ROLLUP: Inflation, Nike NFTs, Disney & Marvel IMX, CryptoPunk Sale, Ledger Debit Card

Transcript

like rugged communicates a lot right it communicates so useful in the 2020s so many so many institutions are trying to rug us right now hey bangla station happy third week of december is friday morning you know what time it is david tell him oh it's a friday bank this weekly roll-up time we're we roll up the whole entire week in crypto and i know i say this every single time that it's such a crazy week there's a lot of stuff in this week a lot of stuff got released a lot of cool news happened some cool takes happened and we are going to go through all of it because that's what we do on the friday weekly roll up so grab your coffee it's going to be exciting we're going to have a fun time uh as we start to wrap up this year in crypto guys a few things

that's going on nike is entering the metaverse space for the acquisition of a company also marvel and disney issuing nfts on immutable that's a big story polygon just makes a big acquisition as well doubling tripling quadrupling down on their zk roll up strategy and their roll up strategy in general also ledger releasing a debit card there's so much we have to talk about but before we get in david man you're doing this on your birthday and i admire that happy birthday to you sir i'm uh i can't believe we're doing a roll up on your birthday just you know the timing worked out that way that shows the dedication that my co-host david hoffman has the bankless community he's willing to do this on his birthday not only your birthday the birthday of beethoven mm-hmm i am

told yes yeah me and beethoven share the birthdays and it's just very very fortunate that my birthday landed on a thursday this week or this year because i don't know the way the weekly roll-ups are i think the most fun thing i do every single week so there's no better way i think i could spend my birthday than doing a weekly roll-up with my business partner here dude that's awesome that's touching wow no wonder this is uh the greatest podcast in crypto there was dedicated hosts that's what i'll i'll do a podcast on my birthday too how about we do that just you know share share it in the burden all right well you know what before we get into it we got to talk about a few things that are going on the first is the permissionless conference it's coming down the pike they just released

another tranche of tickets we'll include a link in the show notes that is a conference that happens in may it's going to be the biggest d5 conference ever not of 2022 ever the greatest defy conference ever assembled so we're going to talk about the metaverse defy regulation institutional stuff you've got to get it nft galleries out the ying yang it's gonna be fantastic yeah no it's gonna be every parties every night's a party every night a party every night every night there's gonna be at least three parties i i'm told i'm you know some of them i will spend in the hotel room but you know some i'll be there for some of them we're definitely throwing a bankless party as well so hopefully we catch you there grab your ticket they go up every two weeks in price you want to get it early just like crypto you got to

get earlier you just fomo in later also let's talk about cash flow so cash flow wanted to uh tell bankless listeners about their service it's really cool so this is like a otc desk for d5 david what's an otc does for people who aren't familiar with that term yeah otc sounds for over the counter so it's kind of like a white glove service if you have a bunch of money and you are going to make a big trade an otc desk can help you optimize the price that you get and so they they search around it's kind of like order routing but it's manual because this this is coming from the old world and still existing in crypto today but now with cash flow we have a d5 service that does otc like activities

but now as a protocol once again software eating the world of finance through defy this is really cool because it's trustless it's non-custodial it's bankless the old otc marketplaces were completely banked and this is built on d5 so low gas fees mev protection as well so you can use cash flow today for some of your otc trades here's a bit of alpha for you in the coming weeks hash flow is going to open uh liquidity pools so individuals can invest can deposit funds in these liquidity pools and provide liquidity to the hash flow otc desk that's some early alpha for you if you want to get in on that it's going to be yield on your various tokens you can sign up for that for early access

there's a google form we are including in the show notes make sure you check that out i think that's going to be some alpha for you as well uh speaking of alpha david let's turn to the markets is there any alpha to be had in the bitcoin markets today my friend what do we have from a price perspective yeah we started the week at 48 and a half thousand dollars and then got up to the high high price of 50 and a half thousand dollars and then we had what i like to call a big oof candle uh where which one is that this one yeah it's the one that goes all the way down to 46 and a half thousand dollars and really hung out real real low for a while below the 50 000 mark and then

almost tried to reclaim it earlier this week had a little bit of a resurgence yesterday um but overall still down two percent on the week um a big oof to start the week with a small to modest recovery but not yet fully recovered so down on the week two percent crab december crab december i don't know what santa's bringing us maybe it's higher prices but maybe it's just more crabs what's eath doing eat starting the week at 42 000 hit a and that was its high uh it's oof candle brought it all the way down to three thousand seven hundred dollars dipped a little bit before that but but then recovered and then also had a fantastic resurgence above four thousand dollars so reclaiming the four thousand dollar level reclaiming that mean line

um but still overall down eight percent on the week so uh oof oof oof indeed but this is still like look at this face man this is my i'm not worried at all face mm-hmm like it could have been really healthy yeah it's just this is fine like uh zoom out a little bit actually why don't we do that zoom out to the year wow it looks like nothing looks like we're doing okay this time uh last year actually let's do the the full one year this time last year we're hanging out in the 600 range for ether 638 so a pretty good year all things considered as we reflect and we close things down let's talk about the ratio how was the year for the ratio look at that on a one-year timescale scale also

a big victory for the ratio uh and the ratio during the big oof week which was again this week started the week at uh .086 which was really pretty pretty damn high uh all the youth people were really really stoked it fell down almost below .08 and did not break below 0.08 and now has reclaimed .084 so my mind is like it's it's down on the week but on a oof week it's doing pretty good uh and so uh held holding the point zero eight again that mean line is really really important and overall really again signs of strength signs of strength doesn't usually do that on weeks like this for sure so that recovery has been important to see and still um indicates

a lot of strength in the ratio how about the bankless bed index so that is a third bitcoin a third defy and a third um ether what's uh what's that looking like on the week david yeah start of the week at 143 dollars bottomed at 123 dollars and currently is at 142 dollars so down like one to two percent on the week so flat week so it's it's always a little flatter a little less volatile in the bankless bed index and that is the purpose of the index um a good asset to holding your portfolio i think uh you know it's not a good asset to hold in your portfolio david oh i have a guess ryan tell me it's dollars okay seven percent six point eight percent annualized inflation this is not uh asset price inflation which we talk

about all of the time this is the inflation that everybody actually everybody else actually sees and this is cpi inflation the price of energy the price of rent the price of food at the grocery stores up seven percent year over year on all of these things if you look at the composite uh that's not good man right wages are increasing by you know two three percent max if you didn't get a seven percent raise in the last 12 months you got a pay cut you got a four percent loss right all your dollars went down uh the only way to escape that is of course by holding assets this is um something we're going to get into a little bit in the macro side but let's first read this take from our friend jim bianco it's basically uh the country

knows this is the u.s inflation is hurting them and they're not happy about it there was a cnbc poll yesterday that was bad for biden why because inflation is now the number one concern no longer coronavirus not kovitt anymore wow inflation is number one concern and so jim goes on to say what does the fed do in response to this and there was a fed meeting earlier in the week that we're going to touch on briefly but he said the fed's choices are both bad okay you either respond to inflation and hike interest rates aggressively increase interest rates of course that is one lever the fed can pull a flattening yield curve says this is what the fed will do uh and they did end up doing that or they indicated that they were going to

do that or you don't respond to inflation at all and you destroy your reputation and democratic party not good in a midterm election year that's not an option either being in the party in power right now feels like the hot potato right like the republicans are totally going to blame the democrats for all this inflation and it would totally happen in reverse if it was the other way as well totally it's like it was going to happen no matter what it happened it's bound to happen no matter who's in charge and and so some quick uh numbers that i got from a friend so definitely double check this these numbers yeah but uh this is talking about how the fed is trapped uh and so just doing the napkin math on our 30 trillion dollars of debt at five percent interest rates if we

were to hike rates up to five percent that is 1.5 trillion in interest payments per year which is about half the annual budget for the us already running at a one trillion dollar deficit per year so when people say the fed is trapped oh yeah the fed is trapped they can't raise interest rates because there's too much debt oopsies that's also what's what we call a big oof yeah and you know you know what so like i feel what's happened is a chain of events has been set in motion that is now like inevitable it's just gonna play out it doesn't matter who the central banker is whether it's joan powell or someone else doesn't matter with his president biden or someone else they're all kind of active they no longer have control that's what i feel like it's kind of like we're in the

jesus take the wheel economy you know it's like we don't even know where this is you didn't even know where this is going right oh my gosh yeah and i i really feel like no one is actually in control and so the fed is in a position where they're just kind of responding and what they did do this week interestingly enough is they indicated this is like you know you got to read the tea leaves and everything jerome powell says but they indicated that they were going to raise the rates three times in over the next year in 2022 and of course that can change but what was interesting to me david is like the market's reaction to this was like oh cool that's not so bad and then like stock prices resumed their incline all-time highs yet again like right this is the moment where where bitcoin and

