Bankless - ROLLUP: Solana Outage | Restaking Wars | Dencun Mainnet Date

Episode Date: February 9, 2024

Bankless Weekly Rollup 2nd Week of February, 2024 ------ 🏹 USE PODCAST24 FOR 10% OFF https://bankless.cc/Citizen2024  ------ ❎ DYDX | Learn more about dYdX Chain https://dydx.zone/3SfJTP7  ------ BANKLESS SPONSOR TOOLS: 🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE https://k.xyz/bankless-pod-q2    ⁠  🔗CELO | CEL2 COMING SOON https://bankless.cc/Celo    🗣️TOKU | CRYPTO EMPLOYMENT SOLUTION https://bankless.cc/toku    🛞MANTLE | MODULAR LAYER 2 NETWORK https://bankless.cc/Mantle    💸 CRYPTO TAX CALCULATOR | USE CODE BANK30 https://bankless.cc/CTC  🦄UNISWAP | ON-CHAIN MARKETPLACE https://bankless.cc/uniswap  ------ TIMESTAMPS 0:00 Intro 2:30 MARKETS 5:30 Layer 2s https://l2beat.com/scaling/summary  8:30 Genesis Selling Billions https://twitter.com/Matt_Hougan/status/1754516523304239326  10:20 Bitcoin Spot ETF https://defillama.com/crypto-etf  https://twitter.com/JSeyff/status/1755336511791169574  13:00 Farcaster https://x.com/dwr/status/1754898218956329273?s=20  https://warpcast.com/jayg/0x6675c6e2  19:45 Solana Outage https://twitter.com/SolanaStatus/status/1754831404972552310?s=20  https://twitter.com/matthew_sigel/status/1754874183807307828  https://twitter.com/matthew_sigel/status/1754874192078549406  https://status.solana.com/uptime?page=5  https://twitter.com/dmihal/status/1754837377787609256?s=20  26:50 Eigenlayer Deposits https://twitter.com/eigenlayer/status/1754596238761332939  https://defillama.com/protocol/eigenlayer  https://twitter.com/0xVEER/status/1755069748981674113?s=20  31:30 Restaking Wars https://twitter.com/0xmurathan/status/1753888543951262181?s=46  https://x.com/pythianism/status/1755321346077397124?s=20  https://www.youtube.com/watch?v=7N_pfNWGCmw  https://warpcast.com/hildobby/0xb843396f  https://twitter.com/hildobby_/status/1755297005188915414?s=20  34:25 Finance Delisting Monero https://www.binance.com/en/support/announcement/binance-will-delist-ant-multi-vai-xmr-on-2024-02-20-f73b083ba6834771b07dbe5319917ae5  https://x.com/TrustlessState/status/1754988413579616559?s=20  40:30 Dencun Mainnet Date https://x.com/parithosh_j/status/1755198250456408297?s=20  https://twitter.com/terencechain/status/1755598083558437295  https://x.com/dapplion/status/1752766529559789938?s=20  42:00 Nounsdao Animation https://warpcast.com/trent/0x6055926f  42:55 Taproot Wizards https://twitter.com/QuantumCatsXYZ/status/1754644923461038499?s=20  https://www.quantumcats.xyz/  45:00 Synthetix Chain https://mirror.xyz/kain.eth/kuLEnkUhJBPdJCs9gSIQ2_umGprJq3ZZCExmtc69zn8  48:30 Fraxtal Launch https://x.com/fraxfinance/status/1755386501926433087?s=20  https://x.com/fraxfinance/status/1755386523875181023?s=20  https://twitter.com/jon_charb/status/1751319646601371902?s=20  51:22 ENS GoDaddy https://twitter.com/GoDaddy/status/1754558153008538108  https://x.com/ensdomains/status/1754508567321981219?s=20  53:30 Spot ETF Staking https://x.com/EricBalchunas/status/1755268354355368379?s=20  https://x.com/SGJohnsson/status/1755273120317854066?s=20  55:35 Prometheum ETH Security https://fortune.com/crypto/2024/02/07/sec-prometheum-ethereum-broker-dealer-gary-gensler-coinbase/?taid=65c39d0ef9bf2c00019d4d42  https://twitter.com/MikeSeligEsq/status/1755296298918367445  https://tenor.com/view/mine-animal-pet-dog-cat-gif-5612364  58:40 Omega https://twitter.com/omega_infra/status/1754913327321358353?s=46  1:00:00 MEME of the Week https://twitter.com/boldleonidas/status/1754076355036397910?s=46  ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures⁠ 

Salana went down this week, David. I don't know if you noticed. I know you're on the Salana chain a lot. All the time. It was down for five hours. And that is the first time it's been down in almost a year. Bankless Station is the second week of February. David, what time is it?

It's the Bankless Friday Weekly Rollup where we cover all the weekly news in crypto, which is always an ambitious endeavor. Yet we persevere nonetheless into the bullish frontier. How you doing, Ryan? Good. I'm glad you said bullish frontier. Are you having fun, man? Is this fun yet?

I'm having fun. There's a lot of interesting things going on. It's a lot of exciting things going on. There's a lot to look forward to a lot that's happening now, a lot that will happen in the future. Overall, yeah, I'm definitely, it's a feels it's a good time in the market. I feel like it's a good time in the market too. Like, it's just, hasn't gotten crazy yet. I don't know. You know, we've seen some new things. I'm a forecaster episode. Well, let's unpack it. What are we covering today? Recovered first. Salana's five-hour network outage. Oof, we'll talk about that. There was a little bit of an autopsy, not the official one, but someone put a tweet thread

together, so we'll go through that and talk about the significance. Second, the other very exciting thing that happened this week, the eigenlayer LST tokens caps were lifted, how much TVL flooded into eigenlayer. It's just piling in. It's absolutely piling in. We also got the farcaster users hitting all-time high, so we'll talk a bit more about that. and David, we have the date for the next Ethereum upgrade. I think, is this the official date?

The date. The devs. The devs said. From the devs. The date that the devs said. I thought they didn't give dates. Until they do. Okay. Well, fair enough.

Well, before we get in, we get a message from our friends and sponsors over at DYDX. What do they want the Bankless Nation to know? There are 37 markets on DYDX, now DYDX chain. This is also a call to action for all DYDX token holders who still have the token on Ethereum that is no longer the home for your DYDX token, you should go and send that over to the DYDX chain where you can stake and be a validator of DYDX and get something like 15 plus percent paid in USDC from the DGens that are trading on DYDX. So you can just maintain

the DYDX chain, do your service to the network, and collect some USDC fees. There is a link in the show notes to learn more about how to do that. And also what are the other $20 million. are opportunities of incentives going on in the DYDX ecosystem, a lot to pay attention to link in the show notes. Thank you, DYDX for sponsoring this message. Well, David, let's pay some attention to the market price, shall we? Sure. Honestly, David, at this time in the market, I don't know if I'm more Zen than usual or

what, but this is like right before this episode was the first time I actually looked at charts since last week, since the last roll-up. And I was pleasantly surprised to see this one. This is Bitcoin. Thanks to Crack and Pro for these excellent charts. And thanks to the Bitcoin gods for the... the charts showing upward trajectory. What are we at on the week? I'm guessing, Ryan, you don't have the page on your phone that, like, if you scroll over it, like, shows all the prices. I believe it

all of these things. It's not healthy. It's not healthy for me to do that anymore. You don't have the phone? You don't have that? I don't do that. So is that every time you open? So you have no idea what the prices are until we do the weekly roll-up? Yeah. I mean, really, unless something crazy happens and then I find about it some other way and like, you know. Because somebody says something. This doesn't, this is a nice price on the week, but this is not crazy activity. It's not crazy. So I just didn't check. I think people are excited about the price action right now. A, because we're coming back out of the 30,000 range where it was like the bearish range, like people were thinking we're getting it done at 36,000. And we're not. We're not doing that.

