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

Episode Date: August 20, 2021

3rd Week of August 2021 ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/  🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/  ------ BANKLESS SPONSOR TOOLS: 💰 GEMINI | FIAT & CRYPTO EXCHANGE https://bankless.cc/go-gemini  🔀 BALANCER | EXCHANGE & POOL ASSETS https://bankless.cc/balancer  👻 AAVE | LEND & BORROW ASSETS https://bankless.cc/aave  🦄 UNISWAP | DECENTRALIZED FUNDING http://bankless.cc/uniswap  ------ 📣 PoolTogether | Break up with your Lottery! https://bankless.cc/PoolTogether  ------ 0:00 Intro 1:26 MARKETS 1:36 BTC Price 2:05 ETH Price 2:40 ETH/BTC Ratio 3:38 DeFi Action 7:28 Layer 2 Action https://l2beat.com/  9:55 EIP 1559 is Burning ETH https://ultrasound.money/  12:53 Gas Price Volatility https://twitter.com/takenstheorem/status/1427130936940851201?s=21  16:55 NFT Monthy Volumes https://twitter.com/fintechfrank/status/1427432022109216775?s=21  Opensea vs. Etsy https://twitter.com/xanderatallah/status/1427453596858294272?s=20  21:00 RELEASES 22:00 1inch on Optimism https://www.coindesk.com/defis-1inch-network-launches-on-ethereum-scaling-platform-optimism  24:26 Balancer Metastable Pools & Lido Partnership https://medium.com/balancer-protocol/balancer-launches-metastable-pools-to-further-pool-liquidity-9eade44d73d8  26:54 Bloomberg Galaxy Index https://www.coindesk.com/galaxy-digital-launches-defi-index-tracker-fund  Frank’s Take https://twitter.com/fintechfrank/status/1428348530888871945?s=20  30:18 Metamask EIP1559 Support https://twitter.com/MetaMask/status/1428148268031102976?s=20  30:55 Fintech Collective https://www.theblockcrypto.com/linked/115077/fintech-collective-250-million-fund-defi-strategy  33:57 Jobs https://jobs.banklesshq.com/  34:26 NEWS 34:36 Robinhood Crypto Revenue https://www.coindesk.com/robinhoods-revenue-from-cryptocurrency-trading-jumps-to-41-of-total  37:43 Polygon x Hermez https://www.theblockcrypto.com/post/114479/polygon-hermez-merger-matic-hez-tokens-ethereum-projects  40:03 TikTok x Audius https://twitter.com/decryptmedia/status/1427344374212571151?s=21  41:24 Samczsun Saves the Day https://www.paradigm.xyz/2021/08/two-rights-might-make-a-wrong/  44:58 UNI Treasury Drama https://twitter.com/DuneAnalytics/status/1428250340139356164  52:10 Lido Matic Staking? https://twitter.com/LidoFinance/status/1428315782035955712  53:12 Aave DPI Collateral https://twitter.com/StaniKulechov/status/1427762488934871042  55:11 CryptoPunks Fully Trustless https://twitter.com/larvalabs/status/1428099416326557696?s=20  57:50 Zapper Wallet Avatar https://twitter.com/zapper_fi/status/1428096107708657672  1:02:14 Fractional Penguins https://twitter.com/SlingshotCrypto/status/1426391017545113601?s=20  1:03:28 Bitcoin Fees https://twitter.com/hasufl/status/1427335844130697222?s=20  1:10:11 SEC “Protecting” Citizens https://twitter.com/Immutable/status/1427089741082619909  1:13:12 Gary Gensler on DeFi https://twitter.com/lawmaster/status/1428294597684469762?s=20  1:16:26 Former SEC Chair Joins Fireblocks https://www.theblockcrypto.com/linked/115020/former-sec-chair-clayton-fireblocks-advisory-board  1:18:00 TAKES 1:19:00 Why We Love the Industry https://twitter.com/sassal0x/status/1427805148248608777?s=20  1:20:41 Community Innovation https://twitter.com/StaniKulechov/status/1427256596611088387?s=20  1:22:25 Every Object Is Scarce https://twitter.com/naval/status/1428232383703044096?s=20  1:23:49 Single Issue Voter https://twitter.com/twobitidiot  1:25:55 What David’s Excited About 1:28:53 What Ryan’s Excited About 1:32:55 MEME of the Week https://www.instagram.com/p/CSwc8pjihdL/?utm_medium=copy_link  1:33:39 Closing & Disclaimers ----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures 

Hey guys, happy third week of August. It is time for your weekly roll-ups, the most exciting time of the week. Friday morning, I hope you are ready. David, are you ready to dig into the week that was crypto? Absolutely. Like always, there is always so much news to talk about and unpack. So much drama happened this week. So much happened in the markets. And we are going to go through all of it in the Friday weekly roll-up. Oh, man, I'm excited. David, before we get into it, we should talk about Tracer Dow. There's so much going on in the bankless world, too. David, we had a hot panel about Dow's earlier in the week. The best Dow panel I've ever heard, I think, with our panelists, there's also opportunities for folks listening to Bankless to get involved in Dow's. We've talked about the various Dow's that Bankless is running and other things.

Our friends at Tracer Dow, they're trying to launch a Perpetuals product that's coming out in September, and they are looking for Dow contributors, Dow governors. If you are interested in getting involved in the early stages of a Dow that's building out a new D-5 primitive, you should check that out. There's a link in the show notes. Just click it. It'll take you to the Tracer Dow Discord, and you can figure out how to plug into that project. If you want to get in at the very ground levels of a brand new Dow, which is adding financial tooling onto almost any single ERC20 asset on Ethereum so long as it has a price feed,

Tracer Dow is the Dow for you. So if you want to be sort of a founding member, an early member of Tracer Dow, get involved. All right, David, are you ready to get into the markets? Absolutely. Starting with the Bitcoin price, which started the week at roughly $46,500. Immediately on the Monday or Tuesday of this week, jumped up to $48,000. And then lately has fallen down to $44,500 and then back up to $45,600 where we are right now. So a little bit down on the week with Bitcoin.

down on the week. It was up last week, though, a bit. So we're sort of, I guess, maybe flat on the two-week-ish, something like that. Let's talk about ETH price. More or less, the same story. Started the week at roughly $3,300. It didn't peaked a little bit higher than that early in the week, but has fallen down, has flirted with a sub-3,000 dollar level for Ether a couple times in the last couple days. But right now we have our head right above the $3,000 market, $3,050. $3K and above, I'm feeling okay on the price of ETH. It doesn't feel like anything bad is happening. We'll see where this continues. I guess more crab market season. We're almost at the end of the summer too, David. So I wonder what September will bring. We'll have to see. How about Eith Bitcoin, the ratio? What's that telling us?

Continues to range between that 0.08 and 0.055 level, currently coming in at 0.067. So higher in the middle area of that range, Ether reclaimed 0.07 earlier this week, but is currently below that at the very moment. But it's definitely just a crab season, again, at this higher plateau from the ETH-BTC ratio. What's all-time high for ETH Bitcoin ratio? It's like about 0.14, huh? Yeah. If you look at Coinbase, yeah, 0.14.15.

I think other exchanges have it as high as 0.155. But again, it was just a flash in a pan for a brief moment, right? So the ratio would have to essentially double to be close to all-time high range. And it hasn't done that since 2017, June of 2017. So that would be, I mean, we're coming up on, you know, over three years. So we'll see how that plays out. How about defy? So let's talk about total locked value in defy.

This is going up lately in the 80 billion mark last week, I guess. Now, where are we, David? For the excluding this week, the four weeks prior, total locked value in defy has done really, really well. started at the low of roughly $55 billion and then climbed all the way up to $85 billion. We've traced a, back a little bit, back down to $79 billion locked in DFI, but still has reclaimed some really high territory with total value locked in DFI. Are we flirting with all-time highs here? I think we are.

Pretty close. Pretty close. I mean, we definitely need some asset prices to go up to really reclaim all-time highs, but we are definitely within striking distance. That is for sure. all-time high around $88 billion, and we're pretty close to that. So it wouldn't take much to get to $100 billion, David. Let's talk about defy tokens as measured by the Defy Pulse Index.

How are we looking on the week? Yeah, started the week at around $370, $380, maxed out at $440 in the middle of the week. And now we are back down to roughly $395 per DPI token. So a week of volatility with the DPI, but we're kind of back to where we started, maybe a little bit higher. Let's take a look at this ratio that that reveals whether we are in D5 season or whether we're in East season. And what's this ratio showing this week, David? Yeah, coming in at 0.12955, really annoyingly teasing me with being right below my point one at three number. I will, I will say below.

I know you. I didn't have to say it. I already said it. You want to emphasize that for people. Below. It's definitely NFT season lately, and DFI's, the DFI arena of Ethereum has definitely taken a back seat. But I would like to remind people that when things are quiet, is definitely, in theory, when you would want to be allocating. Because you don't want to allocate into loud things.

You want to allocate into quiet things. So if DFI is being, like, kind of backburnered or forgotten about, and this is the, low mark of DPI versus Eath coming in at 0.1.1.3. Again, I feel really good about my almost bottom call. I think what David's telling you is you don't buy NFTs anymore. Buy some defy tokens, right? NFTs are too hot. Is that what you're saying? Are you saying buy both? NFTs are really, really frothy, but we have also learned that like you can, I thought chain link was, you can always get frothy. I thought chain link was frothy at $2. I thought chain link was frothy at $5. I thought Chainlink was frothy at $10.

