ROLLUP: Arbitrum Layer 2 Launches | LOOT NFT | El Salvador BTC | FTX | ETH & EIP 1559 (Septemer 3rd)

Transcript

[Music] thankless nation it is roll up time this is the first week of september wow starting to feel like fall starting to feel like time to get back to school but i haven't taken the summer off david i don't know about you i'm feeling like no this summer i'm not going to entertain i've only gotten more and more just like energetic crazy and crazy and like every every week that has happened it's just like how are we going to do the weekly rollup like this is absolutely insane yeah how are we going to fit this within uh you know a two to three hour you know how do i hold up what's going on guys we will keep this as short as possible as always we're gonna cover markets releases news takes what we're excited about end with the meme of the

week i think we have a moment of zen for you too hey before we do we got to talk about our friends at so rare nfts are going mainstream it's happening this cycle it's happening now so rare is a way to collect trade and do fantasy sports with uh soccer your favorite soccer players europeans will call this football of course what's super cool from a tech side is this is nfts on zk roll ups so they got the tech figured out it is fast and seamless and there's utility along with these cards so you can play with them in a fantasy sports type arena bankless wants you to play global fantasy football that is the message here

for those that are into the world of fantasy sports fantasy sports his has now arrived on ethereum uh i was actually just last weekend playing with uh hanging out with my friends while they were doing their fantasy football draft so i kind of expect that to also follow along right after this um fantasy football uh is is here uh and it's on zq roll up on ethereum so check it out yeah absolutely guys all right collect and play there will be a link in the show notes or you could go to so rare.com that's s-o-r-a-r-e-dot-com and check that out david also we got to talk about a conference it's coming in 2022 next year in may in florida it's called permissionless we are helping to throw the biggest defy conference that's

ever been had i said conference maybe i should say party because i think it's going to be both and we are in the stages of planning that with our friends at block works i wish i could tell you there were tickets available but the first tranches all sold out that said there will be new tranches that open every two weeks so the first opportunity to get in on that is on the 15th of september if you are a bankless premium member so you are a member of our bankless newsletter you get the premium podcasts all that good stuff then you got an additional 30 off discount that's available for you i'm psyched about this conference i wish people could could um get into it now but as soon as we

tweeted that out yesterday it was like insta sold out uh but there will be lots of opportunities hopefully in the future i forgot to mention this too david every two weeks the price goes up on this thing so it's like crypto you got to get in now or you have to fomo in at a higher price later what do you think is going to go higher faster ticket prices or ether i don't know i'm super looking forward to this uh like there's there hasn't really been a d5 forward slash like metaverse forward conference yet uh and so we're teaming up with the people at blockworks to help coordinate this and get this done uh like you said it's maybe a conference but more of a party i i think they're in crypto they're kind of the same uh and

so i mean this it's not it's pretty far out it's may of 2022 so we got plenty of time before it actually happens uh but it's going to be a blast um ryan might actually meet you for the first person wow and we might actually host a podcast live on stage in person that's kind of crazy to think about um but yeah it's gonna be an absolute blast yeah check that out guys we'll have more info in the weeks to come um all right david let's get to the markets man bitcoin what's bitcoin doing yeah bitcoin started the week at 48 000 fell down to the low low price of 46 700 and then has zoomed up to 49 970 at the time of recording it touched 50k earlier this week but it has not

been able to hold its head above water overall up 2.3 on the week nice to see us above 50k even though it was brief let's talk about eth wow this looks like an ascent yeah absolutely ether started the week at three thousand dollars which was also the low of the week and it has assumed all the way up to three thousand eight hundred and forty dollars currently at the uh and that was the high just uh set i think last night early this morning we're currently at three thousand eight hundred and ten dollars up sixteen percent on the week it was absolutely ethers week this week uh what day did the raul paul podcast come out david i wonder if we could see that in the charts that was that was exactly on the 30th

the 30th which is the interesting correlation is not causation but also i also wouldn't be surprised that was a very bullish podcast we put out with raul paul and i think it's set up to be one of our most downloaded ever uh talking a lot about ether he he talks about it as the greatest trade ever and it's funny because we've been talking about ether fundamentals for like three years right a long time uh but now it's very clear to even smart macro people like uh like rao paul so there you go um all right what's uh what's the ratio doing david this is the eat the bitcoin ratio yeah i've got the three month open whereas as you can tell the ratio has done uh phenomenally this week it

started the week at point zero six six uh and it touched point zero seven eight five at the very top and it's currently coming in at point zero seven six so if we go to yet to go to the year to date we are almost breaking into new highs on the ether btc ratio there's been some some murmurings on twitter of what happens when ether breaks its all-time highs before bitcoin does uh that's kind of like the sentiment right now david uh speaking of sentiment i saw chris berninski tweet he said something to this effect bitcoin no longer has the uh stranglehold on crypto culture and in in kind of the mainstream mind that has transitioned uh and uh i think that's true nfts are incredibly bullish for

ether now it's got this narrative eip1559 burn um yeah it's hard not to agree with uh raul paul that this is gonna be an absolutely crazy year he called for 20k end of year um like i also call for that okay david also calls for that like on the one hand i wouldn't be surprised right on the other hand that's a lot of territory to move um but this is crypto and we'll see how the fall goes i feel like we've been in the crab season long enough feels like everything's primed for breakout yeah absolutely and going back to the whole culture thing i mean it makes sense that a touring complete platform that has general generalizability offers more and more surface area for culture because we

can just do anything with it rather than whatever bitcoin culture is around like sound money it's just like one instantiation of culture on ethereum you can have all cultures instantiated and then made economically viable so uh there's there's communities there's taos there's nft orgs like there's everything on ethereum and like all of that is kind of coming to a head right now look it just captures all these narratives too right like even the narrative of the metaverse that that's spitting up we're going to talk about later it definitely has a key role to play uh all right well let's get to some more metrics we're still in markets uh hi wow i didn't like that before 96 billion locked in d5 that's a new all-time high new all-time high wow we didn't look at this going in we're almost at 100 billion 100 billion

almost wow wow wow i can't i can't believe i missed that can you zoom out yeah for tomorrow wow look at this that is great that's fantastic yeah okay so for people who can't see this is basically a um kind of a straight ascent up from october 2020 or so actually i could go back before that from d5 summer all the way up to here we had i guess a dip from may until now and then we're out of that dip and we are on our way to new all-time highs with total lock value in d5 um let's talk about this d pi d pi dpi uh to ether ratio so is it eighth season is a d5 season it a

d5 season dave well not comparatively to east season d5 tokens had a fantastic week this week it's just that ether absolutely crushed everything uh and so the dpi is coming in at .112 which is meaningfully below my bottom called point one three but i would like to say on dollar turns is doing great he's just hanging to everything he can there's like this tiny life raft that he's clinging to at this point you know david's still smiling though he doesn't care because he's he's got his eighth position so you know if it goes that way it's fine too for a time well let's talk about the bed index so this is a combination of one third bitcoin one third eth one third d5 when crypto is doing well

how does it not also go up and of course that's what it did on the weekly where did we start where'd we end yeah we started at 143 and are currently clocking at 164 dollars for one bed index we maxed out the week at 169 dollars nice uh and again like bed index never gone down in the entire z can you can you zoom out to the three months it is up only it has never ever gone down it is absolutely incredible so yeah the bed index uh literally proving exactly what i say every single week the best crypto index of all time excellent way to get crypto exposure uh hey let's talk about l2 beat because new layer twos are launching and we are at i

don't think this is quite an all-time high it's not but it's a 90-day all-time high on value inside of layer twos and i think this is all true layer twos right so it doesn't include side chains but look at this new entrant to the mix here see that guy wow a little arbiter in there look at that plus 200 and 2 700 increase i mean that's just i mean it's 21 million so it's like relatively new but like we're gonna see very large percentage increases on on both optimism and arbitrarum uh over the next few weeks and this is why we have started to get ahead of this narrative but other other l2s are also doing fantastically look at immutable x up 27 on the week uh we got a dydx up 11 in value locked on

the week almost breaching 300 million dollars locked a zk sink up 15 on the week uh aztec plus 21 percent on the week looks so rare up good for you guys 11 million uh locked and this is not a small number yeah this of course is a zk roll up as well um really cool man i you know i i wonder if you can almost like bet on what's going to go up like this sort of horse race style like how to get aesthetic acids on these things well i i feel like so arbitram is definitely going to be in the top like three before long it just launched right um i also i i'm pretty bullish on zk sync not yet but in the future when they roll up uh