We started the week at $42,500 on the Bitcoin, up to $45,000, $200, up 6% on the week. Marching our way back to the Bitcoin ETF approval highs of $49,000. And I think, Ryan, once we like hit $49,000 and break $50,000, like, I'm sorry. all-time highs are next. That's just, that's just how it goes. Well, that would be all-time highs of this cycle, right? Of this cycle for about 49K? Forty-nine is a new high watermark. Yeah, but we set that, we set that like two or three weeks ago. All right. So 50K would be like kind of net new territory for this cycle. And what is, wait, what is all-time high for Bitcoin now? 69. 69? How did you forget? Yeah.

What's silly me? All right, 69. Next, you're going to tell me Ethereum all-time high was 4,200. No, no, it was 4, $4,900. Sorry, sorry. That's higher. That's actually higher than I remembered. Okay, well, tell me about ethel on the week. Where are we at? $2,2,2,2,2.2.9 is where it started. We are up 2%, 6%. Excuse me, 6% to $2,430. So some up weeks. Both Bitcoin and Ether are up 6% on the week. We'll take that one. Not double digits, but we'll take it. And the ratio, is that about steady? It's steady, but it's low, but it's steady. Lower than you want. Lower than it wants. It's a long term.

We have plenty of room for upside. I'll reframe it like that. Lots of room in the ratio for upside. Tell me about the total crypto market cap. We just broke this morning $1.8 trillion. Is that? Is that? Is that cycle? All time highs? Yeah. We have not all-time highs for the total crypto market cap. I think we got a little bit above that. No, but I mean it's cycle. Cycle all-time highs, right?

Oh, that's what I mean. I think we hit 1.86 right at the Bitcoin ETF approval, and it's been down since then. So we are $60 billion off of cycle total crypto market cap all-time highs. I want two. Two trillion. And then what happens at two, you just feel better? You get to three. It's never enough for you, is it? No.

Well, let's talk about something that's never enough, which is a total locked value in layer twos and transactions on layer two's. It can never be enough for me, David. This layer two update is brought to you by Mantle, which is a new and upcoming layer two that we especially enjoy. By the way, I think M.Eath is that all-time highs? Speaking of all-time highs, which is Mantle staked Eif. Yeah, TVL on Mantle all-time highs.

Also M-Eth also now in eigen-Layer. So there's a bunch of mantle ether in eigen-Layer. And what they're going to do, they're juicing the Mantle-Eth yields, like, natively. So like the mantle-Ethield is like 7%. And all of the Mantle-M-Eth Treasury that's now in eigen-Layer, they're just going to send the points over to, the M.Eath holders on the mantle layer two. That's cool. You get some yield on your yield, huh? Yeah. That's what I like. Some points on your yield on your yield. Some points on my yield on my

yield. Wow. This is crypto in 2024, folks. Well, we're close to all-time highs in total value locked in layer two is at 22 billion and activity. Yeah, not too bad. We're about five Ethereum's worth of activity. Five and a half. Yeah. I want that number to be higher. I'm dissatisfied by that number. I want eight. I want eight. How about how about you think post the next Ethereum hard fork, EIP 4844? You think that unleashes the beast year? That's a good point. That's a good point. Yeah, I don't know. What do you think that jumps to? I don't know. I mean, transactions get cheaper. It doesn't mean that first transactions get cheaper and then there is more of them in that order of operations. Transactions get cheaper and that induces demand. Like that would be the theory. And so, you know,

we get more activity. Although I don't actually. actually know if cost of transactions on layer two's how much of a constraint that is. It's got to be somewhat of a constraint, right? Because... Well, yeah. If you lower costs, you have more arbitrage opportunities. Well, how much does it cost? How much does a transaction, like moving ETH on arbitrariness? Optimism? Or optimism? I think it's like four or five cents. Just to move Ease. And then to swap on uniswap, it's like 11 to 12 cents. So we're going to fractions of a penny, right? Point. Momentarily. And then it will, it will come back up to about.

those prices, but then there will be like a 20 to 30 to 40% more transactions. So I guess if transactions are like, you know, five cents, 10 cents, 25 cents, 30 cents, that is a constraint, I think, on activity. That's enough where you kind of like pause and like, do you actually need to do this or not? So it's enough. Well, it's enough to like a lot of automated transactions don't happen. I think user transactions, users don't care about like, users don't think about 30 cents, unless they're doing a ton of stuff.

but, you know, how many times do you touch your ledger every single day? Yeah, not very often. Not that often. I do think bots are big activity drivers here, right? A lot of robots using our chains here. Well, let's get to some general market news. And there is some, you know, like downside, I guess, right now in the markets. This is a tweet from Matt Hogan.

Here we go again, he says, 1.4 billion of GBT from the Genesis bankruptcy. Ah, I forgot about that. We still got a clean that up, David. Still got that. potentially followed by another $1.2 billion in the future, again from Genesis, he says, this is a lot for the market to digest in a short period of time. So, okay, we still have Genesis, I guess, to go through their liquidation process. And that's going to be some Bitcoin outflow. Do you think that'll be downward pressure on price? It will cease upward pressure on price.

It will delay upward pressure on price, in my opinion. Yeah. Which I think, I know we're all, we want upward movements because that's what of course obviously. But also, the longer that we can go before all-time highs, in my mind, the better. The healthier, the less D-Gen, the more responsible, the longer we can grow out, the infrastructure. Listen to you. If we can just stretch out the anticipatory period as long as possible. Wow. And just like, I don't know where we're going with this.

Stay edging, you know. We just got to edge our way there. Slow and steady Slow and steady wins the race is what my co-host is trying to say You know what? I don't know if I would have heard this from the David Hoffman of 2019

in 2020 I don't know if I would have heard David Hoffman urging caution and slowness I think you would just be like Bringing on man Like Brit I want my tenets I want my portfolio to go up

Just like the next guy But I know it's good for me I wanted to go up slowly And surely and long over time Because I want the good times To stick around Not just like have a blow off top Yeah. Yeah. Enjoy your beer. I don't want to have a premature bull market. No one endorse those.

All right. It's a bad time for everyone. Well, moving on, David, let's talk about the Bitcoin spot ETF, this horse race of horse races where all of the bankers have jumped into Bitcoin with their their ETF products. Which is winning? Who are the winning horses at this stage, David? Well, GBTC is still in the lead in terms of like AUM. It's got 71% of the market. But that number is going, some numbers getting smaller, and then all the other numbers are getting bigger. So, Ibit from BlackRock at 11.5% FBT from Fidelity at 10%, arc at 2.6%, and then bitwise at 2.5%. But like, if you're watching on screen, the big blue shape is going to get eaten by the smaller rainbows. These are technical terms. The big blue. So it's opposite of Pac-Man then.

