ROLLUP: TikTok x Audius, Penguins & CryptoPunks, Robinhood Crypto, Uniswap Treasury (August 20)

Transcript

[Music] hey guys happy third week of august it is time for your weekly roll ups the most exciting time of the week friday morning i hope you are ready david are you ready to dig into the week that was crypto absolutely like always there is always so much news to talk about and unpack so much drama happened this week so much happened in the markets and we are going to go through all of it in the friday weekly roll up oh man i'm excited uh david uh before we get into it we should talk about tracer dow there's so much going on in the bankless world too david we had a hot panel about dows earlier in the week the best dow panel i've ever heard i think with our with our panelists there's also opportunities for folks listening to

bank list to get involved in dallas we've talked about the various styles that bankless is running and other things our friends at tracer dow they're trying to launch a perpetuals product that's coming out in september and they are looking for dow contributors dow governors if you are interested in getting involved in the early stages of a doubt that's building out a new d5 primitive you should check that out there's a link in the show notes just click it it'll take you to the tracer doubt discord and you can figure out how to plug into that project if you want to get in at the very ground levels of a brand new dow which is it which is adding financial tooling onto almost any single uh erc20 asset on ethereum so long as it has a price feed uh tracer dow is the dow for you so if you want to

be sort of a founding member an early member of tracer dao get involved all right david are you ready to get into the markets absolutely starting with the bitcoin price which started the week at roughly forty six thousand five hundred dollars immediately on the the monday or tuesday of this week jumped up to forty eight thousand dollars and then lately has fallen down to forty four thousand five hundred and then back up to 45 600 where we are right now so a little bit down on the week with bitcoin down on the week it was up last week though a bit so we're sort of i guess maybe flat on the two week ish something like that uh let's talk about eath price more or less the same story started the week at roughly thirty three hundred dollars it didn't peaked a little bit higher than that early in the week but

has fallen down has flirted with a sub three thousand a dollar level for ether a couple of times in the last couple days but right now we have our head right above the three thousand dollar market three thousand fifty dollars three k and above i'm feeling okay on the price of eth it doesn't feel like uh anything bad is happening uh we'll see where this continues i guess more crab market season we're almost at the end of the summer too david so i wonder what september will bring we'll have to see um how about eath bitcoin the ratio what's that telling us continues to range between that .08 and .055 level currently coming in at point zero six seven uh so higher in the middle area of that range uh ether reclaimed point zero seven earlier this week but is currently

uh below that at the very moment um but definitely just a crab season again at this higher plateau uh from on the eth btc ratio what's all-time high for each bitcoin ratio it's like about 0.14 huh if you look at coinbase yeah 0.14 0.15 i think other exchanges have it as high as 0.155 but again it was just a flash and a pan for a brief moment right so the ratio would have to essentially double to be close to all-time high range it hasn't done that since 2017 june of 2017. so that would be i mean we're coming up on uh you know over three years um so we'll see how that plays out how about uh defy so let's talk about total locked value in d5 this

is going up lately um in the 80 billion mark last week i guess now where are we david for the excluding this week the four weeks prior total locked value uh in d5 has gone has done really really well it started at the low of roughly 55 billion dollars and then climbed all the way up to 85 billion dollars we've traced a back a a little bit back down to 79 billion dollars locked in defy but still has has claimed reclaim some really high territory with total value locked in d5 are we flirting with all-time highs here i think we are pretty close pretty close uh i mean we definitely need some asset prices to go up to really reclaim all-time highs but we are definitely within striking distance that is for

sure all-time high around 88 billion and uh we're pretty close to that so wouldn't take much to get to 100 billion david um let's talk about defy tokens as measured by the d5 pulse index how are we looking on the week yeah started the week at around 370 380 maxed out at 440 dollars in the middle of the week and now we are back down to roughly 395 dollars per dpi token uh so a week of volatility with the dpi but we're kind of back to where we started maybe a little bit higher let's take a look at this ratio that that reveals whether we are in d5 season or whether we're in each season and uh what's this ratio showing this week

david yeah coming in at point one two nine five five really annoyingly teasing me with being right below my 0.13 number i will i will say below below yeah i know you i i didn't have to say it i already said it um uh emphasize that blow it's definitely nft season lately and dyc's defy um the d5 arena of ethereum has definitely taken a back seat um but i would like to remind people that when things are quiet it's definitely in in theory when you would want to be allocating because you don't want to allocate into loud things you want to allocate into quiet things so if defy is being like kind of back burnered or forgotten about and this is the low mark

of uh dpi versus eth coming in at you know point one two point one three uh again i feel really good about uh my almost bottom call the the i think what david's telling you is you don't buy nfts anymore buy some defy tokens right these nfts are too hot is that what you're saying are you saying both nfts are really really frothy but we have also learned that like you can we i thought chain links can always get frothier i thought chain link was frothy at two dollars i thought train link was frothy at five dollars i thought chain link was frothy at ten dollars and then it got up to fifty dollars and it was really frothy um like to some degree like it can get frothy and stay frothy for a really long time um so you know to me david defy tokens

at least the good ones are buy and hold for the long run they fit the classification of bitcoin and eth in my book which brings us actually to the bed index which is essentially that combination of long-term holes bitcoin a third eth a whole a third and dpi a third what are we looking at on the bankless bed index on the week up or down clocking in at 142 dollars it's a down on the week but on the month it's up two percent and like we say oh no excuse me it's up two percent on the week on the month it is up uh a fantastic amount like almost 55 percent on the month uh it started eighty four dollars and then it maxed out at 188.

and we are coming in at 142 dollars for the bed index again the best index in all of crypto that's your buy and hold don't even have to worry about anything else you say in the show um david let's take a look at this l2 beat is pretty hot these are these are some metrics we're starting to include in the market section because this measures how much value is locked inside of ethereum layer twos and what we mean by it uh layer two is um genes that are completely secured by the ethereum network and using the economic security of the asset so this wouldn't include right now anyway polygon things like that but uh looks like we're up up lately this is the 90 day here's the 30

day still up on the week almost 770 million locked in layer two that's kind of a good sign yeah and again this is definitely riding on the back of the dydx token which really incentive incented a lot of activity uh and there's also some new players which i had never even heard of nah me which is a layer 2 project that i have no i've never heard of that before all of the tvl the million dollar tvl is actually their own token so it's not really the best signal i would discount that one i would definitely discount that one but look at optimism clocking in at 12 growth on the seven day uh seven days breaking a hundred million dollars deposited into

optimism so congrats to the optimism team i bet you i have a my gut take is that's probably a lot of uh uniswap uh tvl being captured there but there's definitely room to talk about synthetics as well um but overall you know l2 is really starting to gobble up some value diversify had a good week too up um 33 on layer two so we'll continue to monitor that of course uh optimism hasn't gone fully generally available so it's just in sort of this limited beta season same thing with arbitrom i can't wait until arbitram enters the ring last i heard david they said sometime in august august well look third week of august how many more weeks we got like we got

one more week man we'll see um they're gonna they're they're gonna [ __ ] excuse my language they're gonna buzzer beater absolutely it's gonna be the last day of august yeah why not um anyway so more layer twos are entering the the ring i think this is just the start of maybe layer two summer just sort of expanding we've been saying that when does summer end yeah september summer summer ends when you don't layer two like value yeah it goes over five billion let's say we'll say that uh i don't think we're that far away though to be honest um all right let's talk about this burn man i can't get enough my favorite website on the internet right to be honest and do you see what they added right uh simulator yeah yeah yeah have you been

playing with them i'm yet to press that button and have it not be negative oh i thought you were going to say i'm yet to press that button i was like what are you with how do you not how do you wake up and do it so anyway for for folks that can't see our screen this is basically a button on ultrasound.money you can press it and basically it simulates as if the merge was here if proof of work was turned off as we believe it will be q1 q2 next year sometime 2022 what would each issuance be and it turns out if you take the burn and you set some parameters and like again choose your own parameters but these are some fairly conservative parameters 20 20 gray 10 million each