when they uh roll out um an evm compatible z cave roll up that's going to be really cool to see so there's some great immutable x dude that could be a dark horse as well as as soon as they onboard some like large nft projects and um you know every everyone loves nfts but gas is too high on mainnet and mutablex is kind of solving that so a lot of cool solutions being built out here also new to l2b uh dot com is that risk panel so they've actually added in some like you know ways to measure wow which is pretty cool pretty nice yeah interesting very cool spend more time looking at that okay um let's talk about issuance david this is in the context of ultrasound

money this is the effect of eip 1559. i saw coinmetrics put out this chart and it just i mean it shows you very visually tell me at what point eip1559 gets deployed right it's this point where you see issuance it's steady it's above four percent you know four point one percent eip fifteen five nine hits and bam down annual issuance down to three percent down another leg annual issuance down to like 1.5 percent down to one percent annual issuance for ether on uh its proof of work chain was below bitcoin for a period of time and this is the thing to remember as nft mania like

continues as basically and it that means it's it's block space demand mania for ethereum and what that means is issuance goes down so uh no doubt in my mind that we will be in the ultrasound money territory a post-merge perhaps well under it i mean what would we be looking at like you know negative two annual issuance negative three annual issuance something to that effect uh but it's absolutely crazy how quickly eth gets burnt when block space demand goes off the charts yeah and this is just the symbiosis between all native economies on ethereum and ether the asset um i mean this is dependent on actual economic activity right so like if the

nft mania actually like cools off then then this would rise back back up but it's only been heating up and it's also just one sector of ethereum uh and so like regardless of like the merge which we you didn't yet mention the triple happening which is still on the menu like there's just more and more or generalized economic activity coming to ethereum consuming block space absolutely let's talk more about eip-1559 because now we we're a month in or so just about a month in and we've got some actual visuals some some metrics on this what are we looking at here david yeah so this first graph is kind of a model for what you would expect for uh the gas markets and eip1559 so those are those are two different things there's

get the markets for actual block space demand and then there's the eip1559 mechanism and there's this predicted um overshooting by because the gas markets eip1559 is a lagging mechanism it reacts to the environment around it it reacts to the gas markets when an nft drop comes everyone apes in and the base fee goes up and up and up because everyone consumes all of the block space and so base fee rises 12.5 percent per block if the block space is maxed out uh and so eip1559 responds to the over over demand over consumption of block space by increasing but first there's this overshoot of of the base fees too low and the tips come

in and that's what raises the block space and then we actually saw this model we actually saw this model actually live in real time uh with the the next picture in this thread which you can actually see it it exists so like first we have this first hump right here with this gray this gray tip amount uh you also have the purple line which is the moving average so they're basically the same thing and then that overshoots and that tells ethereum that tells eip1559 like hey you need to react to this and then we see eip1559 take effect the base fee goes up and then it responds by reducing the tip amount uh and then over time this also settles out as the nft drop ends so like the fundament the takeaway is that you

are seeing eip1559 allow ethereum to respond to the environment that it finds itself in and this is what it takes to have an anti fragile maximally like adaptive protocol rather than something that's rigid and can't react ethereum has this eip1559 mechanism that reacts to the world around it and allows it to maintain stable equilibrium and this is what it means to have a monetary system operated by algorithms operated by code it kind of reminds me of you know buildings they they build in areas of the world that are earthquake prone where they build you know an actual a little bit more sway built into them so that's right there's an earthquake the building can can sway and it doesn't immediately fall apart yeah it just buys

that's what's happening uh ethereum is just vibing what does this mean for the average uh eth user so if if an eth user sees gas price spike this generally means that um just wait a little bit and they'll come down faster than in a pre-eip1559 world is that the correct interpretation yeah i would also add that like this ethereum like mechanism that's reacting to the markets means that the users have to react less as in this this like ethereum this this nebulous thing that we call ethereum is doing its own internal computation and that means the brains of humans have to do less computation because ethereum did the thinking for it so this is ethereum working for us

technology is a bicycle for the mind i don't look i don't want to get too weird on this but like here's the other thing i think this means is there is this weird notion in bitcoin that you know satoshi created the perfect mechanism and it was fully baked at the beginning there was no possible improvement to the underlying mechanism right it just seems empirically false right okay this is not a huge tweak to ethereum but it is a slight mechanism change and it's massively improved the system right it's like uh i think some iteration on our mechanism designs is is hugely important this is not just uh this is technology in addition to money and like technology

can improve and it can change and can get better uh the importance of being able to upgrade and change things when they make sense let's talk about some of these metrics coming out of block native david what are we seeing uh from eip 1559 what is block native showing us here yeah this is just the story of eip155 adoption you can see the differing uh transaction types type one and type zero which is like you know eip enabled eip1559 enabled versus not enabled there's a big jump in the middle of these these graphs right here i can't remember what wallet provider just started implementing eip159 but uh we are now well over 50 percent of eip1559 uh type of transactions uh and i mean again we're just going to watch this uh

approach a 100 over time there we go all right um let's talk about openc they've they've just had a killer get that bar month absolutely killer month 3 billion trading volume in august 3 billion in august and it's just a straight line up this just shows how quickly things can happen in crypto uh in july that looks like there was roughly like 300 million yeah but we did a 10x nice 10x on the month there uh congrats to openc on that and nfts of course are just popping off so that explains a huge chunk of why that's happening congrats to all the investors that uh invested in open seas raised literally like two months ago

exactly this is yeah this is just such a crypto thing to happen um talk me through this tweet this is one from our friend richard chen who always digs into the analytics the on-chain analytics behind these chains we did an episode with him where he's talking about his approach to dune analytics looks like he's got some analytics based on um cross chain cross chain bridging what's going on here i believe maybe it was last week or the week before but one of my takes was that uh the whole phrase of cross chain is going to move from layer ones to layer one cross chains like bitcoin to ethereum or ethereum to like tazos and instead crosstrain is going to start to increasingly mean cross layer twos uh and i think this is evidence of that uh

richard chen says hop protocol which is a protocol that lets you hop from layer two to layer two and then also back to ethereum he says is doing the same amount of volume as thor chain which is a layer one to layer one like swap protocol liquidity protocol doing the same amount of volume of thorough chain before floor chain got hacked which was another point i made is cross chains are really complicated and really dangerous whereas layer two to layer twos all operate on the evm i'll use the same standards and are much safer and so this is exactly proving exactly what i was talking about layer 2 so layer 2 hopping is going to be 100 times easier 100 times more safe and is ultimately going to become whatever it means to say um cross chain cross chain is now l2 to l2

i think we got to finish uh the rest of this tweet too because this is important he said that about hop protocols doing the same amount of volume as thor chain be before the hack and then he says no token there's no army of shills just a missionary team heads down focused on building shot across the bow to thor chain uh i don't know i don't know what thor chain is is doing now in terms of market cap it's like i i saw at one point in time like 6 billion or so david you could probably look that up but like um it's it's kind of the difference between i think actually like building and seeing the numbers on chain and investing in that versus investing in a potential narrative and you can make both you can make money both ways in crypto right from a fundamentals

perspective or from a narrative perspective and yes these two things also blend but when in doubt man always always buy fundamentals always invest in the on-chain data that's at least how uh how i think we approach things at bankless yeah so what was thor chain's market cap david uh currently coming in at 2.7 billion 2.7 billion uh real really interesting to see how that evolves of course k'nex is also doing some big things here this is a another hop type protocol this is another bridge between different layer twos and this is an arbitrarium to polygon in 70 seconds transaction the tweet says you aren't excited enough i i do feel like that's true i don't think

the entire crypto space realizes how good bridging is going to be between these layer twos before long the bridges are already being finished before people have even migrated onto layer twos it's crazy absolutely um all right let's talk about this david maybe we'll end markets with uh spot volume up and what that means so apparently august if you look at centralized exchanges the spot exchange volume broke one trillion dollars okay and this is the first time it's done so since may so if you look at the numbers here this is kind of what the chart looks like uh this is the story if we're to sum up the entire market section it feels very much to me like we've gotten

through crab season we're at the end of the summer and bullish fall that's what this is looking at like like thanksgiving is going to be one of those thanksgivings where you might be sitting around with your family and everyone's asking you about crypto and i don't know what they'll be asking you to be asking about nfts or ether or like tokens or bitcoin or what but it feels like it's going to be one of those thanksgivings david oh that's exactly right and we'll talk about this later in the roll-up but like the cool thing about the last few months of ethereum and of defying enough crypto is that like things that we've created lately while they're all kind of crazy like we're selling like jpegs for millions of dollars like jpegs are still easier to understand than like uniswap right like and so some of these conversations are

