ROLLUP: 3AC Further Contagion | dYdX Leaves Ethereum | Huge Uniswap Acquisition

4th Friday of June, 2022 ------ 📣 NOTIONAL | Real DeFi Yield https://bankless.cc/Notional ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ ------ BANKLESS SPONSOR TOOLS: ⚖️ ARBITRUM | SCALED ETHEREUM https://bankless.cc/Arbitrum ❎ ACROSS | BRIDGE TO LAYER 2 https://bankless.cc/Across 🏦 ROCKET POOL | STAKE YOUR ETH https://bankless.cc/RocketPool 👻 AAVE V3 | LEND & BORROW CRYPTO https://bankless.cc/aave ⚡️ LIDO | LIQUID ETH STAKING https://bankless.cc/lido 🔐 LEDGER | NANO S PLUS WALLET https://bankless.cc/Ledger ------ Topics Covered: 0:00 Intro 1:25 Markets 1:30 BTC Price 2:20 ETH Price 3:45 ETH BTC Ratio 4:40 Crypto Market Cap ETH Gas Markets https://dune.xyz/hildobby/Gas 6:00 BTC Fell https://twitter.com/DocumentingBTC/status/1538191897977569281 7:00 GPU Markets getting flooded! https://twitter.com/hms1193/status/1539172196983230464 11:33 Voyager https://twitter.com/tier10k/status/1539578302289117185 https://twitter.com/investvoyager/status/1537919249594732544 18:30 BlockFi Raise Troubles https://twitter.com/fintechfrank/status/1537869616499896320 https://twitter.com/BlockFiZac/status/1539216594383028224 https://twitter.com/fintechfrank/status/1537869616499896320 3AC Contagion Backstopped by FTX 19:57 dYdX V4 on Cosmos https://dydx.exchange/blog/dydx-chain 26:20 Tweets from Antonio https://twitter.com/AntonioMJuliano/status/1462455087826030597 https://twitter.com/AntonioMJuliano/status/1462455083719823363 28:16 Polynya Take https://twitter.com/epolynya/thread/1539615550271156225 32:30 Uniswap Acquires Genie! https://twitter.com/Uniswap/status/1539306956002820096 https://uniswap.org/blog/genie 34:14 ICYMI https://youtu.be/9fqJzS08pPc 36:20 NEWS 36:47 Arbitrum Odyssey Campaign https://twitter.com/arbitrum/thread/1537942315871793154 https://twitter.com/arbitrum/status/1537942325577428993 40:05 William Peaster Article https://newsletter.banklesshq.com/p/arbitrum-odyssey-begins- 40:23 DeFi Down Bad Controversial Solend proposal https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4 https://twitter.com/FatManTerra/thread/1538448035885240321 44:45 Bancor Pulled the Plug on IL Protection https://blog.bancor.network/market-conditions-update-june-19-2022-e5b857b39336?gi=b4ee96b34923 46:01 Spicy Hasu Take ​​https://twitter.com/hasufl/thread/1538774433359441920 49:49 Merge Watch https://twitter.com/nethermindeth/status/1538830020491333635 51:00 New Lido Validators https://twitter.com/LidoFinance/status/1539322089794043904 51:45 Swell Testnet https://twitter.com/swellnetworkio/status/1539506486199480320 54:33 NFTs 54:34 Cryptopunks! Christie’s Web3 Expert Leaves Auction House to Run CryptoPunks for Yuga Labs https://www.coindesk.com/business/2022/06/19/christies-web3-expert-leaves-auction-house-to-run-cryptopunks-for-yuga-labs/ https://twitter.com/NonFungibleNoah/thread/1538584141419143168 https://twitter.com/nansen_intern/status/1538602437510152196 57:16 Pharrell as Chief Brand Officer of Doodles https://decrypt.co/103503/doodles-nfts-announces-pharrell-as-chief-brand-officer-fundraise-led-by-alexis-ohanian 57:35 TIME Sandbox Partnership https://twitter.com/CryptoGucci/status/1539360336620437504 1:00:20 MISC 1:01:00 Elon Musk accused of Dogecoin Ponzi https://www.theblock.co/post/152538/tesla-ceo-elon-musk-accused-of-dogecoin-ponzi-scheme-in-new-class-action-lawsuit https://twitter.com/RyanSAdams/status/1537513636071100417 1:02:10 Jobs https://pallet.xyz/list/bankless/jobs 1:04:10 RELEASES 1:04:13 Immutable X $500m Developer & Venture Fund https://twitter.com/Immutable/status/1537768342739890176 1:05:00 Tether releases British Pound Stablecoin https://www.theblock.co/post/153447/tether-british-pound-stablecoin-gbpt 1:06:30 RAISES 1:06:33 Ex-Sushi CTO Raises $8M for NFT Lending Platform Astaria https://www.coindesk.com/business/2022/06/20/ex-sushi-cto-raises-8m-for-nft-lending-platform-astaria/ 1:08:28 Magic Eden raises $130M https://techcrunch.com/2022/06/21/magic-eden-raises-130m-hitting-unicorn-status-at-1-6b-valuation/ 1:11:15 Community Questions https://twitter.com/WEBthe3rd/status/1539668101390045184 1:16:00 TAKES 1:16:01 Digital Tattoos https://twitter.com/Smooch_Axie/status/1537536182309081095 1:17:49 DeFi Legos vs CeFi Dominoes https://twitter.com/AnnaRRose/status/1537809640607649795 1:18:40 Coinbase Dicking Around https://twitter.com/pythianism/status/1537474024351051776 1:20:49 What Anthony’s Bullish On https://thedailygwei.substack.com/ https://www.youtube.com/c/TheDailyGwei/videos 1:23:00 What David’s Bullish On https://twitter.com/BanklessHQ/status/1539663872331620352 1:24:10 MEME of the Week https://twitter.com/CryptoKaleo/status/1537574446998949888 ----- Not financial or tax advice. https://newsletter.banklesshq.com/p/bankless-disclosures

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:02David Hoffman?

  Bankless Nation, it is Friday morning. You know what time it is. It's a Friday morning Bankless Weekly rollup. A little bit different this week because Ryan, the AI, powered down for the moment. He and his other AI kids and AI wife are all at the beach. And so we're bringing in the substitute teacher, Anthony Zizano. Anthony, welcome to the show, man.

• 0:20Speaker 01

  Hey, man. Great to be here. Great to be the substitute teacher. We all know the substitute teacher is always the one that you have the most fun with, right?

• 0:26David Hoffman?

  That's exactly right. Yeah, we always love to change the pace. So yeah, we all know what's gonna happen next. It's the end of the week, Friday Weekly Rollup. It's the third week of June. So you gotta drink. Go grab your morning coffee because we are going to recap the entire week in crypto, which is always an ambitious endeavor, yet we persevere nonetheless. Some big things happened this week in the world. We got further Three Arrows Capital contagion to talk about. The cancer spread a little bit further than what we originally thought last week, so we're gonna cover all of that. Also, DYDX spins up DYDX chain on Cosmos, leaving Ethereum going for the Cosmos chain. So we're gonna talk about that. And Uniswap acquires an NFT aggregator? So we're gonna talk about that as well. You know what to do. Gotta like and subscribe. If you're watching this on the YouTube, hit

• 1:11David Hoffman?

  that subscribe button. If you're watching this on the podcast, go give us those five-star reviews because the ETH price and the five-star review number are highly correlated. So if you want that bull market to come back, you need those five-star reviews. Anthony, ready to get into the markets?

• 1:25Speaker 01

  Let's get into it.

• 1:26David Hoffman?

  Starting with Bitcoin, of course, coming in at $20,500. A little bit flat on the week, I'd say, maybe a slight down. Anthony, how are you feeling about overall in the market and Bitcoin price?

• 1:38Speaker 01

  I don't know. Like, the markets are in a funny place, I think. They've done things over the past, I think, few weeks that people never thought they would do, right? Like BTC and ETH both going under their old all-time highs. ETH did it first, then BTC caught up after it. And we've kind of like bounced back. ETH is still not back above its old all-time high, but Bitcoin is back above that 20K. And I think it's kind of like no man's land right now. People are like, oh, did we actually bottom at that 800s there for ETH? Or are we going lower? And I think people are just scared to bid right now because of that, right? They just don't want to get caught buying something that's gonna go down even more. But we don't know, right? It's just very, very hard to tell right now, I think.

• 2:19David Hoffman?

  Yeah, certainly Ether coming in at $1,100 right now, which is about 24% below its previous all-time high, which is kind of a big oof, I'd say. Uh, that I don't really think we've seen that in prior market cycles. Usually the previous all-time high is it, the crypto prices stay well above that. Um, so that that is uncharted territory.

• 2:39Speaker 01

  Look, I think we didn't go as high as people thought that we were going to go on the way up, right? And I think that because of that, we came down. Percentage wise, Ether's down what 80%, which is obviously less than last bear market, which is 94%. And last bear market, uh, BTC went down 85%. So I think because we went up less, we've just come down like similar amount. But because of that, uh, it means that we've kind of like gone below that old all-time high, which once that broke, it was kind of like, well, you know, where's the support now sort of thing? So, yeah, I mean, that's just brutal looking at 2018 right now, like 94% down.

• 3:15David Hoffman?

  So crazy to see.

• 3:18David Hoffman?

  Oh my gosh, okay, not from 2017, it went down 94%. Oopsies, uh, but then it went up in total from the bottom. Oh, a casual 5,500% to the very, very pico top. And then from that 5,000% up, we are down another 75%. So, you know, like three, three steps forward, one step backward, 5,000% up, 75% down. These are normal, normal shenanigans, I guess, if you zoom out in the crypto world. Uh, quick comment on the ETH BTC ratio. Uh, the new, new number is about point 054. Uh, we did get to a low number of just below point 05, but it looks like, uh, the ETH BTC ratio is defending the point 5 number, point 05 number. Anthony, any comments on the ETH BTC ratio?

• 4:04Speaker 01

  I think, look, uh, the overall market is bearish and I think people are risk off in general. And the wider market definitely considers ETH to be at least a little bit riskier than BTC is to hold. So, you know, we did see the ratio kind of lose strength there, but I think it's on kind of like a support level right now. Uh, you know, depending on what the market does, I, I'm not sure where the ratio goes from here. Obviously we have a huge catalyst coming up towards the end of the year for Ethereum with the merge, which is not just a huge catalyst on the technology side, but also on the, the market side. But I don't have any strong feelings with the ratio right now. I think it's in the same position where it's kind of like, you know, it could go either way at this point.

• 4:41David Hoffman?

  Yeah, totally. All right, moving to the total crypto market cap. We're coming in at .95 trillion dollars, so still below that $1 trillion mark. A little bit flat on the week, but overall crypto in the last seven days, flat-ish. There's been some losses here and there. Any other comments about the total crypto market cap, Anthony?

• 5:04Speaker 01

  We've come down a lot, right? 3 trillion, I think, was the top, and now it's under a trillion. Yeah, it kind of like hurts that it's that low, but I think it's dictated mostly by the top coins, right? Like Bitcoin and ETH and stable coins, things like that. So, you know, it can change overnight, right? It can go back up to 1.5 trillion before we even, or something like that, before we even know. So, I don't know how much stock I put in the total market cap, but it gets a lot of media coverage, that's for sure.