we'd actually be burning negative 1.1 eth on an annualized basis that my friends is ultrasound money that's what we've been talking about the whole time and that would be the case given the amount of eat we are burning these days um at a 1.7 million eat per year burn rate pretty impressive 1.7 million burn rate with a 0.4 million issue rate so a global net deflation of 1.1 percent and then if you are also an individual who is staking eth you also get your 5 to 8 percent of new eth on top of that while the global supply is reducing by 1.1 percent

this has always been my long-term retirement plan ever since i figured out what this whole ethereum thing is and so it's real nice to see a plan come together you're not really ever going to retire dude producing content i'll talk about it though [Laughter] do you know what's you know what uh if someone wants to understand eth you know what i think they could just do is just go to this website right and like every single one of these gauges and dials if you don't understand what they do what they mean what they are why they're important learn about that read the faqs if you understand everything on this website ultrasound.money then you understand eth you understand why we're saying like 10k eth is like

just the start right you understand why we're so busy short-term price target come on i just think the reason ethan's not already 10k or higher david is because there's a very limited set of people who actually understand this website yep yep that's the secret goes good job ultrasound money folks if you can explain ultrasound money like the amount of edge you have over just the universe is pretty insane edge over the universe all those aliens out there speculating the best asset in the whole entire universe yeah not galaxy universe david's stopped short of the multiverse so you know being conservative there um all right gas price estimated from a hundred thousand

blocks because there's ether and other multiverses by the way okay okay thanks for adding that i'm sure people are curious um less volatility now that we have eip 1559 what explain that to me right so eip1559 in addition to all the things that it does one of the things that it does is it helps gas price estimation uh and the moment that eip1559 got included into ethereum we were actually able to see that with on-chain data and so what we're looking at is we are looking at gas prices to get included into a block and on the left before we have eip1559 the ranges for estimated gas prices would range from anywhere between like at the lowest two to five way up to the highest which is 1200 gway uh and then

as soon as eip1559 got introduced all the gas price floor got elevated to about 20 uh great gas and then a significant amount of the gas price ceiling got chopped off and got somewhere between you know 80 to 100 grade there's definitely some spikes up to uh up to the on the upside but like everything has gotten condensed into a much more narrow band of gas price inclusion and it's very important to note that this is before a significant amount of uh eip1559 type transactions are even yeah we're rolling 20 or 30 now aren't we yeah metamask just finally rolled out eip1559 support and so i expect a significant number of

transactions to now be the of the eip1559 type but the data that we are seeing here is before that uh and so as we approach like a hundred percent of transaction eip159 transactions uh this band is going to get even narrower and narrower that's good less choppy good this is good ux right volatility yes that means like uh you're paying 20 way for for gas right now and an hour later maybe you're paying 25 gray something like that rather than what we have seen in the past is like super choppy suddenly it's in the hundreds although i will say there still are these spikes upward david in fact you like screenshot it this crazy spike upward i don't think i've ever seen like

if we pre eip 1559 if i saw gas price exceeding 2 000 gray i'd be like oh red alert crisis what's happening you know cdps are being liquidated oh my god exit all markets yeah crypto's dead well so this is actually just a nature of what's going on in ethereum at this present moment and so i took it i happened to take a screenshot at this moment this nft drop happened uh it was i hadn't even heard of the nft drop um it all it sold out in under like five minutes or i think i think it's something as small as like 15 blocks or something and so there was an insane amount of demand and congestion in a very acute amount of time and if you remember our eip1559 uh podcast with hazu he was

talking about how the uh how block size can increase at twelve point five percent uh per block so if if the block becomes completely saturated base fee goes up by twelve point five percent uh and what he was talking about with that uh is that that 12.5 percent can compound really really quickly so in the space of just a few blocks gas fees went from like you know 50 up to 2500 uh because that 12.5 percent compounds really really quickly and so while we do have um volatility dampeners in block inclu gas fee inclusion you can still get these spikes if there is all of a sudden an insane amount of demand for some reason really really quickly

and so like nft drops are a very concentrated amount of demand and you see the flexibility in in the base fee um by the eip15599 metric uh taking taking uh shape here so you still do see these spikes but they settle down they settle down faster right look at the volatility difference it's just like we still get the spikes but we get some settlement a little bit quicker david let's talk you said an nft drop man uh nfts it's nft season nfts are hot look at this nft monthly volumes in january 2021 there were 17 million okay respectable look 17 million we would have been pleased with that in january and i think we were nft monthly volumes in august 2021 848

million month is not over yet the month is not over yet okay this is going to exceed a billion like wow that's crazy that's 848 million on the 19th or excuse me the 16th of august so just one day over halfway through the month we are like doing a 3x on like the previous month's volume uh and so like where are we going that wasn't even including the drop that we were just talking about just now right or all the other drops um yeah the the volume on nfts is absolutely insane uh and that's kind of why i was saying earlier that nfcs do feel kind of frothy but also what i was saying in the market monday this morning is this like nfts are such a simple concept to think about if you don't think about it it's like oh

humanity just trades pictures now like oh okay i guess we do this and so it's such an easy subject to get behind if you don't think about it and i think a lot a large portion of the world is just not going to think about it and they're just going to go on to open c and they're going to see a picture normal and they're going to see a price tag and then they're just going to hit by yeah it's it's like technology just makes weird things normal that's what happens right like it's like the you know getting in a stranger's car right that's freaking right bat [ __ ] crazy like how crazy would that be in the 90s no don't talk to strangers don't go in somebody else's car you don't know no don't pay 100 000 for a jpeg yeah don't uh but now it's normal right that's the

thing nf nfts let's talk about openc because that's a huge nft story here's the headline though david is open c has now recently passed etsy etsy in volume 100 billion so far in august 1 billion in august 1 billion sorry not 100 billion that might be next august 1 billion in august bigger than etsy uh nfts are rapidly catching up to all of ebay wow web 3 starting to challenge web 2 in cummins people didn't see this coming how fast that like this is happening open c is sort of like the ebay for nfts and man a billion in one month it's insane and it's in the comparisons to real life companies like

etsy and and ebay are really really nice to kind of get an anchor point but we also have to remind ourselves that like the reason why it's so easy for openc to get so much volume is because like they don't have any inventory people on etsy have to ship things the last thing i bought on etsy were like these massive table legs that came from europe and cost me 150 in shipping and it took two weeks c is just transferring a digital asset from one ethereum address to another so it's natural that these things can scale way further and so like while that while openc is like finally competing in volume with like these legacy kind of like akin platforms i actually expect openc to be like many many orders of magnitude larger than these things just by the

nature of the ease of trading digital assets i think people see this ascent and many people outside of the industry like will dismiss it as a bubble as they always have with crypto maybe it is maybe it is but like the bubble come back the bubble comes back right it's like a real bubble is something that doesn't come back like everything's tulips i mean tulips never came back they had like the you know their pop and then as financial assets yeah right exactly there was never another tulip bubble but uh nfts crypto assets just keep coming back so even if this is a short-term bubble like nfts are here to stay it's pretty impressive all right man that's it for markets guys we will be right back talking about releases talking about the news talking

about the hot takes for the week getting to the meme of the week which i know you're waiting for but before we do we want to thank the sponsors that made this possible living a bankless life requires taking control of your own private keys not your keys not your crypto that's why so many in the bankless nation already have their ledger hardware wallets which makes proper private key management a breeze but the ledger ecosystem is more than just a secure hardware wallet ledger is the combination of the ledger hardware wallet and the ledger live app and if you're used to seeing all of your crypto services and favorite d apps all in one place ledger is where you want to be not only does ledger let you buy crypto assets straight from the app but it also hooks into decentralized exchange aggregators like paraswap which

makes sure that you are getting the best prices on your trades without your assets ever leaving your control defy never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all the defy apps that ledger live has and stay tuned as more and more apps come online and if you don't have a ledger hardware wallet what are you even waiting for go to ledger.com grab your ledger download ledger live and get all of your d apps all in one place 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 uni-swap dow apply for a grant to uniswap just look at the size of the uniswap treasury it's almost 3 billion this mountain of capital is looking for labor do you have something of value to contribute to the uni swap dal no matter

how big or small your idea is you can apply for a uni grant at unigrants.org and help steer unit swap in the direction that you think it should go that's exactly what we did to get unit swap to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring bankless all right guys we are back with the releases let's start here david uh d5 is one inch that is the one-inch aggregator across centralized exchanges gives you some great pricing on assets they just launched on optimism so we're getting sort of a the d5 money lego primitives now we're getting the aggregators that sit on top of them on layer two pretty cool uh absolutely and the interesting thing is that i'm sure one inch is also going to deploy itself

