ROLLUP: Optimism, Layer 2 Summer, Axie Infinity, ETH Documentary, Space Jam NFT (2nd Week of July)

2nd Week of July 2021 ------ 📺 ETH STAKING PANEL: https://youtu.be/-YD5cAbatOc ------ BANKLESS SPONSOR TOOLS: ⚖️ ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum 🍵 MATCHA | DECENTRALIZED EXCHANGE AGGREGATOR https://bankless.cc/Matcha 🔐 LEDGER | SECURE YOUR ASSETS https://bankless.cc/Ledger 🦄 UNISWAP | DECENTRALIZED FUNDING https://bankless.cc/UniGrants ------ 📣 SMARTCON | Register for Smart Contract Summit 2021! https://bankless.cc/SmartCon ------ Topics Covered: 0:00 Intro 2:50 MARKETS 3:00 BTC Price Lightning: https://twitter.com/VetleLunde/status/1414935599321124864?s=20 4:15 ETH Price Settling $8T: https://twitter.com/RyanSAdams/status/1415364147622170630?s=20 6:20 ETH/BTC Ratio 7:08 DeFi Action 3M DeFi Users: https://twitter.com/richardchen39/status/1414582943641657344?s=20 11:15 Axie Price Action 12:55 Value / Volume https://twitter.com/richardchen39/status/1414950857586749449?s=21 14:08 DAO Super-Users https://deepdao.io/#/people 17:00 RELEASES 18:45 Optimism! Uniswap: https://twitter.com/TrustlessState/status/1415118864698859524?s=20 Synthetix: https://blog.synthetix.io/optimism-launch-announcement/ 25:38 Scaling Frenzy Hop Protocol: https://twitter.com/HopProtocol/status/1414624873775878148 Gnosis Safe: https://blog.gnosis.pm/gnosis-safe-is-live-on-layer-2-24adf83f0032 Coinbase: https://twitter.com/SetProtocol/status/1415023551120355332 Infura: https://twitter.com/infura_io/status/1414614102618656768 28:18 Dow Jones Crypto Indices https://www.prnewswire.com/news-releases/sp-dow-jones-indices-launches-sp-cryptocurrency-broad-digital-market-index-301332698.html 30:10 Nifty Island https://twitter.com/Nifty_Island/status/1414982521377411075 31:25 Ultra Sound Money https://ultrasound.money/ 33:15 Ethereum Documentary https://twitter.com/ethereumfilm/status/1415376113170141184?s=21 34:36 Raises Superfluid: https://twitter.com/superfluid_hq/status/1414937101745983491?s=21 Connext: https://twitter.com/theblock__/status/1414933542006624256?s=21 Blocknative: https://twitter.com/blocknative/status/1415344313920200706?s=20 Phantom: https://www.theblockcrypto.com/post/111249/defi-wallet-solana-phantom-9-million-series-a-a16z 39:20 JOBS https://pallet.xyz/list/bankless/jobs 40:15 NEWS 40:25 Uniswap DeFi Education Fund https://www.theblockcrypto.com/post/111185/harvard-law-blockchain-initiative-uniswap-dao Cobie: https://gov.uniswap.org/t/proposal-removal-of-established-cranial-follicles-fund/13314/3 46:23 Brazil ETH ETF https://twitter.com/Blockworks_/status/1415099592308400128?s=20 47:44 New Aave https://twitter.com/StaniKulechov/status/1415308052400594953?s=20 48:04 ShapeShift DAO https://twitter.com/coindesk/status/1415325952272437249?s=21 50:45 Amex NFTs https://www.americanbanker.com/news/american-express-turns-nfts-into-a-credit-card-perk 51:45 Space Jam NFTs https://twitter.com/JordanLyall/status/1414658019275644931?s=20 52:25 Jack Dorsey Hardware Wallets https://www.theblockcrypto.com/post/110916/jack-dorsey-square-bitcoin-hardware-wallet 53:10 Bullish SPAC https://www.theblockcrypto.com/linked/110950/former-nyse-president-to-take-crypto-exchange-bullish-public-via-spac 55:02 Fidelity Hiring https://www.theblockcrypto.com/linked/111066/fidelity-digital-assets-hire-70-percent-more-employees-institutional-interest-crypto 55:55 Inflation https://twitter.com/LynAldenContact/status/1414948397233082372?s=20 59:05 Banks vs Fintech https://thefr.com/fintech-news-in-brief/regulation-and-compliance-fintech-news 1:00:40 Quick News Alchemix: https://twitter.com/AlchemixFi/status/1414647769470443521 Binance: https://www.theblockcrypto.com/post/111482/italy-binance-consob-warning Bitcoin Miners: https://www.theblockcrypto.com/linked/111462/bit-digital-14500-bitcoin-miners-us-china-crackdown Metamask: https://twitter.com/MetaMask/status/1415390962826850309?s=20 1:04:00 TAKES 1:04:45 Jackson Palmer https://twitter.com/ummjackson/status/1415353984617914370?s=20 1:17:30 FTX Acquiring the World https://twitter.com/ft/status/1415075101205319689?s=21 1:20:15 One Paycheck Away https://twitter.com/TrustlessState/status/1415439010952925186?s=20 1:20:35 What David’s Excited About 1:21:55 What Ryan’s Excited About 1:25:03 Meme of the Week https://twitter.com/BanklessHQ/status/1415476264840744960?s=20 1:26:55 Moment of Zen https://twitter.com/ben_chain/status/1414360342856011777?s=21 ----- 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.

• 0:07Ryan Sean Adams?

  Hey Bankless Nation, happy 2nd week of July. What time is it, David?

