ROLLUP: Ethereum Burning | Penguin & Axie NFTs | Poly Network Hack | Infrastructure Bill (August 13)

Transcript

welcome bankless nation to this friday edition of the bankless weekly roll up another special edition with the substitute teacher of the bankless nation anthony cesano anthony welcome to the friday weekly roll up how's it going man hey mate i'm going good i'm glad to be the substitute teacher again you know that ryan is always slacking right like i'm always going to have to fill in but it's alright i get paid double time for this right yeah it's like can you imagine just like having a family in crypto just like what a guy who does such a thing because goes how he maintains like that i don't i couldn't do it all right for all the people without kids and vacations every friday weekly roll up we go through at the markets what's going on in the market what got released in the last week as well as

what's going through the news cycle and then we go through the ecosystem takes who has some good takes around the world of crypto twitter and then lastly we finish up with what david and anthony are excited about anthony you ready to get get going yeah let's get into it before we get into the show we gotta talk about pool together because it is summer time and it's all time to get into the pool if you don't know pull together it is a no loss lottery which means you put your stable coins your comp tokens whatever tokens that pull together accepts into a pool and then you have a chance to win the accrued interest that accrues weekly from everyone's collective funds so you don't lose your principal you might lose your opportunity cost of money but you

also might win everyone else's interest as well it's a fun no loss lottery on ethereum every single week roughly 50 to 60 000 gets awarded in usdc and that is just the usdc pool there is usually a drawing every single day of the week they have also recently deployed their polygon implementation where you can deposit tusd tether into the polygon pool together pool together pool and they are also rolling out their l2s coming soon in the future so check them out there's a link in the show notes so you can have fun in the pool all right starting with the markets bitcoin coming in at the price of forty four thousand eight hundred and forty two dollars started the week right

around forty three thousand five hundred anthony any comments on the bitcoin price i mean i think just generally the markets kind of trending up uh i think people are i mean it's funny because i see some people on twitter talking about you know a bitcoin dominance move and how bitcoin's going to like uh gain dominance into the s into the winter actually for the northern hemisphere summer ins for me like towards the end of the year because you typically see kind of uh i guess bitcoin dominance increase over that time but i'm not convinced uh i have a different opinion there maybe when we talk about the eighth price i can give my opinion on that absolutely there's always uh are those people that talk about the cyclicality of crypto markets and i think those times are coming to an end if they're not already over you too many

people talk about them too many people talk about the the cyclical nature of these things and i don't know bitcoin dominance have never really been very bullish on that particularly all right ether price starting the week at around 2 680 coming in at the current price of 3 130 hit a almost hit 3 300 earlier this week uh pretty much a straight line up and to the right all throughout the week anthony thoughts on the ether price yeah i mean it's it's just been funny to see like how quickly we've rebounded i think we're at 1700 only you know two or three weeks ago uh and we were pretty much almost doubled since then you know hanging around the 3100s right now and this is coming off obviously one five

five nine uh going live and people realizing that we're burning a lot of eight like i don't know why people thought that we weren't going to burn a lot of aid considering that the fees have been high i always thought that was funny like everyone was complaining about the high fees and then they didn't realize that we're gonna burn a lot of eighth because those fees were high so i think um you know people are finally real you know what you know what i mean that's just weird but um i think people are finally realizing that uh you know the one five five nine is in in fact burning a lot of eighth and it's not just the only thing um that's going to be affecting each price like over the i guess maybe medium term we've got the merge coming up you know nfts have

exploded but if you look at the the um the projects burning the most amount of eighth i'm pretty sure open c is at the top of the list when usually you would see something like unisop up there so we're seeing uh i think just eighth have like uh this positive price movement in part because of that but just generally like i mean the ecosystem ecosystem's on fire right now we're going to talk a lot about that but just to go back to what we were talking about before with the seasonality if people monitor the seasonality of these things i think uh crypto is very cyclical and is very seasonal but i think that's been a big part due to the fact that like it's all been speculative like 100 speculation for most of crypto's life whereas now we're actually seeing the the use cases be adopted in a really

kind of real way yes nfts are full of speculation but a lot of people are actually interested in them building cool new things doing a lot of different things there and and kind of like adopting this technology rather than just buying it for purely speculative reasons they want to be part of a community or whatever um so yeah i think the cydical nature over time over probably the next couple years um is gonna definitely change a lot um we're gonna see like definite changes in that behavior yeah the thought that these crypto markets are just gonna stay cyclical until like crypto takes over the world and over the universe like no that's way like patterns don't work like that over the long term what do you make of this uh very straight line from like roughly the 19th of july to where we are almost a

month later it seems to me ether has going on this like very straight up into this line up into the right line for the last almost a whole entire month do you is there is there anything to talk about there or is that just a coincidence i mean it it's hard to tell because some people call this like a complacency bounce where the price will bounce off it's if it's low after a big crash and no one will cash out and then you know it'll drop down again because everyone was complacent about this everyone thought that the bull market was going to continue and all these sorts of stuff couldn't that have been right here yeah i mean that's the thing like it could have been any of these bounces right uh to me this is just um so to me i think two things are playing out right

now with eighth price there's disbelief a lot of people are like you know wow we're already back over 3k how is this possible and there's a bit of complacency of people like you know we're back over 3k going straight to all-time high so i think the market's gonna do what the least amount of people kind of like expect and and that's probably go sideways from here for a little bit maybe um you know in the short term while uh kind of like people change from i guess like i think a lot of people are neutral right now rather than being like overly bullish they're just waiting for like a signal where they're like okay let's break out of this kind of like uh a range here let's go straight to all-time high and all that sort of stuff um but yeah it's kind of hard to tell with the short term but

i do think that uh as i was saying about the cyclical nature of things i don't know i think the four-year kind of cycle is like dead i don't think that's a thing anymore like really yeah the fact that it continued three times is already telling you that in my opinion that's already overextended in its cyclical nature all right moving on to the eth btc ratio we are at point zero six nine on the east btc ratio which is like i always say historically pretty high like always if we go back throughout the like the very beginning of like the whole ether btc ratio thing we are at always very high levels and we have been for basically all of 2021.

anthony anything to talk about here with the eth btc ratio maybe in the last like few weeks and months or so yeah i think the the cyclical seasonality kind of plays out here the most with eighth btc i don't think too many people trade this pair i think it's just good for looking at for overall sentiment uh around like bitcoin versus eth and and how their prices are going i think what's going to happen is you know i mean i don't think this is going to happen i'm actually curious to see what happens in that typically in q3 more so in q4 ether bitcoin bleeds like and it bleeds hard right it basically makes ethereans feel like [ __ ] for like all of q4 and then in late december early january typically explodes upwards again like there's that kind of like

bounce because everyone's kind of like um feeling really shitty and that's kind of like the typical place to bounce but if we if you pay attention to what's been happening with bitcoin and kind of like seeing the the change there i don't i'm not convinced that we're going to see this play out again like it's played out pretty much every year since ethereum's existed like since the 8th was trading but if we break this cyclical nature i mean you can look on the chart and see that it's played out every single year every single q3 q4 ether bitcoin has bled um you know since the earliest days then it's bounced after that um but like if we don't bleed now if if eth actually takes its uh you know if bitcoin doesn't bleed and it can either go sideways or keeps going up that will show the entire

market that there really is a real change and shift in how people are viewing eth as a standalone thing compared to bitcoin i think people more and more people are realizing that ethereum as a network does just obviously so much more than bitcoin does and we shouldn't be comparing the the two um you know in in lots of different ways so yeah i just think that if we do break that seasonality that is an absolutely massive break of of pattern and i mean that's breaking like six years worth of patterns so yeah it's a pretty big deal if that does play out there and the reason why i think anthony and i are focusing on this whole like cyclicality theme in the market section is that we see a lot of uh just excitement in the news cycle we see a lot of adoption and

there's a discrepancy between what this cyclical pattern of uh crypto market history would predict for the next quarter or so and what we are seeing when it comes to on-chain fundamentals and things just like in the news cycle and and the rate of adoption which is going to be something that we revisit uh throughout the rest of this weekly roll up so stay tuned for that but actually we're going to get to one of those subjects right now coming out of a business wire which is apparently a berkshire hathaway company a genesis q2 report shows decreasing bitcoin dominance and hedge funds diving into a d5 so this is one of the fundamentals that we are seeing that would disagree with the nature of the cyclical nature of the markets as we've seen so far

genesis a digital asset industry provider in digital currency prime brokerage released its q2 2021 market observations report which highlights major trends across institutional digital asset markets the report shows a significant rotation out of bitcoin and into ethereum and explains how clients search for yield drove activity across genesis throughout q2 man it's as if some of the core ethereum community members were talking about this for the past like year or so institutional investors institutional money they love yield and that they love the narrative that surrounds around yield and we all know that they were largely uh un