And then it got up to $50 and it was really frothy. Like to some degree, like it can get frothy and stay frothy for a really long time. So, you know. To me, David, DFI tokens, at least the good ones are buy and hold for the long run. They fit the classification of Bitcoin and ETH in my book, which brings us actually to the bed index, which is essentially that combination of long-term holes, Bitcoin, a third, ETH a third and DPI a third. What are we looking at on the bankless bed index on the week up or down?

Clocking in at $142. It's a down on the week, but on the month, it's up 2%. And like we say, oh, no, excuse me, it's up 2% on the week. On the month, it is up a fantastic amount, like almost 55% on the month. It started $84 and then it maxed out at $158. And we are coming in at $142. for the bed index. Again, the best index in all of crypto.

That's your buy and hold. Don't even have to worry about anything else you say on the show. David, let's take a look at this. L2B is pretty hot. These are some metrics we're starting to include in the market section because this measures how much value is locked inside of Ethereum layer two. And what we mean by layer two is chains that are completely secured by the Ethereum network and using the economic security of the asset. So this wouldn't include right now,

anyway, Polygon, things like that. But it looks like we're up, up lately. This is the 90 day. Here's the 30 day. Still up on the week. Almost 770 million locked in layer two. That's kind of a good sign. Yeah. And again, this is definitely riding on the back of the DYDX token, which really incentive, incented a lot of activity. And there's also some new players, which I had never even heard of. Nah, me, which is a layer two project that I have, no, I have never heard of that before. All of the TVL, the $143 million TVL is actually their own token, so it's not really the best signal. I would discount that one. I would definitely discount that one. But look at optimism, clocking in at 12% growth on the seven days, breaking $100 million deposited into optimism.

to the optimism team. I bet you, I have a, my gut take is that's probably a lot of uniswap TVL being captured there, but there's definitely room to talk about synthetics as well. But overall, you know, L2 is really starting to gobble up some value. Diversify had a good week too, up 33% on layer two. So we'll continue to monitor that. Of course, optimism hasn't gone fully generally available. So it's just in sort of this limited beta season. Same thing with Arbichum. I can't. can't wait until Arbishop enters the ring. Last I heard, David, they said sometime in August.

Well, look, third week of August, how many more weeks we got? We got one more week, man. We'll see. They're going to fucking, excuse my language, they're going to buzzer beat her. Absolutely. It's going to be the last day of August. Yeah, why not? Anyway, so more layer twos are entering the ring.

I think this is just the start of maybe layer two summer, just sort of expand. We've been saying that one. When does summer end? Yeah, Summer ends when you know, Layer 2nd value. Yeah.

It goes over $5 billion. Let's say it. I'll say that. I don't think we're that far away though, to be honest. All right. Let's talk about this. Burn. Man,

I can't get it. My favorite website on the internet. Right. To be honest. And do you see what they added? Right. This Monday. Yeah.

Yeah. Have you been playing with the merge simulator? I'm yet to press that button and have it not be negative. Oh, I thought you were going to say I'm yet to press that button. I was like, What are you with? How do you not, how do you look at this website?

I wake up and do it. So anyway, for folks I can't see our screen, this is basically a button on ultrasound dot money. You can press it. And basically it simulates as if the merge was here, if proof of work was turned off, as we believe it will be Q1, Q2 next year sometime, 2022, what would ETH issuance be?

And it turns out if you take the burn and you set some parameters, like again, choose your own parameters, but these are some fairly conservative parameters, 20, 20, 20, Gway, 10 million, eth, we'd actually be burning negative 1.1% ETH on an annualized basis. That, my friends, is ultrasound money. That's what we've been talking about the whole time. And that would be the case, given the amount of ETH we are burning these days, at a 1.7 million eth per year burn rate. Pretty impressive.

1.7 million burn rate with a 0.4 million issue rate. So a global net deflation of 1.1%. And then if you are also an individual who is staking eth, you also get your 5 to 8% of new eth on top of that while the global supply is reducing by 1.1%. This has always been my long-term retirement plan ever since I figured out what this whole Ethereum thing is. And so it's real nice. see a plan come together. You're not really ever going to retire, David.

You can keep producing content. I'll talk about it, though. Do you know what? You know what? If someone wants to understand ETH, you know what I think they could just do? It's just go to this website, right? And like every single one of these gauges and dials, if you don't understand what they do, what they mean, what they are, why they're important,

learn about that, read the FAQs. If you understand everything on this website, ultrassound.money, then you understand ETH. You understand why we're saying like 10K, ETH, is like just the start. You understand why we're so bullish on this asset. Come on. I just think the reason ETH is not already 10K or higher, David, is because there's a very limited set of people who actually understand this website.

Yep. Yep. We'll see where it goes. Good job. Ultrasound money, folks. If you can explain ultrasound money, like the amount of edge you have over just the universe is pretty insane. Edge over the universe.

All those aliens out there speculating on their alien. The best asset in the whole entire universe. Yeah, not galaxy, universe. David stopped short of the multiverse, so being conservative there. All right. Gas price estimated from 100,000 blocks. It's because there's ether in other multiverses, by the way. Okay, thanks for adding that.

I'm sure if people are curious. Less volatility. Now that we have EIP 1559, what? Explain that to me. Right. So EIP 1559, in addition to all the things that it does, one of the things that it does is it helps gas price estimation. And the moment that EIP 1559 got included into Ethereum,

we were actually able to see that with on-chain data. And so what we're looking at is we are looking at gas prices to get included into a block. And on the left, before we have EIP, 1-559, the ranges for estimated gas prices would range from anywhere between, like, at the lowest, 2 to 5,000, way, up to the highest, which is 1,200 guay. And then as soon as EIP-159 got introduced, all the gas price floor got elevated to about 20 gway gas, and then a significant amount of the gas price ceiling got chopped off and got somewhere between, you know, 80 to 100 gway. There's definitely some spikes up to, up to the, on the upside.

but like everything has gotten condensed into a much more narrow band of gas price inclusion. And it's very important to note that this is before a significant amount of EIP-1559 type transactions are even happening on Ethereum. We're only at like 20 or 30 percent now, aren't we? Yeah, Metamask just finally rolled out EIP-1559 support. And so I expect a significant number of transactions to now be of the EIP-159 type. but the data that we are seeing here is before that. And so as we approach like 100% of transaction EIP 1559 transactions,

this band is going to get even narrower and narrower. That's good. Less choppy, good. This is good UX, right? Less volatility. That means like you're paying 20 Guay for gas right now. And an hour later, you're paying 25 quay, something like that. Rather than what we have seen in the past is like super choppy.

suddenly it's in the hundreds. Although I will say there still are these spikes upward, David. In fact, you like screenshot it, this crazy spike upward. I don't think I've ever seen like if we, pre-EIP 1559, if I saw gas price exceeding 2,000 guay, I'd be like, oh, red alert, crisis, what's happening? You know, CDPs are being liquidated. Oh my God. Exit all markets. Yeah. Crypto's dead. Well, so this is actually just a nature of what's going on in Ethereum at this present moment. And so I took a, I happened to take a screenshot at this moment. This NFT drop happened. It was, I hadn't even heard of the NFT drop. It all, it sold out in under like five minutes or like, I think, I think it's something as small as like 15 blocks or something.

And so there was an insane amount of demand and congestion in a very acute amount of time. And if you remember our EIP-1559 podcast with Hazu, he was talking about how the, how block size can increase at 12.5% per block. So if if they block becomes completely saturated, base fee goes up by 12.5%. And what he was talking about with that is that that 12.5% can compound really, really quickly. So in the space of just a few blocks, gas fees went from like, you know, 50 up to 2,500 because that 12.5% compounds really, really quickly. And so while we do have volatility dampeners in block gas fee inclusion, you can still get these spikes if there is all of a sudden an insane amount of demand for some reason really, really quickly. And so like NFT drops are a very concentrated

amount of demand. And you see the flexibility in the base fee by the EIP-155-9 metric taking taking shape here. So you still do see these spikes, but they settle down faster. They settle down fast, right? Look at the volatility difference. It's just like we still get the spikes, but we get some settlement a little bit quicker. David, let's talk. You said an NFT drop, man. NFTs, it's NFT season. NFTs are hot.

Look at this. NFT monthly volumes in January, 2021. They were 17 million, okay? Respectable. Look, 17 million. We would have been pleased with that in January. And I think we were. NFT monthly volumes in August 2021,

848 million. The month is not over yet. The month is not over yet. The month is not over yet. yet. Okay. This is going to exceed a billion. Like, wow, that's crazy. That's 848 million on the 19th, or excuse me, the 16th of August. So just one day over halfway through the month, we are like doing a 3x on like the previous month's volume. And so like, where are we going? That wasn't even including the drop that we were just talking about just now, right? Or all the other drops.

The volume on NFTs is absolutely insane. And that's kind of why I was saying earlier, that NFTs do feel kind of frothy. But also what I was saying in the market Monday this morning is just like NFTs are such a simple concept to think about if you don't think about it. It's like, oh, humanity just trades pictures now. Like, oh, okay, I guess we do this. And so it's such an easy subject to get behind if you don't think about it. And I think a lot of large portion of the world is just not going to think about it.

And they're just going to go on to open sea and they're going to see a picture. And they're going to see a price tag. And then they're just going to hit by. Yeah. It's, like, technology just makes weird things normal. That's what happens, right? Like, it's like the, you know, getting in a stranger's car, right? Using an app on your phone.

That's freaking, right. That's shit crazy. Right. Like, how crazy would that be in the 90s? No, don't talk to strangers. Don't go in somebody else's car. You don't know. No, don't pay $100,000 for a JPEG.

Yeah, don't. But now it's normal. Right. That's the thing. NFTs. Let's talk about OpenC, because that's a huge NFT story. Here's the headline. though, David, is OpenC has now recently passed Etsy.