• 5:29David Hoffman?

  Certainly does. Did you slurp any three-digit ETH, my brother?

• 5:33Speaker 01

  I did, sir.

• 5:34David Hoffman?

  Yeah, yeah?

• 5:35Speaker 01

  I didn't get to catch the exact bottom because I was sleeping. I got it at like 900 because I have resting buy orders like down every 50 bucks until like $500. So I was able to slurp at around 900. When I woke up, I was like, oh yeah, that buy hit. Well, that's scary and good at the same time.

• 5:55David Hoffman?

  It's always when you feel fear and you press buy anyways is when the opportunity arises. There's a fun perspective for the newbies out there. This is a frequent format for Bitcoin tweets. In 2011, the tweet reads, "In 2011 Bitcoin fell below $20. In 2015 Bitcoin fell below $200. In 2017 Bitcoin fell below $2,000. And in 2022 Bitcoin fell below $20,000." I actually don't know if it fell below $2,000 in 2017. I don't remember it getting that low.

• 6:25Speaker 01

  It would have been like the volatility from like the start of the run, right? It's kind of like cherry picked, but I guess that was just trying to make like a pattern, right?

• 6:34David Hoffman?

  Right, right. Well, I mean, when you make the pattern and you ultimately get a 14,000-like tweet. What would the price for Ether be if we did this? It would be like $80 in 2017. Almost $800 so far. Maybe next time it's $8,000.

• 6:52Speaker 01

  Maybe. Hopefully.

• 6:54David Hoffman?

  And then one last comment on the on the markets. A different market than what we usually talk about, but the GPU markets are starting to get flooded. Here is a tweet that I thought was pretty interesting that reads Chinese miners in South Asian. I don't know what the next word is now dismantling their mining rigs and putting up cards for auction on live streams. 360 Ti's, which is a Nvidia graphics card going for 300 to 500 or 300 to 350 US dollars, which if anyone has been paying attention to the GPU mining market or no, the GPU market for like gaming and also mining. GPUs have been super highly priced for, I don't know, two years now. And it looks like a lot of people are starting to actually the GPU miners are quote unquote,

• 7:37David Hoffman?

  pricing in the merge by selling their GPUs on the open market. And so GPU price is going to finally come down. If you guys, if anyone has been on the hunt for a GPU to build out their gaming computer, it has turned into a buyer's market. Anthony, any comments on this?

• 7:52Speaker 01

  I've had a thesis for a while this was going to happen. You know, you mentioned the merge, but also obviously as the prices come down, miners have to sell because it's just not profitable for them to mine anymore. So I think especially, you know, obviously, once the merge happens, like all these miners have basically nothing as profitable to mine. Like some of them will go to other chains that are that are compatible with GPUs, but most of them will flood the market. And I actually remember posting to some friends a few months ago that I I thought shorting Nvidia would have been a good trade. And that has so far been a good trade and I didn't take it, of course, because I don't really short things. But yeah, it's just obvious to me that there's just going to be an absolute flood of GPUs. And I think Nvidia themselves should be scared of this because they're trying to launch a new kind of like line of GPUs by end of the year.

• 8:35Speaker 01

  Well, why would anyone buy their new line when they can get like a severely discounted mining GPUs? Which for those who don't know miners, when they use these GPUs, it doesn't actually materially reduce the GPU's effectiveness and doesn't really harm them. So it's not like you're buying a card that's going to die on you within a few months. The card is fine to buy. It's just that it's severely discounted because there's going to be so many of them flooding the market at once. And it's going to be a pretty good time for gamers, I think, that want to that want to pick up a card here.

• 9:05David Hoffman?

  Yeah, I actually came into the world of crypto via mining. And so I remember like taking the profit maximalist approach to mining was not to actually run these units at super hot, high speeds. You would run it at like 80 to 85% capacity because you need that thing to live a long time and not break down on you. And I do think there's going to be like this stigma discount on these things where like, oh, a mining like gamers are kind of like, what's the word? Kind of like, what's the word I'm going for?

• 9:36Speaker 01

  I know what you're looking for.

• 9:39David Hoffman?

  Yeah, they're really, really picky, right? And so like, no, I don't want like a mining GPU in my computer. Like that's, I don't want the miners to have touched my GPU. I want my GPU to be flawless. But the GPUs themselves, the cards are going to be like, not bad. So different, different corner of the market, the GPU market. But you can start to see the effects of the merge getting priced in here. All right, fam. Coming up next, we're going to talk about the theory arrows capital contagion, the continued fallout from that. And of course, DYDX chain, and as well as the Uniswap acquisition of Genie, the NFT aggregator, right after we get to some of these fantastic sponsors that make this show possible. Aave is the leading decentralized liquidity protocol. And now Aave V3 is here. Aave V3

• 10:21David Hoffman?

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• 11:05David Hoffman?

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• 11:49David Hoffman?

  with many moving over every day. Go to bridge.arbitrum.io now to start bridging over your ETH and other tokens in order to experience DeFi NFTs in the way it was always meant to be: fast, cheap, secure, and friction-free. And we're back. Alright, we're gonna have to talk about the further reach of the Three Arrows Capital cancer, the spread of the virus, the spread of the contagion. Voyager is an exchange, apparently, Ryan, Anthony and I were just talking about like what the hell Voyager is right before we got here. Not an exchange I'm familiar with, but somehow they ended up having exposure to Three Arrows Capital. And Voyager tweeted out, "To better serve and protect our customers in current market

• 12:30David Hoffman?

  conditions, today we announced that we signed a term sheet for $200 million and 15,000 Bitcoin revolving line of credit with industry leader Alameda Research." We'll get into the Alameda side of the story here. The reason, the details behind this, why this is happening, is because apparently Voyager had $663 million of money that they just lent out to Three Arrows Capital, which then like went full leverage, full tilt leverage, and then lost it all. And so, apparently Voyager, an exchange, lent Three Arrows Capital $660 million. And now that Three Arrows Capital is completely insolvent, they lost all that money, which is weird that it's coming from an exchange. Anthony, what are your thoughts on here?

• 13:14Speaker 01

  I just can't believe like this stuff that's come out over the last few weeks, like... People, the funny thing about people in the crypto space, I mean, probably people just generally, is that they think that because someone has a lot of money, or like a company has a lot of money, or a fund has a lot of money, that they somehow have like the intelligence to back that up. And as we've seen from the Three Hours Capital fallout, that definitely wasn't true. They were literally pretty much the same as the D gens you see on crypto Twitter, just with a bigger kind of balance sheet. And it's also seems to be that they didn't actually have much of their own money. They didn't take outside capital as investment, but they borrowed money from pretty much everyone, and then were putting that into their trades, and then paying back the loans, right, that they took out, using the profits from those trades,

• 13:58Speaker 01

  and not telling anyone that they were borrowing from everyone else. And obviously, once they blew themselves up, they had all this exposure to various parties out there. And I don't know why Voyager gave them so much money, because you just saw in the tweet, they have like a hundred and fifty million dollars left themselves, which basically makes them insolvent if Three AC doesn't pay them back, right? And I'm just so confused, like, why did they do this? Like, did they really get FOMO and think that Three AC was gonna trade this money up to be worth billions of dollars or something for them? And the fact that they're kind of like, I think, a customer-facing exchange as well, that kind of like has retail investors, it's really sad, because retail investors have gotten absolutely slaughtered over the last few months, right? They had the Terra stuff, then you had Celsius, you had BlockFi recently.

• 14:41Speaker 01

  BlockFi, there hasn't been any fallout there yet, because they got bailed out too. But, you know, you have kind of like Voyager now. It's just like, how much damage have we done in such a short period of time to these people? It's actually just insane to me.

• 14:55David Hoffman?

  Right, here's a tweet from Tom Lombardi showing one of the like terms and conditions of Voyager, where there is a consent to re-hypothecate, which I guess means that if you put your money in Voyager, you are consenting to let them go and do whatever that they want with your money, kind of like a bank. And Tom, the take here from Tom is that when you don't know where the yield comes from, you are the yield. So you go and deposit your money into Voyager. Voyager on the backend gives all of their money to Three Hours Capital, who probably like promised Voyager some yield, right? Like, give us your money. And then we'll go and give you this percentage of yield. And to some degree, and this also happened, we talked about this last week, where a lot of startups

• 15:37David Hoffman?

  gave Three Arrows Capital their treasury to go do that same thing, right? Like, here's our treasury for our new project from what we just raised. Three Arrows Capital, please go give us like 6% yield. And then like Three Arrows Capital like probably just takes it and puts it into like Anchor on Terra Luna. And then that goes down bad. And then they leveraged themselves up, probably trying to make it back. And that which just never ends up working out. Anthony, you brought up BlockFi, so this is also part of that story. Zach Prince, the CEO of BlockFi goes, "Today, BlockFi signed a deal sheet, just kind of like Voyager did, with FTX official, also kind of like how Voyager did, to secure a $250 million revolving

• 16:18David Hoffman?

  credit facility, providing us with access to capital that further bolsters our balance sheet and platform strength. The proceeds of that credit facility are intended to be contractually subordinate to all client balances across all account types and will be used as needed." Basically, to ensure that BlockFi is solvent enough to allow for users to withdraw their assets. And they're actually being assets there to withdraw. And they're getting this money by a loan from FTX. Because BlockFi, like many other lenders in the space, basically every crypto lender that Three Arrows Capital could borrow money from, Three Arrows Capital borrowed money from, BlockFi included. And so Zach and BlockFi, like definitely, like I would call it more regulated, more above the board

• 17:03David Hoffman?

  type of lender out there, but even, you know, even BlockFi is not immune to this. Anthony, any thoughts on the BlockFi side of things?

• 17:09Speaker 01

  Yeah, I mean, I think we're just very quickly seeing why C-Fi is not sustainable, why C-Fi is what we're trying to replace with DeFi, right? While we're actually trying to build better systems. Is because once you throw your funds into these C-Fi platforms, it's opaque as hell. And you have absolutely no idea what they're doing with your funds. As opposed to DeFi, even if these DeFi protocols aren't actually decentralized, you can still track whatever, what's happening on chain, right? You can see where all the funds are going, like it's all open and Transparent and there's no need to kind of like uh uh just kind of be in the dark about it. And even with the Terra collapse, people were screaming about it for a long time because you could see exactly how it all worked. I mean, even the white paper told you how it worked.

• 17:53Speaker 01

  Whereas with these C5 platforms, you're just throwing money into the void and hoping you can withdraw it one day. And you mentioned they were regulated. They are, but they're not regulated like banks are, right? And they don't suffer the same consequences as banks. And that's what they need to get to if they want to be, you know, a better platforms. But I I think that's going to come now. I think regulators are really going to screw these guys now because they've just played with fire and got burnt.

• 18:17David Hoffman?

