All right, welcome back to the Venetian in Las Vegas. You're watching theCUBE's live coverage of VMware Explorer 2023. I'm Dave Vellante with my co-host, Rob Stretchy. Brian Thompson is here as the vice president of GreenLake Cloud Product Management. Brian, good to see you again. We just feel like we were just here last week. Yeah, a few weeks ago. A whirlwind, yeah. And I was just saying that I think HPE, so far, the only company that has announced LLMs as a service. So it's kind of forward thinking. I've asked a number of companies, when are we going to have it there? Like, let's get through the summer first, you know, figuring out, so that's pretty good move, brave move by you guys. I think forward looking, you have some advantages there, obviously, with your HPC chops. And it was good to see you again. Yeah, good to see you guys. So what's been the uptake, the momentum post discover? We had all the announcements. I know you're working hard to hit all those promised deadlines. Yeah. But what's been the customer reaction? And you haven't taken the summer off, have you? Yeah, no, definitely not. I think discover was just kind of the beginning, right of the never ending growth in velocity that we're seeing spin largely in GreenLake. You know, a lot of the messaging that kind of came out, releasing new offerings, AI and the LLMs support, and things that were providing there were of course a key part of this. But even things were here this week, here at the VMware Explorer as well, things like our HP GreenLake for VMware VCF as a new solution. And we're starting to build more and more momentum there. Just overall adoption of GreenLake has continued to really take off. Yeah, so you announced VCF support at Discover, right? And then, so the big announcement here is private AI and it starts to come into focus where we built our power law, right? We have a few very large models. I think the vertical axis was size of model. The horizontal axis was model specificity.  Your customer's going to take that and apply it in a lot of different places. And that model seems to be playing out, but what do you make of all that sort of AI discussion specifically as it relates to how customers are thinking about whether it's private infrastructure or public infrastructure, it seems to be split. Is that what you're hearing? Yeah, it's almost like workload placement, right? Just choosing those workloads and where they're going to leverage the right solutions. We've seen this even above the LLM work that we're doing, the new, from a hardware perspective, right? New, ProLiant, or Gen11 servers with different NVIDIA GPU support, and some of those joint solutions are kind of key for private solutions delivering that, right? Whether it's kind of a generative AI workloads for video creation, content creation, video analytics type services, or even some like natural language support and speech recognition, some of those different solutions. We've seen those optimized surface areas now in the hardware perspective, and now we look at the announcements here this week with the private AI as a logical progression building on VCF as that foundation. Yeah, I mean, VMware, I don't know if it's public, but they gave some data points in the analyst because I won't give the exact data points, but they have a big cloud business and it's growing fast.  So we've, we're not repatriates, I've said, okay, but there's very clearly a trend we're reaching some kind of balance or an equilibrium, VMware calls it cloud smart, you guys obviously have been in hybrid cloud forever. Antonio loves to brag on the fact that he was first to come up with that trend, but he was right. And then it's coming true, that balance, and it seems to be reaching sort of a stable state. Why did you agree with that? Why do you see that happening in the marketplace? Yeah, I 100%, I think we see that too. It's kind of like the predictions of 10 years ago, everyone will be in public cloud.  That's not true either. It's really, how do I find the optimal surface area to run depending on workload, right? There are a number of use cases and scenarios where businesses are finding running in on-prem is more cost effective. You of course have the security, geo-compliance, any of those concerns at times, but really it comes down to, what's my total cost to deliver this? What's the agility I'm achieving? So we see that balance and that true hybrid cloud experience of workload placement and leveraging the right tool for the right job. Yeah, so how do you see the ecosystem expanding?  