ROLLUP: 2nd Week of June (El Salvador, Elizabeth Warren, Bitcoin FBI Ransom, Polygon & Arbitrum)

Download the crypto meta to your brain in this weekly show. 4th Week of May, 2021 ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ 🎖 CLAIM YOUR BADGE: https://newsletter.banklesshq.com/p/-guide-2-using-the-bankless-badge ------ BANKLESS SPONSOR TOOLS: 💰 GEMINI | FIAT & CRYPTO EXCHANGE https://bankless.cc/go-gemini 🔀 BALANCER | EXCHANGE & POOL ASSETS https://bankless.cc/balancer 👻 AAVE | LEND & BORROW ASSETS https://bankless.cc/aave 🦄 UNISWAP | DECENTRALIZED FUNDING http://bankless.cc/uniswap ------ Topics Covered: 0:00 Intro 2:15 MARKETS 2:25 BTC Price Fear & Greed: https://twitter.com/BitcoinFear 4:48 ETH Price Fear & Greed: https://twitter.com/EthereumFear/status/1402566188144726021?s=20 7:47 ETH/BTC Ratio Episode w/ Ledger: https://shows.banklesshq.com/p/-sotn-49-the-state-of-the-charts 8:57 DeFi Action 12:08 Cooldown https://twitter.com/joel_john95/status/1402177944001269760?s=20 15:49 NFT Bubble https://protos.com/nft-market-bubble-popped-crypto-collectibles-are-over/ 18:39 ETH Trading Volume https://twitter.com/RyanSAdams/status/1402240262911496192?s=20 20:10 DeFi Lending Protocols https://twitter.com/tokenterminal/status/1401901076903776260?s=20 22:00 RELEASES 24:00 Uniswap V3 on Arbitrum https://twitter.com/Uniswap/status/1400847744596598792?s=20 27:45 Graph Protocol on Arbitrum https://twitter.com/arbitrum/status/1402023407609421830?s=20 28:11 Uniswap V3 Calculator https://uniswapv3.flipsidecrypto.com/ 34:33 Curve Volatility Algorithm https://twitter.com/curvefinance/status/1402673150425509890?s=21 37:00 Polygon Polygon Scan: https://twitter.com/0xPolygon/status/1402590551619162116 HopProtocol: https://twitter.com/HopProtocol/status/1397983455821041664 OKEx Withdrawals: https://twitter.com/OKEx/status/1402630589551890436 Matcha Aggregator: https://twitter.com/matchaxyz/status/1402645756834553864 42:45 NEWS 42:55 El Salvador The Bill: https://twitter.com/nayibbukele/status/1402446890466217985?s=20 Thread: https://twitter.com/CaitlinLong_/status/1401334421773504517?s=20 Volcano Mining: https://twitter.com/jack/status/1402773957653241861?s=20 1:02:25 NFTs on Aave https://metaversal.banklesshq.com/p/nfts-are-coming-to-aave 1:04:09 Bitcoin Ransomware Attacks FBI Recovers: https://twitter.com/ericgeller/status/1401973177346109443?s=20 $11M Payment: https://www.coindesk.com/ransomware-jbs-holdings-meat-producer 1:07:25 Microstrategy BTC Bond https://twitter.com/Blockworks_/status/1401881368355876868?s=20 1:13:22 Elizabeth Warren https://twitter.com/senwarren/status/1402725005113364486?s=21 Knives Out: https://twitter.com/nic__carter/status/1402755502715645953?s=20 1:20:55 Quick News Takes IRS: https://www.theblockcrypto.com/post/107590/irs-seeks-millions-in-fresh-funding-to-expand-crypto-tax-enforcement-and-hire-outside-experts CFTC: https://www.theblockcrypto.com/linked/107769/cftc-commissioner-criticizes-defi-decries-lack-of-intermediaries Consumer Inflation: https://www.usinflationcalculator.com/inflation/current-inflation-rates/ Amazon DeFi: https://twitter.com/CoinDesk/status/1402223350563344385?s=19 BlockFi Raise: https://twitter.com/fintechfrank/status/1402344595279822853?s=20 Ledger Raise: https://www.theblockcrypto.com/post/107775/ledger-380-million-series-c-raise-dan-tapiero-10t-fund Solana Raise: https://www.theblockcrypto.com/post/107749/solana-labs-raises-314-million-funding-a16z-polychain-capital Coinbase 401k: https://www.theblockcrypto.com/post/108034/coinbase-forusall-401k-advisor-crypto-retirement-accounts 1:24:30 TAKES 1:25:20 New Vision for Crypto https://twitter.com/TheStalwart/status/1401842475564687361 1:27:30 Gen Z is Coming https://twitter.com/ryansadams/status/1402462536419753985?s=21 1:29:25 Single-Sign On https://twitter.com/BrantlyMillegan/status/1402388133086367751 1:31:14 BTC Physical, ETH Digital 1:34:09 Listener Question 1:36:25 What David’s Excited About 1:38:22 What Ryan’s Excited About Panel: https://www.youtube.com/watch?v=9mUCFRu4fkk 1:40:50 MEME OF THE WEEK https://www.reddit.com/r/ethtrader/comments/nvojaa/this_is_exactly_why_i_want_to_go_bankless/ ----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures

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

• 0:06Ryan Sean Adams?

  Bankless Nation, it is Friday morning, the second week of June. Roll-up time. David, you ready for roll-up time?

• 0:11David Hoffman?

  Ryan, I'm always ready for roll-up time. It's honestly my favorite piece of content that we produce here on the Bankless program. It's the most fun.

• 0:20Ryan Sean Adams?

  Just so consistent. Every week, we bring you markets releases, news takes, what we're excited about. It causes David and I to go in-depth on the week too. Make sure we absorb all of the headlines. So, super exciting. This comes at you every Friday morning, so you can enjoy it with your morning cup of coffee. YouTube, I think, is the best way to view this because we've got lots of visuals. But if you are podcast-only, enjoy it on the podcast feed too. David, before we get to the first section, we've got to announce something that's kind of exciting. This is a partnership between the Bankless DAO and Pi DAO, which is an index, a DeFi index organization, and they are also a DAO.

• 1:01Ryan Sean Adams?

  And they've created a way to earn liquidity. Do you want to talk about this for a bit?

• 1:07David Hoffman?

  Yeah, this is something I think where the through-line is really about DAO-to-DAO partnerships, right? Pi DAO wants liquidity and asset deposits, and it is incentivizing the Bankless DAO to both submit liquidity, which is what the Pi DAO wants, but also use a referral link to generate referral fees for Bankless DAO. And like I said in the Future of Work article that came out on Bankless last week, the future of work is like DAO-to-DAO relationships. We can bootstrap these things ourselves. So if you go to the link in the show notes and you deposit liquidity and stake your LP tokens, you get a pretty healthy yield, at least at current DAO prices.

• 1:48David Hoffman?

  Right now, you are getting 375% APY at current liquidity and current DAO prices, so big asterisk, on the Play-to-DOW LP. And then on the DAO-to-EATH LP, you're getting 290% again at current liquidity prices and current DAO prices, which are pretty awesome yields. If that is something that you are interested, click in the link in the show notes, and Bankless DAO gets the referral fees.

• 2:10Ryan Sean Adams?

  There you go. There's a whole how to guide. If none of that made sense to you, read the how to guide and you will learn more. All right, David, you ready to get into this?

• 2:17David Hoffman?

  Let's do it, Ryan. There's so much to talk about this week, per usual.

• 2:20Ryan Sean Adams?

  I know. I know. All right, market. Let's start there. Bitcoin price, Bitcoin still number one, last I checked. How's Bitcoin price hanging this week?

• 2:28David Hoffman?

  Yeah, Bitcoin touched a low of right below $32,000, which again was really, really spooking people. But then the El Salvador news came and Bitcoin pumped from $32,000 all the way up to $3,700 and $800. And now we are at the current price of $36,800 with the Bitcoin price. Uh, we had our state of the nation with Ledger status and he kind of schooled us on TA and analysis and he kind of pointed out how broken the Bitcoin chart looked and how scary it looked.

• 3:02Ryan Sean Adams?

  It doesn't look awesome.

• 3:03David Hoffman?

  It doesn't look awesome. But my, my take is that this El Salvador news could be the news to help repair the Bitcoin chart. Uh, it's very, it's very plausible. It's, it seems to be an easy take to say that this El Salvador news is going to what paints the floor of the Bitcoin price. Possibly, possibly.

• 3:24Ryan Sean Adams?

  Interesting. We'll, we'll definitely see. Uh, the charts don't lie is what I learned from, from Ledger. Um, but there's still a lot of fear in the markets, David. This is the, the feed, the fear and greed index uh, from an organization that monitors sentiment for, for Bitcoin. We're still in the extreme fear zone. And I think this is on the back of just a lot of, um, you know, downward price action, but also energy, um, fear, uncertainty and doubt going on in the market, even some regulatory clampdown talk. So that, that extreme fear sentiment is, uh, is still pretty active for Bitcoin. Any thoughts there?

• 4:03David Hoffman?

  Yeah, Bitcoin has had an insane amount of headwinds, especially coming from the regulatory environment. We've got the energy crisis for Bitcoin, which they are still fighting. Now we have these ransomware attacks. Bitcoin is having some PR troubles. And for me, that's where I get a little bit of my fear is like, can Bitcoin overcome these PR issues? Because there's a decent amount of the people of the world that are going after Bitcoin right now that don't care about realities and are just going for narratives. We're going to be talking about this in the weekly rollups, but like, the anti-Bitcoin narrative is growing from people who don't care or know about Bitcoin.

• 4:42Ryan Sean Adams?

  Yeah, absolutely. And we'll see if that El Salvador news, which is going to be a big topic this week, is enough to combat that. Okay, let's talk about ETH price. So we're hanging at 2,500 at the time of recording. So we are down on the week. What's going on here?

• 5:00David Hoffman?

  Down on the week. The weekly high is just above $2,800. The weekly low is just below $2,400. And we are at the current price of $2,506. Flat on the week. So that means that liquidity providers are probably pretty happy because they're generating the liquidity fees. But people long ETH are probably, again, like, kind of antsy. If you're long ETH, you want it to be higher than where it is right now. Kind of in the same vein as Bitcoin. Like, we are really looking to have some like, support and catalyst to really make sure that, you know, this doesn't, this whole entire like, weekly or two weeks of price action just doesn't break down.

• 5:36Ryan Sean Adams?

  Let's look at the greed and fear index again for ETH. So we're not in extreme fear for ETH, according to market sentiment. So again, this analyzes social media channels, all sorts of sentiment indicators. But we are squarely in the fear zone. That feels about right to me. I think ETH holders are still doing okay, still feeling good about the gains on the year, but also a bit fearful. I think the big question comes out is like, the question we asked Ledger. Hey, what's going to happen next? What do the charts tell us? Are we going back into a bear market? Like, is the bull run over? Or, you know, will Bitcoin drag ETH down? What's going to happen in the future? That that remains kind of the question.

• 6:21Ryan Sean Adams?

  One of, one of the possibilities Ledger laid out, which I don't think has been clearly articulated on, on Bankless before by a guest is just that, hey, what if we're just flat for the entire rest of the year?

• 6:34David Hoffman?

  The whole year.

• 6:35Ryan Sean Adams?

  The entirety of 2021. And that's definitely a possibility, too.

• 6:38David Hoffman?

  And what he said is that if we are flat for the year, that hurts because everyone is expecting up. When everyone is expecting up and you get flat, that is down from expectations, right? So that's bearish versus expectations. And so it seems like it's in the cards and like that being flat is actually causing fear. And that's kind of, that's kind of what happens when like you get, kind of get used to up and to the right only. All of a sudden, flat is bearish.

• 7:06Ryan Sean Adams?

  Yeah, me personally, David, I'm not in that fear zone. Like, I'm not concerned at all. I'm probably closer to the, to the yellow, green zone. I just think even a flat year actually feels, feels really good to me at this point in time, because it clears out a lot of the folks who are just here for short-term gains. But it would be a break in the cycle. Like crypto hasn't traditionally, you know, had such a short bull run and then gone back to flat zone before a steady rise up is in the way that Ledger was describing. So we'll have to see how this plays out. If you are long-term on the journey, of course, this doesn't factor in as much to you. The weekly ups and downs don't matter, but let's look at the ratio, ETH to Bitcoin ratio.

• 7:51Ryan Sean Adams?

  So what's going on here?

• 7:52David Hoffman?

  Yeah, Ryan, if you want to zoom out maybe to the three-month chart, the ratio peaked out. It was climbing really, really steadily up until right before this El Salvador news. Topped out at point 077 when the ETH BTC ratio high was just a little bit of above point 08. So almost touched the highs that we set a couple of months ago. Then the El Salvador news came and people, Bitcoin had a pump off of its floor. Now we are down to point 067 ETH BTC.

• 8:23David Hoffman?