ether actually like bounced off that floor a little bit exactly that's that was that moment yep so it was like an oof in anticipation of uh jerome powell's speech and then after it's uh it's not so bad uh even though they're raising rates right was kind of does the market believe them is the question i think tbd on that does the market believe them will they actually yes will they actually raise rates or was this less bad than they thought it's really interesting to me david that um the european union banks they said we're keeping our interest rates at zero percent right go fed the fed can do what it wants so this is um you know definitely not following this is not like global they're not following what happens there uh david let's also talk about this this is a cool speaking of inflation in different class

moneyprinter.info this is not what you think you'd think this was like a jerome powell money printer go burme but what is this actually yeah so this is talking about the network issuance of currencies for cryptoeconomic networks and also as an uh inflation percentage right uh so what we are looking at are the different issuance rates of all the different crypto economic networks and then the dollar value of that issuance so clocking in at 14.19 inflation is ethereum which is issuing 54 million dollars per day uh next up is bitcoin at 1.79 inflation clocking in at 45 million dollars per day followed up by solana at 8.25 or excuse me 7.25 issuance rate at

18.5 million dollars per day you can check these numbers out for yourself they change on a daily basis at moneyprinter.info and overall it's just a nice way to see like how much is the actual monetary unit of each train inflating on a yearly basis and with that inflation how much actual daily issuance which is economic security does that chain actually achieve from that issuance so some nice metrics here yeah so i think one of the takeaways of this that is really nice is if you start comparing this with a uh another i guess chart that david mihal put together in crypto fees.info so interesting thing about what you said is if you think of a daily issuance that's just anything let's think of these uh blockchains as a

as a business for example for a company for example daily issuance is essentially their cost that's how much money they pay for as you said david economic security so every single day right now as denominated in eth of course but translate that to dollars ethereum pays 53 million dollars or so 54 million dollars in economic security bitcoin pays 45 million dollars in economic security solana pays 18 million dollars in economic security polka dot pays seven million dollars in economic security that's like a cost to the business what's interesting is if you start to contrast that with the revenue that they bring in remember what business are these blockchains in

well blockchains they sell blocks doctrines sell blocks that's the thing what amazon sells everything blockchain sell blocks okay that's the thing that they're selling uh so you can look at the revenue contrast and ether its revenue 36 million dollars in blocks sold that's one day fees that's how you measure it how much fees do this blockchain pull in 36 million dollars you look at bitcoin it's um about 500k 500 000 in blockchain sales if you look at something like polka dot um okay keep going down keep going there it is there it is four thousand six hundred dollars oh okay that's that's the third big oof of

the roll-up ryan four thousand six hundred dollars okay so what does that mean if you think about this as as a business all right so we've got daily expense for ether of 54 million dollars that's cost and then you got daily revenue of 33 million dollars so it's operating at a bit of a loss but if you think of it like this for every 100 spent on blockchain security for ethereum it's making 61 dollars in revenue okay spend 100 get 61 and sold product polka dot 100 spent less than one cent in revenue oof .06

big revenue .006 excuse me less than a cent in revenue uh you're going to be oofing the entire podcast aren't you uh bitcoin 100 spent one dollar in revenue and the reason i think these metrics are interesting is because i think this is a marker of maturity of health of sustainability of persistence during the bull run of the durability and strength of these blockchain sales how much people actually value their blocks and so i really like these charts that are put together and i think people should be looking at when we talk about fundamentals these are some of the fundamentals that we consistently come

back to how much is your blockchain spending for its product for its economic security how much revenue is it actually bringing in any other thoughts on that david yeah you said this is a sign of maturity and i i think that actually is a really great framing to put on this i actually do think it's appropriate for some of these younger blockchains to be issuing much a lot more because that's we also need distribution right distribution is a very key component of uh of uh blockchain security of how you get decentralization it's issuing all the currencies into all the different people people of the world is nice and issuance allows that to happen uh in these very very young phases of crypto economic networks we need more issuance than we need capture because these things are so

young we need a lot of people to enjoy the fruits of these systems uh and so how these things are actually getting issued and where they're going is also really really important i think it's fine i think it's very appropriate that salon is actually issuing quite a lot right now because it's only like 18 months old something something like like that the other half of the story is where is that money going uh and is that actually becoming distributed into the hands of the users into as many different people as possible that's what i would like to argue and i think bitcoiners would believe agree with me is that proof of work is really really useful for why i'm very happy that proof of work actually is where ethereum started for the first five years um and that what concerns me about uh solana and these other

delegated proof of stake chains is that the issuance is actually going into a very small set of individuals which are the validators which is why ryan and i are concerned about centralized validation because this uh it's all these the new issuance of these networks are being captured by fewer and fewer individuals uh where this is going really really matters uh there's also the con the topic of the the buyback the eip1559 we've seen like roughly a 70 30 eip1559 burn and a 30 tip rate going back to the validators and so this is 70 of the of the revenue for blockchain ethereum fees is getting uh uh distributed to each holders via the burn right that's what it does and it's

democratizing access to protocol income to not just people that are validating but any and everyone that holds east which is an open permissionless thing to do and that allows this income to be democratized off 70 of the income to be democratized off to a broader set of individuals and then 30 percent of that revenue gets added on to validator uh compensation in order to uh subsidize security pay for security and so that's really just the full story here and it does dovetail nicely with like the inflation conversation of the us dollar uh because the goals for to be long-term sustainable to have long-term equilibrium so that we can enjoy these things and then our children can also enjoy these things and also their children is that eventually all blockchains need to collect in fees more

than what they issue or else we get unsustainable inflation over the long term so these are things that we need to be thinking about today because these will be eventually systems that our children and our children's children inherit absolutely and so i i think not enough people are looking at charts like these and so if you're looking at fundamentals we encourage you definitely to uh to check this out and uh and make your own decisions you know evaluate chains this way as well uh david let's talk about this sotheby's they just netted a hundred million dollars in the nft sales pixel 21.

shovels you know what more than three quarters of the nft bit bitters were completely new to sotheby's as well so it's like a new demographic and over half of those were under 40. all right so sotheby's has got to be like just over the moon excited about the nft mark and its performance how much of their growth was attributed to nfts and this whole new demographic that probably wasn't going to our house auctions previously is now showing up i'm just reminded of the take that we had earlier this year where like a lot of the crypto people were skeptical about nfts but a lot of the rest of the world were they're just going to be like oh we we buy jpegs now okay sounds great that seems to be how it played out

totally i think it is guys we will be right back with the releases of the week and also the news and you can't miss the memes and the takes and everything else we do on the weekly rollup but before we do we want to thank the fantastic sponsors that made this episode possible matcha everyone's favorite decks aggregator has just launched an open beta for gasless trading so if you're trading more than 5 000 in common eath and wrapped bitcoin pairs then your gas fees on matcha are free and that's why you should be using matcha matcha routes your orders across all the various defy exchanges on ethereum polygon binance smartchain and gives you the best possible price without any trading fees or unnecessary slippage matcha has smart order routing that splits your orders

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private key management a breeze but the ledger ecosystem is much more than just a secure hardware wallet ledger is the combination of the ledger hardware wallet and the ledger live app and if you're used to seeing all of your crypto services and favorite defy apps all in one spot ledger live is where you want to be not only does ledger let you buy your crypto assets straight from the app but it also hooks into all of the default apps and services that you're used to using ledger live you can stake your ethan lido swap on dexes like paraswap or display your nfts with rainbow you can also use wallet connect inside of ledger live to connect to all the other defy apps that keep coming online defy never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all of the

defy apps that ledger live has and stay tuned as more apps come online and if you don't have a ledger hardware wallet what are you even waiting for go to ledger.com grab a ledger download ledger live and get all of your defy apps all in one space all right guys we are back with the releases of the week layer two optimism removing whitelist opening floodgates to developers what is happening i think that's happening today so it'll be live by the time people are listening to this what is it yeah this is optimism removing the whitelist allowing anyone to come build on the optimism layer two so congratulations to optimism for getting this far optimism really differentiates itself via evm equivalence as in if you have something

