ROLLUP: 3rd Week of March (Elon Musk NFT Song, Stimulus Checks, Canada Crypto ETF, Gemini & Aave)

Transcript

[Music] bankless nation it is the third week of march we hope you're doing well david what are we doing this morning we are rolling up the third week of march always an ambitious endeavor in the world of crypto to roll up a full entire week's worth of news into one single podcast but we do that nonetheless first we are starting with markets what is the market saying then we are going into releases what got released in the last week of crypto then we'll talk about what's been in the news cycle and then we'll talk about interesting takes who had good opinions in the last week of crypto we'll finish up with what david and ryan are excited about and of course top things off with the meme of the week my favorite part

about the weekly roll up come for the news stay for the memes guys we do this every friday so you can enjoy this episode with your morning coffee this is the fastest way to get crypto the week of crypto downloaded into your brain david are you ready i'm ready right into marcus all right man let's get to markets what is bitcoin telling us this week what's the price now and what was it earlier in the week bitcoin hit a all-time high this week it touched out at 61 800 something something pretty close to that so congratulations bitcoin another all-time high uh took a little took a little tumble after that to uh the low low price of 55 000 but then has since popped right back up uh touched 60 000

this morning uh but is currently hanging right below it at 58 100 uh bitcoin all-time high the same week that uh us dollar or uss stimulus checks go out to most americans so is that a coincidence increasing correlation uh it seemed like only a year ago bitcoin was hanging at the four thousand dollar market in fact it was just a year ago we're going to talk about that later i can't believe how far we've come but let's talk about the story behind eth where are we hanging with eth yeah during bitcoin's touch and breach above all-time high ether got to a 1930 dollars not really having that same amount of strength that bitcoin has and then of course after it got up to that that 1900 mark it seems like it was

gonna go for 2000 but then it took a tumble back down to the low 1700s and but then has century surged back to where we are today at eighteen hundred and twenty dollars um kind of kind of lagging behind the ether taking his time not going too fast definitely we're going to talk about eth versus uh defy tokens as well because i think that's an important metric we talk about so often i can't wait to celebrate eth2k yet again david i think the the price for us to get back to all-time highs to do what bitcoin did last week is somewhere in the you know uh 2030 range or so if we if we breach 2030 then then ether will be hitting its all-time high uh i don't know

any one of these weeks could be happening hopefully we get e2k sometime soon i've always having a fun time watching eth bounce through the 1900s because then it's like a walk through history it's like oh the 1940s this was world war ii oh 1950s the roswell incident is that really what goes on in your mind yeah that's right i checked the price i'm like oh it's my mom's birth year like oh cool that's awesome man all right total locked in d5 uh we are hanging close to all-time highs as well everything about this year i feel like almost every roll-up is either we're hitting all-time highs or we're close to all-time highs we are 44 billion dollars locked in d5 that number has flattened over the last month or so but is definitely up in a

huge way on the year and if we scroll out to all you get you get a hockey stick that is uh just like a a straight up line almost a vertical line of the growth of dollars and value locked in defy i should say so what's this telling us david yeah again it's always telling us that the assets deposited into d5 are generally going up in price there's more defy apps to deposit assets into and there are more total assets being deposited into those defy apps um next up 100 billion dollars locked in d5 there you go that'll be something to celebrate dpi itself which again is the top 10 d5 tokens in the d5 pulse index is an indicee we like uh that's hanging

out around 440 at the time of recording that's kind of flat on the week anything here we should be looking at yeah flat on the week but again i don't even personally look at dpi versus the dollar i always look at dpi versus eth um yeah look at that even flat on the one month time horizon started started basically uh uh the 19th of february at 1440 and which is exactly where we are today so dpi flat for a whole month wow all right david let's jump over to what you were just talking about which is dpi versus eth on the ratio what's the ratio telling us this week yeah dpi 0.24 eth per uh excuse me dpi per eth

on that lower band of that channel that i keep talking about kind of touching the bottom um but you know still still over 2021 dpi birthdays it's still pretty strong so d5 season yes still going defy season uh slowly but surely it's it's a slow it's a slow motion dpi dp defy season that's what's going on okay it's definitely nft season that's for sure you know pretty soon we'll get some metrics up here around the price of the nfts and and how that's tracking the market if uh last summer was d5 summer this is sort of i i mean it's nft summer only it's happening in winter but let's talk about assets in general assetdash.com provides a really interesting view of the world's biggest

assets so at number one the world's biggest asset just fyi is apple it's breached over two trillion in terms of of market cap but look at this guy look who's number six bitcoin bitcoin number coins bitcoin number six hovering between google and facebook and if we scroll down we see uh semiconductor companies berkshire hathaway we see fintech companies like visa walmart and we get all the way down let's see oh there he is hanging out at number four 444 is ethereum ether at a price of 209 billion dollars that's the market cap the 44th largest asset in the world right now

and we'll we'll pop up this chart from time to time because i think it shows a really interesting view of of crypto and particularly its flagship assets versus the rest of the market here anything else we should talk about david dude adobe at number 41 is worth more than ethereum that is insane adobe a software company for like digital arts like digital arts are important but like come on adobe versus ethereum uh looking forward to watching ether march up this uh this asset dash.com list of assets we've got paypal hanging out at number 26 so also above ethereum we've got bank of america at number 21. mastercard is up there i mentioned visa earlier there's a number of banks that are

hanging above the world's open financial system so we'll see how long that lasts but is coming for you guys all right um let's talk about this this is a really interesting graph from anthony sasano he dug this up we've shown this before but this is the percent of ether that is locked in exchanges so actually in um in green what you're seeing is the percent of each balance on exchanges so these are what we would call crypto banks these are centralized exchanges coinbase gemini binance we we we love these uh as a bridge but we don't necessarily think this is the place to park your self-sovereign money we'd rather you go

bankless and the good news here david is that less east a lot less eth is stored in those banks that means more people are going bankless and what this means to me david is this is really this ratio this percentage of eth that's not inside of of custody crypto banks this is our best hope for a bankless world so this number going down this is going down from about a year ago from 20 to 13 it's just straight awesome news it gives me a lot of hope and a lot of optimism that even the bear market people are continuing to go in the direction of becoming more bankless becoming more self-sovereign with their funds what's your take here yeah there's a number of different stories being told on this

graph uh the the first story that comes to my mind well is this is this is literally a bullish indicator because when there's less ether on exchanges ether price is more sensitive to to price movements usually to the upside usually when ether is flowing out of exchanges it's because people are buying that ether and then cold storaging them and so when ether price is removed from extinct exchanges any further by pressure has outsized influences on the price of ether right so people look at supply of assets on secondary exchanges to get a gauge for whether people are selling or buying and if flow if there's ether flowing out of secondary exchanges it's because people are buying it the other story being told is this purple graph or purple line which is the supply

of ether in smart contracts which is going up seemingly inverse to the relationship between ether outflowing from exchanges uh ether inside of smart contracts for the over the last years uh went from 12 to 21 uh and so you know money robots are gobbling up eth and a and crypto banks and crypto exchanges are having eth outflows this is what we want to see if we want to see a defy bankless version of self-sovereign money and finance money robots eating the banks that is a good sign absolutely um here's another view of eat supply held on exchanges again going down this is uh this is showing the same thing in a

different way but that is all good news david uh speaking of good news a year ago at this time as of march uh 13th we had an event in crypto and in the wider markets known as black thursday do you remember black thursday david i remember black thursday ryan that was very it worked what do you remember about it yeah i remember we recorded bankless episode number two uh and i was very just for as good as that episode was which was a fantastic episode by the way i was extremely distracted by like this plummeting eth price uh and then i went into work uh when it back when i worked at realty you know we no one was working it was just only looking at just like