gonna be easier to have yeah absolutely you could show people yeah uh you know absolutely all right guys we're gonna show them your penguins show them your penguins why that's worth hundreds of thousands of dollars then try to explain that we should do an article on that david um all right we are going to be back with releases but before we do we want to thank the sponsors that made this episode 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 uniswap just look at the size of the uniswap 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 dow 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 uniswap 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 banklist 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 all right guys we are back with the releases david we gotta start here another layer two has shipped we talked about it before now it's actually happening the tape is being cut the theme park is open arbitram is ready for business what does this mean oh god it means that one of the ethereum's most hyped scaling solutions is that we can go into the theme park and go on all the rides not only is the theme park open but the rides are also open that's what's been going on for the past like two months or so is that like all these dev teams have been uh building their rides the rides have been under construction now most of them are

finished and so now we can go play in this new theme park that's called arbitrum uh and so the list of things that have been are that are already ready for you to go right on is like pretty insane we're going to go through some of that list um but david i haven't had an opportunity to actually use arbitrary so we're recording this on thursday just because this has been such a crazy week but i intend to my understanding is if like one of the big uh of course you know reasons to migrate to arbitrary is lower gas fees so it's not eliminating gas fees completely of course because you're still ultimately securing things from mainnet but if you look at arbitrage versus mainnet here's one comparison the cost to send eth one dollar on arbitrary

right now gas prices being what they are about 11 or 12 to send ether from one address to another the cost to use a uniswap five dollars on arp trump where on mainnet costs about 80. um and this is all with like the governors on so arbitrary still hasn't let everything through their their throttling transaction throughput and they are deploying this in a cautious way so i anticipate these gas fees could go down over time too of course it's partially depending on what mainnet does but not that bad right like when we talked to arbitram they were anticipating like 90 to 95 reduction in gas fees uh for typical

transactions and that's kind of what we're seeing right now which is good i know one concern i've heard people have is hey there's not liquidity yet uh and i'm also like look we're on date by one this is not liquidity we have to put our money there first there's like two million dollars in liquidity and i think i i've heard some complaints so it's like hey the theme park's great but like we don't have the liquidity yet you gotta wait when they turn when the water park turns on you gotta wait for the water to flow all the way down the slide before you can run on you can slide on it's happening that's what's happening and now we're already at 40 million and we saw that on their two skins so by the time you guys listen to this i don't know it could be 60 could be 80 million

it's going to take some time for the water to get down the slide uh but yeah you're so good i just copy you david layer two is here it this is what we've been waiting for this is different than optimism in that everything is kind of generally available out of the gate they're not deploying things in application at a time uh yeah what what's your take here david oh doc it's kind of going to be a wait-and-see type of thing the cool thing about layer 2 is we can take all of our d5 stuff and put it on the l2 and then yay we save on gas fees the cool thing that i think is really exciting is like well there's also d5 things that couldn't happen on layer one that can only happen on layer twos and that's gonna be like this big zero

to one moment as soon as we figure out what those things are uh you can't we can't really ever predict them um but like that's kind of what i what i'm really really excited about uh and just overall there's a going to be a great migration to the arbitrary layer two which i'm pretty sure is what i say in this sponsor well guys uh you know stay tuned for tuesday we're going to have arbitrary back on the podcast doing a show with them to review their progress since the last time we talked to them but maybe let's just scan a few things that have been deployed so there's a block explorer by the people who made ether scan uh it's called arbiscan and that is up and ready so we love etherscan looks and feels like ethers how many times a day do i use this thing right and now it's

deployed on armstrong um also our friends at balancer they have expanded to layer two they are on arbitram uh live now sushi is on arbitram um and they they awards awards rewards realize this so they're already doing yield farming on armature definitely something to check out uniswap also deployed on arbitrom so this is the first layer 2 where we've seen it both of those solutions both sushi swap and uniswap so they get to battle it out in a new realm i'm kind of excited about that honestly look at all this uh all of them everything h shout out to tracer uh curve dodo dx ave future swap uh mc dex maker dow

perpetual protocol d force whatever we piggy is so much so much it's on arbitrary love you we piggy yeah tracer nose is safe some of these are cool because they're actually new apps that that haven't been deployed on mainnet too um so anyway lots to go check out we are going to be releasing a guide next week to arbitram next thursday so if you've read some of our previous guides like we did a guide to polygon doing a whole comprehensive guide for arbitrum so stay tuned to the newsletter to check that out that's newsletter newsletter.banklesshq.com if you are not signed up go do that now yeah and shout out to ben literally the best guide writer in all of defy uh we got him uh great find got him on the team and now

he's going to be releasing an optimism guide as well yeah we just seem to quit college and work for us because just quit college bro it works for metallica um that's what you say to your parents um all right man the other point i want to make is there's just a thread from anthony cesano that goes through all of the other layer two solutions that are coming to mainnet so he goes through starkware he goes through zk sync that's coming optimism that's coming arbitram if if you want a collection of all of the layer twos we will include this link in the show note notes and you can go check that out because it still is layer two summer i know we're almost out of summer so it's like

layer two summer fall edition is what i think is happening uh in the next few months this is definitely going to pick up some more david should we talk about this this is interesting why don't you explain what's going on with uh vincent van doe and three arrows capital right so three hours capital famously uh kind of was one of the big reasons why this nft mania got so much steam so so much uh got picked up so much steam so quickly uh they they aped into a bunch of crypto punks and fedenza some ringers uh and now they look they look like they are just doubling down on uh nfts as investments and so they have brought on whoever vincent van doe is on twitter saying excited to be working with suzu and kyle davies from three arrows capital to launch starry night capital

an nft fund i love the name and he says our thesis is simple we believe the best way to gain exposure to the cultural paradigm shift being ushered in by nfts is owning the top pieces from the most desired sets so that's pretty cool investing in culture directly and that's i think that's just a fantastic uh you know option to the fact that you can even invest in culture is fantastic and and david you said whoever vincent van doe is and that's because he's pseudo-anonymous not because he's unknown on twitter he is a big deal in nft circles as far as i understand it like one of the top collectors in the space able to identify these things early so uh this is the kind of talent acquisition for three arrows capital two

they've got the capital they need the talent through which to deploy it and they're matching those things together really cool to see a an nft focused fund that's what this is and if you read my uh digital culture revolution you might have seen this coming you got to hit the buy button though david that's the hard part i forgot that part all right merit circle this is interesting this is a fork of optimism so optimistic roll-ups we've talked about so much optimism is a solution similar to arbitram on optimistic rollups merit is apparently forking their code uh tweaking it in some ways doing sort of their own thing i don't know all of the details but i i'm just

kind of of the mindset like let a thousand roll-ups bloom and we'll see which ones win very excited that this is our scalability path for d5 and ethereum i don't know david if you have anything to add no i i there's there's not going to be a few roll-ups or a few l2s there's going to be infinity numbers of them uh and so this is just you know one more absolutely um pleaser dao what's pleaser doubt doing and you know maybe give some folks some context for what pleaser dow even is yeah pleaser dao is a dao that got spun up in a in a just a hasty fashion to in order to purchase people pleasers famous x times y equals k a

unit swap v3 nft that got launched at the same time as uniform v3 debuted uh and just a bunch of friends just pulled their money so they could buy this nft uh and then the dow kind of took that and ran with that and so there's a bunch a bunch of more uh internet culture nfts that pleaser dow has purchased one of them was the original doge the shibu inu doge meme the actual picture from the actual owner of of the doge who actually saw the photo is that one right there this is the original and so the the artist uh artist the the owner of the doge uh who is at suko sato apparently she only speaks japanese but the dao is actually in contact with her she minted the photo as an nft and pleaser dow bought it i think for 5.5

million dollars 169.696969 eth nice um and now this is on the balance sheet now what pleaser dao is doing is they're using andy8052's fractional platform which we did an ama on if you want to learn more about that they are putting the doge nft into fractional and fractionalizing 20 of it they'll do they are trying to do more in the future but they're starting off with 20 into 69.6 billion units oh excuse me 16 billion 969696 units there's a bunch of memes going on here uh and and so uh this uh sale is actually ending right now uh and then all of a sudden the doge er the

excuse me the dog erc20 token is going to be a token on ethereum and it's going to represent a fractional share of the doge nft and i would just like to shield my own bags here and say that doge the blockchain the doge currency is clocking in at 38 billion dollars and the dog token which is the actual nft the actual meme itself only clocking in at roughly 6 to 10 million you know there's a discrepancy there so so okay so let me get this straight what's happened is there was a dallas created to purchase cultural artifacts called pleaser dao they purchased one of the biggest cultural artifacts which is the dogecoin dog the picture from the artist the actual original the most legitimate one now they are fractionalizing that thing