on the main chain you can press a button and then have it work on optimism layer two that's that is the whole and the whole point of what optimism is trying to do and overall i think that it's really going to give it really strong tailwinds just the ease of development that's why we've seen so many um guest forks ethereum client guest forks spin up and have a lot of outsize success buy an amp smart chain avalanche uh among them uh because it's really easy to port your ethereum thing from one evm chain to another evm chain optimism is making that even easier uh it's you don't get one-click deployment to like binding smart trainer avalanche you do have to tinker with it a little bit but still it's not a complete rework with optimism you can just boom deployed so congratulations to optimism i expect

a ton of activity to end up flooding there uh and i'm looking forward to see what happens in 2020 2022 for optimistic ethereum david look you're quoting this article david hoffman of crypto media outlet bank list described the removal of optimism's whitelist as a one-way decision this is one way right so they don't get to go back from this too don't go back that's what's so cool about this move as well look next year is going to be the year of layer twos 2022 we're calling it now big year for optimism big year for all of the layer twos out there uh we'll keep tracking what's going on there also something to keep tracking eth global they just rolled out their 2022 season six in real life in real life hackathons 10 on online hackathons and 15 summits what's youth global david what's uh why

are these events important yeah youth global just uh hosts all these cool different ethereum events all around the world because ethereum's a global network and so we need representation all across the world uh and so there are so many different ways to if you're a hacker developer or just enthusiast to take part in the ethereum ecosystem so check out the link in the show notes uh there is there's definitely something coming to a city or country near you uh they're all in probably every single continent except for antarctica uh and uh yeah so there's there's options for you to go do in real life stuff if you are not yet completely pilled about crypto go to one of these events because by the time you leave you absolutely will be absolutely uh no love for antarctica though huh okay not enough developers

okay balancer they just launched boosted pools what are boosted pools david yeah balancer they did this like v1 of this concept earlier with ave so basically all of the liquidity that gets deposited into balancer just waits for people to come and trade on it and that's when it gets the fees but like 80 percent of that liquidity in balance or pools are actually kind of stagnant it's really the remaining like 10 to 20 that really matters just to allow the trades to happen so what balancer is doing is they're allowing the stagnant uh liquidity in their pools to be deposited first they did it into avi that happened a number of months ago we did a show on that so check that out if you want to get up to speed but first they would just like lend out the de la cru liquidity into ave in their pool so not

only are they collecting trading fees from balancer but they're also collecting yield in ave they have now made this generalizable so now liquidity in balancer can now be put more than just ave but can be generally tapped into by any protocol and so this is balancer just really becoming uh capitally efficient and this is the theme of device capital efficiency capital efficiency capital efficiency that's what balancer is doing with their boosted yield pool so both getting trading fees and yield and d5 at the same time capital efficiency super fluid collateral speaking of super fluid there's actually a protocol called super fluid great yeah i know and it just worked out that time okay uh they're excited that they just announced on optimism and arbitrarium two layer twos of course

remind us what superfluit is if i'm recalling correctly it's this really neat you know payment type protocol uh payroll to you know pay contractors it's uh yeah tell us about it david it's streaming payments and so streaming yeah so if you if you are an employee of somewhere and you are getting x dollars per year well you could actually break that down into x cents per second if you really wanted to you could start in getting your income the moment you clock in and have that verifiable on chain uh and that is what super fluid is it's like it's like these plumbings these these the plumbing between different contracts and it's just streaming payments on a person it's like microtransactions do you remember when andreas

antonopoulos used to talk about this in like the earlier days of bitcoin being so excited about this use case like now it's here it's happening so it's actually even more granular than micro transactions it is literally fluid transactions there are no micro transactions implies like a bundle this is more like liquidity this is like more water flowing through a tube it's that's why they call it superfluid uh and so again per second per microsecond payments on l2 so like the use cases for this is infinite like like streaming we don't even know we don't know what all the use cases are right like streaming for bandwidth like maybe you're walking around some city and you need some internet and and you go buy some internet from someone with someone and you just stream them pennies per second stuff like this yeah really cool

automatically withdrawn from your you know your ether dress something like this yeah this is going to be a big primitive in the future i think um speaking of primitives that are big okay nfts are big this is an nft project called forgotten roon runes wizards these wizards that you can collect it's kind of a pfp type project now they have just rolled out an rpg game check this out it's a uh you know a graphic from the the game uh it looks like you're playing your wizards looks like an accident type of game just like you got little characters you got to fight some people you get some stuff so look at this an nft project now spinning up a game i wonder if this is the future for a ton of different nft

projects the direction they're going you can almost see the beginnings of the metaverse this way right it starts with a boring jpeg and then it becomes digital property and then it turns into a game and then before you know it it's immersive and virtual and you become your nft and you're in the metaverse this is how we evolve exactly right looking forward to playing yeah absolutely um let's talk about bit wise this is cool okay so launching a the bitwise blue chip nft index funds the world's first nft index fund so if you are uh perhaps a baby boomer and defy and nft scares you fear not bitwise has your back so if you want to get into the cool hip new nfts that all the kids are getting

with you can get into the bitwise blue chip nft index fund ryan i've actually checked out what's in this index fund it's it's pretty good man this is pretty good uh yeah so not just for baby boomers like it's for anyone if you're trying if you don't want to custody your own keys all right if you don't if you haven't been fully defy pilled and you're like scared of a lot of things you just want an index of these things but diversified blue chip nft portfolio yeah yeah in your retirement account which is kind of wild so what's in this thing yeah crypto punks weighted at 37 of the total fund followed by board apes at 29 percent uh mutant apes uh v friends auto glyphs fidenzas cyber kongs cool cats and me bits and chromie squiggles those are the 10 blue chip nfts that are in the bitwise nft fund i

think it's a pretty good list i think it's a pretty good list well you like it because crypto punks are at the top that's why you like it right i don't see any turtles here that's that's not an opinion that's just the market cap sir there are no turtles in this blue chip nft fund i refuse to believe this is the market oh my god that's not alpha guys none of this is financial advice all right i just have a turtle fetish uh aztec aztec privacy network on ethereum layer 2 super cool what is this technology look okay up to 100x gas savings fully private transactions by default all in a rollup private d5 is here i think they're on testnet have they they rolled

out their main net yet david uh no i do not i do not think they have rolled out i mean that no just address it's coming yeah so this is like this is a private privacy layer two uh and so think of it like tornado cache that same technology but on a layer two and and also better uh because tornado casts you have to wait for entropy to happen that's not true with aztec you get immediate privacy uh in theory i don't know if this is true at genesis but in theory you can send any asset uh any erc20 token maybe maybe nfts maybe that comes later so think of it like the tor layer two like the layer two where if you go in there you can do a bunch of private stuff and you can come out completely anonymously uh so a fantastic

privacy tool so you can stop doxxing yourself anytime you send anyone money from your wallets uh and uh really really really bullish the cool thing is you simultaneously get privacy and scale at the same time that's what simultaneously means uh uh you this is the same technology uh and so this is one of those things where the more people that use this thing the cheaper the transactions get uh and so with full adoption gas gas fees for privacy should come down really really low it's already better than the layer one so for a basic uniswap trade it's 130 000 gas clocking in at 54. dollars right now on aztec a uniswap trade is 17 600 gas 7.52 and i think that will not

stop there many of these l2s continue to have optimizations uh so really really bullish on that also uh disclaimer ryan and i are seed investors in this angel investors it's really cool like it's um it's zcash man except zcash has an app where it should be see cash as an app but with smart contract functionality in a roll-up that's what we're talking about here this is why we're so bullish on roll-ups guys new new ones coming about all the time paradigm with the lead investor in this is 17 million series a yeah well that kicks us over to raises then so um they also announced a raise this week almost simultaneously as well that was strategically sure 17 million series a paradigm uh to bring this this network to mainstream that is the the

headline here let's talk about a few other raises slingshot just raised 15 million in running in in funding it's like a defy trading app i believe they started on polygon really slick user experience i'm pretty bullish on uh what what you know slingshot is doing any other thoughts on this david yeah this is coming out of the same team as a defy pulse so there is a relationship there uh i've used it once it was great uh haven't used it since but that's because yeah i don't know life is busy life is busy i'm not much of a trader yeah you're holding instead of trading that's why i guess uh let's talk about anchorage so we just had anchorage on the podcast um at least one member of the anchorage team with uh with visas well they just raised 350 million dollars this is the group that purchased

visas crypto punk custom a ton of assets for big fintech companies as well this is a three billion dollar valuation billion with the b we're seeing a lot of these um you know a lot of unicorns in crypto level valuations yeah yeah b level valuations uh let's go to the next one euler finance they just launched a new d5 lending platform it's a crowded market but they have kind of a permissionless take similar to rari i believe and maybe the fuse protocol think of it sort of like that only has its own unique differences any thoughts on what euler's doing here yeah so where reflexer is kind of like maker dao but with uh control theory baked in as in some like equilibrium uh that equilibrium mechanics that remove