Yeah, Pac-Man's getting smaller, rainbows getting bigger. The rest of the pie chart. We're looking at a pie chart. Which also is like kind of intimidating because that GBT definitely needs to like flow out. But that doesn't mean sold. The people that are dumping GBT are eager to dump. And then the GPTC that's left in the gray scale now ETF, they're just getting charged really high fees. And so they're going to, if they want to hold, they will hold. They just need to transfer. I mean, somebody's like with BlackRock, they were subsidizing it, right?

It was like free. A lot of these ETS are free for the first six months. Whereas GPTC is still. 1.5%, which is insane for an ETF. Yeah, and you can really see these flows in terms of volume, where actually BlackRock's ETF is leading. That's 40% of the volume. I guess that's on the week, huh?

Yeah, that's on the week. Yeah, that's on the week. Yeah. By the time listeners get this, there will be 30 billion dollars of AUM inside of the Bitcoin ETFs. It's 29.2 right now. Well, you got a personal favorite ETF, David? Do you have any

Oh, of course. Really? Yeah. Do you have a guess? Which one of my favorite is? Yeah, I'm going to say Matt Hogan's. Oh, absolutely. You got to give it to Bitwise.

Of course. Have you ever had a favorite ETAF? All of the Black Rocks, you know, Fidelity get some kudos. Black Rocks, you guys are just a bunch of boomers, but hey, we love you too. Yeah. Thanks for being here. Thanks for being here. You're very wealthy.

But you got to give it to Bitwise. They're like the good guys. What about Vanek with Hoddle? They also deserve a shoutout for sure. Super crypto natives, but no, bitwise. Bitwise wins. Okay. I agree with you.

I think they also have the lowest fees, the lowest fees. Yeah, this is James Safer. Big volume day for BlackRock's ETF, total volume over $1 billion for the group. So, yeah, when ETHETF, huh? James, James. We got some things to talk about with the ETHF. Another number that is up in the market. we should talk about a record day for Farcaster, David.

I think it's been a record day every single day. Yeah, this was from February the 5th. That was Monday. Ooh, is that the same day? Oh, almost the same day, our podcast with Dan Romero dropped. I guess we probably hit new records on that podcast, David. That was a fantastic episode. I really enjoyed that with Dan, but it's great to see the traction.

I've been spending, as I mentioned this far, just for context. Last week, we showed this graphic of Dan talking about daily active users over Farcaster, and it was hitting 10,000, then 11,000, then 15,000. And Dan was tweeting out, oh, new record for daily active users on Farcaster. It was 61,000 this week. It's four times higher. Does that still sound small, though, in the scheme of Web 2?

61,000 users. That's like... I don't care about Web 2. I care about crypto. In crypto terms, it's massive. It's really great. It's really great. And this is, by the way, not a token-incented app.

Although, is it? There are bots. There are fake accounts on there. Like, you can just tell. Like, that's a fake account. Because I think people are now trying to increase their footprint. But it's still a big hurdle to get over to spend up a Farcaster account. Like, you have to make transactions.

There's way more fake bot activity, all that stuff on Twitter. On Twitter. For sure. Oh, I've been enjoying the Farcaster community. It's been great. just, yeah, the conversations there are just, you know, fantastic. A lot of bankless listeners as well. This is...

I've been tweeting out my morning latte arts on Farcaster in the morning. You've been casting out, David. I've been tweeting that. Well, Dan said it's okay to say, too. That's what he said. So, you still Google on Bing. Wait, wait, wait, wait. So you've been doing what?

I'm going to look up... Sorry, I haven't been following your time. I've been trying my hand out. Latte art? Yeah, this latest day was the worst day, day four, but I finally figured out... Or is it a poo emoji? People said it looks like a fetus, which I think is correct. What was that what you're going for?

Explain the art. Oh, wait, no, that was yesterday. Yeah, latte art day four was especially bad. Oh, a circle blobby thing? Circle blobby thing had a shape to it. All right. Wait, you are missing opportunities here because, like, you should be NFTEing this collection and you should be shilling it to your followers.

Look at that. Look at day two. Day two is the best one. Fpped up Christmas tree. that's actually good I might buy that one tokenization it's got your foot

in the bottom too somebody commented I can't believe you're showing off latte art on Farcaster after you talk shit about all these beverages that people are drinking

this is the kind of content I think people don't get on Twitter though from you that's right yeah so wow it's exclusive content by the way

they're doing Farcasters bringing a lot of activity to base it looks like yeah uh huh so this is a in the poster this is a cast david not a tweet wow crazy chart displaying base dominance in the last few weeks

for total transactions by chain farcaster users are now conducting two out of every three transactions using base so what's good for farcaster is also good for our layer two's david transaction activity interesting i kind of would think that it would be a competition between base and zora on Farcaster to be the big destination to do your NFT minting, like kind of consumer crypto stuff. It seems to be gravitating. Those two communities are really adopting Farcaster a lot. David, what do we have coming up in the episode? Coming up next, we're going to talk about the Solana outage, the five-hour outage, what happened? Why did it happen? All that kind of stuff. What does it mean?

How did the markets react? Then we're going to talk about eigenlayer and it reopening the gates for liquid stake tokens, how much ETH flooded in. And the blobs are coming to the last test net, which spoiler, test net did just fine. Which means. that we have the date for Dengoon. We'll talk about that and more. But first, I'm going to talk about some of these fantastic sponsors that make this show possible, especially Crackett, a preferred crypto exchange in 2024. If you do not have an account with Cracken, how the hell are you getting dollars into crypto? Use Cracken. There's a link in the show notes. Cracken knows crypto. Cracken's been in the crypto game for over a decade. And as one is the largest and most trusted exchanges in the

industry, Cracken is on the journey with all of us to see what crypto can be. Human history is a story If progress, it's part of us hardwired. We're designed to seek change everywhere, to improve, to strive. And if anything can be improved, why not finance? Crypto is a financial system designed with the modern world in mind. Instant, permissionless and 24-7. It's not perfect, and nothing ever will be perfect. But crypto is a world-changing technology at a time when the world needs it the most.

That's the Crackad Mission, to accelerate the global adoption of cryptocurrency, so that you and the rest of the world can achieve financial freedom and inclusion. Head on over to cracken.com slash bankless to see what crypto can be. Not investment advice, crypto trading involves risk of loss. Cryptocurrency services are provided to U.S. and U.S. territory customers by Payward Ventures Eek. PVI doing business as Cracken. It's everyone's favorite season in crypto, tax season. And crypto tax is always an absolute headache, especially for all you DGens out there.

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like an obstacle course. But it doesn't have to. That's where Toku steps in. Toku, provides practical tools to handle token grants, allowing for effective oversight of token distributions and payroll tax compliance for employees, contractors, advisors, and investors. They also handle tax withholdings through their real-time tax calculations that can be done by Toku or integrated into any payroll EOR providers in any jurisdiction. Toku is a trusted provider of protocol labs, D-Y-D-X Foundation, Mina protocol, and many more. Get started for free and make token compensation simple at Toku.com slash bankless. Salana went down this week, David.

