ROLLUP: 1st Week of April (Visa on ETH, SNL NFT Skit, PayPal Crypto, Bankless & Wells Fargo)

Transcript

thankless nation it is the first week of april this is april 1st as well david how are you doing today i'm doing absolutely fantastic trying to sift through the sea of both real and fake news trying to put this uh weekly roll up agenda together april 1st is a harder time in crypto than in any other industry uh and for those that aren't have this is their first april first in crypto congratulations we take this seriously in in in the crypto world uh i remember uh one of uh to this day vitalik released a proposal to hard cap the east supply on april 1st and no one knows if it was an april fool's joke or not like to this day uh so it's a special day in

the world of crypto oh bankless has certainly carried on that tradition more when we wait we did an april stroke maybe i mean no it's up to the listener to decide whether it was an april fool's soup or not anyway guys you're listening to this on a friday morning we hope you are enjoying this with your morning routine with your morning copy coffee we're hitting the market releases news takes and then ending with what we're both excited about um the schedule this comes out every friday morning we release on youtube we also release it on the podcast all right david let's talk about bitcoin king bitcoin how's bitcoin hanging in this week almost above sixty thousand dollars

once again fifty eight thousand nine hundred and forty dollars fluctuating in that very high fifty thousand dollar range um and hopefully we are breaking through all-time highs with bitcoin sometime soon traders are getting bullish the market is getting bullish uh but also bitcoin not being the leader this last week that is an interesting story as well all right well tell me who the leader is actually i'm going to flip to it is ether the leader david i think eth is the leader still also not at all-time highs but closer to previous all-time highs than bitcoin ether coming in hot at 968 1960 a strong show of force from the the low low price of sixteen hundred dollars

that we started uh this week at um for the the entire uh this last week it's been up and to the right uh sentiment really brewing positively for ether eth2k my friend i'm excited to get back out the party hats and celebrate another 2000 milestone we'll see if it hits this maybe it will have hit this by the time you listen to this tomorrow morning david let's move to total locked value in d5 looks like uh i'm zoomed out to the to the 90 day here but um what it's been doing recently it's kind of flat hanging at 44 billion or so yeah and again really kind of just looking like the eth chart especially as ether price is going up and more ether is in defy uh it's it's basically just

an extension of the eth chart as it kind of has been all right let's talk dpi and i hope you tell us whether it's defy season or not or maybe we're in this in-between world what is dpi doing this week yeah dpi 430 dollars at the time of recording i believe it's down versus ether over the week uh and that's always to me the more interesting metric uh dpi versus eth but dpi versus dollars doing a strong show of force uh not as high as its previous all-time high which i believe is around 480 dollars but still uh if you're in d5 tokens you are doing doing pretty okay doing doing pretty okay and someone corrected me actually uh last week i i think i said there were 10 tokens in d5

i believe there's now 12 to v5 of course in the dpi rather new tokens get added to the dpi all of the time they have a methodology they have the criteria for doing that you can read all about it uh somewhere else maybe we'll put it in the show notes but um the d5 pulse index is always changing but what it tries to do is serve as a benchmark in indices for the top defy tokens and that's certainly what it has been this year uh okay this is my favorite character yeah you want to zoom out zoom out to that three-month time horizon ryan you want me to zoom out to three months okay here we go yeah still down versus ether right so in the cycle of bitcoin to ether to dfi tokens i think perhaps we are still in that ether

it's still east time um d5 season is still on pause waiting for ether to actually maybe take the reins question mark um it's been down versus ether since all of march dpi has been down verse 8 for uh against ether all of march that's pretty crazy interesting so we're maybe in this in in-between season we're not quite sure what season we're in we're just about to transition rather maybe to bitcoin maybe to eath maybe to to dpi we'll see david already knows what's chris berninski saying these days look i'm looking at a chart but let me read the tweet first our friend chris berninski is saying with bitcoin at 60k and each bitcoin that's the ratio looking like it wants to push towards the 200 week moving average again that places around

2500 chris is bullish he's doing some technical analysis you know i think of chris as a fundamentals investor but he also dabbles in the technical analysis here in the trading uh what's he telling us yeah chart chris is the best chris in my opinion we all want chart chris and and uh he only gives it to us a very little bit but yeah what he's saying is that uh the eth btc ratio is what from what he's saying there seems to be a band that is is uh marching up a channel that is going up and to the right and we are on the low end of that channel perhaps going to the high end of that channel and that high end of that channel is the low end of that channel is roughly 0.3 ether per bitcoin uh and that then he thinks that perhaps we're going to that

high end of the channel where there is uh 0.42 ether per bitcoin uh and again that that puts ether at a dollar price of 2 500 which seems totally reasonable just 500 that'll get above previous all-time highs seems about right yeah i'm not sure so i i like chart chris too but i also like price prediction chris and chris has always been calling for it like higher highest this cycle a lot higher highs right so like 10k eath is not out of the question uh certainly for chris he's been he's been bullish the whole way um all right who's this lemonade alpha this is somebody from uh the index co-op which actually manages the dpi and other associated tokens but this is

index co-op daily revenue and what's cool about this is index call up is a dow that manages these indices these these sets that are put out of tokens that you can buy like dpis one such token and the revenue growth has been pretty crazy here um this is daily revenue growth and if these assets just continue you can see that like the potential for this to keep going up and up and up what's your take here yeah i i think there's so much dormant potential in the index co-op i think they have a really streamlined process um bankless has been talking to them about an index question mark what's going on there uh the interesting story here is the ether2x