  Yeah, like we say frequently on Bankless, if you can be regulated, you should be regulated. And if you can't be regulated, it's because you're decentralized and you're transparent and therefore you're regulated by code. The last part of this story comes from BlockFi, which is apparently allegedly uh struggling to raise. Uh, so they are going through another raise round. I believe BlockFi raised something uh that raised at a valuation of like $5 billion. At least that's what this tweet says from Frank Chaparro at the block. Definitely reputable news source. So when when Frank's tweet something, it's not, it's not like vapor. Uh, and so previously BlockFi raised at a $5 billion valuation. And then they are now raising, again, raising more money, uh, but at a valuation of just about $1 billion.

• 19:00David Hoffman?

  Uh, so going from a $5 billion valuation to a $1 billion valuation in about six months' time. Uh, so a significant loss of valuation by BlockFi. I mean, probably related to crypto market prices going down, yields going down. But then also like losing a bunch of money to 3Rs Capital too. Uh, and so, uh, overall, just like not a, it's a bad week to be a centralized money lender. Let me tell you that, Anthony.

• 19:24Speaker 01

  Yeah, yeah, exactly. And man, I think this is just following on with the trend as well of like, uh, the private markets coming down. They typically lag the public markets by about three to six months. But some of the private valuations are getting way ahead of themselves. And when I saw BlockFi raise at that valuation, that $5 billion one, I even thought at the time that that was insane. Like, I didn't think that they were worth that much at all, based on kind of like, uh, I guess what they were at the time. And definitely today, they're not. And I think the market is kind of repricing that there and also repricing the risk now of these kind of like, uh, these services.

• 19:55David Hoffman?

  All right, moving on to the second big news item of the week, DYDX Chain, the whole entire blockchain. DYDX, it used to have its own Layer 2 on Ethereum using Starkware technology, and it still does. I don't think they've migrated yet, but they are planning DYDX version 4, which includes DYDX Chain, which is a Cosmos chain, so going from Ethereum Layer 2 to a Cosmos zone, I think. And so they tweet out, "DYDX V4 will be developed as a standalone blockchain based on the Cosmos SDK and Tendermint Proof of State consensus protocol. At DYDX, we embrace radical changes in technology that have the potential to dramatically improve the protocol. After exploring the landscape of current and upcoming blockchain technologies,

• 20:39David Hoffman?

  we've decided that Cosmos will allow us to build the best and fully decentralized protocol." Anthony, what are your thoughts on this move?

• 20:47Speaker 01

  So, there's a lot of thoughts here, like a lot of thoughts. I do want to say that I think DYDX isn't being that forthcoming with their reasoning here. I think that, like, from people I've spoken to and just thinking about this a lot since it was announced, I think that the main reason they're doing this is regulatory. I don't actually think this has much to do with the technical aspects of it, and I'll explain my reasoning there. In this announcement, in this blog post, they talk a lot about decentralization, right? Decentralization this, decentralization that, blah blah blah, right? Right now, with their Starkware implementation of DYDX, they cannot decentralize it because Starkware does not have the ability to have decentralized sequences yet. Starkware hasn't put in those features or anything like that.

• 21:29Speaker 01

  And the order book specifically is centralized, and DYDX has all the matching and things like that. Whereas with a Cosmos chain, for example, they can spin up their own validators. They can say, "Well, there's DYDX people, token holders can stake their tokens and validate the chain." And then they can kind of say to regulators or anyone that comes knocking, "Hey, we're actually decentralized. We don't centrally control any part of the protocol. It's part of the DYDX protocol, and there's nodes that validate it, and they're spread it all around the world." When in reality, it's not really going to be that decentralized because 50% of the token supply belongs to insiders anyway.

• 22:06Speaker 01

  But I guess that's orthogonal to the to the point of that. I think this is just much more to got to do with regulatory than it does with technical, because I actually think this is the third time that DYDX has now pivoted on their product stack. First, they were on layer one Ethereum, then they went to Starkware, layer two. Now they're doing DYDX chain. And honestly, like, yes, they're they're kind of like got a lot of traction as their layer two, and their layer two is actually really cool. I love using it. But from what I've seen, they're nowhere near the capacity that Starkware can give them, right? I think they do like 10 TPS or something like that. And I'm sure Starkware has plans to decentralize the sequencer and and kind of like improve their technology and bring more scale and all that sort of stuff. So I think it's less technical and much more regulatory for those reasons I outlined.

• 22:50Speaker 01

  And I just don't think that this is a good move from that perspective, because I get the regulatory side of things, but you're sacrificing your your product and your technology for that. And maybe they believe that they can build a better product. Maybe they truly believe it. But I don't know, like, from everything I know, layer twos is still strictly better than Cosmos chains. And it's not even a technically a Cosmos zone, because they're not going to connect to the Cosmos hub from from what I've seen. There's going to be their own standalone chain that uses Cosmos technology, and the DYDX token will be used to validate the network. And so by doing that, they're actually giving up heaps of security, too, right? Like, they're literally leaving.

• 23:24Speaker 01

  Say you're in like a massive fortress and you have an army protecting you, that this is what they're doing. They're leaving that fortress and they're going to their own camp out in the wilderness, have a few guards posted, and that's how they're going to protect their their chain now. So I think the trade offs that they're taking here are really, really kind of like bad, and I actually don't think this is a positive for them. But as I said, if it's if you take the regulatory view, I think it makes a lot more sense than the technical view.

• 23:49David Hoffman?

  Yeah, I I definitely agree with that take. That's an interesting take that I haven't heard yet about the the security comment. This is also where the changes in the DYDX token come into play. And so the the DYDX token, which, you know, is is a token on Ethereum, but is now going to be part of its own layer one blockchain. This is a brand new layer one blockchain that's coming to play here. The in in this blog post, they go, the DYDX token is the protocol token. Of the D Y D X protocol, of course, governed by its holders. The V four protocol is designed with a need for a layer one protocol token. The protocol token would be used for staking to validators as well as ongoing governance of the chain.

• 24:28David Hoffman?

  The D Y D X token would seem to be a natural fit to be used as the layer one token of the V four network. But we look forward to understanding the perspectives of the D Y D X community. I'm trying to find where this is on screen, but I'll find that in a sec. But basically, now in order to have a D Y, a layer one blockchain, you need to have a token. And so like D Y D X is becoming the ether of, you know, ether is to Ethereum. D Y D X token is to D Y D X. And now you stake D Y D X and run a validating node and you like process the blockchain as one does. But this, like previously, D Y D X didn't have to pay for security, which is what you were saying. They were just, they would just receive the security from Ethereum.

• 25:09David Hoffman?

  Now that they're going to their own layer one blockchain, there needs to be D Y D X emissions to pay for security. Changing the nature of the token. And so you can now, if you're bullish on D Y D X, you can now stake it, run a node, process the blockchain and receive those emissions. But this is now an expenditure that the system didn't previously have. And now it does have, because like you said, they have to pay for their own security.

• 25:31Speaker 01

  Yeah.

• 25:31David Hoffman?

  Any thoughts on that?

• 25:32Speaker 01

  Yeah, yeah, I mean, you're totally right. And I think like, you know, some people have kind of brought up, brought up points around, are they, are they doing this? Because they want to drive more value to the D Y D X token. And I'm like, yeah, okay, I could see that, right? There is, there is typically a layer one premium some of these things get. But at the same time, by, by doing this, as you said, they have to inflate their token to secure their chain here. And actually, one thing I forgot to mention about the regulatory stuff before and gives further kind of like proof to this is that the airdrop that D Y D X did, they barred U S investors from getting that airdrop. So they have been very, very careful when it comes to regulatory stuff, right?

• 26:13Speaker 01

  So I think that that game is kind of like further proof that this is a lot to do with regulatory stuff rather than technical, technical stuff.

• 26:21David Hoffman?

  We've had Antonio on the show before, and one of the takes that I've really enjoyed from Antonio is that he is not a maximalist in anything other than DYDX himself. He's going to build the best derivatives exchange possible. And I like that take because he was building it as a Layer 2 on Ethereum, and he says that he's going to be able to beat out competition by optimizing for decentralization and using decentralization as a tool. But the take here is Antonio is a DYDX maximalist. He's going to do whatever possible to make DYDX the best exchange possible. And so the writing on the wall actually started, I think, forever ago when Su Zu had that abandoning Ethereum tweet, which Antonio retweeted and said, "Here's a risky tweet of the day.

• 27:06David Hoffman?

  This is said much harsher than I would put it, but I somewhat directionally agree. Ethereum has not executed over the past years. I can't think of a single 10x useful improvement Ethereum has made in the last four years." And this was back in like November of 2021, when we had this like drama with Su Zu and the Ethereum community. And Antonio kind of tapped on and agreed with Su, saying like, "Well, Ethereum as a protocol hasn't really upgraded." And so the writing on the wall here was definitely present. And then later, Antonio tweets, "I 100% don't care what chain DYDX is built on. All I care are the technical trade-offs, decentralization, security, scalability, UX, etc. DApps will move to other chains if or when they offer better trade-offs. Anyone who doesn't like it will be outcompeted."

• 27:49David Hoffman?

  So you could kind of see the tone that Anthony was taking forever ago, Antonio, excuse me, was taking forever ago in November 2021. And now it has come to fruition of DYDX going on its own blockchain. We are actually having Antonio for the State of the Nation this coming Tuesday. So we're going to talk to him about this decision and like what made him make this decision for moving DYDX over to Cosmos. There's some takes from some ecosystem participants. Paulinaia had this take where he said, "They said, 'Very interesting. Technically, everything here can be done with rollups, and better so for many reasons. There are two advantages of going with your own Layer 1 blockchain I can think of: sovereignty and timing. Probably a combination of both.'" Concerned about the plummeting security, though.

• 28:33David Hoffman?

  One observation, a potential red flag, they have some deep answers about uh. They have some deep answers about decentralization, but there's not a peep about security. They say they they will use the DYDX token with fifty percent of tokens allocated to insiders. How will this thing be economically secure and sustainable? What do you think of Paul and Iya's take here, Anthony?

• 28:52Speaker 01

  Yeah, I think he has it on on the money. Uh, I think it like. When you kind of look at these sorts of stuff and the arguments from the pro, I guess, Cosmos people, I should say. Their arguments usually revolve around them thinking that sovereignty is critical. They think that every chain should be an app chain, should be sovereign, should be able to do what it wants and have full control over its uh kind of like destiny. And you know what? I actually get that. I get that view. I don't agree with it, but I get it. And I think this is where the divide comes as well from Ethereum and Cosmos. Like Ethereum ecosystem believes that sovereignty of a chain is just really not that important. You don't get any benefits from it. The trade off includes, you know, you're plummeting security as Paul and I said here.

• 29:32Speaker 01

  Um, and then timing, I would also agree with because I don't think Starkway is ready right now for what DYDX wants to do. So if they're trying to get ahead of regulators, then they they, you know, it's probably existential enough for them to kind of like go to a. A new chain as as well there. So so yeah, I agree with those points. But I also just wanted to quickly touch on what you were saying with Antonio before. I actually don't really believe what Antonio was saying a lot of the time. Like a lot of the comments I've seen from him over the years, and this might be controversial. I don't know Antonio personally or anything like that, but the comments that he's made, especially that tweet that you highlighted from November twenty twenty one. Showed that he just doesn't really have a deep understanding of Ethereum or its scaling roadmap or how it's going to kind of like get to where he. I, you know, he would want it to be for for DYDX. So I do believe it when he says he's DYDX maxi because it's his company, right?