the macro markets taking a huge huge move to the downside same thing with crypto it was just a very distracting day and to me that was the day that like kovid became real because when the markets drop by like 20 in a day like that makes things feel very real um and that's that's when we discuss as a company that we were actually going to start working from home and it was actually kind of the market taking a big move to the downside that was actually the thing that triggered that conversation which was interesting to think about wow that very much felt like a black swan event just in general in macro because equity markets took a dive it was a scary week from that perspective but crypto markets completely tanked and this was on on the back of kind of a brutal uh two-year

bear market where it seemed like early in 2020 we were recovering there were some people were bullish yeah there were signs of life in crypto we started we had the d5 pulse index we started seeing d5 really take off and then bam uh price drops on bitcoin go going down to like the did it get to the 3000 level i mean it was doing four thousand four thousand two hundred or four thousand five hundred something like that that's that sounds right so like uh bitcoin had no no volume this was actually the low point for ether it 95 off its all-time highs dude 95 and it very very much for for many people felt like like we're f this thing is over right like it's it's it's gone

um but a year later here we are price of bitcoin as you said hit 61k price of ether as of recording in the 1800 mark over 2 000 if you had the uh if you had the cash right and the wherewithal and the guts to bet on this kind of low uh you you i mean you're doing like a 10x 2020 x almost yeah that's that's crazy these markets can turn around so quickly um i think it's a good lesson for for all of us a lesson on holding a lesson on buying the dips and uh wow things have really changed in

the last year yeah ever since the the bottom in march ether and crypto and bitcoin have just been it was up and to the right for all of 2020 and you're totally right like sentiment in early 2020 was like turning optimistic and bullish and then we got like punched in the face by kovid but once that passed once that punch like was received and taken it was again bullishness from then on out right it was up and to the right except for that one just massive blow to the gut i didn't know it would happen so quickly david i thought it was very possible that we could be another couple of years right yeah at least another year into the bear market things things move fast in crypto as always speaking of things moving fast this is spencer news noon talking about the

decentralized exchange space and i think this this graph i love that they always use in these these graphs unit swap is pink you know kind of like unicorn i guess color pink uh this is seven day volume for decentralized exchanges and just shows how dominant uniswap is 57 of the volume uniswap is capturing i remember when no one believed that amms that's automated market makers kind of money robots that are uh super simple and and provide permissionless trading pairs i remember when no one believed they could be a thing on ethereum at all and now here they are just completely trouncing order book exchanges and uniswap the the simplest of them all uh beating all of the others

what do you think this tells us yeah the uniswap dominance is absolutely insane but then also just the simple amm uh sim simple amms versus complex amms dominance is also insane so if you want to uh look at that category that is both unit swap plus uh sushi swap uh which are just basic amms one to one amms um and that is what is that that's like 70 percent of all volume on dexes on ethereum is just basic amms in sushi swap and uni uniswap um and everything else is long tail and so it's bullish on simplicity yeah absolutely and um we'll see if that continues to persist

but definitely simplicity has one this is why i've thought of uniswap almost as like if this is the internet of value uniswop is almost like the google because you know just the same way you know if if if assets are like web pages in in in the internet uh google is the the crawler of in the in the catalog and the index of all of these web pages unit swap is like the index of every erc20 token that can be found and it provides something different not the ability to go find the website but the ability to trade the asset this is kind of the internet of money that's why i think google is an interesting comparison to unit swap and it's definitely maximally simple if a token has liquidity you can probably

find it on uniswap yeah absolutely um all right well let's talk about um dpi outperformance relative to other indices i i guess what we're seeing here in in the unit swap graph and this graph is almost like a network effect kind of a power law dominance what are we looking at here david yeah so we're looking at the asset the total value of all assets under management inside of dpi and there are many different attempts to generate indices that are dpi uh d5 focused but it really seems to be that dpi has won out as the indicee that is tracking d5 there's other indices in this list as well that are tracking other things um but mainly the

competition at least so far the story has been told that the competition to create a d5 index natively on d5 infrastructure has been won by dpi absolutely it is about 10x above all the others so far all right david we're gonna get to releases in a minute but first bankless listeners we want to thank the sponsors that made this 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 different crypto assets including many

of the hot defy tokens and it's one of the few exchanges that has liquid dye markets gemini just launched their earn program where you can earn up to 7.4 interest on 26 various crypto assets if you're tired of paying fees and defy where you don't want to worry about defy exploits but you still want to earn interest on your crypto assets gemini earn is the product for you another product i'm stoked to get my hands on is the gemini crypto back credit card which gives you three percent cash back on all of your purchases but paid to you in your preferred crypto asset when i get my gemini credit card i'm going to make sure that i get my cash back in east so whenever i buy something i get a little bit of eth bonus back to me at the same time you can open up a free account in

under three minutes at gemiini.com go bank list and if you trade more than a hundred dollars within the first 30 days after sign up you'll be gifted a free 15 bitcoin bonus check them out at gemiini.com go bankless ave is a borrowing and lending protocol on ethereum and just recently released ave version 2 which has a ton of cool new features that makes using ave even more powerful with ave you can leverage the full power of d5 money legos yield and composability all in one application on ave there are a ton of assets that you can deposit in order to gain yield and all of those same assets can also be borrowed from the protocol if you have deposited collateral here you can see me

getting a 200 usdc loan against my portfolio of a number of different defy tokens and eth i'll choose a variable interest rate because it's a lower rate than the stable interest rate option but i could choose the stable interest rate option if i wanted to lock that interest rate in permanently one of ave's v2 features is the ability to swap collateral without having to withdraw your assets trade them on unit swap and then deposit them back into ave ave does all of this for you all in one seamless transaction so you don't have to repay loans in order to change the collateral you have backing them check out the power of ave at ave dot com that's aave.com all right bankless listeners we are back

david let's get to releases let's talk about our first release this is something that is vitally important something i'm super excited about i know you're excited about it's called zk money what are we looking at here yeah zk money otherwise known as zero knowledge money this is privacy on ethereum as an application and so think of a very similar intent as zcash zcash is zero knowledge cash but that's its own blockchain with his own asset this is zk money which is an application on ethereum which can provide the idea ideally very comparable levels of privacy is what zcash can offer but as an app on ethereum so starting with ether and rapt ether but then also in the future erc20 tokens as well

and so using zk money which is a rollup you can deposit your ether into the zk money roll up and then that is its own internal payments and private payments ecosystem right and so uh similar to like registering an account on coinbase or registering your ens address you need to register an account inside of the zk money roll up and then like i registered davidhoffman.eth or no just david hoffman on the zk roll up and then so you can send me money in the zk roll up to david hoffman but you can send me money in a shielded way where i can't go look at where that money came from and i can do that for other people as well you know remember when we were talking about loop ring being like sort of a like a long pier and then you get to

this whole this whole universe it's just like that that's what that's what this roll up is only you travel across this pier to this whole kind of carnival and this great experience and everything there is private on the other side and of course this is a roll-up so it's not a side chain it is a layer two solution which means it is secured by ethereum david when you moved from your eth from ethereum mainnet to to this zk money roll up how much did that cost i'm just curious yeah i put one ether in and that cost me point zero one eighth so one percent of an eath and then inside of that roll up what are gas fees like they're probably like close to nothing right right i haven't actually

transacted because i don't have any friends in there that need me to send them private money but if somebody needs me to send them private money we can try this out um but uh the the pitch is that both zero knowledge uh technology is both privacy technology and also compression technology and so in theory you actually kind of get two birds with one stone because you get private money and you get cheap money and so again i don't have the numbers at hand but the promise of zk roll ups is both privacy and sp uh cheap transactions and so i don't i don't know what those fees are but they are supposed to be cheap i remember last uh bull cycle there was much ado about privacy related blockchain so monero and zcash um the other thesis around that is that all of