fli token which is brand new the fli i believe stands for flexible long index yeah and so it's a single token that has a dollar price associated to it and that dollar price goes up or down twice as fast as ether does it's a single token that leverages a 2x to long position on ether the asset it's got some crazy defy magic behind the scene so it's got a depth position in it as well and and so when you buy into it you are in uh buying into a debt position that is leveraged long ether uh and this has really been part of the conversation in crypto twitter and d5 trading twitter um and there i believe there is over 10 million dollars allocated into the 2x eth fli token

and that's been growing up growing very fast and so it's already become a very substantial part of index revenue and i think this is just going to be the first of many leveraged index tokens um btc next other defy tokens next why not let's just get this fli you know model out for everything leverage everything yeah leverage everything leverage everything yeah why why have 1x the pain when you can have 2x to pay and 2x the gain of course i'm sold david sign me up fli sounds great let's product market fit it is especially for this market guys be careful when you're trading leveraged products of course i hope that goes without saying here is not fli this is

fil filecoin completely bitcoin completely different what is this is a fully diluted valuation i'm looking at of 383 billion billion billion yes yeah so here's a list this is bigger than this is bigger than eth right now this is uh i think i think it's tied pretty closely to eth which is absolutely crazy it's um i i know i think you're actually right yeah no you are right because it is higher than uh wells far or not wells fargo uh walmart it is the the file why did you say wells fargo david well we're going to get to that fl fil which is the file coin decentralized storage um uh protocol it has a higher market cap than walmart and

this is a lesson in the difference between market cap and fully diluted market cap there's not very many trading tokens out there uh and yet because people keep on buying them for some reason the if if you take in the market cap of all the non-circulating tokens you come up to almost 400 billion dollars making it i think like the world's 17th most valuable asset there's no way that this is worth that much this is just doesn't make sense it's a byproduct of bull market froth it doesn't make sense yet people are buying into it uh i would proceed with caution is what i have to say with this yeah you know like fully uh fully diluted valuation is is an interesting metric because it can also depend on

what the future issuance rate is of of the asset right so you have to factor that into um but but in any case the interesting thing about many protocols is that um the the issuance can be sort of chained changed um you know nba top shots i um i threw a a tweet about this but it's fully diluted market cap with something like 50 billion um yeah a couple weeks ago i'm not sure what it is now and i know that's some news but like make sure you're checking the fully diluted valuation these tokens in total supply and ask yourself carefully if this is a good buy based on who has the current supply and what the future issuance is 383

billion dollars with the b does not seem like a good valuation to enter in for almost any asset right in crypto um besides maybe eth uh bitcoin those sorts of sorts of things that have proven themselves all right um david we're gonna get to the news in just a minute but before we do we want to tell folks about the sponsors that made this rollups episode possible gemini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini since i first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells gemini is available in all 50 states and in over 50 countries worldwide and on gemini there are markets for over 30 various

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swap that's it what makes swap so useful is what happens behind the scenes it compares dexes aggregators and market makers to find you the best price with the lowest network fees and the least slippage this means you can swap a wider range of tokens and swaps can even automatically split up your trade to give you access to better liquidity you don't even have to think about it try it out download metamask for desktop or mobile now at metamask.io and start swapping all right david let's get to the news the first one this is hot zk evm in may this is zk sync okay so just some

context here right we've talked a lot about the difference between ethereum side chains which are not secured by ethereum beneath the token and ethereum layer 2 which is secured anything layer 2 is secured by the ethereum network and ethertoken we've talked about the different rollups that are layer two so optimistic roll-ups is one arbitrary is another there are other roll-up solutions and then we've also talked about zk roll-ups uh if you want more info on these things go check out a podcast we did previously rub metallic i think he explains the difference very well but the promised land for all of this even according to vitalik the long-term goal is to have an evm so that provides the expressiveness of the ethereum main net

inside of a zk roll up that's kind of the promised land for scalability and here's zk sink talking about presenting an update on that potentially a zk evm in may what's this about david yeah the this uh this gets into cryptographic magic which is a little bit beyond me but they are cr implementing a mainnet version of zk sync which has much more full feature which is much more full feature than i think we initially expected to be coming this year which is kind of crazy included in this is nfts are available on zk zk sync which is not something that i thought was anywhere close because nfts are harder with zk roll ups but the fact that this is getting

announced sometime soon is pretty crazy uh the the the through line here is there's always going to be some sort of tug in a tug of war between something like optimistic roll-ups and something like zk roll ups uh and each one is going to provide its own benefits and merits at some sort of timeline it seems like this timeline is maybe getting moved up yeah it's awesome because all of these layer two solutions are competing they're rushing to get out the door and to develop and build on top of it so the public test net for zk sync is in may 2021 maynet august 2021 i haven't looked into all the details not sure how full-featured it's going to be but it is exciting nonetheless the prospect of a zk roll up with an evm inside of it let's just talk about ethereum's layer

two diversify put out this fire tweet which just puts a bunch of logos on the screen and categorizes these logos infrastructure you know uh wallet swap everybody in the ethereum ecosystem that is working on layer two specifically david if i'm a competitor and i'm looking at this slide right maybe that gets to our meme of the week hint we'll talk about that later if i'm looking at this slide right i mean this just looks like i'm not just competing with ethereum i i'm competing with like the entire ethereum ecosystem right that's pretty hard those network effects are are pretty entrenched what are you getting from this uh image here yeah the cool thing is is

that they actually have uh granted they have multiple logos in different spots right so loopering you see that in infrastructure you also see in wallets you also see it in exchange uh you also see in payments it's actually kind of one of the cool things about loopering is it does all of these things and so we're kind of double counting here um but it's also one of the powers of composability and uh in just expressiveness in l2s why expressiveness in zk sync is is so powerful uh one uh l2 can do multiple things the the network effect and we ethereum people have been chanting this for years now the network effects on ethereum is almost too late and like i can't say that it is too late because i don't know the future but like you said like