and releasing it as an erc20 token that people can buy so i think it's being auctioned off but people can also buy this token and the the meme is this tokens now could compete against the original doge coin meme which is dogecoin the blockchain plus the the currency that's what you're saying uh i mean they wouldn't say compete i i that's that's my interpretation competition it's a little bit of a meta competition but also like uh we we did a live stream with andy and uh james from pleaser dao and they talked about how like well this this can become a community like operated organization this can become like a dow that's centered around the doge meme now that the doge nft is in the hands of the

people so there actually could be collaboration between the doge blockchain and the dog token holders on ethereum it's so weird i the the numbers the value we're talking about like if aliens like unearth civilization years from now after humanity destroys itself they will have thought we worship dogs during the internet culture of time hey maybe maybe they would understand maybe they have their own aliens that they worship maybe i think right the potential for this is actually pretty crazy so like there's badger dow on ethereum which is btc infrastructure i think there could be like dog dao for like doge infrastructure and we all know that elon musk would absolutely join that dow that's for sure yeah absolutely it's getting some press too this is uh please

redoubt emily yang on bloomberg tv talking about this so very cool hey let's burn through these other releases block native just released a gas estimator for your browser so it's a great browser extension now you can just click a button and see how much you should be paying this is all eip 1559 ready so great way to estimate and not overpay on your blocks and that's meaningfully different from all the other gas estimators that you might already have installed because the current gas estimators uh they only look at like recent transaction history block native goes very deep into the mempool so it has a lot more insights and a lot more clarity to give you better information

um let's talk about this too we probably don't have time to cover it maybe it's a podcast in the future but a new nft derivative from the brilliant minds at uh paradigm what is this derivative what's the tl dr right so any nft project that has a decent amount of liquidity which then establishes a floor price uh paradigm has established floor perpetuals which allows you to make a perpetual contract upon the floors of an nft project so this is now a synthetic asset for any nft project so like synthetic penguin tokens synthetic punks synthetic cool cats synthetic synthetic prices is just like the the absolute lowest price that on the open market a say a punk has been listed right it's the like the very

minimum layer so what would you do with this kind of synthetic uh would this be a way to speculate using an erc20 token on a given nft market maybe create an index out of this eventually yeah exactly it's just financializing nfts which is fantastically cool right below the floor is where you find liquidity which is why these perpetuals are pointed at the floor and it's just like for people that don't care for a particular punk but are still bullish on punks they can buy these floor perpetuals sir i wonder what a cftc commissioner would uh would what their take would be on something like this an instrument like this well it's such a such a fantastic little coincidence that we actually interviewed a former cftc commissioner

coming out on the podcast on monday uh and we asked a question kind of like this but i framed it a little bit differently he's like bruh there are like 10 000 nft projects and there's going to be 10 000 synthetic assets like what's the cfcc going to do about that uh his answer is pretty interesting yeah stay tuned to that for that podcast it's brian quintes he's a former cftc commissioner he just resigned this week uh the day before we recorded the day before we recorded so he's kind of had some more freedom license to speak anyway hot episode coming up there um we missed this little raise by the way in all the talking about arbitrary actually raised another 120 million in funding i think their valuation is like one point something 1.2 billion i want to say so

they've got a war chest to keep building what they're building but look at this david like a big raise in crypto techcrunch our friends at techcrunch um the bloomberg of technology blogs i don't know but they had this crazy they had this crazy headline off-chain labs those are the people behind arbitrage raises 120 million why to fix ethereum's shortcomings that's why i i take taking the perspective of somebody who's not in ethereum you can kind of see why like a 70 uniswap trade like i guess that's a shortcoming but again they they aren't it's not it's not it's more nuanced than that like ethereum's decentralization is not a shortcoming it's expensive and decentralization is

expensive yes yeah the the thing that we're building is a very slow computer that does one thing which is it's it's it's trustless it's decentralized like that is the entire point it's just shocking to me that um popular technology blogs even like techcrunch still don't understand this still don't get this this is why we need crypto media publications to actually crypto natives talking about their own industry in a way that makes way more sense because techcrunch is not getting it right speaking of the crypto industry though uh jobs get a job if you're encrypted yeah goddamn job check out the bankless job boards we have a senior front-end web 3 developer at tracer dow

you got to check that position out there are a number of others make sure you look at that you can also subscribe to the bankless jobs newsletter and get updates we'll include a link in the show notes all right david uh should we get on to the news um you want to talk about the chain split first yeah sure so there was right bef after we recorded on last thursday the the friday morning there was a chain split to ethereum and what that means is there was a consensus failure consensus bug and then we had the chain go in two different directions uh this didn't really cause too much of an issue at the time because most of ethereum all went in the same direction um some parts of the guest client excuse me some parts of the death client went in a

different direction people that hadn't updated their death client found a different chain to go off of and basically what happened was there was a bug in geth in the code that handles the static call opcode it was found in fixed in an update and that the new update to geth was deployed and all those uh nodes that updated didn't fork but the ones that didn't update ran off with an unfortunate consensus failure like i said and because of this uh very specific smart contract that was deployed somebody actually exploited this and all the non-updated guest clients uh because of this weird contract thing went off in a different direction as soon as these clients downloaded the latest clas uh guest client um all those they pointed

back to the original ethereum chain and then we went on our merry way but this is why ethereum has multiple clients uh and also why you need to update your notes yeah absolutely i do think it was a a bullet that was maybe narrowly dodged um i think so you know this definitely could have been worse but this had already been an exploit that was patched and so only affected older guth nodes uh which is why we saw sort of a brief chain split and then everything kind of merged back and fixed um yeah so i i think points well taken david let's talk about this uh coinbase layer two they are doing stuff on layer two this is a whole blog post about that uh

telling the crypto community what they intend to do they said we just announced support for polygon network for the coinbase wallet and the coinbase wallet extension with plans to integrate polygon uh as our first scaling solution for coinbase but they are not starting stopping there their goal they say is to explore scaling initiatives with l2 such as optimism arbitram and starkware over time that is music to my ears david we've been talking about the protocol sync thesis which is those protocols that have the highest levels of decentralization credible neutrality the highest levels of legitimacy as we've talked about before those will be at the bottom form the bottom of all other

settlement layers on on top of them and so this is essentially coinbase doing that recognizing that executing that i think this is the protocol sync thesis coming true pretty soon they'll have deposits all of these layer twos so there'll be a direct fiat bridge from a coinbase and all the other exchanges will also do this directly to layer twos they will build products on top of these layer twos and i think this is a very bullish for the future of bankless decentralized finance uh if i remember reading this blog post correctly i think there was also a call to action from coinbase asking for people who want to uh they're looking to hire people and so if you know about this stuff and can you think you can help coinbase they are looking for your attention and for your

help this is huge too david metamask our favorite browser extension wallet just surpassed 10 million monthly active users 10 million monthly active users seems like we're just talking about the 1 million mark i don't know that was maybe a few months ago maybe six months ago insane growth here it's it's got to be nfts too like what what else would it be all the any if you want to buy on openc you got to use metamask you can also use wallet connect but most people use metamask um so congrats to metamask for being the most bankless uh browser wallet ever uh allowing so many people to actually take control of their own private keys it's such an important concept and metamask has made it easy so they deserve all the success

yeah absolutely huge growth story there all right let's get to some nft stuff we got to lead with this story 12 year old kid you just made 350k 350 thousand dollars in eth how by selling nfts this was an article on cnbc that i saw last week uh and i love this quote for him they they asked if he's going to sell and he said nope i plan to keep all my eat and not convert it to fiat money i love that he said fiat money cnbc are like fiat money do you mean like money and he goes on to say it might be early proof that maybe everyone doesn't need a bank just has an eth wallet uh just has an ether dress and a wallet i said the next generation is bankless look this is a zoomer 12 years old he's

making his way making his first 350k in the crypto economy using eth as his bank account you think he's ever opening uh an account at wells fargo not if he can help it if he does it's only to pay like stupid bills uh this kid is is sold for life and i think this is how the the zoomer generation gen z is is growing up right they are like eating and breathing this stuff some of the innovators like a 12 year old kid did this from his own home he was able to generate that kind of cash like i mean he's telling all his friends like this is propagating on cnbc man it's over like the world is going to be bankless and starting with the next generation this also speaks to