these uh privacy solutions wouldn't have their own blockchains but they'd just be apps and this is almost the manifestation of privacy as an app on top of and secured by ether rather than being its own chain we'll see how that plays out but looks promising there david let's talk about this next one super fluid this is this is a really cool concept i think this is the idea of streaming money so rather than giving you a bucket of money a one-time payment being able to stream money this is something that andreas antonopoulos i remember him talking about this as an early use case of of bitcoin of course bitcoin went down a different path and became more of a store of value digital gold but it's always been part of the

crypto cipher uh vision i think from its early days what are we looking at here with superfluid what is this yeah we are seeing the linkage between payments and time and so if we and that of course is what streaming payments means and so the way that this system works is that you can make a transaction on ethereum that has certain logic in it that allows people to receive money based on how many blocks after that initial transaction has been made and so i can make a transaction that says every block ryan is allowed to receive .001 eth every single block and i can be streaming him that amount and the cool thing is is it only takes one transaction in one block to establish

that stream and then that stream just perpetuates until one of us cuts that stream off and the other cool thing about superfluid is that once a link between two people are established and one of those two people can go and make a link a streaming link between a third person and then fourth person and all of a sudden this turns into a building of a mesh network of streamable money and so there's the possibility of all of these monies being to like flowing between wallets based on this like kind of streaming standard this streaming logic and so the the options here are endless and not only are we talking about money but we're talking about literally any kind of token on ethereum so anything that can be tokenized into value can be also streamed so that's pretty cool

it's also a different a new money lego unlock i think so we we don't often think about streams of money but what are the new use cases that they lock up of course something you let's say your salary is a thousand dollars a month or you're getting paid as a contractor a thousand dollars a month well rather than receiving one lump sum payment maybe you get certain amount of dollars in allocation of that a day that's that's somewhat interesting but what about the subscription that you pay to netflix maybe streaming that rather than a one-time payment or we get into these micro transactions where you're maybe watching a video a youtube video or something and as you're watching it it's charging you some sort of stream of fractions of a penny to watch that this is a whole new unlock that's actually

not possible in traditional finance there were some attempts to do this with a project called sablier on ethereum mainnet what's interesting about superfluid too is they've actually chosen to deploy first on not sort of layer 2 side chain world so x-di and also matic network so uh transactions are cheap to get this started it's kind of fun to play around with yeah and this was also kind of gas optimized to begin with where that streaming money that that stream updates every single block but it only makes one transaction on the blockchain so the state is actually updated but because it's baked into block time the state is automatically updated by every single issuance of a block and so you have kind

of this is kind of this cool little trick to make sure that we are updating the state as much as we want with these streaming payments but without actually having to make any single transaction on ethereum because it's baked into the logic of what block height are we at which that's kind of cool dude i always get blown away with how much of the cypherpunk fission we're actually achieving right so like stable coins i remember 2013 that seemed like it was never going to happen now we have stable coins now we can stream microtransactions stable coins super cool stuff david let's just do a drive-by uh on this but the argent wallet it's one of our favorite smart contract wallets for beginners the problem with it though is gas fees are high the solution though is coming they're actually rolling a layer two

inside of the argent wallet anything more to say on that yeah check out their blog post it's pretty informative of if you want to go and dive deeper into how argent is using the l2 uh but they are using a zk sync if you guys were if that was the answer you're looking for they're using zk sync to uh to scale out the arjun wallet so congrats to the urgent team very cool all right zeppelin so these are one of the defenders of ethereum d5 money robots they audit smart contracts and they build security tooling they've just built something called defender sentinels what is this from open zeppelin yeah you guys might be familiar with the term watch towers at least when it comes to bitcoin's lightning network some systems some cryptoeconomic systems

need to make need to have people observing them for them to be game theoretically sound if somebody is not observing uh the the activity then an attacker might get away with a an attack undetected and all that is required is somebody to detect it and report it so it's actually a very simple service and that is what open zeppelin is doing is uh and this is especially relevant for um things like optimistic rollups withdrawal periods where there's this one week withdrawal period where people if there is something that went against the rules someone needs to report it and if somebody doesn't report it by the end of that week then that spells trouble um and the plasma also has this design constraint as well but looks like open

zeppelin true to the brand of making sure defy is secure is now uh like observing defy and what needs to be observed to ensure that d5 is safe so thank you open zeppelin security tools are always getting better speaking of tools getting better the gnosis multi-sig wallet which is the most used multisig well it's got billions worth of ethe and erc20s uh inside of it um it is integrating a suite that allows people to start managing dowels directly from their gnosis multi-sig wallets so this is kind of an unlock i think for treasury management if you have funds inside of gnosis multisig which means you're generally

sharing it as part of a team you can now have direct access to dow tools so what are we what are we talking about here they're calling this safe snap what is safe snap david safesnap is one part governance tooling to help the governors of protocols make decisions but it's also one part dow treasury management and it's kind of the link between the two and so it aggregates off-chain signatures by people that are authorized to be governors of the dow and then that uh off chain uh signature aggregation can go into an on-chain transaction that has something to do with the treasury behind a dow at least one that's using the gnosis safe which again is actually perhaps the the strongest smart contract

on ethereum ever as as valued by time value locked and so we think it's going to be a a very concrete tool for dows to you know securely store their funds but then now it's also an extension of dow governance endowed decision making which is pretty cool look dude 20 billion in in those is safe that's right not a short amount of time too so 20 billion times the amount of time is in there it's pretty crazy and i don't think we're gonna talk a bit about treasuries in a little bit but like doubt treasuries are getting absolutely massive and dow governance is getting much more sophisticated and it's getting much better this is a a image of snapshot which is kind of a a governance

tool across all these platforms all a whole bunch of dials it aggregates dials inside of kind of one user interface 574. yep dow governance explorer uh 574 different dows here wow um you know that's crazy look how many billions of dollars look this is uh this is decentralized coordination super cool stuff man these are these are internet internet organizations that's what they internet native organizations institutions if you will digital institutions with on governance wow interesting with with with a foot in the legacy world as well and speaking of which this is tyler winklevoss from gemini with the laser eyes on nice

job you put out a tweet uh i've just proposed a proposal post a proposal rather for gusd that's gemini dollar so it's similar to usdc not quite as popular but it is a stable coin that is crypto bank backed um just put that in as a collateral option on avid you know what's kind of cool is i like that that tyler and cameron are like digging deep on this d5 space like here he is uh he you know like owns an exchange is a billionaire and he's posting on ave governance forms posting a proposal on ave governance forms it's just in a transparent way it's super cool to see how all of this this works what's your take here david yeah so it's

pretty cool because we always want more assets inside of ave that's always a good thing and naturally i'm sure the winklevoss twins with their interest in expanding on the the utility of gusd also wants that to happen but i think what really if we want to really read between the lines bankless listeners should ask themselves what happens when gusd turns into a yield bearing instrument inside of ave and what can that what can be done on the gemini website the gemini front end to its users because the gusc stablecoin is now interest-bearing because of ave how are those two things going to be linked is it something like the d5 mullet with fintech in the front and define the back question mark

it's always the d5 mullet david always that's always the answer you know what's cool to see too is like um crypto banks can be like deep five friendly too so i sort of i see i see crypto banks like binance trying to like consume d5 not necessarily collaborate it collaborate with it but more consume it so finance launching the the binance chain we're going to give all of our liquidity to that binance deprioritizing eth and trading its b and b pair right so like that's one tac a crypto bank can take let's just first off maybe not right but definitely very profitable at least in the in the short run but there are other crypto banks that are taking a different tack and they're collaborating more with with d5

protocols and i mean we definitely have a preference with with which ones uh with which ones we like but i think we're going to see both of these strategies play out on the crypto banking side it's good to see some crypto banks collaborate with dfi more than try to build against them and that's a we have a uh twitter conversation with hester pierce and uh who is the sec commissioner i think that conversation is going to be relatively similar to what we're talking about here where there's different ways to have alignment with d5 protocols and it seems to be that gemini is choosing to align with d5 protocols rather than being in opposition towards or trying to like you say consume and so i think that's the appropriate stance that