governance this is a very similar thing this is like compound or ave but with some equilibrium balancing mechanisms that removes governance so governance minimize protocols which is you know we forget to talk about this a lot but kind of the whole point of this whole thing is to actually remove governance governance is like kind of a means to an end the whole point is to remove governance uh so cool bullish also disclaimer i mean ryan i see angel investors in this one too let's talk about li-fi plug-and-play interoperability this is an aggregator so i think of this as kind of the uh the one inch uh for for bridges basically so if you want to do hop connect you're trying to get liquidity from one bridge to another you just use li-fi it pulls it all together and aggregates it not like not only that

but you can also exchange at the same time so it's a liquidity aggregator between layer twos but it's also a d layer two dex aggregator so it's like oh i have ether on arbor trump but i want usdc on on optimism it will both get you from layer two to layer two and from asset to asset simultaneously so i mean just very obvious use case i think they just announced uh their raise as well um let's talk about nansen nansen fresh funding 750 million dollar valuation pretty close to that b word uh not quite there but an analytics platform crypto i've used danson before i think it's you know fantastic doing analytics nance and there's a few others that they think very highly of

any thoughts on this david uh congratulations well deserved this is gonna be like something along the lines of like the bloomberg terminal for for dfi ramp time ramp is a fiat on-ramp and they're doing a lot with layer twos which we are super bullish on because it feels like exchanges have taken too long i was hoping for a coinbase uh integration layer two platforms by christmas but it's getting a little late man it's it's not happening so get the show on the road coinbase gemini kraken all you guys got to get on it but ramp network they just closed a 52 million dollar raise i'm not sure what valuation that is um yeah 300 million 300 million valuation 300 million and that is to provide fiat all over fiat on ramps and

off ramps all over crypto so go direct from your bank account directly to optimism directly to arbitram directly to starknet directly to zk sync that's what this enables so good to see that they are funded as well uh now you're a dig nydig announcing a one billion dollar funding round valuing the company seven billion dollars uh so nydic is is both a fund and also i think an otc desk is overall just like crypto bitcoin focus infrastructure but they get into other things as well uh raising a massive round at one billion dollars so congratulations to nydig you take this last one david yeah circles uscc stablecoin is now on the avalanche blockchain so sufficient adoption on avalanche means that uscc is going there

so there's now i didn't even realize that uscc wasn't actually there yet uh so congrats to avalanche for getting uscc usdc going everywhere going in all chains going on all exchanges inflating everywhere as well yeah that's not their fault to be fair that's true jobs time all right here we go you talk you heard our inflation talk earlier you heard about wages not increasing you know two to three percent per year going up in crypto though i think wages will continue to rise because demand is there crypto needs people needs you get a job in crypto that's the message coming to you from bankless every single week i'm going to read off the jobs you ready david yep i'm ready to dance here we go all right all right founding full stack engineer at utopia labs senior ios

engineer smart d5 senior back-end engineer smart d5 senior software engineer popcorn community ecosystem lead d y d x got to check that out crypto research analyst you got to be an nft specialist a smart contracts platform and web3 specialist and a governance specialist those are three positions from bitwise we're talking about the nft index earlier i wonder if that nft specialist would be involved in that ahead of head of grove dex guru technical lee draftly head of ethereum research immutable head of tokens immutable community manager dexable lead engineer hat stop finance community manager e agronom those are some of the jobs david exhausted look man i can go faster i can go slow depends uh

i went faster than your birthday okay those are the jobs guys you wanna get clued into the jobs go check out the bankless jobs for it at bankless.palette.xyz make sure you subscribe you get these in your inbox we'll also remind you on a weekly basis david you want to get some news items yeah we should do that there are some cool news items again this is a really awesome week all of them are awesome we just like non-stop good news okay here here's a big one the first publicly traded company we talked to these guys ether capital they're based in canada first publicly traded company to go big on staking eath no wonder they have a big balance sheet but 50 million dollars worth of eath are staking publicly traded company staking eth on their

balance sheet i think this is the first of many ether capital has been the first of many in uh in lots of ways and i wonder how long david until we see some of the fortune 500 companies with eth on their balance sheets actually staking it in what we call the internet bond any thoughts on this ether capital is basically like my micro strategy their their one job is to buy ether put it on the balance sheet their canadian company the only difference between them in macro strategy is that they don't have this ancillary company that makes money in completely different ways than what the new purpose is which is to buy buy bitcoin so so it's a public company put an ether staked ether on the balance sheet also taking part in the theorem staking so pretty cool yeah it's very cool uh let's talk about

this too polygon they just acquired a zk roll up we were talking about this in the intro called amir protocol 400 million dollar acquisition this is polygon number yeah this is look man this is polygon going all in on rollups we just had the polygon founders on the podcast a couple of weeks ago if you didn't catch that go listen to that episode i think it's really key to understand both polygon and where rollups are going and what they think of this entire space they're calling this product polygon zero and what's interesting about the polygon strategy is they have a lot of these chains all right they're kind of a swiss army knife for chains this is a graphic that they put out that i kind of like their thesis is ethereum is the settlement layer kind of in the center uh it is the chain of chains if you will

and then polygon is going to provide lots of different chain solutions for different use cases so polygon nightfall more focused on privacy and enterprises polygon hermes it's kind of a payments type um zk roll up polygon proof of stake of course that's the first one that's the one that you're familiar with yeah that's the less less secure but also um you know very scalable chain higher throughput chain polygon avail there yeah yeah so look that's their strategy sticking to it and uh they just made another big move in zk roll up space is pretty cool look only a few of these need to work out for it to be very very bullish uh and so like yeah again if you

think that polygon is just the proof of stake chain you're missing the force for the trees yeah absolutely and they said they were coming here and now they have in a big way uh let's talk about this this is a a uniswap proposal to get yeah what is this proposal about david yeah we've been following this for the last three rollups uh this will be i think the last one because there are 66 million four votes from uni token holders and only half a million against votes to get unit swap spun up and deployed on the polygon proof of stake chain so this sounds like it's definitely going to go through and we will shortly see uniswap v3 deployed on the polygon proof of stake change so cool took a while but also finally great great fantastic love it community wants

a big show of support there um let's talk about ledger so that is the hardware wallet you know and love actually last week they just unveiled a plan to issue a crypto debit card we had the vp of product from ledger on our youtube earlier this week to talk a little bit about that but a few highlights are an interest free 30-day debit card so you actually get credit for 30 days on your debit card uh and and pay that way you can convert to crypto at the point of sale so basically you can sort of charge up your ledger debit card from your ledger and pay for your coffee what you know whatever you're buying on on a visa as well you can even have salary sent to your

account so like salary sent your account and it converts it to crypto and drops it off on in your ledger wallet some cool stuff there i'm not exactly sure how this is going to evolve but i know when it comes out i'm going to check it out and see what's up the other thing you can do is you can put like ether or bitcoin in your in your account and then spend dollars backed by that that bitcoin and that ether so you're not spending you're not spending the bitcoin in ether because don't do that those things are going up while the dollar is going down but you can use those things as collateral to spend dollars which is an interesting use case uh do not get over your ski tips just because you have the bitcoin underneath here doesn't mean you get to spend freely dollars it's really cool

but be careful is david's message right let's talk about this um yeah this is from aya mayaguchi who is tweeting out a very fantastic announcement and ayah says we strongly believe that a diverse set of clients is essential to ethereum's health and decentralization to ensure the client teams had a long-term incentive to maintain a network the ethereum foundation has launched the client incentive program so what they are doing what the ef is doing is they are getting e giving each of the nine ethereum client teams 144 validators that is uh total not each uh that is 4608 ether at roughly 17.5 million dollars each and that is being given out to the client teams as

one part of a reward as all of for all of their hard work hard work but also as long-term incentives to keep maintaining those clients the clients the individual clients are not owned by anyone other than themselves their one job is to make ethereum clients work and work better over time that's one of the reasons why actually ethereum has actually been able to scale i think how much higher our gas are our block sizes when ethereum first launches something like 5 to 10 times larger that is because of clients so ethereum optimizations yeah client optimization's made has made a theorem five to ten times scale more scalable since it's day one inception uh and that's because of the client teams and now with giving them a ton of ether a bunch of validators they both have the actual capital but then also the staking interest over time so long-term