• 0:11David Hoffman?

  It is Friday, weekly roll-up time, where we take the whole entire week in crypto and condense it down into one single episode. Ryan, I'm actually particularly stoked for this weekly roll-up episode, because so much stuff happened in the last week. There's so much stuff to talk about, so much stuff to cover, and so we are going to go through all of it with the Bankless Nation.

• 0:29Ryan Sean Adams?

  This is going to be a tricky one to condense, because as you said, there is so much to talk about, but let's get into it. If you're new to the roll-ups, they come out every Friday morning, and our job is to boil this down into markets, releases, news, take what we're excited about, and we end with the meme of the week. We hope you enjoy this. It comes out on YouTube and also on the podcast. David, before we get into it, we've got to talk about something big that is coming to crypto. That is the Smart Contract Summit that is happening August 5th to August 7th. And this is like, it's put on by the folks at Chainlink, but this is almost like a free DeFi conference, because everybody's going to be there. They're having like 200 different projects discussing DeFi, NFTs, blockchain, they're

• 1:12Ryan Sean Adams?

  talking about MEV, we're going to be talking about Layer 2. David, you and I are going to be there. We have a special panel that we've got lined up on EIP1559, which hopefully, on August 5th, will have just happened by the time we do this panel. I'm super stoked about this.

• 1:29David Hoffman?

  It's going to be EIP1559 week, and this is going to be part of the weekly orchestra of EIP1559 content going out that week. So definitely stay tuned to the Smart Contract Summit, get a ticket or sign up. The tickets are free, so sign up for one and watch the EIP panel that Ryan and I put on.

• 1:48Ryan Sean Adams?

  We will have a link in the show notes to the Smart Contract Summit, so you can hook yourself up. Once again, a free conference, like a two-day conference, huge value in that, and it's going to be happening here soon. One other thing we should talk about, David, is the Staking Services panel that we did last night. It was super late for me, but this panel was definitely worth the wait. Do you want to give folks a preview?

• 2:10David Hoffman?

  Yeah, so we did this 8:00 PM last night for my time, 11:00 PM for Ryan's time yesterday. And the reason why it was so late is because ETH staking is a global phenomenon. Therefore, these staking as a service providers are found all across the globe. So we brought on Darren Langley from Rocketpool, who's from Australia. We brought on Vasily Shapalov from, I actually don't know where he's from, I think Eastern Europe. And then we also brought EJAS from Coinbase. And so we have three different staking as a service providers coming and giving their pitches, their opinions, their approaches towards staking ETH. And there was a ton of knowledge got dropped there. Definitely check that out. That is a panel that you do not want to miss. It went out on the podcast yesterday morning and YouTube yesterday evening as well. So definitely watch that.

• 2:55Ryan Sean Adams?

  Once again, it'll be in the show notes. All right, David, you ready to get to markets? Let's start with Bitcoin price.

• 3:01David Hoffman?

  Bitcoin price started the week at $32,000, went to the high highs of $34,500 and is now down to the low lows of $31,800.

• 3:13Ryan Sean Adams?

  Is this more crab season or are we starting to get into bear season?

• 3:16David Hoffman?

  This is like, I hope it's crab season still. I still hope it, because it's starting to like, you know, push on that bottom boundary of crab season, right? It's starting to be like, ooh, crab, crab bears.

• 3:28Ryan Sean Adams?

  I still feel like Bitcoiners, Bitcoiners feel okay as long as it's above 30K and Ethereum's feel okay as long as price is above 2K. And I'm not sure that we're there yet for Ether. We'll talk about that in a second. But you know what has been growing on Bitcoin is capacity in Lightning. So this is actually some fairly decent growth, a growth rate, I would say, over the last 40 days or so in Lightning. There's 1,800 Bitcoin in Lightning as of right now. What's your take?

• 3:57David Hoffman?

  Yeah, we Bitcoiners pay attention to Lightning Network. And so seeing that growth actually follow through is really important. At the end of the day, this is like one micro strategy purchase worth of Bitcoins in the Lightning Network. So like still small numbers, but fast growth rate. So definitely something to keep an eye on.

• 4:13Ryan Sean Adams?

  Yeah, definitely. And let's talk about Ether now. So ETH price, we are below 2,000. So ETH ETH Bull's not feeling great. ETH Holder's not feeling great. Maybe, maybe we're dipping into a little more that bear with crab arms or crabs with bear arms, whatever you said. What's, what's your take on ETH price?

• 4:34David Hoffman?

  Yeah, ETH price started the week at $2,100, got up to a high of 2175. So really didn't have any much of an interweek momentum. And now we have fallen down below the $2,000 level currently at $1,925. Crab with bear arms.

• 4:51Ryan Sean Adams?

  Bear arms. All right. You know why I find it hard to be bearish? There's lots of reasons, but here's one of them. Ether this year is on track to do 8 trillion in settlement value transactions. 8 trillion.

• 5:06David Hoffman?

  Large number.

• 5:07Ryan Sean Adams?

  On its network in 2021. That's absolutely incredible. This is like a 3 or 4X of PayPal. And these numbers are absolutely staggering. Like, a huge chunk of this, probably 50% or so, is settlement in ETH, denominated in ETH. The rest is in stable coins. I'm not sure if this even includes, I don't think it includes all of the tokens on Ethereum, which would put these numbers even higher. No one's talking about this. Like, this is becoming the, a settlement network for the world, bigger than PayPal. And still, mainstream doesn't know the word Ethereum. This is why I find it so hard to be bearish when I see metrics like this.

• 5:45David Hoffman?