on other l2s so we're gonna have the same aggregating teams with aggregators on different l2s i want the listener to question ask themselves what happens next when aggregators are on different l2s i have an answer to this yeah tell me we need an aggregator across all of the ltu's don't we an aggregator aggregator yeah we need a layer 2 aggregator i wonder if they'll get into that space i know there's a lot of it requires a bit of different technology right requires some things that like connects and hot critical are doing with state channels this sort of thing but we're going to end up there i wonder what on one inch plan what their plans are for this yeah it's definitely coming that's for sure

let's talk about this balancer launches two things meta-stable pools number one and the second they uh launched a partnership with uh lido lighter like fido on um a metastable pool incentive program okay break this down for us what is balancer up to right okay so two separate announcements in the same post so we're going to cover them both this first is their meta stable pools which is basically a basket of various yield bearing dollar instruments and interestingly yield bearing in different routes so some dollars are in like uh curve generating dollar fees uh by being an lp um other dollars uh dollar tokens are like c die out of out

of coin base and so these are things that are all generally about a dollar but they're all yield bearing and so now they're in a new product from balancer which is a new dollar stable token token uh what they say is that uh new stable new usd stable are just a a set of nested other stable coins die uscc usdt um and this is uh not only offering a news dollar stable coin which is getting yield but there's also offering even deeper liquidity on these stable coins in the first place so that's the first announcement composability we get all the things this is the beauty of money legos now we've got a new uh i guess stable coin that is composed of other stable coins through through balancer through the male

magic of balancer so what else do they do in david yeah so their partnership with lido is trying to bring liquidity to staked ether which is the whole point of lido lido is a staking as a service dow and so they you can deposit your ether and get staked ether back and then a balancer has opened up an ether to stakes ether pool so that if you just want to stake your ether and don't want to be like burdened by the by just going into lido and staking it yourself you can just go to balancer and swap your ether for a staked ether and then boom all of a sudden you have staked ether and so the liquidity in that pool is getting bootstrapped as we speak um and there are some lido rewards for people who provide liquidity that's

super cool tax event though maybe depending on your jurisdiction probably so fyi on that guys um gotta figure that out i don't know if if the irs can even figure that out they have no idea like absolutely yeah they're just gonna tell us to fix it and we're gonna be like yeah what do we do just do your best guys uh all right let's talk about this i think this is big actually david galaxy digital launched a defy index tracker with who with bloomberg bloomberg the other the other uh be named media company david it's not bankless it's bloomberg um pretty big deal yeah pretty big deal though bankberg um joke

whatever we're leaving it in we're not cutting this guys um pretty big deal because i think everything that that uh bloomberg stamps you know their approval on with galaxy has to pass some regulatory bar and i think you included this david this is what it's composed of and you compared bloomberg with with bitwise which provides another index to accredited investor still but like very regulated index bitwise is doing there's a lot of similarities but there are some differences what would you point out here yeah go ahead and click on that just so it blows up a little bit uh the big note thing i've noticed is that bitwise's index is has a lot less of uniswap dominance uh it has 32 uniswap whereas the bloomberg galaxy index has 40

to some degree the 40 and once inside of one index is like that's such a high number for an index that has so many different tokens in it and like i get it's probably a market cap weighted index um but like that lower uniswap dominance and bitwise is a little bit attractive to me bitwise has two percent more ave allocation one percent more mkr allocation um the the other tokens that they have that they share in there have a generally a matched allocation uh but the other thing that differentiates bitwise from bloomberg and galaxy is that they have ren curve and zero x and bancor in there uh wait who does it bitwise has those tokens in in their in their index uh bloomberg has uma and snx in their uh

index which bitwise doesn't have uh i'm wondering if there is a securities conversation to be had about this uh snx is a token that uh or maybe not securities but synthetic assets right so synthetics makes synthetic assets and synthetic assets are generally much more regulated by the cftc so it'd be interesting to hear why bloomberg and galaxy included snx and why bitwise didn't my hunch is it's the synthetic asset thing hard to know so somewhat arbitrary this is why i prefer dpi to both right like you don't even have to to worry about these things um but i think the good news here is hey this is a much better index than do you remember that that terrible index that

goldman put together a few weeks ago we talked about in the roll-up like it's like i don't even know have words to express facebook and have a single erc20 token like how stupid right and it's like companies this is much better and it's bloomberg and you know it's getting out there and uh this is this is good for the asset class and good for the space this was uh frank's take that this is a big stamp of approval for defy by the data giant uh bloomberg yeah the next tweet is what uh he says essentially these tokens all meet bloomberg's standards of institutional trading and custody readiness in the united states as well as quality of pricing which is just saying that defy is mature enough for institutional allocation

wow i feel much better about d5 now i don't know about you david but this stamp of approval is what i was waiting for hey frank said it i'm on board thank you bloomberg um david let's talk about this metamask we alluded to it we were talking markets but they are now supporting the roll out of eip1559 so they've been adding it to their wallet um but it's been sort of a phased rollout i believe and now it's it's i guess fully available i've not yet sent a transaction but there's a link in the show notes on how to send a eip 1559 transaction in metamask looks like it's pretty easy and he takes here nothing just a go get your learn on and check out metamask and see if anything's

changed yeah should be good um fintech getting into crypto so this is on the raised side fintech collective they just closed a 250 million dollar fund dedicated not to like crypto in general dedicated to defy what i think is interesting about this i don't know a lot about fintech collective other than they're a venture capital firm but they're involved in in fintech right and digital assets this seems to me david to be like the next frontier for fintech and investors are starting to come around to that they've made tons of money in fintech over the last decade and now they're shifting this to digital assets there's going to be as we've always said a d5 mullet a marriage

between the two you're gonna have fintech you have crypto and uh investment's going to like um you know push towards both of these things i think the banks are going to be left out in the cold as a result of this but we're starting to see the capital flow traditional fintech investors start getting into d5 it's kind of cool this is just uh investing in the d5 mullet so the d5 mullet is getting a little bit more mullet tier um i think i think we could combine here a little bit more hair yeah i think we could combine the words defy and fintech into d fintech and so this is what they are investing in into they are investing into d fintech wow did you just come up with that yeah i just came up with that yeah dude that is that's why we have you know

is that going to stick i don't think that's fantastic defensive you don't know what's going on tech tech you guys there's such a ready marriage between these things that like it defy is fintech it is financial technology and that technology is uh you know blockchain is smart contracts is ethereum so like it's a natural inclusion into a fintech stack yeah to be honest what's what's super cool is like i've what we've always said is like fintech is just lipstick on a pig and the pig is the banking system right that's what we've been doing the last 10 15 years putting reapplying lipstick on that ugly pig what's cool about crypto is like it's not no longer a pig i mean something much more beautiful to put lipstick on

it's a unicorn it's a beautiful beautiful unicorn and you get to put lipstick on it's not even lipstick it's just part of the unicorn and um so i am this is why we are way more excited about crypto it is bottom up free design of the money system rather than just just another layer on that ugly old pig they didn't they didn't have too many details as to where this money was going but they did call out the ethereum defy ecosystem specifically which is nice to see because when we see people like coming into the space we definitely i definitely get skeptical as like okay they're investing in defy are they investing into defy on bitcoin is that what they're doing are they are they making that mistake or is it real define it and from the few comments that

they have in this article it sounds like they are investing in real defy so that is uh 200 million will be going into investments into early stage companies and then 50 million will be actually allocated towards a defy fund which is probably like buying defy tokens there you go and now it's time guys for us to give our weekly invitation for you to go get a job in crypto please do have you checked out the bankless jobs board lately got some hot stuff on there senior product manager at immutable over nfts that'd be an awesome job a full stack engineer at pallet as well there's a ton of other job opportunities go check that out on the bank list job board you'll see a link in the show notes right you want to get stuck in the