large-scale institutions should have do you know hester pierce sec commissioner as he said she was familiar with the d5 knowledge she actually quoted it in a speech apparently yeah bankless listener hey hester if you're if you're listening uh that's going to be an exciting episode looking forward to that one um david let's talk about another defy index product this is from from uh index co-op this is called the fli this looks like a a leverage sort of token play what are we looking at here yeah so it seems to be the fli flexible leverage index is a kind of a token standard or a standard produced by the index co-op to produce

leveraged tokens and so naturally the most obvious leverage token that they're going to produce first is 2x eth and so it's a single token that represents a 2x long position on ether and so if ether doubles you should get more than double of what you got and if also if ether gets cut in half you should get liquidated that's probably how it's going to work but the cool thing is is that it's embodied into one single token so one single token represents 2x exposure to each price movement so that's pretty cool the other cool thing about this is this is generalizable and so what do we think will come next perhaps a 2x btc token perhaps a 2x uni token perhaps a 2x ave token you know long or short or whatever i think this is going to be one of the

next big things to come out of the index co-op i know there's going to be massive demand for this product because uh folks in crypto are also degenerates david but like what are you doing when you need 2x on volatile assets like eat the d5 tokens like is there not are you not getting enough adrenaline for the space you want to take more risk and more some people ryan are just go have gotten used to the volatility and so we need more volatility or else it's just the same you know always i get it i know there's there's going to be demand for sure all right um let's talk about xerox protocol is going live uh multi-chain they're going live to the binance smart contract chain this has

been a theme we've talked about a lot where many of these d5 protocols are going cross chain whether that's a side chain something like binance or whether that's layer two something like an optimistic roll-up um i think xerox protocols basically if you see this image here you kind of see what their strategy is we'll just deploy our protocol on all of the chains everywhere this is kind of the the shotgun approach which we've seen before uh any takes here yeah and so this this actually actually makes a lot of sense for what the 0x product is because xerox isn't actually hosted anywhere and i think this is correct but i might i might need to be double checked on this but xerox is just a protocol for making bids and asks on a secondary

market but they're an aggregator they're an aggregator and importantly it's just a it's a standard for passing messages between each other and so like you know i will make a an order on the xerox protocol on some ethereum system that says i'll be i'll take this token for this price and then 0x standardizes that and broadcast that to all the other order book managers but those people don't have to be on ethereum so 0x is actually technically very blockchain agnostic and this is just also a smart business decision for those that are trying to maximize you know return or maximize value to their token right so anytime 0x can facilitate trades capture some fees and with the other thing that this does it this allows the free market to express itself and so i'm not going to put on my ethmaxy hat be like oh well you know

they're just doing it for the you know just for to be the crosstrain like no this gives the opportunity for the market to say to xerox hey you know maybe there's a lot of volume on polka dot but not very much on solana like that can al this will allow xerox to discover that or maybe there's a lot on solana but not very much on optimism like this is how xerox discovers what the market wants and so this is a good thing it's just yeah to discover that it wants to be on ethereum that's just what it's going to discover in the long term there it is there's david hoffman he's come back welcome back david yeah you know um look uh xerox is an aggregator like fragmented liquidity is good for them right of course they're gonna try to be everywhere there's some sorts of

liquidity we saw a one-inch do the same thing one inch is a d5 protocol aggregator as well of course they made a big show of going to binance smart chain but they got to binance smart chain in a hurry so not surprising at all as you say david we got to talk about something with nfts and releases because nfts are always releasing something new but this is a kind of a cool project ether.cards it's been a long time in the making what are we looking at are these just kind of nft art cards what's the what's the coolness here i mean like i like the design but this card is uh 55 eth here i'm not sure that i'd spend my eat on it but what are we looking at yeah i actually don't know but everyone else is talking about this so that's why

we're talking about it these designs are super sick uh and so that's pretty cool and so yeah uh it's i wish i knew more about it but we're putting it into the roll-up because everyone else is talking about this uh so there's some there's some deep ethereum history going on here so um texture okay anthony he's got a feature here uh there's just some like i don't know how these designs came to be but something's going on here i don't know what but the designs are dope and so that's what's going on it looks awesome and uh you know with nfts there's no rhyme or reason to which ones blow up or not it's just kind of uh pure meme at this point so this seems to be catching on pretty cool stuff all right david um let's get to news what is going on in the news we got to start with a

macro um you mentioned the stimulus checks early on the stimis are here what happened with the stimis um the body administration and of course democrats in control of congress approved a 1.9 trillion bill you know what's crazy is um a lot of this of course is uh th this is this is different than some of the quantitative easing type monetary policy decisions this is what ray dalio calls um monetary policy three mp3 which is like fiscal decisions those are congressional decisions uh actually push out money to the people they control the money printer and that's what's going on it's basically uh this is uh helicopter money

directly to the people so people are getting 1400 dollar checks i know you said this before is last time you've seen this of course this isn't the first time we've seen this in in the covid era but the last time we saw this we saw a big inflow into crypto into coinbase specifically and this is a headline here from market watch americans are ready to pour 40 billion into bitcoin and the stock market as stimulus checks arrive survey so they're just asking people like what are you gonna do with your money yeah yeah and they're like what else am i like so we're gonna ape into bitcoin that's what i'm gonna do let's just say there are a lot of people who need these stimulus checks so we don't want to to discount all of the people that are

using this to actually like pay uh pay for things that they need in their lives and do what they were supposed to be doing which is boost the economy yes totally but there are also a lot of people that are getting these checks that that don't and what are they going to plug them into what are you doing well just tell us what are you doing perhaps might be aping into ether there's david again well so like i mean what about what about friend groups man like so um what are you what are your friends doing do you have any sort of informal i guess surveys yeah no in all seriousness uh i'm i'm trying to be a good citizen by consuming more restaurant food that is

trying to innovate and serve takeout in a way that they weren't really supposed to and so that's what i'm trying to do with my seamless tracks is going out and trying to patronize businesses that are having a tough time generating income but are trying hard to do that and so there's a lot of restaurants in my local neighborhood that have figured out how to make takeout work that they that weren't really a previously a takeout restaurant and so i guess that's what i'm doing with my stemi checks is i'm eating restaurant takeout food that's kind of more price highly priced than what i typically would pay for well you know what's crazy here too is david i'm sure there are a lot of americans that are doing that there are also a lot of americans 40 40 billion worth or so that are just going to plug it into assets

because they have nothing else to to do with it um and this is like this is part one of two that's coming from the biden's administration this is kind of the uh the rescue phase but there could be another three trillion dollar bill that comes down the pipeline sort of a yeah sort of a recovery part right so this isn't necessarily the end of the money printing either there's like a tsunami of treasury issuance that we might see here in the near future but you know what's the disturbing thing is this graph dude right so this is um us household net worth we are at we are at record levels of u.s household net worth and that sounds so weird because we've just gone through an

economic downturn like a year in covit so how could this be we're at now to 130 trillion dollars in u.s household net worth um it's not being distributed it's not evenly distributed across the people but americans are on average richer than they ever have been which is crazy but what would happen if instead of using dollars to gauge the value of net worth we use something a little bit more stable and perhaps less political which would be gold as a good metric and i don't think that the network the average net worth of houses in gold terms would actually be all that crazy i think what i could make

an argument that what we're actually seeing here is the devaluation of the dollar yeah and the only way to keep pace with the uh value of the dollar and asked so again we don't have necessarily cpi inflation that's hard but we do have asset price inflation the only way to avoid that was to buy stuff you had to buy assets you had to buy stocks you had to buy crypto you had to buy you know real estate and that's how you've kept price with inflation but what it does david is it creates this massive inequality that i think um the world's gonna have to reckon with it's one of the major problems that we're facing here now yeah absolutely uh and and this is why i'm always so on the fence about ubi