imagine having to reconstruct all of this stuff which is being built out in so many different directions by different teams it's it's it's it's you can't keep up can't keep up david you know what i think it's a good heuristic it's kind of the 10x rule right which is like in order to get an ecosystem or you know people to switch something the technology has to be a 10x improvement you know bitcoin's 10x improvement over any sort of story value in the real world gold ethereum i i would argue is a 10x improvement on bitcoin right with with its expressivity its programmability with this defy ecosystem with proof of stake with all of these things 10x i'm struggling to see the next 10x improvement on ethereum in the in the current crop right so i do think if

there is a successor to ethereum it'll probably look a lot different than ethereum like we might not even see it coming or we might not even call it an eth killer that's sort of a rule of thumb i've thought but of course it doesn't seem like that in the bull run i think the 10x the way that we 10x ethereum is on ethereum not replacing ethereum it's something like the app layer right if we want to improve of what may make ethereum 10x better it's going to come out of the app layer and that's kind of the whole point yeah absolutely um all right paypal paypal launching crypto checkout service uh that means all paypal customers 29 million merchants as well will be able to receive funds in crypto so basically what this is i understand

you have eth you have um bitcoin you have even like litecoin things like that um you can you know just use those currencies in your paypal wallet and check out any paypal merchant 30 million of them almost um how big is this oh this this is huge this just makes the usability of these crypto assets as money uh far better like we can finally like check out with crypto is this is now the thing like we can now check out with crypto with the paypal integration uh and so being bankless but also purchasing something on your on you know while you're just shopping uh is now done uh done on paypal right so like you can hold all your crypto money and then you can go buy your thing and you can pay with your crypto money it's absolutely

fantastic interestingly they still have the there's still some improvement that needs to be done i think in the marketing because if you look at the uh picture that they use they have the xy they have the xrp icon in there along with bitcoin and litecoin for some reason people still think that we want to pay in litecoin when we don't we would like to instead pay with usdc and die um i do believe that they have usdc but i don't believe that they have die um yeah but not not going to knock them um nice job paypal keep it going how about some erc 20 tokens let's get those more of those integrated like this is the d5 mullet thesis right which is which is the um the uh fintech in front and d5 in the back and that that's exactly what what um paypal is building

they're building on crypto rails erc20s are coming that's next stable coins virtually guaranteed after this move um david let's talk about this we're actually you know i said this whole section was uh news it's releases isn't it we're talking about all the releases that that happened uh introducing element david what is element element phi got some big investors behind it is this a cool new d5 primitive d5 thing what is it yeah yeah new d5 money lego and so i i tried to figure out how this totally works and i didn't really get too far so i'm just going to read out the section that i think is important the element protocol at its core works by splitting the base asset positions and so think of a collateralized lending application like compound or ave

splitting the base asset positions each btc uscc into two distinct separate tokens the principal token the deposit the collateral and the yield token the upcoming interest and so there's now two tokens as a result of your deposits and so this splitting mechanism allows users to sell their principal as a fixed rate income position further leveraging or increasing exposure to the interest without any liquidation risk the competitive activity along with custom curve built a custom curve built on balancer v2 is what drives the high fixed yield markets bringing liquidity to fixed income yield while minimizing slippage and fees as the discount decreases ultimately of opening the door to a number of new d5 primitives so more

surface area is my takeaway there's now instead of just like depositing collateral into ave and then that being a position now we are more granularly able to talk are we talking about the principle of that position or the yield of that position and which one of those do we want to build off of now we have tokens to build off of each so that's pretty cool yeah fix fixed rate income markets like we have a very a lot of variable interest rates so if you deposit in ave right like you know your interest could be five percent one day could be ten percent the next could be two percent the next right um getting to fixed income rate um assets is is important it's all part of the the the um movement that we're seeing in d5 which is speed running traditional finance um so that's what's happening next speaking

of which optimistic ethereum layer two synthetics on layer two they've now integrated staking what i think is cool about this is if you look at sort of metamask look at this david oh you got metamasks that's awesome we just switched networks right so in metamask where you're on the ethereum mainnet you just swap over to optimism synthetics is there now you can stake within synthetics on the optimistic pull ups like the cool thing about all this stuff especially with optimistic roll-ups uh and arbitrary roll-ups and this sort of thing is everything that you use today in d5 just works right out of the box so your metamask wallet like ledger all of

this stuff is just going to work and it's the same protocols you know and love but fast ux is going to be great so this is in production right now synthetics of course has been kind of pioneering the way with with optimism and uh next is is uniswap they're going to be on there too so it's pretty exciting i think in the world of um ethereum layer too yeah this little gif is just a really good job if you're explaining how l2s work there's like it's going to be a contract on ethereum where you send your money and when you put it in that contract it sends it over to the l2 and then you just switch your metamask you point your metamask to a different uh implementation of the evm and one will be the o the uh o evm if it's on optimistic roll ups and you're

just pointing to a new chain uh and the cool thing is that chain has the same assurances that ethereum does and now you don't have to use any new infrastructure you just you're you went through the portal and now you're on the other side and now your money and your in transactions are instant and cheap and it's the same infrastructure that we are all familiar with so the the getting it's one thing to build out scalable l2s it's another thing to make this uh the ui and ux seamless and the fact that we can use and recycle all of our same infrastructure is really awesome can't wait all right uh faye labs faye had a genesis this week i it's still in in in process as we're recording this a fei is kind of a it's a stable coin it's a different take on a stable coin