• 30:17Speaker 01

  He's trying to grow it as big as possible, but I think that he's making strategic mistakes here personally. And and and you know what? That's just my own opinion. I could be wrong. I'm not going to say I'm right here. But I do think that he he makes some comments like, oh, you know, ETH two is three, you know, habitually three to five years away. And it's like, well, no, even back then, we knew proto dank sharding was going to be that thing that gave a lot of benefit to. Um, layer twos and that should come like relatively. Soon. He also had made a comment about EIP one five five nine and he thought it lowered gas fees when, you know, anyone who was paying attention knew it didn't do that. So I think that there's just a divide here that, um, you know, I don't know if it's other app developers or just Antonio where they don't seem to understand how Ethereum is going to actually scale, even though he built on a layer two and everything. I, I feel like

• 31:01Speaker 01

  because he's so focused on D Y D X itself as a product, he seems to miss the forest for the trees, so to speak, right? He seems to be focusing a lot on D Y D X, but losing sight of maybe the bigger picture of, of kind of like the, the, the scaling stuff. And, you know, I guess it's his kind of like thing to prove everyone wrong, you know, with Cosmos, uh, with, uh, not Cosmos, with D Y D X chain. Uh, we'll see how that, how that goes there, but this isn't the first time we've seen this either. There was comp chain from Compound back in December of 2020. That went nowhere. They didn't build it on Cosmos. They built it using poker dot substrate, or at least they attempted to. That went nowhere and now Cosmos wants to deploy to other EVM chains and, and things like that, like layer twos and things like, um,

• 31:40Speaker 01

  some other apps have done. So, you know, we're still early, it remains to be seen, but again, going back to what Paulina, Paulina said, uh, I just don't think the trade offs are worth it, like trading off massive security for some sovereignty. For what? Right? Like, what do you need that sovereignty for that is worth all that security losses is my question to people. And I haven't really come up with a good answer yet.

• 32:00David Hoffman?

  Yeah. And the other, the other conversation is, do you have the same on ramps when you're on your independent blockchain versus a layer two to Ethereum? Cause if you're on a layer two to Ethereum, like I can send my assets on Ethereum straight over to D Y D X instantly. But I, in order to get to a Cosmos chain, I'd have to take a bridge or go through a centralized exchange. So like, there's a conversation about like where the money flows in. But let's go ahead and move on to the next big item, the last big, uh, news week, uh, news, news item of the week. Uniswap acquiring Genie. Uniswap Labs tweets out the Uniswap universe is expanding. In pursuit to unlock universal ownership and exchange, we're excited to share

• 32:38David Hoffman?

  that we've acquired Genie X Y Z, the first N F T marketplace aggregator, expanding our products to include both E R C twenties and N F Ts. Anthony, first impressions on, on this news?

• 32:50Speaker 01

  First impressions was that it was only a little bit surprising to me. Like, I think that Uniswap as a kind of like a vibe and a culture has always been about just swapping things in general. Doesn't matter if it's tokens or NFTs. I mean, obviously, they had Unisox, which technically isn't an NFT, but I mean, it kind of like it practically is. So yeah, I wasn't really surprised by this, but I also had some thoughts about like just aggregators in general and how I think that so far decentralized exchange aggregators themselves have actually not fed well against the single exchanges. So like, for example, One Inch has not really fed well against Uniswap and neither has the other aggregators. But I actually think when it comes to NFT aggregators, it's going to be a different story.

• 33:30Speaker 01

  Because, you know, you can have the same fungible liquidity pool across many different DEXs, but a lot of the time, you won't have the same kind of like thing between different NFT marketplaces. So for example, there might be an NFT that's listed on OpenSea, but it's not listed on LooksRare, and then you're only on LooksRare. Well, then you haven't found it there and you won't, you won't be able to buy it. Whereas an NFT aggregator will actually tell you where the NFT is, like what marketplace it's on. So I, I think that because of that, the NFT aggregator probably has much, much more of a chance of being a thing than the decentralized exchange aggregators have been to date. And Uniswap obviously has that brand power to make it happen too, like just insane brand power and awareness around Uniswap, that's for sure.

• 34:12David Hoffman?

  And in case you missed it, we talked to Hayden on the, on the YouTube. So that show, if you guys want more details on that show, Hayden and I talked, this is him in the Uniswap offices down in Soho in New York. Pretty cool offices. I've been there. I was over there about a week ago where he actually like gave me the alpha a little bit of head time, so I kind of knew it was coming. If you guys have used Genie, you got a USDC airdrop. If you used Genie more than once, you got airdropped USDC, which is an interesting airdrop. I don't think I've ever seen a dollar stablecoin airdrop before. But either way, that's what, that's what happened. So airdrop season's still on, still on, but USD airdrops that this time.

• 34:50David Hoffman?

  All right. That is the big news items, but there's so much more news left. We got the Arbitrum Odyssey to talk about, which is extremely exciting. We got some DeFi down bad stories as well as some Ether staking stories. And of course, we got some Elon Musk and Dogecoin things to talk about as well. So all that is coming up next, right after we get to some of these fantastic sponsors that make the show possible. There is a brand-new staking feature in the Ledger Live app today. We all like staking the assets that we're bullish on, and now you can stake seven different coins inside the Ledger Live app. Cosmos, Polkadot, Tron, Algorion, Tezos, Solana, and of course Ethereum. With Ledger Live, you can take money from your bank account, buy your most bullish crypto asset, and stake that asset to its network, all inside the Ledger Live app. Through a partnership with Figment,

• 35:35David Hoffman?

  Ledger also lets you choose which validator you want to stake your assets with. And Ledger is running its own validating nodes, offering a convenient way to participate in network validation, and it even comes with slashing insurance. Ledger Live is truly becoming the battle station for the bankless world, so go download Ledger Live. If you have a Ledger already, you probably already have it, and get started securely staking your crypto assets. The era of proof-of-stake is upon us, and Lido is bringing proof-of-stake to everyone. Lido is a decentralized staking protocol that allows users to stake their proof-of-stake assets using Lido's distributed network of nodes. Don't choose between staking your assets or using them as collateral in DeFi. With Lido, you can have both. Using Lido, you can stake any amount of your ETH to the Lido validating network and receive ST ETH in return.

• 36:18David Hoffman?

  ST ETH can be traded, used as collateral for lending and borrowing, or leveraged on your favorite DeFi protocols, all this without giving up your ETH to centralized staking services or exchanges. Lido now supports Solana, Kusama, and Polygon staking. Whatever your preferred proof-of-stake asset is, Lido is here to take away the complexities of staking while enabling you to get liquidity on your stake. If you want to stake your ETH, Sol or Matic, and get liquidity on your stake, go to Lido.FI to get started. That's L-I-D-O dot F-I to get started. And we're back, Bankless Nation, onto the rest of the news, starting with the Arbitrum Odyssey. Arbitrum tweets out, "The Arbitrum Odyssey will officially start on Tuesday, June 21st." That was this last Tuesday, so this has already started happening. We know all you Arbitonauts

• 37:02David Hoffman?

  have been very excited to venture into the unknown with us, and we're very eager to have you on board. And so, starting on June 21st at 1:00 PM, by using any of the bridges or centralized exchanges listed below, here's the tweet. "To move ETH into Arbitrum, you'll be able to claim the first NFT after the week ends." To end up using the bridge that have the most wallets bridging into Arbitrum are in store for a bonus NFT. So here is a bunch of available bridges. Hot Protocol, Across, Transact, Lifi, LeFi, Dgate, Seller Network, Cashflow. There's so many of these and so I guess if you get your Ether onto Arbitrum, you get an NFT. And then that is the first part of the Arbitrum Odyssey, that's the Bridge Week.

• 37:45David Hoffman?

  And then Weeks 2 through 8 is like DAP Week is kind of how I've separated this in my head. First, there's Bridge Week to get all the Ether onto Arbitrum. And then there's DAP Week, which are Weeks 2 through 8. So there's so many applications on Arbitrum that you're going to use. And then they're going to give you NFTs if you use them. So it's basically just a big treasure hunt for NFTs over the Arbitrum Odyssey. Anthony, any comments on this?

• 38:08Speaker 01

  I think it's an interesting way to grow their ecosystem without using a token. That's what I really like about this is obviously Arbitrum does not have a token yet, may or may not in the future. But because they don't have a token yet, they're using this as a way to bootstrap the growth. And I think also they are aware of the fact that people are going to be using this as a way to potentially farm a future airdrop, right? Which obviously has factored into this, but I mean, I don't think that's, that's kind of like a big deal there. I've already seen some really nice metrics that people are kind of like bridging in and they're kind of using kind of Arbitrum there. And they're kind of like, obviously using, I think, Hot Protocol, I think. Yeah, that was, that's the tweet that I saw. So most people seem to be using Hot Protocol there. And there's actually a lot of bridges now, like that graphic that you just showed, there's so many bridges.

• 38:52Speaker 01

  There's too many at this point, I think, but like I just don't, I don't think most of them are going to like survive long term. It's just, there's too many, right? But, but it's cool to see that they're all being supported at least by Arbitrum. People can use them, they can kind of like get, get value out of them. But yeah, I just, as I said, I think it's, it's cool that Arbitrum is bootstrapping kind of growth, new users without using a token. Because I've always for like a long time now said that I want to see more kind of like incentive programs that don't involve a token. Because we all know how liquidity mining programs end, they don't end very well.

• 39:29David Hoffman?

  For the podcast listeners, this tweet that we're looking at here says, "Over 4,000 users have bridged to Arbitrum on the first day of the Odyssey campaign. Over 2,800 alone used hot protocol. Amazing to see." And then the chart here is just like a big candle, which is illustrating daily new users bridging into Arbitrum. It looks like it's hovering around like, you know, 50 to 200 on like an average day. And then like this big red candle is at over 4,000 people in one day and about 2,000 people the next day. And so people like the tokens. People like the NFTs. And so William Peaster in the Bankless Newsletter put an article out called "The Arbitrum Odyssey Begins: Breaking Down the Arbitrum Odyssey" and getting you all that information you need. So if you're trying to do a deeper dive into

• 40:14David Hoffman?

  what you should be doing if you want to embark upon the Arbitrum Odyssey, you can check out that newsletter for all the details down there. All right, moving into the DeFi Down Bad section. This is a governance proposal on this thing called Solend. And this is, this is some spicy drama. The title of this governance proposal is "Mitigate Risk From Whale." And basically, the TLDR of this proposal is that there is somebody using Solend on Solana. And Solend is basically like the AVE or the Compound version, but on Solana, "Solend", like lend your money. And there's somebody, there's a big whale that put all of his Sol tokens into Solend and borrowed a bunch of stables from it and is very, very close to getting liquidated. I think the liquidation price is something like $22. The Sol price

• 40:59David Hoffman?

  is back up to like something like $35, but it did get down to like $28. And the problem here was that there were so many Solana tokens in this position, and there was not enough sufficient liquidity in the Solana decentralized exchanges to liquidate this for what it was worth. So like the Sol token in Solana's DeFi ecosystem was literally going to go to zero because there wasn't enough liquidity there. And so there was a governance proposal to take the money, take the position from this whale and like take it over, liquidate a part of it, and then just in order to prevent this cascading liquidation. Anthony, what are your takes here?

