating or phasing out the lend token and encouraging holders to migrate to the new Ave token. The migration is being executed at a 100 to 1 ratio, meaning that it takes 100 lend to be exchanged for just one Ave. And that's what they want to use one Ave. The total supply of Ave will be 16 million with 13 million being minted for the migration and additional 3 million being allocated to the Ave ecosystem reserve. Remember that one part again, the total supply of Ave will be 16 million. When I see a low cap like that, I get a little excited because I'm like, you know what, this isn't 100 billion. This isn't 300 billion. This is 16 million. And when you have that few of tokens and you have that token and, you know, the top 50 or so, what could happen the next bull run? I don't know. Anybody's guess. Yeah, moving down. The migration went live on two October at present less than two weeks. Over 70% of lend tokens have been voluntary migrated to Ave. As the migration takes place, number of addresses holding Ave is increasing rapidly. However, it currently sits at around 2,200. So this right here where it has the actual blue line, this is Ave. And of course, this is lend. And right here when we went live on two October, just take a big dump. Not a big dump. But I mean, the addresses went down because people swapped more for Ave makes total sense. Anyhow, the Ave token is the new governance token of the Ave protocol. Let me read that again. The Ave token is the new governance token of the Ave protocol. Migrating from lend to Ave allows users to participate in protocol governance and stake their Ave tokens. So moving down, potential returns Ave staking rewards currently around 1.73 million Ave are staked in the contract as such user staking 22, roughly 22 Ave, about $1,000 worth would receive 0.0051 Ave per day, a daily return of 0.023. So not too bad. If you compound that, if we assume that the price stays constant and staking pool grows, only by newly added $400 Ave per day, the result is an annual yield of about 8.5% or $84 per around $1,000 investment. So again, way better than the actual banks will ever give you. Well, this may seem small in comparison to the liquidity mining projects popping up in the DeFi space. 8.4% is a healthy way to return for a relatively safe DeFi investment. That's the big thing, safe. So how much risk do you want to put in? I mean, if you really want to do a lot of risk, there's a ton of risky projects out there, go right ahead. You know, have a great time. But for me, I'm just about chugging along just about putting a little bit in, getting a little bit out, a little bit in, a little bit out. And then over time, that's the whole beauty of compounding interest. So yes, there are massive gains being made. But I'd like to sit on the sidelines a little bit and just be a little bit safer. To finish up, it states it's likely that more users will stake their Aave over time. And as such, the actual API may be lower than this figure. On the other hand, if the token prices increase, annual yield could actually end up being higher, I think much higher than 8.4%. And then it talks about how to stake Aave. And before I talk about how to stake it, I just want to make mention one thing. There is a 10 day cooldown period when you're staking. It prevents sudden unstaking in the event of a shortfall or significant price mute movement. And that's the whole thing of staking your tokens. Because you're saying, hey, I have confidence in this project. I'm going to stake my Aave tokens. And you can use them up to, I think it's up to 30% of the tokens you actually put in. You know what, come to think of it, Stani actually answered that in the interview that we had on Alex Maskeoli's show. So let me just jump over there and show you exactly what he said about governance tokens and printing and how it all works. Let's go back to what you originally said. And you had talked about the governance token being Aave. And it seems to me, and then you said like, if there's some type of event of a windfall event where you have to cover some type of losses, then it's the governance token gets hit and it could be slashed by up to 30%. So it sounds to me like it's kind of like community insurance, where everybody puts their money in and something bad comes happen. Like, hey, everybody, you get hit for one third. I think that's kind of how it is. Okay. That makes sense. The next part you talked about, what you said, if it goes beyond that, let's say it's a Black Swan event and something just falls to the ground. Now you have to do some type of printing. So how much and what is the max amount of Aave that you could actually print in those situations? Or is it unlimited, like the Fed? No, not like the Fed. So basically, speaking, there's no cap on how much you can print, but it's more about the governance, how they decide. So what could be the maximum that you could do? And I think situations where you can print unlimitedly will not be, in any case, sustainable. And also, the governance can also update the smart contracts in a way that, let's say, they want to put a cap at some point. And currently, there isn't this kind of like an ongoing inflation, which for example, Ethereum has and Bitcoin used to have, which is interesting model in some cases. But I think the coolest part about the Aave system and the smart contracts and everything, and being a governance token, is that it's all up to the governance. They can decide