In fact, one of the most successful OEMs, even outside of Dell, owning them from that. How do you see the relationship in the ecosystem? And specifically, I mean, you guys announced VCF and a couple others as well, other solutions around the VMware family. It would seem that you guys are really working together and has that accelerated since the extraction from Dell and they've gone out of there? Yeah, I mean, HPE's been a partner of VMware for 22 years. If you think about the history of joint innovation up to and including during that time, they were owned by Dell. It's just it's a core platform technology that's consumed by a broad swath of customers. We have rich heritage and expertise, optimizing architectures, hardware solutions to deliver that service. If we look at the evolution and adoption of GreenLake where we augment this, right? So it's not just about kind of a reference architecture and best practices to deploy, but how do I deliver a service experience and software lifecycle management and augmenting services that really deliver that solution? That's been core. And I think of that joint innovation and working closely together as product and engineering teams, focusing on customer outcomes has been a big part of this too. So it's, I think it's been a strong relationship and we see that just continue to grow. And in part of what you're bringing to this with GreenLake is kind of a cloud operating model, right? So that's actually one of the biggest pivots too, right? We get that question all the time is, what is GreenLake? It's really that IT as a service consumption model. How do I deliver these solutions in a consumption experience, right? So rate card driven unit of measure, but I'm able to get that agility of almost public cloud hyperscaler type of experience where I have that elasticity on demand. I'm not locked into the step function of pre-provisioning or the cost associated with that, investing ahead of consumption. So it really has worked well and it's been game changing for a lot of organizations consuming these technologies in more of that as a service motion. What are you finding customers preference today? I thought when you guys announced GreenLake, I'm like, fantastic. It was one of my about time moments kind of like V-SAN, you know, disaggregating, but it's hard to come up with that cloud operating model and make it substantially identical. But what are you finding? I assumed it was going to be give me managed services, but it seems like some customers want to still get their hands dirty. What are you seeing in terms of that next? No, it seems very true. That's why GreenLake isn't just one thing. It's really a portfolio of services because we see that same spectrum. There are customers that are looking for that fully managed, give me the interfaces and enable my end users all the way through. I actually still want to operate it, but I want to leverage certain levels of best practices or certainly that consumption model. So even like the VCF Cloud Foundry solution or Cloud Foundation solution, I'm going back to pivotal days. This is kind of that common piece too, right? Where we think about those layers of services and that demarcation of responsibility where we take on the burden of software lifecycle management, monitoring of the underlying infrastructure, but the customer retains full control over that management domain, certainly into the data plane and their workloads. It's kind of that right mix that we see a lot of ask for and demand. We take on that complexity of the underlying piece, but give them still full control and they retain that management configuration support. Beyond is sort of some of the Dell ownership stuff that Rob was talking about. How has GreenLake affected the way in which you think about ecosystems? Because GreenLake is essentially a cloud. The hallmark of a cloud is a robust ecosystem. It's not just infrastructure partners or technology suppliers. You're a cloud provider now in a sense. So how has it changed the way you think about evolving the ecosystem? I think it still comes down to a lot of what are the consumable solutions available via the platform? But I think it also pivots in that cloud operating model to things that are more evergreen in nature. It's not about this version, this instance, this point in time. It's a set of capabilities. It's a platform that continues to evolve, expand, mature, and add capabilities, which is a different model. It's a different way that we've approached a lot of the solutions that we've enabled via GreenLake to be more of that evergreen cloud type of service. So when you say evergreen, you mean an infrastructure layer that is something that somebody can tap for new apps or you're talking about sort of new customers? Yeah, I think this way is historically, and you might have a solution where I provide you a generation of hardware with a version of software and you're off and running. And 18 months into that, you want to upgrade or there's a new piece that kind of comes into that. That's still a step function that goes with it. A lot of where we're pivoting a lot of these cloud solutions and services moves into I'm consuming a service from HPE. Today it's delivered on this version of hardware and this version of software, but at the end of the day, I start to become abstracted from that. And it's just constantly maintained and updated and growing. I'm getting new capacity when I need it and new capabilities as they roll out. And I've bought into that ecosystem, not a bespoke kind of point-in-time solution. How do you see GreenLake in the context of, obviously VMware is talking about a lot about multi-cloud across cloud services. You might know kind of a super cloud cheerleader, but super cloud is an architectural concept. It's not a product that you buy. And I often wonder, because people don't wake up in the morning and say, oh, I need a super cloud. No, that's not what it's about. But how much pain do you see in the multi-cloud world? First question. Second part of the question is, very strong hybrid story. How much of an opportunity do you see when you talk to customers