• 41:38Speaker 01

  Yeah, I mean, this is like the cardinal sin, right, of, uh, of kind of like DeFi. If you do this, you just are not DeFi, like, at all, like, I mean, there are obviously admin keys for a lot of DeFi protocols and multi-sigs and things like that, but I'm not aware of any in the Ethereum ecosystem that have done something like this, even proposed something like this of taking over an account because, uh, they wanna kind of like do it for the good of the protocol or something like that, right? So I, I, I think that it was insane, and then they had another vote, I don't know if we're gonna talk about that, but like they had another vote to like invalidate this first vote, which was, I mean, in very much in favor of yes, you can see a ninety-seven-point-five percent yes, um, and like, which was, I think, a lot of the, a lot of the voting was the team, like, and investors, because of course, they're just gonna vote with, with, with

• 42:22Speaker 01

  them, but, uh, yeah, it was not, it was not good, that's for sure.

• 42:27David Hoffman?

  Okay, so thi- this initial vote to take over the, um, the position of this whale passed, but then there was another vote that said like, wait, wait, no, just kidding, we don't want that?

• 42:37Speaker 01

  Well, yeah, because the soul price went back up, right? And they're like, well, the soul price is up, but it's no longer a risk anymore, so let's do another vote to cancel the first vote, and I was like, this is just clown world now, like, this isn't even funny anymore, like, it's just stupid, um, but yeah, I don't know if it's gonna load for you there, but yeah, there was another vote, um, I think, like, uh, this was the, but mind you, this was the first gov- uh, vote on the governance forum.

• 43:02Speaker 01

  They had no other ones, they just had this one, oh, man, it's just, it's funny, it really is.

• 43:09David Hoffman?

  Yeah, well, I, I think there, there's a, I would imagine that the sole end token doesn't have a lot of distribution because of how, uh, how young the, the application is, uh, and so there, there's the critique going around that this is basically just like the operators of the protocol voting to take over the margin position of this, of this large whale who just didn't do anything, um, so I hope this, I, both the sole end community, the sole end operators and this whale is definitely hoping that we don't go down like another twenty, thirty percent, because then we will start to be liquidating all the, the Solana tokens.

• 43:40Speaker 01

  Yeah, I mean, there is that, but there's, the thing with the whale is that, like, I don't think the whale even cares to pay this back, because how are they gonna liquidate that much soul? They've already got over a hundred million dollars of stable coins that they can just keep, right? Like, who cares about the soul? Like, they, there is obviously a sixty million dollar difference here, but if they can't sell the soul anyway, because there's too much of it, like, they're just gonna take that money and, and run, right?

• 44:02David Hoffman?

  Right. Right, yeah, there's a lot more liquidity for US dollars than there is Solana tokens. That is for sure. Here's a tweet from FatManTara. "This is pretty wild. The Solen team wants to take over the whale's accounts and execute the liquidation themselves. The whale's position is so degenerate that if Sol drops too low, it will cause cascading liquidations." Basically recapping what we just said. And then at the end of this tweet thread, he said, "The Solen team just confirmed to me that when this change is implemented, the whale will instantly be partially liquidated down to a safer ratio. Sol price is 32, but its current liquidation price is only 22. On the fence about the main proposal, but I do not agree with that part." So some interesting decisions going around when communities get stressed.

• 44:43David Hoffman?

  And speaking of communities getting stressed, Bancor has released a market conditions update on June 19th, 2022, which is when this was posted. And they said, "Due to hostile market conditions, Bancor's impermanent loss protection is temporarily paused. IL protection will be reactivated on the protocol as the market stabilizes. This is a temporary measure to protect the protocol and its users." And so what this really means is Bancor has this interesting mechanism to mitigate from IL and permanent loss protection. And then basically, if you just want to supply Ether into Bancor's AMM, Bancor is very much like Uniswap, it's an AMM, but it's got some extra features involved with his token and some other things.

• 45:27David Hoffman?

  And so you can do single-sided liquidity providing, so you can provide liquidity for the Ether BNT pair, but if you don't want to provide liquidity for both, you can just do it for BNT, and the Bancor protocol will mint the extra BNT to provide that balanced liquidity. And that this is a way for people to not have to deal with impermanent loss, because they just inflate BNT in order to mitigate from impermanent loss. So it's just attractive for LPs, but also it's sacrificing value capture in the BNT token by making it inflationary as a function of impermanent loss. And so HAZU had this really spicy take that says, "Bancor's shell of impermanent loss hiding is collapsing. They print new BNT to compensate underwater liquidity providers," and they call it impermanent

• 46:12David Hoffman?

  loss. Protection, the cost is transferred to B N T holders via inflation, which causes further impermanent loss to all other B N T pairs and leads to further inflation, a death spiral. You can see it clearly in the performance of these Dex tokens. Uni is down 20%, Sushi is down 20%, but B N T is down 61%. And then he continues saying, now Bancor is pulling the plug to stop the bleeding. Didn't even take three weeks for my prediction to play out. More reading and he tags a Kobe tweet and Kobe says, "The need to pause impermanent loss protection is a result of how we designed and built impermanent loss protection." Kobe always being a little bit facetious here. Anthony, what are your takes here?

• 46:53Speaker 01

  I've been really harsh on Bancor on my own show like over this and I've just not been a fan of Bancor since basically day one. I remember their ICO, I participated in their ICO back in 2017. And back then, they actually in their ICO, for those maybe who weren't around, they changed the rules of the ICO mid-sale where they were supposed to be capped and then they changed it to kind of like be uncapped because there was so much demand and they got all this extra money. And ever since then, I've just like not liked them. And then even on their technology side, they didn't really seem to do anything innovative, right? They have obviously the A M M and everything like that, but this impermanent loss protection thing that they were doing, I looked at it, I'm like, what, how does this make any sense?

• 47:34Speaker 01

  It's literally just inflating the token to, and the cost is borne by token holders. So as far as I'm aware, there's no kind of like solution to impermanent loss, like in terms of like everyone winning, someone's always losing. Like, you know what I mean? Like, there's always going to be someone losing if you're trying to protect against impermanent loss. So I think from that perspective, I, the thing what Bancor did here is another cardinal scene where they paused, they broke their social contract with their community to save their own kind of like token value. But you know, you're bringing up the chart here. It's already down 95% from its all-time high, so it's not much left to save.

• 48:13David Hoffman?

  It's actually interesting. You can see this dynamic play out when you compare the price to the market cap of Bancor, because since the token supply is flexible, the market cap and the price charts look very, very different. So like the market cap chart actually has gone up, like the system has captured value. It's lost a lot of it in the last like, you know, week or so. But like, the price seems to have, you know, been down over over the course of time since like July of 2017, when this token came into existence. But the market cap has actually gone up a decent amount because the system captures value, but the token is just sacrifice in order for the system to capture value. And so with the removal of the impermanent loss thing, what happens is that if you, as an

• 48:57David Hoffman?

  LP, would have suffered impermanent loss, but then you withdrew your assets, BNT would just be minted and sold into the market so that you could be protected from impermanent loss. But since so many Bancor liquidity providers would have felt impermanent loss because of how down bad the BNT price is, it would cause a hyperinflation event, not unlike the one that we saw with Terra Luna, but just with a different mechanism. And so like, you know, impermanent loss protection, good in times of market, when markets don't go moving in one significant direction, like if it stays within a particular band, that's kind of where the mechanism works. But as soon as you find any long tail risk

• 49:39David Hoffman?

  and like down 90% market conditions, that's when the whole system breaks. So, moving on from that, DeFi down bad. Here's some more optimistic side of the crypto world. Going into Ethereum staking, this is the Leathermind saying, "With the Sapolia Beacon Chain set to be launched today, we can confirm the readiness of our Sapolia nodes. Today will mark another big step towards the merge with the panda emoji." Anthony, I know you pay attention to this side of Ethereum much more than the average person, much more than me and Ryan. Can you give us the TLDR of what's going on here?

• 50:14Speaker 01

  Yeah, so the Sapolia public testnet needed a beacon chain because if it's going to run through the merge transition, it already has a execution kind of like layer chain. It needed a consensus layer to merge with. So they launched a new beacon chain for Sapolia, which will be merged into the existing Sapolia network. And that will happen. Look, there's been some dates thrown around. It's either going to be late this month, like really late this month, or early next month. And then, once that happens, that'll be the second public testnet that goes through the merge transition. And then, we have one left after that, and that's Gori. So, but yeah, the beacon chain needed to be launched for Sapolia because there just wasn't one. So, we couldn't merge into anything unless we launched a new beacon chain. But this is testnet. This is not mainnet, nothing to do with mainnet. It's just all testnet still right now.

• 50:58David Hoffman?

  Yeah, but there's only so many testnets left before the mainnet day eventually comes. Continuing on the theme of ETH staking, Lido has announced an expansion of the Lido node operator set. So I previously believed that Lido had about 14 validators, independent validators from around the ecosystem, and they are adding in a bunch more. ChainSafe, Attestant, a few others, Nevermind, Prismatic Labs, all becoming validators in the Lido network. But also, at the same time, while Lido does move forward in adding more and more validators to their network, we have Swell Network, an alternative, newer, staking as a service application protocol, launched a testnet. So, things are moving in the world

• 51:39David Hoffman?

  of staking as a service. The Swell Network DAO says they are pleased to publicly announce the launch of Swell V2 testnet on the Gori network, a critical milestone in the development of Swell's next-generation ETH liquid staking design. And so, if you are interested in that world of staking, and want to be part of the Swell Network's testnet, there's a call to action to join that testnet. And there's a link in the show notes to get started. Anthony, any comments on these two bits of news?

• 52:04Speaker 01

  Yeah, I think staking, especially LSDs or liquid staking tokens and providers have been the talk of the town over the last few months, especially because Lido's dominance got so high, you know, over 30% on the on the network. And I think with this addition of new validators, or they're basically going from, I think, 21 to 28 or 29 validator nodes, which is pretty cool to see. And some of these include, you know, obviously Ethereum core teams as well, which has led to a bit of controversy. People saying, you know, we shouldn't be throwing so much support behind Lido because they're already a big part of the network and things like that. I mean, I, you know, I see all the sides to it. But I've long been a believer that there's just, there's really only two things that are going to fix the, I guess, like, distribution of stake

• 52:46Speaker 01

  and is going to make the stake be more distributed. It's more competition, which you just mentioned Swell Network entering the fray there with their testnet, going to be on mainnet hopefully soon. And there's others out there like Rockpool and things like that. And also waiting until withdrawals are enabled on the beacon chain for people to actually be able to withdraw. Because right now, all you can do to exit your Lido position is sell your ST ETH on the open market, which is actually at a discount right now. You can't actually redeem your ST ETH for ETH from the beacon chain because withdrawals aren't enabled. So Lido's position can only go up only unless people stake with another provider and their share of the network goes down. But all of the ETH that went through Lido is still going to be locked through Lido until the beacon chain

• 53:28Speaker 01

  withdrawals are enabled. So those are the two main things I'm I look out for. And I'm always for kind of like more competition coming online for these staking providers. And there's going to be so many of them. The the opportunity is so big to be a kind of like staking provider as well. So so yeah, I'm glad to see that kind of like, kind of like continue on here. If you want to, you can go to CoinGecko and see it quickly if it's not working on on Curve. Oh, there you go. Yeah, it's a 5% discount there.