I don't know if you noticed. I know you're on the Salana chain a lot. All the time. It was down for five hours. And that is the first time it's been down in almost a year. Almost made it to a year without incident. But it fell over. Tell me a little bit about that.

So we don't have the complete post-mortem yet. But there was a tweet from Matthew Siegel, who kind of gave his autopsy. I'm sure the formal audit, the formal like situation report will say something similar. to this. He says the BPF loader, the Berkeley packet filter, which is the mechanism to deploy, upgrade, and execute programs on Solana, which we would call smart contracts on Ethereum, failed. This seemed to relate to a previous SMID-Salna improvement proposal that altered some of the features, including adding a blocker to stop metadata from being used in the BPF because it was no longer needed. Some technical stuff. Basically, I would say the culprit of this is that

Solana changes a lot. And as it's changing a lot, that can always introduce. produce new bugs to any software. That's just the nature of software. And this, and recent upgrade to one of the things that makes a lot to run implemented a bug, and that caused downtime. And so this is what happens when you have a single client system and you have a lot of updates going into that single client system. What do you mean by single client system? Single client system. There is one version of the software that runs. And if that version of the software has a bug, then the whole system has a bug. And this is in contrast to a multi-client software, multi-client system like Ethereum, which has five different clients where if one of those clients has a bug, the other

clients don't care and then they keep on going. Unless, of course, that client is a majority bug, like majority client like Geth, and it has 80-something percent dominance down to like 75, I think, right now. Anyway, over 66% is a problem. And if Geth had a bug, then that would be the bug of Ethereum because of the dominance. But if a minority client had a bug, then the other clients are just totally fine. Salana has one client. It's the Salana core client. They're working on their second fire dancer,

which is the, like, it's basically the proof of stake equivalent and significance of Solana. Like, they're going to become super fast, super cheap. It's going to be the second client of Solana. But then there's also nuance there because they want the fire dancer client to actually just replace the current client and then use the current client. Because the other one will be a lot slower, right?

Yeah. Yeah. By comparison. Yeah. Uh-huh. Anyways, Solana down for five hours. They made a patch to the client and then that client was released just an hour later after it went down, but then it took a number of hours for all the validators to there's like this kind of like process to restarting Solana. Like all the client needs, all the client validators need to like sync up with each other. I don't know. So it was down for five hours. Yeah. So the last time it was down prior to this was February 25th, 2023. Yeah, almost a year. Yeah. And then before that, 2022 was

pretty spotty with, I don't know, there was, there was like six or seven or seven outages. You can, you know, kind of see them. And when we say down, it means like no transaction activity, like completely down. It just like fell over completely. And so what is the process for restarting Solana, David? Like, what does that look like when it, when Solana goes down? There's a link in the show notes to check out Matthew Siegel's tweets. He can kind of explain the details of it at a technical capacity. I want to skip to the very last tweet in the tweet thread. and he talks about the second order effects of what happens when a chain goes down. He goes, once restarted, there will be a flurry of defy activity as ArbBots, Arbitrarch bots,

seek to take advantage of all the arbitrages that have materialized because when Solana goes down, the world goes on, markets continue, and Solana is as a state machine, is not updating to the state of the world. And so he said that some estimates there might be as high as $25 million in M.V. Really hard to measure this in like real time. But as soon as the Solana blockchain gets started again, like liquidated, there are stale prices that need to get updated. There are people that needs to be liquidated. Like, there's a bunch of stuff that happens. And this is one of the concerns of having a system that has poor liveliness is that when it restarts again, whenever it goes down and it restarts again, there's just this massive fight for all of that arbitrage.

And this generally not a desirable property of a system. Yeah, it's also generally not a desirable property, of course, for a blockchain. to go down in the first place, particularly when it's kind of like a layer one blockchain. Ethereum had an event not quite like this because of its multi-client architecture, but was it with the PRISM client? My God, that was like... It was with the Prism client. Yeah, you're talking about the non-finality event.

Yes. Right. How would that have compared to something like this from your recollection? Right. Okay. So the non-finality event was that blocks were being propagated around Ethereum. The blockchain was operating as normally from a user perspective. all transactions were going through, but they just weren't fine.

They weren't being finalized because less than 66% of the chain was finalizing. And finalizing is just like economic security. So it's like the first line of defense in the Ethereum system before an actual outage. So one client of Ethereum went down and that brought down more than a third of the network. And so because of Ethereum's multi-client design, because Ethereum is larger than any one client, the rest of the clients are fine. It's just not finalizing, as in there is risk of reorgs if further catastrophe happened. So it's kind of like you get to take two bullets rather than one. So in that time of Ethereum where there was like a non-finality event that I think lasted like half a day, maybe less.

Ethereum took like a bullet, but it had body armor. But then for a moment that body armor was gone. And so if it took another bullet, then we would have like a real big issue. Yeah. Like a castle with multiple walls in the first. ball was kind of breached, right? Exactly. Right. Yeah. So it was really interesting. So first of all, something that didn't happen was the price of sold didn't tank. So the market kind of like shrug this off. Yeah, it went down like two or three percent, which I would consider not reacting.

And I didn't see much of this conversation on crypto Twitter because I just wasn't going out and looking for it. I'm sure there was some grave dancing by some. I'm sure there was others who, you know, from like maybe the Salana tribe. I think everyone kept it pretty tame. Really? I think like overall it was a, a tame thing. Okay. Well, so there was definitely some grave dancers, but like, you know, how can it not be? Yeah. Well, this is not great dancing. Wasn't me. You should preface this. This is just a simple prediction. I recall, David, that one of your January 4th, 2024 predictions of this year, number five was Salana goes down. So I just wanted to say,

congrats on that. Thank you. I mean your prediction. You called it. And yeah, Salinas, look, move fast and break things. And so they're moving fast and things are breaking. And yeah, this is David Mejow saying, honestly, I thought this prediction was unrealistic. Enjoy your W, David. So there you go. Thanks, David. Salana, there's always next year. Moving on, Eigen layer caps open up hits $5 billion in total locked value. It was opened this Monday until February 9th, which is today at the time of listening, if you're listening to this on Friday. All pools are fully uncapped. So it's like a time opened gate. there's no caps except for the time.

And so. Wait, there's no caps for how long? Until Friday at 12 p.m. Pacific time. So no caps until then. Friday the ninth. Tomorrow. Yes.

Tomorrow for us. Today. By the time. Today for listeners. Today for listeners. Do you have much time. Yeah. Not much time.

So infinite amounts of Eth can go in until the limit of Eth. But then once that time is, then the doors shut. And so as a result of that. Infinance amount of ETH until there's no more ETH. Until there's no more E. You're capped by the supply. Cap by the supply, yeah. There is, we just crossed $5 billion in TVL in Eganle, or 5.3 billion.

It was $5 billion when I looked at this. Now it's the 5.3. This is Eagerlayer. It's just hoovering up the Eith, bro. Absolutely nuts. Yeah, it's, it's munching it. It is eating all the Eth that it can. Look at these, like, big, you know.

So how, I wonder how high it could get, because this must be still climbing, right? This is climbing right now. Until 12 p.m. PST on February 9th. And then what happens after that? Another pause? Yeah. I'm guessing that this is probably the... Maybe there's more.