similar in some respects to maker except rather than sort of collateral being being controlled by individual cdp creators it's actually controlled by the protocol there's a lot of detail here and honestly a lot of complexity here we have covered all of this in an alpha leak that we sent out to bankless premium members we sent that out the day this thing launched the cool opportunity to the extent it still exists is you can actually deposit your eth into the fey contract you get fey but you're also rewarded in tribe genesis tokens these are the governance tokens for the fae critical i know a number of uh folks in in the backless community have have tried this out and and used this uh and are excited for it's kind of you know quasi

elements of a fair launch the governance community getting distributed to the early genesis believers of the project i'm not sure where fey ends up there are a ton of stablecoin solutions these days david but like we're super excited to see the innovation in staplecoins because ultimately we have to move from stable coins like usdc and tether to crypto backed stable coins that are 100 uh trustless and decentralized and this new crop seems to be moving in that direction things like rye you know you said this last week rise being a real stable coin rather than crypto dollars so it's exciting to see these sorts of things yeah yeah absolutely and uh it's just fitting in the thesis that what can be

built will be built on ethereum and uh this is not built yet the i believe the contract will finish uh receiving ether by end of my saturday end of u.s saturday um and so you as a listener to this on friday have roughly one and a half more days to figure out if you want to be a part of this or not have your own research all right david you ready to get to news let's do it what are we starting with are we finally announcing we're announcing it all right we sold out bankless acquired by wells fargo was the headline published congratulations ryan all right so this was published on april

1st okay april 1st right keep that in mind and the title of this bankless article i sent it out bankless acquired by wells fargo dear bankless nation huge news today breakup with your bank has been our mantra since day one but today i'm happy to add a slight addendum to that mantra blake break up with your bank and join wells fargo bankless has been acquired by wells fargo okay so i sent this email out because it's april 1st it's april fool's day guys uh sen sent this out and um look man i didn't think it was super serious like there were a lot of i mean um hints that this is all a joke

not everyone got the joke i know it's crazy yeah so my uh we've been recording basically all day today we've had like two big long episodes and uh i barely got into my email but i looked at it a couple of times and my email is wrecked we got some haters like there is a there so well it's a combination so some people are like i was mad at first but then i got the joke well played guys um that's probably 75 percent of people and 20 of people are just like f you you guys sold out this is terrible unsubscribe cancel my subscription um i hate this right it's funny because there's another five percent that are like

congratulations guys well done you pat yourself on the back you made it how much did we sell bankless for ryan oh my god well it wasn't even disclosed in this email uh in this in this newsletter so uh undisclosed um can you imagine what wells fargo would want even to do with us wells fargo has been the trope for us like from the very beginning of of being sort of the um like the bank that we're trying to get away from nothing against wells fargo i actually have a wells fargo account yeah so do i funny okay and then there's this picture of you standing in front of a wells fargo that like you use as your profile shot which yeah that is that is the new leak information is that oh david's profile

picture is actually in front of a wells fargo bank that is true that was not a joke that is a real thing so guys if you if you're part of that 20 who's angry about this don't be this is an april fool's joke bankless is not selling any of its media assets will never to wells fargo or any other bank this is not what this movement is about uh if you're part of the 75 who got the joke thank you i'm not sure it's too it's too early to to know whether like i regret sending this out or not i think i think it was okay but um we definitely lost some people and if you're part of the five percent congratulating us like i don't know why why don't congratulate us we don't deserve that yeah we don't deserve that um anyway

it's good to see that the 20 of the bankless community as well uh is holding us accountable for not selling out on our court police here um david optimus back to real news back to the real news okay that was some of the fake news david alluded to um back to real news optimism launched moving from march to july okay so we're talking about how bullish we are in layer two but now here is optimism um announcing another delay are you worried about this uh well yeah yes and no um i wanted optimism in march i was calling it optimistic march um but what i've gathered is that um be when they do finally release it in july it's not going to be the same release that we were going to have in

march is going to be with everyone there's going to be a full suite of applications in july that's my takeaway that is not something i verified with the optimistic team but that's what i've gained from from reading through the through lines in their posts is that when they do go live it's going to be with a whole entire just suite of fun things to do um on so yeah i will i'll be patient and i will excitedly anticipate the launch of july yep well um the uta swap team put the pressure on too they said uniswap bc is launching may 3rd and then optimism shortly after an optimistic version of unit swap v3 shortly after so hopefully shortly means sometime in july and we will see hopefully it's the even

stronger launch at that point in time um david this has been kind of the news of the week uh visa now settling payments in usdc uh of course is a stable coin on ethereum settling payments on ethereum they're doing this through the crypto.com visa card i guess previously this the settlement of the crypto.com visa transactions happened in the old traditional banking system and this is here visa saying hey it's okay why don't we just settle usdc on ethereum on the ethereum mainnet through our custodian i i think they're using anchorage as their custodian but david this is just like i think it's it's a small step in some

ways but it's a highly significant step because this is the largest payments company largest credit card processing company in the world effectively settling transactions for the first time on the public ethereum network to me it means visa is becoming a side chain of ethereum of course people will say like that's hyperbole you can't say that you're exaggerating things but this is how it starts man it starts with one settlement and then what's it going to be next what are we going to see next and it's not it's not just like if uh you know visa would be like oh we're you know let's get gut all of our old infrastructure we use ethereum now like like no that's not what's going on

perhaps that was that's what happens in 40 years maybe 20 years maybe less but the way that this starts is that visa puts one transaction a day on ethereum to settle up which is where they are starting and then they are will learn about how they can use ethereum block space to manage payments and they the ethereum block space is really advantageous for people that want to settle payments and so it starts with one transaction a day but visa will find a way to make use of ethereum's block space to better suit their offering that they have as a payment provider um and perhaps that even includes going on to an l2 roll-up or doing just other things and so this is the foot in the door that will i in my opinion lead to a just a