• 53:54David Hoffman?

  Yeah, damn, it was up to 7% a few days ago. I was thinking about locking it in, but now it's down to 5%.

• 54:01Speaker 01

  It's basically a free year of staking yield when you think about it, right? Because if you're willing of taking that little bit of risk on to buy ST now and just wait till beacon chain withdrawals are enabled, you get like a free year's worth of staking yield that you can just redeem once the withdrawals are enabled. You can get one ETH back for 0.95 ST ETH, right? For example, which is pretty cool. But again, there is some additional risk there, right? Some additional assumptions, but I was gonna buy.

• 54:26David Hoffman?

  Your capital is gonna be locked up for a while, so you gotta be ready for that. Alright, okay, moving on, we're gonna close these tabs. Onto some NFT news. Crypto's Web3 expert leaves auction house to run CryptoPunks for Yuga Labs. Noah Davis, a key factor in the storied auction house's embrace of crypto and was involved in Beeple's 69 million sale in March of 2021, has left Christie's and joined Yuga Labs to lead in the CryptoPunk effort, which is a unique thing to do, of course, because CryptoPunks, a unique place in the world of NFTs on Ethereum, being like kind of the first OG NFTs on Ethereum. So Noah tweets out, "I'm humbled and honored to announce I'll be leaving my current post in July to steward CryptoPunks as brand lead under the umbrella of Yuga Labs.

• 55:09David Hoffman?

  Before I say anything else, it's important to confirm what we won't be doing. Simply put, I will not F with the punks." Which is a very important part of like the CryptoPunk ethos. As a CryptoPunk owner, I align with this. Don't mess with the punks. Leave them alone. They don't need a roadmap. They don't need any sort of like... The punks kind of think the apes are kind of cringe. I would agree with that. And so Noah just wants to put out this tweet thread saying that he will leave the brand of the punks where it is. And so he says, "What does this mean? It will be no punks on lunchboxes or cringe TV or shitty movies. It means no arbitrary rush utility through thoughtless airdrops. It means if you love your punks because of what they are, just punks, then you and I see eye to eye.

• 55:54David Hoffman?

  The first thing I will do is this. If you are a punk holder and you will care about the legacy future of the brand, I want to talk one-on-one. I will be at the Punks brunch during NFT NYC that happened last Tuesday, and we'll begin scheduling with sit-downs immediately. Wherever punks go, the community will help guide us." Anthony, any thoughts on this?

• 56:10Speaker 01

  Not too many thoughts, like I'm not an NFT guy, but I thought it was funny that there was inside a trading that happened before this was announced.

• 56:17David Hoffman?

  Yeah.

• 56:18Speaker 01

  Right? About like 24 hours or so before this was announced. Yeah, you can see here the the CryptoPunk floor just absolutely went bananas and everyone was wondering why and then we saw why. And it's just funny how like obvious it was, right? And people were trying to say, no, it's not because of that. It's because punks are back, baby. And it's like, well, no, it's because of this announcement. But this announcement could mean that punks are back, so to speak, and punks will actually, you know, be given the love they deserve, so to speak, because they've been neglected for a while here. So I guess whatever the reason was, it's just still funny to see that. This was a pretty big move as well. This went from like, what, 30 ETH to 60 ETH or something? I can I can see on the chart there.

• 56:55David Hoffman?

  Yeah, I think the the low was like 48 or 45 ETH. I wasn't checking the absolute low. But yeah, like punks did have their all time high volumes in week last week. And again, it happened so much volume without any explanation. And then we realized that somebody got the leak and then it started just trading. Also, in the NFT world, Doodles announces that Pharrell is coming on as the Chief Brand Officer, along with a fundraiser led by Alexis Ohanian. So if you're a Doodle holder, congratulations, I guess. Pharrell is now your Chief Brand Officer. And Alexis Ohanian, also a part of the the Doodles ecosystem. And then, of course, what else do we have in the NFT world?

• 57:36David Hoffman?

  Oh, yeah. Time Magazine partnering with Sandbox to build the Times Square version of itself in the Metaverse. And this will be used as a hub for all of the time pieces. And so Time did that NFT sale forever ago. Forever forever in crypto. It was like six months ago. And they have actually really leaned into a good, useful, an honest application of NFTs, at least in my opinion. And so now they are partnering with Sandbox to produce a virtual version of Times Square where you can see some of the time pieces, is what they call themselves, their NFTs, time pieces, in a virtual version of Times Square. So that is pretty cool. Anthony, any comments on that before we go on?

• 58:15Speaker 01

  Um, just on the doodles thing, they also announced doodles two, I think, and they hinted at like going off of Ethereum or something and going to, yeah, there you go, and going to another chain. But I don't know what chain they're gonna go to. I don't know if it's gonna be a layer two or something like that. Uh, but yeah, I don't know, like, this is why I have like a love hate relationship with with NFTs, like, they say, oh, they're doing doodles two. And it's like, okay, well, you know, I, I, I haven't been following this that closely. But like a lot of this stuff always looks like just a money grab to me. And maybe I'm completely wrong. As I said, I don't follow this very closely. You, you're actually way more involved with NFTs than I am, but uh, we'll have to see how that shakes out. We'll have to see what doodles two actually is. Is it just like a new platform that people can migrate their doodles to? It's, it's like a layer two or something like that. That'd be cool.

• 58:58Speaker 01

  Um, but yeah, I mean, they've got like big names on board now for Al Williams, obviously, and Alexis, Alexis is an investor. They're obviously trying to build a world and trying to build a metaverse around doodles rather than just be a PFP project, which I, which I fuck with, honestly, I like that. Like, that's cool. Like, and you know what? I would, I wish that I bought like some of those like coffee cup doodles early on because I love the look of them. I'm, I'm obviously a coffee maximalist for those who know me, but yeah, I don't know. NFTs, as I said, love hate relationship with them and you and I get into debates about them quite often, actually. Uh, so yeah, I mean, I hope they prove me wrong. I hope they can be more than just what we've seen over the last, you know, year or so of just constant scam PFP things coming out and just like extracting money. I wanna see metaverses. I wanna see cool shit built.

• 59:40Speaker 01

  I wanna see actual products and you and services built around them. That's just my kinda like take on NFTs, maybe more generally.

• 59:47David Hoffman?

  It does seem to be the new meta for NFTs that if you aren't creating a metaverse, then your NFT is like not playing the game. Like every single NFT needs its own metaverse. Uh, this is where like ape coin, uh, Dow started talking about ape chain. Uh, having an own independent blockchain and having your own independent metaverse really goes hand in hand. Uh, and I totally see a world where every single NFT, PFP profile, picture, whatever, uh, that wants to really invest in itself, creates its own layer two or its own blockchain, be it, I guess, if they're doing their own chain, then the theme of the week is like abandoning Ethereum. Uh, we also know how that turns out, uh, in the long term. Anyways, moving on into regulation and TradFi stuff.

• 1:00:28David Hoffman?

  Tesla CEO Elon Musk accused of Dogecoin Ponzi scheme in new class action lawsuit. Elon Musk is facing a class action lawsuit over his Dogecoin hype fest. The complainant alleges Musk's tweets and public messaging drove a significant price spike in Doge and encouraged people to invest. Those people ultimately feel the fallout when Doge price took a nosedive. Anthony, any comments on this?

• 1:00:51Speaker 01

  I mean, I'm honestly just sick of Elon Musk and his pumping of Doge. Like, I don't think that he's responsible for what people do. Like, if people want to buy Doge because he tweets about it, that's on them. But I'm just like, always of the same opinion that I've been off for a while, that he could be using his platform to educate people about crypto and more generally, instead of just funneling them into some retail slaughterhouse. Because a Dogecoin is not a scam, right? It was not started as a scam or anything like that. It's actually one of the fairest-launched coins in crypto, to be fair. But the thing is, is that like, it's treated and abused as a retail slaughterhouse because traders just kind of like trade it whenever they know that retail's here and they can make some money off of it. It has no kind of like fundamental value at the end of the day backing it up.

• 1:01:35Speaker 01

  And no one really cares to hold Dogecoin for the long term or anything. So, that's just my overall opinion on it. And I really wish Musk would just use his platform for better crypto things.

• 1:01:45David Hoffman?

  Yeah, he does seem to be a chaotic neutral on Twitter at this point. And sometimes that chaos leads into the negative territory, especially when it comes to financial assets. Ryan Sean Adams, the AI robot that's not here today, says, "Sorry dude, Elon Musk wasn't responsible for you buying fake internet money based on a dog meme. You did that to yourself." Got to take responsibility when you buy some assets. Okay, all right, moving on into the world of jobs. There are always jobs, there's always hiring going on in the world of crypto. So this is the Bankless Jobs Board. You can go and go off the shelf and pick a job off the shelf here at bankless.pallet.com/jobs. We're going to read some of these out. We got a CTO job at Alliance Dow, got a software engineer, a full-stack software engineer

• 1:02:29David Hoffman?

  also at Alliance Dow, senior software engineer and executive assistant all at Alliance Dow. A solid Engineer at Otter Space, a front-end engineer at Abstract Ventures, a founder, you can become a founder, do you know you can become a founder on a job board? Who knew? And founder and CEO of a Web3 community analytics platform, Boolean Labs, Twitter specialist at Bankless. If you can write good tweet threads, let me know. Also a research engineer at Blockchain Capital, a tech lead at Swell Network, that's a staking as a service, DAO that we talked about earlier, and many, many, many more. We got Argent, we got Tally, we got DeFi Yield, we got a hiring coordinator at Ethereum Foundation. There are so many jobs. So go to the link in the show notes and get a job,

• 1:03:10David Hoffman?

  bankless.pallet.com/jobs. Also, if you think that you are highly talented and you don't see a job right for you, you can also post your resume, post your profile to the bankless.pallet.com talent board, and you can have the jobs come to you. So get a job in crypto. That's why we're going to buy the dip with all the money that we're going to get from our new crypto jobs. Isn't that right, Anthony?

• 1:03:36Speaker 01

  Yeah, well, I'm not going to get a crypto job, but I think everyone should. I already have a crypto job, right? I do the other way. But I think that if, look, my honest kind of like take on just jobs in crypto in general is that getting them in a bear market is better than getting them in a bull market. I think in the bear market, there are a lot more honest teams, there's a lot more sustainability, and a lot more things that are just interesting. And there's a lot less crazy, so you can actually take your time as well. But yeah, if you're listening to the weekly roll-up every week, and you love crypto, and you're not working in crypto yet, well, now's the perfect time to get involved, in my opinion.