  Yeah, price does not matter here. Like, settlement value, settlement speed, settlement volume, going up and to the right, it doesn't matter what price is. Stable coins don't change in value. And even with Ether dropping in value, the value of Ether being transferred keeps going up. You know, keep in mind, EIP1559 directly translates this settlement volume into ETH scarcity. And so while we are seeing crabs with bear arms, we are also seeing lots and lots of economic activity on Ethereum, which would ultimately lead into Ether fundamentals.

• 6:17Ryan Sean Adams?

  I know we're not going to talk about EIP 1559 in all this episode, right?

• 6:20David Hoffman?

  I don't even know what that is.

• 6:21Ryan Sean Adams?

  Yeah, no more talk of that. Okay, let's go to ETH and the Bitcoin ratio. So where's the ratio hanging this week?

• 6:29David Hoffman?

  We are just above .06. And so ETH BTC is in straight up crab season with crab arms. No bear arms there. But it is bouncing between that .055 and that .07 level. Not really much of a story here. It's not going down, not going up. It would be nice to see ETH hold that .06 level, which would set a higher low versus the .055 that we set right before July, the end of June. But other than that, neutral, neutral territory.

• 7:01Ryan Sean Adams?

  You kind of need, as we discussed last rollups, you kind of need ETH to run if we are going to remain in a bull market. Definitely feel that way. Let's talk about total locked value in DeFi. This is crab, crab arms.

• 7:13David Hoffman?

  Crab, crab with crab arms.

• 7:15Ryan Sean Adams?

  Just hanging out. 55 billion. I feel like we've been at the, in the 50 billions or so for quite a long time. I guess we have.

• 7:22David Hoffman?

  The north side, 55 and above, I think, has been like pretty, pretty common ever since, you know, the mania kind of left the markets.

• 7:29Ryan Sean Adams?

  Mania left, that was May. That was May when we had all time highs of close to 90 billion in total locked value. Remember those days?

• 7:37David Hoffman?

  Remember those days?

• 7:38Ryan Sean Adams?

  They'll be back, don't worry. All right, let's talk about DeFi tokens. The DeFi pulse index this week, where are we and where did we start? We're down on the week, it looks like.

• 7:47David Hoffman?

  We're down on the week. I think the, the start of the week, we saw, I think, $320 and we are now down to $280. So down on the week.

• 7:57Ryan Sean Adams?

  Down 16% or so. But let's, let's take a look at usage, because this is such a cool metric.

• 8:04David Hoffman?

  These things never line up. Prices and fundamentals are not ever aligned. It's like they are oil and water in this industry.

• 8:11Ryan Sean Adams?

  Look, this is the thing. I, you know, I tweeted this out the other day. It's like, don't, don't join crypto and expect to be a millionaire overnight. Like, just be patient. The big moves happen in just a few days. You have to be in the market during those, those big moves. And when you see fundamentals like this, why would you exit the market? I just don't understand. Like, oh, we haven't even talked about what the fundamental is. 3 million DeFi users. That's what it is. We now have 3 million DeFi users. When I first started talking about this metric, David, when we were talking about it originally, Richard Chen used to put these out, it was at like 150K. And I remember thinking, oh, that's about the size of a, you know, a small

• 8:52Ryan Sean Adams?

  American city, right? And then it grew to like a million. We're starting like, you know, decent sized metro. Now we're at 3 million, right? So we're creeping up to like New York City levels and beyond. And pretty soon this number is going to be the size of like a country, size of Canada or something, size of Australia. But like 3 million DeFi users, this is not active, this is not number of addresses. This is actually DeFi users, I believe, cumulative DeFi users.

• 9:23David Hoffman?

  Unique addresses. And so it's probably less humans, but still.

• 9:29Ryan Sean Adams?

  Bank accounts. Call it bank accounts.

• 9:31David Hoffman?

  The trend is phenomenal. The trend is what's important, which is up and to the right. The last time Richard Chen tweeted out one of these, and he keeps on retweeting his own tweets of the last milestone we made, 2 million DeFi users came in April 25th, and 3 million DeFi users came July 12th. So the rate of growth is impressive. To what you were saying at the beginning of this segment, Ryan, where you were talking about how like, people come into the world of crypto, they say, oh, look at the like insanely strong fundamentals behind this asset. I'm going to buy it and then I'm going to become rich. Get in line, buddy. Like, they all have good fundamentals. We're all waiting to become rich. Like, every single thing, there's so many things that we talk about in the bankless world have awesome fundamentals. It just takes a lot of time for the world to figure it out.

• 10:14Ryan Sean Adams?

  Yes, it takes a lot of time. And yet it doesn't take that much time. You know what I mean?

• 10:18David Hoffman?

  Yeah, in hindsight, it wouldn't, yeah.

• 10:20Ryan Sean Adams?

  Wait a year, wait two years, right? Like, these fundamentals are going to catch up, market's going to catch up with these. All right, let's talk about what you love. Maybe you like this this week, the DPI, the DPI to ETH ratio index. I guess it's above your numbers, so you're feeling okay.

• 10:36David Hoffman?

  You guess? Yeah, it definitely is. I am claiming victory left and right here so far. Like, I know it dipped down, but like, 0.13 is the number. And like, I'm sticking by it.

• 10:48Ryan Sean Adams?

  When it dips below 0.12, you're not even going to show up that week, are you? You're just going to like rage break the podcast.

• 10:53David Hoffman?

  I can't do the rollups. I feel kind of sick.

• 10:57Ryan Sean Adams?

  Yeah, well, you're hanging in there, but no moves. It's definitely not DeFi season.

• 11:03David Hoffman?