of that cross-cloud simplicity story? I think that's key to all of the kind of hybrid cloud constructs is because every organization inherently wants that capability. Let me deploy the workloads where it needs to make sense. But now I have the complexity of different tool chain, different management consoles. I have inconsistent ways in which I deliver and operate those. I don't have the same kind of cloud FinOps model on how do I understand this space? So I think more and more as we think about a GreenLake, being that enabler from edge to core to cloud, how do we provide consistency or commonality? Starting with just portability of workloads, interoperability where appropriate, but how do we make it easy for customers to enable that experience, right? Whether it's things like, we announced support for EKS anywhere and that simple connecting my private cloud to AWS at Discover, same things that we've done with things like deploying in Equinex and enabling their fabric to easily connect to my public cloud instances and bring that into private cloud. I think we look more and more for those opportunities to enable that experience for customers because they all face that challenge. So in the context of edge, I mean, I get, like if you have a big box store, like Lowe's or Home Depot, I get that it's kind of a smaller data center model that's a cleaner edge.  How do you think about that opportunity? Is it a skinny down version of your stack? Or something completely different? Yeah. So I think that that's actually the next frontier that we're really tackling now, working with customer challenges, whether it's because the use cases are different, right? Retail is very different than manufacturing or edge branch locations. What are the capabilities I need to extend? What is my tether? Can I be fully disconnected? Do I need to be tied to it? But it starts with kind of very small form factor. How do I provide the density for the compute and storage power that I needed those edge? We've been working to deliver things like zero touch provisioning. If I'm deploying to thousands of locations, I can't have the expensive engineers go to plumb this up, right? So both through our work with VMware, as well as solutions that we've announced and been working on edge capabilities of delivering cloud services to those edge capabilities and leveraging those small form factors. And no truck rolls. Yeah. Yeah. And I think that also, and going back to kind of cloud smart, and there's been a couple of different, we've talked to a couple of people who are using the cloud smart and cloud dash smart, the VMware term, how does what you're doing with GreenLake really apply back to that with VCF and what they're doing? And it's almost right cloud, right time. Yeah. And I think cloud, I don't think of cloud as just the hyperscalers. I mean, again, I think private public is all the same thing at this point. It's just cloud. Yeah. And is that how you guys are seeing that as well and how you're leaning in on it? Yeah, that's absolutely because those core tenants of cloud, not just public cloud, but how am I enabling self-service, elasticity, consumption-based, scale up, scale down. Those same paradigms were applying certainly to core, but now even to edge capabilities, right? So how do I deliver that same experience, the same capabilities, but where I'm now leveraging the density and power of compute that I can provide at the edge in a smaller form factor, right? You think about the density of cores, storage that we can provide in those solutions, even GPU support in those edge locations, doing AI services at the edge, video analysis for shoplifting or, yeah, a lot of this stuff that you can really start to leverage through that power, that's where we're seeing a lot of traction and growth.  What are the sort of big themes for HPE? Coming out of Discover, we kind of build on that, right? Certainly, AI is a key theme for everyone. And we look at it not even just with the large LLM support and things that we announced, but even in those hardware optimized surface areas in different ways in which we can deliver that for private AI consumption. I think the innovation with VMware, as we announced our HP GreenLake 4 VMware Cloud Foundation, this is a logical extension to move in and supporting that as well with those HPC form factors that we deliver today. We think about other things that are really tied, if you think about what HP's really recently announced, again, it feels like we were just here together, around that hybrid experience, right? The work that we've been doing with AWS and where we extend things like our Azure Stack solution, working with other hyperscalers. This is the common solutions that we're looking to solve for for customers, right? Brian Thompson, thanks so much for coming back in theCUBE. Great to see you again. So what feels like so soon. And I think you guys got cool stuff going on in the rest of the year. I presume you're going to be at the VMware Explore Barcelona. You guys got your own thing going on. So big second half. Yeah, looking forward to, we'll see you guys again soon. All right, thank you. All right, keep it right there, Rob Scratchey, Dave Vellante, John Furrier and Lisa Martin are in the house. You're watching theCUBE's coverage of VMware Explore 2023. We're live, we'll move right back.