much longer larger uh more rich relationship between visa and ethereum yeah i think so too and and some people uh when i tweeted this out said but what about the eat gas fees here's the thing a company like visa doesn't care about a 50 gas fee when it's settling billions in transaction volume right think of the visa network as an entire side chain and in one transaction on ethereum they can literally settle billions worth of a stable coin value right so they don't care about a 50 transaction here or there this is an entire side chain doing the settlement yeah and and i think may that might come from the misconception

that like if you swipe your visa card then visa has to pay like a fifty dollar transaction on a theorem no no no no that's not how it works when when ten thousand people swipe their visa card over the course of the day then that all gets bundled up and that's one transaction on ethereum that's what the visa payments network is it collects and bundles and aggregates and then settles on whatever whatever uh settlement infrastructure they have available to them uh usually that's banks but now it's also ethereum visa is going bankless yeah yeah absolutely and um i mean this is back to something we've said for for a while is that transactions on the ethereum network will become more and

more economically dense so more and more value per transaction will be settled all right david let's uh let's move to this next um uh tweet well actually this is sort of a bit of news so tether just released some assurances that they are fully backed this has always been a question is tether fully backed or is it not now this is an independent auditor uh saying yes they are this is uh more i'm not sure who this independent auditor is it almost doesn't even matter who do we have to trust this independent auditor ryan that's the point we have to trust this independent auditor um you contrast that to another staple clay which is the die stable coin and all of the backing is is is is basically uh transparent and open and evident and auditable on the

ethereum blockchain and that happens every 13 seconds every time a new ethereum block is released we have the assurances that dye is is back we don't need auditors i just thought this was an interesting juxtaposition between you know tether which is kind of in this in between place of not really being defy it's sort of a like a tokenized version of traditional finance and die which is purely a d5 protocol and uh man it's it's so cool that um like you know we could show the difference and start contrast here yeah with uh with you know tether you have to trust the auditor but with die you are the auditor right well like where does the power lie

well said that's a good line all right uh david let's talk about what ave is doing they've got some layer two plans as well what are their plans yeah they are integrating ave on polygon which seems to be like the billionth integration i've seen like happen on polygon for some reason everyone seems to to really want to deploy on polygon it's here you know yeah it's true it's true um and so i guess congratulations to polygon and uh i'm looking forward to moving my ave position over to polygon because every time i do anything on ave it costs like a hundred and fifty dollars which is ridiculous yeah that's no fun gotta go to layer two all right david oh let's talk nft stuff man do you see the did you see the snl on nfts this is actually a great

explainer like my wife watched this like i was like if you want to understand nfts don't listen to bankless watch this get let's watch a short little clip okay now what the hell's an nft apparently cryptocurrency everyone's making so much money can you please explain what's in nft i said what the hell's an nft it's like real life monopoly everyone is doing it like gronkowski can you please help me make an nfc son i didn't understand a word you just said i think that's amazing dude so it's like it's like uh got a version of janet yellen and people in the classroom

are trying to explain to her what nfts are and like the explanations get increasingly complex but also increasingly accurate surprisingly like snl writers you guys understand what an nft is maybe we've got some bankless uh you know listeners in in the audience but um but yeah it's just a great three and a half minute explanation of nfts for mainstream so look if we're on snl it means we're mainstream right yeah but does that also mean it's the top question mark people have been saying it's the nft top for like months now so i'm not convinced um i think i think the nfcs are just in the beginning of integrating their way into public consciousness well michael jordan agrees with you so michael jordan just joined

a 305 million investment in nba top shot so this is the nft platform the nft train um produced by dapper labs so what's your take on this david yeah yeah i don't like i've i've been cordial about flow uh in the past but i'm i'm losing my patience uh if it's a l1 blockchain it needs to have state nation state level censorship resistance and it this does not have that and therefore these are these are not nfts and so i'm worried about the future of dapper labs and the future of nfts if they begin to be associated by dapper labs on flow

i'm not worried about the future of dapper labs because it looks like they are just minting revenue right now so i think they're doing quite a bit i'm speaking about the regulatory uh landscape right oh interesting i think that uh it'd be great to have somebody from dapper labs to sort of articulate the points on this and have a discussion on it um certainly in the past the uh the flow blockchain has been has been touted as an ethereum killer in some ways an ethereum alternative i'm not sure if that's the posture they would take now um but sort of the the you know reason cryptokitties didn't work we needed flow is sort of the thing um but i think that there's maybe a more nuanced take and we should have some folks from dapper labs on at some time

to kind of explain what top shots is one thing i will say that's awesome is they are getting more people at least talking about nfts talking about crypto now whether they're nfts or not maybe you might debate but um it's it's certainly a gateway of some kind sure they're not nfts they're faking it there you go this is david hoffman all right let's talk about an ethereum story a real interest y equals k all right what's this story yeah x times y equals k that's the uniswap v3 animation that came out from a people pleaser which the the animation itself pleased a lot of people so true to her name and i did a little put on my journalist hat and i went out and i interviewed

leighton cusack who helped form pleaser dao which generated enough capital to put over half a million dollars as a bid down on people pleasers nft and also people pleaser is donating all of that money to charity to help support marginal communities and so i think the through line here is that this is really just a fantastic story of what makes ethereum so great and i give that summary ryan you're scrolling down to it right here okay x times y equals k was sold for over half a million dollars because it leveraged the best of what ethereum has to offer capital formation in the dao a financial asset in the nft cultural expression in the animation and market values based on human values which is the legitimacy and