  We're not bullish, but your boys just excited that .13 is still a really good number to call.

• 11:09Ryan Sean Adams?

  All right. And once again, that that tracks DeFi relative to the price of ETH through the DPI index. David, let's talk about this. This token has been on an absolute tear. We had Axie Infinity on. We didn't really discuss price.

• 11:22David Hoffman?

  Right.

• 11:22Ryan Sean Adams?

  At all. We're just talking number of users. We had them on State of the Nation on Tuesday, but look at their token price, dude.

• 11:29David Hoffman?

  Has the market cap has just absolutely exploded. What was it right before it jumped to the market cap was $250 million to where it is today at $1.5 billion. It was at $250 million, just like I think at the end of June. I think if I'm reading that chart, yeah, at the 27th of June, it was at a quarter billion dollars. Now it's at 1.5 billion dollars. That is insane growth.

• 11:55Ryan Sean Adams?

  Want to check this out? Let's let's go to a year ago, what you could have bought AXS.

• 11:59David Hoffman?

  This was, oh, don't. No, we don't need to do that.

• 12:01Ryan Sean Adams?

  No, no, I want to see this. We need to see this. We need to appreciate this.

• 12:05David Hoffman?

  This is what this is. This could have been you. This could have been me.

• 12:09Ryan Sean Adams?

  I'm just saying, like, so the end of a DeFi summer, I guess it wasn't out yet, but it's like DeFi summer was over and we're in kind of this lull period. November 2020, market cap of AXS tokens, 7 million.

• 12:23David Hoffman?

  Wow.

• 12:23Ryan Sean Adams?

  7 million.

• 12:24David Hoffman?

  7 million.

• 12:25Ryan Sean Adams?

  Got to find those gems.

• 12:26David Hoffman?

  A year and a half ago. Wow.

• 12:28Ryan Sean Adams?

  Got to bet on the communities before everybody else knows about them. And they were hustling. They were building.

• 12:33David Hoffman?

  This is why it pays to use DeFi. Like if you just even had like, I don't know, what would $100 have gotten you? It would it would have turned $100 would have turned into like tens of thousands, hundreds of thousands.

• 12:44Ryan Sean Adams?

  Yeah, I think you're doing quite well if you're buying Axies in November, December of of last year, when the market didn't think much of them. Anyway, let's move on. Maybe that's a sad story for some who are not in AXS. Fully diluted valuation divided by monthly volume per dex. This is an interesting index from Richard Chen. What's this about, David?

• 13:04David Hoffman?

  Yeah. So this is a comparison of. DEXs on Ethereum and it compare it divides the volume that or the excuse me the valuation, the fully diluted valuation of the token divided by the volume going through the exchange. And so this kind of just tells you the valuation over volume ratio. And so Richard has compared against, you know, all the common DEXs that we know, ZeroX, Sushi Swap, Bankor, Uniswap, Curve, Balancer, Kyber. And he's organized it against like the the ratio of how much volume versus how valued the project is. ZeroX coming in on top, followed by Sushi Swap as extremely favorable volume to market cap ratios. And then coming in last is Balancer and Kyber as in a high

• 13:49David Hoffman?

  ratio of market cap versus total volume going through the system.

• 13:53Ryan Sean Adams?

  So potentially overvalued on this metric versus

• 13:56David Hoffman?

  On this one particular metric, right.

• 13:57Ryan Sean Adams?

  Sushi Swap are potentially undervalued on this metric, which is interesting to look at. I love that we're getting more granular in our sort of valuation metrics for this asset class, particularly exchanges. It's super cool. I wanted to show this off to you, David. This is a website called deepdao.io. These are the people that are most active in governance. You know, on Bankless, the newsletter, you remember that newsletter we have, David?

• 14:19David Hoffman?

  What?

• 14:20Ryan Sean Adams?

  Yeah, it's pretty cool. You should subscribe if you haven't.

• 14:24David Hoffman?

  I'll check that out.

• 14:24Ryan Sean Adams?

  We published a post. It was called, I don't remember what it's called, but it's about building your your defi, building your resume on Ethereum. It's the idea that your Ethereum address is your resume. And this is what I see. This is the people in governance who have the most number of proposals, most number of votes, are involved in the most number of DAOs. And this is like a leaderboard, right, for them. So we've got a person by the name of Ven Gist, we've got Peter Pan, whom we know, had on Bankless, we've got Koopa Troopa, he's number four, we've had him on Bankless before.

• 14:58David Hoffman?

  Top tokens, Bankless DAO, nice, all right.

• 15:00Ryan Sean Adams?

  Yeah, exactly. And like, it's super cool to see that some of these DAO participants are getting recognized on leaderboard. This, start thinking about this as your new resume, your new digital reputation, right? Like, back to the Josh Rosenthal episode, you know, new Medici, the crypto Medici, this is the crypto Renaissance. What are you doing to build your resume? These people are building it through participating in governance, participating in DAOs. And you're being recognized for this because all of this is open, can be displayed in these kind of leaderboards and benchmarks. Super cool.

• 15:36David Hoffman?

  Yeah, the right takeaway is that if you work and contribute to DAOs, you get noticed, to the point where somebody will make a website and put you on a leaderboard. That's pretty crazy. Here's a little bit of Ethereum trivia for you, for the listener. Also, this will become relevant when we do trivia at Top Signal in the future. That's going to happen. Peter Pan, number two on the leaderboard, the author of the Before Bitcoin series, which we read on Bankless a while ago. He was actually, he applied to become a Moloch DAO member, which was kind of like, you know, the original DAO that really spawned the DAO revolution. He applied to become a Moloch DAO member and was actually rejected by the Moloch DAO committee. And then he turned into one of the greatest DAOers of all time.