• 1:04:09David Hoffman?

  Yeah, music to my ears, man. All right, quickly into the world of releases and raises. Immutable X and the Immutable ecosystem announces a $500 million fund to accelerate the adoption of Web3 games and projects. And so they aren't just like sprang and praying, there are these, you have to apply for some of this money. They have a split between ventures and grants. And they say they've taken insights from Gos and Chain, Guild and Gargan, and hiring some of the best people from leading studios. Riot Games, I actually met somebody who works at Immutable at Riot Games here in NFT NYC. They are taking the knowledge that they have from that ecosystem to help spin out a grants program using this $500 million.

• 1:04:50David Hoffman?

  And there's also venture arms as well. So they are putting money into the people that are investing in the world of gaming. And that is that details there. Tether launching a British pound peg stablecoin. So if you use the British pound, you have a stablecoin that you can use now. I don't expect too many people to be using that, but some do, some do. And then of course, actually I'll pause there, Anthony, and get your takes on these two, these two things.

• 1:05:16Speaker 01

  Yeah, I mean, look, I think I was talking to you about this recently and I mentioned it on my show as well. If anyone's going to prove me wrong about crypto gaming, it's going to be immutable. Like I am a bear on crypto gaming thus far, just because what we've seen so far has not really appealed to me. Especially as an actual gamer who gamed for most of his life before he found Ethereum. That's basically what I did with all my time and now it's just Ethereum. But I think a lot of the crypto games we've seen are really just Ponzi's with a coat of gaming on them. So if anyone's going to prove me wrong and build better things, it's going to be immutable. And this is a massive fund. This is half a billion dollar fund going towards this. And this is on top of the other funds already as well. Like Polygon has huge funds for gaming too. There's a few other ecosystems that are doing it.

• 1:05:55Speaker 01

  Like when we, when I kind of look at this, I'm like, okay, well, something is going to come out of this. Something really cool is going to come out of this. They're going to onboard the right people. They're going to build really cool things. So I'm just like super pumped to see what they come up with and if they can prove me wrong here. Like I'm bullish on immutable. I'm bullish on their ability to prove me wrong. That's for sure.

• 1:06:13David Hoffman?

  Yeah, a hundred percent. They really make this process painfully easy on their, on their website, immutable.com/fund. Submit an application. It'll get reviewed by a panel. Successful applications will be contacted and then you will be funneled either into the grant or the venture arm, depending on how that ends up. Here's something that's interesting. Ex sushi CTO Joseph DeLong raises $8 million for an NFT lending platform named Astraria?

• 1:06:39Speaker 01

  Astaria, I think.

• 1:06:41David Hoffman?

  Astaria, thank you. The platform that subtitles reads, led by CEO Justin Bram and DeFi veteran Joseph DeLong aims to provide instant liquidity for your JPEGs and should be available to the public by September. That's pretty cool. Anthony, what are your, what are your thoughts on here?

• 1:06:56Speaker 01

  Well, my thoughts are that I'm an investor. I participated in this round. I just want to get that out of the way. But I think that it's really cool. Justin Bram, for those who don't know, has his own YouTube channel where he does a lot of different kind of like DeFi guides and things like that. And he's really, really passionate about kind of everything Ethereum, everything crypto. So I really love his energy and I consider him a friend. And same with Joseph DeLong, you know, obviously had a stint at Sushi. Before that, he was doing a bunch of Ethereum core developer stuff and things like that. So I saw them teaming up and I was like, you know what? I think this is a cool idea. I think these guys are gonna are gonna pull it off. They're smart enough, they're passionate enough. And that's kind of like why I backed them here. But I think there's NFT lending platforms, there's a few of them now. I do think that they're gonna be a big thing because NFTs are gonna be a big

• 1:07:39Speaker 01

  thing or already are a big thing. And, you know, you don't want to have to kind of like not be able to, I guess, get liquidity on your NFTs and be stuck with it. Like, how many people want to be able to put their NFTs as collateral and borrow against them? There's probably heaps that want to be able to leverage trade NFTs or something. I can imagine that happening and the craziness around that. But I think, you know, I'm super excited to see where they go with this, that's for sure.

• 1:08:04David Hoffman?

  Yeah, totally, totally. The world of NFT liquidity is just in the first hour of a very long, long timeframe of getting more liquidity infrastructure. I mean, we talked about Uniswap acquiring Genie, an NFT marketplace aggregator. There's like liquidity platforms like this NFT lending platform coming about. There's this overall so much financialization left in the world of NFTs. The last raise of the week, Magic Eden raises $130 million, hitting the unicorn status at $1.6 billion valuation, which is an NFT marketplace, which actually just launched nine months ago, raises $130 million in a Series B led by Electric Capital and Greylock Partners, bringing, like I said, its valuation to $1.6 billion. Anthony, any comments on this before

• 1:08:49David Hoffman?

  we go to the next part of the show?

• 1:08:51Speaker 01

  Yeah, I mean, Magic Eden, from my understanding, is basically the OpenSea of Solana. And this and kind of like just basically trying to do what OpenSea does on Ethereum and Polygon, but on Solana instead. And yeah, they only launched a short while ago and they've had some some kind of some impressive growth there, which is cool to see. And actually, one of their founders was the previous COO, I believe, at DYDX, funny enough. His name is Joshin. He's a friend of mine. But yeah, I think that it's it's cool to see like how many NFT marketplaces there are, because it's going to lead to a lot of competition. I didn't like I don't like that OpenSea had a monopoly for so long, because we saw all the kind of, I guess, negative externalities of that.

• 1:09:33Speaker 01

  Now they have a lot of competition, not just on Ethereum, but on other chains as well. So I think OpenSea did announce that they were going to go to Solana, but it's not like they're going to be able to go to Solana and automatically be the the big gaming town, right? Like, they're going to have to compete with Magic Eden now. And competition is just good for everyone at the end of the day. So cool to see this. And you know, maybe Magic Eden comes to Ethereum and it's like, well, let's see what we do on Ethereum. Let's see what we how we can compete here. So, you know, we'll see how it plays out. But yeah, huge, huge, I guess, raise and huge evaluation. Yeah, that's for sure.

• 1:10:04David Hoffman?

  Yeah, we got competition between Layer 2s, between Arbitrum and Optimism. We got competition between NFT aggregators and NFT exchanges. We got competition with staking as a service networks coming online. The competition in DeFi building, crypto building right now is at all time highs. And of course, like you said, it's always ultimately good for the consumer. All right, fam. Coming up next, we got the takes of the week. We got the questions from the nation. And then I'm going to ask Anthony what he's bullish about. And then that will conclude this this show with substitute teacher Anthony Sazano. We're going to get to all of those things and more right after we get to some of these fantastic sponsors that make the show possible. The Layer 2 era is upon us. Ethereum's Layer 2 ecosystem is growing every day, and we need bridges to be fast and efficient in order to live a Layer 2 life. Across is the fastest,

• 1:10:49David Hoffman?

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• 1:11:33David Hoffman?

  You can stake your ETH with Rocketpool and get our ETH in return, allowing you to stake your ETH and use it in DeFi at the same time. You can get 4% on your ETH by staking it with Rocketpool, but you can get even more by running a node. Rocketpool is the only staking provider that allows anyone to permissionlessly join their network of validating nodes. Running a Rocketpool node is easier to set up than running a solo node, and you only need 16 ETH to get started. Why would you do this? You get an extra 15% staking commission on the pooled ETH, so your APY is boosted. So if you're bullish ETH staking, you can increase your APY and get some extra tokens by adding your node to the decentralized Rocketpool network, which currently has over 1,000 independent validators. It's yield farming, but with Ethereum nodes. You can get started at rocketpool.net and also join the Rocketpool community in their Discord. You can find me hanging out there sometimes in the chat, so I'll see you there.

• 1:12:17David Hoffman?

  All right, Bankless Nation, let's get into the questions of the week. We just got one question coming from Web3rd. Web3rd says, "How much harder is it to get a job in crypto? Now, if layoffs have flooded the Web3 job market with talent, I mid-career changed from non-technical to technical, almost done with a computer science masters, and was about to start the job hunt, but my experience still seems too low, especially with limited positions. Anthony, any thoughts or perspectives that you could give Web3 about getting a job in crypto now that a bunch of layoffs are happening from some of the bigger companies in the space?"

• 1:12:50Speaker 01

  Yeah, look, I think that is definitely going to play into it. There's definitely going to be a lot of, like, people now, thousands more people to compete with than there was before, maybe even tens of thousands more than there was before just because of these layoffs. And there may be a slowdown of hiring due to just the bear market generally and teams not having as much runway as they thought they would be able to and not raising what they thought they would be able to. So that's definitely going to play into it, but I think that if you're kind of like doing your CS masters, obviously complete that, finish that up. And I think that, look, you're not going to be at the kind of like skill level of someone who'd already completed it, already kind of like worked for one of these companies and has already got a bit of experience under their belt.

• 1:13:29Speaker 01

  But that doesn't really necessarily mean anything. Like there's plenty of junior positions still out there. There's plenty of entry level positions for you to kind of apply for. And get, and I think what really matters for a lot of teams within crypto is that you're a crypto native. And I think crypto projects and teams would like to hire people from the ecosystem rather than hiring them from the web two world directly. Because crypto culture is not something you can teach. It's something that you have to just go and learn yourself and go on your own journey for. So I, from my experience, teams really do love those crypto natives. So if you're a crypto native already, I mean, you're listening, you're probably listening to the roll up, right? Listening to me answer your question right now, then you're already ahead of the pack, I think, or ahead of a lot of people that would be coming into this ecosystem. So I guess head up, don't, don't be discouraged, you know, and I, I think you'll be able to find something, that's for sure.

• 1:14:14David Hoffman?

  Yeah, and I will say the companies that are doing the big layoffs are the ones that scaled really, really aggressively. And one of my critiques of Coinbase, I'd say, is that they scaled with, they scaled so fast, so quickly that there literally wasn't enough web three people to hire. So they had to hire non crypto people, non crypto natives, who kind of like, you know, so you can't force people to care about crypto. People choose to care about crypto and that's what makes them a crypto native. And so Coinbase hired a bunch of like, you know, normies, right? Like web two people, TradFi people, and those people aren't necessarily like beholden to the crypto industry in the same way that crypto natives are. And so when Coinbase lays off a bunch of people, you know, some certainly are going to stick in, inside the crypto ecosystem.

• 1:14:57David Hoffman?

  But I would also definitely say that some are just going to look elsewhere and be like, you know, crypto's, I don't want any more crypto, no more crypto for me. So I think like, and the companies that scaled that, that fast, that aggressively are probably more composed of a bunch of non crypto natives than they are crypto natives. So I wouldn't say that like if there, if you see these big companies laying a bunch of people off, that therefore all these people are coming into the web three job market. I think the web three job market is really owned and operated by crypto natives. And being a crypto native is a huge mark on your resume. If you can, if you can, a good mark, not bad mark. If you can prove your crypto nativity. Then that is just like, if you can speak DeFi, if you can speak the language, if you speak the lingo,

• 1:15:38David Hoffman?

  if you stay up to date with things, that can be a huge value add to who you are as an applicant. And so, learning to be crypto native and being crypto native is going to make you be highly competitive versus other applicants who don't have those properties.