legacy world the whole point about this whole entire movement is we're leaving that behind if you're not coming with us then we're leaving you behind too yeah come on come with us it's great we want you on board all right man let's get to the news the first is this robin hood remember robin hood gme fiasco some people still use it revenue from robin hood from their cryptocurrency alone jumped to 41 of their total revenue like robin hood's big company just ipo'd 41 of their revenue coming from crypto blows me away think about how many crypto assets that robin robin hood has on this platform it's only a handful and i'm not even honestly not even the good ones yeah and so like it's going to buy some ethereum classic david right and it's

which is categorized inside the ethereum family inside of robin hood so despite how terrible robin hood is as a a crypto asset like trading platform 41 of its total revenue is coming from crypto which there's a number of takeaways to be had uh the people that are using robin hood are increasingly becoming crypto people so they're getting more and more exposure to crypto more and more inclined to buy crypto assets think of all the all the traditional assets that you could buy on robin hood like all bajillion of them and yet they prefer crypto assets uh and we know that robin hood is a terrible trading platform for crypto it's it's needs to make some significant improvements and maybe finally having so much revenue coming from the crypto side

maybe they actually more intentionally go down the crypto rabbit hole and improve their god damn crypto product offering which is this is my take it's like i mean we could lambast them for you know how terrible it is you don't have the ability to withdraw unless they've changed that you can't even withdraw your crypto assets right so like good luck getting into uh anything defy but actually what i think this will do is exactly what you said is it will catalyze them to to redouble their efforts and invest in real crypto infrastructure add those features that users want and this is just going to be another onboarding into um like crypto native platforms like you start with robinhood and then where do you go i actually wonder i mean most of the people i think in the bankless

journey started with the crypto exchange like coinbase and gemini at least those are the stories i've heard have you actually heard of anyone coming through and becoming more crypto native through robin hood getting their start there yeah there are people i know who buy and sell crypto on robin hood they don't have like the the commitment to being like a d5 person or a crypto person or a bankless person yet um but they do invest in crypto via robin hood uh they just like that price exposure yeah i mean it's just where all the they're like their ether and bitcoin and doj coin holdings are right next to their amc and gme holdings right so yeah it's it's meme stuff anyway it's cool it's it's good if anyone from robin hood who works at robin hood is listening to this

let robin hood know that ryan and i will straight up give you all the free advice that you need in order to make the best crypto product offering we will interview you let's get the ceo of robin hood on bank list we will talk about what you guys could do to capture the crypto market go take it away from coinbase we will double your money i promise that's a bankless promise sir that's uh the dow promises that not us all right um sorry pink was stout uh ethereum stuff this is cool on uh the end the beginning of layer two summer we've got polygon which has a side chain they've always committed to you and promise to building a true layer two in the future they just purchased hermes my

understanding of hermes david is they are you talk to them at ecc they are like a um a layer two solution that is building a zk evm so a zk roll up which is kind of a different class of roll-ups um something that vitalik thinks is incredibly promising others in the ecosystem do as well i think what they're doing is they're doing like a talent acquisition technology acquisition so that they can get a layer two to market that much faster and just add that to the polygon ecosystem and toolkit so this is like an accelerant for them to do that polygon's got the users hermes has the tech you combine those things together and you've got something good i think that's the play here but it seems pretty interesting

what's your take i think you summarize it fantastically hermes has kind of been struggling to onboard users and and you know market cap and total value locked in applications uh whereas polygon has been doing absolutely fantastically in that arena meanwhile polygon has been like lagging behind in actually becoming a true layer two uh whereas hermes is absolutely fantastic in that arena and as you've said people are generally bullish long term on zk roll ups as a technology mainly because of the the power of of zk the power of the assurances that zk roll ups provides and so people kind of think that the long term conclusion of layer twos on ethereum are going to be of the zk

flavor and so polygonist is fixing its uh uh not not being a layer two issue and hermes it's fixing it's not getting any not getting sufficient adoption issue uh and so we're taking the best of both worlds and we're putting it into one scaling project what's interesting here about these like uh crypto native mergers and acquisitions is there's always a token uh component involved as well so there was a a hermes token and i believe that's going to be um you're going to be able to redeem that for the matic tokens in the future so they're not only purchasing like technology in this acquisition but they are also uh becoming more economically inside uh uh economically aligned which is super

interesting um david let's talk about this i think this is big hey i know you're a big tick tock fan i know you're on there all the time you try and pull me off of tick tock all the time i know um tick tock though pretty big deal they are partnering with audience um an audience has a token on ethereum they're also using the solana blockchain to bring sort of a decentralized open music streaming service to the market uh what have you read about this partnership uh that it's one of those things where the tick tock is a fantastic music sharing service and i'm there might be issues with tick tock and like sharing music that has uh some sort of like nation state copyright

issues on it and that's exactly what audience is really good at circumventing it's a decentralized audio storage system and sharing system and so this is a nice little marriage between these two projects um the other cool thing to think about is like all of these like social media um platforms uh are tapping into ethereum one way or another audience is one reddit is another one uh and there's another one that i'm missing that i can't think of the name of right now um but like big social media platforms are starting to tap into ethereum in different ways yeah they're growing out their own um web3 mullet maybe maybe that's what they're doing the social media companies um david let's talk about this well while we were sleeping sam's easy son

saved defy yet again no one knew he was doing it but he published his results afterwards can you talk about this story yeah absolutely the the best thing about sam sees the sun is that he saves all of our bags from getting rug pulled but then he also is a fantastic writer and tells us in in great narration in great detail how he actually did it uh so like the technical details on this went over my head sam as if as a prolific coder uh and if you're pseudo-anonymous also yeah uh and so he explained he explained what he you know his his takeaways from this and and basically his big takeaway is that uh the protocol that he saved was sushi swap and sushi swap recently came out um with their brand new miso platform uh and it on sushi swap are a

bunch of different products which in silo work perfectly and are perfectly secure but when you put them all onto the same like product offering on and you start to connect these contracts you start to accidentally create bugs and so while these things work perfectly and are perfectly secure in isolation when you de-isolate these things you actually create new bugs and so that's what happened with sushi swap there was over 350 million dollars that anyone could just grab for themselves sam saw it first and so he pulled the sushi swap team into a zoo meeting they had their war room they had their their plan and i think over the space of i can't remember how many hours but like under 12 hours i

think they had identified the problem come up with a plan and then saved all of the funds um the other big takeaway about this story read the article because it's just a great story it's a great like sci-fi story about ethereum like i said sam writes really really well um the other thing to take away from is that like paradigm is a massive investor into uniswap which is sushi swaps direct competitor uh and joseph de long at sushi swap and overall sushi swap and unit swap have had like a less than awesome relationship you know sushi forked their code in the beginning right right and then there's just been like jabs being thrown at each other on twitter but all when as soon as users funds became at stake all differences were set aside and they got all got into

the same zoo meeting and jabs were no longer thrown uh and they focused on saving 350 million dollars of user funds uh and so uh as again a scary story of like perhaps a near-death experience from sushi swap this would have significantly harmed sushi swap for a very long time this would have left a very bad scar um but it didn't happen because sam's csun is a good guy and really smart yeah absolutely super talented i'm glad he's a white hat rather than a black cat and like pulling these funds for his own purposes because somebody maybe almost as smart as sam cz's son might be out there might come along and might take um

do these sorts of things except exploit them and try to escape i mean we've seen some of that activity too it's another reminder look um this is the wild west right like when you deposit funds inside of a defy contract especially something that is brand new something bad could happen right right now what what's happened so often maybe lawless and some complain complacency is a lot of these d5 protocols have then restored the funds right they've sold some of their treasury they've found some way to uh it essentially provide self-insurance but these things can still happen and uh and you never know but glad we have sam out there watching over us um david do you want to get into this

story this is a uniswap governance tail i guess what we're reading here is a tweet it's a psa from dune analytics about a uniswap governance proposal that would let another analytics firm flip side crypto manage up to 25 million in uni tokens manage not take them all but manage them and use the yield to fund their own operations and the the story as of now is it's a governance proposal that's about to pass doesn't have very much community attention and so there's been a lot of pushback from the community who feels like this was sort of snuck in treasury bill style infrastructure bill style by the treasury like under the