the power of actually using these things like we can talk about it and you guys can listen to podcasts and read articles but it's meaningfully different when you actually have a have an an ethereum wallet and make your own transactions and actually use some of these infrastructures like that that was when we had our podcast with preston pitch about like ethereum versus bitcoin and i asked him if he had ever used unit swap and he's like no dude i've never made like a transactional theory yeah dude what the hell like this 12 year old kid can get it and he's the what the difference between press and pish and this 12 year old kid is that this 12 year old kid actually went and used ethereum yeah it's just curiosity just use this stuff we had a 12 year old kid we also have in the

bank's program our favorite bill ford he is 77 years old he gets it and he's doing things with metamask he's claiming tokens he's doing d5 right so that's a large span so once again 12 year old kid 77 year old person running circles around everyone who hasn't touched ethereum exactly all right let's talk about this um crypto punks creator larva labs they just signed up with a major talent agency this agency is called uta i've not heard of them but i'm not in the talent industry space uh what did they do it's some kind of a business partnership vance spencer explains it a little bit david but what's uh the summary here yeah i'm also unfamiliar with this territory but i think it's

more just about allowing all the products from um larva labs crypto punks uh um uh me bits uh autoglyphs to be part of uh you know uh like licensing agreements with like commercial activity like content licensing so like maybe we see like just you know kids tv shows or the crypto punk in it or like crypto point toys i i don't know i don't know how this works but i think this is kind of what we're diving into i still have open questions about like what happens if somebody uses my crypto punk like do i get like royalty fees for that or like whatever i feel like you should like i should i bought it i bought the damn thing um anyways i'd still be happy to see my crypto punk on like nickelodeon or something that'd be

awesome because you are the only owner of that legitimate cryptid punk so i guess best crypto punk of all time even if you don't get a share of this uh then this also still kind of propagates the meme and benefits your background at the very least yeah yeah it's super interesting to see that play out um let's talk about this board apiac club they just sold 96 million of their mutant ape nfts in an hour and uh so this is a massive rage raise in and of itself we also have like major artists this is the chain smokers they just changed their profile picture on twitter to a board ape um what's up with board apes are they uh are they the new crypto punks yeah i mean they're the runner up that's for sure and this whole

mutant crypto punks if you can uh find a some pictures of mutant crypto punks that'd be great because they're really really creative yeah the bankless editor lucas put this well i really like this is like somebody asked like yo what happened to uh like the board apes and lucas said oh they leveled up so this kind of feels like an evolution of the board apes like first they were just like bored normal board apes and now they're mutant board apes they had like a leveling up moment an evolving moment uh and so this kind of tells like the story of a particular set of like ethereum objects is like they did something they changed uh the story of the board eight meme has evolved with mutant apes mutant names i think are actually way cooler than the originals

okay but can i ask you a question right so this is me just um getting into nfcs right as you know i've been on sort of like a mini quest uh of the over the last two weeks to just get up to speed on everything okay do you remember in the early days there was this um uh criticism of bitcoin particularly from people outside of the space that just said hey bitcoin's not valuable because you could just fork it create a bitcoin diamond create a bitcoin gold you know create a litecoin create a dogecoin whatever and um you know it will never be valuable because it's so inflatable you could just create these new you know chains and in in perpetuity right so it's just going to inflate the value away this was an early criticism

of bitcoin um what about that criticism for nfts right so like if board 8 yacht club has now turned board apes and created a whole new set of i don't know how many there are but say ten thousand mutant apes does that not dilute the value of the original board apes and what's to stop somebody else from going and creating another set of like ten thousand board apes that are i don't know robotic board apes or something like that uh does that not start to dilute things what's your take there david yeah there's there's a lot to unpack there actually like for one like the mutant apes add up to the richness of the story of the original board of apes um i don't know if this is completely true but if

you had a board ape that doesn't mean you actually got a mutant ape you'd also have to buy it with everything everybody else so there was no like original like sometimes with bitcoin like when bitcoin would fork like into bitcoin cash bitcoin owners also got the bitcoin cash right sure um but bitcoiners also say like every time that bitcoin forks it's just an airdrop of free bitcoin because you can sell that bitcoin for the original bitcoin and that actually instantiates value back to the original bitcoin um but there's also a difference to talk about like the uh punks are kind of considered like the bitcoin of nfts like the original it was valueless for such a long time it's a shelling it was always the shelling point at og um but the difference between bitcoin and crypto punks is that bitcoin has a massive security expenditure budget and board

and crypto punks or any other nft they don't because there are tokens on ethereum and they don't have consensus they just they're just items on ethereum uh and so like that also kind of changes the the the comments that would make me think they're they're more easily inflated then right because bitcoin at least has that moat where hey you're never going to achieve bitcoin's level of security if you're just kind of a fork or a you know a a new chain that's based on bitcoin code whereas like every nft has equal amount of security and it's all social consensus around these things yeah but i would say it's also social consensus around what is the most valid bitcoin chain so it's all just subtle social consensus and that's why we have layer 0.

all right well turtle's all the way down david god damn get that saved [Laughter] walked right into that one uh well let's talk bitcoin stuff what's el salvador doing with bitcoin that that seems to be the story for the last couple of months but something new happened they just approved a 150 million dollar trust fund to support bitcoin's ambitions what what is this this is part of the original plan when el salvador rolled this out correct right so yeah this 150 million dollar trust fund is committed to buying bitcoin from el salvadorian citizens citizens who want to swap bitcoins for dollars el salvador before before this whole bitcoin thing its national currency was the dollar uh and now it's also bitcoin so now they have two

national currencies um and this trust fund allows people to swap between bitcoins and dollars for people that want dollars um so that's what this is for it's basically uh a 150 million dollar fund that will eventually turn into but only purchase bitcoin over time what do you make of all the protests that we're seeing so we're starting to see these protests of uh el salvadorians who are anti-bitcoin like no bitcoin they're holding up signs that say this in spanish like what uh what are they protesting and what do you make of this right so this is one of the big criticisms of this whole move is that uh bitcoin is supposed to be free to money it's allowing it allows people to opt out but then a nation state imposed bitcoin upon its citizens um granted it

went from like having one choice of currency to a dollar to having two choices but like it's still like now businesses are forced to accept bitcoin now you can there's our like legal precedent for opting out of that like forced coercion into owning uh into accepting bitcoin if you don't have the technology for it but i think people are kind of just like they don't really care and they just don't want bitcoin to be like a thing in their country and they're expressing that um that's really it's really weird to see it's kind of a juxtaposition i've not seen like so you'd see protests uh against bitcoin or cryptocurrency for energy reasons energy consumption reasons but this is a protest uh from some citizens to their government saying like we don't want this thing as legal tender right like we don't want to

use this thing as money and you're forcing us to right and that is like new territory i'm not sure what they're the specific concerns are but uh that feels top down in a way that bitcoin has has never really been it's always been this uh this opt-in bottom up movement now i almost wonder if this is like a backlash against against kind of that approach uh i don't know if it's a great look to be honest it's it's it's different than anything i've seen in crypto yeah that's why it's important to maximize choice well let's talk about this um jack dorsey is still doing a lot with bitcoin uh looks like they twitter is adding the ability to tip using bitcoin on twitter um

i don't know man this feels very like twenty 2018 to me what's the plot um if you're a bitcoin or do you want to spend your bitcoin we talked about that like probably not payments why not remember payments payments using bitcoin like never take stable coins like it's just um yeah any takes here it's so it's such like a it's like yeah bitcoin is innovating we made tipping inside of twitter it's like god damn it do something cool bitcoin the bitcoin section and the weekly rollers are always famished and i swear to god we try and find bitcoin news every single time and it's just and this is what we get we get twitter tipping with bitcoin goddamn that's all we have right now uh it'll

get better though you know bitcoin's got the last story yeah david never fear not convinced uh okay let's talk regulation i i don't know about the growth story behind tether so the uh the province of ontario has actually prohibited tether look at this list of prohibited crypto assets a list of one bullet point leather etc uh it's interesting to me though that that like nation states i guess this is a this is a province in this case are starting to squeeze uh tether maybe try to squeeze it out of existence and maybe we'll see more of this for tether in the future probably not a good sign now there are other more legitimate stable coins out there like usdc that seem to be taking

steps to say hey we're not like tether like look it the whole thing is backed by treasuries um you know we have money in the bank account we're super transparent so i i think that usdc and other staple coins like it will probably win off of this move um david you have any takes on this ftx acquired a crypto derivatives exchange ledger x i think ledger x has uh some cme blessing or some cftc blessing if uh if i'm remembering correctly yes they do what do you make of this um this acquisition from sbf of ftx uh i don't have too much of a take uh i didn't i didn't even know what ledger x was um i don't know like a small crypto cme