so right if you scroll down just a little bit more i put a graphic in there that i think it sums it up nicely i use this image of a camera to illustrate what's going on here a camera has a lens in it which focuses light and it allows people that perceive beauty to you focus their their perception through a lens and allows them to see an object that they find beautiful and what ethereum does is allowed people to all come together in a dow and focus their capital on purchasing this nft which they found had market value and that they wanted and so this story the through line here is that in ethereum enabled people to get what they wanted to get done that was aligned with what they wanted to see

in the world and i think it's a pretty cool through line it's super cool i'm interested to see what they do with this nft it seems like the people pleaser down maybe have the idea of like creating a almost like a digital museum of artifacts from uh the early d5 history of this being one such artifact are they going to have a capital formation event for further capital to for purchase further defy art question mark except i know somebody who wants to get in on that so i want it covering that all right david uh nft marketplace open c plants we're in the nft section by the way in case you guys didn't notice nft marketplace openc plans to integrate layer 2 protocol immutable x excited about immutable x because this is a way to scale nfts in a

decentralized way so this in some ways if you're worried about flow this is kind of the answer to the flow killer it's backed by ethereum it's secured by ethereum maybe flow is a different thing i don't know if they kill each other but but yeah it's definitely the answer the ethereum native answer to flow it looks like openc is planning to integrate immutable into their protocol when we talked to openc devin from openc they seemed really open to uh integrating everything though i'm not sure that they had a bias in one direction or the other i'm sure they're going to have flow on there i'm sure they're going to have a mutable action i'm sure they're going to have every other chain that has nf so-called nfts yeah openc is just an nft explorer right and so naturally as immutable x which is

a very hyped nft uh uh nft optimized l2 uh openc is going to be able to take uh nfts that are on your immutable xl2 and display that as assets that you own on on openc um so that's pretty cool david i'm gonna burn through these last ones because we want to get to takes with some remaining time but bitcoin goldman is introducing bitcoin to their high net worth individuals feel like goldman sachs always knows where the the gold is always knows where the money is looks like they can see the writing on the wall uh large high net worth individuals want to hold assets like bitcoin so they're offering them that service i always feel like i see a headline like this uh in in most bull

cycles goldman's doing something in crypto maybe they're for real this time this is one on regulation but coinbase has paid a fine to the cftc for some purported wash trading uh and i guess a related story to this i'm wondering if you could link them coinbase bases direct listing again they are ipo and they're going to uh list directly on the nasdaq and that's actually planned for april 14th that's very cool you don't know this is like breaking news i feel like where this is new as of for for me today are those two bits of news related yeah probably uh i'm guessing that coinbase needs to come clean because it's about to go public and so perhaps it made the mistake of allowing wash trading on its platform in

its early days um and so now it's atoning for its sins so it's coming clean to uncle sam so it can go public and i think this is a lesson in long-term uh playing long-term games uh and so coinbase uh regrettably for a short period of time forgot to play long-term games and now had to pay a fine and so perhaps this is a lesson to be learned for every young upstarting project or company or whatever if you don't play long-term games from the very start you're going to have to pay the fines in the future so play long-term games yeah absolutely um all right let's get to what's next is uh this is this is maybe the last news item ftx so that is a crypto exchange a crypto bank um up and comer almost like

a a binance junior that's what i think of ftx they are getting their name put on the side of a stadium in in miami so a major sports stadium um dude you know this reminds me of like a a banker play um hsbc slapping its name on the side of stadiums been doing that for a while like other big banks do this all of the time is this just like a bank or move or what is this yeah the difference here is that ftx is an unregulated offshore exchange that is serving u.s customers in ways that it should not and so my my mind goes to the icarus metaphor flying a little bit too close to the sun sampling

now now uh us regulators has definitely heard of you if they're if they're attending that stadium david uh let's get to takes in just a minute but before we do we want to tell you about the fantastic sponsors that made this rollups episode possible thinkless is proud to be supported by uniswap uniswap is a new paradigm in asset exchange infrastructure instead of a cumbersome order book system where trades are matched with other humans uniswap is an autonomous piece of software on ethereum which is what ryan and i call a money robot no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy something brand new in the uni-swap ecosystem is the

uniswap grants program is now accepting applications for grants we have been saying this for a while and we'll say it again dows have money and they are in need of labor if you think that you have something to contribute to the uniswap dao apply for a grant to uniswap just look at the size of the uniswap treasury it's almost 3 billion this mountain of capital is looking for labor do you have something of value to contribute to the uniswap dow no matter how big or small your idea is you can apply for a uni grant at unigrants.org and help steer unit swap in the direction that you think it should go that's exactly what we did to get unit swap to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring

bankless synthetics is ethereum's decentralized derivatives liquidity protocol what does that mean synthetics is a platform for creating and trading synthetic assets which are assets that are priced via an oracle rather than bids or asks traders can use the quenta exchange which hosts and trades all of the synthetic assets created by synthetics traders on cuenta can trade synthetic tokens like sbtc s oil or sd5 because quenta is powered by synthetics traders experience zero slippage on their trades no i didn't mean low slippage i meant no slippage because that is the power of the synthetics platform no slippage on your trades you can also easily short assets with

isynths which are synthetic assets that move inversely to their target asset synthetics isn't just for traders developers can build on synthetics to access the infinite liquidity offered by synthetic assets or investors can stake collateral to the protocol and earn fees that the protocol collects if you're a trader and you're looking for a trading platform and not found in the legacy world check out cuenta.io if you're a developer or you just want to earn yield on your collateral go to www.synthetics.io where you can stake your snx or ethe and earn fees from synthetics all right david you ready to get into the hot takes hot takes let's do it my