because ubi is great because it puts more hands into more people and so it's using the money printer to get more money into more people's hands when previously it was just strictly a very tight cantillion effect where only the rich would get access to the upside of the money printer now we're giving access of the upside of the money printer to as many people as possible fourteen hundred dollars for all adults but again like the us dollar is a global reserve currency and and the the us adults are only as very small fraction of the global global population that uses the value in the dollar to transact so it's still not being all that dispersed yeah absolutely and ray dali would say this is just the the last part of a late

stage debt cycle happening where where citizens are are getting the funds directly through fiscal stimulus david let's let's move over to crypto stuff bitcoin first morgan stanley is now the first big u.s bank to offer its clients particularly wealthy clients access to bitcoin funds this is another bank capitulating on crypto and jumping aboard the crypto bus i think this is actually kind of the the first big major bank to give direct uh on-ramps to bitcoin and so this the important thing is that morgan stanley is building out three funds that are all uh exposure to bitcoin and importantly customers of morgan stanley when they

send money into this fund what happens is that morgan stanley goes and buys bitcoin on spot with it right this isn't this isn't um cash settled futures this is this is direct bitcoin exposure and so any interest can get funneled through morgan stanley and ends up being buy pressure for bitcoin um and so that's that's pretty cool that's very unique and the the thought the bullish thesis behind this is that this is going to make many other banks goldman sachs uh you know all these all the other banks that i can't rattle off right now they're probably all thinking it's like well morgan stanley's doing it now we got to do it because they did it too and so if we want to be able to offer very similar services to our customers we're also going to need to generate very quick strong pipelines between our

customers money and bitcoin yeah that's crazy here is this this quote uh morgan stanley considers it suitable only for people with aggressive risk tolerance who have at least two million in assets held by the firm it's too volatile otherwise is what they're saying yeah there's some gatekeeping going on but if if that's what they needed to do to get compliance happy with this to get this out the door fine whatever yep absolutely all right michael saylor bought some more bitcoin another week goes by another michael sailor buy he added 262 bitcoin this time 15 million the the weekly dollar cost average from michael michaels yeah i guess we'll report on that every time um this is cool though this is

breaking is this company called metoo this is a hong kong listed company i'm gonna say me too me too incorporated they've purchased another 16 000 eth and another 386 bitcoin that's almost 30 million eth and just over 20 million bitcoin uh so more publicly traded companies adding crypto to their balance sheet what's interesting about this is this company decided to buy more ethan bitcoin 57 uh in ether as part of this this 50 million dollar purchase and like 40 43 in bitcoin what's your take here and this is also the second time they've done this they did this last week too and so they're also just like

microstrategy where they filled their bag and then they filled their bag again and like now this begs the question are they going to fill their bag the third time right and anthony says oh no i think i may i think we're just repeating this exact same take and i'm going to do it again for on this week and anthony suzanna had a really good take where you know there's one thing to have all the american s p 500 companies fomo into bitcoin because of microstrategy but what about the rest of the world what about all the other companies who are trying to protect their treasuries all the ones all the companies in japan yeah china you know korea like all the african companies all companies all companies everywhere are going to feel this fomo to get into crypto assets to protect their treasuries and what this company me too

is doing is again they they filled up their bag interestingly like you said more ether than bitcoin and then they did it again uh and so this is a this is a game of chicken that some some people are really really uh taking advantage of by moving really really early hopefully it works out for them david not too long ago we just had a conversation with ryan selkis from sorry uh you know great great great folks at missouri but ryan was claiming that corporate treasuries of publicly traded companies wouldn't buy ether it's just bitcoin bitcoin bitcoin and that's like we're like three months later and they're already buying ether right like this is something that that we've predicted is bitcoin is the gateway to ether so

the way to front run this bitcoin buying that michael saylor is doing is for publicly traded companies to go buy ether i mean i think that's going to uh to catch some steam too and uh i'm you know i'm not sure if it'll happen internationally first or uh and then later come to the u.s but it's it's starting to happen now yeah that's exactly right um david why earn v2 they they wiren is sort of a d5 money aggregator in itself they launched their yield aggregator they launched their v2 and now it's past v1 in terms of uh value locked inside of the protocol what does this mean for us yeah and also interestingly uh yearn v1 also still has

plenty of tvl locked up inside of it so the aggregate is is pretty fantastic and so you know there's been some bearishness i think with with urine lately due to like government decisions that people felt unsure about um but then there's also this other side of people that are extremely bullish urine in the long term uh and i think we are starting to shift from a consensus of like kind of bearishness on urine to like oh yeah no urine is urine is gonna be the gold standard for uh yield aggregation i don't personally have an opinion on this but i'm always happy to see uh tvl and and defy apps go up and to the right so nice job you earn uni is rolling out its grants program they they funded 23 community projects this quarter as part of 2021 you know

what's crazy about this is the absolutely massive balance sheets that some of these d5 protocols have so uniswap alone has something like 14 billion in in uni tokens in their treasury under management right like 14 billion dude billion billion i mean how fast do you have to give money away to grants to like to like get through that and by the way 14 billion bids and uni tokens right so and growling like that could easily be 30 billion right in a few weeks you know um it's good that they're they're they're doing this but what what's your take on what are these d5 protocols going to do with these massive treasuries david

they're infinite it's going to be infinite funding infinite funding and especially if the fed federal reserve keeps on printing dollars they actually won't even really need to sell all much of those uni tokens because they're going to go up in us dollar denominated prices faster than they can spend those things it's gonna be crazy you it's literally infinite funding for the rest of time for uniswap this is the other reason we keep harping on every single week usually toward the end of these episodes that like if you're interested in getting a job in crypto like if you can add something to this 14 billion dollars for you you can probably get some of that all you have to do is give something to the protocol that it wants what does uniswap want i mean defy is definitely much better funded this cycle uh than

any previous cycle so if you're looking to get involved in the crypto economy and the d5 economy specifically there has never been a better time unit swap has infinite cash as a listener who likes cash you should understand that uniswap has an infinite amount of cash and if you want cash maybe you should go talk to uniswap you know what i think they're also figuring i think all of these dials with massive treasuries are trying to figure out how to award them back to things that the protocol wants how to how to manage that process so they're not necessarily going to be able to turn it all up now it's going to take some time but this this is the uh the spigot uh that that's starting to happen with this grants process and i think

it'll it'll just expand moving forward um david let's talk about a kind of a hack a hijacking maybe is the better word so pancake swap which is on finance smart contract chain and also cream finance had a dns hijacking what happened here yeah so they got their front pages hot swapped with a malicious one and so this is just another monster in the dark force that users should be aware of and so the the cream finance and the the pancake swap front ends when you went to the website they would show you a fake page that asked you to input your seed phrase or your private keys and naturally educated bankless users will know to not ever ever do that you don't give up your private keys that's

the number one rule uh and so if you if and this can be this can happen to any defy app website so this is something to take note of don't put your private keys into any website ever unless you know what you're doing and don't put it anywhere anywhere and if so if you ever come across a defy app and it says like input your private keys double check go to the team's discord like you know make sure you make sure you know what's going on this is also don't stand by the monster this is also an example david if crypto does solve this like an ens domain cannot be hijacked in this way dns domains can.comscan.orgscan.nets can but not a dot eth address uh so that's something that can be improved on

too nft stuff google searches for nfts are booming david we showed this in the state of the nation we should show it here again this is interest over time on google searches in yellow is eth in red is defy in blue is nfts look at this this looks like escape velocity to me this is this is the kind of chart and by the way if you can't see this if you're listening on the podcast nfts are probably uh triple right they're they're triple eth and they're probably quadruple or more 5x or so d5 in terms of search terms this is nfts escaping outside of the crypto bubble that we're living in and reaching mainstream i think that's what we're