• 16:18David Hoffman?

  So Moloch DAO definitely did not make the right choice on that one. He eventually got, he eventually did get membership into the DAO, I'm pretty sure.

• 16:26Ryan Sean Adams?

  Yeah, he is absolutely DAOing it up and become quite good and become a thought leader in the space. So, super cool. All right, guys, we are going to get to the releases in a moment and the news and all of the other exciting things on the roll up. But before we do, we want to thank the sponsors that made this episode possible.

• 16:42David Hoffman?

  Living a Bankless life requires taking control of your own private keys. Not your keys, not your crypto. That's why so many in the Bankless nation already have their Ledger hardware wallets, which makes proper private key management a breeze. But the Ledger ecosystem is more than just a secure hardware wallet. Ledger is the combination of the Ledger hardware wallet and the Ledger Live app. And if you're used to seeing all of your crypto services and favorite D apps all in one place, Ledger is where you want to be. Not only does Let you buy crypto assets straight from the app, but it also hooks into decentralized exchange aggregators like Paraswap, which makes sure that you are getting the best prices on your trades without your assets ever leaving your control. DeFi never stops growing and the Ledger Live app grows alongside with it.

• 17:26David Hoffman?

  So click the link in the show notes to see all the DeFi apps that Ledger Live has and stay tuned as more and more apps come online. And if you don't have a Ledger hardware wallet, what are you even waiting for? Go to ledger.com, grab your ledger, download Ledger Live and get all of your D apps all in one place.

• 17:44David Hoffman?

  Arbitrum is an Ethereum scaling solution that is going to completely change how we use DeFi. If you've been using Ethereum for the past 12 months, you've probably noticed the high gas fees and the slow confirmation times that have been plaguing DeFi. Too many people want to use Ethereum and it doesn't have enough capacity for all of us. That's where Arbitrum comes in. Arbitrum is a layer two to Ethereum, which means Arbitrum can increase Ethereum's throughput by orders of magnitude at a fraction of the cost of what we are used to paying. When interacting with Arbitrum, you can get the performance of a centralized exchange while tapping into Ethereum's level of security and decentralization. This is why people are calling this Ethereum's broadband moment, where we get to add performance onto decentralization and security. If you're a developer and you want to save on gas costs

• 18:28David Hoffman?

  and make an overall better experience for your users, go to developer off chain labs.com to get started building on Arbitrum. If you're a user, keep an eye out for your favorite DeFi apps building on Arbitrum. Arbitrum has been working with over 300 teams, including Ethereum's top infrastructure projects and will be opening up to all users shortly. There are so many apps coming online to Arbitrum, so you may want to pack your bags in preparation for the great migration to the Arbitrum layer two. To keep up to speed with Arbitrum, follow them on Twitter at Arbitrum and join their Discord.

• 19:02Ryan Sean Adams?

  Alright guys, we are back talking about the hot releases. David, we have to start here.

• 19:06David Hoffman?

  This one's hot.

• 19:06Ryan Sean Adams?

  Uniswap V3 on Optimism. We've been waiting for this for months, years even, and now it's here. Uniswap on its own layer two, and you can actually use it today. In fact, you used it, didn't you?

• 19:20David Hoffman?

  I've used it. I've used it.

• 19:21Ryan Sean Adams?

  How was it?

• 19:22David Hoffman?

  Positively glorious. Oh my gosh.

• 19:25Ryan Sean Adams?

  Is this a video of you using it?

• 19:26David Hoffman?

  This is a video of me using it in real time, by the way. So this is not sped up. And so you can kind of see my mouse like erratic mouse movements as I'm kind of thinking like, oh.

• 19:34Ryan Sean Adams?

  No, no, you're just excited. Can't control yourself.

• 19:36David Hoffman?

  That's exactly right. And so I made five swaps on Uniswap. I traded like $200 of ETH or $350 of ETH to die, to ETH, to die, to ETH, to die. I didn't, wasn't even trying to be fast. I was just doing it just to do it. I made five swaps in under like 30 seconds. And that was just me tinkering around, right? And the cool thing is, is like, as soon as I hit confirm, it's done. It's done.

• 19:59Ryan Sean Adams?

  How much did it cost?

• 20:00David Hoffman?

  As well, okay, so the, the gas cost to get my Ether into Optimism cost me about 19 dollars.

• 20:06Ryan Sean Adams?

  You gotta cross the bridge.

• 20:07David Hoffman?

  Gotta cross the bridge.

• 20:08Ryan Sean Adams?

  Get over that.

• 20:08David Hoffman?

  Cost me $19 at 39 Gue, I think. So Gue price, not too high, not too low, cost me $19.

• 20:15Ryan Sean Adams?

  And that's the most expensive part.

• 20:16David Hoffman?

  The most expensive part. And then each swap cost me like .0000 something ETH. So like, there was like, I think there were four zeros before the first number of ETH transfer fees on Optimism. And so swaps were costing me pennies and they were going instantly. The cool thing, and here's what I, I think this is unconfirmed. This is my speculation. But when I hit the swap button and then confirm on MetaMask, the website UI already showed it as completed, right? And so the, the website UI showed it instantly. And I think they are doing a clever little hack where they are saying it's completed, even regardless of whether it's actually going to the Optimism chain or not. But that's the power of optimistic rollups because as soon as you sign the transaction,

• 21:02David Hoffman?

  the strength of the settlement assurances allows the website front end to just say that it was completed regardless of whether it checked or not, because it has such strong assurances. I'm speculating on whether that's true or not. Maybe they are actually talking to an endpoint and getting a confirmation. Like, yes, the transaction was included into blockchain. But it happens so fast that I think they just skipped that step because they have such strong settlement assurances that it actually did get included. So they can just say that to you, the user, yeah, your transaction went through.