Etsy in volume. 100 billion so far in August. One billion in August. One billion. Sorry, not 100 billion. That might be next August. One billion in August, bigger than Etsy. NFTs are rapidly catching up to all of eBay.

Wow, Web 3, starting to challenge Web 2 incumbents. People didn't see this coming, how fast that, like, this is happening. OpenC is sort of like the eBay 4. for NFTs. And man, a billion in one month. It's insane. And it's in the comparisons to real life companies like Etsy and eBay are really, really nice to kind of get an anchor point. But we also have to remind ourselves that like the reason why it's so easy for OpenC to get so much volume is because like they don't have any inventory. People on Etsy have to ship things. The last thing I bought on Etsy were like these massive table legs that came from

Europe and cost me $150 in shipping and it took two weeks. OpenC is just transferring a digital asset from one Ethereum address to another. So it's natural that these things can scale way further. And so while OpenC is like finally competing in volume with like these legacy kind of like akin platforms, I actually expect OpenC to be like many, many orders of magnitude larger than these things just by the nature of the ease of trading digital assets. I think people see this as scent. and many people outside of the industry, like, will dismiss it as a bubble, as they always have with

crypto. And maybe it is. Maybe it is. But like the bubble will come back. The bubble comes back, right? It's like a real bubble is something that doesn't come back. Like, everything's tulips. I mean, tulips never came back.

They had like the, you know, their pop and then. That's financial assets. Yeah, right. Exactly. There was never another tulip bubble. But NFTs, crypto assets just keep coming back. So even if this is a short term bubble, like NFTs are here to stay. it's pretty impressive. All right, man, that's it for markets.

Guys, we will be right back talking about releases, talking about the news, talking about the hot takes for the week, getting to the meme of the week, which I know you're waiting for, but before we do, we want to thank the sponsors that made this possible. Living a bankless life requires taking control of your own private keys, not your keys, not your crypto. That's why so many in the bankless nation already have their ledger hardware wallets, which makes proper private key management a breeze. But the ledger ecosystem is more than just a secure hardware wallet. Ledger is the combination of the Ledger

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that you are getting the best prices on your trades without your assets ever leaving your control. Defi never stops growing, and the Ledger Live app grows alongside with it. So click the link in the show notes to see all the defy apps that Ledger Live has. And stay tuned as more and more apps come online. And if you don't have a Ledger hardware wallet, what are you even waiting for? Go to Ledger.com, grab your ledger, download Ledger Live,

and get all of your D-Apps all in one place. Bankless is proud to be supported by Uniswap. Uniswap is a new paradigm in asset exchange infrastructure. Instead of a cumbersome order book system where trades are matched with other humans, Uniswap is an autonomous piece of software on Ethereum, which is what Ryan and I call a money robot. No human counterparties or centralized intermediaries, just autonomous code on Ethereum. Input the token you want to sell and receive the token you want to buy. Something brand new in the Uniswap ecosystem is the Uniswap Grants program is now accepting applications for grants.

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And help steer Uniswap in the direction that you think it should go. That's exactly what we did to get Uniswap to be a sponsor for bankless, and you can do the same for your project. Thank you, Uniswap, for sponsoring bankless. All right, guys, we are back with the releases. Let's start here. David, Defi's one inch. That's the one inch aggregator across centralized exchanges, gives you some great pricing on assets. They just launched on optimism. So we're getting sort of the defy money Lego primitives. Now we're getting the aggregators that sit on top of them on layer two. Pretty cool. Absolutely. And the interesting thing is that I'm sure one inch is also going to deploy itself on

other L2s. And so we're going to have the same aggregating teams with aggregators on different L2s. I want the listener to question, ask themselves, what happens next when aggregators are on different L2s? I have an answer to this. Tell me. Well, we need an aggregator across all of the L2s, don't we? An aggregator, aggregator, aggregator. Yeah. We need a layer two aggregator. I wonder if they'll get into that space. I know there's a lot of, it requires a bit of different technology, right? It requires some things that like connects

and Hot Protocol are doing with state channels, this sort of thing, but we're going to end up there. I wonder what one inch plan, what their plans are for this. Yeah, but it's definitely coming,

that's for sure. Let's talk about this. Balancer launches two things, metastable pools, number one, and the second, they launched a partnership with Lido,

Lido, like Fido, on a metastable pool incentive program. Okay, break this down for us. What is Balancer up to? Right. Okay, so two separate announcements in the same post. So we're going to cover them both. This first is their meta-stable pools, which is basically a basket of various yield-bearing dollar instruments. And interestingly, yield-bearing in different routes. So some dollars are in like curve generating dollar fees by being in the LP. Other dollars, dollar tokens are like C-dye out of, out of

of Coinbase. And so these are things that are all generally about a dollar, but they're all yield-bearing. And so now they're in a new product from Balancer, which is a new dollar-stable token. What they say is that new USD stable are just a set of nested other stable coins, die, USC, USDT. And this is not only offering a new dollar stable coin, which is getting yield, but there's also offering even deeper liquidity on these stable coins in the first place. So that's the first announcement. Composability, we get all of the things. This is the beauty of money Legos.

Now we've got a new, I guess, stable coin that is composed of other stable coins through balancer, through the magic of balancer. So what else do they do in David? Yeah, so their partnership with Lido is trying to bring liquidity to staked ether, which is the whole point of Lido. Lido is a staking as a service Dow. And so you can deposit your ether and get staked ether back. and then a balancer has opened up an ether to staked ether pool so that if you just want to

stake your ether and don't want to be like burdened by the by just going into lido and staking it yourself you can just go to balancer and swap your ether for a staked ether and then boom all of a sudden you have staked ether and so the liquidity in that pool is getting bootstrapped as we speak and there are some lido rewards for people who provide liquidity that's super cool But a tax event, though, maybe, depending on your jurisdiction. Yeah, probably. So, FYI on that guys, got to figure that out. I don't know if the IRS can even figure that out.

They have no idea. Absolutely. Yeah, they're just going to tell us to fix it, and we're going to be like, yeah, what do we do? Just do your best, guys. All right, let's talk about this. I think this is big, actually, David. Galaxy Digital launched a defy index tracker with who? With Bloomberg.

Hmm? Bloomberg, the other, the other be-named media company, David. It's not bankless. It's Bloomberg. Pretty big deal, though. Bankberg. Yeah. Pretty big deal, though.

Bankberg. That's a terrible joke. Whatever. We're leaving it in. We're not cutting this, guys. Pretty big deal because I think everything that Bloomberg stamps, you know, their approval on with Galaxy has to pass some regulatory bar. And I think you included this, David.

This is what it's composed of. And you compared Bloomberg with Bitwise. which provides another index to a credit investor still, but like very regulated index, Bitwise is doing. There's a lot of similarities, but there are some differences. What would you point out here? Yeah, go ahead and click on that just so it blows up a little bit. The big thing I've noticed is that Bitwise's index has a lot less of uniswap dominance.

It has 32% uniswap, whereas the Bloomberg Galaxy index has 40%. To some degree, the 40% inside of one index is like that's such a high number for an index that has so many different tokens in it. And like I get, it's probably a market cap weighted index. But like that lower uniswap dominance in Bitwise is a little bit attractive to me. Bitwise has 2% more Ave allocation, 1% more MKR allocation. The other tokens that they have that they share in there have generally a matched allocation. But the other thing that differentiates Bitwise from Bloomberg and Galaxy is that they have

Wren, Curve, and ZeroX and Bankor in there. Wait, who does? Bitwise does? Bitwise has those tokens in their index. Bloomberg has UMA and SNX in their index, which Bitwise doesn't have. I'm wondering if there is a securities conversation to be had about this. S&X is a token that, or maybe not securities, but synthetic assets, right? So synthetics makes synthetic assets, and synthetic assets are generally much more regulated by the CFTC. So it would be interesting to hear why Bloomberg and Galaxy included SNX and why Bitwise didn't. My hunch is it's the synthetic asset thing.

Hard to know. Somewhat arbitrary. This is why I prefer DPI to both, right? Like, you don't even have to worry about these things. But I think the good news here is, hey, this is a much better index than, do you remember that terrible index that Goldman put together a few weeks ago? We talked about in the roll-up. Like, it's like...

I don't even have words. to express how terrible it was. Had Facebook in its DeFi index. Then have a single ERC 20 token. Like how stupid. It's like defy companies. This is much better. And it's Bloomberg and you know, it's getting out there. And this is this is good for the asset class and good for the space. This was Frank's take that this is a big stamp of approval for defy by the data giant Bloomberg. Yeah. The next tweet is what? Yeah. He says essentially these tokens all meet Bloomberg's standards of institutional trading and custody readiness in the United States, as well as quality of pricing, which is just saying that defy is mature enough for institutional allocation.

Well, I feel much better about defy now. I don't know about you, David, but this stamp of approval is what I was waiting for. Hey, if Frank said it, I'm on board. Thank you, Bloomberg. David, let's talk about this. Metamask. We alluded to it. We were talking markets, but they are now supporting the rollout of EIP 1559. So they've been adding it to their wallet, but it's been sort of a phased rollout, I believe, and now it's, I guess, fully available. I've not yet sent a transaction,

but there's a link in the show notes on how to send a EIP 1559 transaction in Metamask. Looks like it's pretty easy, and he takes here. Nothing just to go get your learn on and check out Metamask and see if anything's changed. Yeah. should be good. FinTech getting into crypto. So this is on the raised side. FinTech Collective, they just closed a $250 million fund dedicated not to like crypto in general, dedicated to defy. But I think it's interesting about this. I don't know a lot about FinTech Collective, other than they're a venture capital firm, but they're involved in FinTech, right, and digital assets.