not sufficiently exposed to ether and overexposed to bitcoin because everyone started with bitcoin right when you only start with bitcoin you only have other places to go and when you see like the next step after bitcoin is perhaps this thing called ethereum and there's all these yield opportunities on ethereum that just makes a ton of sense to me anthony what are your thoughts yeah i i mean we've been talking about this for years at this point like both of us uh you know wherever on twitter on bank lists on on ether whatever it is uh but essentially ethereum just appeals to so many more people than bitcoin does like what you do with bitcoin is you buy btc and you hold on to it right there's not much else you can do with it um maybe you can put it in some kind of like uh uh centralized custodians to

earn a little bit of yield on it but a lot of the time they'll be earning yield on it by putting it into ethereum so it's kind of like ironic when you think about it like that so i'm not surprised to see this at all uh i'm i i've been a long-term proponent that i think bitcoin dominance is gonna fall dramatically from here and probably fall to under 10 eventually i think that the space is is much bigger than bitcoin it is even bigger than ethereum like i don't think ethereum is going to be the absolute kind of like um juggernaut and everything else will be like this tiny little thing i do think we're going to be in kind of like this i mean i guess people call it like a multi-chain ecosystem but i do think a lot of that value is still going to

accrue to ethereum right like ethereum as it's kind of like the base chain and and as this economic nexus that sits in between everything uh and from that point of view i think a lot of people realize that and so with especially with one five five nine in place now people are like well how do i get exposure to all of this well you know you buy each right you buy east to get exposure to everything doesn't matter if you know this defy app is hot one you know one month this deep app is hot another month or you know same with nfts you get exposure to the entire ethereum ecosystem by buying each and then with that eth you can choose to stake it or you can put it into d5 borrow against it you know and earn some yield on stable coins and there's an infinite amount of

things you can do with with ethereum uh and if you're trying to bet on i guess like a falling bitcoin dominance because uh you're betting on like the world kind of waking up to things like they find nfts well then you you kind of like buy atheists so i think we're going to continue to see this i don't think this is an outlier and and i'm just i'm very happy to see institutions finally realizing the value of each and ethereum absolutely and this is also backed up by the fact that ether had its first whole entire quarter having more volume on coinbase than bitcoin which is a pretty monumental milestone a whole entire one-fourth of the whole entire year ether trading volume is higher than bitcoins and as we all know in the world of crypto there is

a competition to be the internet money and money means liquidity uh and so seeing the volume shift from bitcoin to ether for a whole entire quarter tells us a new story about where the liquidity in this industry lies yeah exactly and i think it's interesting to see how dramatic the shift has been in only a year like a year ago bitcoin was 57 percent if ethereum was only 15 uh and now uh if you go back to the other kind of like screenshot um that i was reading off uh yeah yeah yeah when ryan does that to me and and and bitcoin is now 24 whereas ethereum is 26 then has not only been like a massive catch up from from ethereum and you can

see like the pattern it basically played out mostly in q1 and q2 um but you know bitcoins lost a lot of dominance to other crypto assets as well because other crypto assets over the over the last year have increased from 28 to 50 so obviously people are just like very very uh excited to to trade other assets that's very interested in trading other assets and atheists like the big i guess like one of the biggest beneficiaries of this and we felt that with the price as well with the ratio going up to like as i said i don't think many people trade eighth btc but either btsc tells the story and it tells the story of eighth dominance increasing while btc dominance decreases and then we also have this tweet coming out of uh frank shaparo from the block uh institutional demand for eth has

surged and it's pushing fidelity and naidig to expand their btc-focused offerings nydig which is is known for one of the biggest bitcoin funds ever and it's one of the reasons why so many commercial banks can tap into bitcoin via nydig nydig which bills itself as bt for btc first has quietly been offering eth custody to an increasing number of clients plus fdas could offer east services by q4 or q1 2022 so this is kind of like this while there was so much going on this week with the whole like regulatory tax stuff the penguins there's been this underlying story of just like institutions quietly rotating and finding infrastructure and rotating into

ether exactly uh yeah i mean i i it's funny like i responded to frank's tweet there saying like it doesn't pay to be a btc maxi shop and it doesn't right you you eventually have to pay because your customer demand is so high there's revenue sources elsewhere why not go them go go to them all right turning now to money locked in d5 we are coming in at 79 billion dollars locked in defy which is about roughly where it started a week ago but has been a lot higher where than it has been all throughout july so really coming back into the that high 70s low 80s range which again uh we i believe we capped out at 88 or 90 billion dollars locked in defy and of course the d phi pulse index coming in

at 390 dollars starting the week at around 350 dollars peaked out at over 400 415 and then we are currently at the price of 390 dollars anthony any comments on money locked in defy or the dpi yeah so the the money locked in d5 measured in usd is going to trend up based on the market right because a lot of it is a thought of it is bitcoin and other kind of tokens so obviously it's going to go up and the market goes up um but i think deep phy you know the last i mean maybe a couple of months has taken a backseat because nft mania is kind of what everyone's talking about but d5 is quietly building in the background there are a lot of things going on and it's not going anywhere and i think we're gonna see like a d5 renaissance happen

over the next few months especially as these layer twos go live and more and more people kind of like i can play with these things uh i think we're definitely gonna see a resurgence here and i wouldn't be surprised to see 100 billion plus locked in d5 uh very very soon yeah that will be a fun day to uh to be in d5 that's for sure you can definitely see that number be tweeted out on twitter if you don't want to miss it because there will be a race for all the twitter influencers to get that first hundred billion locked in d5 we all know it's coming uh all right moving on to the dpi ether ratio coming in at point two one two at six a little bit below my point one three call but again not all that far away uh it is below the call i will not i

will not deny that but uh anthony do you have any comments about this dpi ratio yeah i mean it doesn't look so hot so so i have a i have a thesis at the moment that i i'm wondering if it's gonna play out it seems to be playing out already but i think that in a post one five five nine world our performing eighth over the long term is going to be very very hard uh especially um you know maybe like the blue chip d5 things and stuff like that things are already kind of large cap it's going to be very hard for them to outperform either the long term i believe because of the fact that all the activity generated by d5 is going to feed back to 8th anyway because we're going to be burning 8 because of it so um you know

and a lot of and and because we have so many d5 tokens now i think buying the d5 pulse index is still a really good idea of people who don't want to sift through all the all the default tokens but if you kind of like look at it from the point of view of maybe like the complete normie who sees everything going on they're like okay well you know there's d5 nfts like i don't know what to buy like what do i buy and then they think to themselves well this is all happening on ethereum why don't i just buy eighth as like the shelling point index sort of thing for the entire ethereum ecosystem and i think that's going to be a big reason why why over the long term say like you know a year plus it's going to be very hard to outperform uh just you

know holding vanilla eighth um or even like maybe i guess like you guys have the bed index like bitcoin ethan defy which i think is is is less volatile so it's something that people will be interested in as well but uh yeah the the dpi eighth ratio is not looking too hot but at the same time it can always reverse very violently if for some reason people like all of a sudden say oh well d5 is on the price i'm going to buy d5 then over the short to medium term it can definitely outperform right we are like anthony said we are in the middle of what seems to be an nft hype session uh if that session were to ever turn to d5 things would move really really quickly this is kind of how this industry works is we are only ever extremely hyped or extremely subdued and

never ever in the middle uh you mentioned uh the bed index and the bed index is coming in at 142 dollars uh it has performed really well for basically all of its genesis started the month right around uh ninety dollars and then has peaked out at 153 dollars and on the week we are up 8.6 so as an industry which is why the bed index is so great as a whole entire industry we are roughly up 8.6 so that is pretty cool uh all right uh here is l2b and we haven't talked about l2b for a while even though that we have it in the show templates but the reason why i wanted to bring it up this week is a we haven't talked about in a while but uh we were going through a little bit of a

downtrend in in uh money locked in layer two so excuse me l2b it's kind of like d5 pulse it's like you know money locked in d5 but instead it's money locked on layer twos and we have been seeing a resurgence in some value in some deposits coming in at layer two largely because i think uh the dydx token dydx coming in at number one and over the last seven days it's had a hundred and sixty percent extra value being deposited into its l2 um but of course we are also seeing a strong showing by optimism uh and a few other layer twos as well anthony any comments on the layer two world yeah i mean you can see with dydx this is the power of adding a token right

like as soon as you add token incentives you get a lot of liquidity and i'm really glad to see their growth there i think they're one of the best l2s out there right now obviously built on starcraft technology um has a really great platform um but like i'm always curious to see how these things perform when there isn't token incentives in place so i've been watching something like optimism where they've got synthetics and they've got uni swap but i've in particular been watching unisop v3 on optimism because synthetics has token incentives technically because of the staking um so with unisof v3 on optimism there's zero token incentives on there so i've been really curious to see that also very um happy to see that the tvl has been growing steadily on there and the volumes i think they picked out at maybe over four million uh 24-hour volume