  Uh, which is still a really healthy number. Uh, and it, I think this indicates, uh, the same thing that Ledger was saying. It looks like it's going to range for a while. It looks like it's going to range between point 055 and point 08 for a decent amount of time. Um, and, and depending on, on, you know, how, how much you want to believe me, it looks like it could, it could range for like, like Ledger said, the whole rest of the year. Um, but again, I don't know anything.

• 8:50Ryan Sean Adams?

  Well, we keep, uh, referring to that else of our news. I promise guys, we're going to explain that in the news section, what's going on there. Let's talk about DeFi though, really quick while we're on the numbers. So kind of flat again on the total locked value metric in DeFi, flattered about 60 billion or so. Anything, anything to talk about?

• 9:10David Hoffman?

  Yeah. 61 billion locked in DeFi. I think the cool thing to talk about is Ave dominance. Ave has taken the number one spot on locked, uh, assets locked in DeFi. Uh, 13.2 billion. Yeah. It used to be Maker as a very recently, but Ave has really sucked in a, a lot of liquidity and, and assets. And some of that is definitely due to their Polygon, uh, integration. Uh, uh, assets locked in Ave on Polygon is going up a lot.

• 9:38Ryan Sean Adams?

  Yeah. I remember a time, David, when, uh, DeFi was concerned that, uh, Maker had too much power and influence and was too, almost like getting too big to fail.

• 9:47David Hoffman?

  It used to have 80%.

• 9:49Ryan Sean Adams?

  Yeah. 80%. Remember there's like a Maker dominance, um, sort of index for, for a period of time. And now it's, uh, hanging out in number two. It's, it's still got that, that silver medal. But, um, wow. The ascent of Ave has been quite a story. I think we'll, we'll talk a bit more about that, but let's talk about the DeFi pulse index. So once again, these, this is an index of the top blue chip. I'd call them, uh, DeFi tokens. And we're down on the week, uh, by a decent bit. What's going on here?

• 10:19David Hoffman?

  Yeah, started the week at just above $400. Now we are at 336. It was a pretty decent dip. Yes, DeFi tokens taking a beating. It's not recovering as well as Ether recovered. And this is, I think, where a decent amount of this fear comes from. Like if people, or a result of the fear, one of the two. When people get fearful, they go risk off and they go up the market cap stack into the more secure assets like Bitcoin and Ether. That's why Ether has dipped versus Bitcoin. That's why DeFi tokens have dipped versus Ether. When people get fearful, they go risk off and they go into more safe haven assets.

• 10:58Ryan Sean Adams?

  Well, let's see how this is working out for you, David. You made a bottom prediction on the DPI to ETH ratio. And oh my God, I don't know if that's held. What was your absolute bottom prediction?

• 11:11David Hoffman?

  The absolute bottom that I'm calling is .13 and we are currently at .134. Except the thing is, like, look at that downtrend. Just like, look at that just straight down and to the right and it almost tried to break out of it, but no. And right now, this downtrend is very much intact. And so your boy might be invalidated pretty damn soon here. We'll see. But it was fun while it lasted.

• 11:37Ryan Sean Adams?

  Yeah, well, I guess what this means is maybe we get layer two summer, but we might not have a DeFi token summer repeat, right? We're entering into DeFi summertime. Last time, DeFi tokens were just starting their ascent in June of this time last year. We may not see that repeat in this summer. It could be a chilly summer.

• 12:01David Hoffman?

  Honestly, I don't think anyone knows what the hell happens next.

• 12:05Ryan Sean Adams?

  True. We'll have to see. Okay. But let's talk about this. The story, I think, in the markets really is a story of cooldown. This is Joel John, who gives some takes on this. Maybe we'll go back and forth on a few, not read them all. But number one is, he says, "I was intrigued because the seven day moving average for volume had begun declining substantially over the past." Few weeks, it peaked at 90 billion for daily volume is currently 44 billion. So he's saying daily exchange, daily volume has peaked and definitely started to to cool off. That's his first take where we're seeing this cool down.

• 12:44David Hoffman?

  It is cooling off from 90 billion, but also if we go back just to two months, the 44 billion like one month, two months ago was actually like the new peak, right? And to some degree like Bitcoin.

• 12:56Ryan Sean Adams?

  Back to March.

• 12:57David Hoffman?

  Yeah, Ether moved really, really fast and also Ether had the most volume out of any asset in the last like two months. And so like, again, like from the peak, it dropped off. But right, like its current level is still really high. And honestly, I'll say the same thing about Ether price, the peak $4,300, really high. Current price of $2,500 comparatively low, but if you go back two months, still kind of flat, right? Like still good.

• 13:24Ryan Sean Adams?

  Yeah, and still definitely above 2017 all time highs. Let's see the second one, David, you wanna?

• 13:30David Hoffman?

  Yeah, Coinbase slipped from the ranking of number two in the App Store to a number 121, implying that there's a lot less downloads of Coinbase, which there's a means just intrinsically means that there's a lot less retail demand. So that very much falls in line with the dropping in volume.

• 13:47Ryan Sean Adams?

  It's kind of cool for a brief period of time Coinbase, the app was bigger than the Cash App from Square. That's pretty cool. Now that's back down. A similar cool off in the number of portfolio apps, so Blockfolio is one. It surged the last few weeks, but Kraken Pro, Etoro Crypto, Blockfolio, from an apps perspective, all sort of trending down, except Blockfolio is somewhat up. So that's another interesting marker of what's happening.

• 14:17David Hoffman?

  Yeah, and another big marker that I remember being very big in 2017 was daily active follows of exchange accounts, Twitter, Twitter, Twitter exchange accounts. The new number of Twitter followers following exchanges has declined from the height of 546 people joining every single week, right now to where it is at 200,000 people following Twitter account, crypto exchange Twitter accounts every single week, again, indicating a declining interest.

• 14:42Ryan Sean Adams?

  I kind of like these social metrics because we don't look at them often, David, so it's worth looking at. Oh, here's one. This is the number of prominent YouTube influencers, crypto influencers. It does not include us.

• 14:56David Hoffman?

  Yeah, what?

• 14:57Ryan Sean Adams?

  It includes people like Ivan on Tech, Data Dash, Box Mining, The Moon, Andreas, Legit, and two others. I don't think we are any of those two others. But anyway, it's gone from a peak of new follows, 130K a week, to just 36K users each week. So it's definitely declined. The YouTube influencer traffic has declined as well. Our numbers are

• 15:23David Hoffman?

  Yeah, if we were there, we would be the outlier, Ryan.

• 15:26Ryan Sean Adams?

  We don't hit these major numbers that some of these other so-called influencers hit.

• 15:30David Hoffman?

  They've been around from 2017, so they have that one up on us.

• 15:33Ryan Sean Adams?

  Yeah, yeah. And look, it's different kind of content. Ours is sort of less. I don't want to slam other influencers, but we're definitely like long-term oriented.

• 15:44David Hoffman?

  We don't have charts up all the time.

• 15:45Ryan Sean Adams?

  We don't have charts up all the time. Okay, let's talk about this, though. The NFT market bubble has popped. We've got the charts to prove it. So it was sort of like a, these charts are saying a near 90% collapse in NFT sales. And I think it was saying that, look, the NFT bubble is three to four months long, and now it's crashed. What do you think about this take?

• 16:13David Hoffman?

  Well, we do know that there were a bunch of terrible NFTs that were getting sold. And so to some degree, like, we kind of need some quality to return to NFTs and some low quality.

• 16:24Ryan Sean Adams?

  Wait, you didn't buy any of the Lindsay Lohan NFTs, man?

• 16:27David Hoffman?

  No, I did not. No, I did not. And like, you know, CryptoPunks, which are still like, I would consider quality NFTs, were going for an insane exorbitant amount of money. But I would like to say that the take here is while volume is coming down, perhaps, again, a return to a new mean, setting a new floor. But I was talking to Jamis from Pleaser Dow, who is very big in NFTs and very focused. And he's very, you know, connected with all the NFT issuing platforms and all the just very much into the details of what's going on behind the scenes and NFTs. And he says that the amount of innovation and development and competition between NFT issuing platforms is absolutely insane.

• 17:09David Hoffman?

  And so this is very much a, if you look at the charts, it's an NFT bear market. But if you look at the development, it's a development bull market with NFTs. And that's kind of the story of crypto, like development doesn't happen when there, when there's retail mania.

• 17:24Ryan Sean Adams?

  Yeah, I think it's great. Look, unquestionably, NFTs are here to stay. I also think it's healthy, like this is sort of a, a, a sector bubble in crypto. That peaked retail mania and then collapsed, but didn't take the rest of crypto with it, right? So maybe this is evidence for sort of that super cycle theory where different sectors in crypto sort of go up and down and have their own manias and collapse. But we obviously haven't seen a secular bear market 90% sell off in other crypto assets. And yeah, as you said, like the bear time is when builders build. It's kind of the best time to be involved. So if you were intrigued by NFTs, I would say now is the time to actually go start.

• 18:10Ryan Sean Adams?

  Maybe buying them, maybe seeing what's going on, maybe starting to build things. Definitely build your, your network in the space because the mania has left and now's the time to do it.

• 18:20David Hoffman?

  Bear markets are where wealth is created. You find your right, you're the correct position in bear markets. And then you eat your ramen and then he waits. And then when it finally comes your turn, like you're well positioned.

• 18:35Ryan Sean Adams?

  Position yourself during the bear markets. Absolutely, David. All right. This is kind of cool. ETH had the highest trading volume of any crypto assets across all the major, not decentralized exchanges, but centralized exchanges in the month of May. Reserve asset for crypto, question mark? This is Coinbase, number one, overtook Bitcoin. Binance, same story, just barely over Bitcoin, but still.

• 19:02Ryan Sean Adams?

  Huobi, trading volume ETH was number one, FTX ETH was number one. Actually, pretty impressive to see the strength of ETH volume on centralized exchanges. And so, sort of calls into question, like, there was sort of a maximalist take that Bitcoin would always be the reserve asset for crypto, and always be the dominant, most liquid trading pair. And we're just not seeing that. Now, whether ETH can kind of hold that into the future is sort of a question, right? So, I will say, there was a period of time where Doge was actually crushing Bitcoin on some of this, right? So, one month doesn't really change the situation very much.

• 19:44Ryan Sean Adams?

  It does point to some strengths, but we'll see from a long-term perspective how this trading volume plays out.

• 19:51David Hoffman?

  It's important for Ether to be on the board. So, like, you know, one month is what Ether's got under its belt as the leader in trading volumes. And, you know, it didn't have that before. Next up, one year, how many months will it take until one year of Ether trading dominance over Bitcoin? We will find out.

• 20:08Ryan Sean Adams?

  Right, okay, this is really cool, David. Let me blow this up, this is from our friends at Token Terminal. This is a visualization of daily borrowing volumes from the leading lending protocols last year. Do you see this? It's kind of a horse race between Compound maker AVE and a few other centrifuge and others. Look at Compound.

• 20:28David Hoffman?

  Compound's just taken off.

• 20:29Ryan Sean Adams?

  Crushing it, right? This is after D5 Summer.

• 20:32David Hoffman?

  Wait, AVE's coming up. There's AVE, ooh, wow! Look at that volume, holy crap, that's crazy.

• 20:38Ryan Sean Adams?

  So, I don't, what happened near the end there? Like, what's happened the last two months to cause that?

• 20:43David Hoffman?

  Yeah, what was, yeah, what was the, what month was that? Let's see, that was like April and May of 2021. Market volatility, man, market volatility.

• 20:52Ryan Sean Adams?

  Market volatility? AVE's doing something different.

• 20:55David Hoffman?

  AVE integrated on Polygon.

• 20:58Ryan Sean Adams?

  This is Layer.

• 20:58David Hoffman?

  AVE V2 came, AVE AMM markets.

• 21:02Ryan Sean Adams?

  I do think, back to a theme we've been talking about, David, is as you're evaluate, as people are evaluating DeFi protocols, I'm doing this myself, it's like, you have to evaluate what their layer two strategy is right now, because that's where a lot of the, the growth is going to be in the future. And AVE has just been, I think, has a very solid layer two strategy. Compound is doing their own independent chain, which is interesting. I'm not sure what their plans are to expand into like-

• 21:33David Hoffman?

  We haven't heard much about that.

• 21:35Ryan Sean Adams?

  Haven't heard much about it.

• 21:36David Hoffman?

  The other, the other thing that differentiates AVE from Compound, and I think why AVE just like jumped at the very end, is like, AVE's got all the tokens, and tokens did very, very well in April and May.

• 21:47Ryan Sean Adams?

  Right, true. Alright guys, we're gonna be back with the releases, but before we do, we want to thank the sponsors that made this episode possible.

• 21:55David Hoffman?

  Bankless is proud to be supported by Uniswap. Uniswap is a new paradigm in asset exchange infrastructure. Instead of a cumbersome order book system where trades are matched with other humans, Uniswap is an autonomous piece of software on Ethereum, which is what Ryan and I call a money robot. No human counterparties or centralized intermediaries, just autonomous code on Ethereum. Input the token you want to sell and receive the token you want to buy. Something brand new in the Uniswap ecosystem is the Uniswap Grants Program is now accepting applications for grants. We have been saying this for a while and we'll say it again. DAOs have money and they are in need of labor. If you think that you have something to contribute to the Uniswap DAO, apply for a grant to

• 22:39David Hoffman?