alignment to keep these clients innovating and moving forward and maintaining the health and security of ethereum in a decentralized fashion so that's really really cool it's cool it unlocks over time this is a great performance bonus like no one deserves it more than the protocol development team the client teams that are providing the public good that we call ethereum so i'm really glad to see the ef uh pull that off for all of these client teams this is great what's this what's happening with ave david yeah this is kind of a take kind of news a little bit of speculation but this is thani from ave saying after testing ave v3 i'm in fully in love with layer twos l2s uh calling it now ave v3 is going to be l2 only it will no not be of a v3 on the main chain so is that your personal

opinion or do you actually is that i'm i'm going to put a lot i would put a lot of my money on that bet yeah i don't know if that's 100 confirmed but uh yeah i think i think regardless even if reaven is not confirmed ave v3 will be used almost primarily on layer twos i'm anxious to hear more about av3 i wonder what they're adding on to the protocol they're also pursuing a social um social network that i want to hear more about too i think that's unrelated yeah it's unrelated but it's all ave let's switch to uh nft stuff this is this is big news uh nike apparel he's entering the metaverse okay big acquisition of rtfkt studios i'm actually not familiar with people need to rethink their naming i don't know how to say it but uh this

is a metaverse apparel type of company nike has just purchased them so welcome to web3 nike is that what we're saying that's exactly right mike nike making a very intentional move into the metaverse digital apparel digital goods to go along with your physical apparel and your physical goods uh buying a whole entire nft studio so not just like partnering with one straight up buying one so this is like going to be like the the nike nft metaverse like churn factory so i expect to see a lot of nike digital merch out there big moves digital fashion digital merch uh it's happening nike moving first and um you know others will follow behind adidas is right there with him they're they're also doing similar stuff yeah that's true yeah we're gonna see them all it's gonna be crowded space it's

gonna be fun space to watch um let's talk about marvel and disney their ip is moving to ethereum nft is unimutable talk about this story david yeah so i i think the story here is that uh marvel and disney have their ip licensed towards this vive official nft platform kind of kind of just like uh what we were talking about with rtfkt it's just a an ip system for just putting digital merch into the metaverse uh and vave official is now being uh migrated over to immutable via the e-commie platform there's a lot of moving parts here basically the tl dr is marvel and disney ip is being issued on the immutable layer two uh so a huge win for immutable

like disney ip like is there any more valuable ip than disney uh and marvel's marvel star wars all the mickey mouse stuff basically every kid's movie in existence harry potter i i think no no harry potter's universal okay all right well yeah never mind uh i mean it probably won't be long so all of that ip becoming issued on immutable uh so again a huge win for immutable and also cool uh disney now in the metaverse too it's really cool that medieval's business development is just like just crushing and killing it it's doing stuff that protocol can do right it's like you know good job here and uh yeah so speaking of how cheap is it to mint nfts on immutable david uh apparently

it's free ryan uh through this new app called mintable so mintable is now live on immutable and so all you got to do is set up account deposit some each and you get they say infinite transactions with no fees so free nft minting on the immutable layer 2. this is something that a layer 2 can do that layer one could never do which is free and infinite transactions and then our good friend paulie and i had a really good take about this like free and infinite that sounds too good to be true it is slight hyperbole but that's because mintable is actually just fronting the cost for their users and that's just because the the fees are so low that mintable the platform is like yo we'll just eat it like it's so low that we'll just do it for the users

themselves so paulie and i says infinite transactions with no fees slight hyperbole there but the point is if you want to mint and trade low value nfts and trade off security immutable x is the premier venue can't beat literally zero gas fees it's still early days of course much more to come from immutable x again immutable x just executing in the best of ways just nice job guys are you a person that hates gas fees but loves decentralization right like that's what this is solving for hopefully i hate gas fees hopefully i hate gas fees exactly but like decentralization is an important public good and worth preserving and why can't we have both i think for cryptography we can with cryptography with the power of cryptography we can have whatever we want

get a little nerdy on it but uh look justin drake told us the beginning of the year that uh crypto moon math episode go check that out if you're interested in sort of the theory of cryptography and why it scales blockchains why that is the that is the big performance improvement right everything else is a hack when we make big cryptography leaps forward that's when we improve these systems these computers that we call blockchains and that's what's happening here with these rollups coming up next a rare crypto punk has sold at a record 10.2 million dollars this is the highest crypto punk sale ever 2 500 each yeah it's a it's the ape with the blue bandanna crypto punk four one five six purchased for over two thousand five hundred each new records for crypto punks are crypto punk's still going up

or is it like kind of i know everything in nfts have kind of died down a little bit but like crypto punks being blue chip are they still uh they've taken a little bit of a hit lately they're i think they peeked out 144 eth floor they're currently clocking in oof oof that's the fourth big oof of the show ryan the new floor is 61 eth uh there's a little bit of uh drama and flood in the crypto point worlds having to do with like licensing and larva labs and stuff like that creative commons licensing and all that stuff like that another podcast episode well i'm waiting until it hits 500 or so david and then i'm all in i might buy one hold your breath man hold your breath uh someday someday uh i get turtles though whatever you're fine how many turtles do you have

mediterranean all right is it turtles i'm stacked i'm shell stacked okay i don't have any of these though dr seuss characters they're getting the nft treat treatment uh susables suicides are nfts well cute little green eggs and ham guy sam i am cat in the hat uh thing one thing two all your favorites coming to the nft world gotta love it how can how do people hate nfts i just don't know pop culture is so fun look if you hate nfts just don't buy them that's all you have to do just ignore them and also shut up yeah but you can't resist you know you'll be back you know you just wait until your favorite whatever comes to the end then you'll be like oh those weren't cool but wait until it's your turn yeah everyone think it's their turn it's gonna hit you okay bitcoin stuff

two bitcoin core developers they stepped down last week why are bitcoin core developers stepping down david according to this guy uh mike in space uh the subtext seems to be lack of funding luke was uh talking about lack of funding this week trillion dollar asset no funding this has always been a problem plagued bitcoin it is one massive public goods that doesn't have a way of providing funding r d effort ethereum also has this problem too like where we have like billions of dollars per year being spent on security and just a handful of millions of dollars being spent on r d in public goods but it's a big difference from zero to a handful of millions of dollars in stark contrast to the ef uh paying the client teams a bunch of ether for long-term sustainable

development bitcoin doesn't have a way to pay for its own like maintenance which is unfortunate it's unfortunate but i also respect that they haven't done anything silly like inject a block rewards yeah a block reward dev fund to siphon off to some third-party organization like block stream in order to pay for this stuff like uh love that i'm sure yeah that would be not a good idea of course so i i do respect that there's got to be other ways to pay for public goods funding i think square is doing some of this hopefully this gets resolved for bitcoin um ninety percent of all bitcoin have now been mined though across that today i learned 90 percent there's only ten percent of bitcoins left to be mined yeah right fixed supply that remaining 10 is gonna take like a hundred years

[Laughter] and mike michael saylor would capture it all no dollar cost average news from michael saylor this week i'm sure he's doing something but it's taking off for the holidays he'll be back in the new year uh all right let's talk about some traditional finance stuff regulation yeah this is going to be fun i like this all right so one of our big predictions the long-standing bankless predictions has been the protocol sync thesis okay this is the idea yeah the d5 mullet plus protocol sync thesis they're kind of they're kind of related and the basic idea is that the most credibly neutral decentralized protocols whether that's a chain like ethereum or whether that's a um credibly neutral automated market maker like uniswap or a protocol like

compound they're going to sink to the bottom and other things will be built on top of those things because why because they're maximally decentralized they're credibly neutral everyone can tap into it they're they're totally permissionless and so we had a long-standing prediction that at some point in time all of the exchanges all of the crypto banks will start tapping into these d5 protocols for various things so for instance they'll start earning interest providing access for their users to earn interest on something like compound well it happened it's happening the thing is literally the example that we've used yeah it's literally the example so we said someday i think we said this a couple years ago someday coinbase will use compound under the covers to provide

a lending and borrowing platform interest rates that sort of thing and it's happening starting today it's happening uh so feels good feels good man when that happens i think it's validation of the thesis and only more to come right this is coinbase but soon it's going to be every single bank in the world where you get your savings rate in your bank account it's going to be in protocols protocolized form but here's the thing absolute garbage that we can't get this in the u.s and not coinbase's fault all right this is rolled out to 70 countries already rolled out completely to 70 countries it is not in the us the services available in the uk germany spain not in the u.s and i think that is raw