which you know is small when you consider a layer one is like in the billions but uh you know as i said no token incentives still very new very limited guardrails everywhere um and you know we have other l2s like arbitrary going live this month you know in a fully public fashion so i think this tbr is going to explode and i think the early tbr they're measuring here might have been just like all synthetic staking and when the snx price was like three times what it was now um you know and that was i think that was on optimism but uh for for a little while too earlier on just staking um but like i'm just looking at the the 30-day if you could be changed to the 30-day chart on on there uh yeah you can see that the trend is is very strong like we've

basically like you know almost pretty much doubled here um you know and i think that's just going to keep continuing and it's just great to see and there's a lot of eighth locked in there as well i think that's measuring uh eighth if it was priced in usd there but i'm being seeing like eighth locked in in l2s go up as well like dydx is a big kind of like uh a big driver of that for sure yeah and we did have the optimism team on the banquet show last week if you did not catch that episode absolutely go watch it it's not often that optimism comes and talks on a show we did ask them if they were going to do a token uh because anthony i'm pretty sure you agree with me we kind of think everyone's going to do a token yeah but

when they uh answered that question they said that they had no plans so um they no plans to do a token well they didn't say that but we totally will all right no no no yeah yeah for sure now in the uh new to the bankless weekly roll-ups and also continuing for all future weekly roll-ups we are now seeing 36 000 ether get burned since eip159 got introduced a little bit over seven days ago seven and a half days ago so in the last seven days thirty six thousand dollars or excuse me thirty six thousand ether was burned which is coming in at a uh 111 million dollars fun tracked roughly about uh three and a

half ether per uh minute for over the last 24 hours anthony did you see this ether burn thing coming like did you know about this no like this is this is caught me by surprise like i am so totally surprised like where did this come from like this one five five nine thing it just came out of the blue right oh but okay but did you think that it was going to burn this much ease yes yes i mean i've been obsessing over this for a very long time and i have been screaming about it because um justin drake put out his assumption saying that 70 to 75 percent of the uh fees would be burned and that's exactly where we are today it's about 75 on average so he was he was right about and

i based a lot of my assumptions uh on his work and you know given that how much work he's done throughout the um ecosystem with research on ethereum monetary policy 1559 everything like that uh i tended to kind of like believe his estimates and you know when i saw this happening i was like yeah this is this is exactly what i what i expected but a lot of people didn't and it just really surprised me because i mean maybe a lot of people don't watch my stuff but i mean i've been screaming about this for so long i really like this watchtheburn.com website over the last seven days it's been keeping a tally of the burned versus issued amount of eth and this is one of the metrics that i talked about forever ago the eath issue to burn ratio in the last seven days we've issued

almost 67 000 eath and we've burned 35 800 east so we are burning more than half of the issue of the east that we are currently issuing and that is in a proof of work environment right so actually excuse me we burned 35 800 eats and then the net issuance was 66 800 okay so so we actually only burned roughly 35 percent uh and so you know 35 percent like no like and that is largely e that would be otherwise being sold by miners and so 35 percent of ether being issued is no longer being sold it is just being burnt it's as if people saw this coming

this fits in with my napkin math about how if we wanted a full net deflationary eighth in a proof of work world we would need about 150 gray uh on average we've had i think about 50 60 way on average over the over the past like seven days um so yeah it's not going to be deflationary but we have had ultrasound blocks right which is like blocks where we've burned more eight than we've um that we've issued as block reward and we've had many of those uh which i think is really cool to monitor but i mean yeah like the thing is is that it's funny because i've been seeing people say oh well you know how much eat was issued during that time like who cares how much was burned how much was still issued and it's like guys like this is like so missing the

point right now like it's just it's insane um but like other than that i just think it's it's funny when you look at the dollar values too like there's ten thousand dollars on average over the last 24 hours each minute being burned with eight so don't just look at these value look at the dollar value ten thousand dollars a minute that's like someone buying ten thousand dollars every minute and sending it to the burn address it's the same thing at this rate it's faster than michael saylor is dollar cops averaging in to bitcoin um and and the crazy thing is is like you said that we've had ultrasound blocks we've also had ultrasound hours as in for a whole hour ether was deflationary during dependent like times of nft drops usually um but i mean in defy summer we sustained over 150 way for weeks if not

months right and there was times where we were holding three to four hundred gray for for an entire week right and so to some degree like when we have a really really high congestion environment like that burns way way way more ether uh and like it does it retro like if we want to retroactively become ultrasound that is possible right because you know the maximum amount of ether that you can burn inside of a single block is infinite right and so you know the maximum amount of ether you can burn in a single month is also infinite right uh and so uh and and of course this just gets so much easier under proof of stake you you said your nap can mess with like 150 gwei uh well i think it was like at the previous like yeah i think it was like 10 to 15 guests right depending on

the age stakes yeah 10 to 15 grey like we've been sustaining 10 to 15 grey like 97 of the time for the last like two years yeah yeah exactly so yeah and this is why i think i've been saying it on twitter leaking a bit of alpha the merge is like a hundred times more bullish for eight than one five five nine like one five five nine was like the appetizer guys like the merge is the main course like it's the main course it's the dessert it's the drinks you have with your food right it's just it's everything it's it's huge yeah and the cool thing is we can actually do a little bit of like again napkin math here is like so we call the merge the triple happening right because it's happening having the amount of issuance of and then doing it again and then

doing it again so what is it what is that 50 25 12.5 nothing percent it's about a 90 reduction yeah 90 reduction which is triple you should have them like if you have it fifty percent fifty percent fifty percent it's it's about ninety percent yeah right and then with this uh burn rate we are burning uh i think oh god this is why i'm not a math major but anyways take take a third of the issuance of under this proof of stake proof of work form and then also keep on burning that like these things are really symbiotic uh okay all right we got to move on so we're gonna stick in into the the markets for a little bit too long but before we do a shout out to michael silberling which he was listening to the eip159 expert panel which another great

piece of content and made this dune analytics board which i found very very useful uh but apparently it's not loading but if you want to get a very in-depth uh dune analytics board about eip1559 check out that link in the show notes shout out to michael for making that dune analytics board uh and then again i guess we're not done with eip159 here's here's a nice visual visualization of all the eath being burnt versus the eat being paid to minors like look the dark blue is how much is being burnt and then the light turquoise-ish is uh revenue paid to miners and there's a lot of dark blue there like it's most of it moving on to axi infinity which is the first nft project to hit 1 billion dollars in all-time nft trading volume

which is a very large number absolutely massive actually infinity we brought them on to the markets a couple weeks ago because the price was just going absolutely bonkers and we brought that on after two weeks after before that we brought them on the show because the price was going absolutely bonkers and the revenue of this whole entire ecosystem continues to be sustained which is very very impressive anthony any comments here yeah i mean this is just like to me the the story of axiomfinity is what's going to bring in the the kind of like next wave of nft uh kind of like um you know adoption and builders because think about all the game development studios that have now realized how big the total adjustable

market is for play to earn games and think about all of them integrating these sorts of things into uh their mobile apps right like there's a lot of apps with in-app purchases and stuff like that but they're gonna be able to supercharge it by tapping into these play to earn things so i'm gonna i can pretty much guarantee that every single game company worth its salt right now is contacting you know whether that be ethereum layer 2s that are focused on nfts or anyone who knows about this stuff they're contacting them to like the team at polygon as well and stuff like that to say hey hey how do we do this nft thing and you're going to see an absolute explosion of this stuff happen over the next six to 12 months it's going to catch everyone off off guard i think this nft mania is just

getting started there is so many people to come like the amount of people that there still has to come in is is incredible like this is going to be the the story i think over the next six to 12 months for sure yeah absolutely and we have not even gotten to the nft section of the weekly roll up to close out the market section coinbase coin had a really impressive uh uh quarter and so they uh beat earnings they were expected to have 1.8 billion dollars in revenue but instead they pulled in 2.2 billion dollars of revenue and coin as a result is finally seeing some life in the asset price so congratulations to coinbase anthony any comments here yeah i mean it's great to see um but like my thesis has always been that

coinbase is very very heavily reliant on crypto trading volumes and crypto trading volumes go up when the crypto market is hot so just buy eighth and you'll outperform coin all right guys that was the market section we are going to be back with releases in just a second but first a moment to talk about some of these fantastic sponsors that make the show possible bankless 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 will 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 dow apply for a grant to uni-swap just look at the size of the uni-swap treasury it's almost three billion dollars this mountain of capital is looking for labor do you have something of value to contribute to the uniswap dial no matter how big or small your idea is you can apply for a uni grant at unigrants.org and help steer uniswap in the direction that you think it should go that's exactly what we did

to get uniswop to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring bankless balancer is a powerful platform for flexible automated market makers typical amms just have two tokens inside of one liquidity pool which can lead to fractured liquidity across the many pairs in d5 with balancer you can access the full power of multiple tokens inside of one single amm which unlocks an entirely new playing field of possibility this makes balancer an awesome building block for so many different use cases balancer pools can make asset indices but instead of paying fees to portfolio managers balancer lets you collect the fees from traders who use your portfolio for liquidity additionally balancer smart pools can be