seeing here david any thoughts yeah exactly right this my mind just goes back to andrew steinwald who said that nfts are going to be orders of magnitude more than d5 and when he said that back in september of 2020 i was like oh no it won't and uh turns out he got that one right yeah for sure check our episode with steinwell that came out earlier this week for uh for more info on that it was a great episode um speaking of nfts and memes bad luck brian he sold this good luck brian maybe he just did an nft for 36k this is the the the famous bad luck brian meme um yeah it's like it's like it's been everywhere but so internet culture did actual bad luck brian because anyone

could create this anyone could create this uh nft right but did bad luck brian actually create it and sell it yeah bad luck brian actually did create it and sell it and that's why it went for 36 dollars and that brian's 36k right 36 000 yeah brian's name isn't actually brian i think if you scroll down it's something else but yeah the internet just named him uh brian for some reason yeah his name's kyle his name's kyle so kyle the guy the guy in the yearbook photo uh sold his that that meme for 36 thousand dollars and again this goes back to that same comment i made about the nyan cat that got sold for 300 eath it was the original artist made a brand new gif that was exactly the same looked exactly the same but it was brand new and he nft

that and the reason why it went for 300 eth was because the original artist has the credibility and the legitimacy to issue the nft and since kyle aka bad luck brian is the actual person in the photo and he owned that photo because that's his yearbook photo he had the legitimacy to mint this nft and sell it and it got sold for 30 36 000 people think this is crazy but it's not crazy i mean think of like think of like a the difference between an autograph signed by a celebrity a real autograph versus a like a copy of that autograph on a piece provably only have one autographed ever signed ever right i mean we do this in the physical world all of the time this is just porting that to the digital world

authenticating an nft from a private key is the new autograph the hot take here is that this proves that you can capture the value of a meme with an nft that's what this project wow there you go uh that's what elon musk is trying to do he's trying to sell a song about nfts as an nft what is this this is so meta oh my god this this tweet got almost 230k likes um this is his nfl i wonder why nft search terms on google are skyrocketing above and beyond defy i wonder why that happened because the world's richest man uh tweeted out a which is a banger of a song ryan can you play that audio because it's a banger of a song

yeah let me play it [Music] [Music] it's a banger here so would you buy this david at the right price [Music] wow okay that's uh yeah good song definitely worth something but then he says this right under it this is probably like a day later actually it doesn't quite feel right to sell this we'll pass yeah we got trolling us the whole time i'm pretty sure there must have been crimes that uh made that beat uh for him his wife yeah nice and she's definitely in the nft scene so look it won't be long

before he actually sells one um this is interesting while we're on while we're on tesla news what's what's tesla are they renaming their executives yeah elon musk again taking the meme to a full new level elon musk is now uh what is his title uh techno king of tesla and then also the cio chief investment officer i think no cfo chief financial officer is now the master of coin which perhaps is an allusion to bitcoin yeah that's uh it's hilarious i mean no one understands the meme game like like elon musk at least from the traditional world uh he's really masterful in fact some people are arguing that like tesla the stock is a meme in and of itself which uh you know we're an amiibo it's

very bullish it's bullish that's what david says all right this is uh scott lewis on the nftx protocol he says check out the power of the nftx protocol what are we looking at here david yeah we are looking at what very much seems similar to an amm interface and there is a an interface here for buying basic crypto punks with eth right and so what's happening here is uh scott is going into this uh i don't know where where this is um or this is this is nftx of course is the nftx protocol and he's putting in a 21 ether to buy a basic crypto punk and what the point of here is that this is fungibilizing the non-fungible tokens of

crypto punks right and so he's just saying i don't care what crypto punk you give me give me 21 ether worth he just put 21 ether into the into the interface and then nftx says okay you want to give me 21 ether i will give you one crypto punk that's how much one crypto punk is worth so it's actually generating liquidity across these non-fungible tokens making them more fungible and this is kind of where i think nfts can really mark as whether or not they've hit escape velocity or not is whether they are sufficiently liquid that something like this from nftx can be established where you can just put in money and say like don't care what you give me just give me something and outputs an nft that is equally valued as the rest of the nfts

in that set so that's pretty cool yeah it's like it's like saying like i want to buy modern art and then you just like in a liquid way you're able to get modern art it's it seems kind of weird that that we're um we're taking non-fungible tokens and and converting them back and making them fungible but i think the reason is what you said is it's liquidity we want liquidity on these things we don't just want sort of a an ebay-like bidding auction process we want insta cells we want liquidity for them and crypto punks seem really well suited to this i'm not sure that other nfts are as well suited uh to this yeah do you have any takes there um yeah it's it's nfts that are combined in sets i think is probably where this start i'm

sure more financial engineering can expand this out um but the point is is this 21 ether which is a lot of money is only moving the price by one point six percent that's wow i didn't even see that crazy very cool cool stuff going on in the nft space stuff that's not really possible in the traditional world um david let's talk about this on the regulatory front the cftc this is the commodities and futures exchange they're coming after binance for uh providing cftc regulated products to americans particularly um anything anything going on here this is a in a report that investigation is is going on

so not necessarily a um any kind of conviction or but what's what's happening here right so binance inherently is in a legally gray area and that's why they operate they are they don't they're not domiciled anywhere they try as a company to try and exist as only on the internet as possible and it's because they know that what they're doing is not complementary with nation states and binance specifically doesn't do a very very forceful job of making sure u.s citizens can access binance everyone knows that you can just go to the bind the non-us version of binance under a vpn and you won't be asked for your kyc information which is a big no-no

because they are serving customers with financial products that are regulated by the u.s or three-letter organizations that pisses uncle sam off uh and so this is part of the story of whether or binance can keep itself protected from the nation-state uh this is going to be i think a very long drawn-out story um where you know they're not as egregious as bitmex they're a little bit more uh a little bit more responsible than bit mix and they are offshore and so they're protected they're not domiciled in the u.s and cz i don't think even goes to the u.s anymore but this is a story of like how close to the sun is binance flying and are they flying close enough to get caught by us regulators you know what's interesting here is like

i see some people in crypto kind of cheering the cftc on and then other people saying like why are you cheering on a regulator i thought this was about like free markets and and sort of anti-nation states uh anti-regulation but do you know what look all of that is almost not the point right with defy you you almost exist extra regulation outside of the regulation i love um when a uniswap you know marks down it's its jurisdiction i saw a list of all of these exchanges and their jurisdiction is the internet it's just code right planet earth you can't regulate open source code that just lives inside of a protocol so whether you're pro free markets or pro regulation and consumer

protection none of that matters um i think that the the question that that matters is is are crypto banks uh going to be able with with physical presence in meat space jurisdictions are they going to be able to exist outside of the nation state law and the answer that david is probably no which brings us to our next point finance hires former u.s senator to help navigate regulations i wonder why they're doing that they know that this battle is coming right and so they they know that they are doing things that are not aligned with the interest of the nation state and so they are getting ahead of the issue that's what that's what's going on absolutely and it's uh it's all back to kind of like crypto bank plus uh politics equals

kind of the the overlords of our existing uh system so it doesn't yeah ben there man doesn't make me feel comfortable uh let's let's bring on defy um all right why recent developments in canada suggest a bitcoin etf is coming soon to the us that's the headline canada's getting some bitcoin and even ether etfs i i've heard some people in traditional finance say that that canada is like a great testing bed for uh us um financial products so like there you go america's attic america's upstairs america's hat um and uh maybe that's the case here so like if canada's doing it and canadian citizens have access to these products like does that not erode the argument

that us and americans aren't sophisticated enough to be able to handle a crypto etf well every single day that there isn't a bitcoin or ether etf uh starts to be it moves that issue moves closer and closer to the realm of a political decision about the value of the us dollar the canada doesn't have this disinterest between behind listing a bitcoin etf because the canadian dollar is not the global reserve currency of the world if it was that would be a different relationship between canada and bitcoin so maybe that's why that's going first um but like as we know the bitcoin etf is long overdue and every single day that it isn't delivered is another day that there's a political statement being made that the united states does not