radar and um suddenly crypto twitter is in a frenzy about it this is dc investor the growing precedent of using the uni token treasury for large cash grabs used that term large cash grabs to support pet causes often benefiting narrow groups is bad it's very bad he says and he cast his vote no what's your take on this story yeah since uh dune analytics and others have signaled about this vote the vote has flipped to be being voted no uh i believe uh oh if that is a real-time update oh we are neck and neck at 47 and .6 million uni tokens for and 46.9 million uni tokens against um for the conversations i've had lately it

actually sounds like the this conversation is much more nuanced than just a cash grab by a a a team who thinks that they can provide some amount of value to uniswop i agree that is the problem with having a three billion dollar treasury it actually might be higher at this point um it's like we have three billion dollars you kind of run out of ideas suspended on and so then people will be like well you can spend it on me uh yeah i'll take i have like millions and i'll contribute a little bit of value um so that that might be an accurate take the other the other take to have is that like governance in defy is weird and very raw and not really very rough very popular right and so this governance proposal

you you kind of classified this thing as got snuck in i kind of think that people just didn't pay attention to it until like the final bell and so people realized that this was happening because people voted for it and so people people like uh you know submitted this proposal and then they probably voted yes on it and then they got enough yes votes to actually become get passed and then kind of in the last hour people realize like hey this is just this team like asking for a bunch of money uh no this shouldn't happen this like people are just kind of using the uniswap like treasury as like just trying to like it like dc said a cash grab um it was and we saw this before with the um um the kind of same kind of drama

with the defy education fund where you know they just voted themselves a bunch of money it got accepted and they dumped it so there's a little bit of drama there so people are cognizant of this theme of this uni treasury becoming um just like you know a slush fund for various different projects um i don't think it's that bad um but there definitely overall needs to be a better conversation as to like what is appropriate to send money towards uh and what does youtube governance really want i think a lot of this falls down to like a pro process issues right it always seems like these things suddenly it's a fire alarm right right and like i don't think uh that the flip side crypto team um like snuck this in either uh even though that's that's what people

feel like but they feel that way because they didn't notice it until now right so these are some of the problems with token voting that need to be sorted out like is there a better process than just suddenly this made massive decision have 24 hours to vote people see it on chain like where were the governors before this of the united swap protocol did they already give input into the process um so i i really think dows and token teams token vote teams are going to have to learn from what's happened in the legacy space in the traditional space and how governance decisions like these are made so that we can put better processes in place and everyone is informed along the way or else we'll keep having these

types of problems and it will feel like it will feel shady even in cases when it's not because the process has been ill-defined the other thing is david like what's the incentive if you're a uniswap token holder right like i have mutual funds with some stocks like very little because you know who needs uh who needs stocks right but like i don't attend the proxy like the votes i don't i mean are you don't vote on governance on your boomer funds i don't right and like there you know there are proxies for this there are delegates for this but like i don't have time to get into the minutia of major shareholder votes what we're seeing is some

scalability limitations to like governors can't be involved in every single decision either so we have to find ways around that anyway all we'll say is it's all very immature at this stage there's a lot more that needs to be done on deep governance in fact metallic wrote a great post about that earlier this week i think we'll figure this stuff out as we go so in the as this story has progressed when i first checked it i saw that the four votes were larger than the against votes uh and then people like dude analytics and dc investor called into action and signaled their intent to vote against and then the against votes uh beat out the four votes but now we are seeing the four votes beat the against votes by a slim margin and i'm on the flip side

crypto twitter page and they are retweeting people who are uh signaling the uh who are just now signaling their intent to vote for the the flip side uh allocation of uni tokens and then also their analysis corbyn page a few other accounts the stanford blockchain club so this is perhaps it's contentious but it's not like this is all one-sided and there are actually a decent amount of people supporting uh the four side and the point the point i want to make is that like and i've always thought this was true about governance and i we saw this with mkr governance way back when is that non-contentious proposals get not very many votes and then they kind of just like sail right through with like you know a decent

amount of yes votes but like overall not very much participation like non-contentious votes get little participation as soon as something becomes contentious that's when you see people come out of like the cracks and actually start to allocate their funds to a vote and then all of a sudden we get more and more participation but like the unfortunate thing is and why this model's so bad is that it only happens at the last hour and so emotions get hot everything happens all at once people don't have time to like discuss and deliberate uh and so we need to fix that problem really this is the crux of the issue is that on contentious votes everything gets decided like in the last like six hours of the boat yeah fire fire alarm voting

is what we're doing with some of these things um all right david let's talk about this a proposal that's been shared um on lido governance to actually have lido start to i believe collaborate with polygon and provide a staking service for matic tokens what's going on here right and so lido is the the dow that is solving the liquid staking escaped ether problem uh and so uh you can stake your ether with lido but it's as a dow it could just be a generalized proof of stake staking as a service dao and so why not matic it's a it's a proof of stake side chain let's take matic tokens and let's allow for non-custodial staking of matic being a matic validator

is a lot more cap hardware intensive than uh a than um ethereum staking and so it's it's nice to just consolidate that into a fewer hands and this makes it a lot easier to became become a matic staker uh because of lido uh so this is this is kind of the bold case for lido is that anything that's proof of state can be staked under the lydo dao lots of things can be staked i think too and will be in the future um david let's talk about this this is a tweet from stani from the avi project there's a proposal to list dpi list that index inside of the ave protocol standing lists and pros and some cons here but what's going on with dpi in ave yeah dpi has had kind of a slow rollout with becoming collateral

which is kind of a bummer because i would love to use dpi as collateral uh it's an index which generally means that like you don't have single token risk um the big the big uh uh restrictor behind why dpi hasn't become collateral is because of what's donnie is highlighting here at the very end it's got a multi-sig signer uh minter but restricted by the consent of index co-ops and set labs and so there's like a centralization risk and so uh because index co-op has some admin controls over what and how dpi behaves um that is a risk that lending applications like ave or compound have previously not been willing to take but it sounds like ave is starting to like dip its toes into

being okay with a dpi index token becoming collateral i think also there's a decent ball in the index co-op and set labs court to fix this centralization risk i don't know if it's even fixable but i think that there's definitely some improvements that could be made but overall stoked to see index co-op tokens being added as collateral that is a really big step forward for the co-op stani do bed next it's a it's look it's a it's a bull case for index co-op and i think uh set tokens as well right compare those to the indices we're talking about from bloomberg and galaxy and even bitwise earlier can you do that with your bitwise index i mean love bit wise but

it's not crypto native it's not erc20 so it's much more limited uh that's why like the d5 rails is so much better for for anything that you're purchasing in crypto it's just so much more flexible i think it's going to improve at a far faster rate david let's switch to nfts for a minute let's talk about our friends the the crypto punks they are now fully on chain the images their attributes they're now stored in a contract fully on chain what does that mean david yeah so this is a good learning moment for people who are still just getting into nfts the image is not stored on ethereum so that image of the nft that you own is stored on a web 2 database somewhere there are a few nfts

where this is not true auto glyphs that is their big like claim to flame for auto glyphs that all of the data for the image of autoglyphs is stored on ethereum itself but punks have you know becomes so decently valuable that it actually becomes really just logical to actually take all of the punk images and actually put them on ethereum so no longer are you requiring whatever server that larva labs is using to store your punk images now the punk images are being stored on ethereum which really elevates punks to a new level that are because they are now fully trustless they use like almost all nfts are trusted assets in the same in the in the sense that you need that server to be online so you can actually

look at your nft otherwise it's just a token um i think this is a big problem for decentralized data storage could that could really uh this could that they could really solve that by having more trustless storage of images um but since punks are so valuable they just hit you know decided to spend the gas to put all punks on the actual blockchain so actually do you mean like the punks as like the jpeg itself is on ethereum davis yes in this case like that's not possible with a lot of art because right it's too large like is it because punks are decently small 24 by 24 pixels i think that's a very large part of this yeah okay there's not that much data that's that's super cool for i think crypto punks as well it's kind of a bull case

that it's so tiny that it can be fully encapsulated on the ethereum chain which is the most secure place to put it but other nfts can they can be put in other decentralized file storage right locations ipfs you know five file coin type locations um r weave that sort of thing but this is not that this is fully on chain directly on ethereum yeah right so like you know bigger images or or gifs even that you can't fit that inside of a single ethereum block so like you're not putting your gif on ethereum you would have to put it on something like file coin take that hash of the file that's on filecoin and append that to the nft and that's how you can get some sort of like trustlessness in your nft's image super cool all right let's talk about