This seems to me, David, to be like the next frontier for FinTech. And, And investors are starting to come around to that. They've made tons of money in fintech over the last decade. And now they're shifting this to digital assets. There's going to be, as we've always said, a defy mullet, a marriage between the two. You're going to have fintech, you have crypto, and investments going to, like, you know, push towards both of these things. I think the banks are going to be left out in the cold as a result of this. But we're starting to see the capital flow, traditional fintech investors, start getting into defy.

That's kind of cool. This is just investing in the defy mullet. So the defy mullet is getting a little bit more mullet tier. I think we could combine the-more hair. A little bit more hair. Yeah, I think we could combine the words defyntech into D-Fintech. And so this is what they are investing in into, they are investing into D-Fintech. Wow.

Did you just come up with that? Yeah, I just came up with that. Dude, that's why we have you on the show. Is that going to stick? D-Fintech. Defintech. I don't know. D-Fi-Tek.

D-Tek. I don't know. You guys tell us. There's such a ready marriage between these things that, like, Defy is FinTech. It is financial technology. And that technology is, you know, blockchain is smart contracts, is Ethereum. So like, it's a natural inclusion into a fintech stack. Yeah.

To be honest, what's super cool is like, what we've always said is like FinTech is just lipstick on a pig. And the pig is the banking system, right? That's what we've been doing in the last 10, 15 years, putting, reapplying lipstick. on that ugly pig. What's cool about crypto is like it's not no longer a pig. I mean, something much more beautiful to put lipstick on. It's a unicorn. It's a beautiful unicorn.

Beautiful unicorn. And you get to put lipstick on. It's not even lipstick. It's just part of the unicorn. And so I am, this is why we are way more excited about crypto. It is bottom up, free design of the money system rather than just just another layer on that ugly old pig. They didn't have too many details as to where this money was going.

But they did call out the Ethereum DeFi ecosystem specifically, which is nice to see because when we see people like coming into the space, I definitely get skeptical as like, okay, they're investing in DeFi. Are they investing into DeFi on Bitcoin? Is that what they're doing? Are they making that mistake? Or is it real defy? And from the few comments that they have in this article, it sounds like they are investing in

real defy. So that is $200 million will be going into investments into early stage companies. and then 50 million will be actually allocated towards a defy fund, which is probably like buying defy tokens. There you go. And now it's time, guys, for us to give our weekly invitation for you to go get a job in crypto. Please do. Have you checked out the bankless jobs board lately?

Got some hot stuff on there. Senior product manager at Immutable over NFTs. That'd be an awesome job. A full stack engineer at Palet as well. There's a ton of other job opportunities. Go check that out on the bankless job board. you'll see a link in the show notes. Don't get stuck in the legacy world.

The whole point about this whole entire movement is we're leaving that behind. If you are not coming with us, then we're leaving you behind too. Yeah, come with us. It's great. We want you on board. All right, man. Let's get to the news. The first is this, Robin Hood.

Remember Robin Hood, GME fiasco. Some people still use it. Revenue from Robin Hood from their cryptocurrency alone, jumped to 41% of their total revenue. Like Robin Hood's a big company, just IPOed. 41% of their revenue coming from crypto blows me away. Think about how many crypto assets that Robin Hood has on this platform. It's only a handful.

And honestly, not even the good ones. And so like it's the- You want to buy some Ethereum classic, David? Right. Which is categorized inside the Ethereum family inside of Robin Hood. So despite how terrible Robin Hood is as a crypto asset like trading platform, 41% of its total revenue is coming from crypto, which there's a number of takeaways to be had. The people that are using Robin Hood are increasingly becoming crypto people, so they're getting

more and more exposure to crypto, more and more inclined to buy crypto assets. Think of all the traditional assets that you could buy on Robin Hood, like all a bajillion of them, and yet they prefer crypto assets. And we know that Robin Hood is a terrible trading platform for crypto. It needs to make some significant improvements. and maybe finally having so much revenue coming from the crypto side, maybe they actually more intentfully go down the crypto rabbit hole and improve their goddamn crypto product offering, which they need to.

This is my take. It's like, I mean, we could lambast them for, you know, how terrible it is. You don't have the ability to withdraw unless they've changed that. You can't even withdraw your crypto assets, right? So like, good luck getting into anything defy. But actually, what I think this will do is exactly what you said, is it would catalyze them to redouble their efforts. and invest in real crypto infrastructure, add those features that users want.

And this is just going to be another onboarding into, like, crypto-native platforms. So, like, you start with Robin Hood and then where do you go? I actually wonder, I mean, most of the people, I think, in the bankless journey, started with the crypto exchange, like Coinbase and Gemini. At least those are the stories I've heard. Have you actually heard of anyone coming through and becoming more crypto-native through Robin Hood, getting their start there? Yeah, there are people I know who buy and sell crypto.

on Robin Hood, they don't have like the, the commitment to being like a defy person or a crypto person or a bankless person yet. But they do invest in crypto via Robin Hood. They just like that price exposure. Yeah. I mean, it's just where all the, they're like their ether and Bitcoin and Doge coin holdings are right next to their AMC and GME holdings, right? So yeah, it's, it's, it's mean stuff. Anyway, it's cool. It's good. If anyone from Robin Hood, who works at Robin Hood is listening to this, let Robin Hood know that Ryan and I will straight up give you all the free advice that you need

in order to make the best crypto product offering. We will interview you. Let's get the CEO of Robin Hood on bankless. We will talk about what you guys could do to capture the crypto market. Go take it away from Coinbase. We will double your revenue. I promise.

Well, that's a bankless promise, sir. The Dow promises that, not us. Blame the Dow. All right. Sorry, Bankless Dow. Ethereum stuff, this is cool. On the end, the beginning of layer two summer, we've got Polygon, which has a side chain.

They've always committed to you and promised to building a true layer two in the future. They just purchased Hermes. My understanding of Hermes, David, is they are, you talk to them at ECC. They are like a layer two solution that is building a ZK EVM. So a ZK roll-up,

which is kind of a different class of roll-ups, something that Vitalik thing, is incredibly promising. Others in the ecosystem do as well. I think what they're doing is they're doing like a talent acquisition, technology acquisition, so that they can get a layer two to market that much faster and just add that to the Polygon ecosystem and toolkit.

So this is like an accelerant for them to do that. Polygons got the users. Hermes has the tech. You combine those things together and you've got something good. I think that's the play here, but it seems pretty interesting. What's your take? I think you summarized it fantastically.

Hermes has kind of been, struggling to onboard users and market cap and total value locked and applications. Whereas Polygon has been doing absolutely fantastically in that arena. Meanwhile, Polygon has been lagging behind in actually becoming a true layer two, whereas Hermes is absolutely fantastic in that arena. And as you've said, people are generally bullish long term on ZK rollups as a technology, mainly because of the power of ZK, the power of the assurances that ZK Relops provides.

And so people kind of think that the long-term conclusion of layer twos on Ethereum are going to be of the ZK flavor. And so Polygon is fixing it's not being a layer two issue. And Hermes, it's fixing it's not getting sufficient adoption issue. And so we're taking the best of both worlds and we're putting it into one scaling project. What's interesting here about these like crypto-NATO, of mergers and acquisitions,

as there's always a token component involved as well. So there was a Hermes token, and I believe that's going to be, you're going to be able to redeem that for the Matic tokens in the future. So they're not only purchasing technology in this acquisition, but they are also becoming more economically aligned,

which is super interesting. David, let's talk about this. I think this is big. Hey, I know you're a big TikTok fan. I know you're on there all the time. You try and pull me off of TikTok all the time. I know. TikTok, though, pretty big deal.

They are partnering with Audius. And Audius has a token on Ethereum. They're also using the Solana blockchain to bring sort of a decentralized, open music streaming service to the market. What have you read about this partnership? It's one of those things where the TikTok is a fantastic music sharing service. and there might be issues with TikTok and like sharing music that has some sort of like nation state copyright issues on it.

And that's exactly what Audius is really good at circumventing. It's a decentralized audio storage system and sharing system. And so this is a nice little marriage between these two projects. The other cool thing to think about is like all of these like social media platforms are tapping into Ethereum one way or another. audience is one. Reddit is another one. And there's another one that I'm missing that I can't think of the name of right now. But like big social media platforms are starting to tap into Ethereum in different ways. Yeah, they're growing at their own Web 3 Mullet, maybe. Maybe that's what they're doing, social media companies. David, let's talk about this. Well, while we're sleeping, Sam's

easy son saved a defy yet again. No one knew he was doing it, but he published his results afterwards. Can you talk about this story? Yeah, absolutely. The best thing about Sam's easy son is that he saves all of our bags from getting rug pulled. But then he also is a fantastic writer and tells us in great narration and great detail how he actually did it. So like the technical details on this went over my head.

Sam is as a prolific coder. And if you- Also pseudo-anonymous. Also pseudo-anonymous. And so he explained what he, you know, his takeaways from this. And basically his big takeaway is that, The protocol that he saved was Sushi Swap. And Sushi Swap recently came out with their brand new MISO platform.

And on Sushi Swap are a bunch of different products, which in silo work perfectly and are perfectly secure. But when you put them all onto the same product offering on and you start to connect these contracts, you start to accidentally create bugs. And so while these things work perfectly and are perfectly secure in isolation, when you de-isolate these things, you actually create new bugs. And so that's what happened with sushi swap. There was over $350 million that anyone could just grab for themselves. Sam saw it first.