programmed to have properties that change according to pre-determined rules such as changing the swap fee based on market conditions or even liquidity bootstrapping pools which can help you launch and distribute your token with day one liquidity at bank list we use a liquidity bootstrapping pool to sell our bap t-shirts too much success balancer v2 brings powerful new features that makes your money work even harder for you in v2 idle tokens are capable of generating yield in defy without sacrificing liquidity in the pool using balancers asset managers balancers of vault architecture lets you trade between balancer pools at a fraction of the cost versus trading on other platforms balancer's mission is to become the primary source of liquidity in d5 by

providing the most flexible and powerful platform for asset management and decentralized exchange dive into the balancer pools at app.balancer.fi all right guys welcome back we are getting into the releases and starting alphabetically a is for arbitrum and apparently a is also for august and apparently arbitrary is releasing in august so they recently put out a blog post on their blog on medium off chain.medium.com if you want to go check it out talking about how they are going to release arbitrage in august anthony what month is it uh i think it's august is it august i think it's just turning out to be a very big month for ethereum yeah weird all right so uh what does that mean for us

what's what does that mean for arbitrary to go live so arbitrarium one which is their first implementation of the arbitrary optimistic roll-up uh going live means that it's going live for everyone it's been on mainnet in a uh in a kind of like closed capacity for developers to deploy their kind of apps to them but it going live in august for end users means that we're going to all be able to use the arbor trim system uh from our you know favorite ethereum wallet so that is super exciting and i mean august what we're on august 13th for me i know it's the 12th for you uh but essentially there's only a couple weeks left of august so they're going live you know sooner rather than later they're going to leave it to the end of august that really tease us you know who knows but i

think arbitrary is usually very good with their dates and their and their release windows so i don't even expect a delay here uh so yeah they're going live in august so super exciting i really like this release date format and i really wish that as a community we had figured it out earlier just give people an entire just like month like no release dates just give us a month and just like tease us for a whole entire whole entire month uh arbitrary also released this page which also illustrates all of the apps that are coming to arbitrome this page is called the arbitrary one portal your gateway to the arbitrary ecosystem and the amount of applications on here continues to just grow and grow and grow as i zoom out on this page look there's ave there's curve uh there's cream there's cos there's so there's there's balancer

look at that there's train links the ether scan not even an ethereum app but ethereum infrastructure which we all know that we need there's maker dow mcdex loop ring gosh what isn't there yeah yeah this is this is why i'm really really excited for this is because we're gonna have a fully kind of like fleshed out uh layer two uh ecosystem with arbitrary going live where we have all the apps we know and love from layer one and just on layer two so i expect uh the tvl and and the activity to absolutely explode on this and i'm sure optimism isn't far behind either because avatar is their main competitors in the optimistic roll-up space so i'm pretty sure we're going to see like the arbitrary versus optimism wars over the next few months and it's going to be

amazing there's going to be so much kind of like liquidity mining going on it's going to be pretty funny to see how that plays out but yeah i mean i can't wait like first um you know true layer 2 uh ecosystem on ethereum uh that isn't just like app specific like obviously dydx looping diversify all that sort of stuff is app specific specific specific but arbitrary and optimism are both uh generalized evm compatible platforms that are going to really change the game i think yeah and as we've been saying on the bankless show the layer two summer is upon us august still counts as summer so we still got that one right uh and if arbitrum does what we think they do and releases a token maybe there's yield farming on arbetrom i don't know how they're going to release their token i

don't even know if there is going to be a token but i would imagine there might be some uh aggressive yield farming going on there uh moving on to wearable release the wearable protocol a set of tools to simplify the go-to market process for nft projects and ideas i took a peek under the hood and this is uh interestingly an nft cross-chained system to bridge nfts across all the various chains uh not even just ethereum l2s but also things like binance smart chain and flow and pesos which uh interesting okay uh anthony did you read this announcement at all yeah i mean i saw it last night uh basically i mean it makes sense because essentially what wearable is trying to do is to provide the tools for for people to kind of like build out their

nft projects and developers to kind of build them out on you know ethereum layer twos other chains things like that and uh yeah i mean it definitely makes sense for them to release something like this but i think it's definitely more developer focused right now but end users are obviously going to get the benefit from that at the end of the day coming out next was gearbox which is a brand new protocol for generalized leverage i'm not sure what that means to have it generalized leverage and if there is a somebody who is a trader in the world of the bankless nation who wants to come in and inform me what generalized leverage is i would super duper appreciate it anthony do you know where that generalized leverage is yeah so the way that i understand it is basically you're going to have like a

pool of capital that people can kind of like tap into uh that they can kind of leverage off of right to go do kind of like yield farming and think and similar things within the ecosystem so i think the way maybe gearbox does it is you can see in the screenshot here they have like this pool right where liquidity providers can provide liquidity to and then uh people create these things called credit accounts which they uh borrow from the pool as leverage and then they go do you know any number of things so it's essentially a way to access like a massive pool of capital for people who want it and to borrow to kind of leverage it in order to to do the other things in d5 uh so i thought this was actually a really cool idea because i think alpha finance has done

this in the past uh in a different implementation where people could like borrow from this map this pool of liquidity but i think gearbox is just taking it to the next level by introducing this thing called credit account where is essentially you know keeping track of all the the credit that this person has and generalizing it so that they can borrow these you know leverage these this liquidity and put it into all these other protocols uh and you can see here on the other side there's like a two sided places the query providers then the traders and there's just a credit account that everything goes into and the traders can can kind of leverage that and yeah i mean the post detail details a lot more kind of like how this how this works and there's like a little blurb underneath the screenshot that describes it uh but yeah i think uh this

could be pretty i think this could lead to you know a resurgence in d5 especially because at the end of the day everyone loves yield farming and you know making it easier for people to leverage yield farm is probably uh you know going to be a hot product especially if d5 heats up again yeah as we all know the d5 is providing some of the most powerful financial tools to the people that use it and we are also inventing brand new ones which gets even crazier so i'm excited to see how this rolls out into the future what can this change when it comes because you all know everyone in d5 loves leverage perhaps a little bit too much i'm a little bit worried about putting even more leverage tools out there but like i know that if they can be built they absolutely will be built and it

looks like that's what's going on here all right moving into it raises the decentralized wireless network helium has raised 111 million dollars in a sale led by a16z uh anthony any comments on this yeah helium is one project that i've watched for quite a while i haven't been able to interpret it yeah yeah i i wasn't able to participate in it from the early days because they were only shipping their helium units uh two places in like the us initially and then i think they do australia now but i haven't i haven't kind of looked at it lately but for those who don't know helium is trying to create like a decentralized uh i guess like 5g network or um you know and so to do that you need to obviously bootstrap it with new hardware and

hardware a hardware rollout is actually very very hard and very expensive so what helium has done is they basically said well what if we have a token attached to it what if we do like mining where you set up your unit you get to mine these hnt tokens and then that kind of incentivizes you to do so and i really think that this is going to be part of a broader trend where we can actually use these token incentives to essentially bootstrap new uh kind of like hardware rollouts and there's no surprise to me that helium has raised this amount of capital because they are you know there's there's literally like tens of thousands of these things and they actually were sold out for quite a while because there was just so much demand for them so this is really like liquidity mining for hardware rollouts

like that's how i like to think about it and i definitely have always thought this is one of the most like sci-fi applications of the use of crypto but we've also seen teams try and do similar things like this before the foam network comes to mind where the people wanted to make like decentralized triangulation so we didn't have to like rely on google maps um i mean we all want super high speed connectivity and a mesh network of like radio i'm pretty sure that's the right device makes a lot of sense is society ready for that um we will find out but we have 111 million dollars to put to it to the test so moving on dune analytics which we refer to all the time on the bank list program got a 8 million series a led by union square

ventures i'm really really excited for this dune analytics is such an important way to gain some perspective as to what's going on directly on chain on ethereum and the their boards feature is great we use it all the time on the roll-up i'm excited to see what happens when they inject eight million dollars into improving the product and growing out the team yeah i mean this is awesome to see and i mean i should disclose that i'm actually a seed investor in doing analytics so that's yeah yeah thanks but this is like awesome to see like from both ends but one because like i'm really glad to see that a team that i i have backed um is you know going on to raise another round and seeing continued success but also because i'm a massive fan of doing out of licks i use it every single day for

looking at unchained stuff and i absolutely love the fact that they have such a vibrant community that builds all these awesome dashboards i mean we showed one from michael earlier there's literally hundreds of these people building out these dashboards and i think with this money dune said that they're going to expand to layer twos and other chains and kind of like just have like this world of of data for people to kind of like tap into to to essentially build these dashboards around so yeah i'm really really excited to see that they've raised this money closing out the array section we have a consensus incubated crypto wallet liquality raises seven million dollars in seed funding uh so consensus the the you know try true and tried uh ethereum project that has spun out with the things like metamask and infuria and codify uh now spinning out uh lee lick