• 21:29Ryan Sean Adams?

  You know, this is, this is super cool and I haven't used optimism yet, but it's got to feel like a similar experience like on Polygon, which, which I have used is it, it feels like a bandwidth upgrade, right? It feels like you're on an old, like, I don't know, 56K modem, using these websites and suddenly you get broadband, cable modem. And then it's the same thing, except it loads 10x, 20x faster, right?

• 21:53David Hoffman?

  I think, I think that's a good metaphor, but Polygon feels like the broadband moment and this feels like fiber optics. Because, because when you press the button, it's done. It's already done. With Polygon, you actually have to wait a few seconds.

• 22:06Ryan Sean Adams?

  You know, the other thing I used to be worried about with this is, I don't know, have you withdrawn anything yet?

• 22:12David Hoffman?

  They have a little bug on their, on their withdrawal bridge. So I wasn't actually able to withdraw because if you hit the withdraw button, it sent me into this loop where I needed to pick the network. But once I picked the wrong network, there was a bug in the UI.

• 22:24Ryan Sean Adams?

  Is this a UI bug?

• 22:25David Hoffman?

  It's a UI bug, yeah. And so I'm not technical enough to fix it. Yeah, we'll have it withdrawn.

• 22:29Ryan Sean Adams?

  I, I used to be more worried about that, like crossing the chasm because, you know, you paid $20 to get across the bridge. Low gas prices. I mean, that could be like $50, that could be a hundred, that could be impediment. But after our conversation with Arbitrum, I realized that this is, there's going to be so many other bridges into these rollups, right? The main bridge, maybe the most trustless bridge, censorship resistant bridge will be the bridge that you used. But bridges from exchanges are coming, right? Like directly Fiat, directly ETH from an exchange into optimism, that's coming. Bridges from other chains, like a Polygon, for instance, to optimism, that's coming. We're going to talk about that in the releases.

• 23:13Ryan Sean Adams?

  So I'm way less worried about this and it's super exciting. Now, David, correct me if I'm wrong, but optimism isn't like generally available. They are sort of going through a process of kind of permissioning and rolling out DeFi apps one at a time. Is that right?

• 23:28David Hoffman?

  That is correct. And so Uniswap coming first because it's one of the easiest things to deploy. Uniswap doesn't really need any other infrastructure. We have more to talk about with optimism further on in the rollup, but Synthetix is also coming. Coming as well as some infrastructure projects as well. Before we go on, Ryan, there's actually so much more to talk about. You talked about how the the bridge, you know, the optimism bridge. The optimism bridge is like the bridge of last resort, right? In the future, right? Like, the bridge needs to exist. The optimism bridge needs to exist. But that needs to exist so that if other bridges that are going to spin up, which we also are going to talk about in this weekly roll up. If those don't work, you have the option of using the optimism bridge. The optimism bridge existing is just to have the option, you know, the ability to escape under your own terms.

• 24:11David Hoffman?

  And then other service providers, other bridge operators, again, who we're going to talk about in this weekly roll up, are going to offer better experiences, better, you know, better times, better speeds, perhaps even better fees. I don't know. But they will be able to compete for you to use their bridge. But if they are malicious, if they go down, if they break, whatever, you have the option of using the optimism bridge with with the slowest withdrawal periods of seven days and not super duper fast deposit periods of like, I think, 20 or 30 blocks. So that's what's up with that.

• 24:43Ryan Sean Adams?

  Yeah.

• 24:44David Hoffman?

  And there's also a decent amount of, actually, if you scroll down in this tweet and we'll link the tweet in the show notes. First off, there's a meme. So there you go. And then there was also a decent amount of communication. Nick Kunkel from the Maker Dow, he talked about how there's already the die bridge is getting spin up and running. Maybe it's not showing here, but there like Maker Dow already has plans to build like the super fast die bridge. So there's already plans to like have multiple bridges on and off optimism.

• 25:12Ryan Sean Adams?

  I just think this is the, this is the theme for the first part of releases. David, you mentioned Synthetics. They are launching on optimism, the full Synthetics platform, I believe. And that is coming possibly the week of July 26. So this is coming governance. So we've got Uniswap, Synthetics will be number two. I think optimism will go more generally available a little bit later, but they are permissioning apps one at a time. We also have this, David, which is getting back to these bridges. Some of these, this is HOT Protocol. So HOT Protocol has officially announced the HOT Bridge.

• 25:49Ryan Sean Adams?

  They're starting with instant USDC transfers between Ethereum, Polygon, and X-Die. So two sidechains and Ethereum obviously expand to Arbitrum, Optimism as Layer 2s. And this provides the ability not to, you don't even have to go to mainnet. You could just move your USDC assets directly from Polygon to X-Die. Or in the future, directly from Polygon to Optimism if you want. And this is super cool. And I believe state channels is actually the technology behind a hop protocol.

• 26:26David Hoffman?

  The, the, in the future, when we say like, oh yeah, I used to have all my assets and do all my trading on the L1. That's going to be such a crazy statement in the future. There's so much infrastructure getting built out. That means we will never actually have to touch the L1. Like the L1, the floor is lava. Like you don't gotta touch it. Like you can just go from sidechain to L2 to sidechain to L2, all using payment channels. We'll never actually touch the L1 anymore.

• 26:51Ryan Sean Adams?

  No, the rollups will be touching it.