And so he pulled the sushi swap team into a zoo meeting. They had their war room. They had their plan. And I think over the space of, I can't remember how many hours, but like under 12 hours, I think they had identified the problem, come up with a plan, and then saved all of the funds. The other big takeaway about this story, read the article because it's just a great story. It's a great, like, sci-fi story about Ethereum. Like I said, Sam writes really, really well.

The other thing to take away from is that, like, Paradine is a massive investor into Uniswap, which is Sushi Swap's direct competitor. And Joseph DeLong at Sushi Swap. And overall, Sushi Swap and Uniswap have had, like, a less than awesome relationship. Sushi forked their code in the beginning, right? Right. And then there's just been, like, jabs being thrown at each other on Twitter. But as soon as users' funds became at stake, all differences were set aside, and they all got into the same Zoom meeting and jabs were no longer thrown.

And they focused on saving $350 million of user funds. And so, again, a scary story of, like, perhaps a near-death experience from Sushi Swap. This would have significantly harmed Sushi Swap for a very long time. This would have left a very bad scar. But it didn't happen because Sam C-Sy-San is. is a good guy and really smart. Absolutely. Super talented.

I'm glad he's a white hat rather than a black hat and like, you know, pulling these funds for his own purposes because somebody maybe almost as smart as Sam's CZ's son might be out there, might come along and might take, take, do these sorts of things except exploit them and try to escape. I mean, we've seen some of that activity too. It's another reminder. Look, this is the Wild West, right? Like, when you deposit funds inside of a defy contract, especially something that is brand new,

something bad could happen. Right. Right. Now, what's happened so often, maybe lowless and some complacency is a lot of these defy protocols have then restored the funds, right? They've sold some of the treasury. They've found some way to essentially provide self-insurance. But these things can still happen and you never know.

But glad we have Sam out there watching over us. David, do you want to get into this story? This is a uniswap governance tale, I guess. What we're reading here is a tweet. It's a PSA from Dune Analytics about a uniswop governance proposal that would let another analytics firm, Flipside Crypto, manage up to 25 million in Unitokens, manage, not take them all, but manage them,

and use the yield to fund their own operations. And the story, as of now, is it's a governance proposal that's about to pass, doesn't have very much community attention. And so there's been a lot of pushback from the community who feels like this was sort of snuck in Treasury bill style, infrastructure bill style by the Treasury, like under the radar. And suddenly, crypto, Twitter is in a frenzy about it. This is DC investor. The growing precedent of using the unitoken treasury for large cash grabs, use that term,

large cash grabs to support pet causes, often benefiting narrow groups. groups is bad. It's very bad, he says, and he casts his vote. No. What's your take on this story? Yeah, since Dune Analytics and others have signaled about this vote, the vote has flipped to being voted no, I believe. Oh, if that is a real-time update, oh, we are neck and neck at 47.6 million unitokens four and 46.9 million unit tokens against. For the conversations I've had lately, it actually sounds like this conversation is much more nuanced than just a cash grab by a team who thinks that they can provide some amount of value to Uniswap. That is the problem with having a $3 billion treasury.

It actually might be higher at this point. It's like, we have $3 billion. You kind of run out of ideas to spend it on. And so then people will be like, well, you can spend it on me. And I'll take $25 million and I'll contribute a little bit of value. So that might be an accurate take. the other take to have is that like governance in defy is weird and very raw and not really very raw very polished right and so this governance proposal you you kind of classified this thing as

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

where, you know, they voted themselves a bunch of money, it got accepted, and they dumped it. So there's a little bit of drama there. So people are cognizant of this theme of this uni treasury becoming just like, you know, a slush fund for various different projects. I don't think it's that bad. But there definitely overall needs to be a better conversation as to like what is appropriate to send money towards and what does U-Swop governance really want. I think a lot of this falls down to like a process issues, right? It always seems like these things, suddenly it's a fire alarm. Right.

Right. And like, I don't think that the flipside crypto team, like, snuck this in either, even though that's what people feel like. But they feel that way because they didn't notice it until now. So these are some of the problems with token voting that need to be sorted out. Like, is there a better process than just suddenly this made massive decision? You have 24 hours to vote. People see it on chain.

Like, where were the guys? governors before this of the Uniswap protocol, did they already give input into the process? So I really think DAOs and token teams, token vote teams are going to have to learn from what's happened in the legacy space and the traditional space and how governance decisions like these are made so that we can put better processes in place and everyone is informed along the way or else we'll keep having these types of problems. And it will feel like it will feel, like it will feel shady even in cases when it's not because the process has been ill-defined. The other thing is, David, like, what's the incentive if you're a un-swap token holder, right? Like, I have mutual funds

with some stocks, like, very little because, you know, who needs stocks, right? But, like, I don't attend the proxy, like, the votes. I don't, I mean, those stocks- You don't vote on governance on your on your boomer funds? I don't. Right? And, like, there, you know, there are proxies for this. there are delegates for this, but like, I don't have time to get into the minutia of major shareholder votes. What we're seeing is some scalability limitations to, like, governors can't be involved in every single decision either. So we have to find ways around that. Anyway, all we'll say is it's all very immature at this stage. There's a lot more that needs to be done on de-governance. In fact, Vitalik wrote a great post about that earlier this week. I think we'll figure this stuff out as

we go. So in the, as this story has progressed, when I first checked it, I saw that the four votes were larger than the against votes. And then people like Dune Analytics and D.C. investor called into action and signaled their intent to vote against. And then the against votes beat out the four votes. But now we are seeing the four votes beat the against votes by a slim margin. And I'm on the flip side crypto Twitter page. And they are retweeting people who are signaling, who just now signaling their intent to vote for the flip side allocation of uni tokens and then also their analysis. Corbin page, a few other accounts, the Stanford Blockchain Club. So this is perhaps it's contentious, but it's not like this is all one-sided, and there

are actually a decent amount of people supporting the foreside. And the point I want to make is that, like, and I've always thought this was true about governance, and we saw this with MKR governance way back when, is that non-contentious proposals get not very many votes and then they kind of just like sail right through with like you know a decent amount of yes votes but like overall not very much participation like non-contentious votes get little participation as soon as something becomes contentious that's when you see people come out of like the cracks and actually start to allocate their funds to a vote and then all of a sudden we get more and more participation but like the unfortunate thing is and why this model so bad is that

it only happens at the last hour. And so emotions get hot. Everything happens all at once. People don't have time to like discuss and deliberate. And so we need to fix that problem. Really, this is the crux of the issue is that on contentious votes, everything gets decided like in the last like six hours of the vote. Yeah.

Fire alarm voting is what we're doing with some of these things. All right, David, let's talk about this. A proposal that's been shared on Lido governance to actually, have Lido start to, I believe, collaborate with Polygon and provide a staking service for Madic tokens. What's going on here? Right. And so Lido is the DAO that is solving the liquid staking a staked ether problem. And so you can stake your ether with Lido. But it's, as a Dow, it could just be a generalized proof of stake staking as a service DAO. And so why not Matic? It's a proof of stake side chain. Let's stake Matic tokens. And let's allow for non-cosodial staking of Matic.

Being a Maddick validator is a lot more hardware intensive than a Ethereum staking. And so it's nice to just consolidate that into a fewer hands. And this makes it a lot easier to become a Madic staker because of Lido. So this is kind of the bull case for Lido is that anything that's proof of stake can be staked under the Lido-Dal. Lots of things can be staked, I think, too, and will be in the future. David, let's talk about this. This is a tweet from Stani from the Avi Project. There's a proposal to list DPI, list that index inside of the AVE protocol.

Stani lists some pros and some cons here. But what's going on with DPI in AVE? Yeah, DPI has had kind of a slow rollout with becoming collateral, which is kind of a bummer because I would love to use DPI as collateral. It's an index, which generally means that, like, you don't have single token risk. The big restrictor behind why DPI hasn't become collateral is because of what Stonni is highlighting here at the very end. It's got a multi-sig signer,

mintor, but restricted by the consent of index co-ops and set labs. And so there's like a centralization risk. And so because index co-op has some admin controls over what and how DPI behaves, that is a risk that lending applications like AVE or compound have previously not been willing to take. But it sounds like Avey is starting to like dip its toes into being okay with a DPI index token becoming collateral. I think also there's a decent ball in the index co-op and set labs court to fix this centralization risk. I don't know if it's even fixable, but I think that there's definitely some improvements that could be made. But overall, stoked to see index co-op

tokens being added as collateral, that is a really big step forward for the co-op. Stani, do bed next. Look, it's a, it's a bullcase for index co-op. And I think set tokens, as well, right? Compare those to the indices we're talking about from Bloomberg and Galaxy and even Bitwise earlier. Can you do that with your Bitwise index? I mean, love Bitwise, but it's not crypto-native. It's not in ERC20, so it's much more limited. That's why the Defy Rails is so much better for anything that you're purchasing in crypto. It's just so much more flexible. I think it's going to improve at a far faster rate. David, let's switch to NFTs for a minute. Let's talk about our friends.

the cryptopunks, they're now fully on chain, the images, their attributes, they're now stored in a contract, fully on chain? What does that mean, David? Yeah, so this is a good learning moment for people who are still just getting into NFTs. The image is not stored on Ethereum. So that image of the NFT that you own is stored on a web two database somewhere. There are a few NFTs where this is not true. Autoglyphs, that is their big, like, claim to flame for autoglyphs, that all of these. data for the image of Autoglyphs is stored on Ethereum itself. But punks have, you know, becomes so decently valuable that it actually becomes really just

logical to actually take all of the punk images and actually put them on Ethereum. So no longer are you requiring whatever server that Larva Labs is using to store your punk images. Now the punk images are being stored on Ethereum, which really elevates punks to a new level that are, because they are now fully trustless. They used to, like, almost all NFTs are trusted assets in the sense that you need that server to be online, so you can actually look at your NFT. Otherwise, it's just a token.