quality which i'm not so sure i'm sold on the name um but uh a new a new wallet coming into the ecosystem uh done by consensus yeah the name trips me up because i always just go straight to liquidity instead of saying the quality and i just started figuring out liquidy i was about to say liquid these names but no no i think this is really positive because we need more competition in the wallet space and the fact is that the world space is actually um you know the front door for for the ecosystem so if you own that front door and you have the users there there's a lot of money to be made i mean we've seen metamask absolutely printing money off of their uh swap feature which is literally like it's not even in your

face or anything like that and they're taking like a point eight percent fee uh off of that and i think they're printing like half a million dollars a day or something like something crazy like and that's like pure revenue and profit right because metamask doesn't really take much to maintain there's a small team that builds out the updates and things like that so yeah the wallet space is definitely going to heat up and there's going to be a lot of competition coming to market here just kidding one more raise in the race section crypto tax software firm tax bit has raised a 130 million dollars in a series b that sticks their valuation at 1.33 billion dollars everyone in crypto hates to do taxes i'm pretty sure i can speak for everyone when we all say we hate to do taxes and so the fact that a tax reporting company

can raise such a large amount makes a ton of sense because we just want other people to do it for us or at least that's just me all right yeah i agree yeah um and of course finishing up the releases section if you are looking for a job in crypto there are jobs out there to go and find so if you are perhaps a senior product manager immutable x is looking for you a full stack software engineer palette of this drop board is looking for you we also have it drops from nervous network impact theory the graph and argent uh if you are looking for a job go to pallet.xyz list slash bank list that or just go to the show notes and check out the jobs uh because they are higher everyone is hiring these days including arbitrum uh

and so if you want to go get a job with arbitrary they are hiring as well all right moving on into news let me close out some of these tabs the big news of the week was this pauli network hack which had over 600 million dollars exploited out of its contracts polynetwork was a a cross-chain asset transfer network kind of like thor chain kind of like a few others um interestingly none of the people that i had i talked to in my circles like knew poly network even though it had the largest uh hack in defy history which was kind of interesting so some funds were lost from polygons some funds were lost from the ethereum main chain some funds were lost from a binance chain but interestingly

this hacker wasn't very sophisticated uh and because he or she or they realized that they had led some some breadcrumbs back to a centralized exchange where they had done kyc presumably they were forced into having to give all of the assets back and so the assets were exported the hacker had an oh crap moment and returned all the money and there's also a story in here about the nature of decentralized uh you know permissionless assets versus more permissioned assets uh usdt actually froze this these hackers funds and as we all know usdt is a centralized company they can freeze your money and so if you hack usdt you actually don't have the money in the bank uh and so

there's a bunch of just funny little stories that happened with the with the biggest hack in defy history um anthony any thoughts on this yeah i mean it's funny because i had never heard of this either and a lot of people getting this confused with polygon which is funny um but i think this shows like a deep divide between the east and the west i think this was a project in in china or somewhere in asia and there's like a deep divide between the east and western communities both kind of language barrier wise and cultural wise and a lot of people weren't using this in that in that kind of community and no one i knew was kind of using this but yeah i mean 611 million stolen like it's an absolutely massive amount of kind of like money but them giving it back

because they were sloppy is just i mean this just points to pure amateur hour where some script kitty probably will got on a high and said well if this actually works i'm gonna steal all this money and then they were like oh wow like i didn't think this through i've linked you know personal um information everywhere like oh crap and then usdt freezing the funds i mean this shouldn't come as a surprise to anyone usdt and usdc both have functions in their smart contract to freeze these funds so you should never be surprised by this when this happens but yeah just uh i mean good to see that money was returned and people going to get their money back i assume but at the same time just speaks to the nature of this cross-chain stuff and how um i guess like immature it is right now it is very

immature there's a lot of moving parts to it there's a lot of things that can go wrong and you know you need to be careful when using these tools maybe we will borrow some time from the takes section but one of the takes that i had this week was that the phrase cross chain transfer is going to move away from a you know l1 to l1 a bitcoin to ethereum or to a polygon or whatever and it's instead going to be start to start to be used as an ethereum l2 to l2 transfer this is what we are seeing with things like connext and hot protocol when people start to talk about cross chain they're going to increasingly talk about ethereum l2 transfers to other layer twos and when you go from evm chain to evm chain things are easier especially

when they are actually true roll ups on ethereum there's a lot less less complexity there's a lot less risk we saw thor chain the other crop the the l1 cross chain transfer protocol that got exploited multiple times in the last month it's just very very complicated and there's this growing ecosystem of ethereum l2s and i'm pretty sure anthony you believe me or you agree with me when we kind of think that all this activity is kind of going to get sticky to these l2s and the world of cross chain is just going to mean cross l2 yeah i i believe so um you know i mean as i was saying before like about the multi-chain kind of world and how i think that other things can can exist and find their niches and stuff i still believe that to be a reality but i do

think that a lot of stuff's just going to accrue to l2 because it makes too much sense right you have the security and decentralization of l1 and then you have inherit that at l2 and then with the cross-chain stuff i mean i think inherently the cross-chain stuff is always going to be more risky than than anything because of the fact that it has to touch multiple points there's always going to be like a point where there has to be a maybe a trade-off between decentralization and centralization and some security trade-offs but i'm excited to see like all of them play out in order to kind of like innovate here and maybe we can get to a fully trustless cross-chain system eventually that would be like the holy grail absolutely something that came across my feet earlier this week is ave is exploring building on other uh other chains

including solana and avalanche and and of course other layer twos uh this is a new direction coming out of ave it's not something that's foreign to the world of defy and ethereum we've seen plenty of teams build on you know any any chain that they can get their hands on but it seems always moving out onto other l1s anthony any thoughts here i'm not surprised i think that it's more of a defensive measure than anything else where if they don't move are there to there someone will fork out there and build it on these chains right and then they'll lose the market share the way i view these kind of things is that ethereum is the headquarters right it's hq it's where everything you know major happens like governance and things like that but then you want to have branches in other countries right so you

basically have like an ave branch on solana maybe an ave branch on on avalanche and ava branch and all the layer 2s but all that value accrues to the arbeit token that sits on ethereum and and to the treasury that would sit on ethereum because that's the most secure place to be and that is the headquarters so we're going to see this in pretty much like all apps eventually but just because they're deployed to one of these chains doesn't mean they're going to see the usage right deploying is easy getting users is what's difficult so it's going to be interesting to see what users prefer i'm betting on users preferring layer 2 and dev is preferring layer 2 as well because they know that it's a more secure system to build upon but we're going gonna have to see how this shakes out like it's it's still very early

right we don't know how this is gonna shake out i obviously and i mean you as well are betting on ethereum being the the thing at the middle um and i think ethereum has already won that but uh you know it's gonna be interesting to see which other chains kind of like get traction coming to a close on defy news stuff uniswap just became the first protocol to surpass a billion dollars in fees wow a billion dollars in not trading volume in fees fees collected and paid out to liquidity providers uh that is pretty cool uh lucas who tweeted out this tweet and of course i agree with this as well congratulations to hayden and the whole unit swap team yeah yeah i mean just doing the head math here if if the 0.05

fee rake was turned on um uh for like uh the the treasury or that's for the token holders uh instead of all going to lps this would have been like a lot of money the hundreds of millions going to to them so uh yeah i mean it's still cool to see like that's a crap ton of money going to liquidity providers and then last thing in the markets or the the news section is gemini makes an acquisition of guesser a new prediction market platform uh and so we we we've seen the gemini twins the winklevi acquire other things before they acquired a nifty gateway from fun fact another set of identical twins uh and then i asked them if they uh was if guesser was founded by another set of twins but they didn't they didn't like that joke or they didn't respond one of

the two all right guys moving on into the world of nft news penguins are on the front page of the new york times which is absolutely crazy uh i guess disclaimer i have a penguin uh i have a couple penguins um but the title of this i thought was pretty interesting and the title of this piece was called i joined a penguin nft club because apparently that's what we do now with the subtitle is that what the metaverse is is this what the metaverse looks like and bankless listeners if you have listened to the uh episode with luke burgess the power of memetic desire the line that's what apparently that's what we do now stood out to me because it's it's so clearly shows the power of just like oh other people are doing this

i guess i'm doing this like oh other people are putting penguins as their profile picture i'm doing this as well this apparently this is what we do now and so uh this is kind of turned into what the story of ethereum has been over the last two weeks or so is like this nft profile picture avatar like games like started with crypto punks then moved on to board apes these penguins have absolutely exploded on the scene and now penguins are on the front page of the new york or not the front page but on the new york times which i think is is pretty crazy yeah yeah i mean this has been funny to watch play out i i'm copying [ __ ] because i don't own a penguin um and and even though a lot of these penguins look like me because they have a hat that's

similar to my hat and some of them have like a beard and things like that and i guess like i'm just done no pengu uh right now they're going like penguins or pangas or whatever um but i mean yeah it's it's been wild and you know i think this profile picture trend stems from the fact that a lot of people have been priced out of punks right like punk's the floor is like 150 000 or whatever it is and people want to be part of a community so there's a lot of these projects spinning up you know a lot of them are opportunistic money grabs or some of them are scams but there are certain ones that pop up and people just resonate with them like the penguins are cute right they're cute and wholesome a lot of people kind of like resonated with it changed their profile picture to