• 26:54David Hoffman?

  Yes.

• 26:54Ryan Sean Adams?

  And this is thing, again, I was worried about that is diminishing over time, which is like a couple of years ago, sort of realized that the entirety of DeFi would need to be re-architected on Layer 2. But it's happening. Look, Gnosis Safe, Gnosis Safe is live on Layer 2s. So they deployed on Polygon, Binance Smart Chain, these are not Layer 2s, we call them sidechains, X-Die, but also Arbitrum coming soon, then Optimism. So that's some key infrastructure that we need. We've got Coinbase Wallet now supporting Polygon. So you can actually switch from the Ethereum mainnet to Polygon. You also see the Optimism mainnet there. So we're getting wallet support.

• 27:36Ryan Sean Adams?

  We also have the SET protocol launching on Polygon. So you can buy your DPI and in the future, your bed index, guys, coming soon on the Polygon network as well. I'm just running through these, Infura is now supporting Arbitrum 2. So the process of DeFi being re-architected on Layer 2, it's happening like right before our eyes. And it's going pretty well so far.

• 28:01David Hoffman?

  Imagine being an ETH killer right now.

• 28:04Ryan Sean Adams?

  I don't know.

• 28:05David Hoffman?

  That's all I have to say.

• 28:06Ryan Sean Adams?

  I can't imagine.

• 28:07David Hoffman?

  I cannot imagine.

• 28:08Ryan Sean Adams?

  Cannot.

• 28:08David Hoffman?

  Nor would I want to.

• 28:09Ryan Sean Adams?

  Imagine. I mean, the prices are doing okay, though.

• 28:12David Hoffman?

  Yeah, sure.

• 28:13Ryan Sean Adams?

  For now.

• 28:13David Hoffman?

  Fundamentals and prices are separate things, as we know.

• 28:16Ryan Sean Adams?

  As we know. Okay, so where are we now? Let's talk about this. Dow Jones is launching, just launched five crypto indices. You know what's weird about this, David, is so, first of all, this is the S and P Dow Jones indices. So this is a big deal, right? Like, everywhere here, index quoted for stocks is like S and P 500 or Dow Jones Industrial Average. Now, these indices players are coming into crypto and they're creating indexes of their own. What's super weird is I have like no visibility into what these things are.

• 28:50David Hoffman?

  Right.

• 28:50Ryan Sean Adams?

  Like clicking around, trying to find actually what these indexes are composed of, and it's very difficult.

• 28:55David Hoffman?

  We couldn't find the answer. We spent like 10 minutes trying to figure it out before the show. We couldn't find it.

• 29:00Ryan Sean Adams?

  And what was crazy is just there's such a contrast between open finance. Like, if you want to peek into what is inside of the DPI, that's, that's, you know, the token set technology, that's index co-ops index. You can see exactly what it's composed of in real time. You could verify that and check that on chain. And for these indexes, you have to, I don't know, dig through their methodology.

• 29:24David Hoffman?

  Call customer support? I don't know.

• 29:26Ryan Sean Adams?

  I don't know either. It just seems.

• 29:28David Hoffman?

  The categories are a large cap index, and then they have another index that excludes Bitcoin and Ethereum. And then they have another index that excludes Bitcoin and Ethereum and other large caps. So I think it's like different scales of market cap. But again, just tell us what they are. And also the weighting. Like, what's going on here?

• 29:49Ryan Sean Adams?

  I guess.

• 29:50David Hoffman?

  B5 Pulse and Index Co-op are leagues ahead of you guys, and you guys have been doing this for centuries.

• 29:55Ryan Sean Adams?

  Yeah. Well, it's just they're, they're, they're building it on, on close finance and traditional finance. And that is the constraint there. But I guess it is a big deal that S and P continues to come up with these indices and mainstream crypto. So it's kind of cool.

• 30:08David Hoffman?

  They're trying.

• 30:09Ryan Sean Adams?

  They're trying their best.

• 30:09David Hoffman?

  Trying. They're doing it.

• 30:11Ryan Sean Adams?

  Work harder, work faster, guys. All right, Nifty Island. What, what's this?

• 30:15David Hoffman?

  So Nifty Island is a new game, a game verse is what they're calling it. And it's a place for you to take all your NFTs and put them on your island. So in crypto, we all want to get our islands. Now you can go get your island and you can put all your NFTs there. And so it's a place, it's a virtual world, a metaverse world where you can physically place all of your crazy awesome NFTs that you want to show off all of your friends. And I think the grand vision is much more grand than that. It goes and goes, goes from there. But the idea is that this is a game, a physical or a virtual reality, virtual world where you can come and put all of your NFTs. And so you can go and check out other people's NFTs, go to other people's islands. The vibe I'm getting is kind of like a second life type of game where you actually like

• 31:00David Hoffman?

  exist in this virtual world and you can go from place to place. And then you can have your own island with all of your own NFTs.

• 31:05Ryan Sean Adams?

  Look, this is appealing. Millionaires will be made in the metaverse. So David, David, come to my.

• 31:11David Hoffman?

  Come to your millionaire island.

• 31:13Ryan Sean Adams?

  Millionaire island and check out all my.

• 31:15David Hoffman?

  I want to, I want to go to DC investor's island because I think his, his island is probably pretty dope.

• 31:21Ryan Sean Adams?

  You can't afford to get to his island.

• 31:22David Hoffman?

  DC will let me into his island.

• 31:25Ryan Sean Adams?