favorite all right niraj has always got some hot takes so he he's talking about um and nfts and he said he's like who's buying all this uh and this is the response maybe you should read it and give me the interpretation here yeah i think this i thought this was really interesting this is a really good point what if art people bought stupid all the time but already but blockchain lets us see how large that market actually is like wow actually a really important point like what like all these stupid nfts that are that are being bought well there's a lot of stupid art out there too maybe the only difference is that it's actually just transparent and we get to see all the stupid that people buy because it's art like maybe that's what's going on you're just saying who's to say what's

stupid and what's not sure sure yeah because the market kind of decides although a job rule fire festival painting that sounds pretty stupid to me it sounds pretty simple to me and it sold for 122k so uh there's an element of like values and eye of the beholder particularly for nfts what's this net next take oh dude this was on a great reddit thread that right it's actually i think inspired by our ultrasound money post and um vitalik kind of led the thread on our slash ethereum but what's the take here yeah the the take is that uh this is from bobot on our our ethereum uh is it possible that proof-of-wheat work was needed as a way to create the

preconditions of token value and decentralization that make for a successful proof-of-stake this is something that we've mentioned on the bank of this program here or here and later proof of stake is not actually a distribution mechanism it's a security mechanism proof of work is by proxy of its inefficiencies a distribution mechanism because bitcoin is uh bitcoin is secured by cell pressure on btc miners have to sell the btc they make and this is a distribution mechanism bitcoiners like this because it prevents any one miner from just having a monopoly on on not having to sell any of their btc um and so the the second half of this take is that i keep he says he or she says i keep thinking back to

netflix spending many years mailing people dvds as a way to build a streaming service they needed an early iteration on the concept that bridged the older more physical world into the newer more virtual one and so you know when we were when we were renting dvds from netflix and they would mail them to us it's because literally the bandwidth of the internet wasn't good enough and so they just mailed us the dvd and so the the uh the corollary here is that uh proof of work is this kind of old system that's rooted into the physical world that's not yet optimized for the virtual world but now with proof of stake we do have that optimizations where we can instead of mailing dvds we can just start streaming i like the

parallel here yeah i like that analogy i'm with it i got it let's uh let's go to the next one so this is from jacob um from twitter so just a reminder vitalik coined ethereum as the lego of crypto finance in 2014. here david i thought you came up with the money lego meme but apparently vitalik front ran you in 2014. lego of crypto finance yeah money legos is more catchy though yeah that's true you perfected it well done sir uh second the white paper calls out d5 is the first category of applications for ethereum and i think his point is this critics will tell you that ethereum's narrative keeps changing and quote no you just caught up sweetheart he says

nice sassy there i look man i i've never understood that that that critique that ethereum's narrative keeps changing because no it hasn't it's always been about defy um always from the very beginning like i've hopefully if if you're listening to this like go back and read the white paper and these are use cases that vitalik talked about in the white paper decentralized finance use cases that are coming to fruition have come to fruition money legos was predicted in 2014 this has always been partially about a decentralized money system money platform a bankless money system defy was always part of the vision i think one thing that might be true from the critics perspective is

that the eth narrative eath the asset that narrative has changed and to that i would say okay fair enough right when ethe was presented it was very much presented as um an asset to pay for ethereum transactions almost like a cryptocurrency to pay for a commodity and the commodity is ethereum block space that's changed but the reason it's changed is because people started using it as money david that's why it changed and you know it changed because the use case changed essentially didn't change because like some mastermind is trying to pull one over on you and sneak in new narratives right um and look the bitcoin narrative has changed uh as well

over the years in the same way so what what's your take on this yeah the i think people that that point out ethereum's changing narratives have it backwards like narratives don't lead crypto systems cryptosystems lead narratives when we when we created the internet as humanity we didn't know what we created we had to discover what the internet was and the same thing with bitcoin like we didn't know what bitcoin was at genesis we didn't know that there was going to be a civil war between block size over store value asset or cash payment bitcoin we didn't know what that was going to become we only knew it in hindsight the bitcoin narrative changes just as much as the ethereum native narrative we are discovering what ethereum is we are discovering what these things will be we

do not create them we they happen to us blockchains aren't created they are discovered hasu quoted that from our monday tweet i think he's actually quoting vitalik he's always at the root of everything dude sorry all right tweet from hayden adams who by the way uh we're having the podcast soon um available today go watch it available today after you go watch you finish watching this well here's what he says if you're building something valuable for the uniswap ecosystem consider replacing venture capital races with a governance proposal wow the unit swap community will fund your project guys you don't need a vc you don't need capital from outside investors you can

just apply for a uniswap fund if you're building something related to the unit swap ecosystem pretty cool yeah the fantastic thing is is that uniswap is just allowing builders to not have to sell part of their company and so you're i mean uniform has 2.7 billion dollars denominated in uni tokens so if that goes up then the treasury goes up 2.7 billion dollars is effectively infinite money uh and and so that i think this is a great a great just it's part of the whole like cool stuff about ethereum is what does this enable you don't have to sell out your company you can just go get free money from uniswap if you are build something that is in alignment with what the protocol wants

let's talk about cool stuff cryptoculture is tight crypto culture is tight that is why you say why why why is that your take why is it tight what's awesome about it we we have funny jokes we have funny memes we have funny lingo we have a good time we don't have to sell our companies because cryptoculture is tight we just apply for grants we we exist on the internet we have digital relationships we are pioneering what will be the in my opinion the future of culture of humanity and it's going to be digital it's not going to be changing the the legacy culture the the worldwide culture because humans are moving online and so we are pioneering digital culture and it's really tight and we do not have to sell to wells