nonsense not coincidence i just appreciate being protected so hard i just like you know if they do it the sec has threatened to file a lawsuit and their coinbase earned product so americans can't have it so seven percent interest rates my bank account gives me a 0.025 percent uh rate in my savings account calling that a savings account is an absolute joke we come out with some innovation called defy where you can get a reasonably like a really safe loan and you're borrowing interest rate from something like compounds it's very tried tested protocol it feels very safe not accessible if you're an american through coinbase of course you can go

directly to the protocol yourself but not through coinbase and that's where 36 40 40 million uh americans have accounts so like what are you doing u.s you want us when you want to help protect consumers from inflation give them access to d5 don't block it what's the purpose who are they protecting they don't want to give protection from inflation they need people to own the dollars this is the same type of capital controls maneuver that we see from argentina it's like no you no you can't escape no no like we need you guys to keep on holding dollars because we need you guys to like not have inflation go out of control uh and so like no like you don't don't have your five percent interest rates like keep that money in your bank and continue having your point zero five

percent like that will protect you like that yeah yeah it's it's it's the worst form of protection i can think of and it's only hurting american citizens so this is the reason why we say you have to take control of your own digital sovereignty and of you you know you have to go bankless okay because i think thank god for defy actually giving the individuals to go directly to the protocols like things the ability to opt out all we want is the ability to opt out of the crappy system that is uh they're they're trying to um imprison us in uh let's move on let's talk about another system of imprisonment and that's kind of web 2 the web 2 world so here's a story david if somebody who

lost their instagram handle metaverse what's happening here yeah so somebody had the at metaverse instagram handle and then facebook pivoted to meta making that metaverse instagram handle way more valuable uh and then a couple weeks after the pivot it got revoked from the owner's hands uh unexplained uh they said it was uh impersonating somebody else the account was impersonating someone and so they got the ownership of that account got joined from the owner eventually it was given back to the owner after a bunch of uproar from from her the owner and also everyone else on the internet uh because of the exact reasons why you would expect like oh

this is like who are you facebook to just revoke ownership but this is a very big reminder do you invest time into your instagram account do you invest time into your twitter account do you know that you actually don't own those assets that is not web 3 that is web 2. and in web3 if twitter was a web3 platform if instagram was a web3 platform you would actually have complete property rights and assurances over your ownership of your handles and this is exactly what we are trying to get away from facebook was like oh metaverse handle that we have that well it's ours now uh thanks and then the people are like whoa whoa whoa whoa whoa and thankfully uh at the end of the day the whole entire world resides on people uh and so because the people push back this individual has her metaverse

instagram account back in her hands only has it back though by the good graces of facebook after this public pushback as you said so it was interesting when uh when the pivot happened and facebook turned to metaverse uh to the name meta someone texted someone messaged her and said you are now a millionaire but another person warned facebook isn't gonna just buy your account they're just gonna take it it's all it's theirs why would they buy it it's theirs and then early the next morning she tried to log on to instagram she got a message saying your account has been blocked for pretending to be someone else big number five ryan yes that's definitely a big oof number five uh and yeah i mean this just shows i guess the you know the take that that

you were saying is i don't own my account my twitter account my facebook account gmail account youtube twitch neither do you you don't own any of this it's company property we live our digital lives toiling away on rented property for our feudal lords completely broken model web 3 fixes this web 3 fixes this yes property rights that's what we've been talking about they get louder for the people in the back ryan web 3 fixes this we have property rights that people should own their own property rights um elizabeth warren isn't having it though david should we just play a clip yep okay and play clip listen up d5 is the most dangerous part of the crypto world this is where the

regulation is effectively absent and no surprise it's where the scammers and the cheats and the swindlers mix among part-time investors and first-time crypto traders should in d5 someone can't even tell if they're dealing with a terrorist wow what do you think of that david big roof number six ryan well said in d5 someone can't even tell if you're a terrorist straight to the terrorist thing thanks for no time at all it's like oh yeah terrorism god damn shady scammy the worst part of crypto the shadiest parts of crypto defy that's what she called it spoken like somebody that's

never used it elizabeth this is the way out so i i don't understand so elizabeth warren is somebody who speaks has spoken up against the banks so many times it's kind of a populist anti-bank message and then when faced with crypto when faced with defy the transparent open financial system that actually provides a way out no that's shady that's she wants those services to be provided by the government by the state it's this very paternalistic very infantilizing take it's interesting get your services from the government we know what's best look it's setting us back though okay she

says d5 is one of the shadiest parts of the crypto world not banks not wall street not our seven percent inflation it's d5 that's the problem it's sad man i don't know where we went wrong that's that's worth another oof david that's not just one oh i said it at the beginning this one this one gets two double oops double oofs for saturn yeah alexis ohanian co-founder of reddit says transparency is the hallmark of web3 it's all open source it's an open database it's not shady rather it's an antidote to the cigar smoked filled rooms where centralized finance historically gets done people trust code more than people because it always does what it says it'll do elizabeth get a meta mask girl like we'll send you some ethan i'm on bank list come on bank list let's talk about it we'll help you out

we genuinely want we generally think this is part of the solution to some of the problems that that you're seeing and uh we wish you could see that too yeah i think you will in time i hope so hopefully alexis ohanian he's coming on the podcast though david this will be a good topic for discussion in january uh in other news we've got some we got some badass regulators fighting the fight some bad regulators and then we've got some bad ass regulators who's this one this is hester purse who uh tweets out the latest regulatory agenda shows that the sec will be busy in the upcoming months but it won't be working on the right things so the hester purse put out the statement in combination with another uh chair commissioner rosman basically saying that the sec has a mandate and what they are doing is completely adjacent to that

mandate there's not actually following through on trying to provide fair uh and fair and orderly markets and capital formation there's she is just critiquing the gensler agenda basically saying uh we're supposed to do our jobs and the things that we're doing are not our jobs right now like a wtf uh sec agenda hester purse thank you so much for being so bold to put this out there this is how democracy works this is this is how this thing goes down so thank you for pushing forward this this conversation in such a public way this is why we have multiple commissioners this is exactly the way it's supposed to work so that we can push back and there can't be unilateral control of a given regulator's agenda and i'm just so glad that it feels like some regulators like

hester purse are fighting for the people fighting for the intent for first principles of why the sec exists in the first place thank you first principles go back to first principles and evaluate new technologies and new market approaches based on those first principles um we need more like hester person government that's for sure uh david what's happening in russia uh bank of russia to ban mutual funds from investing in bitcoin um i guess a little little oof just because it's russia so like i mean they're kind of kind of kind of on the way out let's just say once again you don't ban bitcoin you ban your citizens from accessing bitcoin uh so not gonna really work out for russia in the long term yeah let's talk about the imf yeah do they have a very different policy yeah

so imf leaders at imf advocates are calling for a coordinated crypto policy amongst the world's governments basically saying uh hey we need to like team up and fight this crypto thing before this crypto thing comes and eats us because crypto is already a globally coordinated set of participants we are already global that's the nice thing about being internet networks and so the imf saying like hey other governments of the world if we don't team up to take down this crypto thing uh it's going to come eat our lunches um the last time global governments tried to coordinate uh against a problem it was climate change and that hasn't gone out too well like global coordination kind of a kind of a hard thing for nation states to do that's the whole point of crypto is we are actually a more able to out coordinate them by the

nature of our protocols uh so big oof coming for the imf stay tuned you know what's hilarious though david is they're right if they do want to stop this they have to globally coordinate the thing is they're never going to they can't do it we if we're not going to coordinate we'd have larger more scaled nation states than how we have right now and they have insurgents in every single country that the imf represents and those are crypto people who are excited about this technology and want it i mean it's basically what we are like good luck it's gonna be a civil war to them no no they're the insurgents they're the establishment let's talk about katie han okay this is uh a16z vc looks like she is departing a16z that's

the fun that chris dixon uh co-leads as well to start her own fund on crypto and web 3. david it feels like we got to get katie han on the podcast at some point to tell us a bit about that maybe we'll schedule that sometime what's this ftxus signs nft deal with the golden state warriors basketball team as a part of this deal the warriors will create and launch nfts and ftx us will be the main hub for the team's digital asset launches so big win for ftx congrats uh ftx doing celebrity doing sports endorsements so it's coinbase ftx and coinbase going blow for blow uh kevin durant kevin durant yeah kevin durant now has a partnership with coinbase basically doing the same thing that fdx is doing with the golden state