So I will basically do some mathematical preliminaries in this first lecture okay, there is something called Cauchy-Square's inequality I do not know whether you are aware of it or not Cauchy-Square's inequality suppose you have a1, b1, a2, b2, an, bn and such ordered pairs okay and what it basically says is that summation ai bi i is equal to 1 to n whole square is less than or equal to summation ai square multiplied by summation bi square. Now you look at the slide that means the expression in the slide the value lies between minus 1 and 1 right okay now let me just prove it so this is the statement and then the proof is the following we know that ai x-bi whole square this is greater than or equal to 0 for all x and for all i is equal to 1 to n is it correct ai x-bi whole square is greater than or equal to 0 since this is the square term greater than or equal to 0 for all x and for all i is equal to 1 to n I have n such things here. So naturally summation i is equal to 1 to n ai x-bi whole square it is greater than or equal to 0 for all x right okay that means summation ai square x square-summation ai bi x 2 x x plus summation bi square i is equal to 1 to n this is greater than or equal to 0 for all x am I right now this is in the form of ax square plus bx plus c right this is in the form of ax square plus bx plus c now suppose ax square plus bx plus c is greater than or equal to 0 for all x then what can you say about a b and c what can you say about b square-4 ac term can you say anything no b all the all of them are real numbers so b square-4 ac it has to be real but can you say anything you look at this I am drawing a diagram here ax square plus bx plus c greater than or equal to 0 that means for every x there are two possibilities for every x this is a strictly greater than 0 that means the current may be something like this it never touches x axis am I right that is one possibility and for some axis it may be equal to 0 right that means the current may be for exactly one x it is equal to 0 or can it happen like this can it happen like this for two axis it may be equal to 0 can it happen like this that cannot happen first this ax square plus bx plus c equal to 0 it can have two real roots right and if it has two distinct real roots then what happens is that in between those two real roots the function takes negative values it cannot be like this if you have two real roots that means this is one root and this is one root then it is going to be look like this this will be this will look like this okay in between those two roots you should get negative values so that means either this case has to happen or this case has to happen this case means there is no real root there is no real root means what can you say about b2-4 ac if b2-4 ac is greater than or equal if it is greater than or equal to 0 if it is greater than 0 then you are going to have two distinct real roots so b2-4 ac cannot be greater than 0 are you understanding if it is equal to 0 then you are going to get exactly one root – b by 2a so b2-4 ac has to be less than or equal to 0 are you understanding b2-4 ac it has to be less than or equal to 0 right this implies b2-4 ac should be less than or equal to 0 so b2 means the square the square of this that is 4 times summation a b i whole square – 4 times summation a2 into summation b i2 is less than or equal to 0 right or that means summation a i b i whole square is less than or equal to summation a2 and summation b i2 is this clear now the next question is when is this equal to 0 when is this equal to 0 this is equal to 0 when all these are equal to 0 right all these are equal to 0 means aix-bi should be equal to 0 for all x I mean aix-bi should be equal to 0 okay that means aix-bi is equal to 0 for all I that means what x is equal to bi by ai for all I so that means this has to be a constant x must be same for all I that means bi by ai has to be a constant that is bi by ai is a constant okay so equality will hold when bi by ai is a constant that means what there is a linear relationship between bi's and ai bi is equal to a constant times ai bi is equal to some k times ai for all I that means if you look at this you can look at that expression that is there on the board if ai if bi is equal to some k times ai then what will happen to the the quantity S a b it is equal to 1 I mean correct it is equal to 1 or – 1 can it be equal to – 1 suppose k is a negative quantity then that – will appear in the numerator and but it does not appear in the denominator it is equal to plus 1 or – 1 and bi is equal to k times ai that means what bi is equal to k times ai that means what you have a vector a1 to am a1 to am okay and you are multiplying it by a constant k then you will get the other vector b1 to bm that means what actually they are the same vectors the direction is actually the same the magnitude is different then the angle between them is either 0 or 180 degrees the angle between them is either 0 or 180 degrees then cosine 0 is plus 1 cosine 180 degrees is – 1 and this is the this is linear relationship but what it says is that the linear relationship you are making it go through the origin if it does not go through the origin then you will get a some constant plus some constant L right with since the constant there is no other constant here this goes through the