this um zapper is allowing wallet avatar customization so now on zapper you can actually display your crypto punk if you own one of those or your board ape or your penguin um what's going on here people might notice in metamask when you make a new wallet or make any wallet you get like this like random generative uh icon that kind of identifies your wallet um but people are really into nfts and nfcs are kind of uh some of them are like these also these generative property icons like crypto punks like penguins like cool cats and so zapper is just allowing you to associate your wallet with an nft and while well this is like a fun kind of like ui upgrade it makes zapper a

little bit more fun a little bit more interactive i think this really indicates uh an early like tremor of a growing world of some sort of connection between social media and nfts i think that is like what we are really seeing here i totally agree with that but you know it's one one take i've heard from people asking me about this recently is hey like a year and a half ago two years ago it was it was always about what can i do to like um keep my address private like i don't want anybody to know that i own this thing and they said and suddenly the the advent of nfts it's like no one cares about that anymore it's always like you know your nft is in your etherdress and

so you're fully identifying your ether dress with your nft and you're kind of like you know flashing that around um is that a value that we've lost or does it matter what's your take on that stay tuned for the wednesday issue of the bankless newsletter where i talk about the serialization of anons on ethereum uh yeah no this is a i did not by the way guys i did not t david up for that we haven't talked about uh the wednesday article he's writing so no no ryan just teamed up for a very very important topic right uh and so uh i can i can take some time and kind of tease it if you want uh yeah if you want to just a quick tease quick tease so i read this book called seeing like a state and it's a book that kind of illustrates what it's

like to have the perspective of a state nation states like things ordered they give you a social security number they give you an address they you your business has a tax id number your car has a license plate number and a vin number uh every you know street has a name states nation states like things ordered uh so they and so they can know where you are and then they can tax you and then the book all goes all the way into like uh you know like crops they like crops very monolithic and ordered like every six inches apart and then if you really want to take this to the logical conclusion of a totalitarian state you see something like the matrix where like you have like fields of humans just being like sucked all their energy dry that you asked for a brief

brief anecdote so i'll skip that part but nfts are a serial number on ethereum that are unique that have certain properties identifiable properties on them and so while you can choose your own nft you are kind of becoming serialized as your identity on ethereum because nfts are unique nfts are not like erc20 tokens and so like you can trace an nft around the blockchain in the ways that erc20 tokens can't be traced and so we are while you said uh you know we all want to have our private wallets our private uh funds and our uh you know all of our private monies that is still possible but i think everyone is going to have a public address where they keep all their nfts

because if you ever want to share your nft if i if i share my crypto punk people can find that crypto punk token and then associate my wallet with it and so people are going to have their public persona identities on ethereum which are you know probably going to be their nft walls and then they're going to have their erc20 wallets which you know is going to be their private wallets probably um but the cool thing about ethereum is you actually get to identify yourself as you see fit right like do you want to be a crypto punk today or do you want to be a pudgy penguin today you get to choose unlike the nation state which just tells you an eight-digit number you actually get to choose what your your your ethereum serialization is yeah that's kind of a cool take and i

guess if you if you want to sort of bifurcate things and have something public and something pseudo anonymous of course you can with ethereum you just have to be careful right right you can't intermix things and trade one wallet with the other uh you have to be careful about that um that's cool david looking forward to that article man um let's talk about this pangu alert so penguins are now trading fractional penguins at least on slingshot that is a decentralized exchange i think they are on polygon if i'm recalling correctly but now we've got fractional penguins fractional nfts what's the story here yeah so we had andy8052 on to talk all about fractional on the ama and so all fractional is is taking an nft an erc721 token putting it into a contract with some spiffy cool

logic and then outputting a bunch of erc20 tokens which makes these things liquid and now slingshot is allowing uh it has enabled trading on a penguin kind of as a proof of concept um but now this one specific penguin is now liquid it's on like you said it's on polygon and this is kind of the story of the financialization of nfts you can put an nft into a wrapper and then turn it into a more equipped financial asset that gets all the perks that erc 20 tokens do on ethereum and so this is the growing story of the finance financialization of nfts starting with penguins which are super cute and that i love very cool guys like uh stay stay tuned for that story dial into that story of

fractionalizing and ft's i think it's gonna be a major theme in the future of the nft market um let's talk bitcoin david this is a tweet from hasu he said since people have once again been telling me that bitcoin fees have only ever gone up over time here's an update on the actual data this is a statement about the security budget remember security budget equals market cap divided by minor revenue and these are the charts that he's showing this is basically transaction fees in the red line block subsidy in the blue shaded area together those form the security budget of bitcoin this is denominated in bitcoin i think in this first chart and you could see it's going down over time denominated in

bitcoin as you would expect because of course every four years we get a happening this is that same chart i believe um in fees only and um you can see it's it's interesting how it's sort of how it spikes uh and it goes down it's unpredictable as far as like you know when the fees are going to come so 2017 early 2018 spiked all the way up um it's been you know like down recently david what do you think kasu is saying with these two graphs yeah the the first thing that he's saying is like he has he's saying that a bunch of bitcoiners are telling him that btc btc fees on a us dollar basis has only gone up

which is a little bit true but it's also very much not really true and bitcoin has tried to pull this same bs without about how ether has only ever gone down in btc terms but they're using a frame of reference of that 2017-2018 spike where the bitcoin blockchain actually got super congested uh and they they're doing the same things with when they compare how ether has never gone up versus bitcoin because they use a frame of reference from 2016 to 2017 but not going all the way back to the very beginning over the long term bitcoin dollar fees have kind of stayed flat and not which which is a not very high level except for the anomaly in 2017 and 2018 during the mania um when there wasn't defy on ethereum and there

wasn't scaling solutions btc blockchain was actually one of the ways that exchanges transacted value between each other and so it actually got congested and fees got really high for that one brief moment ever since then bitcoin security has entirely been dependent on issuance on btc issuance and so while we while we talk about how bitcoin has a hard cap we still it's still under a paradigm where issuance is securing it and it is yet to break free from issue from issuance based security it had one moment in time where fees on bitcoin actually represented a meaningful amount of security and even then it was only one quarter of the total amount of issuance and so haza was really just

illustrating how non-mature bitcoin is as a secure blockchain because it's it's still dependent on its like on its like pre-mature pre plea like pre-pubescent phase of like being dependent on like its parents to take care of it the metaphor being like block rewards and block subsidies and btc issuance is what's securing bitcoin yeah you know my my takeaway here is like the whole it's unsustainable right it's like and it's uh it's also unnecessary right so like i um i very much feel like bitcoiners bitcoin maximus refused to see this so has he would consider himself a bitcoiner and he's pointing this out so

like well done hatsu but they refused to see that the security budget of bitcoin is not sustainable at least it's not enough to be the world's most valuable blockchain by market cap they're going to have to adjust the protocol in some way we've been saying this for a while and now i feel like david on the back of like ultrasound money we talked to justin drake about this in the back of eip1559 the crypto industry is really inventing better ways to secure its network more efficient ways to secure its network so i don't know man i just um this makes me very bearish actually about bitcoin i'm generally bullish on bitcoin um as an asset i think it's it's it's got some properties

that um other chains don't i think it has an incredible mean following but if the bitcoin community doesn't wake up and realize that security budget is actually shrinking and that there are better economic policies that are coming to market that are going to out-compete them they're just not going to make it david like they're not gonna make it so um i hope they do i hope they do figure this out and uh but but transaction fees in my mind it's like everything we talked about with justin drake i mean they're too unpredictable and volatile it's a grade b fuel not a good fuel to power the the economic security of your blockchain and block subsidies are running out it's not going to be a problem overnight not going to be a problem next year the year after but

like we're playing for the long term five years 10 years 20 years i don't think you can make a sound money on just transaction fees if that's your economic security model plus there's there's an even greater conversation to be had about like the nature of what bitcoin is trying to optimize for and how it gets security right and so hazu follows up that tweet by saying like why look at the security budget and not other metrics as a result the budget allocated to mining should probably scale with bitcoin size to create the same attack disincentive 50 million if a million in minor revenue may be enough for bitcoin when bitcoin is 1 billion dollars but maybe not when it's a hundred billion or 10 billion dollars what he's saying is that like say