have the interest of bitcoin and instead wants to protect the interests of the dollar that's interesting because the the sec specifically which would give the stamp of approval on that they're supposed to protect the interests of the retail investor which is not even in the jurisdiction of u.s monetary policy i'm not sure why they're holding up is a good question for for hester pierce although i know if she could she would have that approved um david let's talk about this last news item bill gates is worried about bitcoin why is he worried yeah this thing this issue just does not seem to leave the bitcoin news cycle so we've included it it's about the climate uh proof of work is climate is economically expensive and economically

expensive things ultimately involve impacting the climate proof of work as we know doesn't do good things for the climate it's extremely resource consumptive and things that are resource consumptive especially when things are strongly resource consumptive ultimately impacts global warming and the climate and so people that are very climate focused won't like this and while there are very strong arguments about why bitcoin's energy consumption can in the long term be green uh you have to do a really strong job trying to make that argument for the rest of the world because that argument is usually coming from bitcoiners who want to see bitcoin succeed not from non-bitcoiners who are still on the edge of things

non-bitcoiners who are still on the edge of things we're going to see bitcoin's energy consumption and say that that doesn't fit in the world that we are trying to create in the future um and so i actually think that bitcoin the the climate change conversation around bitcoin is actually one of the biggest threats to bitcoin that bitcoin has ever faced i actually think you're right david and you you know the way to completely defuse this threat i i have it i have an idea proof of stake my friend proof of stake so if your engine doesn't consume any carbon whatsoever any energy whatsoever yet you can produce a sound money maybe even an ultrasound money as a result why do you need proof of stake that's the spicy shake spicy take

we'll get there soon uh let's talk about other takes for the week we're on the take section my friend so here's uh here's another spicy take now one of the interesting things about eth and i know you guys are kind of ethan's money sort of value um the the the number of addresses with a couple hundred dollars worth of uh of heath is increasing at a faster rate right now right so we kind of we believe that um eth is becoming kind of this store value for the people and bitcoin is becoming this store value for institutions all right david who is that speaking yeah that was nick from the one confirmation guys uh nick and richard which we had on the podcast this monday what nick is talking about is he's talking about the number of ethereum

addresses that have over a hundred dollars worth of ether is going up into the right and specifically that number is increasing at a faster rate than bitcoin and so we are the in if you go on and listen to that podcast which everyone should listen to it was a fantastic podcast nick talks about how he's seeing more and more individuals use ether as money inside of ethereum and in their own personal finances and then institutions are using bitcoin as their store value crypto asset right and so there's this discrepancy that nick is describing behind individuals and people the ether is money for the individuals and for the people yet bitcoin is money for the large-scale institutions which i think is a pretty interesting uh dichotomy between what these two assets are trying to do yeah absolutely it's it's a great

take and i think he's backing all of that up with data and look the the nft market is one example of that so the currency for nfts right now for creators and artists is ether it's not bitcoin that is and they're fans that is a money for the people so we'll see if that continues it's super interesting i do think ether is also becoming institutionalized so maybe it can be a little bit of both but it's nice that it's coming to the people first yeah but like like i've been saying on the banquets program from day one money is a bottom up by the people chosen instrument and so when i see more unique humans choosing the same money that makes me optimistic i want to be where the other unique humans are

yeah yeah exactly well said ryan this is your take you want to you don't want to hit me with it yeah so i i tweeted this out there are three types of people in crypto the first type is tourists the second type is mercenaries and the third type is settlers so tourists we see them every bull market david and uh then they go away in the bear markets they just come into this space fair fans that's it then then we see that this class of people who just do whatever makes the most money right so they're mercenaries profit maximalists these are these are traders these are um people who will just like don't really care necessarily to to build things and by the way i don't i

don't blame them there's always going to be mercenaries and they definitely play their part and so do the tourists and then there's the settlers and these are the people who are here to actually make up a home here like homestead basically settle and build new lasting economies the digital land this new infinite white space is their home i think it's just important that people know that there are all of these different actors inside of the crypto ecosystem with different time horizons the tourists are just here to make a quick buck they don't necessarily understand even what they're buying does number go up or not if it does i'm happy if it's going down i'm out of here i'm back to the traditional system the mercenaries like they're not necessarily here to build

something uh lasting so these are more short-term game players not long-term game players it's the settlers i get most excited about because we you know as we say so often here david we're really creating this new parallel economy and this new digital land and so we need people to not only come here but actually stay and build things here and suffer through the the you know the the bad weather and the in the bear markets and you know and the pain and everything that that uh that comes with crypto as well and we need that in order to build something sustaining i do think that we're building a little bit of that in uh in bankless and um you know that's that's those are the communities i most

identify with but it's important for folks to realize there are these three different actors and players inside of crypto yeah this is a really good take and i would say i would add on to this where like you actually when you come into crypto you progress through these stages right you start as a tourist for like oh number goes up i'm here for the money and then you kind of understand that you know this is something real here and then so then therefore you stay for the industry but then there's the final stage where you are here for what i call the political movement or the social revolution which is people that choose to settle here because it's better here uh and this take also reminded me of this part in the sovereign individual which is on the bankless reading list everyone should read that book and it talked

about how um armies back in like the the 14 to 1700s armies would you know would fight each other and there would be the mercenary armies that would be recruited by some king to go and invade the land of some people that lived on the land and while these invading mercenaries could theoretically be more well-equipped more funded more powerful the settlers often ended up winning no matter what because they had something to lose that they valued and so they fought harder with and they fought with more intent rather than just being a brain dead mercenary and to me that is the difference between proof of work and proof of stake where stakers are the people that live by the protocol dive right by the protocol they

believe in the protocol so you are rewarded in proof of stake you are rewarded with a currency that you think is going to maintain itself for the rest of time mercenaries is there with proof of work you are just recruiting hash power and so there is some alignment between like proof-of-work miners but at the end of the day proof-of-work miners believe in silicon not in btc the asset and they are selling btc assets so i think this can be extrapolated into the differences between proof of work and proof of stake yeah you're right there's a lot of important models here actually it's maybe deeper than i even you know meant it in the tweet but like this whole conversion from mercenary race uh the mercenary securing the network to settlers securing the network that actually happens with proof-of-stake uh

and uh we've we've never seen a large-scale monetary system secured by settlers um i know we're going to get to that when we get to what you're excited about but before we do one last take here david this is uh back to what we were saying about this land of opportunity that is crypto right now and that is defi right now can you talk about this tweet from from anthony cesano yeah this is anthony yeah tweet from anthony suzano he says quitting my quote unquote safe corporate job to join a d5 startup set protocol in mid-2019 was both the best and riskiest decision i've ever made for those who are around in 2019 you'll know just how fringe and niche defy was at the time and it was in no way a sure thing and then he finishes

up with no regrets smiley face no one i've i've never heard of anyone like quit their job and move into defy and be like yeah i regret this decision no one regrets coming to work in crypto so this is your weekly call to arms why aren't you finding a job in crypto yet since the last time that you listened to the weekly roll up i told you to get a job and then the time before that i also told you to get a job so they were on three weeks in a row of david saying get a job why haven't you gotten a job yet have you been done looking go why haven't you moved into the discord channels why not why not get a job why haven't you quit your job yet figure out a way to work in defy your weekly lashing from david hoffman

telling you to get a job in crypto right so like there's definitely we were talking about earlier about all of this there's infinite money here there's a ton there's a ton here and there's a lot we need to build like we're just scratching the surface here it is definitely uh an exciting time i will say one thing though he he said it's the best decision right but he also said it was the riskiest and there's an element of that to you because i have seen david uh people come to crypto during the bull run with the expectation of this money good times forever but not fully equipped to deal with the volatility of the bear market and and by the way like these things happen in fractal cycles so