I think this is a big problem for decentralized data storage that could really, they could really solve that by having more trustless storage of images. But since punks are so valuable, they just, you know, decide to spend the gas to put all punks on the actual blockchain. So as a- Wait, do you mean like the punks as like the JPEG itself is on Ethereum Davis? Yes. Yes. Like that's not possible with a lot of art because it's too large.

Like is it because punks are decently small? 24 by 24 pixels. I think that's a very large part of this. Yeah. Okay. There's not that much data. That's super cool for I think Cryptopunks as well. It's kind of a bull case that it's so tiny that it can be fully encapsulated on the

Ethereum chain, which is the most secure place to put it. But other NFTs can, they can. can be put in other decentralized file storage locations, IPFS, you know, file coin type locations, R weave, that sort of thing. But this is not that. This is fully on chain. Directly on Ethereum. Yeah, right. So like, you know, bigger images or GIFs, even that you can't fit that inside of a single Ethereum block. So like you're not putting your GIF on Ethereum. You would have to put it on something like Filecoin, take that hash of the file that's on Filecoin, and append that to the NFT.

And that's how you can get some sort of like trustlessness in your NFT's image. Super cool. All right, let's talk about this. Zapper is allowing wallet avatar customization. So now on Zapper, you can actually display your Cryptopunk if you own one of those or your board ape or your penguin. What's going on here? People might notice in Metamask when you make a new wallet or make any wallet,

you get like this like random generative icon that kind of identifies your wallet. But people are really into NFTs. And NFTs are kind of, some of them are like these, also these generative property icons like Cryptopunks, like penguins, like cool cats. And so Zappa is just allowing you to associate your wallet with an NFT.

And while, well, this is like a fun kind of like UI upgrade. It makes Zappa a little bit more fun, a little bit more interactive. I think this really indicates an early, tremor of a growing world of some sort of connection between social media and NFTs. I think that is what we are really seeing here. I totally agree with that. But, you know, it's one take I've heard from

people asking me about this recently is, hey, like a year and a half ago, two years ago, it was, it was always about what can I do to like keep my eth address private? Like, I don't want anybody to know that I own this thing. And they said, and suddenly the advent of NFTs, it's like, no one cares about that anymore. It's always like, you know, your NFT is in your eth address. And so you're fully identifying your eth address with your NFT. And you're kind of like, you know, flashing that around. Is that a value that we've lost or does it matter?

What's your take on that? Stay tuned for the Wednesday issue of the bankless newsletter where I talk about the serialization of Anon's on Ethereum. Yeah, no, this is an awesome. By the way, guys, I did not tee David up for that. We haven't talked about the Wednesday article he's writing. No, no. Ryan just teed out for a very, very important topic, right?

And so I can take some time and kind of tease it if you want. Yeah, if you want to. Just a quick tease. Quick tease. So I read this book called Seeing Like a State, and it's a book that kind of illustrates what it's like to have the perspective of a nation state. Nation states like things ordered. They give you a Social Security number.

They give you an address. You, your business has a tax ID number. Your car has a license plate number and a VIN number. Every, you know, street has a name. Nation states like things ordered. So they can know where you are and then they can tax you. And then the book all goes all the way into like, you know, like crops. They like crops very monolithic and ordered like every six inches apart.

And then if you really want to take this to the logical conclusion of a totalitarian state, you see something like the matrix where like you have like, fields of humans just being like sucked all of their energy dry that you ask for a brief brief anecdote so i'll skip that part but nfts are a serial number on ethereum that are unique that have certain properties identifiable properties on them and so while you can choose your own nfti you are kind of becoming serialized as your identity on ethereum because nfts are unique nfts are not like erc20 tokens and so like you can trace an nfti around the blockchain in a ways that ERC20 tokens can't be traced.

And so we are, while you said, you know, we all want to have our private wallets, our private funds and all of our private monies, that is still possible. But I think everyone is going to have a public address where they keep all their NFTs, because if you ever want to share your NFT, if I share my crypto punk,

people can find that Cryptopunk token and then associate my wallet with it. And so people are going to have their public persona identities on Ethereum, which are probably going to be their NFT wallets, and then they're going to have their ERC20 wallets, which is going to be their private wallets, probably. But the cool thing about Ethereum is you actually get to identify yourself as you see fit, right? Like, do you want to be a crypto punk today,

or do you want to be a Pudgyy Penguin today? You get to choose. Unlike the nation state, which just tells you an eight-digit number, you actually get to choose what your Ethereum serialization is. Yeah, that's kind of a cool take. And I guess if you want to sort of bifurate things and have something public and something pseudo-anonymous, of course, you can with Ethereum.

You just have to be careful, right? You can't intermix things and trade one wallet with the other. You have to be careful about that. That's cool, David, looking forward to that article, man. Let's talk about this. Pengu Alert. So penguins are now trading fractional penguins, at least on Slingshot.

That is a decentralized exchange. I think they are in Polygon, if I'm recalling correctly. But now we've got fractional penguins, fractional NFTs. What's the story here? Yeah. So we had Andy 8052 on to talk all about fractional on the AMA. And so all fractional is is taking an NFT, an ERC-721 token, putting it into a contract with some spiffy cool logic, and then outputting a bunch of ERC20 tokens, which makes these things liquid.

And now Slinghot is allowing, it has enabled trading on a penguin, kind of as a proof of concept. But now this one specific penguin is now liquid. It's on, like you said, it's on Polygon. And this is kind of the story of the financialization. of NFTs. You can put an NFT into a wrapper and then turn it into a more equipped financial asset that gets all the perks that ERC20 tokens do on Ethereum. And so this is the growing story of the financialization of NFTs, starting with Penguins, which are super cute and that I love. Very cool, guys. Stay tuned for that story. Dial into that story of fractionalizing NFTs. I think

it's going to be a major theme in the future of that NFT market. Let's talk Bitcoin. David, This is a tweet from Hasu. He said, since people have once again been telling me that Bitcoin fees have only ever gone up over time, here's an update on the actual data. This is a statement about the security budget. Remember, security budget equals market cap divided by minor revenue. And these are the charts that he's showing. This is basically transaction fees in the red line, block subsidy in the blue shaded area.

Together, those form the security budget of Bidcoin. Bitcoin. This is denominated in Bitcoin, I think, in this first chart. And you could see it's going down over time, denominated in Bitcoin, as you would expect. Because, of course, every four years we get a happening. This is that same chart, I believe, in fees only. And you could see it's interesting how it's sort of how it spikes and then it goes down. It's unpredictable as far as like, you know, when the fees are going to come. So 27, early 2018 spiked all the way up. It's been down recently. David, what do you think Hasu is saying with these two graphs? Yeah, the first thing that he's saying is like he has, he's saying that a bunch of Bitcoiners are telling him that BTC fees on a US dollar basis has only gone up, which is a little bit true, but it's also very much not really true.

And Bitcoiners tried to pull this same BS about how Ether has only ever gone down in BTC terms, but they're using a frame of reference of that 2017, 2018 spike where the Bitcoin blockchain actually got super congested. And they're doing the same things when they compare how Ether has never gone up versus Bitcoin because they use a frame of reference from 2016 to 2017, but not going all the way back to the very beginning. Over the long term, Bitcoin dollar fees have kind of stayed flat and not, which is a not very high level, except for the anomaly in 2017 and 2018 during the mania, when there wasn't defy on Ethereum and there wasn't scaling solutions, BTC blockchain was actually one of the ways that exchanges transacted value between each other.

And so it actually got congested and fees got really high for that one brief moment. Ever since then, Bitcoin security has entirely been dependent on issuance, on BTC issuance. And so while we talk about how Bitcoin has a hard cap, it's still under a paradigm where issuance is securing it. and it is yet to break free from issuance-based security. It had one moment in time where fees on Bitcoin actually represented a meaningful amount of security. And even then, it was only one quarter of the total amount of issuance. And so Hauser was really just illustrating how non-mature Bitcoin is as a secure blockchain

because it's still dependent on its like pre-mature, pre-pele like, pre-peer, pubescent phase of being dependent on like its parents to take care of it. The metaphor being like block rewards and block subsidies and BTC issuance is what's securing Bitcoin. Yeah. You know, my takeaway here is like the whole, it's unsustainable. Right. It's like and it's, it's also unnecessary.

Right. So like I, um, I very much feel like Bitcoiners, Bitcoin Max must refuse to see this. So Hasi would consider himself a bit coiner and he's pointing this out. so like, well-doing Hatsu, but they refuse to see that the security budget of Bitcoin is not sustainable. At least it's not enough to be the world's most valuable blockchain by market cap. They're going to have to adjust the protocol in some way. We've been saying this for a while. And now I feel like David, on the back of like ultrasound money, we've talked to Justin Drake about this in the back of EIP 1559, the crypto industry is really inventing better ways to secure its network,

more efficient ways to secure its network. So I don't know, man. I just, this makes me very bearish, actually about Bitcoin. I'm generally bullish on Bitcoin as an asset. I think it's got some properties that other chains don't. I think it has an incredible meme following. But if the Bitcoin community doesn't wake up and realize that security budget is actually shrinking and that there are better economic policies that are coming to market that are

going to out-compete them, they're just not going to make it, David. Like, they're not going to make it. So I hope they do. I hope they do figure this out. But transaction fees, in my mind, it's like everything we talked about with Justin Drake. I mean, they're too unpredictable, unvolatile. It's a grade B fuel, not a good fuel to power the economic security of your blockchain and block subsidies are running out. It's not going to be a problem overnight. I'm going to be a problem next year or the year after. But like, we're playing for the long term, five years, 10 years, 20 years, I don't think you can make a sound money on just transaction fees if that's your economic security model.