bitcoin 10 x's to uh what would i like 455 a half a a million dollars per coin this is what bitcoiners all think are happening just because bitcoin 10x is doesn't mean fees 10x because bitcoin can go up in price but that doesn't mean any more transactional capacity is going to happen on chain and so this is kind of why i think a a defy smart contract layer on your blockchain which puts block space demand at first and foremost a priority for the blockchain is how you achieve sustainability and that's what ethereum is does you need to prioritize fees because the more fees you get means the less you have to issue ultimately the purpose of a blockchain

is to sell blocks yeah it's kind of what you're doing and then you could feed that back into the one thing you have it's the one thing you have that is the the ethereum uh way of thinking but um anyway we'll see how it goes hasu ends it with this don't want to over dramatize anything the problem is a decade plus away but the facts are the facts i would echo that the facts are the facts not gonna be a problem tomorrow but face up to it someday they'll have to okay immutable uh last let's talk regulatory i think this is a conversation about regulatory and um immutable had talked about air dropping some imx rewards to its supporters but now they've had to sort of rescind and change that due to regulatory uncertainty they can no

longer drop their imx tokens to those of you who are american citizens sadly now good of them i think they're going to replace that with eth i believe rather than imx so thank you immutable really cool but what's happening man like i thought the sec was here to protect us are they are they just protecting us from gains are they protecting us from air drops they protecting us from buying low and like selling high because i don't understand what they're protecting us from when they're coming down on on crypto and uh americans can't get these airdrops liquidity mining all of these things that we are precluded from it's like it's like america north korea and iran these are the countries that don't get

the crypto industry has a fantastic power of just like stripping away like obfuscation and bs from a topic um and so if if we are asking we have to ask ourselves like why are we not getting these air drops because the ethos of air drops and started off by the uni-swap airdrop and and you know other things as well is that it need we need to put capital the things that govern over these systems into the hands of the people which is the most like populist uh bottom-up pro-consumer thing that i can think of like let's put power into the hands of the people and remember capital is power governance equals capital equals equals power and as a result of the united

states regulations immutable is not giving its uh users power over the system right and so the by stripping away this what's really important here david is like you said the word giving this is a free gift right you're not talking about selling to anybody there's no commitments they can't even give the free gift to you continue sorry and and why this is happening is because of regulations which are largely imposed upon the world uh because incumbents uh lobbied for those regulations in government to protect incumbents if we if we just set up rules about how like individuals can't receive like capital or equity in stuff uh then like whoever

already has all the capital and equity and stuff gets to keep more of it uh and so to me this is just illustrating how incumbents are like not even allowing an entirely new financial world which is a separate from the nation state we have to actually still follow these like incumbent protecting rules it wouldn't leave a bad taste in my mouth if honestly they just said hey we're just trying to protect the system we have and that like the incumbents that we have but they do it under the guise of investor protection david that's what pisses me off let's talk about um gary gensler's comments on defy i'll read this quote he's the sec chair right now projects that reward participants with valuable digital tokens or similar incentives could cross a line into activity that should be

regulated no matter how quote unquote decentralized they say they are i don't want to take this one quote in um like i think we have to take this quote in context which is like gary gensler seems to be hinting about um defy an awful lot seems to be concerned about d5 in his statements in his recent speeches and he actually talked about trying to enforce this maybe going after devs and founders he said there's a still a core group of folks that are not only writing the software like the open source software but they often have governance and fees mr gensler said there's some incentive structure for these promoters and sponsors in the

middle of this this again is regulators trying to find out who the centralized actors are and put the existing apparatus security uh securities exchange apparatus for them too it's like here's the thing david it's like there is going to be such a thing as constructive regulation for this industry and for d5 like we want the sec to go after the scams like please do there are some obvious scams in crypto like you know what they are please go after them please protect investors that way do not try to protect investors by hampering this industry the developers are just going to move outside of the us right you're just going to hurt

americans and american consumers and american investors so again we're not seeing action yet but like this kind of tone coming from the sec chair i don't know i'm not i'm not a fan i don't like it the the sec and regulators at large need to have a moment of reflection as to what their original purpose is and why the rules that they are enforcing became rules in the first place uh and if the the thing that concerns me the most is that they are not in touch with their own roots they are saying like okay we have these rules from like 30 years ago let's enforce them all the time not realizing that the reason why the rules came in the first place were to protect investors from bad things

not to just enforce the rules as soon as as soon as the reality of the world changes and the rules are enforcing the rules actually hurts investors and you are not drawing the connection between those two things about how you will your the rules by enforcing the rules you're actually harming people like you need to have a moment of reflection as to what you're actually doing on the face of this earth i do think uh gary gensler maybe thinks that additional legislation is required so i'm not convinced that he thinks he has the power to do much in this space and i'm hopeful that's going to be his take because the people should have a voice in in in some sort of legislation this again is i feel like it's a theme for the week past two weeks david is crypto flexing its political muscle

because at some point in time new uh regulation is going to be created new legislation is going to be created we want our voice on this so america doesn't fall behind by the way david like coming off of what we just said i find this kind of funny the former sec chair remember jay clayton he just joined fire blocks their advisory board so fire blocks is the the company we interviewed michael their ceo earlier this week their entire mission is to bring institutions to defy now jay clayton well gary gensler is talking about defy and possibly ways to crack down jay clayton is joining the advisory board of a defy company it makes me laugh i don't know i don't know what's going on i mean like to some

degree i'm kind of down for the revolving door to work in our favor if that's what's going on like sure have to do it let's do it yep let's do it all right well maybe uh jerry and jay will meet and talk about these things um okay david we should get to the takes but before we do we need to thank the sponsors that made this episode possible when you shop for plane tickets you probably use kayak expedia or google to compare ticket prices so why would you limit yourself to just one exchange when you trade crypto when you make your trades you want to make sure that you're getting the best possible price on your trade and that you aren't paying high gas costs that you could have otherwise avoided that's why you should be using matcha matcha routes your orders across all the various defy exchanges on

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their discord all right guys it's time for takes from the week david let's start with this from anthony sessano the irony of paradigm saving sushi swap is why i love this industry what's he talking about yeah like we talked about earlier the the paradigm team which in theory is a little bit antagonistic at the very least to sushi swap also saved sushi swap so when the time comes down to it we always protect the individuals in this industry as well as we can and we put differences aside and overall the collaborative nature and the like quickness of the teams putting their heads together and coming up with a plan regardless of like the different teams that they're on saved 350 350 million dollars of people's funds so

pretty cool story and also just great entertainment too yeah it's super fascinating like but we're all in this together is bottom line i think that's why anthony's saying okay stani said this well designed a web 3 protocol does not solve every single thing instead it leaves room for the community to invent and build the rest of the features so standing advocating for an open landscape rather than constraints what do you think this means the nature of this industry is bottom up right so what stani is saying is that web 3 protocols whether we built like decentralized social medias or whatever we do in web 3 which is very nebulously defined it needs to be built in a minimally viable way that the rest of the features just gets built out by the community in a bottom-up fashion because

the community knows what it wants rather than any top-down web 2 company knows what the what thinks its community wants and this is goes back to the what we were talking about with like regulation and user power stani's saying is do the minimum viable infrastructure to give the community on top of your infrastructure as much power as possible so they can build the things that they want that's why we give out capital and governance and power to the users of these protocols so that they are maximally aligned with the people that actually use these things and so when stani says who's an engineer that we should engineer these things in ways that leaves room for the community to invent and build the rest of the features he's really talking about user empowerment

individual empowerment i can't wait for the sec to come and regulate this this you know this is the um the inside of ethereum though it's it's basically the the entire insight was basically let's take the the idea of digital scarcity that bitcoin provided and let's make a general purpose so anyone can build on top of it censorship resistant general purpose and let's see what we get uh and i think that's a a notion that is deeply embedded inside of ethereum itself let's talk about this naval said in the physical world every object is scarce in the digital world every object is abundant in a digital world made of nfts every object is scarce again full circle going back to scarcity

