Money Robots - The Daily Gwei #80
Money Robots - The Daily Gwei #80
These robots will (attempt to) make you money on Ethereum.
Ethereum is a bustling futuristic city full of many different people, machines and contraptions - the busiest and most active are the “money robots”. These little guys roam around the city partaking in all kinds of profit-seeking ventures whether that is automated arbitrage across DeFi protocols or automating yield farming - they have a very important job in making sure that the city keeps humming along.
Automation is nothing new - we experience it all the time when we use all types of different hardware, software, devices and more. Simple machines like wall clocks or watches are a form of automation as all they need is a battery and they’ll keep ticking along until they run out of power (or break down). With modern computing, we’ve built much more complex automation tools that can do anything from calculating values in a spreadsheet to rendering a blockbuster CGI movie. And now with Ethereum, we’ve built money robots that can automate the entire financial system using the new DeFi rails.
Now obviously forms of automation have existed within finance before with internet banking and the traditional “fintech” companies but what we have with Ethereum is different - it’s programmable. We can program any arbitrary representation of value (such as an ERC20 token) to do whatever we want using smart contracts on a global scale. The speed of execution is only limited by Ethereum’s scalability which, even at the worst of times, is still much faster than the traditional banking system. Sending money overseas? That’ll probably take you 3 days no matter if the banks are busy or not. Want to do the same thing with Ethereum? You can do it in 15 seconds (1 Ethereum block) if you pay the right fee (which is still usually very cheap even at high gas prices).
The real power of these money robots unlocks when we combine them to form “super” money robots. Examples of this include all of the crazy things people are doing by stringing together the different DeFi protocols such as flash loans for arbitrage trades or automated yield farming using Sets. With Sets, you can quite literally just deposit some funds into a smart contract and the money robot will do all sorts of fancy financial wizardry for you around the clock - from automated yield farming to trading automatically with popular strategies. The money robot is literally growing and harvesting crops for you at all times - how cool is that?
Money robots will keep evolving and we will keep making them smarter as Ethereum and DeFi continues to expand its reach. There is no stopping it since it’s global and there is an unlimited amount of talent out there just waiting to build new & innovative products. I can’t wait to see what money robots we get next.
Have a great day everyone,
Anthony Sassano
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All information presented above is for educational purposes only and should not be taken as investment advice.