whatever they want. They can come together and they don't need to listen to the team. They can build their own things. They can create a, they control the Aave treasury. They can give grants, get more developers to build things. And it's kind of like if you look at Bitcoin and Ethereum, how many people are contributing into the software? And we want to achieve the same that there's like, I could imagine in the future there might be even a couple of hundred developers who have left their footprint into the Aave protocol. And that is like what we are trying to achieve that anyone can contribute. And token holders can decide whatever they want to do without actually team involvement. And I think when you look at decentralization, I think a project is decent when a community can make a decision that might not be favorable for the founding team, but it passes. Then it shows the strength of the community actually in that sense. So it's interesting to see how governance tokens will play out. So to stake, it's pretty simple. You just go to app.ave.com. I want to put that in the description below and you just go to staking right here. And you see how my ether wallet is already connected to the website. It doesn't automatically, especially if you have rave, it's super simple. And then you just put, you know, how much you want to stake. And then here, of course, is the cool down. And that's pretty much it for that. And that's, so that's the first part of it. Now we're going to talk about a little bit of the craziness of the market, which is I, Aave's lens spikes by over 24% of the Coinbase custody reveals exploring Aave tokens. So what is happening? And it talks about with a total value locked of one over one billion, Aave is currently the fourth largest DeFi protocol, which is pretty amazing because it's so safe or safer than most I would say. Aave recently secured 25 million from investors blockchain capital, standard crypto and blockchain.com ventures. And even with all this great news, it failed to raise the price action of the popular DeFi token. So that's just it. Like you have this like positive fundamental news, we've got a, you know, an influx of money. So, you know, we should be doing pretty better. We'll see how that works in the price. Nothing. But you know what does move it? Coinbase. So the latest spike materialized just a day after the news of Coinbase custody's announcement of token listing came out on the 17th of October, which was yesterday. Yeah, yesterday. Coinbase custody, which happens to be one of the world's leading crypto custodians for sure, announced its plans to support more assets and launch new features over the next coming months. Aave's was one of the 39 tokens that the platform was exploring, not that they're going to do it. They just said they're going to explore it. So what does that mean? We're going to explore this token. Okay, price goes up 21%. I mean, all the other stuff, I mean, you know, all the different work that they put in, how stable it is, and you know, how there's an influx of money and backers and that don't care. Oh, but Coinbase. Oh, well, that's huge 21%. It's ridiculous. It's ridiculous. And then finishing up, it states it's important to note that lend is being migrated to Aave at the rate of 100 lend per one. So what's the point? The swap again on 12th of October. I think it's second of October. Hence the protocol is set to get rid of the very lend used to launch Aave into existence and convert of all land tokens at Aave at a rate of 100 to 1. So again, what's the point? It's just one of those things that I think in this market, because we were so new, we were so young, we're so minimized in the actual market cap, news really does play a huge part. And when we have a lot of news or positive or negative, it's ways the market massively. And one of those is token listings. I mean, even Coinbase, as much as I think it's becoming irrelevant, it's not because people still look at that and go, oh, they're looking into it, or it's going to be listed. And then boom, off you go. So this is the last thing I'll say about this. If you want to be ahead of the loop of all this different news that is coming out, so you can be like one of those people that learns about these listings or some kind of either positive or negative type of news event before most people do, then I did a video over at Dan Clips. It was Josh Frank, he's a CEO of the Thai and Alex Masquioi for Bequan Institutional Investments. And it's this guy right here. And what we talk about is just the data that you can use to actually get ahead in the whole game and get notified before most anybody does know it. So I'm going to have that pop up right now in the top right hand corner. So go ahead and check that out if you want to. And that's it for today. So I got to say thanks for sticking with me throughout the whole thing. I really appreciate it. If you like those types of videos, there's going to be two more that's going to pop up on your left and right. And I'm going to try to make one of them, the Dan Clips one as well. And that's it for today. Also, if you got time, usually I do a Theta livestream. And tomorrow I'm going to do a exclusive over on Theta. So check that out. The description of my Theta channel is in the description of this video. You can just check it out. It's underneath where it says Follow Dan. And that is all. So enjoy your Sunday. Appreciate you stopping by. And I'll see you on the next one.