  Uniswap. Just look at the size of the Uniswap treasury. It's almost $3 billion. This mountain of capital is looking for labor. Do you have something of value to contribute to the Uniswap DAO? No matter how big or small your idea is, you can apply for a UniGrant at unigrants.org and help steer Uniswap in the direction that you think it should go. That's exactly what we did to get Uniswap to be a sponsor for Bankless, and you can do the same for your project. Thank you, Uniswap, for sponsoring Bankless. Gemini is the world's most trusted cryptocurrency exchange. I've been a customer- Gemini since I first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells.

• 23:19David Hoffman?

  Gemini is available in all 50 states and in over 50 countries worldwide and on Gemini, there are markets for over 30 various different crypto assets, including many of the hot DeFi tokens and it's one of the few exchanges that has liquid die markets. Gemini just launched their earn program where you can earn up to 7.4% interest on 26 various crypto assets. If you're tired of paying fees in DeFi or you don't want to worry about DeFi exploits, but you still want to earn interest on your crypto assets, Gemini Earn is the product for you. Another product I'm stoked to get my hands on is the Gemini Crypto Back Credit Card, which gives you 3% cash back on all of your purchases, but paid to you in your preferred crypto asset. When I get my Gemini credit card, I'm going to make sure that I get my cash back in ETH.

• 24:04David Hoffman?

  So whenever I buy something, I get a little bit of ETH bonus back to me at the same time. You can open up a free account in under three minutes at Gemini.com/goBanklist. And if you trade more than a hundred dollars within the first 30 days after signup, you'll be gifted a free $15 Bitcoin bonus. Check them out at Gemini.com/goBanklist.

• 24:25Ryan Sean Adams?

  All right, guys, we are back with the releases in crypto last week. The first one we want to talk about is Arbitrum stuff, Layer 2 Summer stuff, Uniswap now deployed on Arbitrum. Wow, that was fast. Community voted for it. They deployed it a few days. Arbitrum, of course, not open. They haven't cut the red ticker tape and opened it to their theme park to guess, but Uniswap is deployed and apparently works on Arbitrum. Kind of cool.

• 24:53David Hoffman?

  Wait, so is it Arbitrum that is preventing users from coming or is it Uniswap that's preventing users from coming? I think it's Uniswap.

• 25:00Ryan Sean Adams?

  So I thought it was Arbitrum. I thought that Arbitrum wanted to wait until they had some rides in their theme park that wouldn't chop people's heads off.

• 25:13Ryan Sean Adams?

  And they said it was more social coordination rather than like, so like the infrastructure of getting a block explorer up and going and getting MetaMask integrated and getting Chainlink on so that you could power whatever feeds that a DeFi protocol needs. I think they were waiting for some of that to come to place and then they were going to open it. And not all the rides would be open at that point in time, but at least it would be. There would be enough there for users to start. So I think that was kind of the dependency. But I could be wrong.

• 25:40David Hoffman?

  No, I think that makes sense because Uniswap is talking about, you know, how developers with whitelisted addresses can.

• 25:47Ryan Sean Adams?

  Oh, here you go.

• 25:48David Hoffman?

  Yeah. Yep. Okay.

• 25:49Ryan Sean Adams?

  I guess it doesn't say.

• 25:50David Hoffman?

  It doesn't really specify, but I think if we're talking about whitelisted addresses, like who's in control of that? Arbitrum's in control of that. So that makes sense. And also, it also makes sense because, you know, they want to establish some sort of credible neutrality. And so I think white or like allowing whitelisted addresses only, which are developers, like basically developers only.

• 26:09Ryan Sean Adams?

  Yeah.

• 26:10David Hoffman?

  I think everyone gets to like have their, here you have your slotted amount of time to build your stuff. So you don't have to have this rat race. Like you don't have to, you don't, like sushi would just win that race because they just. And so I think they must be giving some sort of like grace periods. Like, all right, you have this amount of time to like build your apps. And then we're gonna, you know, literally cut the red tape and.

• 26:29Ryan Sean Adams?

  I'm so bullish. Look, I think this is cool because Uniswap V3 is awesome. It's really great and they haven't yet expanded to a roll up yet. So they've let.

• 26:41Ryan Sean Adams?

  Automated market makers like quick, is it QuickSwap? QuickSwap on Polygon kind of dominate right now. And it's because Uniswap has decided not to enter Polygon. Why? Because Polygon does not have the same economic assurances as a roll up like Arbitrum. But now they're in the ring and they're going into layer two. And so I'm super curious to see how the automated market maker, money robots all fight for liquidity and like fight each other. And we're the beneficiaries, of course, but it's gonna be cool to watch.

• 27:11David Hoffman?

  And Uniswap V3 is a very high-touch AMM, right? Like concentrated liquidity makes you like, you need to like be on the, on the ball with like how you, how you choose to LP. And having that on the main chain with gas fees and like long block times really hinders that. And I expect the Uniswap V3, which is already, look, it's supposed to be a very fierce competition. That competition just gets more fierce when you have like almost instant block times and almost free transactions.

• 27:38Ryan Sean Adams?

  Yeah, and it's, it's great to be able to play with it without like having to worry about really high gas fees. Anyway, so Arbitrum humming along, they, Arbitrum is hiring. That's in their Twitter header. But I think they're also excited to announce that Graph Protocol is now offering hosted services on Arbitrum One. We did a great episode of the Graph. They, they provide a lot of the sort of the data. Indexing infrastructure to all of these.

• 28:03David Hoffman?

  Chain link for the inside.

• 28:06Ryan Sean Adams?

  Yeah, it's kind of basically that. So the graph protocol is there now too, set up in the theme park. David, we should talk about, as long as we were talking about Uniswap V3, a fantastic Uniswap V3 calculator came out and I've looked at this. It's, I haven't spent enough time with it, but it seems super useful. I think we should just spend a few minutes like walking through what this is. This is from Flipside Crypto, but if you were curious about how much money you can expect to make, like a model for how much you can expect to make as a liquidity provider in Uniswap V3, how this works, because as you said, David, it is more complicated.

• 28:45Ryan Sean Adams?

  This calculator is a great way to model it. So what dial should I set here? What would be a good demo of this?

• 28:52David Hoffman?

  Yeah, let's, so we are looking at the USDC to Ether pool at specifically the 0.05% fee. There's also the same pool, but with 0.3% and that liquidity is different. But it looks to be that the dominant pool for Ether to USDC is the 0.05% fee. So let's keep us there, Ryan. Let's go ahead and put $1,000. I don't know why it starts at 777. Let's put $1,000 in. And I think that this liquidity positions graph right on the right here, that is, I think, something that we as an industry and as a globe will look at until the end of time, because this graph tells you

• 29:31David Hoffman?

  where the liquidity is. And also this dot, this dash line is where the price is. All of the green is where the liquidity is. And this is, this is where we are playing. This is the game. People that have their liquidity positioned under the line are winning. And look at all that, all the people that have that spike of liquidity. It's kind of hard to eyeball this price, but I think it's like at $2,500 to $2,000, like $600 ish.

• 30:00Ryan Sean Adams?

  Right now. That's ETH price.

• 30:01David Hoffman?

  Yeah, that's ETH price. Right now Ether is dipping $2,482. There's a lot of people who position their liquidity at above this price. And so the people that are positioning the liquidity at below that big range where everyone else is, are getting outsized amount of fees. Because they, they are where the liquidity is inside of the bands. And so. Ryan, on the left here, you have a, according to this website, you have a band, a liquidity providing band of concentrated liquidity between $2,255 and $2,918. So that means that if you deposit your liquidity here, you think that there's going to be a large amount of time that Ether is going to spend between these bands.

• 30:42David Hoffman?

  But if you, if you had a conviction that the ETH price was going to stay at an even narrower band, you could drop that 2,900 price. Let's say we're bearish. I think we had just the most bearish weekly roll-up market section that we ever had. So let's drop, let's drop that top price down. Let's go down to $2,500. We're right above where it is right now.

• 31:03Ryan Sean Adams?

  And then just, and just to be clear, David, what we're talking about with this liquidity band is the $1,000 that we have in the top here. We're only providing that $1,000 worth of liquidity, and this is USDC, for that band of ETH price. So if it goes outside of that band, if ETH goes above $2,515, which is the top of the band that I have right now, if it's, you know, $2,600, for instance, as a liquidity provider, my $1,000 is not making anything. No transaction fees for that.

• 31:36David Hoffman?

  And you have it all in Ether.

• 31:38Ryan Sean Adams?

  And I have it all in Ether.

• 31:40David Hoffman?

  Right, because the Ether price is north of your band, and so you have sold all of your dollars for Ether. You have bought the dip.

• 31:47Ryan Sean Adams?

  Ah, that's interesting. It kind of forces you to buy the dip if it goes outside of your band.

• 31:52David Hoffman?

  Yeah. And so, and so, let's, I don't think Ether price is going down below $2,300. So let's raise that band from $2,250 up to $2,300.

• 32:02Ryan Sean Adams?

  Okay.

• 32:03David Hoffman?

  And the other cool thing is, look at that prices the last five days. And so, according to the band that we have, you can see that green highlighted zone, and you can see like retroactively what ETH price has done in the last five days, and you can see how much, how much of your band Ether has been in historically in the last five days. Now, Ether price has largely been north of this band the last five days. So if we have a band right now between $2,300 and $2,500, that means that we are bearish In comparatively to the last five days and also going back to that liquidity positions in the top right. You can see that highlight and lighted band of where everyone else has put their liquidity. And that's also where you have put your liquidity and that dash line is inside of that band.

• 32:48David Hoffman?

  And so using these parameters that we have put in, we have a price assumption of four, $2,490. This website defaults to the current ETH price. And then we've also selected a band of between 2,300 and 2,500. With an investment of $1,000, we are making roughly $10 every 24 hours. While Ether is inside of this band. And so annualized, that is 336% annualized. And so if Ether spends its entire one year time between these two prices, 2,300 to 2,500. $1,000 will net you 360% over one year.

• 33:29David Hoffman?

  And that's just the takeaway here, like I don't expect Ether to stay within this band for the whole entire time. That would be like as an LP, that would be just like a complete W, like massive win for you, unlikely. But this is just a very fun website to tinker with Uniswap LP positions. And really just get a grip on what it means to LP in Uniswap V3. And so if you are still trying to wrap your head around Uniswap V3, I would recommend just come to this website and just play around. It's good practice, it's good modeling, it gets a, it's a good way to comprehend what's going on here.

• 34:02Ryan Sean Adams?

  Totally, it has the other pairs too. So if the impermanent loss USDC to ETH kind of scares you, is this another factor to consider? Do something like DAI to USDC, right, with a 5% and see what your $1,000 would do there with a band. Yeah, I'm not sure I fully understood kind of how to, how to model this and how to enter into Uniswap positions. Before this, this website and this tool, so super handy guys, definitely check that out.

• 34:33Ryan Sean Adams?

  David, let's talk about another automated market maker with a release this week. This is Curve Finance. So they just put together a volatility algorithm. And they deployed it on both Ethereum and Polygon, interestingly enough. What is going on here?

• 34:48David Hoffman?

  Yeah, so this is Curve's response to Uniswap V3. And so if you go into the white paper, the white paper is only like three pages long, but it's got some like crazy math algorithms in it that make my head explode. But what I've tried to gather is that this is a similar thing to concentrated liquidity in Uniswap, but with Curve, it's a variable curve according to an algorithm. And so Curve is stepping into the concentrated liquidity game with their own specific strategies. And kind of the TLDR I've got is that this is really good when prices range, but this Curve is not less optimized for price discovery.

• 35:32David Hoffman?

  That's like the TLDR that I heard. However, that's also the same TLDR as Uniswap V3 and concentrated liquidity at large. And so basically, the TLDR here is that there are multiple strategies to try and create concentrated liquidity. And when everyone understood and got their heads wrapped around Uniswap V3, they were like, oh, it's the Curve killer. Well, you know, don't discount DeFi.

• 35:54Ryan Sean Adams?

  Curve is adapting.

• 35:54David Hoffman?

  Don't discount DeFi innovation, right? Like Curve's got some cards up its sleeve.

• 35:59Ryan Sean Adams?

  This is why I go back to Robot Wars. David, like, you know, the Uniswap robot just added a buzzsaw. And now Curve is getting its own buzzsaw. Like, I love it.

• 36:10David Hoffman?

  Battle bots.

• 36:10Ryan Sean Adams?

  Battle bots. Battle bots, yeah. It's like, that's what's happening in real time here. And again, what do we get out of it? More efficient capital markets. Like, and this is what we always say, it's like, this ecosystem in DeFi is so Darwinian. It's so brutal.

• 36:27David Hoffman?

  Crucible.

• 36:28Ryan Sean Adams?