fargo and we don't have to sell the wells fargo who would do such a thing all right david let's talk what are you excited about this week i'm excited about rugging the fed and this idea came to me uh when i was writing the market monday piece which was about the the visa settling on ethereum and so this is how we slowly rug the fed and ryan if you want to go into my article i i kind of gave a nice little illustration about what this means and so fisa is using ethereum as its settlement layer it's using usdc um but it doesn't always have to use usdc um right if you want to scroll down to that that first graphic um and so we have this visa just incorporating itself between its its merchants coinbase bitpanda

crypto.com blockfy settling usdc denominated denominated payments on ethereum but but visa is just a profit maximalist company they will do what the people want and they will settle assets even if they're not dollars if the people want them and so all of a sudden instead of perhaps settling usdc maybe we're settling die maybe we're settling rye maybe we're settling an algo stable coin that has nothing to do with the federal reserve that's not pegged to the dollar and so this is how we rug pull the fed like first we get visa to settle us dollar payments on ethereum then we get visa to settle perhaps die on ethereum and then we get visa to settle something that has nothing to do with the federal reserve and then if you

scroll down to the last graphic ryan then we have a new bank list uh one more and then we have a new bankless infrastructure where visa is settling payments and it has nothing to do with the dollar or the federal reserve and that is how we re-rug pull the fed you know my response to that is david tell me i'm excited shh don't tell them quiet quiet sir this is the secret not until our plan is closer to conclusion i mean but the good thing about this is um even if you very much believe in the central banking system in the us i'm not sure that we have a lot of those listeners but even if you do let's say you do um you know

isn't it a good thing that central banks around the world now have to compete for the people right they don't carte blanche get to be our reserve currency they actually have to compete with alternative alternative store of values that the market has created that the people have created from the ground up that's going to be a net benefit even if the the the fed doesn't get fully rugged the fact that maybe there's the threat of them getting rugged like makes a better central banking system too so even if you're not fully into the idea of the the fed rug pull like the presence of crypto is going to hold central banks more accountable and this is a net good

thing for society that's my take yeah but also an extension out of the sovereign individual thesis where the ability ability to exit is new and that is what cryptosystems offer and now we can finally exit from the fed maybe you don't want to exit from the fed but like right like you just said ryan having that option is always advantageous to the people absolutely all right ryan what are you excited about david i'm excited about the hayden adams podcast this has been a year in the making over 12 months in the making we've been in hayden's dms we've been asking him publicly on twitter it's almost become a running joke because it's been like hayden adams from uniswap he is of course the creator of unit swap when he come in on bankless and uh he's

always been like oh the time's not quite right like soon but not yet it finally happened we got him we got hayden adams on the podcast we actually just talked to him uh today and this is a long podcast two and a half hours long but we go through the entire history of uniswap from inception i think this is going to be a story that the history books will tell like in in line with the the start of apple computer the start of microsoft right early silicon valley companies this is a story for the ages and so we wanted to chronicle it well so we go through that history and then we talk about unit swap v3 which hayden thinks will be even even more important to the to the world

like uniswap v1 v2 has been just the start on this journey and he believes that that v3 is kind of the next chapter that's going to send uh uniswap into the trillions uh in terms of in terms of volume exceeding the s p 500 exceeding nasdaq exceeding the traditional financial exchanges so go watch it uh david i guess it's a question to you i know you're editing busy editing after this podcast when's it coming out uh right now it's available right now uh if you're watching this on youtube go watch it but not before you watch the meme of the week which comes next shall we get into that yeah let's get into the meme of the week what are we looking at yeah so diversify put out that fantastic uh ethereum l2

ecosystem and they also released their cardeno ecosystem as well look at it oh it's nothing no there's nothing there there's a skeleton because cardano doesn't have smart contracts are we are are we being mean here is this is this sweet meme or is there a lesson here i wish when i was getting into crypto back in 2017 and i thought about like a poly chain universe of oh yeah every single chain will exist uh i wish somebody would be what was mean to me back then so i would get some some sense slapped into me um cardano is not a real system it's not live it doesn't have contracts it doesn't have an app player it just has charles hawkinson who is a bitter developer uh who's trying to i don't know

click grasp for straws for attention that's my hot take that's some spice i mean the the thing about uh cardano is that it's its market cap is something like 50 billion or 30 to 50 billion dollars so it's a massive market cap it's being valued as if it is a legitimate threat or a legitimate uh defy platform and the the reality is like there's there's no ecosystem there's nothing there are no smart contracts there and no one's building i think the messages like through this meme is um make sure you do your own research folks right like it's very easy to watch somebody on youtube tell you that some token is going to go to the moon

not tell you why but like hype it up like have you used the system have you ever done anything of value on on a system like cardano if the answer to that is no if you can't even use it then you got a question what you're buying right this has always been core to the the bankless um platform the bankless thesis is you only become an informed investor because you use these systems in the real world and if you're not willing to spend the time to go use the system and test it out and see it do something of value don't buy it you're not an informed investor until you do that you're just buying into a narrative narratives can be dangerous they can be destructive that's the message here behind the meme yeah that's the that's

the nice message uh i i prefer the mean message there you go but i won't read it i already said it guys risks and disclaimers of course is risky bitcoin is risky all of crypto is risky so is defy you could lose especially cardano is really risky uh but we are headed west this is the frontier it's not for everyone but thanks for joining us on the bank list we hope you enjoyed the video if you did head over to bankless hq right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence we recommend joining our daily newsletter podcast and community as a bankless premium subscriber to get the most out

of your bankless experience you'll get access to our market analysis our alpha leaks and exclusive content and even the bankless token for airdrops raffles and unlocks if you're interested in crypto the bankless community is where you want to be click the link in the description to become a bankless premium subscriber today also don't forget to subscribe to the channel for in-depth interviews with industry leaders ask me anythings and weekly rollups where we summarize the week in crypto and other fantastic content thanks everyone for watching and being on the journey as we build out the bankless nation