origin right now if you add that constant that is bi is equal to some k times ai plus L bi is equal to k times ai plus L then what will happen to b bar I think I will write here now bi is equal to k times ai plus L then what will happen to b bar this is the mean of b this is actually equal to k times a bar plus L the mean of b bi that is b bar b bar is equal to k times a bar plus L then bi – b bar is equal to k times ai – a bar I am just subtracting this from this and bi – b bar is equal to k times a – a bar this L and L is getting constant they are getting cancelled now you have this form some bi is equal to some constant times ai only thing is that here we are subtracting the mean and we are subtracting the mean here so if there is a linear relationship between bi is and ai is with k and L then the correlation coefficient is plus 1 or – 1 is this clear then the correlation coefficient is plus 1 or – 1 please doubts L divided by something now b bar is equal to k a bar plus L divided by number of examples here second L divided by something when we will take b bar okay we will just see so this step is not clear to you right yes 1 over n summation bi i is equal to 1 to n this is b bar is equal to 1 over n summation i is equal to 1 to n k ai plus L right you got it okay so when there is a linear relationship between the two variables then the correlation coefficient is plus 1 or – 1 but the converse is not true wait when there is a linear relationship between the variables then the correlation coefficient is plus 1 or – 1 suppose the correlation coefficient is plus 1 or – 1 then also you can say that there is a linear relationship but for 0 it is not true when the random variables are independent and the correlation coefficient is 0 but when the correlation coefficient is 0 you cannot say that the random variables are independent I will also tell something that we will be using it in the coming lectures tell a fact okay suppose you have n such real numbers x1 to xn and mean is x bar this is the mean we all know the formula of variance let us just say the formula of variance is equal to 1 by n summation i is equal to 1 to n xi-x bar whole square now variance is supposed to give you what variance is supposed to give you some sort of a scatter of the data how much of variation you have in the data you might be wondering that why in order to measure the variation in the data we are taking the difference between the values and the mean we want to measure the variation in the data set right then why are we taking the difference between the values in the mean how is mean entering into the picture haven't you got this doubt have you understood what I wanted to say why are we taking the distance or the difference from the mean when we want to measure the variation within the data set how is mean coming into the picture okay now let us see suppose let us not take the mean then what we will do we can always do something like this are you understanding what I am trying to write we take all possible such differences and then you take the squares and then we will divide it by some quantity here that is a different thing okay now let us just see what this is going to give us this is equal to what I will do is xi-x bar-x bar-x j whole square okay so now this is equal to summation i is equal to 1 to n summation j is equal to 1 to n what do you have here xi-x bar whole square plus x j-x bar whole square- okay now what is this let us see summation i is equal to 1 to n let us take this summation j is equal to 1 to n inside this is a term which is independent of j so what we are going to get this is n times xi-x bar whole square right now summation j is equal to 1 to n x j-x bar whole square this is n times s square okay now what about this one summation j is equal to 1 to n of this here 2 times xr-x bar it is something independent of j so we can take it out summation j is equal to 1 to n x j-x bar what is the value of that it is equal to 0 are you sure it is equal to 0 summation j is equal to 1 to n x j-x bar is equal to summation j is equal to 1 to n x j- summation j is equal to 1 to n x bar right this is equal to n times x bar- this is n times x bar what is x bar x bar is okay i or j does not matter xi right so that is equal to 0 so this is equal to 0 right now what will happen to this now we will take this summation i is equal to 1 to n inside this will be n times summation i is equal to n 1 to n xi-x bar whole square is equal to n s square plus so this is basically nothing but 2 n square s square so basically you are going to get a quantity which is a function of s square so you need not take this you can be satisfied with this after all this is a constant multiple of this right see even if you look at this 2 n square s square look at xi-x j whole square it occurs two times one as xi-x j whole square another as x j-x i whole square right now so that is occurring two times so in fact totally how many terms are there here n square terms and there is something that is occurring twice so that is why 1 by 2 n square so you need not we need not have to go through or look at this we can actually look at this by looking at this we are actually looking at this by looking at this we are actually looking at this I hope this is clear to you because this is a constant multiple of this will stop here.