This could be one of the last openings of the gate until Egan-Layer main net. I'm just speculating here. But there's just like a lot of ETH in there. How much more ETH do they want? Granted, everyone wants Egan-Layer points, which is why this is happening. I will say everyone else should just totally unstake

their ETH and get out. Because I've got it and I'll take it from here. I'll just take the points. I will restake. It'll be fine. I don't know why yourself. They're just points, David. It's not like there's any value attached to it.

It's not like there's a token. It's just a point. I volunteer to collect the points. What's going to be interesting to find out is once the limitors are off, the governors are completely off, like what will the market? What's the ceiling for the market in terms of total deposits in eigenlayer? and we haven't quite seen that yet. So we'll have to see.

And of course, all of this is a lot of speculation on this whole ABS market, these eigen applications that really are starting to get built, but nothing has come out that we'll do something, you know, functionally fantastic. I mean, we're all betting on the future utility of the eigenlayer ecosystem. What's your take on that? You think that's a good bet? Do you think there's real stuff being developed right now?

Yeah, it's a speculative bet. the people intending to build good stuff are numerous. The teams building AVSs are numerous. The excitement, the nerd sniping, that is being done by Eigenlayer in both Tradfai and in Silicon Valley Web 2 software as a service tech circles, Eikenlayer is opening up doors to these people that were not previously nerd sniped by Bitcoin, Ethereum,

Solana, all these different like waves of adoption that like, Salana, to its credit, nerd snipped people that did not get nerd sniped by Ethereum. Ethereum, nerdsynpe people that did not get nerdsniped by Bitcoin. Eigenlayer is doing the same thing. It's nerd sniping people on Wall Street. It's nerd sniping people in San Francisco. It's building, and because it's building out unique use cases that can like very elegantly and simply hook into, you know, Web 2 and Tradfai without having to be all like chaney and cryptoe. And so I think it's a new way to export crypto economics to the outside world. So that is, that's all of that is real. Right now, everyone is speculating on

eigenlayer points on the eigenlayer air drop. So my concern, actually, Ryan, is like when I can only remainet ships, sometime Q2 is when, as Sri Ram said, when I did my Q&A with him, why will all of the ether stay put? Because a lot of these Aveses still need to be built out, right? Like the, the, the incentive are the points, I'm assuming. Some will stay because they want to stay committed to Igan. So you think there's the potential once we launch some of this capital then floods back out of Iganlare. I think that's a rational thing

to assume that so some people are just here for the points. The speculative mania right now. Can you imagine just being here for the points? I can't even imagine. I could not imagine. Kind of a sick person takes their points and leaves. Okay, so this is the restaking wars as well, the LRT

wars. And yeah, give us an update. This is kind of like the Bitcoin ETS we're talking about. There's a number of horses in the race, and some are winning versus others, but it kind of changes on a week-to-week basis. What are we looking at here? This is a cool little graphic showing all of the liquid restaking protocols, the people that are aggregating AVS yields, putting them into a token, just like LSDs.

And we are just watching them collect their ETH, they collect the TVL over time. And you see etherfi far in the lead at the very, very top, followed by Kelpedau, Renzo, then Eigenpie. And then Puffer out of nowhere on the second. just like rocketing up in TVL to jump into second place. So EtherFai breaking 700 million this week. Puffer breaking 300 million this week. Kelpdell coming in third, followed by Renzo.

This graphic, the GIF is five days old. So now what Ryan's showing on the screen is now super up to date. 850 million for Ether 5 coming at number one. Oh my God, Puffer at $770 million. Wow, amazing. Apparently Justin just put a bunch of Ether into Puffer. Puffer has taken only staked eath from Lido.

So all of the TVL and Puffer is Lido staked Eath and it is their tension as soon as their validator their validator's main net launches they will swap out the liquid steak to ETH from Lido into PuffEath which is the point. And so all of the ether inside of Lido gets taken out of Lido

and put into Puffer as a vampire attack which is taking 1 30th of all Lido ether away from Lido. So like really like carving into Lido dominance. Huh. Well, that's a good thing, right? I mean, it's a good thing for the network. So LRTs are like all of these, uh, are new names. You know, like new projects in the fold. So this isn't some of the dominant, um, liquid staking tokens that are kind of like taking the lead here. So that's new names, new lindy clocks. The risk, reset. Everything is new again. Oh, here's Van Spencer saying what we just said, except in a more

pithy form. He says, I can layer. TVLs up to $5 billion from $2.15 billion just two days ago. All the L2s and restaking and staking apps are just black holes for ether. It was the ethos money tweet, surprise. He's staking our place, David. And thanks to all of this activity, we have a new high in the share of all ether that is staked and that is 25%. 25% of all ether is staked. I think in a previous era, the EF people kind of thought that between 20 and 30% of all ETH would become staked and that would be equilibrium.

But that was really before the complete total acceptance of LSTs as an equilibrium. And that was before eigenlayer. I think we're going to blow past that 30% number pretty damn quickly here. And we're going to start to approach like one third, one half. But right now, 25%. David, there was another announcement this week that I know. noticed that Binance was delisting Manaro from its exchange. So tell us about that. Yeah, I think for the newcomers, the people who came in 2021 and beyond, this won't be perceived a very big deal. But I'll say

this is, this marks the end of an era. Binance delisting Minero, delisting the last privacy chain. Privacy chains used to be a huge sector in 2017 when you and I got into crypto. There was It was Marrow. There was Dash, Zcash. There was a bunch of others. God, remember Mimble Wimble? Yeah. I mean, the pitch was basically

Bitcoin's perfect. The only thing it's missing is privacy. And so we need privacy-specific chains that deliver privacy at the base protocol layer and that these would all kind of like take off and finally deliver that missing functionality. Never came to fruition,

did it? No. And I would say Minero won the privacy chain wars, all the chains that were meant for privacy. Manero one. Best privacy, best community, managed to be the best store of value, even though it was a poor store of value for the privacy chains. But now the king of privacy chains is being delisted from finance. And I'm sorry, it doesn't matter what properties you have. If you don't have liquidity, you can't compete. And if you're delisted from, you're not being listed by Coinbase. You're not being listed by Crack and that's not happening. So I'm kind of declaring Manaro to be

formally dead as a money store of value, which is the end of an era. That is the end of a big I think it still can be used in very small niche use cases, but it's just going to be absolutely tiny. Yeah, not for like regular use cases, like the bad ones. Well, yeah, my take on this was this is why privacy chains don't work. It's because they're not programmable. They don't have the other verbs. Like you can just send Monero, but you can't exchange Minero from one asset to another without what? Going to Binance, going to a bank.

And what are the banks going to do? well, they're going to be requested by, commanded by, pushed into by the state, not listing any these privacy coins because nation states do not necessarily want to encourage on-chain privacy, right? Certainly not. That's exactly what is happening here. I think you had to take on this as well. Yeah, I just think this isn't a coincidence that this is happening right after the, not right after, but just like not that long after, the Binance Department of Justice settlement. The Department of Justice doesn't want privacy.

So just a big old reminder We're probably going to win the right to have defy We're probably going to win the right to have our private keys We're probably going to win everything that we want Except for privacy Privacy is still on the table Something that we still need to fight for If we want the maximally a successful version of crypto

And that's going to be a hard fight I do think Ethereum is on the frontier of that fight as well I mean if it's not there I don't know where all today is So we'll see how that evolves David, what do we have coming up next? I've registered token securities exchange. Once the list, if, ETH as a security, Christ, we're talking about this again.