we're in a bull run right now but we are going to get a a bear run at some point in time and like you have to have the the fortitude and the the foundation in place uh to persist through that when everyone else says that crypto is is dead it's never going to recover it's never coming back and like you feel that uh in your psychology and you feel that that mentally that can be a hard place to be too especially if you have a lot of your own assets in crypto and uh they are dropping um that like the floor is falling out on those too so it is also a risky decision in some way so you know i i don't disagree with any anything that

you're saying here but um there's an element to you that this is more exciting there's massive upside but it also as we always say this is also the wild west it's risky yeah everyone needs to calculate their own risk like i don't have a wife for kids right so i'm a pretty lean individual i can ape into a new industry without thinking about repercussions to anyone so i don't have to calculate that but i also got into crypto in february or march of 2018 which is already on the other side of the bull market and that actually ended up working out for me i ended up being okay even though i was very late into getting a job in crypto because the bull market was on the way out it still ended up working out and the bull market is nowhere near on the way out and so you

still have plenty of time but you know don't sleep on it get it done yeah yeah and the other thing about uh bear runs is man they're they're great for forming communities and like making friends right and like figuring out your niche in the space uh so there's definitely some value there you just have to have the fortitude to persist through david we are going to get to what excites you what i'm excited about to you but before we do we want to thank the sponsors that made this roll up possible 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 quenta.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 eth and earn fees from synthetics if you want to live a bankless life you need to get a monolith defy visa card monolith is both a one-two punch of an ethereum smart contract wallet as well as an accompanying visa card that lets you spend the money that you have in your ethereum wallet wherever visa is accepted it's really a fantastic tool that lets you use ethereum for what it does best which is holding and managing your financial assets but also keeps you

connected to the rest of the world's payment rails monolith also offers on-ramp services for getting your fiat money into the world of defy so it's trivial to top up your monolith card if ever you need to and your deposited money goes straight into your non-custodial wallet so your money is never held by a centralized intermediary because your monolith wallet is native to ethereum monolith helps you transcend both the legacy and the crypto worlds because the money that you hold in your monolith wallet has the power of d5 behind it swapping assets on unit swap or earning yield in d5 is at your fingertips but with monolith so are the groceries at your grocery store or the coffee at your coffee shop go to

monolith.xyz to sign up and get your monolith visa card today all right david let's get to it what are you excited about this week my friend oh i'm just excited about the crypto's best meme ever which is east is ultra sound money pass it on tell a friend tell your mom ethan ultrasound money oh your mom it's the new yeah yeah what's mom gonna do about that she's gonna understand that ethan's ultrasound money ryan well what okay so what is ultrasound money david well first maybe we should talk about what sound money is and sound money is money that holds its value over time and ultrasound money theoretically is one that does an even better job at

that and what could that possibly mean how could you get even better at holding your value and bitcoiners understand this as uh you know in a world of infinite printing where michael saylor is printing uh micro strategy equity to to sell dollars which are also printed to buy bitcoin it's unprintable making bitcoin very sound money is a good reservoir of holding monetary value across time ether is ultrasound money and ultrasound money is what you get when you introduce a mechanism into the native money of an economy that makes that native money of the economy scarce as that economy gets bigger and bigger i'm of course talking about eip1559 the magnitude of the ethereum economy gets relayed into the scarcity

of ether because of burning transaction fees also what's good about ultrasound money is ultrasound money that isn't issued more than it needs to be to secure the economy and so under proof of stake as we were talking alluding to earlier proof of stake needs to issue the least amount of money possible to support to fund security because it's inherently going to ease bulls who are inherently long ether and are interested in accumulating as much eath as possible and so these bowls will take the lowest amount of new ether issuance as adequate security for ethereum so both we have two mechanisms which reduces the issuance of ether to the lowest possible rates that also still funds adequate security for ethereum and then we have

another mechanism which makes ether more scarce as it tracks the size of the ethereum economy and and what ultrasound money is when you integrate these two things which are fantastic mechanisms you create a shelling point for a unit that can hold its value over time the the magic meme power that comes in because of these two mechanisms is the the thing that makes ultra sound which is the fact that everyone is going to realize that ether is going to persistently grow in value alongside the growth of the ethereum economy and people are going to want a piece of that and start to use that as money making eth ultra sound money stay tuned for the podcast episode dropping on monday with justin drake ultrasound

money again tell your friend tell your mom tell your grandmom now do you understand mom after david explained that whole thing what ultrasound money is i hope so if not um that look that podcast that we did people ask sometimes why we talk about eth so much and i think it's because we believe eth is vitally important for the bankless economy without eth at some stage without a trustless economic security backing the bankless money system we're not able to go bankless we also think that ether is probably the most underrated asset out there in crypto maybe one of the most important and perhaps certainly the most

underrated and i feel like david this ultrasound money episode that we did with justin drake which guys david mentioned comes out monday that is almost a culmination of of a lot of work that we've done but also a lot of the crypto economic work that ethereum researchers have done over the past few years i i feel like at some level if all we ever achieved in bankless was producing that episode it will have been worth it that's how strongly i feel about this this episode and i know you were super excited after we recorded and i was like that's a great episode you're like it's the best ever i listened to it a second time and i think that uh i completely agree with

you it may be the best episode i've ever listened to in crypto and i don't say that because bankless is awesome i say that because justin drake is awesome the analogy he went through to explain ethereum's economy its economic security is straight fire so listen to that episode tell your friends we are not over hyping it uh it comes out when if you're if you're a bankless subscriber you have it now on the early access feed if you're not wait until monday and check that episode out you will not regret it i think it is the episode to understand ether the asset um and also bitcoin the asset as well so

uh yes david etha's ultrasound money you're you're totally right justin drake is a one of a kind human in the sense that he is a fantastic bleeding edge cryptoeconomic researcher that also can communicate which is not found often with people that are deep uh have deep cryptographic technology knowledge like generally those things don't go hand in hand but justin drake he's both a cryptographic researcher who can communicate and use metaphor as well but also the fantastic extra large cherry on top is the guy understands memes and what the importance of memes are and so i was chatting with him on telegram about like how do we spell ultrasound money is ultrasound one word or two words do we hyphen it do we not hyphen

it how do we meme this into existence so not only is he delivering us the metaphor of ultrasound money but he's also helping us meme it into existence because money is a meme it's a shelling point if everyone understands ether to be ultrasound money then it becomes ultrasound money so tell your great grandma about it we're going back multiple generations here to spread the word yeah absolutely great episode man all right ryan what are you excited about today you know what david yours was so good i'm going to leave it at that i am excited that eath is becoming ultrasound money i'm excited about this meme which brings us to the meme of the week what are we looking at here heath

is ultrasound money it's an ultrasound of eve so for the podcast listeners what you can't see is literally an image of an ultrasound and there's a little eath baby in the ultrasound because he has ultrasound money this is amazing and i'm blown away by the amount of likes it continues to go up that this is getting so the meme is coming into existence well done justin drake we are becoming ultrasound money uh ethan's becoming ultrasound money david i think that's it man that was our roll up let's wrap it up uh last thing people should give to their git coin grants yeah that's right that's exactly right yeah git coin round nine is still going on and so if you have not yet downloaded uh downloaded uh paid money to or

donated it was the word i was originally looking for donated to your favorite git coin grant make sure to do so before the time runs out again outsized funding from donators to public goods this is a special time in ethereum we uh we this is when we donate to the things that we use because when we donate a dollar perhaps they get ten dollars or fifty dollars sometimes even a hundred dollars if you appreciate something in the ethereum ecosystem express that appreciation with at least a dollar donation on git coin absolutely guys and do not forget to fund ethereum's layer zero the social layer risks and disclaimers of course eth is risky so is bitcoin so is defy you could lose what you put in but we are headed west and you should get a job

on the frontier this is not for everyone but we're glad you're with us on the bankless journey thanks a lot hey 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