So when I'm not wearing my prosthetic leg, there's one thing that's very important to keep in mind. It's fine. How am I standing with my hips aligned? If I don't think about it, because there is nothing on the end of this clearly, naturally I will just sink into my hip. And that's fine for short moments. But if I spend a lot of time standing like this, where instead of my knees and hips being level, it's way down there, my lower back will begin to scream. I actually didn't even notice that this was really a problem until someone pointed out in a photo of me. Whenever I was using crutches or just standing, I was always like this. And I really began to feel the effects of that through my lower back, through my hips. And so now when I'm using crutches or just standing, I try to make a conscious effort to bring that hip back in, keep those hips level, and hopefully avoid back pain.


I'm here to talk about MakerDAO, one of the oldest and most ambitious projects in all of Ethereum that seeks to create a stablecoin. For those of you who don't know, a stablecoin is a cryptocurrency that is stable with respect to fiat currencies, making it a more useful form of digital money. So what is Maker? At its core, Maker is comprised of two tokens. The first is called DAI. This is the stablecoin. It is an asset-backed hard currency. This means that every DAI coin is backed by some kind of valuable asset. And this is because DAI is a permissionless credit system. And all DAI are issued when users lock up their valuable assets in this permissionless credit system and issue DAI against them. The stability of DAI is maintained by a system of dynamic autonomous interest rates that automatically react to emerging market conditions and change the fees and incentives associated with using this permissionless credit system. The second token is called MKR. It is the administrative token of the system, and its holders comprise a decentralized regulatory body who use token governance to decide what type of assets are truly valuable and can be used as collateral to back the DAI stablecoin. In exchange for their services, MKR is used as the fuel for the credit system. And when people repay DAI and reclaim their collateral from the system, they must include some MKR as a fee, which is consumed by the system. So what have we been up to over the last year? In a word, refinement. This last year has been all about removing complexity, adding simplicity, pairing down the code, making it easier to understand. This is not easy stuff. A good day at Maker last year, a good day often involved putting one line of code on trial and scrutinizing it and thinking about it, and at the end of the day, removing it. We have used the Unix design philosophy to great effect in the Maker DAO system. I talked about this a lot yesterday, so I'm going to sum it up simply today, and say the Unix design philosophy encourages programmers to write contracts that do one thing and do it well and to write contracts that work together. What I'm talking about is a modular approach to system design, focusing on one component, making sure it's right, and then composing these into higher order systems. This is not a new idea, this is a decades old idea, and we have leveraged it to great effect in the Maker DAO code. We have also sponsored the creation of a ton of interesting developer tools and repeatable smart contracts. All the stuff I talked about yesterday we pretty much exclusively built in the pursuit of our goals for Maker DAO, and so all of that cool stuff is just one cool way that Maker has contributed to the broader development ecosystem, and it's something that we're very proud to do here in Ethereum. Something else that we're very proud of, achievement we're very proud of is the creation of the purple paper. The purple paper is our Haskell reference implementation of the dye stablecoin system, and it has been invaluable in the design of dye. The reason it has been invaluable are three. The first is comparison. It is well understood in computer science that creating multiple freestanding implementations of a system is a great way to verify your assumptions and see what kind of behaviors translate between one and the other. In fact, the Ethereum community has leveraged this fact to great effect in the diverse client ecosystem that we all enjoy and in the creation of multiple implementations of the CASPER algorithm. Similar sort of thinking there. We did this in Haskell and it was very, very valuable. The second reason is for verification. Haskell has a very advanced type system, especially when compared to Solidity. We can achieve more expressiveness and we can specify the behaviors a lot more rigorously using Haskell than we were able to achieve with Solidity. It has helped us to think more clearly