Plus, there's an even greater conversation to be had about like the nature of what Bitcoin is trying to optimize for and how it gets security, right? And so, Hazu follows up that tweet by saying, like, why look at the security budget and not other metrics? As a result, the budget allocated to mining should probably scale with Bitcoin's size to create the same attack disincentive. 50 million in minor revenue may be enough for Bitcoin when Bitcoin is $1 billion, but maybe not when it's $100 billion or $10 billion.

What he's saying is that like, say Bitcoin 10x is to, what would that, like, $450, half a million dollars per coin. This is what Bitcoiners all think are happening. Just because Bitcoin 10x doesn't mean fees, 10x, because Bitcoin can go up in price, but that doesn't mean any more transactional capacity is going to happen on chain. And so this is kind of why I think a defy smart contract layer on your blockchain, which puts block space demand at first and foremost a priority for the blockchain is how you achieve sustainability.

And that's what Ethereumist does. You need to prioritize fees because the more fees you get means the less you have to issue. Ultimately, the purpose of a blockchain is to sell blocks. It's kind of what you're doing. and then you could feed that back into your economic policy. It's the one thing you have. That is the Ethereum way of thinking. But anyway, we'll see how it goes.

Hasu ends it with this. Don't want to over-dramatize anything. The problem is a decade-plus way. But the facts are the facts. I would echo that. Facts are the facts. Not going to be a problem tomorrow. But face up to it someday.

They'll have to. Okay, immutable. Last, let's talk regulatory. I think this is a conversation about regulatory. and Immutable had talked about air dropping some IMX rewards to its supporters, but now they've had to sort of rescind and change that due to regulatory uncertainty. They can no longer drop their IMX tokens to those of you who are American citizens, sadly. Now, good of them.

I think they're going to replace that with ETH, I believe, rather than IMX. So thank you, Immutable. Really cool. But what's happening, man? I thought the SEC was here to protect us. Are they just protecting us from gains? Are they protecting us from air drops? They protecting us from buying low and like selling high?

Because I don't understand what they're protecting us from when they're coming down on crypto and Americans can't get these air drops, liquidity mining, all of these things that we are precluded from. It's like America, North Korea and Iran. These are the countries that don't get the air drops. What? Like, the crypto industry has a fantastic power of just, like, stripping away, like, obfuscation and BS from a topic. And so if we are asking, we have to ask ourselves, like, why are we not getting these airdrops? Because the ethos of air drops and started off by the Uniswap AirDrop and, you know, other things as well,

is that we need to put capital the things that govern over these systems into the hands of the people, which is the most like populist bottom up pro consumer thing that I can think of. Like let's put power into the hands of the people. And remember, capital is power. Governance equals capital equals power. And as a result of the United States regulations, immutable is not giving its users power over the system, right? And so the, by stripping away.

What's really important here, David, is like, You said the word giving. This is a free gift. Right. I'm not talking about selling to anybody. There's no commitments. They can't even give the free gift to you. Continue.

Sorry. And why this is happening is because of regulations, which are largely imposed upon the world, because incumbents lobbied for those regulations in government to protect incumbents. If we, if they really, we just set up rules about how, like, individuals can't receive, like, capital or equity in stuff. then whoever already has all the capital and equity and stuff gets to keep more of it. And so to me, this is just illustrating how incumbents are like not even allowing an entirely new financial world, which is a separate from the nation state.

We have to actually still follow these like incumbent protecting rules. It wouldn't leave a bad taste in my mouth if honestly they just said, hey, we're just trying to protect the system we have and that like the incumbents that we have. But they do it under the guise of investor protection, David. that's what pisses me off. Let's talk about Gary Gensler's comments on defy. I'll read this quote. He's the SEC chair right now.

Projects that reward participants with valuable digital tokens or similar incentives could cross a line into activity that should be regulated, no matter how, quote, unquote, decentralized they say they are. I don't want to take this one quote in, like, I think we have to take this quote in context, which is like Gary Gensler seems to be hinting about, defy an awful lot. Seems to be concerned about

defy in his statements, in his recent speeches. And he actually talked about trying to enforce this, maybe going after devs and founders. He said there's still a core group of folks that are not only writing the software like the open source software,

but they often have governance and fees, Mr. Gensler said. There's some incentive structure for these promoters and sponsors in the middle of this. This, again, is regulators trying to find out who these centralized actors are and put the existing apparatus security securities exchange apparatus for them too.

It's like, here's the thing, David. It's like there is going to be such a thing as constructive regulation for this industry and for D5. Like, we want the SEC to go after the scams. Like, please do. There are some obvious scams in crypto. Like, you know what they are. please go after them.

Please protect investors that way. Do not try to protect investors by hampering this industry. The developers are just going to move outside of the U.S. You're just going to hurt Americans and American consumers and American investors. So, again, we're not seeing action yet, but like this kind of tone coming from the SEC chair, I don't know. I'm not a fan. I don't like it. The SEC and regulators at large need to have a moment of reflection.

as to what their original purposes and why the rules that they are enforcing became rules in the first place. And if the thing that concerns me the most is that they are not in touch with their own roots. They are saying like, okay, we have these rules from like 30 years ago. Let's enforce them all the time. Not realizing that the reason why the rules came in the first place were to protect investors from bad things, not to just enforce the rules. As soon as the reality of the world changes and the rules are enforcing the rules actually hurts investors and you are not drawing the connection between those two things about how you will, the rules, by enforcing the rules, you're actually harming people. Like, you need to have a moment of reflection as to what you're actually doing

on the face of this earth. I do think Gary Gensler maybe thinks that additional legislation is required. So I'm not convinced that he thinks he has the power to do much in this space. And I'm hopeful that's going to be his take because the people should have a voice. in some sort of legislation. This, again, is, I feel like it's a theme for the week, past two weeks, David, is crypto flexing its political muscle because at some point in time, new regulation is going to be created, new legislation is going to be created. We want our voice on this, so America doesn't fall behind.

By the way, David, like coming off of what we just said, I find this kind of funny, the former SEC chair, remember Jay Clayton? He just joined Fireblocks, their advisory board. So Fireblocks is the company we interviewed Michael, their CEO, earlier this week. Their entire mission is to bring institutions to defy. Now, Jay Clayton, well, Gary Gensler is talking about defy and possibly ways to crack down. Jay Clayton is joining the advisory board of a defy company. This makes me laugh.

I don't know. I don't know what's going on. I mean, like, to some degree, I'm kind of down for the revolving door to work in our favor. If that's what's going on, like, sure. I have to. Do it. Let's do it. Yep, let's do it.

All right. Well, maybe Jerry and Jay will meet and talk about these things. Okay, David, we should get to the takes. But before we do, we need to thank the sponsors that made this episode possible. When you shop for plane tickets, you probably use kayak, Expedia, or Google to compare ticket prices. So why would you limit yourself to just one exchange when you trade crypto? When you make your trades, you want to make sure that you're getting the best possible price on your trade and that you aren't paying high gas costs that you could have otherwise avoided.

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so you may want to pack your bags in preparation for the Great Migration to the Arbitrum Layer 2. To keep up to speed with Arbitrum, follow them on Twitter at Arbitrum and join their Discord. All right, guys, it's time for takes from the week. David, let's start with this from Anthony Sassano. The irony of paradigm saving sushi swap is why I love this industry. What's he talking about?

Yeah, like we talked about earlier, the paradigm team, which in theory is a little bit antagonistic at the very least to sushi swap, also saved sushi swap. So when the time comes down to it, we always protect the individuals in this industry as well as we can, and we put differences aside. And overall, the collaborative nature and the quickness of the teams putting their heads together and coming up with the plan, regardless of the different teams that they're on, saved $350 million of people's funds. So pretty cool story.

And also just great entertainment, too. Yeah, it's super fascinating, but we're all in this together as bottom line. I think that's why Anthony's saying. Okay, Stani said this. Well-designed, a Web3 protocol does not solve every single thing. Instead, it leaves room for the community to invent and build the rest of the features. So Stani advocating for an open landscape rather than constraints. What do you think this means?

The nature of this industry is bottom up, right? So what Stani is saying is that Web3 protocols, whether we built like decentralized social medias or whatever we do in Web 3, which is very nebulously defined, it needs to be built in a minimally viable way that the rest of the features just gets built out by the community in a bottom up fashion. community knows what it wants rather than any top-down web two company knows what thinks its community wants. And this goes back to what we're talking about with regulation and user power.

Stani is saying is do the minimum viable infrastructure to give the community on top of your infrastructure as much power as possible so they can build the things that they want. That's why we give out capital and governance and power to the users of these protocols so that they are maximally aligned with the people that actually. use these things. And so when Stani says, who's an engineer, that we should engineer these things in ways that leaves room for the community to invent and build the rest of the features, he's really talking about user empowerment, individual empowerment. I can't wait for the SEC to come and regulate this. You know, this is the inside of Ethereum, though. It's basically the entire

insight was basically let's take the idea of digital scarcity that Bitcoin provided and let's make a general purpose so anyone can build on top of it. Censorship resistant. General purpose. purpose and let's see what we get. And I think that's a notion that is deeply embedded inside of Ethereum itself. Let's talk about this. Naval said, in the physical world, every object is scarce. In the digital world, every object is abundant. In a digital world made of NFTs, every object is scarce again.

Full circle. Go back to scarcity. Why? What's you talking about? If we want to all live in the metaverse, again, whatever the metaverse means, we need digital objects with digital object permanence. We need things in the metaverse to replicate how we expect these things to also exist in the real life. In the real life, like I have a MacBook.