basically our u.s citizens are going to be allowed to use it yeah well they are allowed to use it okay um right now it's kind of just like a mini cme features for crypto i believe it's my understanding of it um i get i guess my take here is like sbf is buying everything right now it's not not goldman sachs though not goldman sachs not yet he's worked his way up to it but like um people have heard me say this before that doesn't make me super comfortable yeah i have this fear that what we might end up doing is just replace one set of bankers with a new set of bankers and sbf is definitely um banker is in his name

sam bankman uh friedman yeah um and i you know like nothing against him he's he's a capitalist making capitalist plays but like i don't want to see that i want to see a more decentralized money system so uh we'll keep monitoring this kind of activity do you see this david speaking of centralized exchanges crypto dad uh john carlow he was the former head of the chair of the cftc he had joined blockfly's board of advisors and he just quit so we just kind of quit and we know blockfy has been under increasing regulatory scrutiny for their interest products so it's a little bit jarring to see somebody like giancarlo quit their advisor board and it seemed

like in a sudden way do you have any takes on this yeah it definitely feels like when brian brooks quit finance just like months after becoming a binance us after like becoming its um ceo uh people just don't want to be part of companies that have like significant amounts of regulatory scrutiny um uh the block fi is going through like a securities issue the sec deemed one of their lending products to be securities and they are currently fighting that fight um meanwhile also blockfi was going through a raise and i don't know if the details of the fallout on that have come out but it was a big question mark as to whether or not they would actually be able to pull funding as a result of after the sec came and said that their products are securities um so that story is still on yeah do you

know if the sec said this i you know my understanding is definitely new jersey has raised some flags about it maybe some other states i don't know if the sec has fully weighed in about it i i'm pretty sure that's true but maybe listen to double check well i do i do know it does look like um here in the story lead investor third point llc pulled out of their um their recent raise so they were part way through they're getting some investors pulled out there's some regulatory risk that's being raised in organizations like blockfy um i do think they have a legitimate product and regulators need to give them a path towards legitimacy i mean it's not a d5 product but um i don't know i mean sure yeah yeah do we live in a financial prison or what i mean block five interest account

i can't can't open one can't understand the risks uh we'll see how this turns out all right to wrap up this week in the news we have to talk about this whole loot phenomenon ryan have you been following this whole loot thing i i have luke david all right so there's this whole insane insane loot phenomenon that has gone on and it's really really important i think as a as a concept we don't know if this this particular loop thing is going to be the thing that it promises to be but people have gotten really really excited about it and it's taken the nft twitter sphere defy people by absolute storm and so um can we explain what loot is first because what's so crazy is it's it's bizarre it's just a a list of texts right david mm-hmm yeah if you maybe

maybe you should scroll down you can find uh find out i'm gonna go to open c and just like open uh type in yeah okay so we all know nfts they are jpegs we're all trading jpegs and so these new nfts came out and if you look on openc it's just a black square with eight lines of text on them and if you're familiar with like uh diablo ii a lot of these items came out of diablo ii short sword uh ancient helm mesh belt of reflection divine slippers of brilliance necklace of skill silver ring these are all like loot items you would find in an rpg game uh and so like what what the hell is this like jpeg doing with just a list of items and it's important to differentiate what's actually going on here when you buy these nfts on openc or

anywhere you're not buying the jpeg the jpeg is a reflection of the properties of the token and so there are properties inside of these tokens that have eight items inside of a loot bag and these eight items when you purchase the bag you get all of the items and so this has this is like flip-flopped what an nft is like previously an nfd would be a jpeg and it would tell you what it looks like now we have these loot bags which are just a token with properties inside of them that have that are associated with items and that allows the uh whoever wants to manifest these properties to choose how to manifest them visually right and so we have this great graphic uh by uh the twitter

account tan davos who says a typical nft is a top down approach where the creator determines what it looks like and then the purchasers buy it but you know the nft just looks like that but on the loot approach we have this like bottom up approach where uh the people around the nft can build the game they can create the avatar they can write the lore write the novels and and it's all bestowed upon one token uh and so this is a complete like you know paradigm shift of what it means to have an nft and i mean there's so much energy that went into this in the last week that like god it was exhausting trying to keep up with it it felt like defy summer okay so let me make sure i'm tracking so far so this is

kind of like if anyone's played a an mmo rpg right like a diablo or a world of warcraft or something like this this is almost as if that entire items list including all of its rarity was like exported right and now it is uh it's being exported and put on chain in these nfts that individuals can buy and each nft might give you you know kind of like a certain set of items and armor and all of these things but that's it it's just like the bare bones export of this kind of scarce rarity system and list of items and there's how many like 7 500 or so of these loot drops uh yeah yeah i think they're yeah 7 500 but there's but

that's also just one component of it right like there could be more it's it's this is kind of like creating a community creating a dao in the sense that like all these people are participating is like hey i think we should do this next and some people and like not only do you are can you suggest it but you can also just go and do it and you can append on whatever you add onto these base like primitives right so why are people going and doing it though like so so i have two kind of questions for you on this like one is why are loots so valuable right now so i mean a few days ago these things were like what did they start i mean you could start it for free minted them for free like yeah um uh fair launch right everyone likes

fair launches when i first looked these things were trading at like half an eighth or something like that or one eath and i was probably like later to the game right um but now these things that you know that the floor rate is like 10 eighths yeah right 12. like 12 last time i checked right before we recorded 30 40 50 e like so hey why are they valuable right and like like be what like what do you do with these things why are they valuable people are speculating that these items become like the epicenter for the future metaverse right they are the first nft tokens that don't impose what they actually look like upon their surrounding environment and they allow the metaverse to come around them and this is what i wrote

about in my article this week which is very much a part of the story and i think ryan if you actually go to that article we can actually look at and uh illustrate uh what's actually kind of going on with this and there's a few um examples that we can talk about first off definitely read the article uh it's relatively long but it's in my opinion a pretty um good definition for how the metaverse is actually going to emerge and we if you if you scroll down ryan to uh the the loot section is going to be like most of the way through it uh right keep going keep going keep going keep going keep going right here okay okay so so here's here's what the the loot looks like on openc but there are more specialized websites like xerox inventory.app that actually

illustrate the properties of these tokens better than openc does and so you can actually see the colors of the rarity of each of these tokens if you want to scroll down ryan just a little bit more and so think about this difference we have open c that is just like gives you eight lines of text and they're all white but we have zero x dot app which gives you the same eight lines of text but it also illustrates the properties of the tokens to a significantly more degree it tells you the rarity of them and so there's actually this is a different layer upon these same tokens that tell that express those tokens differently and right now like all of the the difference between openc and this website is just that now the text is colored according to the rarity of the

object but take that into like keep going with that logic right like what happens when a website doesn't just like tell you the text of the objects but actually manifests the objects into a character's hand or what happens when you put on vr goggles and the token that you have in your vr wallet actually puts a a heavy belt of rage on your on your character right like this is where this is going okay so that would be insanely valuable but like now this kind of gets to the the second part of my like two-part question which is like why are people actually building all of these universes and games on on top of things and like like what's the economic incentive for them to do that

right so if i'm building a massive multiplayer rpg of some sort right of course i have to create like this the scarce items engine internally but that's because i'm building a game and at the end of that game i'm going to charge like my customers for that make money and that's how the economic engine works why would somebody build on top of loot why not just like create their own right so that's a really good question and like we're just going to have to watch this unfold in order to answer that some preliminary answers are that if you own a bunch of loot tokens you kind of are incentivized to add on more rich parts of the universe on top of the loot tokens to give the tokens utility since you own the tokens you want them

to have utility because that makes them more valuable so there's that there's also you can build parts of the universe that you can charge for and so this this is why uh my article i think i i super recommend if you want to dive deeper into the subject and i the point of the article is to illustrate how the metaverse will actually arrive and the metaverse will arrive by a bunch of distinct separate components becoming interoperable with each other and so people uh who have you know all these loot bags have minted other things and so now we also have like ability scores that give you like a character strength nine dexterity seven constitution thirteen and then there's characters which are actually literally illustrations of a character uh lucas of the editor i think

actually took out that photo but there's also realms and there's realms which are parts of uh literally maps like generative maps in the same way that art blocks are generative realms are also generative and i wasn't able to put it in my article because this came out this morning but now there's also gold and so there's a now a fungible part of this like loot universe that is gold and importantly in order to mint gold you had to give the creators .03 ether and so they actually got paid for the creating that part of the metaverse the gold part of the metaverse and so i think all of these are going to be stitched together like they're all kind of puzzle pieces money legos in the same way that like defy has money legos for all the applications like the legos of