  From a liquidity perspective. It's a crucible, right? And it's all adapting and evolving. These organisms exist in a different planet versus traditional finance. But once these two civilizations meet, oh my God. We have these highly adapted, like, robot organisms meeting traditional finance. And the old traditional finance civilization does not have a chance against these sci-fi weapons. And that's what's being built here.

• 36:57David Hoffman?

  Dude, battle bots, that's such a great meme.

• 36:59Ryan Sean Adams?

  It is battle bots. Alright, let's talk Polygon. So Polygon is kind of cool, I think, because it shows, it's almost like a cookie cutter of what we think is going to play out with all of these other Layer 2s, like Arbitrum and Optimism. You can kind of see how it's evolving, how all of the DeFi tools are being added. So what's this first one? What's Polyscan, David?

• 37:22David Hoffman?

  Yeah, Polyscan is just the Polygon version of EtherScan. Everyone loves EtherScan. It's, God, it's straight up God's gift to the earth. So yeah, Polyscan.com, if you want an EtherScan fork, I guess, for Polygon. And so if you've been having trouble interpreting your transactions with the Polygon Block Explorer, now there's something much more similar to EtherScan.

• 37:45Ryan Sean Adams?

  Wait, is this from the EtherScan people?

• 37:48David Hoffman?

  I mean, it looks like it. I don't like, I mean, we also had Binance Smart Chain Scan, right? And I'm definitely, that was definitely like made by Binance. So I actually don't know. Either way, very happy about it. Except for the fact that they didn't call it Polyscan. Polyscan's better than Polygon Scan.

• 38:06Ryan Sean Adams?

  Yeah, Polyscan. Come on, guys. They probably couldn't get the dot com, that's why. Let's talk about this, another Polygon ecosystem thing. Hop Protocol has deployed, well, they already were deployed on Polygon, but what's this? Polygon to Ethereum withdrawal in a minute and 30 seconds instead of three hours. So this is a different bridge. We're talking to the Arbitrum guys about all of the different bridges to sidechains and Layer 2s, that sort of thing. This is kind of a, Hop is providing an alternate way to access Polygon. It's faster.

• 38:40David Hoffman?

  Yeah, so this is all about LPing on both sides of the L2, right? It takes you maybe sometimes as much as an hour or even longer to get off of Polygon. Getting onto Polygon's pretty quick. It takes about 10 minutes. But Hop Protocol is boasting 1.5 minute transfer times. And the way that they do that is they have LPs, liquidity providers, providing you the assets that you have and the assets that you want on both sides of the chain. And so you basically sell your assets to the Hop LPer on the Ethereum side, and then the Hop Protocol LPer sells you the same assets on the Polygon side minus a small fee.

• 39:22David Hoffman?

  Not only that, not only is it an L2, L1, you know, ramp, but it's also L2 to L2, right? So Polygon to Arbitrum, Arbitrum to Optimism, Optimism to Polygon. And, uh, and this is kind of where a lot of like the user UX issues gets really, it gets solved by kind of like this mesh network of, you know, L2s to L1s to other L2s. Fun fact, Connect is also tinkering in this space with their, their payment channels.

• 39:50Ryan Sean Adams?

  And they set up a bridge and they just take a toll on that bridge. So there's a small cost, not too bad here. It looks like, um, uh, you know, for $50, about 50 cents in transaction fees. So not, not too bad and hopefully it gets more competitive. Another bridge that's being built to Polygon, which again, we expect to play out in layer twos, uh, summer to all of the other layer twos, um, is chain, uh, is exchanges, rather crypto banks, providing a fiat on-ramp, another bridge, a fiat ramp directly into these ecosystems. This is OKX, a decent, decent sized exchange, not a nobody.

• 40:27David Hoffman?

  Yeah.

• 40:27Ryan Sean Adams?

  Has introduced a way to deposit assets directly from their centralized exchange to Polygon. You could withdraw 23 assets, uh, no wait time. So that's super cool.

• 40:40David Hoffman?

  Not just stablecoins, but 23 assets. And this is awesome for a number of reasons. This just goes to illustrate that you are probably moving, everyone listening probably is moving to an L2. We're all packing our bags, we're moving out of Manhattan. It's too, it's too congested. We're moving to an L2 and some people aren't even starting in Manhattan. They're coming and living in the Manhattan suburb, which is an L2, from the get-go, right? And so OKX is building a highway straight to a suburb on Ethereum, an L2. And you don't even have to go through Manhattan to do it. Uh, and I, I think OKX is doing a great job pioneering this. Uh, other exchanges, let's get this ball rolling. Come on, guys, like people want to be on in the suburbs. Suburbs are hot right now.

• 41:24Ryan Sean Adams?

  I think they're absolutely going to, David. Only a matter of time. I like with all this Layer 2 stuff going on, I find it, I don't care what's happening with price. I find it so difficult to be bearish. By the way, we got a Layer 2, we got EIP 1559, we've got ETH staking in full effect in the merge. So hard to be bearish.

• 41:43David Hoffman?

  That's exactly right.

• 41:44Ryan Sean Adams?

  Let's talk about Matcha.

• 41:45David Hoffman?

  We're not even done. We're not even done talking about L2s. Matcha users can now trade tokens on Polygon. I use Matcha as kind of my main exchange of of choice.

• 41:55Ryan Sean Adams?

  It's an aggregator, right?

• 41:56David Hoffman?

  It's an aggregator, great, uses a 0X protocol, and now it's on Matcha, or excuse me, now it's on Polygon. And so, you know, an app now also moving to Polygon, specifically a 0X app. And so this is the 0X, if you, I guess you can call it a DAO, is now also on Polygon.

• 42:15Ryan Sean Adams?

  Yeah, super cool. So, once again, guys, we've got a Block Explorer, we've got chain-to-chain bridges, we've got fiat to Layer 2 and side-chain bridges, and we've got aggregators all active inside of networks. And what's going to happen is the same thing that just happened with Polygon is this ecosystem is building and thriving. That's going to play out in these other Layer 2s as well. That's what's so exciting. We're going to have a lot of additional real estate for Ethereum transactions.

• 42:45David Hoffman?

  And Matcha wasn't even the first aggregator on Polygon. Slingshot was.

• 42:49Ryan Sean Adams?

  Dude, it's all happening so fast. All right, let's get to the news, David. We got to start with the big news item, which is, we talked about it in markets, El Salvador. El Salvador is recognizing, and this law just passed, through their legislative system, recognizing Bitcoin as legal tender inside of their country. Here's the actual law that I've got pulled up. This is a translation into English.

• 43:18Ryan Sean Adams?

  What's happening here? Is this a big deal?

• 43:20David Hoffman?

  So, a quick history lesson of El Salvador. El Salvador had its own money from 1892 all the way to 2001. And then it decided to dollarize and it accepted the US dollar as the native currency of El Salvador. And now, El Salvador is also adding Bitcoin as the native currency of El Salvador, the officially accepted legal tender. And so that means that businesses have to accept Bitcoin as a currency in El Salvador. And for businesses that don't necessarily want to accept Bitcoin and kind of just want dollars, El Salvador claims that they are offering just like kind of instant swap feature using the Lightning Network.

• 44:01David Hoffman?

  And so merchants are paid with the Lightning Network and then it goes to an automatic dollar exchange that is government-run. And so, like, there's a, this is a huge win for Bitcoiners. Nick Carter called this "using Bitcoin in its intended way." And Bitcoiners are just up in arms about this. They are so incredibly stoked. It's extreme validation. A whole entire country has Bitcoin as its native currency with Lightning Network adoption. And so, I think this is going to be the time where like Bitcoin makes or breaks it, right? Like, does Bitcoin work as a native currency for an entire country? Can it execute on that? Will that work? And we're about to find out.

• 44:45Ryan Sean Adams?

  Yeah, I think there's a lot of takes here. So like, I'm bullish on this, but I also have some reservations, I would say. But like, even with the reservations, I think no one, no matter how you feel about this, no one can discount the fact that this is an absolutely historical moment. Like, if we're talking about the history of monies, every historical timeline in the textbooks is going to include June 2021, the date that the first country recognized a cryptocurrency as legal tender. So, whatever you think about this, whether you think like, well, maybe this is kind of coercive, or whether you're super bullish and excited and this is Bitcoin's intended purpose,

• 45:28Ryan Sean Adams?

  Have to recognize that this is legitimacy of cryptocurrency on the world stage at a whole nother level. I know El Salvador is a small country, but this could also be a leader for Central American countries. You know, Mexico is talking about incorporating this. You know, there Brazil even there's there's rumors like Central America, South American countries might follow their lead. And for a country to stand up and say this and a major politician to get behind it, I think it's pretty historic. But can we talk a little bit about more about this like? So what is actually happening here?

• 46:06Ryan Sean Adams?

  Caitlyn Long had sort of a thread of what what this would mean if El Salvador adopts Bitcoin as legal tender. And she said, this is a this is a really big deal for a few reasons. One is it would make Bitcoin likely get a status as money. So treated on par with foreign currency by banks. And I'm not sure if this extends into sort of international recognition, David. But she said it could possibly get cash accounting treatment under, and she names a treaty that I don't know much about.

• 46:44Ryan Sean Adams?

  But I think this kind of enters Bitcoin into the world stage cryptocurrency discussion. That's one of the reasons Bitcoiners are excited about it. What are some other reasons here?

• 46:55David Hoffman?

  Yeah, so having Bitcoin as a currency status, a legal tender, what that does for people living in El Salvador? You don't have to pay capital gains tax on your Bitcoin because it's money. It's like it's like no one pays capital gains tax on the dollar because the dollar is money inside the United States. Or euros, right? You don't pay capital gains on money. That's nonsensical. All of a sudden Bitcoin gets that same treatment inside of El Salvador. And so El Salvadorian citizens, if Bitcoin goes to $300,000.

• 47:27David Hoffman?

  Then they don't pay any taxes on that as a capital gains. And so that's really attractive to a lot of Bitcoiners. The El Salvadorian president said, you know, no capital gains tax on Bitcoiners, permanent residence for crypto entrepreneurs. And so this is also a strategy to attract Bitcoiners. And a lot of Bitcoiners have Max Kaiser, who's that crazy Bitcoiner that was like, you know, we're not selling F Elon Musk, that guy. Purchase, purchase real estate in El Salvador. Turns out that was actually a mistake. He got the address wrong and it was actually in a different country, but that's a separate, that's a separate story. Yeah, he really F'd that one up. But the point is, is that Bitcoiners are now interested in moving to El Salvador as like a safe haven for their Bitcoin.

• 48:10David Hoffman?

  And Bitcoiners who tend to hold Bitcoin and hold it for the long term, probably have a lot of capital gains tax that they probably want to not have to worry about in the future. And so it's really enticing to go live in a place that accepts Bitcoin as currency. And so there's a big like push in the same way that like Malta and Gibraltar and all these other like, you know, Singapore, all these other crypto safe havens. Like if Salvador is raising their hand, it's like, yo, crypto safe haven over here.

• 48:37Ryan Sean Adams?

  Yeah, I think like the big win for Bitcoin is legitimacy, because this, it's not the case that El Salvador has launched a plan to purchase a massive amount of Bitcoin for its central bank reserves. Right? Correct? Like they haven't done that at this point in time. It's really just saying like, hey, we've got the dollar and now we also have Bitcoin as, as legal tender. The language though of legal tender is somewhat interesting, David, because this goes to into kind of maybe some of the pushback here, right? From the crypto community. And I think it's, which number is it here that?

• 49:13David Hoffman?

  I think, I think number seven is the one you want.

• 49:15Ryan Sean Adams?

  Number seven, Article seven. So Article seven in the actual Bitcoin law that would go into effect, this is a translation from Spanish. Every economic agent must accept Bitcoin as payment when offered to him by whomever acquires a good or a service.

• 49:30David Hoffman?

  Right.

• 49:30Ryan Sean Adams?

  So this is sort of. Coercion by the state?

• 49:34David Hoffman?

  Well, this is a normal legal tender law. This is

• 49:37Ryan Sean Adams?

  Which is coercion by the state, right?

• 49:39David Hoffman?

  Which is coercion by the state, right?

• 49:42Ryan Sean Adams?

  You have to. You have no choice.

• 49:44David Hoffman?

  Right. And, and, you know, the president of El Salvador has Bitcoin laser eyes. And if you listen to, we have to talk about the Twitter spaces that happened. But the guy's a straight up Bitcoiner, right? He's a straight up Bitcoiner.

• 49:56Ryan Sean Adams?

  He looks like a Bitcoin bro.

• 49:59David Hoffman?

  Quacks like a Bitcoiner, walks like a Bitcoiner. And, and like the, the bearish take, the critical take is that this is a Bitcoiner who happens to also be the president of El Salvador, who's imposing Bitcoin upon an entire country.

• 50:12Ryan Sean Adams?

  To pump his own bags, maybe?

• 50:14David Hoffman?