it and that's how these things kind of like come to life and if you join the discord channel you'll see like the absolute madness that goes on in there it's just meme heaven like there's so much like stuff going on in there it's hilarious but essentially and then you know the price of admission right now i think the floor for the penguins is like 1.88 so it's not cheap anymore um so as the price of admission goes up i think people that get priced out just go down that kind of like i guess um that pyramid and eventually you get to the base where like you know there's a project where everyone can enjoy but then you know eventually it keeps going up like at the top of the pyramid you have punks and then you have like board 8 yop club and then you have maybe like

penguins and then as you go down you kind of like have it's like a status thing as well where it's like you know you own a certain thing you're part of a certain group but uh this is this is fun to see play out like i really like how much energy there is in the nft spaces even though a lot of people are speculating on these things i think a lot of people just feel like a very deep sense of community whenever they buy something like yes you can right click save it but like you're not part of the group right you're not part of the cool kids if you do that you're only part of the group if you actually buy a pengu and there's only eight eight eight penguins so you know you could be a part of an exclusive club but only 888 people

can never be a part of um and even though the price of admission is is quite high right now it's probably worth it for a lot of people because they're like well i can be part of the cool penguin club no that's exactly right uh and i'm part of the cool penguin club and i feel very very cool the other two thing two fascinating things i think that are about this is like this these whole nft avatar games they are literally games of just like do we like the way these things look and like so like the fundamentals on these penguins are like they're really cute they're really cute little drawings that's like the fundamentals behind this project uh and then of course we also have the subtitle is this what the metaverse looks like uh metaverse becoming a household name we see the facebook pushing the the phrase

the metaverse uh the metaverse is a very frequent topic in the world of crypto we have the bankless sub newsletter coming out as the metaverse ran by the fabulous william peacer uh metaverse common household name more and more and more these days uh moving on real quick here uh something interesting in the world of crypto is going on that ftx the the big exchange out of sam bankman freed that likes to slap its name across everything is sponsoring 137 axi infinity players from developing countries which means that they are giving them the axes to go play the axi game which is where they get the revenue from and ftx is sponsoring 137 of them so that is pretty cool also in the world of nft's draftkings launches an nft

marketplace which with uh excuse me tom brady as the first drop i tried to do a little bit of snooping and figure out what uh blockchain that they had been deployed on they have kept it a secret there's murmurings of it being on polygon but that could be paul it is probably gone around yeah yeah he's probably gone better than i did all right wow that's actually that's fantastic for polygon congratulations to polygon and also congratulations for drafting to getting into the world of nfts although not all nfts are created equal so we'll see how the more and more details behind this anthony do you have any thoughts on this announcement i mean i think it's pretty cool and i think polygon itself is definitely positioning positioning themselves as a really nice nft platform that obviously

the pos chain is in a true layer too but like you know ethereum friendly and things like that uh so it's just great to keep this kind of like in the ethereum ecosystem and great to see i guess like i didn't know what draftkings was because i think it's very big in the u.s it's not big here in australia and i'm not into sports so i actually had to google who tom brady was the other day that's how not into sports i am um but essentially i mean it's good to see that like the thesis playing out for nfts where basically the thesis is that nft has like a total adjustable market of like the entire world and all these different industries and they're coming they're coming in waves and as i was saying before there's going to be a lot more over the next six to 12 months

coming in at bitcoin news five north american mining firms reported that they earned 58 more bitcoin in july thanks to china thanks to the big hash uh hashing migration out of china the drop in hash rate which makes a bit you know bitcoin miners everywhere across the world more profitable so a little bit of uh positive news if you're into the belief that this is good for american regulation of bitcoin and american bitcoin infrastructure at large bitcoin miners making a little bit more money bringing some more bitcoins on to on to american soil and away from china soil which again i always think is is bullish at least from a regulatory standpoint makes people more friendly with bitcoin yeah i mean uh yeah i mean this is this

is uh obvious to see like obviously as china shut down they're they're kind of like miners and hashrate the ones located in other kind of like jurisdictions are going to get more uh more profit from from mining bitcoin so yeah makes sense to me moving into regulation which was a massive topic this week this uh this subject matter really kind of finished out on monday and tuesday of this week we kind of had it we were watching it live as i was writing up the market monday post on bank list if you also want to uh keep get yourself updated with what's going on in the world of regulation but as we all know we have this massive tax bill in america that was getting held up by the crypto industry by cryptocurrency uh crypto the crypto industry was one of the the the reason as to why this massive massive

infrastructure bill got held up in congress in the senate uh the title on the cnbc article says lawmakers fought over crypto's place in the infrastructure bill here's what's next for the industry and then if you were paying attention we watched this republican senator from alabama block the amendment because he didn't get the money that he wanted for defense spending he wanted something like 50 billion dollars for defense spending so he blocked the crypto amendment because he didn't get his amendment in uh which frustrated basically everyone in the industry and so where we stand now is that the senate has voted 69 to 30 to pass the infrastructure bill uh with the original crypto provisions right so this

is where everyone becomes a broker this was more or less actually the worst case scenario this is what no one wanted but like the thing is it's such a bad scenario that no one is taking it seriously it's it's like it's like it went all the way around the world right like it is so bad that it's so backwards that it's actually like good for some reason uh and and that's kind of my take on that and and uh finishing up the conversation we were as an industry trying to figure out who is going after crypto who is really trying to uh come after crypto and impose all these burdensome regulations on it turns out it's the white house and janet yellen who was a previous fed chair and i think that is particularly interesting

janet yellen the treasury chair secretary to the biden administration is apparently the one that has been lobbying the senate and lobbying congress to get this really really burdensome regulation on our industry especially defy and and then anthony i'm going to give you the floor the thing that i thought was particularly interesting is during this whole like week of drama and so many different amendments getting proposed we had this amendment get proposed that specifically protected the proof of work industry and the mining industry uh and they and and so the the bitcoin community was overjoyed because not only were they protected but everyone else was not protected uh and my take on this and i want to get your

take on on my take anthony is that the fact that the the regulators were okay with bitcoin mining and bitcoin getting carved out but not defined not ethereum tells you exactly where their priorities are and tells you exactly where they think the threat is bitcoin getting carved out was not bullish for bitcoin it's because they don't feel like it was a threat so that is that is what happened in the in the last week of regulation and also my take on it anthony any thoughts or anything i missed no no you summarized it really well i think uh if we're just like cutting out all the [ __ ] this is an attack on d5 uh straight up like the treasury being involved tells me that as you know more than anything uh it's unfortunate to see what happened here but i agree with you

that this um uh kind of like legislation was so bad and and so shitty and so unenforceable that the market was just like we don't give a [ __ ] about this this is a joke like this is not going to lead to anything and we can still you know but we can still fight this in the house in the us and then in the courts if it gets to that because this doesn't go into law until 2023 so i think just generally people are like both optimistic that we're going to be able to to get this crap out of there but also at the same time being like well you know this is what we're fighting up against this is the war that we have to have we shot first at the end of the day like we we definitely um you know kicked

the hornet's nest but now crypto is you know crypto was the sole thing holding up this massive infrastructure build for the us like crypto is is kind of like in the big leagues now we have we have made ourselves known we have said very very loudly we are here and we are not to be not to be screwed with because um a lot of these senators would have learned about crypto this week a lot of them would have learned how many of their constituents um how many people as part of like their their jurisdictions actually care about this and this could be like a single issue uh voter type thing for a lot of them so they're gonna start i think um you know learning more about it seeing who cares about it seeing what they can do to help it and you know we do have some people in in

the senate that actually are on our side um you know people will be cynical and say well they're not on our side they're on their side it's like doesn't matter if they're on their side and aligns with the outside then they're on our side that's how i view it uh so yeah i mean i i just think that really this was a nothing burger for now but i do think if this does go into law it's going to be very bad for the u.s long term because a lot of companies will leave the us because they'll be like well i can't operate here anymore but crypto is going to change the world so i'm moving to this other country goodbye all the economic benefit goodbye all the taxes that you get from these companies in the us and and you basically just push away a massive massive industry yeah that is

the takeaway that i've heard so many people give is it was a massive surprise as how energetic crypto came to defend itself and it showed up in force it showed up with phone calls emails and tweets apparently tweeting at your senator is a really powerful thing to do because when you call your senator's office you're not getting to the senator but when you at your senator that's they're going to their phone that's going to their twitter messages and so they know what's up with that one last take on this came um from jake schravinski who we are actually having on the bankless state of the nation next tuesday and so we are going to ask him all of these questions and more but dc investor of course friend of the pod says fun fact i have a master's in public policy