ethereum just cr of nfts just creates the metaverse around the loot and this concept is why so many people have gotten so excited about it because by not imposing a visual cosmetic layer upon these tokens it allows the people around these things to impose their perceptions as to what these tokens are and that like expressivity is as uh allows more things to be built it's like a writing prompt yes yeah the story's not written but we've got this prompt and i think you alluded to the economic incentive here so like this this is why this this week has been so crazy for anyone who's gone down this rabbit hole and purchased some loot is because it's not only purchasing loot and like speculating on on that entire market but

all of these derivatives that you generate like the abilities and the characters and the realms that you're mentioning even the the um the adventure gold that you mentioned you actually have to own um you have to own loot in order to mint those things and participate in those other products and also like these things just keep spinning up on a daily basis maybe multiple times a day these new kind of like loot derivative products it's kind of clunky like in order to claim them you have to go to ether scan and you like um you know you're interacting directly with the smart controller there's no website there's only no website to do this but everyone's speculating that this entire loot universe is going to be absolutely massive

and these are the economic incentives that essentially um like inject energy into this entire system it's because now you have this entire loot economy and if you want to you know create a new product on top of it then you can charge a fee for that maybe like it's some fee when when things are minted and like it's very organic and very weird very very decentralized right very bottom up um but also magical like i think i think um skeptics will look at this and be like uh but guys you didn't actually do anything yeah and it's so cheap there's no game what are you talking about all i see is um you know list of seven words

and somebody's going to pay like 20 000 for that this makes no sense right but i don't know something about it makes makes more sense right when you put on the like the framing of um the metaverse and this collective building that that we're doing to uh to bring it about and so people are speculating that these like loot tokens are like the crypto punks of the metaverse right they're the very first ones they're the zero to one moment and they're going kind of in the same way there's like the fat crypto punk thesis where all nft value gets gets pushed down to crypto punks because they're the ogs like the people are speculating that these loot bags are kind of like the same thing for the metaverse and so that uh energy behind that speculation can actually

like manifest it into reality because if there enough value goes into these tokens like well there's enough incentive to actually build the damn thing because of all the speculation that's going into them so weird also so cool i can't wait to see this experiment unfold yeah there is an element though of does this feel like a you know a massive multiplayer game only for the rich though like you have to fork over some significant cash or you have to be early you need to be wealthy or you can be early in order to get in on this what's your take yeah so the original 7500 loot bags like if the community wanted to mint more like as and if we collectively decided that that was a legitimate uh choice and i think that's possible that's possible for for

the community to do uh and so this that might actually be a route for funding say like enough contributors dedicated contributors rise to the top and maybe some team forms around this loot ecosystem and maybe that team needs funding maybe they fund themselves by minting more loot bags so that instead of just having 7500 bags we have enough for the whole entire planet to play in this whole rpg now the cool thing about this loot thing is that like when we talk about rpgs or diablo 2 or like my favorite rbc rpg was borderlands like we're talking about just items inside of that one game when it's on ethereum it's an rpg for the whole entire internet right and so we are increasing the scale as to what

this where and how this game can be played so like and ultimately rpgs are just life like you go through life you acquire items you put them on your bookshelves you acquire new skills you level up and now we're doing it on ethereum and and that is what is creating the metaverse so bring your item bring your loot item into any game right basically that supports it right and any game that answers to the properties of the tokens is a part of that token's metaverse and the loot community is economically incented to propagate loot everywhere so we actually like the loot community actually wants to talk to you you know blizzard or epic games or all of these like game publishers and get them to support loot right yeah maybe like

provide grants for new games to support loot sure the interoperability nature of loot incentivizes it kind of in the same way that like uh like taco bell uh allowed like gave out free crunchwrap supremes to doge like coin holders whatever right you've got free marketing free engagement free customers composable communities posable communities right and so like games can be like hey like we included loot tokens like now you can play our game with loot tokens and all the loot token holders like yay we reward you with our engagement now we're actually going to play your game as crazy as this sounds like i know you know i think this is why the crypt crypto is feeling like this is a new unlock it really does feel like that

feels like a paradigm breaking moment for sure yep we unlocked something new here we're in uncharted territory and it's going to be exciting to see where this goes extremely speculative extremely risky nothing is certain this could just be the top of the nft markets who knows it could be that too we could look back and be like we were paying what for lists or lists of tokens what that was the bubble that was taught people were gonna build it like that's crazy why would you think that you never know guys uh that's the fun of crypto guys we will be right back with the takes for the week and of course the meme of the week but before we do we want to thank the sponsors that made this show possible gemiini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini

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ave you can leverage the full power of defy money legos yield and composability all in one application on ave 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 guys here are the hot takes of the week let's start with this one from alex uh d5 brings the capital nfts bring the people capital people d5 for capital nft is for people what do you think david short sweet to the point uh these memes about how defy operates and how nfts operates are getting more concise and more punchy i like it uh i i had this take this week david this is twitter should roll out a blue check mark for nft profile pics just validate them against ethereum every

social network will be doing this soon it's the most obvious feature ad ever dude i feel like it's the most obvious feature i've ever done no no no no no no bitcoin tipping bitcoin bitcoin tipping that's why i was get like meanwhile we're doing that with twitter i mean if social media is asleep at the job new social networks will uh come up that actually use these valuable nft items as profile pictures as items in their universe use their lore and like leapfrog them so i i think twitter will be forced into doing this but it just seems to be the most obvious uh feature ad ever it's like um i know you've seen some people who are kind of plagiarizing i guess you're crypto punk um and anyone could do that it's true you can click but if you had a

social network that was like enforcing the validity of that that punk and like um verifying that on jane and putting kind of just a simple check mark this is valid or not um i mean it just seems so obvious you do that and by the way that would inject a tremendous amount of additional value in the nft economy because if that becomes a standard and also all social networks do that then like the whole right click save thing becomes completely delegitimized like you can't right click save because you have a fake cryptic punk and anywhere you propagate that on the internet in the metaverse it's going to show up as a fake nfts are a social phenomenon and any like they absolutely belong in any and

all social media platforms they are they're people flexing flexing their stuff and they do that on social media so the the profile picture avatar movement i think has absolute staying power and also to the point like crypto is rampant with like scams like i see fake ryan's all the time trying to trying to dm me and get my ether from me but if i was it's actually me david i'm trying to get your ether you're making your own accounts but like imagine if like all these you know vitalik impersonators or whoever impersonators uh had to put an nft as their profile picture and couldn't verify their ownership of that nft like all of a sudden this becomes extremely easy to to differentiate

impersonators versus non-impersonators because nfts are unique another part of my metaverse article talks about how identity human identity of the human spirit can actually be captured by ethereum addresses on ethereum based on the nfts that they interact with like every nft is its own object and as an ethereum address you have your own story and the story that you write is the of the nft objects that you come to interact with yeah you could be you could be a turtle or you could be a crypto punk in this new in this new economy yes way better than turtles by the way yeah but you know what's cool too is uh we did this article with brantley from ens about single sign-on for ethereum right it's always like oh that would be cool if we had the ability to sign on to

every app using a a private key any private key right but the question is like oh how is that going to happen why would new platforms adopt it maybe it happens because nfts are awesome right like an um your public private key pair owns an nft and has to own an nft so that could be a way to propagate like a public private key single sign-on ethereum everywhere because if you have that nfte functionality you're already doing like 90 of the work to integrate that uh anyway super cool let's do this take diamonds versus jpegs which would you rather have david yeah tasha says carrying a rock around your finger is no less absurd than buying a rock jpeg on the internet if you can't appreciate the

absurdity in all human rituals you'll be a slave to past rituals not a creator of future ones such a punchy take it almost has 10 000 likes that's crazy awesome so like this is why it's important to stop being skeptical on nfts like you don't get to right click save them uh and the the she hits this so hard at the end you'll be a slave to past rituals rather than create future ones that's so awesome get on board with the nft trained people look it's memes all the way down and crypto's just exposing exposing the fact that it is and it always has been um i love that take uh let's let's see this uh david so vitalik did this experiment on twitter so he follows 268 people and there's a tweeting twitter setting

where uh you can only rep you can set your replies to only the people that follow you basically and so he did basic an impromptu ask me anything on twitter a lot of interesting questions uh and answers arose but this is one of my favorites david um someone asked him his biggest regrets in his ethereum journey and had to be non-technical and vitalik said the whole eight co-founders thing and choosing them so quickly and non-discriminately was his biggest regret uh super interesting insight there um this is definitely like a hindsight 20 20 thing right like when you don't know how big ethereum is about to become you're trying to just get this out the door you you choose people to help you do that um and then you accidentally choose people