  Yeah, well, that's, that's the critical take. That's the critical take. And, you know, Bitcoiners are very happy about this, about, you know, legal tender laws of a nation state. To me, in Ethereum and tokens on Ethereum, it's about maximizing choice. And citizens of El Salvador now have a choice between the US dollar and Bitcoin. So they get one more choice. But still, it's not in the complete ethos of cryptocurrency to say like, congrats. Like, I, I was listening to a guy's, guy's take, which is the Bitcoin Audible podcast. And he's reading an article and he goes, and the first, like, literally the first 15 to 30 seconds of the article is all about how nation states impose their fiat currencies on you, and that's evil.

• 50:58David Hoffman?

  And now we're doing it, but now we're doing it with Bitcoin and now it's okay because it's Bitcoin.

• 51:02Ryan Sean Adams?

  Because it pumps our bags. Well, and, and to be fair, not all Bitcoiners are, are pro this particular article in the laws. Like, so Eric Voorhees has spoken up against it. He's like, hey, this is not the values of Bitcoin. This is not the values of opt-in, anti-coercion. This is not why we're here. But overall, I'd say the Bitcoin community is, is pretty excited about it. And I actually don't know much about the, um, El Salvador's president. It seems like he is definitely a populist. Uh, some might call him, massive support. But some might call him like veering the direction of sort of populist authoritarian as well.

• 51:43Ryan Sean Adams?

  Which is like, I don't know. I mean, is that what we want for Bitcoin adoption? Yet, this is very much the formula from the Bitcoin standard. Like, if you read that book, David and I know you have, Saphedin Amos is just like, this is kind of what Bitcoiners want to happen in order to get to a state of hyper Bitcoinization. And I think that they would argue that, hey, at least, if you have two choices in El Salvador for your people, you've got the dollar, which can be inflated by basically elite baby boomers in the US at a whim, money printed, and then you've got Bitcoin,

• 52:25Ryan Sean Adams?

  which is resistant to that level of inflation, then it's better for Bitcoin to be sort of the standard in that country. And that is a, that leads to a better, more free world. I'm not sure I'm sold on that vision, though, I've got to say. And then there's also like the implementation of it, which you talked about like Lightning Network.

• 52:49Ryan Sean Adams?

  Wow, Lightning Network just-

• 52:50David Hoffman?

  Asset test.

• 52:52Ryan Sean Adams?

  Just hasn't worked, like largely, its adoption has been, and state channels haven't worked in Ethereum, to be fair, it's the same tech. And so that's going to be a test. And part of me wonders, it's just like, you know, if you wanted, if you wanted to give the El Salvadorian people a financial system in a box, why not just do stablecoins? US dollars are already part of your legal tender laws. Why not just do like rollup or sidechain with US dollar stablecoins? And give everyone access to that. You could totally bypass and like upgrade your banking system, just like, just like that. But no, it's Bitcoin instead.

• 53:32David Hoffman?

  Well, it'll be an interesting exploration as to whether like, hey, what about WBTC on an Arbitrum rollup? Right? Like, is that Bitcoin?

• 53:41Ryan Sean Adams?

  It is, right?

• 53:42David Hoffman?

  I think it's Bitcoin. You know, count it. Like, why wouldn't we count that? And so maybe that is, if that conversation happens, I will be tuning into that. I do want to cross some Ts and dot some Is. Ryan, if you go to the next page. Just to be accurate reporters, uh, let's see.

• 54:01Ryan Sean Adams?

  Are we reporters?

• 54:02David Hoffman?

  Right now, we are, yeah. Article 12, those who by evident and notorious fact do not have access to the technologies that allow them to carry out transactions in Bitcoin are excluded from the obligation expressed in Article 7, right? So if you are an individual in El Salvador and you don't have the means to accept Bitcoin, you don't, you aren't forced to accept Bitcoin. So that's a nice clause. If I was just super nitpicky, I would say like, don't write a coercion law and then write a, an exception. Just don't write the coercion law.

• 54:34Ryan Sean Adams?

  Yeah, in the first place.

• 54:35David Hoffman?

  In the first place.

• 54:36Ryan Sean Adams?

  But, but again, the argument is that's what legal tender laws are.

• 54:39David Hoffman?

  That's what, yeah.

• 54:39Ryan Sean Adams?

  What else is the state going to do?

• 54:41David Hoffman?

  Yeah, also, that's also true.

• 54:42Ryan Sean Adams?

  Is the state going to put out a press, press release that just says, please, everyone, adopt Bitcoin? No, they're going to be like, hey, this is now legal tender and you, you have to, if you can.

• 54:51David Hoffman?

  Mm-hmm. There's a, an article that is called, uh, I'm not going to, I'm going to butcher his name, but Niyeb Bukley's Power Grab in El Salvador. If you look into the history of this man, he's not necessarily the best representative of a leader.

• 55:05Ryan Sean Adams?

  It sure doesn't look great.

• 55:07David Hoffman?

  It is, yeah, that, yeah, right. Uh, and so apparently he, there, so you, readers need to fact check me on this, but, uh,

• 55:16David Hoffman?

  he, there was a, a bill that was going through Congress and, and it was, he, he wanted it and it was losing and he threw in the military and forced Congress to vote for this bill. I'm, I'm just coming to like, get into what El Salvador history is. I think we should be cautious and we should all as a community and as an industry, research who this person is. And that's, that's basically me telling me this because I need to read more to fully understand this. I just want people to kind of pump the brakes before we put our full weight and steam behind El Salvador.

• 55:52Ryan Sean Adams?

  Well, this is, this is the thing, David. It's just like, this is where I get a little, um, worried, I would say, about where we're going with things. Is...

• 56:04Ryan Sean Adams?

  Is it the case, sometimes it feels the case, that the crypto community, and I'll narrow in on the Bitcoin community for a minute, they're happy to accept anybody that pumps their bags and gets them to the end state of hyper Bitcoinization, right? So like, part of me wonders if like, despots like Kim Jong-un adopted Bitcoin, if they like, wouldn't be celebrating that, or factions wouldn't be celebrating that, right? Like, I think that there are principles that are, and values that are much deeper, right? And this goes back to maybe the, our next conversation about the Bitcoin conference and kind of your experience there and what you saw there.

• 56:48Ryan Sean Adams?

  But there were panels about toxic Bitcoin maximalism.

• 56:53David Hoffman?

  And how it's good?

• 56:55Ryan Sean Adams?

  The argument was it was good. There was a, the clip that I saw where somebody said, "If you're against toxic Bitcoin maximalism, you're against freedom." Followed by cheers from the audience.

• 57:04David Hoffman?

  First, if you're against toxic maximalism, you're against Bitcoin. And if you're against Bitcoin, therefore you're against freedom.

• 57:09Ryan Sean Adams?

  Ah, it's that link, it's that bridge, right? So, so this is what...

• 57:14David Hoffman?

  Bitcoin is fundamentally good and it doesn't matter who accepts it because the means to an end. It's so incredibly good that it doesn't matter how it gets adopted.

• 57:24Ryan Sean Adams?

  See, that, that is so concerning to me, right? Because like, there's another layer beneath Bitcoin, which is the values layer.

• 57:31David Hoffman?

  Right.

• 57:32Ryan Sean Adams?

  And that is the thing that if you're going to be maximalist about something, you should be maximalist about values that you really care about. To the extent they're instantiated in Bitcoin, okay. But to the extent that they're not, don't be a Bitcoin supporter, right? Isn't that why we're here? I feel like there's some loss of plot going on here. And I'm not saying, again, this is like...

• 57:55Ryan Sean Adams?

  This is good news for crypto legitimacy. It's absolutely historic, but this is also the reason,

• 58:01David Hoffman?

  Right.

• 58:01Ryan Sean Adams?

  Personally, I feel cautious and not super excited.

• 58:07David Hoffman?

  I'm not completely ready to throw my weight behind this. Again, I think the legacy of this story will be a massive acid test for Bitcoin. Is the Lightning Network real? Can it be used? Is, do people of a third world country actually want Bitcoin? We're about to get some really important answers to really important questions.

• 58:29Ryan Sean Adams?

  There was a, wasn't there like a meeting, a chat? Where was the chat? With like the actual president of El Salvador?

• 58:37David Hoffman?

  Oh, on Twitter Spaces?

• 58:37Ryan Sean Adams?

  I missed all of this.

• 58:38David Hoffman?

  Yeah.

• 58:38Ryan Sean Adams?

  It was on Twitter Spaces?

• 58:39David Hoffman?

  Yeah, so Nick Carter just spun up at Twitter Spaces as he does, normal, normal times, and the El Salvadorian president showed up, the guy promoting this bill, the guy with the Bitcoin laser rise. And so the other, the other through line here, this is such, this, this, the story has so many layers, is ultimately, it got out that the El Salvadorian president was in there, and he was in there because he was in Congress at the time that the bill was being voted on. And when it came time for the bill to get, it was approved, almost overwhelmingly. I, I don't know the numbers, but it was like three or four to one yeses versus no's. And he put the, he put his microphone up to the audience applause of the applause of the bill getting passed, which is really cool. And you know

• 59:21Ryan Sean Adams?

  And this was on Twitter Spaces?

• 59:22David Hoffman?

  This was on Twitter Spaces. And you know how many people were in Twitter Spaces at the, at the peak? Over 20,000. And, and NLW had a really good take about this, is that this is the, this, this event, this monumental event was broadcasted on Twitter Spaces directly. I was listening in on this. I was there. I was, I was a part of the 20,000 people listening to history, and the reporters that were also in there reported on it the next day. But the people that were already in Twitter Spaces, they already knew everything that the reporters were reporting on because they were there. It's a huge democratizing, like news event, because it happened in Twitter Spaces.

• 59:56Ryan Sean Adams?

  Well, that's cool. Like, okay, so another layer to that, though, which is interesting, is like,

• 1:00:03Ryan Sean Adams?

  There's no, there's no nation-state diplomats that are negotiating this, right? So like you'd expect the dollarization of El Salvador, it might have representatives from the US that are cheering this on or negotiating with El Salvador and, and its government. But here you've got like Bitcoin or Twitter influencers who are, are almost like the ambassadors.

• 1:00:26David Hoffman?

  Right.

• 1:00:26Ryan Sean Adams?

  Bitcoin.

• 1:00:27David Hoffman?

  Right.

• 1:00:28Ryan Sean Adams?

  Diplomats of Bitcoin interacting with the leader of a nation-state.

• 1:00:32David Hoffman?

  Mm-hmm.

• 1:00:33Ryan Sean Adams?

  That's bizarre and wild, too.

• 1:00:35David Hoffman?

  Mm-hmm. And, and there's, there's so many more things to talk about, right? Uh, you know, Anthony Pompliano reached out and when he had his time in the, in the Twitter space and said, "Hey, Mr. El Salvadorian President, how can the Bitcoin community help you?" Right? Like, "How can we help you? We want to help you." Obviously Bitcoiners want to help you. And the, the, the other topic of conversation is volcano mining inside of El Salvador. They have a volcano that spits out heat, and so they use that for steam energy. Uh, and so now we can, uh, you, you can press Command minus a few times, Ryan. I think then that will help scale out that video. Um, yeah, there you go. Um, and so El Salvador could potentially mine Bitcoin with free energy from, from the volcano mine, which is really going to the conversation of like, not only is Bitcoin

• 1:01:18David Hoffman?

  green, but it actually allows for more energy extraction. This is exactly the Bitcoiner narrative that they've been talking about.

• 1:01:25Ryan Sean Adams?

  David, I feel like I want to let this one settle before I, uh, figure out how I feel about it. But, um, we're gonna have Nick Carter on State of the Nation next Tuesday and get a digest from him. And I think that's gonna be a really interesting conversation. So that's next Tuesday. I think, is it regular State of the Nation time?

• 1:01:44David Hoffman?

  State of the Nation, 11 a.m. PST, 2 p.m. EST.

• 1:01:48Ryan Sean Adams?

  We're gonna livestream that. So if you're interested in this story and Nick's take, who's been on the ground from day one.

• 1:01:53David Hoffman?

  He started the Twitter space.

• 1:01:54Ryan Sean Adams?

  He started the Twitter space, Bitcoiners' take on this, and probably the bullish case for this, then listen into that conversation, too.

• 1:02:01David Hoffman?

  Mm-hmm.

• 1:02:02Ryan Sean Adams?

  Wow, a lot. But look, El Salvador is huge news. It's historic, guys.

• 1:02:06David Hoffman?

  This, this is Bitcoin's biggest opportunity ever, and if it doesn't fuck it up, a lot of, sorry, sorry for the effort. Uh, if it doesn't F it up, uh, it could, this could be the moment where Bitcoin really breaks out and fulfills what Bitcoiners like illustrate as its manifest destiny.

• 1:02:23Ryan Sean Adams?

  Absolutely. All right. In other news.

• 1:02:26David Hoffman?

  Back to NFTs.

• 1:02:29Ryan Sean Adams?