It's the same as all other MacBooks, but it's my specific MacBook, right? Like it looks and feels like mine. Same with all the other objects that I own. There's only one of them. And so if we want the Metaverse to behave like the real world, which we do, we need NFTs to make every object scarce again. We do, and also it has to. You've seen Ready Player 1, right? I remember thinking when I was watching it.

Oh, okay, none of this would be possible, not without VR tech, but without cryptocurrency. None of this would be possible without digital scarcity because you can't have an economy unless you have some idea, some notion of digital scarcity that is outside of the centralized game makers control, the Metaverse control. Well, I guess if you do, you have somewhat of a dystopia metaverse. Facebook benefits. None of us want. Yeah.

And it's not real, not real. Okay. Let's talk about this. Single issue voters. David, are you a single issue voter? I am now. I'm seeing this in Ryan Selkis's profile, right? I'm seeing this in other crypto folks profile.

But what does it mean? Does that mean like you will not support any politician with your votes, with your money, unless they are pro-crypto, five out of five on the crypto scale? Yeah. I mean, I can't really think of anything. I care more about in life other than the industry that I work in. Like, not only is it all of my savings, but it's where I work and it's where all my friends work.

And so if I want to do what is in my own best interest, I'm basically a single issue voter for crypto. And I think this is a new page for the crypto industry as we all kind of ask ourselves, like, what are we willing to give up? And how much do we really want to like center around crypto? And I think there's a very large cohort of. people who kind of only give a fuck about crypto. Sorry about my language. And that that cohort of people really cares about crypto and is also really, really well capitalized. And so we have the means

to get what we want out of nation state regulation. We have the money to put behind it. And we can actually finally fund the values that we want to see in nation states. Yeah, I agree. And values is the key there. So it's not just like you got bags in crypto and you've got friends in crypto and you're in the industry, but it's also like, crypto values are my values, like inherently. And I think that I feel very strongly. I'll talk about this a little bit later, but our need for a digital bill of rights, digital freedoms in the 21st century, right? And I think crypto is fundamental to that. If we don't have it, we'll end up in a dystopia that none of us want to live in. It's kind of like, think about your kids. Think about your grandkids.

What kind of life do you want them to grow up in? What kind of society? Do you want them to grow up and do you want to live in a totalitarian digital nation state? Or do we want crypto? Do we have to fight for it? We have to fight for it in these early stages. I agree with that. It's a good take. David, tell me what you're excited about, man.

I am excited about a new podcast coming out on Tuesday. So it's going to fit into the regular bankless programming. We have the Monday podcast, as we all know. And then we have the Tuesday State of the Nation, but that's only on the YouTube. That audio for that doesn't go out onto the podcast. podcast until Wednesday, which means on the podcast, we have an open Tuesday. And we're finally... You can't have an open Tuesday.

Yeah, we can't have that. We have to put another show out. What are you doing on Tuesday? Yeah. And so, Tuesday is Layer Zero Day, which is a brand new podcast out of the Bankless ecosystem. Here is the graphic that I have for it. We actually are not doing Vitalik on Tuesday.

This is just the mock graphic. We are yet to finalize that. But shout out to the two members of the Design Guild at Bankless Dow for designing this, who actually, the first episode coming out on. on Tuesday is with Dimitri Buteran, which technically is actually, if we're all layer zero, Demetri Buteran is layer negative one because he's the actual father of Vital. He's also layer zero too, though. It's really in the ecosystem. But yes, I love it. So layer zero is a podcast focusing on all of the people that make up this ecosystem,

not about the projects, not about their funds, not about what they're working on, but what they care about when they log off their computer. Like what do they think about, where do their values come from, what, their story. And so the lines I've been using to kind of explain layer zero is like, I want to ask Justin Drake about like his trip to math camp or I want to ask Hayden Adams about like his first heartbreak. And then maybe even how did that come to impact what he built with ultrasound money or with uniswap. Maybe we do connect those things. I'm always fascinated about the ways that the human DNA connects to the code that they write and therefore how it impacts the people that

use that code. There's a very awesome connection between those two things. And we are going to unpack those things on the Layer Zero podcast. First episode coming to a bankless podcast near you on Tuesday. I'm super excited about this. And guys, I'll just say to the listeners, I have no idea where David finds the time to do all this and energy. Like, we already produced so many podcasts. When we told me about this, I was like, so are you doing this? Or do you do my help? David's like, no, I got this. So I'm really excited to listen to this. man, and David Hoffman, once again proving he is the Joe Rogan of crypto with these in-depth interviews and conversations. Thanks for adding to the ecosystem.

I'm interviewing Eric tomorrow, so he will be episode number two, Eric Connor, Eric Connor. Ah, there you go. And then Justin Drake comes in on episode number three. So I will be asking him, what did Justin Drake do at Mathcamp? Are you going to ask, one day I hope you interviewed me on it. Would you do that? I'm not sure. I'm not sure you're ready for that. That'd be weird. That'd be too weird. One day. I'll hope. I'll put my name in that someday.

I'll add you to the list. Do you want my take for the week? I do want your take for the week. It's real quick. Yeah, what are you excited about? You know, I've been, what I'm excited about, sorry, yes. I feel like there has been lately, I've been reading this news about, you know, Apple, basically releasing software updates.

They could scan all of your photos, and they're doing it for the kids, too, right? It's obviously a child pornography thing that is very terrible. It sounds very terrible. But they are sacrificing our freedom in our digital liberties and our privacy in order to do that. Apple having the ability to scan any photo. It starts in one small area. Where does it end?

We don't know once we give them this access, once we remove the barriers of encryption. It's gotten me kind of down, David. I feel like this is an all-out assault on our digital freedom and privacy. and it's not going to end. Now the big companies, remember Apple, billboards, we protect your privacy. We care about privacy.

Google doesn't, but Apple does. Yeah, right. They're all selling us out. So what do we do about this? It's depressing. Well, I think the wealth created by crypto per earlier conversation is our greatest hope to fight this

and combat this. And so as we think about crypto versus a social movement, now it's getting a little bit more political. First, we can fight for crypto. cryptocurrency, our industry, then we can broaden that fight to fight for digital rights more generally. I think it's time for crypto to get more politically active. That's what the last two weeks have taught me that we can do this.

We have a coordination point. We have a shared set of values. We can be single-issue voters. We have the capital. Let's take the fight to D.C. Let's play their game. Because if we don't, who's going to? No one else cares about digital rights the way the crypto industry does and has the resources.

is to do it. So that's actually what I'm excited about is our ability to make a broader impact. Like I care a lot about long-term things, David. Like I care a lot about the protocols we set up now and the future generations that, you know, are going to live with the decisions we make with the protocols we put in place. The whole world, their world's going to be digital. Like our kids, they're going to live in a completely digital world. Are we going to give them a digital constitution for that world? Are we going to give them a bill of rights? We're going to let them be screwed over by big governments and corporations. Nah, I don't think so, right? Like, that's why we're doing crypto. That's why I, I'm not really a political person, actually,

if you can believe that. But, yeah, you kind of have to be. If we're standing still, if we're not vigilant, it's just going to continue to erode until we have nothing left for future generations. Anyway, I'm excited about that. Crypto can have a big impact here. I think that's exactly right. And that's something I think everyone should reflect on. this movement got started in the 70s and the 80s with the cypherpunks and everything that we've done in crypto has been downstream of the cypherpunks and the cypherpunks had very explicit values cypherpunks write code cypherpunks value privacy cypherpunks understand that cryptography makes social systems and i think the power of crypto economics which is cryptography plus money right now we finally have the economic resources to actually put behind the cypherpunk values so like you said earlier This is not just us protecting our bags or not just us protecting our investments. It is a little bit of that.

But it's also about us fighting for the things that this industry stands for. And this industry stands for a lot of things. And they're generally all surrounding individual freedoms, individual autonomy, and individual rights. And I think that we can finally have a lot of these, a lot of the struggles that the cyphal punks have was, A, there was too few of them and they had no money. In the crypto community, there's a lot of us. and we all have a lot of money. So I want to see what the crypto community can do

when it focuses its money into cypherpunk values because now, because of the power of Ethereum, because of the power of crypto, we can all be cypherpunks and we all have the means to fight for ourselves. Well said, plus one on that. David, meme of the week? Give me the week.

Your subjects. Let's do it. All right. The meme of the week, this has got to be from Wolf of Wall Street, is it? Uh, got to be. Maybe. Maybe. Okay. It's Leo, right?

It's Leo, right, yeah. Okay. So describe it for our listeners. Two panels, Leo, very intently leaning into somebody who's sitting in a chair, holding up a pen and says, sell me this pen. And the person grabs a pen, turns back to Leo and says, it's an NFT. I'm buying it. I don't care.

As somebody who blindly bought some cheap NFTs last night for no reason and no due diligence, I can completely align with it. You are the guy? I'm the guy. It's an NFT. It's an NFTs. It's all it takes you the thing. Love it. All right, guys. That has been the weekly roll-up. Hope you enjoyed it. As always,

none of this was financial advice. Defy is risky. So is ETH. So is all of crypto. You could lose what you put in, but we are headed west. This is the frontier. It's not for everyone. But we're glad you're with us on the bankless journey. Thanks a lot. Hey, we hope you enjoyed the video. If you did, head over to Bankless HQ right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence. We recommend joining our daily newsletter, podcast, and community as a bankless premium subscriber to get the most out of your bankless experience. You'll get access to our market analysis, our alpha leaks, and exclusive content, and even the bankless token for airdrops,

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