warriors but now with kevin durant uh so yeah congrats to coinbase celebrities in crypto wow 2021 that's been a year for that too uh guys we will be right back with the fresh takes of the week and of course the meme of the week you can't miss but before we do we want to thank the sponsors that made this episode possible arbitram is an ethereum scaling solution that's going to completely change how we use defy and nfts and now it's live and has over a hundred projects deployed gas fees on ethereum l1 suck too many people want to use ethereum and it doesn't have enough capacity for all of us and that's why teams like arbitrary have been hard at work developing layer two solutions that makes transactions on ethereum cheap and instant arbitrary increases ethereum's throughput by orders of magnitude at a fraction of the cost of

what we are used to paying when interacting with arbitrary you can get the performance of the centralized exchange while tapping into ethereum's level of security and decentralization this is why people are calling this ethereum's broadband moment where we get to add performance onto decentralization and security if you're a developer and you want to save on gas costs and overall make a better user experience go to developers.offchainlabs.com to get started building on arbitrom and if you're a user keep an eye out for your favorite defy apps being built aren't arbitrary many d5 applications on the ethereum l1 are migrating over to layer twos like arbitrary and some are even skipping over the layer ones entirely and deploying directly on layer two there's so many apps coming online to arbitrarily so go to bridge.arbitrum.io now and start

bridging over your eth or any of the tokens listed and start having the defy or nfc experience that you've always wanted alchemix is one of the coolest new defy apps on the scene it introduces self-paying loans allowing you to spend and save at the same time deposit the die stablecoin into the alchemics vault in order to get an advance on the interest it generates borrow up to 50 of the total amount of your deposited die in the form of al usd stablecoin here's the craziest part the loan pays itself back and you cannot be liquidated unlock your assets potential in the ultimate defy savings account and brand new to alcomix is the eth fault where you can deposit eth into the

application borrow al eth against your deposits while having your advance gradually paid back over time v2 is rapidly approaching which will allow for even more collateral types plus a variety of yield strategies to choose from harness the power of alchemix at alchemix.fi that's alch m i x dot f i follow alchemix on twitter at alcomixfi and join the discord to keep up to date with alchemix v2 and to get involved in governance all right guys we are back with the fresh takes of the week the first is this poeps i've got a few po-ops i have many po-aps all sorts of different things i've done in the past the take here is that they're memory tokens what's the tweet and what's the take

here this is a 15 tweet tweet thread which we will not be reading out but basically the uh this individual i don't know how to read out her twitter handle says it was always stated that poeps is an ecosystem for the preservation of memories uh and i think kind of just really like about what what that take is like poeps these little badges that you collect again here are all my poe apps i could name the every single time that i've got tell me about a few of them yeah tell me about your poep stamp collection sir yeah so here's the the bankless ultrasound party the the ultrasound party that i went to in in new york uh here oh i love this one here is uh east denver 2020 uh i got plenty of memories there uh here is uh mariano conte's birthday party in argentina

which i didn't actually go to but i was actually able to get that nft um and there's a bunch there's east paris there's maniverso my parents have like a motor home and they go from like state park to state park all around the u.s and they go and they collect stamps and all of the state parks in their stamp book and my mom loves showing him whenever i meet with with like my parents they're always like how here's you want to see where we've been let me tell you about it and then they pull up the stamp the badge that and if the analog nft and they tell me about their memory and they get super nostalgic and they look fondly on it yeah like yeah especially for people these days that like i don't know about you ryan but i've outsourced as much of my like

brain's computational power to all my electric devices that are around me like having those memories yeah exactly yeah having these little memory triggers are really nice co-ops are ecosystems uh it's an ecosystem for the preservation of memories nice take that's cool all right let's talk about this this is my take go forward yeah okay so i now use the term rugged whenever something mildly unexpected happens in real life like oh rug rubbed again right and i don't know why it's just kind of fun and i was thinking about this but um crypto culture has now invaded the way i talk especially the last 18 months without me even knowing it and so i tweeted this out i was like what crypto term do you now use in real life and there were tons

of these uh great great answers uh daniel said he started to use front running and bullish a lot like something good happens he's just like bullish uh someone else said um rugged and aped are you seeing that getting aped yeah yeah or april i love the floor the the floor whenever i can find a way to use like the floor okay how would you use the floor uh so when i oh i mean this is about crypto so maybe this doesn't really count but like uh when i bought uh all 10 of nate moeller's nfts i swear i like swept the floor right which is actually the right way to use it except for the fact that like it's really more for a profile picture nfts more than is like just one of ones but yeah it's just like oh yeah when i go in and buy a bunch of

stuff like oh yeah bought a bunch of like chocolate bars at the grocery store swept the floor on chocolate chocolate bars i don't know yeah it's hilarious okay so like but i feel like only um crypto people really understand these these things i think they're all true it's being exported yeah yeah like rugged is such a great one so it's like wrecked uh aping into pizza i ape into things like this it's great so what's just fun what's fun is i feel like um crypto culture is is really starting to like um invade real life in these fun ways maybe it's happening with with us crypto geeks first but like i think mainstream is catching on gonna start adopting all of these terms and i don't know it's just fun to see anthropologically the way uh language evolves right and i tweeted

this out and i tagged josh rosenthal from our crypto renaissance episode and of course he put together like this 15 uh tweet thread about how this is exactly what happened in the reformation as well in the renaissance and all this new language chains uh so this has happened before this is just what humans do yeah we are in a phase change absolutely uh and also just our terminology in theory like the reason why it gets adopted is because it's better in the same way that memes work memes work as like a packet a bundle of information like rugged communicates a lot right it communicates so useful in the 2020s so many so many institutions are trying to rug us you use these crypto terms in real in

everyday life guys uh let's talk about this by the way language is really cool because it's such a decentralized technology right bottom up every node has to accept it i love the parallels between language and what we're doing in crypto here's another take on decentralization you want to read it out yeah this is uh coming from tasha extreme decentralization is a solution looking for a problem with a very small market demand in the real world most btc and eth maxies have yet to wake up to that and this tweet got to over 2 000 likes ryan sad big number seven no dude we're at nine now oh my god whatever why is this a big oof though okay this is it okay what's your take ethereum's decentralization ethereum is

decentralized attacking ethereum's really really hard that means anything that's on ethereum taps into that security uniswap protected by ethereum compound is protected by ethereum crypto punks four dates protected by ethereum name your thing that's on ethereum protected by ethereum so it's not like we need to have the minimum level of decentralization just to protect like the most important application on there we need to have as much decentralization as possible because all things that exist on ethereum are protected equally by this level of decentralization it's not about how can we reduce the level of decentralization down to the absolute minimum it's how can we export as much security and decentralization so that everything that ever comes to be on

ethereum from now into the future has that level of security and decentralization and here is why decentralization is important so when you use the term decentralization people's eyes glaze over right they don't know why it's important but when you use the term anti-corruption everyone hates corruption okay if if you said that hey we should build our society on the most incredible systems possible with the best anti-corruption technology right i know i always go back to the constitution the idea of separation of powers but like that's a great example okay rather than kings and tyrants we do a constitution with a democratic process and separation of powers across three branches of

government it is decentralization is anti-corruption technology make sure the states have a say make sure the federal government has a say we make sure it's all as balanced as possible we have a judicial branch an executive branch a congressional branch right legislative branch those are the three branches of government okay we would build we need to build our systems and our societal governance frameworks on the most decentralized that decentralized things possible we don't want to build a government on facebook shareholder vote where mark zuckerberg has over 50 50 of the vote and he can revoke your instagram account alright so why does the centralization matter it's so our systems and the trust the fabric

of our society doesn't get corrupted that's why it matters and it matters for lots of use cases like money is a big use case finance banking property rights these are the things that crypto is protecting and if you start screwing with that then what the hell is the point of the entire industry that we're in right that's what i would throw back and the idea is that if like it's great if we're just decentralized enough for like the value that we have now but the idea is that very much more valuable things very much more valuable things will be will come to exist on these chains in the future so you need to optimize for that level of security because you we have ambitions to like 100x the value of the entire ecosystem therefore we need

to have a container that can fit that void because if we only have some decentralization you can't actually 100x the value because then it becomes corruptable you need to have as as strong and decentralized as a foundation as possible as a container for future value because if it's not that today it won't actually come do you know what i think though is the trump card answer to this whole critique in general the trump card answer is because we don't have to sacrifice decentralization that's so true also true right like it's just because you're impatient that's the reason you're sacrificing decentralization all right we have this magic that was given to humanity called cryptography now we have the ability to roll it out at scale using zk proof

technology using optimistic fraud proof technology like roll-ups are a fantastic example of this and this is not about being like an eth-centric view of the world right other other protocols can do this too and are doing this so near is taking this approach tezos is taking this approach all right but the reason the reason not to abandon decentralization is because we don't have to like just be a little patient it's coming it's happening so anyway look we feel passionately about that i think i guess i'm thinking long term thinking what about this this is somewhat related yeah so this is uh sue's talking about the concept of anti-network effects and this is how he explained like the rise of avalanche and solana saying like oh