  Now, NFTs. NFTs are coming to AVE. This is kind of cool. This is from Metaverse. William Peaster from Metaverse this week. All eyes on AVE. Why? Because Stani said this, NFT as collateral is coming to AVE. Why is this super important? I think it's less important for the sort of the people art and more important because every Uniswap pool that we were talking about, David, not actually ERC 20.

• 1:02:55David Hoffman?

  Right.

• 1:02:56Ryan Sean Adams?

  It's an NFT. And the reason for that is these pools can be kind of unique and these pools can be sort of different. So if you're going to make that NFT and those liquidity pools composable and super fluid, as we did previously in Uniswap V2, you have to have in your protocol some support for NFTs as collateral. It looks like AVE is working on that right now. It's coming. Stani didn't mention a date, didn't mention the how to, but like this team delivers, so it's coming.

• 1:03:27David Hoffman?

  I do want to nitpick here about that Stani tweet that we see on screen where he says, "NFT as collateral coming to AVE." If you read that, you're thinking like rareable art or super rare art, not Uniswap NFTs, because Uniswap NFTs are actually just a wrapper around ERC 20 tokens like Ether or W Ether and like DAI and stuff like that. But it's also infrastructure for future NFTs. These are the low hanging fruit NFTs, the safe NFTs. But once you get these NFTs in there, we can now start to talk about like more complex, more like illiquid NFTs.

• 1:04:03Ryan Sean Adams?

  Yeah, and everyone's hungry for those Uniswap LP NFTs for sure. All right. Well, let's talk about another story, which is just a weird, like strange story, kind of Bitcoin related, certainly crypto related and also regulatory related, and that is the ransomware attacks. Now, the media has been calling these Bitcoin ransomware attacks. But like, the only reason they're calling them Bitcoin ransomware attacks is because the attackers are asking for Bitcoin as payment. So. It's kind of fair, but it does put Bitcoin in a very negative light from a media perspective. And I think there's probably two that we should talk about. Like, the first was the big pipeline hack that happened. This affected a lot of people on the East Coast.

• 1:04:47Ryan Sean Adams?

  So, um, yeah, like I know people on the East Coast, like locally for me, I couldn't actually get gas for a few days, David.

• 1:04:55David Hoffman?

  The crypto, you're telling me that the crypto world impacted your real world life?

• 1:04:59Ryan Sean Adams?

  Well, kind of. I mean, the hackers, they hacked the pipeline, right? And they were like, I guess if somebody paid them in Bitcoin earlier, then I could have gasoline quicker. I'm not sure, like, but maybe it affected my real, like, so anyway, this was a big thing, a big event that happened in the US. And apparently the FBI has recovered some of that Bitcoin as of this week from the hack. So the, the, um, the pipeline people actually paid the hackers. The hackers received the Bitcoin, then they exited the system. The pipeline was restored and now the FBI has somehow tracked down the Bitcoin. Has actually gotten the proceeds of the payment back. How did they do that? What's the story here?

• 1:05:44David Hoffman?

  Yeah, so the TLDR that I've heard, and I didn't look too closely into the story, is that the hackers were competent hackers, but were Bitcoin novices. And apparently they just used an exchange address to put their Bitcoins in. And so the exchange was like, oh, thank you, we're going to confiscate these. They, they forgot about the whole not your keys, not your crypto thing.

• 1:06:05Ryan Sean Adams?

  So weird though, right? So like the, the, the other, I guess, weird part of the story is how can, uh, ransomware hackers be so competent, like hacking into a major US pipeline, yet forget about their private keys and give that to a third-party custodian?

• 1:06:22David Hoffman?

  Whoops.

• 1:06:24Ryan Sean Adams?

  Like, does it seem weird to you?

• 1:06:25David Hoffman?

  It does seem weird to me. It does seem weird.

• 1:06:28Ryan Sean Adams?

  Does seem weird.

• 1:06:29David Hoffman?

  This is one of those stories that's really complex and I'm just going to wait for like the truth to come out over time.

• 1:06:34Ryan Sean Adams?

  Me too. But the conspiracy theory is that, well, maybe some of this was done to make cryptocurrency look bad? Question mark?

• 1:06:43David Hoffman?

  The US would never do such a thing. We don't do like behind the scenes psyops like this. No, the CIA, CIA, super clean agency.

• 1:06:52Ryan Sean Adams?

  Meat company was hacked to Bitcoin ransomware attack. I don't know much about this story, but this was last week too. They paid $11 million in Bitcoin to get them to exit their system. JBS Holdings meat company.

• 1:07:07David Hoffman?

  Basically, the TLDR is that there's been two Bitcoin ransomware attacks in the last two weeks, and that's bad in of itself. And the attackers are actually getting away with it. They're being sent Bitcoin and it's a PR disaster for Bitcoin.

• 1:07:20Ryan Sean Adams?

  It is, and we'll get to that.

• 1:07:22David Hoffman?

  And our industry, not just Bitcoin, our entire industry.

• 1:07:25Ryan Sean Adams?

  Another week, another week that MicroStrategy, Michael Saylor is buying Bitcoin.

• 1:07:30David Hoffman?

  This one's, this one's a special week, though. This one's a special week.

• 1:07:33Ryan Sean Adams?

  Why?

• 1:07:33David Hoffman?

  Six hundred, uh, $500 million junk bond offering, not just dollar cost averaging into Bitcoin, a big buy. And so apparently, I'm confused on the numbers, but MicroStrategy has reportedly attracted more than $1.6 billion worth of orders for its latest deal to purchase Bitcoin. But then in the firm, you know, upped the raise from their 400 million advertisement and the initial like, you know, seeking of investment up to 500 million. I'm not sure which is the right number. Anyways, MicroStrategy again doing a bond offering to buy Bitcoin.

• 1:08:07Ryan Sean Adams?

  But MicroStrategy, Michael Saylor is just taking every bond it can get and plugging that into Bitcoin purchases.

• 1:08:15David Hoffman?

  Which really goes to Ray Dalio's conversation is like, why are people buying bonds instead of Bitcoin?

• 1:08:21Ryan Sean Adams?

  Why are they going through MicroStrategy to do that?

• 1:08:24David Hoffman?

  There, there is an answer to this question, and I got that answer from listening to the Castle Island podcast a couple of months ago. And so that answer is out there. Apparently it's complex and I'm not prepared to say, say why.

• 1:08:37Ryan Sean Adams?

  All right. Michael Saylor buying Bitcoin is the headline, though. We talked a little bit about the 2020 Bitcoin conference that you're at. David, anything to add on that?

• 1:08:47David Hoffman?

  Yeah, it was the world's biggest event since the Super Bowl, which is crazy largely because COVID, you know, killed all the events. 12,000 people went to the Bitcoin 2021 conference. 30,000 people went to Miami and this was very much like a tale of two communities because if you were a Bitcoiner and you went to the Bitcoin conference, you were like immensely satisfied with what happened, right? Like it was a straight up like first and foremost, we call it a conference? No, it's a festival. It's a festival of Bitcoin culture.

• 1:09:18Ryan Sean Adams?

  More like Burning Man-ish.

• 1:09:19David Hoffman?

  A little bit, right? Like, I mean, there were talks and panels and stuff like that, very conferency, but like it was more of a festival. It was a celebration of Bitcoin, it was a celebration of Bitcoin culture. The Bitcoin art there was awesome. I saw it myself. I was there. It's my favorite part about the Bitcoin conference. The Bitcoin art is deep. It has layers. It's complex. And so like I don't want to, you know, we're kind of known in the in the world, in the bankless world, it's kind of wading towards Ethereum, but Bitcoin art is winning hands down. Like it's it's complex, it's nuanced, it's delicate. Oh my God, it's so cool. And all the Bitcoiners were very happy with what happened at the conference. Now, the Ethereum people saw the same thing, the same

• 1:10:04David Hoffman?

  reality and came up with a different story. They saw toxic maximalism. They saw, you know, bag, you know, pumping the Bitcoin bags, you know, and, you know, Anthony Sazano is tweeting out the real winner of Bitcoin 2021 was Ethereum. All the Ethereum people agreed with it. It's interesting to see this one, this one shared reality, having two completely different interpretations by like depending on what community you're in.

• 1:10:29Ryan Sean Adams?

  Yeah, and I really enjoyed your opening note, David, this week on Bankless on Monday, which kind of went through your on the ground experience with it. Yeah, just super interesting. I guess, you know, Ethereum conferences.

• 1:10:45Ryan Sean Adams?

  I feel so much different or look so much different. And like, maybe part of this is the difference between a like Ethereum conferences are much more geeky and technical. And like building focused, there, there is some culture, but it's like not as much. And I wonder if some of the differences, it's a project that's still building versus a like, what really do you talk about Bitcoin from a technical perspective? Like Taproot and Lightning, like, but like the project's mostly done. So, but with Ethereum, you're talking about like rollups and sharding and like what's, you know, the next advance in cryptography and all of these things. So I wonder if part of this is the, uh, the life cycle of the project is just after a project has ossified.

• 1:11:28Ryan Sean Adams?

  Maybe it just turns into like a, a festival type of environment and cultural type environment rather than a builder's environment.

• 1:11:35David Hoffman?

  So I went through the, the section of the Bitcoin conference that had all like the booths, right? Like, you know, conferences, they sell booths to vendors and all the vendors are like custodial wallets, Bitcoin banks, you know, uh, just all, all the things that like are centralized. And just like, don't really intrinsically interest, interest me. So I was walking around, I was like, oh yeah, you're, you're, you're a centralized exchange. You're a centralized custodial wallet, you know, blah, blah, blah, blah. And like, where, like, for me, I just felt like, where, where are the, where are the DeFi app guys? Where, where's the DeFi app? Where's Sushi Swap? Where, where's the unicorn? Like the, the, the cultures is extremely different. But at the end of the day, uh, 12,000 Bitcoiners went to the Bitcoin conference, biggest event in the world in the last year since the Super Bowl. And like the other takeaway is that now that COVID is over.

• 1:12:21Ryan Sean Adams?

  People want to have fun.

• 1:12:23David Hoffman?

  People want to have fun, especially since asset prices like pumped. And Bitcoiners also, the other takeaway is that Bitcoiners are also like very, very like anti-COVID as in like, they're just ready to shed the whole COVID laws. And so it's, it's no surprise that Bitcoin had the first big event in the world since the lockdown of COVID. Christian Corales, my, my POV crypto podcast co-host says Bitcoiners are on the forefront of freedom and you got to hand it to them. If you are. Frustrated by COVID laws, the Bitcoin community was the first one to put their foot down in saying, "We're having a 12,000-person event in Miami." And I was there. It felt like COVID wasn't a thing. And I have my vaccine, so it's chill. But like, very much

• 1:13:06David Hoffman?

  felt like, "Oh, yeah, I completely forgot about COVID." And now that I've come back from that and I'm in Seattle, I'm like, still in that mindset. It's like, "I've got my vaccine, two weeks out. Like, why are we still doing this mask thing?" Granted, I'm gonna be patient, wear my mask when I'm asked, but still. That's my other take.

• 1:13:22Ryan Sean Adams?

  Well, there's some culture clash here, and I think that maybe comes in with what's going on in regulatory, which we should talk about. So this is a super interesting clip. This is just from, I guess, Wednesday. And I think I want to play this. So this is Senator Elizabeth Warren, who I think is obviously red for president, is kind of a big deal in the Democratic Party. And I want to play what she says. She's commenting on Bitcoin here.

• 1:13:47Speaker 02

  It's about, we've talked a lot today about the dangers that cryptocurrencies pose to our economy. We've talked about the rip-offs, the instability, the extent to which they're used to help criminals with cyber attacks, like the attack on Colonial Pipeline and JBS. But there's another piece, too. The adverse environmental impacts of the computing activity used to mint many of these digital currencies in the first place.

• 1:14:17Ryan Sean Adams?

  I'm gonna pause it there, David, but she goes on. So you heard about that. So she mentioned the volatility, she mentioned the hacks, she mentioned the scams, she mentioned ransomware. And she also mentioned the energy issue with Bitcoin. The rest of this clip is all about the energy issue, energy consumption issue with Bitcoin. This is the first time I've seen a high-profile senator go on the offensive in this way against cryptocurrency. Now, it is, I think, mostly constrained to environmentally wasteful cryptocurrencies. But I mean, Bitcoin and proof of work, and Ethereum is still on proof of work, that is the bulk of the

• 1:15:00Ryan Sean Adams?

  Money layer of this of this industry right now. So this is almost all active cryptocurrencies. And there wasn't a lot of nuance when I went through the rest of this video, like there wasn't a lot of like, yes, there's volatility. Yes, there are rug pulls and scams. Yes, there are, you know, crazy prices, but like, let's talk about the freedom this brings to a population. Let's talk about decentralized finance.

• 1:15:27David Hoffman?

  Say one good thing, Elizabeth. Say one good thing.

• 1:15:30Ryan Sean Adams?

  One good thing, right? But it wasn't. So what's interesting here is kind of the observation that you have a large group that is both on the right and the left in in the US, I think, that are kind of the group that wants more authority, more control, more governmental control over crypto in general. And this spans both sides of the aisle, I think. Then you also have a group that is kind of demonizing the energy consumption of cryptocurrencies right now. And I'm somewhat worried, David, that these two groups come together, create a wedge issue out of this thing, form a coalition and like, start to attack the industry.