And blobs are live on the last test net, ready for main net. When is Dengoon? I'll tease it for the third time this show. We're about to find out. We're going to tell you right after this. But first, a moment to talk about some of these fantastic sponsors

that make this show possible, especially Mantle, the layer two with extra high yields that are now giving you eigenpoints if you use the layer two. Check it out. There's a link in the show notes. Mantle, formerly known

as BitDAO is the first Dow-led web3 ecosystem, all built on top of Mantle's first core product, the Mantle network, a brand new high-performance Ethereum Layer 2 built using the OP stack, but uses Eigenlayer's data availability solution instead of the expensive Ethereum Layer 1. Not only does this reduce Mantle network's gas fees by 80%, but it also reduces gas fee volatility, providing a more stable foundation for Mantle's applications. The Mantle Treasury is one of the biggest Dow-owned treasuries, which is seeding an ecosystem of projects from all around the Web3 space for Mantle.

Mantle already has sub-communities from around Web3 onboarded, like Game 7 for Web3 Gaming and Buy Bit for TVL and liquidity and on-ramps. So if you want to build on the Mantle network, Mantle is offering a grants program that provides milestone-based funding to promising projects

that help expand, secure, and decentralize Mantle. If you want to get started working with the first Dowled layer 2 ecosystem, check out Mantle at mantle.xyZ and follow them on Twitter at ZeroX Mantle. You know Uniswap. It's the world's largest decentralized exchange with over $1.4 trillion in trading volume. You know this because we talk about it endlessly on bank lists. It's Uniswap. But Uniswap is becoming so much more. Uniswap Labs just released the Uniswop mobile wallet for iOS. The newest, easiest way to trade tokens on the go. With a Uniswap wallet, you can easily create or import a new wallet. Buy crypto on any available exchange with your debit card with extremely low Fiat on ramp fees. And you can seamlessly swap on main net, polygon, arbitram, and optimism. On the Uniswop mobile wallet, you can store and display your beautiful NFTs, and you can also explore Web3 with the in-app search features, market leaderboards, and price charts, or use Wallet Connect to connect to any Web3 application.

So you can now go directly to Defi with the Uniswop Mobile Wallet, safe, simple custody from the most trusted team in Defi. Download the Uniswap Wallet today on iOS. There is a link in the show notes. Sello is the Mobile First EVM-compatible carbon-negative blockchain built for the real world. Driving real-world use cases like mobile payments and mobile defy and with Opera MiniPay as one of the fastest growing Web3 wallets, Sello is seeing a meteoric rise with over 300 million transactions and 1.5 million monthly active addresses. And now Sello is looking to come home to Ethereum as a layer two.

Optimism, Polygon, Matter Labs, and Arbitrum have all thrown their hats in the ring for the cello layer two to build upon their stacks. Why the competition? The Sello Layer 2 will bring huge advantages like a decentralized sequencer, off-chain data availability, secured by Ethereum validators and one block finality. What does that all mean for you? With Sellow layer two, gas fees will stay low and you can even pay for gas natively using ERC20 tokens, sending crypto to phone numbers across wallets using Social Connect.

But Sellow is a community governed protocol. This means that Sellow needs you to weigh in and make your voice heard. Join the conversation in the cello forums. Follow Sellow on Twitter and visit cello.org to shape the future of Ethereum. March 13th is the next Ethereum hard fork, the Denkoun hard fork that introduces Blobs to the Ethereum Protocol. Blobs, the second fee market alongside Blockspace. We now also have Blobspace and Blobspace is reserved for Layer 2s.

Not totally reserved. There's probably going to be some inscriptions bullshit in there too. Layer 2s are going to be the big consumers. They use the most blob space of any. There's going to be some other upgrades as well, but mainly it's the Blobs that we were excited about. the last test net just merged that's just updated to

to include blobs to include 4844 on Holski it was totally successful so the main net date has been decided as March 13th do you see a little graphic that they put in when the EIP 444 was accepted the little blob A6 Asiki It's a blob I don't even know what it looks like

It looks like it looks like it looks like you're lattees man I can tell what this looks like Yeah, so we got a blob in ASCY format here. So that's great. Thanks to the devs for getting that through. So, ETH layer two transactions, price will go down. Optimism, Arbitrum, pretty much right away. Like pretty close to the release of this.

And then they'll go up. To celebrate this and also just public goods in general and also the Protocol Guild, there is a Nouns-Dow collaboration with the Protocol Guild. Collaboration. They're mostly just sponsoring this animation with all of these cute characters about all the layer twos. Is it anime? I think that counts as anime. I'm not an anime expert. It's a cartoon. It's a cartoon. I don't know.

Cartoon featuring Polygon Scrollsarknet ZKSync as well as, of course, arbitram optimism. Everyone has little characters. There's going to be this cute little animation. And then the animation short is going to be released as an NFT at the Dengoon upgrade. And then all the proceeds for purchasing the NFT will go to the Protocol Guild. If you collect little artifacts, right, with every time Ethereum Hard Forks, like people do this, right? There's like poaps that happen, every hard fork. There's things like this, and this would be a good thing to add to your collection. Yeah, it's a collection about Ethereum history, and you'll be able to show your kids, and your kids are going to think that you're super cool. Yeah, they sure will.

Okay, speaking of super cool things, the taproot wizards, the quantum cats sold out. Nothing more exciting than NFTs in Bitcoin, David. What happened in the Bitcoin NFT world this week? I'm sensing a little bit of sass in your voice, but man, there's no sats. 3,33 O-P-Cat NFTs were sold at 0.1 Bitcoin's. I thought they were quantum cats. Quantum Cats, the meme is coming out of the O-P-Cat Op-Code. An off-code. So all off-co's on Bitcoin's art with O-P-Code. Op-Code. O-P. Not, see, I'm such an Ethereum. I know O-P is optimism. I don't know O-P-P-Code for Bitcoin. You've got to get your Bitcoin around, man. Yeah, so yeah, it's a Bitcoin it's like this OP cat thing.

It's an ordinal. This is Udi Wertheimer and Eric Wall. Yeah, quantum cats sold out immediately. Very hyped NFT drop on Bitcoin. Denominated in Bitcoin, obviously. I'm not used to denominating in Bitcoin. Like I said, sold at 0.1 bitcoins. Current floor, 0.27 bitcoins.