why what what's he talking about if we want to all live in the metaverse again whatever the metaverse means we need digital objects with digital object permanence we need things in the metaverse to replicate how we expect these things to also exist in the real life in uh the real life like i have a macbook it's the same as all other macbooks but it's my specific macbook right like it's it looks it looks and feels like mine same with all the other objects that i own there's only one of them and so we if we want the metaverse to behave like the real world which we do uh we need uh nfts to make every object scarce again we do and also it has to um you've seen ready player one right swatch up maybe i remember

thinking when i was watching it oh okay none of this would be possible not without vr tech but without cryptocurrency none of this would be possible without digital scarcity because you can't have an economy unless you have some idea some notion of digital scarcity that is outside of the centralized game maker's control the metaverse control um well i guess if you do you have somewhat of a dystopia metaverse facebook benefits yeah and it's not real not real okay um let's talk about this single issue voters david are you a single issue voter i am now yes i'm seeing this in ryan selkis's profile right um i'm seeing this another crypto folks profile but what does it mean is that does that mean like you

will not support any politician with your votes with um with your money unless they are pro crypto five out of five on the crypto scale yeah i mean i can't really think of anything i care more about in life other than the industry that i work in like not only is it all of my savings but it's where i work and it's where all my friends work and so if i want to do what is in my own best interest i'm basically a single issue voter for crypto and i think this is a a new page for the crypto industry as we all kind of ask ourselves like what are we really willing to give up like our and how much do we really want to like center around crypto and i think there's a very large cohort of people who kind of only give a [ __ ] about

crypto sorry about my language um and and that that cohort of people really cares about crypto and is also really really well capitalized and so we have the means to get what we want out of nation state regulation we have the money to put behind it and we can actually finally fund the values that we want to see in nation states yeah i agree and values is the key there so it's not just like you got bags in crypto and you've got friends in crypto and you're in the industry but it's also like crypto values are my values like inherently and i think that i feel very strongly i'll talk about this a little bit later but our need for a digital bill of rights digital freedoms in the 21st century right and i

think uh crypto is fundamental to that if we don't have it um we'll we'll end up in a dystopia that none of us want to live in it's kind of like think about your kids think about your grandkids what kind of life do you want them to grow up in what kind of society do you want them to grow up in do you want to live in a totalitarian digital nation state or do we want crypto we have to fight for it we have to fight for it in these early stages i agree with that it's a good take um david tell me what you're excited about man i am excited about a new podcast coming out on tuesday so it's going to fit into the regular bankless programming uh we have the monday podcast as we all know and then we have the tuesday state of the nation

but that's only on the youtube that audio for that doesn't go out onto the podcast until wednesday which means on the podcast we have an open tuesday and we're fine we can't have an open tuesday yeah okay we can't have that we have to put another show out what are you doing on tuesday yeah so tuesday is layer zero day which is the band brand new podcast out of the bankless ecosystem here is the graphic that i have for it uh we actually are not doing vitalik on tuesday uh this is just the mock graphic we are yet to finalize that but shout out to the two members of the design guild at bankless dao for designing this um who actually the first episode coming out on uh tuesday is with dimitri buterin which technically is actually if if we're all layer zero dimitri buterin is uh layer

uh negative one because he's the actual father of vitality also layer zero too it's really in the ecosystem but yes i love it so layer zero is a podcast focusing on all of the people that make up this ecosystem not about the projects not about their funds not about what they're working on but what they care about when they log off their computer like what do they think about where do their values come from what's their story and so the lines i've been using to kind of explain uh layer zero is like i want to ask uh justin drake about like his trip to math camp or i want to ask hayden adams about like his first heartbreak and then maybe even how did that come to impact what he built with ultrasound money or with uniswap maybe

we do connect those things i'm always fascinated about the ways that the human dna connects to the code that they write and therefore how it impacts the people that use that code there's a very awesome connection between those two things and we are going to unpack those things on the layer zero podcast first episode coming to a bankless podcast near you on tuesday i'm super excited about this and guys i'll just say to the listeners i have no idea where david finds the time to do all this and energy like we already produced so many podcasts when he told me about this i was like so are you doing this or do you need my help david's like no i got this so i'm really excited to listen to this man and uh david hoffman once again

proving he is the joe rogan of crypto with these in-depth interviews and conversations um thanks for adding to the ecosystem i'm uh i'm interviewing eric tomorrow so he will be episode number two eric connor eric connor and then uh justin drake comes in on episode number number three so i will be asking him what did dress and drake do at math camp are you gonna ask one day i hope you interviewed me on it would you do that i'm not sure i'm not sure you're ready for that that'd be weird that'd be too weird one day i'll i'll hope i'll put my name in that someday i'll get to the list you have my take for the week i do want your take for the week it's real quick yeah what are you excited about you know i've been what

i'm excited about sorry yes um i feel like there has been lately i've been reading this news about you know apple uh basically releasing software updates they could scan all of your photos and they're doing it for the kids too right it's um obviously a child pornography thing that is very terrible sounds very terrible but they are sacrificing our freedom in our digital liberties and our privacy in order to do that apple having the ability to scan any photo it starts in one small area where does it end we don't know once we give them this access once we remove the barriers of encryption it's got to be kind of down david like i feel like this is an all-out assault on our digital freedom and privacy and it's not

going to end now the big companies remember apple billboards uh we protect your privacy we care about privacy google doesn't but apple does yeah right they're all selling us out so what do we do about this it's depressing well i think the wealth created by crypto per earlier conversation is our greatest hope to fight this and combat this and so as we think about crypto first versus the social movement now it's getting a little bit more political first we can fight for crypto cryptocurrency our industry then we can broaden that fight to fight for digital rights more generally i think it's time for crypto to get more politically active that's what the last two weeks have taught me that we can do this we

have a coordination point we have a shared set of values we can be single issued voters we have the capital like let's take the fight to dc let's play their game because if we don't who's going to no one else cares about digital rights the way the crypto industry does and has the resources to do it so that's actually what i'm excited about is our ability to make a broader impact like i care a lot about long-term things david like i care a lot about the protocols we set up now and the future generations that um you know are going to live with the decisions we make with the protocols we put in place the whole world their world is going to be digital like our kids our grandkids they're gonna live in a completely digital world are we gonna give them a digital

constitution for that world are we gonna give them a bill of rights we're gonna let them be screwed over by big governments and corporations nah i don't think so right like that's why that's why we're doing crypto that's why i i'm not really a political person actually if you can believe that but um yeah you kind of have to be if we're standing still if we're not vigilant it's just going to continue to erode until we have nothing left for future generations anyway i'm excited about that crypto can have a big impact here no i i think that's exactly right and that's something i think everyone should should reflect on this movement got started in the 70s and the 80s with the cypherpunks and everything that we've done in crypto has been downstream of the cypherpunks and

the cypherpunks had very explicit values cypherpunks write code cypherpunk's value privacy cypherpunks understand that cryptography makes social systems and i think the power of crypto economics which is cryptography plus money right now we finally have the economic resources to actually put behind the cypherpunk values so like you said earlier this is not just us protecting our bags or not just us protecting our investments it is a little bit of that but it's also about us fighting for the things that this industry stands for and this industry stands for a lot of things and they're generally all surrounding individual freedoms individual autonomy and individual rights and i i think that we can finally have a lot of these a lot of the struggles

that the cypherpunks have was a there was too few of them and they had no money in the crypto community there's a lot of us and we all have a lot of money so i want to see what the crypto community can do when it focuses its money into cypherpunk values because now because of the power of ethereum because of the power of crypto we can all be cyberpunks and we all have the means to fight for ourselves well said plus one on that david meme of the week give me the weaker subjects let's do it all right the meme of the week this has got to be from wolf of wall street is it uh gotta be maybe maybe okay it's right it's leo right yeah okay so uh describe it for our listeners two panels leo very intently leaning into

somebody who's sitting in a chair holding up a pen and says sell me this pen and the person grabs a pen turns back to leo and says it's an nft i'm buying it i don't care as somebody who blindly bought some cheap nfts last night for no reason and no due diligence i can completely align with it you are the guy i'm the guy he's like it's all nfc love it all right guys that has been the weekly rollup hope you enjoyed it as always none of this was financial advice defy is risky so is ethos all of crypto you could lose what you put in but we are headed west this is the frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot

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