and spent years working around the government i know how the sausage is made all of this probably jammed in by random staffers who were probably heavily lobbied by various industries it is what it is all we can do is express our opinions with money and words but then jake schravinski who's very very close to this whole thing says this isn't what i hear word is is that it came from treasury they don't like what we're building and they're using the infrastructure bill as strategic cover to get a jurisdiction over non-custodial market actors which they wanted to but failed to get with a previous fincent proposal the whole minutian regulatory flood during the transition so it's interesting to see this like surgical targeted attack on defy just like what

you said and it's also interesting to see the absolute strength of the crypto community come and put their foot down and say uh no but the story is going to continue to be unfor too it's going to continue to unfold all right also in the world of regulation brian brooks steps down from binance us as the role of ceo brian brooks also a former former regulator uh from the cftc stepson as ceo from binance us which raised a lot of eyebrows because he had only been there for a few months and as we all know on the bankless program we've been calling it the bankless or excuse me the binance squeeze binance is getting squeezed more and more and more by regulators and now a their ceo has stepped down after just a few months and

so the binance squeeze titans anthony any thoughts here i think brian says the writing on the wall that binance is going to continue to suffer this squeeze as you call it they i mean they have been suffering from it i think centralized exchanges in general are going to keep getting squeezed especially those that don't follow the regulations that are in place and i mean you've already seen this play out like with binance lowering leverage requirement leverage max leverage to 20x banning leverage in certain countries pulling out of other countries and yeah this is just going to continue and i think brian really did see the writing on the wall and you can see he's had a colored history within crypto you know former ceo of finance us uh former chief legal officer at coinbase as well but he was also working in government as the as

the acting controller of the currency uh as which is which is a pretty pretty big position too so yeah i think he's just getting out while he can he doesn't want to be involved in the regulatory kind of like mess that's coming towards what sports finance and continuing to come towards it last thing in the regulatory section circle becomes intends to become a full reserve national commercial bank so a big upgrade from circle to become a national bank interestingly as we all know the banks in the u.s operate on a fractional reserve basis a 10 to one basis but that is not circle's product so circle wants to become a fully collateralized one-to-one bank and and uh there are probably some more

details need to come out there as to what this really means can i just make an account with circle can i finally break up with wells fargo and just join circle i mean i'll trade bank to bank but i think i like that one a little bit more anthony any thoughts here yeah if i have to use a bank i would rather use one that at least had crypto features embedded into it and was like crypto native and friendly so i mean obviously circle's not going to be coming to australia anytime soon uh but you know i think that if you have to use a bank i would go with this but obviously like we all want to be as bankless as possible but we we can't be for certain activities like unfortunately i have to use a bank account for certain things uh we all

buying figurines right yeah you like buying figurines um but uh yeah no i think this is this is quite positive uh to see i think this is going to bring in a lot more people into crypto as well uh because at the end of the day a lot of people don't want to manage their own funds and that's fine they can you know use a third party but this third party is still going to be using our beautiful defy rails which i think is is great and then of course last thing in news just i feel like it's worth a mention but it is the one year anniversary week of yams i think we all remember where we were when yams happened as we all know comp kicked off liquidity mining and yield farming but it was yams that kicked off the whole food coin mania and to really

tell people that you could actually compose some brand new community using other communities and a bunch of yield farming and really just left a very significant mark on defy to this day anthony any thoughts on the one year anniversary of yams yeah i mean i remember the day yam went live uh i woke up after i had gone live i came to my computer i was like what the hell is happening like i went on twitter i'm like oh my god the next 16 hours of that day felt like less than 10 minutes i didn't really do anything it was an absolute and no i do it was absolute insanity it felt like i was playing world of warcraft again back in like my teenage years where i just didn't move the whole day did nothing else except in front of my computer um but yeah like it was

crazy and as you say they kicked off the food fork mania kicked off everything and just absolute um mayhem and i think it's a special kind of like moment that a lot of us will hold in our hearts and he's a little [ __ ] of robert listner there with the with the yam that's funny that is funny i did not see this earlier but yeah like just like you said here's robert lesnar apparently farming some yams all right guys make sure you don't go anywhere because we are going into the ecosystem takes afterwards and of course finishing off with the meme of the week but first a moment to talk about some of these fantastic sponsors that make the show 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 urn program where you can earn up to 7.4 interest on 26 various crypto assets if you're tired of paying fees in defy or 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 gemini.com go bankless the ave protocol is a decentralized liquidity protocol on ethereum which allows users to supply and borrow certain crypto assets ave version 2 has a ton of cool features that makes using the ave protocol even more powerful with ave you can leverage the full power of

d5 money legos yield and composability all in one application on avi there are a ton of assets that you can supply to the protocol in order to gain yield and all of those same assets can also be borrowed from the protocol if you have supplied collateral here you can see me borrowing 200 usdc against my portfolio of a number of different defy tokens in 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 in that interest rate in permanently v2 also features the ability for users to swap collateral without having to withdraw their assets trade them on unit swap and then deposit them back into ave with ave users can do this in one

seamless transaction saving you time and gas costs check out the power of ave ave dot com that's aave.com all right anthony i got some takes for us to talk about and of course the first one starts off with your good friend eric connor who says we all need to realize that this is going to be commonplace for crypto and defy over the next 20 years when it comes to regulation it's the hot new thing to be regulated like banks in 2009 we need to coordinate properly but not overreact every single time it's not the end of crypto and i think eric is really just saying hey like we're here we've arrived we've arrived into the era of crypto regulation this first bill is an absolute mess but it's the first one so that makes sense that it's kind of a

mess and get used to it because we're going to see more crypto regulation moving forward into the future yeah i mean i totally agree with eric this is literally just the first thing we're seeing of this and we definitely should all be prepared and expect this because as i said we shot first we are poised this whole industry is poised to interrupt very very deeply embedded institutions in the world and they're not just gonna sit by and take it they're gonna fight back some of them will join us some of them will be our enemy and we'll just have to fight absolutely a take from zuzu who writes a tweet as to why he bought punks and other nfts he says we bought punks and nfts because they are undeniably a part of the broader story of digital scarcity meme economy collective capitalism metaverse and mind

body dissociation anthony i'm going to let you uh give your take on this take first yeah no no i i totally agree with him here if you really think about it like how uh how much time do we all spend in front of our screens as part of like this metaverse digital kind of like uh world uh we spend most of our days in in that so you know why not uh kind of i guess like uh embrace that and then by and the way you embrace that is by being part of like the nft ecosystem being part of the metaverse um you know instead of buying physical kind of like products you buy digital ones or if you're like me you do both you know buy figurines and buy you know digital nfcs and stuff like that um but he's right i mean yeah sue's definitely on the money

here with what he's saying about digital scarcity in the meme economy like if you just see what's been happening over the last kind of like you know decade or so with the rise of social media on the internet it really is all about memes and and and kind of like uh the metaverse and mind body body dissociation but what crypto brings to it is that digital scarcity that collective capitalism and and things like the metaverse which supercharges everything that we've been building up to uh you know over the last decade or so the only thing i have to add is it's totally on brandon for isuzu to finish up this whole justification of to why he bought nfts with mind body dissociation which is like very on branford's like a little bit chad a little bit crazy and definitely

going to like trigger people's fomo and imaginations but also it's mainly just crazy yep yep all right this one this next one comes from me and i think it's pretty simple and i just go ahead and say that imagine thinking that trading jpegs isn't product market fit like it's such a simple activity i have this picture you have that picture hey do you want to trade them like you don't have to think about it much more than that we all traded pokemon cards when we were young like we did it we didn't question it then somebody could print off and and print you know make their own picture make their own pokemon card but it wasn't the same uh and so i think trading pictures is going to be just a thing that society does now i mean we've been trading pictures for

hundreds of years right like whenever you show a picture to someone or give a picture to someone like i mean technically you know you're not really trading it but you're like trading the idea behind it you're showing off like kind of um you know your picture to people and we do this online all the time everyone shares memes with each other it's like hey look at this meme hey look at my meme now we're just kind of like stepping it up and and kind of like bringing it bringing money into the mix where we're like hey i own this meme hey i own this collectible and i can prove it to you that i own it um and you know digital kind of like collectibles isn't something new it's been part of i guess like video games for a long time but what's new is the openness the

metaverse nature of it the kind of like collective capitalism as sue calls it so uh yeah i mean there is so much product market fit there it is even funny another one from eric connor which i think puts things very very well into perspective fun fact we didn't cover in markets this week but gold took a 10 dip this week which is a very large dip for gold uh no one really expects that level of volatility to come out of gold and so eric connor retweets this news and says no you can't buy jpegs and then you know in quotes proceeds to trade rocks it's very sobering reminder that gold is just a god damn rock it's just a rock and so like people thinking that it's weird to trade jpegs on the internet like we still have people trading rocks and it's

one of the most financialized instruments in the world yeah no i i think so and i think i don't know i'm super bearish on gold i think over time we're just going to see more and more gold of gold's value transfer into digital assets and i think that yeah people complaining that you can't trade uh you know jpegs but are trading rocks well yeah i mean that's just like the irony there is delicious [Laughter] and then the last take that we have comes from andrew yang who says cryptocurrency is one path to universal basic income as bankless listeners will know i'm a big fan of andrew yang i've been trying to get him on the podcast um he he thinks that there is an alignment between cryptocurrency and ubi fun fact