Another sign, Ryan, that the bull market is on is when mince are like tripling in price right after drop. Can I ask you a question? I don't know the full history here. I mean, if we had Anthony Sassano here, I'm sure you can tell us, that guy keeps receipts of everybody in the space. Udi, was he previously like a NFTs are dumb,

I hate NFTs type of bitcoiner, or am I just misremembering that? Well, Udi is a amateur edge lord, and so he thinks everything is dumb. I disagree, I think he's a pro-edge lord. I think he's actually pretty good at it. No, because by definition, if you're an edge lord,

you cannot be professional anything. Okay, so that was a compliment. get it. So you're saying that it's hard to know. The NFTs on Ethereum are dumb, but NFTs on Bitcoin are based. I just want to know if that's actually what he used to say, because if so, I'm going 100% confidence you can find an Ooty tweet somewhere talking about how dumb NFTs are. Oh, man. Well, you know what? If I cared more, I would go find that tweet and, you know, just resurface it. David, synthetics is going to have its own chain because why not?

not. Does every app need a chain? Does every defy protocol need a chain? Tell us about this. Well, I think this is the cosmos thesis. If you are a sufficiently successful defy protocol, and if synthetics is not that, then who the hell is? Then you get to elevate yourself to the status of app chain. It's like the highest order of app you can be. First app, first app app, then app chain. It's like a Pokemon evolution. You just kind of like you just grow into your app chain. Oh my God. That's a great meme. Yeah. First app on a layer two. then you get to be big enough to go down to the layer one, and then you get to be big enough to justify your own chain.

Okay. So synthetics is putting on its big boy pants and it's launching its chain. Yeah. And synthetics has been just like along the optimism ride for a long time. Kane and the optimism team has been super close. Synthetics was the second app to leverage optimism after Uniswap. So first there was Unipigs, and then Synthetics had their own like custom optimism deployment.

And so rather than synthetics deploying on many, many, many different chains, Synthetics is just going to have an O-P-stack snack chain. God, is that the name of it? Snacks train. SNX, collateral, of course. And that would be the home of all S-synthetics perps activity. And will also be a part of the super chain. So I remember that last time I heard from Kane on this, I read a blog post.

I think you did an episode with Kane, not too long ago. And one of the big problems to solve for synthetics was fragmented liquidity across the ecosystem. Does this solve fragmented liquidity? Because I'm seeing this could mean a single place to borrow S-U-S-D, a synthetics-USD, against S-N-X, and allows for the potential to leverage all of this to be used as collateral across many chains. This essentially solves them the liquidity problem that, you know, has phased synthetics. I don't think it solves some of them. I think it solves all of them because it makes a single instance, a singleton instance of synthetics, aggregates all the liquidity all in one spot.

Kane has always just been so far ahead of the curve. Everyone thinks that compound and Robert Leshner invented yield farming, but Kane invented yield farming like 18 months earlier than that. And remember when our recent Justin Drake fixing fragmentation episode, where eventually, like, instead of uniswap deployment on 17 different optimism chains, you would just have a uni chain. And that uni chain would actually just be like the uni smart contract on the Ethereum layer one,

would be a chain that would be contract called by other layer twos and that would be the unichain and chain cane of synthetics and the synthetic team are just getting ahead of the curve here even before some of the some of the other issues around fragmentation are solved they're saying well this is where the puck is going we're going to build our snacks chain now sNAX chain I still remember the days when synthetics pivoted to EOS do you remember that slight detour for a while that was in the very early day You don't remember this? They did?

Yeah, true story. Holy God do you. I'll send you some weeks afterwards. You got received for that, bro? Oh, 100%. Yeah, they were all in on EOS for some period of months. Before the Haven,

it pivoted from Heaven, Haven to synthetic. You're saying after it was synthetic. I don't know if it was actually, it may have been in between that pivot. Okay. Haven, Haven definitely. I will give them a pass then. You give them a pass? He can have his

ETH Maxi card back. All right. Fracto launch. Frax Finance. They are up to some cool things. This is actually really interesting ecosystem. Now they have launched,

I believe, their own chain as well. The Frax chain. Fragstall. Also part of the optimism super chain. FRAX stole? Okay. What's going on here? Kind of the same thing.

FRAX started off as just another decentralized stable coin. Not to say just another. It was a very successful decentralized stablecoin and they were actually front running maker down on what like everyone's super stoked on maker dow's end game and frax has been just like doing that end game for like a year now building out they forked a i'm pretty sure they forked a bay if they didn't then they just built a off of a lookalike uh to have their own lending market for uh the the the frack stable coin to build out liquidity

um their own a mm also on fracks and so they just have this defy super structure that was on the layer one and now they are turning it into a chain so this is like all all the cosmos people are watching this happen and be like, ha, ha, ha, ha, ha, we told you. And then all the Ethereum people are like, ha, ha, but it's on Ethereum. And this is what Frax is doing. And so they have this very, like, sophisticated, vertically integrated defy financial suite of products all put together into a single chain. I thought this picture was actually pretty illustrative of what they were doing. I think if you want to scroll down.

And so this is the FRAX centric view of the world. you have the big frax chain, which is an OP stack chain. And so the O.P. Sack chain is the little dot that connects it to Ethereum and all of Ethereum's roll-ups. But since frax chain can have its own interoperability solutions, it also gives its optionality to connect to like Solana or Bitcoin or like Pocod or all the other ones. And so if you are a what they call a fraximalist, a frax maximalist, this is your view of the world. This is how the network topology looks like to you. Yeah, fracks at the center.

Yeah. Really, really cool. Again, like you said, part of the optimism super chain. And I want to bring this to a John Charbano meme, which I thought was hilarious, which is an app launches an app chain. And that app chain gets users, activity, wants more value capture and integration. Therefore, an app chain becomes a general purpose chain for other apps to deploy on. That's where FRAX is going next. And then that app that deploys on FRAX chain grows in success and then wants to be on a general purpose app to optimize for more customizable, sovereignty, and value capture.

And then we start at the very beginning, which is, okay, that new app just launches an app chain. So this is going to be the iterative cycle of apps launching on the app chains, becoming app chains, becoming more general. And this is just how the industry is going to move forward here. Fractals and chains all the way down. Apps than chains and more chains than more chains. David, are you a GoDaddy? Do you ever use GoDaddy for your domains?

Do you have any domains? I don't have any domains. And I've always thought GoDaddy is a weird name. It's pretty, it's kind of cringe. It's kind of like, I think, what's the deal? Yeah, like, why'd you name it that? Yeah. Anyway, they're big domain name service for the internet.

So like, we have some of our domains there. I don't know if you know this, but Banks.com is actually registered on GoDaddy. I'm glad you to take care of this. They have a partnership with ENS now. So they've launched a partnership where you can actually connect your GoDaddy domain name so you're dot com to your dot-eath with ENS. And you can configure this in the back end. I haven't fully figured out how this works

because I've been wanting to get bankless.eath to actually work in the browser and render bankless.com, like connect those two things together. Haven't been able to figure that out yet. I have some configuration required with Cloud Fair, Flair. But the fact that we were getting there,

we are linking our ENS's with our DNSes, I think that is a big step forward for the industry. What does that unlock? Well, we can basically use, you know, potentially you could send me money to RSA.com if I own that. Or I actually have Ryan S. Adams.com. So you could send me money that way. I'm going to do that right now. You're going to do that right now? It won't get to me. I mean, you could do stuff like that. We are connecting our worlds. Ryan S Adams.com is parked free. You are parked. Yeah, it's parked. I don't use it yet.

You thought, what did you expect? You think it was like some kind of, website just like me. It's like, yeah. It's like, hi, I'm Ryan. Hey, I'm Ryan. Just some other side business I have. Welcome to my website. Man, you wish it was that.

So that is the news. Here's what you could do with it. Look at this. Receive crypto with your GoDaddy domain name. I think it's got to start from there. That's got to be like the base. Like, yeah, that's the simple one. You can type.com instead of dot eath.