• 1:16:11David Hoffman?

  Right.

• 1:16:12Ryan Sean Adams?

  We've always talked about the final boss. It's always been out on the horizon. Now we've got a country adopting cryptocurrency. Are things about to go a little faster from here on out? What are your thoughts?

• 1:16:24David Hoffman?

  Yeah, I'm really worried about like the woke cancel culture coming after crypto, right? Because they'll go, the whole theory about cancel culture is they'll try and cancel anything for clout. And there's always kind of this like jostling for for clout. And it's like, all right, who can cancel what? And for what reasons? And if you can justify your cancellation of something, then you get clout in woke culture and cancel culture. And so like, oh yeah, environmentally wasteful. NFTs are, you know, they're NFTs are killing the environment, right? Like they consume all this consumption. Bitcoin is killing the environment. The thing is like Elizabeth Warren got all of it wrong, like, and I'm not, and I'm not saying that Bitcoin isn't wasteful,

• 1:17:05David Hoffman?

  but she was saying that one Bitcoin transaction uses as much energy as fifty-four Or one household uses in 54 days, which is just objectively the wrong way to think about it. Yes, you can, you can critique Bitcoin on its energy consumption, but it's not on a per transactional basis. So you're just showing that you don't know what you're talking about. Nick Carter had a really good tweet where he just went through all of the things that Elizabeth Warren was just criticizing, right?

• 1:17:32Ryan Sean Adams?

  He called it knives out.

• 1:17:33David Hoffman?

  Knives out, right, yeah. Bitcoin energy use is a disaster for our planet. Bitcoin is disproportionately used for illicit purposes, even though we know that that is absolutely not true. I'm pretty sure it's less than 1%. Bitcoin is unproductive and has no utility. The only people that think that Bitcoin is unproductive and has no utility are people that don't like Bitcoin. Like if you, if you like Bitcoin, then you think it has productivity and utility. And like, this is my problem with, I like Elizabeth Warren, she's generally a good senator, I'm a left-leaning individual. This is an example of why Bitcoiners and libertarians that large get pissed off by governments because they're coming into this industry without any knowledge about it and saying what this industry needs to do.

• 1:18:17David Hoffman?

  From their like bird's eye, like, you know, throne room.

• 1:18:19Ryan Sean Adams?

  Because David, I think that they're not looking to actually understand the industry. They're looking for like, you called it clout, but like their political wins is what they're looking for. And the commentary, they had a comment, I can't remember the individual's name, but he was like, "Yeah, you know, it would be great is if we, we ban with other world countries and we, we make Bitcoin to fiat transactions illegal, just like across the board. And that way, all the people who are doing illegal activity have no way to convert it to dollars." Like just the assumption that everyone who holds Bitcoin or cryptocurrencies is doing illegal activity. And like in that video too, Elizabeth Warren pitched it as like,

• 1:19:02Ryan Sean Adams?

  legislation against energy-consuming cryptocurrencies is a way we can have a win for the green.

• 1:19:11David Hoffman?

  Gotta protect the children.

• 1:19:13Ryan Sean Adams?

  We have a, but we have a win for the green agenda, but she said it costs us nothing. Why? It's because it's a whole bunch of criminals using in this industry. It's, it, you know, it's like, it's like they see it as a win for green and political clout and agenda. Right? And there's no cost to it because it's not affecting any of their constituent, like any of the, the interest groups or constituents that they care about, right? And again, like, we could play the same clip, it could be a different issue and it could come from.

• 1:19:45David Hoffman?

  Porn, the internet, like.

• 1:19:48Ryan Sean Adams?

  Yeah, exactly. Terrorist financing, like it could come from another place.

• 1:19:54Ryan Sean Adams?

  But what, what's interesting, I think, is, is following the uninformed takes on crypto. And I, I tweeted this out yesterday, David, it's like, is there just one individual in the house? In, in either, you know, the senate or the house, one representative who has ever used DeFi? Like, can we just find one? Right? I want to talk to that person.

• 1:20:18David Hoffman?

  Closest person is Andrew Yang.

• 1:20:23Ryan Sean Adams?

  Well, he's the, and he's, what is he?

• 1:20:25David Hoffman?

  Running for mayor of New York.

• 1:20:27Ryan Sean Adams?

  Running for mayor of New York.

• 1:20:27David Hoffman?

  But also, also previously ran for president, so.

• 1:20:30Ryan Sean Adams?

  A little bit worried, David, in the short run, crypto doesn't have a lot of allies.

• 1:20:36Ryan Sean Adams?

  We'll have to see how this plays out.

• 1:20:37David Hoffman?

  If we ever get Andrew Yang on the podcast, we're going to make him make a transaction on you swap.

• 1:20:43Ryan Sean Adams?

  It has to be something, he has to buy something worthwhile, though. It can be something stupid.

• 1:20:48Ryan Sean Adams?

  If Andrew Yang, if you're listening to this.

• 1:20:49David Hoffman?

  Yeah.

• 1:20:50Ryan Sean Adams?

  All right. Knives out, we'll see what happens. Not great news.

• 1:20:56David Hoffman?

  How about this one?

• 1:20:56Ryan Sean Adams?

  Oh my God, okay.

• 1:20:57David Hoffman?

  IRS seeks millions in fresh funding to expand crypto tax enforcement and enforcement and hire outside experts. The IRS knows that there is an absolute mountain of money waiting for them. If, in, in the crypto world, like capital gains tax, especially in the, in the short term, all in crypto. And so IRS, IRS is making some moves to make sure that they get their paycheck.

• 1:21:20Ryan Sean Adams?

  The next one, CFT Commissioner Criticizes DeFi Decries Lack of Intermediaries. The last CFTC Commissioner was our friend. This one may not be such a crypto advocate, so we'll see what happens there.

• 1:21:34David Hoffman?

  Consumer US inflation rates hits 5% for the last 12 months. 5% inflation for the last 12 months, ending in May, which is a high number.

• 1:21:47Ryan Sean Adams?

  Meanwhile, Amazon doing okay, and they are looking for DeFi experience in job postings for a head of blockchain. Big tech entering blockchain, entering crypto is probably a theme.

• 1:21:59David Hoffman?

  BlockFi raising $500 million in a Series E funding round at a prevaluation, pre-money valuation of $4.75 billion. That's a big number.

• 1:22:09Ryan Sean Adams?

  Crypto banks, crypto banks crushing it. As is Ledger, the hardware wallet, they landed an additional $380 million in a Series C round.

• 1:22:18David Hoffman?

  Solana Labs raises $314 million in a new funding round led by A16Z and Polychain Capital. Solana's got some attention lately. Decent, decent amount of attention.

• 1:22:29Ryan Sean Adams?

  Definitely has a decent treasury as well. So if you can buy your way into legitimacy, Solana is definitely able to do that with its treasury.

• 1:22:37David Hoffman?

  I think buying your way into legitimacy is an oxymoron. Didn't work for EOS.

• 1:22:42Ryan Sean Adams?

  We'll see. Coinbase partnering with a 401k advisor to offer crypto investments for retirement accounts. This is a much needed gap. You could do this for the self-directed IRA 401k. We've talked about this on Bankless. Coinbase, looks like they're trying to come up with the easy button. Probably a good move. That is it for our news. We're going to get to the sponsors and we'll be back with some takes.

• 1:23:05David Hoffman?

  Synthetix is Ethereum's decentralized derivatives liquidity protocol. What does that mean? Synthetix is a platform for creating and trading synthetic assets, which are assets that are priced via an oracle rather than bids or asks. Traders can use the Quanta exchange, which hosts and trades all of the synthetic assets created by Synthetix. Traders on Quanta can trade synthetic tokens like SBTCS oil or SD Fi. Because Quinta is powered by synthetics traders experience zero slippage on their trades. No, I didn't mean low slippage. I meant no slippage because that is the power of the synthetics platform. No slippage on your trades.

• 1:23:45David Hoffman?

  You can also easily short assets with ICints, which are synthetic assets that move inversely to their target asset. Synthetics isn't just for traders. Developers can build on synthetics to access the infinite liquidity offered by synthetic assets. Or investors can stake collateral to the protocol and earn fees that the protocol collects. If you're a trader and you're looking for a trading platform and not found in the legacy world, check out quinta.io. If you're a developer or you just want to earn yield on your collateral, go to www.synthetics.io where you can stake your SNX or ETH and earn fees from synthetics.

• 1:24:25David Hoffman?

  Aave is a borrowing and lending protocol on Ethereum and just recently released Aave version 2, which has a ton of cool new features that makes using Aave even more powerful. With Aave, you can leverage the full power of DeFi, MoneyLegos, Yield and Composability all in one application. On Aave, there are a ton of assets that you can deposit in order to gain yield and all of those same assets can also be borrowed from the protocol if you have deposited collateral. Here you can see me getting a 200 USDC loan against my portfolio of a number of different DeFi tokens and ETH. I'll choose a variable interest rate because it's a lower rate than the stable interest rate option, but I could choose the stable interest rate option if I wanted to lock that interest rate in permanently.

• 1:25:10David Hoffman?

  One of Aave's V2 features is the ability to swap collateral without having to withdraw your assets, trade them on Uniswap and then deposit them back into Aave. Aave does all of this for you, all in one seamless transaction. So you don't have to repay loans in order to change the collateral you have backing them. Check out the power of Aave at ave.com. That's A A V E dot com.

• 1:25:33Ryan Sean Adams?

  Alright guys, we are back with some hot takes and we're gonna get to the meme of the week. The first one is from Joe Weisenthal. This is based on an article and you really enjoyed this article. What's Joe saying in this tweet and in the article, David?

• 1:25:45David Hoffman?

  Yeah, the article is titled "There's a hot new vision for crypto and it's wildly different than Bitcoin." Joe Weisenthal, host of Odd Lots Podcast, very popular podcast in the TradFi space. And he's also on TV all of the time.

• 1:25:59Ryan Sean Adams?

  Bloomberg.

• 1:26:00David Hoffman?

  Sorry?

• 1:26:01Ryan Sean Adams?

  Bloomberg.

• 1:26:01David Hoffman?

  Bloomberg, yes, yeah, importantly Bloomberg, yeah, not just TV. But this article is all about DeFi. Joe Weisenthal playing around in DeFi and accurately, I think, reporting on what makes DeFi cool, unique and special, and importantly, different from Bitcoin. And so, I really just want to reread the headline because it's really important. "There's a hot new vision for crypto and it's wildly different than Bitcoin, from Bitcoin, right?" And this is kind of what the hammer we've been trying to be on Bankless is that DeFi, a decentralized app layer, is a brand-new banking layer and does all the cool new things that Bitcoin doesn't really get to talk about or do.

• 1:26:41David Hoffman?

  And Joe Weisenthal reporting on this, a very prominent thought leader on Bloomberg with his own podcast, writing a very, very in-depth article talking positively about DeFi.

• 1:26:52Ryan Sean Adams?

  He said, "And why it's time to stop talking about this space as a monolith." I'm glad he said that too. And he's used terms in his tweets before like "traditional finance being ETH-pilled", which is super interesting. I think what he's talking about is mainstreaming DeFi to traditional finance.

• 1:27:08David Hoffman?

  And if you have been paying attention to Joe Weisenthal on Twitter, like he's been engaging with DeFi folks, talking to Hayden Adams, talking to DeFi Dad. I've had some back-and-forth messages with him. I requested him to come on the podcast and he punted, but he also said he was interested. So, he said maybe later.

• 1:27:26Ryan Sean Adams?

  Yeah, very cool. This is another take, this one from me, I'll just read it. "It's easier for a 14-year-old to learn MetaMask than it is to open up a bank account. Gen Z will be the bankless generation." David, this really just hit me, it's kind of, I guess, a shower thought. But I was just thinking about, like...

• 1:27:47Ryan Sean Adams?

  Kids, young kids, in like their adoption of crypto. I mean, they've grown up in this digital world. And if you're talking to someone who's like 18 or under, MetaMask is so much more, I guess intuitive to them versus going to a bank branch, presenting your information and registering to get a bank account. And I think this is really going to be the case. It's like, bank accounts become obsolete for these newer, you know, digital generations, right? It's like, yeah, but if I open up a bank account, can I put my game items in them? Right? Like, can I put my loot in it? Like, well, okay, can I put this awesome art, right?

• 1:28:30Ryan Sean Adams?

  Like, all of the clout, the NFT clout? I can't put that in the bank account? Like, most of their value is going to be external to the traditional financial system. And things like MetaMask are just going to be super intuitive to them. So, yeah, I do think like, at some level, millennials, Gen X and others, we're like, we're kind of building this system. But sometime, we're gonna pass the torch, and Gen Z is just gonna, it's gonna be party time. They're gonna go wild with it. They're gonna like, finish the entire experiment and like, be born into it, in a way that I think the millennial generation was born into the internet. So, that was the take. Super excited about that.