yeah ethereum was so big and so successful that it creates this incentive to spin up like versions of ethereum that are valued at the that are on the floor right like brand new very fresh low valuations because of the thing was so grand and so big the incentive to start a new one to try and get some of that upside is really really strong this is exactly what moloch is moloch is rearing its ugly head in this statement of just like anti-network effects the idea that like a dominant chain creating the incentive to start a fresh l1 so people can get in on the ground floor of something is a human coordination failure and i'm saying that's also a failure of the ethereum ecosystem like we didn't actually build out this layer two ecosystem as fast as we could have to incentivize everyone to

come onto the same network which in my mind is the whole goal of of this whole progress of humanity we like to get everyone on the same page that's coordination protocols uh and so moloch is the this concept of human coordination failure if you have 10 fishermen around a lake and they all agree like hey if we all fish this lake to a hundred percent of our capacity like the the lake will go bone dry so we all will diminish our fishing of the lake to 70 percent therefore sustainable for the rest of time and then all of them agree to that except for one person is like well i'm just going to let everyone else agree to that and then i'm going to fish the link at 100 and then somebody watches that person do that like well they're not following the rules so why should i so then the second

person starts fishing at 100 and then that continues down the line until the fish that the lake is is completely uh fish dry this is fishless fishless yeah this is this is this the problem of human coordination failure we've seen this throughout the end of time and what sue's talking about with anti-network effects is the same thing and so i follow up this tweet saying new layer twos are the new layer ones and these layer twos can collectively coordinate in ways that new layer ones cannot via strong cryptographic assurances that's roll-ups and also cryptographic bridges between these roll-ups and also new wealth will be created on the new layer twos that will satisfy the desires of new ecosystem entrance exactly answering to the same exact desire that made and incentivizes so much adoption on solana and avalanche

which they won they deserved all of that the recent adoption that they've got in the last like six months or so but i'm saying the pendulum will swing once again as it always does the wheel will turn i think to fully get that take so people should uh listen to the uncommon core podcast with suzu this is kind of a tweet and response i think to some of the things he said in that in that podcast so that could be some homework for you as well the other thing i think you're saying is like 2022 bullish layer two that's what's going to happen uh we're excited to get there okay here's the final take of the week optimus shall inherit the earth and david this is your pin tweet it sounds like this is an important one to you why why do you think that do you really think optimus

will inherit the earth yeah i think the the arc of human history bends towards optimists because optimists are the people that take risks and build things they actually say like oh yeah i can take a risk but i think it's going to work out versus a pessimist who's like i'm going to stay in in my home and not do anything uh and i recently saw a tweet from jake schravinski who pays attention to the capitol hill and all that stuff he goes a big problem with u.s policy broadly we lack we lack vision everyone has a long list of stuff they hate everything we now have is bad everything we're trying to do is worse everything we've succeeded at is particularly awful it's exhausting where's our sense of optimism and progress he says he says and i say you know why it's not in capitol hill it's well not among many

reasons but you know it went to the crypto world the crypto world is full of optimists we all see a brighter future ahead of us and those people are the innovators and and p and optimism is just infectious people want to be around people that are also positive uh and so people that and this is what i think crypto is one of the best things about crypto is our ability to export our optimism about the world to the rest of the world because like our generations millennials zoomers they're very very pessimistic for the first generation in history we do not think that we will actually be better off as a generation than our parents crypto people don't think that and that is something that the rest of the world wants uh and so people the rest of the world will be onboarded into the crypto

world by our optimism alone and and for all the other reasons and so yes optimus will shall inherit the earth yeah i totally agree with that because optimus are what it takes to build the new institutions of the future right it's this mindset of not just burn it down but like build it up build something entirely new and i think optimists have that market cornered i do think it's something that crypto can actually export to the world and this new meme around web three kind of encapsulates yes yes it's an optimistic meme that's exactly right i do i think sometimes uh you know capitol hill and uh legacy institutions of the world they hear the term crypto or like bitcoin and they get suspicious and start calling you shady before you know it uh and but like web 3 the next generation of

the internet this thing this technology has brought so much benefit to humanity allowed the entire world to communicate created so much progress and economic good for the world okay that's the third no one wants to shut web 3 down the third iteration of the internet it's an optimistic movement and i think crypto is going to be a next net exporter of optimism those who are optimists right look into crypto rather than dismissing it those those are the ones that are going to help shape these things i hope you are optimistic if you were listening to bankless um because we certainly are yeah and i wasn't before i mean we've said that did we just synchronize on that yeah is that oof number 10 or is that okay that's great all right man what are you excited about

are you excited about your birthday what's happening uh i'm excited about a number of things uh right after this i'm about to hop on a plane home back to seattle for a little bit early of a holiday break but uh going right up to baker mountain to ski with my friends for a weekend haven't skied since last year so this is my first ski trip of the year so i'm super excited for that i'm also excited about this article that's coming out on bank list today which is yesterday if you're listening to this on friday uh called bankless is layer zero technology and overall talks what i think is about is the prime goal of this whole crypto thing uh this is the thing that i hope everyone gets into their brains uh and one of the lines that i have in there is where l1 blockchains sync nodes via the

internet humans sync their brains via stories i think that might just be one of the the legacies that i think hopefully bankless leaves behind is i think we tell good stories ryan um real story it's not just making stuff up uh and the story that i hope i i told in this article i think can get into the brains of everyone and that's how this these things work is the layer zero is is where we spread ideas so we can onboard the rest of the crypto world uh and so i hope everyone takes a moment to go to go read that uh i enjoyed writing it uh ryan ryan helped as well and i'm really excited about that and of course uh lastly i'm also excited to just receive all the love from

politicians that's coming our way while some politicians do not like us a lot of politicians are are joining forces with us so i think in addition to 2022 being the year of the l2 it's also going to be the year that politicians all come and and swear fealty to the world of crypto so i'm excited for those i'm excited for those three things yeah an optimistic take uh actually you just teed me up for my take yeah my thing i'm excited about yeah tell me about it all right so um i think last week or a couple weeks ago we said something about like i wonder if anyone in government us government actually listens to bank list we know regulators do and we've heard murmurings right and actually bankless was mentioned in british parliament at one

point in time anyway uh after that episode a member of congress reached out and said i'm not gonna name who it was i'd like to answer your question as to whether some members of congress are reading bankless the answer is yes your podcasts are a regular part of my weekly crypto diet thank you for all you do to help educate those of us who are trying to get smart on the space politicians lawmakers trying to get smart on the space we need more of that more optimist yeah bullish he's a crypto term bullish on that and uh yeah anyway it's been a phenomenal year hasn't david like it's been really exciting for the bankless movement for crypto um a lot of things that um we we thought would happen you know happened this year

bankless got to number four on the u.s investing podcast and how that worked i don't know how that happened i mean um also you know hundreds of thousands of members of the of the bankless community across the world so uh super exciting we have politicians involved in the movement now um we've got um you know celebrities involved in the movement i think crypto is really an unstoppable force and uh it makes me optimistic and excited um that's it dude optimism is the week the word of the week after what are the weeks after oof after oof yeah there's some oof but there's a lot more optimism than oof i think we've used it more uh let's turn to meme of the week shall we end of the week all right okay what are we memen what are the memesters

kicking up uh cooking up this week here we go all right so when i saw this on twitter i just i started bawling this is uh uh iron man and who's iron who's iron man's uh wife girlfriend gwyneth paltrow what's your name uh penny penny petty penny yeah oh gosh we're gonna get oh we're gonna get we're getting geared up by the marvel anyways okay we just mentioned marvel's nfts this is bad uh so so penny is talking to tony stark saying your account was hacked and tony stark responds my meta mask and then she responds no your bank account and then tony stark's like oh thank god it's so true who cares about your bank account these days yeah if you're living a bankless life you definitely uh resonate with

this meme for sure yeah please hack my bank account i just don't care there's nothing in there and please tell us who stoney uh tony stark's wife is after the show if you will um yeah dms or whatever don't yell at us on twitter guys this has been the weekly roll up thanks so much for tuning in thanks to david for doing this on his birthday that is awesome gotta end with the regular comments we always end with which is this is risky bitcoin is risky all of crypto is risky you could definitely lose what you put in but we're headed west this is the frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot hey we hope you enjoyed the video if you did head over to banklesshq

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