he actually uh tweeted this out after a couple days after i had a listener of the show send him a little note to andrew yang saying hey andrew yang please come on the podcast i believe that your movement that you're trying to inspire is actually done better on crypto rails maybe that was a coincidence or maybe he read that letter i don't know but andrew yang come on the podcast yeah i mean ubi has been something that's been talked about within crypto for a long time now there are a few projects out there trying to trying to do this and i mean i think he's right that it's it's one path to universal basic income but if we build it on crypto rails we can get it into the hands of of people like much faster than anything else so i mean i hope that he comes on thank

us i'd love to listen to him on on bank list like yes you know not everyone will agree with a lot of these policies or stuff like that but i think just listening to what he has to say is a very smart guy um you know would be worth a while so yeah andrew i mean i don't know if you're watching the roll up but if you are go on the bankless podcast andrew's brand is not left not right but forward and that is the brand that i can get behind and he can talk plenty about non-political things which means the content can be non-political all right anthony before we get to the meme of the week which there are actually two of so stay stay tuned for that uh usually this is where i ask ryan where what he's excited about but you're here instead so

anthony what are you excited about so i might give like a bit of a boring answer but i am like very very excited about what's happening in the nft space outside of the profile picture mania there is a lot of innovation going on there are a lot of people doing a lot of interesting things something that i saw come out the other day was paper clip dao where it's this kind of like dao with the uh with the initiative to essentially trade their way up from like a very you know kind of like valueless kind of nft to something worth like a lot maybe a crypto punk or something like that and this is basically based on the story and i don't know if this story is true but it's a story that a guy was able to trade a paper clip um you know

for various items all the way up to a house so he started with a paper clip traded his way up to her house and that's what paperclip dao is trying to do so with with kind of like nft so there's a lot of innovation happening in this space outside of the profile picture mania and that's what i'm most excited about seeing is like people using nfts for more than just like trading like you know i i think trading jpegs is a big use case but if you're just doing that and that's all i think you're limiting the potential of that technology absolutely um this is where you asked me what i'm excited about oh okay what are you excited about david well i'm excited about specifically the nfc avatar movement the thing that you were talking about you weren't excited yeah no i maybe i'm putting on the bull

market goggles but like the nft avatar movement is such a simple thing to understand and like also to some degree people are going to to like oh cruel cute penguins i'll put that as an as my avatar too oh wait like it cost six thousand dollars they're gonna they're gonna run into that that whole like but i can still put it as my profile but but at some point in time some nft avatar thing is coming for you in the sense that like maybe crypto punks weren't your thing maybe penguins weren't your thing maybe board apes weren't your thing but there's going to be something there's going to be something that is relevant to you and uh when i the when i fo mode into my crypto punk uh it happened right after people pleaser had

her um digital artwork featured in fortune and she had all these cameos all these like easter eggs to all these like crypto native people like and it was you know santiago santos but it wasn't his picture it was his crypto punk right it wasn't uh tetranode it wasn't his picture because we don't know what tetranode looks like it was his like digital representation and so if you want a place in the metaverse if you want a digital representation you need a picture that is you that isn't you uh and i think that as the metaverse grows this whole nft avatar movement is also going to grow and grow and grow and that is what gets me really really excited also penguins are cute yeah i mean i agree with you even though i said that i'd like seeing more

innovation i'm not not to say that i'm not excited about this kind of like avatar or peripheral picture movement i think that it's definitely there's definitely a lot of value there and it gives people a sense of community as well all right anthony are you ready to get into the meme of the week uh-huh uh-huh i think i know which one it is are you sure because i actually have two of them and i'm not sure you know which one i'm about to show up first all right here comes okay i don't know the first one this one this one's made by i'm pretty sure michael wong but i could be wrong it's it's the is this a blank meme uh for those that are on the podcast it's the guy looking at the uh looking at the butterfly and uh you always there's this caption is this

something that it's completely not and that they quote this uh for this particular meme is is this a broker it's a broker yeah i mean under the knew that that new law like pretty much everyone's a broke light so like my dog's a broker you know sorry sorry mate you're heavily regulated now you're gonna have to go to jail for for brokerage services like i it's yeah i mean this meme is pretty funny it encapsulates that well all right and here is of course the meme that i think that you thought was coming and it totally is here it is anthony you want to talk about this meme this is a very very good meme david like i have to applaud you on this one my friend uh this meme like for those just listening in is basically the grim reaper going

door to door uh and like killing who's in the room you know first we start off with the the narrative that ethereum will never work or that's dead now obviously ethereum works the beacon chain will never launch well dead again one five five nine will never ship dead and there you have two doors that are still uh remain to be opened the merge will never happen and eth will never flip btc now you have um these in the wrong order i think oh spicy wow i actually i actually think that the hype from the like when we actually get a date will be so grand that we might actually see a flip btc before the merge happens so it's gonna be interesting to see if you have these doors around the wrong way which i think you may you might just th the thing about that claim anthony is

that's a very precise claim that is going to like we're going to figure that out in like the next like three months or so you think that ether will flip in bitcoin in like three months give or take not in three maybe not in three months because i or something well we'll have to start it started the process by then i think i think the process started a year ago um but i i think that the merge i mean the the soft the soft range is q1 2022 it could go to q2 i don't know but i think with at least within the next 12 months like at most there will be the merge happening um but the thing is is that that's a lot long time like eighth is only i mean it's it's a bit more than two x away i think like 2.3 x away from

flipping uh bitcoin um and like the momentum is there like it's really really there if we break that seasonality in q3 q4 i mean i i i i'm pretty pretty much like very confident like 99 confident that we will see a flip btc before the merge happens if you know a few different things go right but the momentum is there i just it's undeniable and i think that the narrative is there the merge uh you know as we get closer to it more more and more people will learn about the fact that we're about to cut issuance by ninety percent do three bitcoin hardenings 12 years worth of bitcoin harborings in one foul swoop like literally block to block one block we have proof of work the next block we have proof of stake and then 90 issuance reduction bye-bye uh you know all the

kind of like um issuance and hello deflationary ethereum it's just too much maybe i'm i'm too in the weeds here but like i'm gonna keep talking about this for a long time and i hope a lot of people uh you know read my tweets and and see just what's coming because i mean a lot of people this is maybe a bankless exclusive i've never said this before but one of my top missions of being involved with ethereum is to help it flip bitcoin because i don't think bitcoin deserves to be number one i believe ethereum deserves to be number one so that has been my mission for a very long time so i'm obviously very bullish on the flipping well bankless listeners will probably tune in to the fact that ryan and i definitely lean to the ethereum side of things but we do try and keep some sort of of balance on

the bankless show but not today not today at all well i mean me saying that like bitcoin doesn't deserve to be number one doesn't mean uh that i don't you know get the value of bitcoin i just think that ethereum offers much more value than bitcoin does so that's kind of like my view on it no and and i've been saying on the on the roll-ups that uh you know that whenever we talk about the eth btc ratio i say like oh the we are at historically high levels and we have been sustaining these high levels and if we're not going to dump on the eth btc ratio then maybe we're just going to like hang out here and then go up even more i don't even know we'll we'll see i i'm actually very very cautious about that because the seasonality is very strong so i don't

want to be quoted in six months time when the bitcoin ratio has gone down saying that i don't think it's going to go down but definitely you can quote me on the flipping like any day i don't care like i i've been saying that for ages i am on the flipping boat 100 anthony thank you so much for helping me go through the news of the week and anthony you do this every single day every single weekday at least on your youtube channel the daily gray you want to give that a quick plug and tell you tell people what people talk about or what you talk about on the show yeah yeah yeah so yeah i mean as you said i do the the same thing we've done i guess like every weekday just covering the last 24 hours worth of ethereum and crypto news so yeah people can go check

that out the daily youtube channel and i also put out a daily newsletter covering the biggest thing one but one of the biggest things happening in the ethereum ecosystem as well uh you can find them both if you just google the delegate you'll be able to find them and we will have those in the show notes as well that is where i get a lot of my information every single day as a trusted source for all of ethereum defy all this good stuff and really good analysis from someone who has been in the community for longer than i have so anthony thank you for all the all you do at the daily way yeah thanks for the kind words and thanks having me on the roll up again hopefully ryan will stop slacking so i won't have to fill in for him anymore but no no i enjoy this and ryan deserves

a break i mean i i you know i saw on twitter the other day he actually has a lower body which surprised me a little bit but um you know i was so surprised who let him out of the house yeah that's it that's it yeah we're gonna have to add that link to the show notes as well so listeners can know what we are talking about all right everyone thank you for tuning in to this friday edition of the bankless weekly roll up as we all know eath is risky crypto is risky defy is risky you can lose what you put in we are headed west we're on the frontier we are it's not for everyone but we are glad you are 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