about the design of the dye stablecoin system. The third reason is simulation. When you have, when you design something like this in a separate programming language, you can actually run it. What you're looking at here is code, of course. So the purple paper is actually a model of the dye stablecoin system and we can use it on the command line to simulate the system and test our economic hypotheses. It will help with the administration of maker over the long term. So all of this stuff, this refinement, this high standard of quality, this investment in our tooling, the purple paper, all of it over the last year. It's been culminating. It's been leading up to something, leading up to me standing on the stage right now. It is my great pleasure to announce to you that the first release of dye is coming in December of this year. So long. We've been working towards this for so long. I'm so excited. I'm so excited I might faint. I'm so excited I may explode into 10,000 pieces of confetti on this stage right now. Now I say this is the first dye release because this is the first major step on the road to formal verification and all of the important dye stability features that we need. But make no mistake, this is a major step. The landscape of Ethereum, the landscape of dApps is going to be changed forever when we have consumer-grade stability. Everybody knows that. And we have been working towards this moment for years and we're ready. We finished our audit just two weeks ago. We are currently responding to feedback and we are getting ready to launch this thing. Now I'm going to go into some detail about what is coming in this release. Let's dive in and talk about the credit system mechanics. It would be especially useful if you're not as familiar with the dye stablecoin system. So I spoke before about how users lock up collateral assets and issue dye against them. This is done in what's called a collateralized debt position, a CDP. And users, they create CDPs, issue dye and use it for whatever and then later they repay that dye plus a fee and reclaim their collateral. But as you can see in the diagram, it looks like there's more value in terms of collateral than there is in terms of dye. Why is that? It's because the system enforces it. And the reason that it enforces it is because the value of the asset, the collateral, fluctuates. And it always needs to be backing the dye because dye is an asset backed hard currency. So because the collateral value can fluctuate, the dye system needs to protect itself. Now if the value of the collateral asset fluctuates up, if it appreciates in value, that's fine for a dye. It doesn't matter. But if it fluctuates down and it loses value, dye needs to take steps to protect the integrity of the entire system and what it does is it liquidates the CDP. It reclaims the collateral and it sells it off for dye, to reclaim the dye that it needs to get and make sure that all the books are balanced. You can think about it, you can analogize it to a margin call where the CDP owner made a bet, here they were wrong and they paid the price. So what type of collateral is going to be used in this first release of dye? It's called pooled ETH. And it allows us to back the system with ETH and protect the system in the event of extreme market volatility. In the next release of dye and in future releases, we will use the MKR token to protect the system in the event of extreme market volatility, downward volatility. But in this system, because it's simpler to do so, and because we are still working on that aspect of the system, we use pooled ETH, PETH. So let's go into a little bit how it works.  Let's go into how this mechanism works. At the high level, PETH is very, very simple. You just put your ETH into a contract and you get PETH out. And PETH can be used to reclaim your ETH. So if there's 100 ETH and 100 PETH, and you put any ETH into the system, you will get one PETH, maintaining the ratio between PETH and ETH. But that ratio is not static. It is dynamic.  In exchange for that service, half of the fee from the CDP is used to buy PETH and burn it, destroy it. So if you think about it, if we're buying PETH and destroying it, taking that CDP fee and destroying it, that means that the remaining PETH has greater claim power on the ETH. Here you can see it can claim 1.5 ETH, where before I was saying it claimed one ETH. That ratio is increasing and it's causing PETH to appreciate value. This is what happens when the system is experiencing normal levels of ETH volatility. But what if the dreaded Black Swan event happens? In a Black Swan event, the price of ETH rapidly loses value. Faster than the dye stablecoin system can liquidate positions. And what we wind up with is an insolvent CDP, an underwater CDP. This means that the totality