But it's got to grow from there. Like we're kind of in the same vein of cross-trained contract calls. like dot com referencing stuff on Ethereum using ENS names. Yeah, yeah, yeah, exactly. It's going to grow from there. It's going to be a bigger deal than it sounds like right now, David. Did you see this amendment to the spot ETH ETF from ARC 21, Brian? Do you see what's going on here?

No, what's going on? Okay, so Eric Bautrinus goes, here we go again. Arc 21 shares, same entity, just filed an amendment S1 for their spot ETH, ETF. And this is something that we saw, you know, an increasing frequency approaching the spot Bitcoin ETF approval. This one was a little bit different, though. So if you go to the next tweet, this was a highlighted part of the amendment, which talks about

ETH staking inside of the ETH ETH ETH. I'm going to read a quote here. This is some fine print right here. A super fine print. Yeah. The sponsor may, from time to time, stake a portion of the trust assets through one or more trusted third-party staking providers. The trust would receive certain staking rewards of ether tokens, which may be treated as income

to the trust. staking activity comes with risk of loss of ether tokens, including in the form of slashing penalties. Additionally, bonding and unbonding processes of Ethereum may render the tokens inaccessible for a period of time, resulting in certain liquidity risks that the sponsor will manage. What's all that mean? We're getting a staked eth ETF. Not now. Not this year. Probably not. It's not going to come. It's going to be vanilla out of the gate. They're filing for it. They're filing for it.

We're shooting our shot for the staked eth ETF. First, we're going to get the value. vanilla one, but people are lining up for the staked one, including our 21 shares, which is... You think we'll get the staked one? Well, we will get the staked one in the fullness of time. It's more of a question of like, are we going to get it? Or after Gary? Are we going to get it in 2025 or not? Yeah, yeah. Will Gary allow it or not? It's kind of a question. Okay, got it. Well, that's good news to see that continue to evolve. David, there is a wormhole air drop incoming. That's a massive bridge protocol. One of the most used...

bridges. The ticker will be W. Which is pretty Chad. That's a pretty Chad ticker. No, that's a great ticker. Just one initial. W. Back to Ethereum ETF type stuff. Did you see this? This is in the news. The SEC may be

forced to declare, this is Fortune in Crypto. The SEC may be forced to declare Ethereum security after a controversial new launch. I saw tons of headlines like this this week. So do you remember that company Prometheum which is like... Yeah, with like the Lizard Man CEO. A licensed

security exchange. Okay? And I can't remember this guy's name Kaplan. He was in front of Congress. Last time I saw him, it was in front of Congress, basically simping the Gary Gensler, SEC message that of course Ether is a security. And by the way, Prometheum, the exchange that I founded is going to be a registered, licensed securities exchange. And so his message was, don't tell me those crypto renegades, you lawbreakers, that you can't come in and just register. or with SEC, because of course you can. I have. And he went on the podcast tour talking about ether as a security.

Anyway, the first asset that Prometheum has chosen to list is ether, is ether. Okay, so there are securities exchange with the ether as their first tokenized security. So what do you think that means, David? They're going to go out of business. I don't even know if that was the point. I don't know what this guy's doing. Honestly, there's some speculation. Look, I'm not a conspiracy guy, but it's just very congruent with the SEC's message and, like, government plant.

I don't know. It's exactly what Gary Gensler wants to hear. It's just weird. Can you pull up a picture of this man? Can you, uh, Kaplan? We shouldn't like, just his looks. Do it. Can you do it?

Can you do it? Can you do it? Can you do it? Please it. Right. Have you seen, uh, American Psycho? Oh, no. Are you saying Patrick Bateman vibes here?

Yeah, big time. Big time. That is a lizard man. That is a lizard man. Oh, my God. Well, let's leave it at that then. Okay, here's the good news, though. The good news is apparently it doesn't work like this.

Oh, I'm just shocked. Mike Selleig, crypto lawyer, says the SEC has effectively conceded ethos into security multiple times. I guess they would debate that, but I think they have to. But left ambiguity. Prometheum need only reasonably believe ETH is a crypto asset security to custody it. SEC permitting Prometheum to custody ETH as a security because of this ambiguity won't make ETH a security. So just because Prometheum and Kaplan custody as a security doesn't automatically make ETH a security.

That's not how this whole thing works. So I think the fortune headline is wrong there, David. and we can move on. Yeah, we should move on. This is my response to Mr. Aaron Kaplan. This is, I think, how the industry will respond to him. This is a dog petting a cat. Dogs way bigger.

They're there. They're there. Yeah, that's cute. You're cute, bro. There's a raise this week that Bankless Ventures was an investor in. This is Omega Bitcoin Defi infrastructure raised $6 million with participation from bankless ventures, that's us, borderless capital, fraction, light speed, blockchain,

and a few other angels as well, Yano from Blockworks, G Money, OSF, and then a bunch of other participation as well. What is it? What is it? It is Bitcoin smart contracts, like a multi-sig on Bitcoin. It was basically very simple. You can either move Bitcoin out of these accounts

or you cannot connected to a chain link or other Oracle-type service that connects to trading strategies on Ethereum or any other smart contract platform. So it's kind of like yearn-like accounts on Ethereum connected to an article that goes to Bitcoin. And then the last piece of the puzzle is that institutional capital will give Bitcoin holders on the Bitcoin blockchain a loan with their Bitcoin as collateral. So they don't have to move it off of Bitcoin.

They don't have to move it at all. And then you can get some yield in crypto. You can get some trading activity, some trading capital in the Ethereum D-Gen side of things without having to touch your Bitcoin on the Bitcoin side of things. There's also custodial solutions as well for people who like their Bitcoin in custody. Overall, adding productivity to BTC the asset. So congrats, Omega on the raise. And there's a link in the showness if you want to learn more.

Let's get to the meme in the week, David. What are we looking at? This is a farcaster meme. This is actually a Twitter account that I've been following lately. Bold Leonidas. He just makes comments. And so it's a little frog guy who's looking at his phone talking to Dan Romero's profile picture. and he goes, he's looking at, he's looking at Farcaster, it's implied.

So it's Twitter, but with crypto, and Dan Romero goes, yeah, I guess. And so the little frog guy goes, so it's literally crypto Twitter. Do these ever land? Do these ever land? I, you know, I, do you? He said you don't want to know, do you? All right, and we also got a second meme in the week. It's also a Farcester meme, this time on Farcaster. And this is what everyone's getting excited about.

The top of the iceberg, this is the meme. Farcaster, it's the first non-speculative crypto app. That's the tip of the iceberg that you see. But then once you get on Farcaster, you see the Dgen token, the OG NFT, which is worth like $5,000. Oxen Far Market, Pearl Betts, Bets, BountyCaster, points, daylight notifications, warps will be billions, mint frames, token sign 5. So, yeah, there's actually a bunch of degenerate activity.

Apparently people have collected like tens of thousands of dollars just by being on Farcaster. Yeah. As always, guys, we have disclosures always posted on bankless.com slash disclosures. You can check those out. And I'll end with this. Some risks. Crypto is risky. You could lose what you put in. But we are headed west. This is the frontier. It's not for everyone. But we're glad you're with us on the bankless journey. Thanks a lot.