like gavin wood and uh co-founder of cardiano charles and charles hoskinson yeah like of all the co of the ethereum co-founders italic is the only one that's left except joe lubin is kind of on the periphery-ish oh yeah was he a co-founder yeah is he one of the eight oh okay yeah he's one of the eight okay joe lubin definitely counts absolutely okay yeah there's still there's still too many of them forked off and did their own thing many of them like many of them forked off did their own thing um you know didn't really help ethereum that much others just totally dropped out like just didn't really develop the idea beyond the initial months um you've read the infinite machine by cami russo right it goes through that entire story and uh

and you can see it um the thing that vitalik said was good though his three favorite podcast bankless number one top one he number one but i'm sure he put it in order wow i'm sure he put it in order two other podcasts one is called rationally speaking which i've not listened to and the his his third favorite hardcore history which i absolutely love so man huge honors there david i'm like i saw that tweet come out last night and i was just like oh my god um you know this feels good i i was able to ask vitalik my question because vitalik follows me and my question is how do you define the metaverse and he gave in a single tweet the same definition that i gave in my like 20 000 word article which is even more reason why you need

to go read the the metaverse article that i put out on bank list not too long ago yeah absolutely um he also did this david i guess elon musk asked him a question what is love i don't even know how to pronounce this but then vitalik responds with uh elon musk's uh kid's name that he has with grimes which is like x a e a twelve don't hurt me it was what vitalik said so eon says what is love and then vitalik responds child's name don't hurt me so like you know doing a little bit of a meme which is yeah this isn't going to become important very soon so i was not in pop culture i was not plugged in enough to know that elon actually named his his

kid this like a series of cymbals i don't even know what this means to you uh yeah okay the a12 is the sr-7021 sr-71 plane the version that came before the sr-71 was called the a12 and so they named it at one part after a plane x and then each one of these things has reasons behind them they're all stupid don't name your kid this like you're not well how cool you pronounce this uh it does have a correct pronunciation i don't know what it is well it's it's been done so you know the child's there maybe he'll go by 8 12 who knows um david give me this last take us home with this last take yeah i i tweeted this out right before we did this roll

up i said can we please just pause all ethereum blocks this weekend we can resume after labor day i need a break ryan this week has been absolutely exhausting not only have we done like 17 shows this week but we also had this loot phenomenon which takes forever to keep up with and moves it's almost a full-time job just to keep up with that and like god damn dude like i also we also have three shows today and three shows tomorrow uh i mean did you call this ethereum brain i call this the ethereum brain and eric has a great take like right under me he goes have you ever seen the 1950s horror film blob uh it's basically ethereum it traps us and we can't get out apparently there's a movie about

like a blob that just like sucks everything in this is this is what ethereum does it sucks you in and it doesn't let you leave mental energy time capital every single asset like i can't be mad because this is so amazing and exciting in the future but it's hard to do anything else guys if you're feeling that uh ethereum brain that fatigue what's the best advice you have david uh i mean this is what okay so this is why everyone should also listen to the layer zero podcast that i did with eric that came out this week we talked about strategies and he talked about like it's just like quitting cigarettes or like quitting drugs or like quitting alcohol or quitting whatever like you're addicted to it's a skill you have to learn how to like take a step back and

like do something else because if you don't like ethereum will suck up all of your time it will give you it will suck up as much time and energy as you give it it totally will so if you feel it yourself going down that that um that track and have some ethereum brain like encourage it take some time away from screens just take some time over the weekend maybe this labor day relax enjoy some time with your family don't worry bankless is holding it down we will be releasing we will take that energy off of your shoulders and put it on ours i mean some people like look man how many podcasts do we do every week right like like five minutes plus the newsletter plus everything right there's a lot um some people you know just listen to the weekly roll ups and that's

kind of enough for them for some weeks right and then they go back and listen to other episodes later right so anyway um be careful the space can uh do a number on you crypto addiction is a real addiction and uh it can exhaust you it can um you know you can miss out on things in the real world right yeah ethereum is redefining humanity and it will also take your humanity from you if you let it i feel like we're speaking to ourselves yeah we got we damn it we need we need some goddamn therapy all right wait for new nft all right somebody dropping nft so i can get distracted all right uh let's get to this what are you excited about this week david oh god uh i'm i'm just excited man like i don't

have a single specific thing but like there's so many things to be excited about it really feels like the stars are aligning for ethereum like there are so many things that are happening on ethereum that are making it more and more useful for the outside world also making more and more sense for the outside world even though like million dollar rocks are kind of crazy like at least you can talk about them eip1559 is outperforming everyone's streams we get all these numbers and things to look at so that's crazy uh there's also this nft mania going on which is really letting time fly and that's all of a sudden like proof of stake is just going to be here so that's really exciting there's just so much to be bullish about and like you talked about it in the market section like we're kind of getting out of this like

crab season and starting to get bullish again like it's super it's the super cycle man super cycle's back on the menu uh it's just going to be like so much super cycle and then crash you think no we're going up up up up up up only up i mean we'll have a bunch of like little little crashes but they won't be as much as they are up yeah we're never going to see a negative 95 percent no never never ever uh not financial advice uh i mean 50 50 50 crashes over and over and over again along with like 300 run-ups there you go super cycle anyways that's right that's what i'm excited about i'm excited about being excited that's good man what are you excited about ryan

i think i'm excited about the metaverse this week right so like um did you read an article a few i've read that articles is absolutely fantastic um we asked ralph paul what his definition of the metaverse is um he said digital fluidity which is super interesting but like we've had the internet for a while and people have um do you remember that game like second life yeah i don't know when that came out but it was like oh this is how humans are going to like spend their time and we're all going to be in this virtual world and you know what i think the thing that's been missing from all these experiments in the past is it's ethereum right there there's never been a um an organic economy on top of these systems there's never been a property rights system

there's never been like a a center of commerce it's always been built more like the metaverse and virtual reality experience they've always been built more like university campuses rather than like cities you know like a city is like organic and you know it's like there's different sectors and different groups and it's very chaotic it's very bizarre rather than cathedral right um the metaverse hasn't risen up because it's it's basically been all you know cathedral cathedral based and i think the ethereum piece is going to accelerate the movement to the metaverse and you know some people might not like that like some people like like the physical world but i i just feel like it's inevitable right so

it's kind of like you may not like that jpegs are so valuable but like by resisting that movement you're just going to disconnect yourself from the the wider movement that is that is humanity and i don't know you're going to fomo in later i don't know you're going to realize it on the back end of this i want to be pressing into the frontier of the metaverse and that's the thing the experiments are going to get weirder there's going to be massive opportunities for everyone who discovers this early so i guess what i'm excited about is the metaverse and the invitation the opportunity is like plug in now we are so so early this whole loop phenomenon is just like another unlock and we'll see where that goes but it is so early to be here but make sure

you're here make sure you're plugging in yeah just think about how valuable the metaverse is and how fortunate and lucky we are to be at the beginning of it i think people are all have the conviction that the met whatever the metaverse is it's coming and i think i think there's a very valid case that it is being built because of the property management system of ethereum actually instantiating objects into the metaverse whatever the metaverse is and you are watching that in real time and you get to tap into the value that is created and so like that's why there's so much like energy and excitement on this loot phenomenon and that is just the beginning right like there's going to be so many more loot things that come out and if you are paying attention and if you are on on on the ride like you will be able to take

advantage of the creation of the metaverse you are watching the metaverse being born make sure you have stories to tell your kids about how you were there but also take breaks also take breaks sometimes also take breaks not too much all right david meme in the week time hey this art piece is phenomenal explain this art piece and then we'll get to the meme yeah so this is a famous renaissance painting out of the romantic era uh and it's uh i can't it's like uh journeyman standing on frog over sea storm just a very just like romantic image of this guy like looking over this vast like foggy sea ocean uh again like it's a it's a a meme of the romantic era of the renaissance

paintings and now we have this and so this is the the same image overlaid but instead of the guy standing on the sea rocks he's standing on an ether rock which is going for like 400 million dollars and then there's just a sea of jpegs in front of them and also this guy is now an alien crypto punk with a beanie um this is the new frontier this is the new frontier yeah absolutely uh great meme um guys thank you so much for hanging with us of course none of this has been financial advice is risky so is defy so is bitcoin so is everything in this space but we are entering the metaverse this is the frontier and we're glad you're with us

on the bankless journey thanks a lot and if you're on the youtube get ready for our moment of zen oh baby don't hurt me don't hurt me no more [Music] [Music] 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

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