of the collateral that has been issued against this dye is lower than the value of the dye itself. Something needs to be done. We need to collect this dye somehow. And the way that it's done is by minting PETH. So here this red area on the diagram would be minted PETH and it's minted and sold for dye in order to keep the system solvent. So we're accessing the value of the pool of ETH in order to keep the entire system solvent and balance the books. But, as you can imagine, minting PETH means that the claim power is diminished. Here we can see now one PETH claims 0.66 ETH causing the value to depreciate. This is why PETH in times of normal volatility should depreciate and only falls in value in the event of these snap moments of extreme volatility. The next feature is the governance fee. As I said, half of the fee is given to PETH holders. The other half is given to MKR as a payment for their service administering the system and choosing the important security parameters that keep the system safe. This is paid in MKR, as I said. It's denominated in dye. And here we will have the first main use case for this vision that we've all kind of been thinking about when it comes to tokens, this vision of decentralized exchange. Whenever we think about tokens, we often think about the user buying them and not even realizing that they're buying them, buying them behind the scenes automatically without thinking about it, without even knowing about it. We have developed this technology for this use case. So users aren't going to have to think about MKR but they're going to automatically buy it with decentralized exchange like Oasis or Ether Delta or 0x automatically and use it to close their CDPs. This MKR will be burnt, consumed by the system. The last feature is called global settlement. This is how we wind down the system gracefully and it will allow us to upgrade. Like I said, it's going to be graceful. This is an orderly process. The system is globally settled by the MKR holders. A few things happen in order. The first is that dye becomes a claim on ETH on the ETH collateral at a fixed price. So it is as if your dye, which is an actively managed stablecoin suddenly became ETH, just like that, at a fixed price. Next, CDP holders will be able to free their excess Peth. So if I put $100 worth of Peth into a CDP and I issued $80 worth of dye against it and the system was globally settled, I would get my $20 worth of Peth back and whoever I gave that $80 worth of dye to would get the other $80 worth of ETH. Simple, orderly. And then last, the Peth holders can exit to ETH at whatever rate exists for Peth at that time, whatever claim power it has. There are only three conditions upon which the system will be globally settled. The first is in cases of bugs. This is a safety precaution. You can never be too sure until the system has been formally proven. The second is extreme events of market irrationality. We're all used to this in cryptocurrencies. It's something that we are quite certain won't be happening in dye, both of these things, bugs and market irrationality, but it's something that we're prepared to handle nonetheless. By market irrationality, I mean something like an unstoppable amount of demand for dye that threatens its very stability. And then the third case is in cases of upgrade. This is definitely going to happen because as I said, we have another release of dye coming which is going to have more important stability features and this will be an orderly way to go from the old system to the next system. So, what's coming next? A lot of exciting things. We're going to be working a lot on exchange integrations. This means that you're going to get dye trading pairs. Dye is going to be a great base pair to trade against. And we hope to get our CDP system integrated into exchanges so that you get safer borrowing with much lower rates. Margin trading at 1% sounds awesome. The last feature is, of course, the last aspect we're going to be working on is, of course, the importance dye stability features. I mentioned a few here. There's a few more that I can't get into, but we're going to be heads down over the next quarter working really, really hard to get the next release of dye out there which is going to be even better and even closer to ready to the final formally verified product. We are so excited that we've been working for so long on dye and we are so excited to deliver a working DAP to you. This is something that we're really, really proud to put out there. And I think that it's going to, like I said, completely change the landscape of Ethereum, getting consumer grade stability. If you're interested in learning more, please visit makerdye.com. There's a lot of information there. You can join our chat at chat.makerdye.com. Thank you very much.