• 1:29:12David Hoffman?

  That's a really good take.

• 1:29:13Ryan Sean Adams?

  Worldwide, too, man.

• 1:29:15David Hoffman?

  I just realized, like, what does Wells Fargo do other than hold dollars for me? Can I even hold a different currency in there?

• 1:29:21Ryan Sean Adams?

  Right?

• 1:29:22David Hoffman?

  I don't even know.

• 1:29:23Ryan Sean Adams?

  Yeah, I mean, it's not doing much.

• 1:29:25David Hoffman?

  I can hold a bajillion currencies in my Ethereum account. This is a really good take from Brantley Milligan of ENS. Brantley, a while ago, had this thread about, one of the coolest things that crypto and Ethereum has done is put a private key in the hands of so many people. And so he follows up that thread with this thread where he goes, The Ethereum community has accidentally solved a major problem of the internet. Single sign on. Quote, "Sign on with Ethereum." Quote, "Is the future login for every app on the internet crypto-related or not?" What he's saying is that instead of using your email and password, you can use your private key to sign into a website. Because all a website needs to do is to log who you are as a unique identifiable user. And that is the purpose of a private key.

• 1:30:09David Hoffman?

  And so in the same way that like you sign a message to log into a DeFi app or you log into MetaMask with your ledger, all you have to do is sign a message and to prove that you have a specific public address. And all of a sudden, the website can log you as a unique identifiable user. And you don't have to give up your email or your password or your date of birth or anything. And so this has always been a terrible part of the Web2 world is you got to use an email and an email is extremely identifiable. Private keys are a much better way to sign on to websites. And again, this is not even, you are not broadcasting a transaction to Ethereum. This is just signing a message. So it's using public-private key cryptography as a tool that's independent from cryptocurrency or blockchains or whatever.

• 1:30:52Ryan Sean Adams?

  And think about like all of our password management tools. Like how many username and passwords do you have?

• 1:30:58David Hoffman?

  Infinites.

• 1:30:58Ryan Sean Adams?

  Like, God, it's just getting unmanageable. I might have hundreds at this point, David. Like just because you don't ever disconnect them either. You don't ever discontinue them. So this is all of those compact into one login. All right, David, you had a take here too. I'm gonna read it out. Bitcoin is physical, Ethereum is digital. Bitcoin, physical, Ethereum, digital. What do you mean by this?

• 1:31:23David Hoffman?

  Yeah, so this is something I've been chewing on for a while and definitely came about with this whole El Salvadorian, Bitcoin is legal tender for our country conversation. Bitcoin has a strong interest in being very, very instantiated in the physical world. It loves sucking energy out of the world because it wants to be a part of the world itself. It wants to be part of the physical world. It needs physical energy to power this physical Bitcoin proof of work mining operation. It also wants to be the Legal tender for physical meat space countries, right? Bitcoin wants to be a part of the physical world. And that's one of the big cultural divides between Bitcoiners and Ethereum. Bitcoiners celebrate a nation state, a meat space nation state adopting Bitcoin as a currency.

• 1:32:07David Hoffman?

  Ethereum and Ethereum's, we want everything to be digital. Proof of stake is the most digital form of security consensus. We don't want Ether to be the national currency for any country. We want people to be able to choose their preferred digital token or Ether as their, as a result of their own choice. And so to me, like Ethereum will never go after some sort of nation state, national currency. It's the currency of the internet. It's the currency of the digital world. It allows the bankless nation to choose their own currency and maximizing choice. And Bitcoiners always all talk about like freedom from oppression, freedom from coercion. We talked about this earlier in the conversation.

• 1:32:48David Hoffman?

  But to me, the Ethereum app layer is the manifestation of the most choice possible. And what DeFi is, we talk about DeFi as a crucible of competition that is always best for the user. And this online virtual network, this, this DeFi native, this internet native network is the most, you know, the most digital money system possible. And these differences in communities, I think, are really, really interesting. And, and personally, I think the digital world is going to 10x in growth than the physical world. Right? We were talking to Ryan, you and I were having a private conversation with someone who said something on the lines of when they were an internet entrepreneur. And they said in the, in the nineties, that the physical world is really, really big and the internet world is really, really small.

• 1:33:32David Hoffman?

  And so I want to be where people are going to flow to. People are going to flow into the digital world. And same thing with Ethereum, the digital, the physical world's already really big. And people are going to flow into digital assets and digital money. And Ethereum is the instantiation of digital first money.

• 1:33:51Ryan Sean Adams?

  Yeah, I do think that's a good take. I think could add to that like Bitcoin is about the existing institutions, right? Like, that's what you mean by sort of the physical? Whereas Ethereum is more about building these new institutions. I think that's another great way to look at it.

• 1:34:07David Hoffman?

  Totally.

• 1:34:08Ryan Sean Adams?

  Yeah, super cool. David, we got to get to this listener question. I'm just going to read it out. So, this is a comment on the debrief that we do at the end of each of our podcasts for premium subscribers. Appreciate the debrief. One thing my friend was telling me is that it could be a big sell-off when ETH staking of 32 ETH, people get all their ETH back. Do you think that will be a thing, or will most hold on since it's a triple-point asset? David, what do you think about that?

• 1:34:36David Hoffman?

  Yeah, right. So, he's asking, AmalFI22, thanks for the question. He's saying that, like, when people started putting their money in their Ether into the deposit contract, Ether was like $400 to $700. Now it's $2,500.

• 1:34:51Ryan Sean Adams?

  And it's a one-way bridge.

• 1:34:52David Hoffman?

  It's a one-way bridge, right? Like, you're stuck there, until the merge happens. So, he's asking, he or she is asking, "Well, when this merge happens and people get all their ETH back, do you think there's going to be a big sell-off because all these people made all these gains and they haven't been able to sell because it's been locked?" And so, the way proof of stake works is that people that are the most bullish on Ether are always the first to stake. People that are intrinsically long Ether, the asset, always want to be staking. So, yes, it's very plausible that people want to take some gains off the table, you know, make their personal lives for better and for the people around them. But also, they're already the people that are the most bullish on Ether, the asset.

• 1:35:32David Hoffman?

  That's why they're staking. And also, when the merge does happen, staking yields go from like 10, 8% to 9%, where it is right now, and it goes up to 20% to 25% depending on gas fees, because you get the transaction fees and the MEV fees. And so, yields are actually going to go up when the merge happens. And so, we have the most bullish people who have staked all the ETH, and they're going to be able to get even more yields than they're already getting. And so, there's some, definitely some very significant arguments as to why there will not be a big sell-off when the merge happens.

• 1:36:08Ryan Sean Adams?

  I think I pretty much buy those arguments. I don't have anything to add. I think that's gonna, how it's probably going to play out. Guys, if you have a question, find a way to get it to us, either Twitter or on one of the Bankless newsletters. We will include some more of these in rollups moving forward. David, let's get to what we are excited about. What are you excited about this week?

• 1:36:29David Hoffman?

  I'm really excited about this article that came out on the Bankless newsletter by a brand new Bankless contributor, Ben Giav, Ben, I don't know how to pronounce your last name, sorry. And he's somebody I connected with because he's actually the president of Chapman University Crypto Club, which is my former college. And he wrote this fantastic piece earlier about, all about Polygon, and it was great. And so I challenged him to write, do a write-up on Vitalik's proposal that the uni token becomes an oracle token. In addition to being a governance token over the Uniswap exchange, Vitalik did this write-up about how uni could be a token to make an off-chain price oracle for price fees into DeFi. And that resembles an entirely new value capture mechanism for the uni token,

• 1:37:13David Hoffman?

  if the Uniswap governance decides to go down this path. And so Ben did a very fantastic job tackling a very hard subject and talked about how this, what this oracle could do, how it's different or the same versus Chainlink, how it helps uni capture value, and what are the similarities and differences with other DeFi protocols such as UMA. So, Ben, excited to have you on the Bankless writer squad. Nice job on the article. Ryan, the other thing I'm excited about is the Nick Carter State of the Nation. We're gonna ask all of the questions about El Salvador. And so, Bankless listeners, if you want those questions, let us know. And then, for the third thing, Ryan, I'm triple dipping, is tomorrow morning, I pack up all my stuff and I leave to San Diego. Gonna be a San Yegen by this Sunday next week.

• 1:37:54Ryan Sean Adams?

  Alright guys, like, okay, so everyone say bye-bye to David's background because it, we will never see this again. You should, you should take a screenshot or something so we could do a green screen.

• 1:38:03David Hoffman?

  Well, it's very, very different than what you're used to, but here it is.

• 1:38:07Ryan Sean Adams?

  Two plants, sad. I think some of them have to stay. I was sad to hear that, but...

• 1:38:11David Hoffman?

  I think they're all coming, but we'll, we'll stay tuned for that.

• 1:38:14Ryan Sean Adams?

  Oh my god. We're gonna look, we're looking forward to seeing what you have set up in San Diego, man. That's gonna be cool.

• 1:38:19David Hoffman?

  If you are a Bankless DAO member, let's meet up in San Diego. Ryan, what are you excited about?

• 1:38:24Ryan Sean Adams?

  Look, man, I guess it's all bankless content this week because I was super excited about this panel that we did on Wednesday with three of the biggest like DeFi brains in this space. I feel like one was Vance Spencer, Spencer Noon, and Santiago Santos. And that panel was just super cool. You guys should watch it from beginning to end. But the last question really resonated with me and we actually didn't have that question on the notes of the agenda. So you kind of like popped it up and surprised me with it, but it was like, the question was, how has DeFi changed your life? And the answers that these panelists gave were super cool.

• 1:39:02Ryan Sean Adams?

  I think one of them said, first of all, it's an unbelievable investment opportunity that I would have never had access to. Why? Because I'm not plugged into those VC circles, kind of Silicon Valley circles, the Wall Street circles that you need to be. And I kind of discovered this for myself, but all of them were united in these two things too. That's like, number one, the mission of DeFi excited them, creating a bankless money system for the world. So it's great to see investors who are mission inspired. They also reflected on what a privilege it is to work in DeFi, like DeFi doesn't discriminate. Santiago talked about hiring an 18-year-old at

• 1:39:46David Hoffman?

  Anon, an 18-year-old Anon.

• 1:39:48Ryan Sean Adams?

  Completely anonymous. And it's because just this person was the best at what they did. And again, didn't care this person's age, didn't care what degree this person had.

• 1:40:05Ryan Sean Adams?

  I love this about DeFi that is completely open and accessible to the world. If you have a hunger, you are talented, you want to learn this stuff, you can get involved and you can rise pretty quickly. So there's just so much opportunity at this early stage in the industry. DeFi is such a cool mission and man, this piece of content was really awesome. So check that out, Bankless YouTube, check it out on the podcast. I think we called it the current state of DeFi, a panel with those three gentlemen.

• 1:40:36David Hoffman?

  And the future of panels out of the bankless YouTube is going to be hot. We already are planning our next one, yeah, with Cooper Turley. And it's going to be all about the creator, the creator economy. And so stay tuned for that one. I think that will come at the end of this month.

• 1:40:52Ryan Sean Adams?

  David, it's time for meme of the week.

• 1:40:53David Hoffman?

  Favorite time, finally. The whole point of the weekly rollup, finally we're here.

• 1:40:58Ryan Sean Adams?

  What is this? This is, it looks like a tweet from Chase.

• 1:41:00David Hoffman?

  This is a real tweet from Chase Bank. And it's a, it's a hypothetical conversation between you and your bank account. And you, you say, "Why is my balance so low?" And the bank account says, "Make coffee at home." The bank account says, "Eat the food that's already in the fridge." The bank account says, "You don't need a cab, it's only three blocks." You, you say, "I guess we'll never know why my balance is so low." And the bank account says, "Seriously?", question mark, hashtag, Monday motivation. And then, strong juxtaposition with another tweet from Public Citizen, the whistleblower community, the whistleblower organization, says, "Bank that pays its CEO $31 million and received a $12 billion bailout after crashing our economy

• 1:41:42David Hoffman?

  tells poor people to stop being so irresponsible with their money. But F you! Maybe I wanted to take a cab to three blocks. Maybe my foot hurt. Don't tell me what to do with my money. Stop bailing out banks with golden parachutes. F yourself."

• 1:41:57Ryan Sean Adams?

  Yeah, I, like, what's the motivation after I read something like this? Like, my motivation is to shut down my Chase account.

• 1:42:05David Hoffman?

  Yeah, motivation to go bankless.

• 1:42:07Ryan Sean Adams?

  Yeah, it's motivation to go bankless, absolutely. That's the meme of the week, guys. We've got one more moment of zen, so stay tuned for that. It's been great to be with you on the weekly rollups. Thanks a lot.

• 1:42:18David Hoffman?

  Hey, what's up, what's up, what's up? The Connect! 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, podcasts, 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 become a Bankless Premium subscriber today. Also, don't forget to subscribe to the channel for in-depth interviews with industry leaders,

• 1:43:03David Hoffman?

  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.