• 1:15:56David Hoffman?

  Alright, that's our one question of the week. So into the takes of the week as well. We got some spicy takes. This is from Smoosh Axie. "Soulbound NFTs are like digital tattoos. Once minted, they're permanently a part of your wallet. People viewing your wallet will always know this culture identifier is or was important to your digital identity. Minting may require levels of premeditation similar to getting a tattoo." And this is of course, coming on the backs of these soulbound NFTs, decentralized identifiers, verifiable credentials conversation that's been sweeping crypto Twitter lately. Anthony, any takes on this take?

• 1:16:31Speaker 01

  Well, I mean, it depends on how the soulbound NFT is constructed, right? There could be an escape hatch where you could just kind of like be able to send it to the burn address, for example. Like you can't send it to anyone else, but you can send it to the burn address where it just goes into the void and no one has access to it. So in that respect, I mean, it probably, the analogy still fits. I guess probably sending it to the burn address would be like getting the tattoo removed by like lasers or something like that, right? So I think the analogy works even if you think too hard about it, like what I tend to do sometimes, I tend to think too hard about it. But yeah, I mean, you got this reply up here. You want to read that out?

• 1:17:07David Hoffman?

  Yeah, there's a reply here. It says, "Great analogy if you completely ignore that it's possible to have a tattoo removed and that someone could just sell their wallet in which your tattoo will be the same thing as selling an arm or a leg." Actually, it's a little bit more reasonable to sell a wallet, yeah.

• 1:17:21Speaker 01

  Well, I mean, yes and no. Like, well, it basically, you'd have to kind of make sure it has nothing in it and has access to nothing else. And the thing is, why would anyone else want that wallet when you have access to it as well, right? They wouldn't be able to use it for anything else.

• 1:17:35David Hoffman?

  Yeah, you wouldn't have any assurances that the person that is selling the wallet might actually just keep the private keys.

• 1:17:40Speaker 01

  Exactly.

• 1:17:41David Hoffman?

  Anyways, a bunch of things to explore in the world of Solval NFTs and decentralized identifiers. Anna Rose, who is the podcast host of Zero Knowledge, a podcast I think is one of the best podcasts in crypto, and I know a thing or two about podcasts in crypto. Anna Rose tweets out, "DeFi Legos versus C-Fi Dominos." Anthony, what do you think she means by this?

• 1:18:04Speaker 01

  Well, DeFi, building strong, building sustainably, building up like Legos do, and C-Fi Dominos falling like Dominos do, right? They do. There's a lot of contagion between the C-Fi applications and things like that. But again, this is another analogy that if you think too deeply about it, it maybe breaks apart a little bit because people thought that Terra was DeFi and the USD collapsing brought down everything on Terra. So there was a domino effect there. But yeah, I think it's kind of like funny analogy when you think about it.

• 1:18:38David Hoffman?

  All right, last take of the week. Vance Spencer coming in with the spiciest take of them all. Coinbase is a great company, but needs to stop dicking around with this trash. If you spent five minutes on crypto Twitter, you know pond, the token pond, isn't legit. Stop the retail meat grinder. Ship staking, ship basic features like USD to USDC on prime. Improve custody, get better analytics, launch futures. And Vance is retweeting a tweet from Coinbase Exchange saying that our pond USDT trading pair will now enter limit-only mode on Coinbase Exchange, Coinbase Pro. Basically, he's critiquing Coinbase's listing of all of these weird tokens that no one seems to use, that no one seems to understand why they are listing. Anthony, any takes here?

• 1:19:23Speaker 01

  Yeah, I mean, it's no secret that Coinbase is both listing for trade and also listing as part of their custody solution, these absolute trash tokens that some of them aren't even on CoinGecko, which is just so bizarre. They must just go down the list on CoinMarketCap and go to the shittiest tokens and be like, "Oh yeah, this one seems good. Let's add this one." And for anyone who's been following Coinbase for a little while now and some of their decisions, it's just puzzling, right? They should be focusing on so many other things, but it seems that they're focusing on just this absolute trash. It's just really weird.

• 1:19:55David Hoffman?

  Yeah, here's an interesting take. Seb from Zapper, I believe, yeah, says, "I think it's a twofold issue. Drawing the line on which tokens to list and which tokens not to list is either an everything or nothing line. So like, either list everything or only do like the most high quality." Fun fact, once upon a time Coinbase was only Bitcoin, Ether, and Litecoin for a very long time. And then he also follows up saying Uniswap is also an existential threat, implying, "Well, if you can get liquidity on Uniswap, Coinbase needs to list absolutely everything in order to be competitive." So I think that's a fair take.

• 1:20:30Speaker 01

  It's a fair take. I do think Uniswap's gonna kill off most of centralized exchanges. Well, not just Uniswap, but the centralized exchanges are gonna kill off most centralized exchange activity anyway over the long run, except maybe for fiat on-ramps. So I guess, yeah, I don't know. I don't know if Coinbase listing everything is gonna really stop that.

• 1:20:47David Hoffman?

  All right. That is the last takes of the week. I haven't told Anthony that we always talk about what we're bullish on at the end of the show, but I'm gonna ask you live, Anthony, right now. Anthony, what are you bullish on?

• 1:20:57Speaker 01

  So, this might be a funny thing to say, but I'm bullish on the bear, right? I'm bullish on the bear market because we do our best building in a bear market. We do our best innovation in a bear market, and it's much easier to pay attention and focus on things in a bear market. So I'm just overall much more kind of like bullish on the bear market than a lot of people are. I think it's a great time to get involved with crypto, whether that's to work within it or do something within it as like a hobby. Obviously, I think it's a, like, I mean, I've been stacking ETH lately. I can't believe ETH is kind of like at these prices and things like that. So I just look at the bear market as both a gift and an opportunity, and that's why I'm bullish on the bear. And, I mean, other than that, like, obviously, just bullish on Ethereum generally. The merge is coming

• 1:21:41Speaker 01

  still. The market doesn't matter about, like, for the merge. It's not like the merge gets pushed back because the market goes down in value or something like that. So, yeah, just bullish on the bear is kind of like how I would describe it.

• 1:21:52David Hoffman?

  Yeah, then that's exactly the sentiments that we echo here on Bankless as well. So you fit in right in, Anthony. You guys at Bankless Nation can tell why we bring Anthony on every time the AI is powered down. And let's actually take a moment to talk about what you're up to over at the Daily Guay. For people that do not know, Anthony Sazano, and aren't familiar with the Daily Guay, I can't imagine that they aren't, but in case they aren't familiar, can you tell us a little bit about what you do over at the Daily Guay?

• 1:22:18Speaker 01

  Yeah, so the Daily Gway is an Ethereum education system, much like Bankless. Every day on my YouTube channel, I'll do like a 30-minute video of basically the Ethereum ecosystem, kind of recapping what's happened, giving the news there. I'll also write a daily newsletter about Ethereum, just commentary about something in Ethereum. And there's a Discord channel that's very, very active. We have a really great community in there, so if you want to be part of a very, very Ethereum native, I guess, pretty much on the verge of Ethereum maximalist community, then the Daily Gway is definitely the place to be for you.

• 1:22:49David Hoffman?

  Certainly. It's been, it's a fantastic resource for me as well, so I appreciate all of the labor that you put into the Daily Gway, Anthony. It's a relentless amount of energy. And Anthony, this is where you have to ask me about what I'm bullish about.

• 1:23:02Speaker 01

  Okay, what are you bullish about, sir?

• 1:23:05David Hoffman?

  Oh, I'm so glad you asked, Anthony. I'm bullish on Josh Rosenthal, the guy, the podcast guest that created the Crypto Renaissance podcast, very famous podcast episode in the Bankless ecosystem, returns to Bankless. He's coming back on July 4th, Independence Day for the Freedom Burgers out there. And so we have a themed episode, an Independence themed episode, coming on July 4th, Monday, July 4th. Really excited to record that one, recording that a week from tomorrow with Josh Rosenthal. And so really excited to get that episode recorded. Always want to hear about what Josh Rosenthal has to say.

• 1:23:44Speaker 01

  I'm excited for that, too. I loved his first podcast that he did with you guys. So yeah, I'm definitely excited for that.

• 1:23:50David Hoffman?

  Yeah, and as the person that usually puts the agenda together for these podcasts, Josh Rosenthal gave me 19 pages of notes to turn into an agenda. Oh my God, he has put in some work. And so he's got some things to say, and I'm excited to hear it. All right, Anthony, very lost power of the show. Ready for the meme of the week?

• 1:24:11Speaker 01

  Yeah, let's do it.

• 1:24:12David Hoffman?

  Meme of the week. This is Kalio on Twitter. He tweets out, "Don't worry, guys, I'm sure it'll hold." And the picture is of a SWAT team with a battering ram. The battering ram is the global recession. The SWAT team is three hours capital and Celsius insolvency. And of course, the door is being held by a cheeto, and that cheeto is labeled 20K Bitcoin support. So far, has been holding, however. We are above $20,000 Bitcoin. Anthony, any comments on this meme of the week?

• 1:24:41Speaker 01

  I mean, we went below it, so I guess like it broke and then someone put another cheeto in there to get us back above 20k. So let's see if the second cheeto can hold stronger than the first one.

• 1:24:51David Hoffman?

  Oh, yeah, that's, that's, that is the idea. Maybe we just needed two cheetos, two cheetos to get this done.

• 1:24:58David Hoffman?

  Anthony, thank you so much for stepping in for Ryan during this bankless weekly roll up. Like I say in the beginning, if you have not yet liked and subscribed, please go do that. Click that button on the YouTube right now. And if you're listening to this on the podcast, go rate and review because of, like I say, the ETH price and the five star reviews on bankless are highly correlated. So the bull market only begins when you give us those five star reviews. Anthony, thanks a lot for joining me, my man. Cheers. Thank you for having me. Risks and disclaimers, everyone. Crypto is risky, DeFi is risky, Bitcoin and Ether is risky, NFTs are risky. It's all risky. Also, not being in crypto, also risky. So consider getting a job in crypto. Anyways, meanwhile, we are on the frontier. We're headed

• 1:25:39David Hoffman?

  west. We are so glad you're with us on this bankless journey. I cannot do this from memory, but I'm close enough. So thank you for joining us this week on the Friday weekly roll up. Cheers. 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, raffles and unlocks. If you're interested in crypto, the bankless community is where you want to be. Click the link in the description to

• 1:26:23David Hoffman?

  become a bankless premium subscriber today. Also, don't forget to subscribe to the channel for in-depth interviews with industry leaders, ask me anythings and weekly rollups where we summarize the week in crypto and other fantastic content. Thanks everyone for watching and being on the journey as we build out the bankless nation.