  Maybe. All right. Ultrasound Money, ultrasound dot money is now a website. Wow, the meme became a website and a nice website at that. I don't even know who's behind this, but good job, whoever is behind the ultrasound money website. This is displaying, we have 19 days, 22 hours before EIP 1559, which we weren't going to say in the show, but we absolutely have to. This is a chart of the total ETH supply over time with projections. You can, you can dial this up or dial this down based on assumptions around staking amounts, based on gas price. Really great user interface for this.

• 32:03Ryan Sean Adams?

  And then you could join the 167, 1,672 members who are wearing the bat signal in, I guess their social media profile.

• 32:13David Hoffman?

  Twitter, yeah.

• 32:14Ryan Sean Adams?

  You're there. Super cool. I, this is a cool place to send people when they ask about ETH's monetary policy because it just sort of sparks the conversation and displays in real time, what is about to happen.

• 32:26David Hoffman?

  I think this is really just illustrates how much excitement and energy there is behind the ultrasound money meme. At the end of the day memes are memes, but also in crypto memes are also fundamentals. And so this is just a really strong indicator that the ultrasound money meme is turning into real website infrastructure to help you to help support the metrics and the ultrasoundness behind the ultrasound money meme. And so after, you know, after 19 days, after EIP 1559 gets integrated, I'm excited to see what this website turns into, right? Because now the next step is the merge. And so I think this is just going to be a website that really illustrates this ultrasoundness behind ultrasound money.

• 33:04Ryan Sean Adams?

  Absolutely. And it definitely projects, as Justin Drake has said, we'll never have above 120 million ETH, which is very likely. So, super cool. All right, let's, let's talk about this. The Infinite Garden, this is a documentary, like a movie that somebody is making about Ethereum. They're going to be talking to like folks like Vitalik, people in the Ethereum ecosystem. What's this about?

• 33:29David Hoffman?

  Yeah, so this is exactly as you just said, there's a documentary being crowdfunded on the mirror platform, which is pretty cool, with illustrations coming from People Pleaser, the, the artist that made the Uniswap X times Y equals K NFT, which is the thing that started off the People Pleaser DAO. And so now she has been, been recruited by this documentary, this team making this documentary to make Ethereum's first movie, which I am absolutely stoked for.

• 33:58Ryan Sean Adams?

  David, do you notice this dude? I just noticed this.

• 34:00David Hoffman?

  Yeah.

• 34:01Ryan Sean Adams?

  Who's out in the corner?

• 34:01David Hoffman?

  That's Kevin O'Waki.

• 34:02Ryan Sean Adams?

  We might be in this!

• 34:04David Hoffman?

  Yeah, that's Kevin O'Waki probably doing our State of the Nation with him. Yeah, so we were on the other side of the computer.

• 34:10Ryan Sean Adams?

  Yeah, we were on the other side. Maybe we'll get it. Maybe it'll be a cameo. God, that'd be amazing. I'd be so excited about that.

• 34:17David Hoffman?

  I've always wanted more, more documentaries, more Ethereum content, like more high production value stuff, because I think there's just, there's more attention needs to come to this space. Obviously, I believe this. And I'm glad to see some like high production efforts being made to, you know, tell the story of Ethereum. It's a really good story.

• 34:34Ryan Sean Adams?

  Absolutely. So many cool stories coming out of it. Ethereum. All right, let's breeze through the raises really quick. This has been like raise week. So Superfluid has raised $9 million. This is kind of a real time finance protocol. Basically, you can do payroll, this sort of thing. It's all deployed on a layer two using stablecoins, using essentially crypto infrastructure. Any thoughts here?

• 34:56David Hoffman?

  Yeah, so this is this is a kind of an evolution on what Sableer was trying to do, streaming payments, making payments as discreet as time itself. And so, you know, in Ethereum, we have 12 second blocks on L2s. It goes even faster. And so there's no reason why pay periods need to be two weeks or any like, you know, time barrier like that. All of a sudden, we have, we are able to link the concept of time and payments, time and value transfer. And that's what Superfluid is doing. Disclosure, I am part of the ECE investment team.

• 35:28Ryan Sean Adams?

  Congrats.

• 35:29David Hoffman?

  Thanks.

• 35:30Ryan Sean Adams?

  All right, let's talk about this. Connects raised $12 million as well in a in some new funding. This is similar to HOP in that it's providing chain to chain sort of change of scene, payment channels and transactions.

• 35:48David Hoffman?

  Right. And so when we were talking earlier about all these different bridges that are going to be spanning Ethereum and optimism and Arbitrum, Connects is one of those service providers. Connects is payment channel infrastructure. They've been around Ethereum for forever, working on payment channel technology, kind of trying to figure out what the best place to apply it is. And, you know, Ethereum in its current form up until now really hasn't needed payment channels above and beyond really specific use cases. But as soon as we have like, you know, the optimism chain, the Arbitrum chain, the Polygon chain, XDi, like maybe even more optimism chains, even more Arbitrum chains, because there can be many of those. All of a sudden, we have like a whole entire mesh network of L2s.

• 36:31David Hoffman?

  And we need more efficient ways to route orders between all of these L2s, right? And so, you know, Connects is being the payment channels between all of these different chains, between Ethereum and L2s, L2s and L2s, L2s and sidechains. Other L1 blockchains and so Connect's as payment channel technologies finding finally finding its place where it's really going to thrive and congrats to the raise. We did a fantastic meet the nation with Arjun Bhutani from Connect forever ago. Really, really good episode to understand payment channels and how they fit into Ethereum. Also disclosure, Ryan and I are both seed investors into Connect's network.

• 37:11Ryan Sean Adams?

  Congrats.

• 37:12David Hoffman?

  Congrats to you, sir.

• 37:14Ryan Sean Adams?

  I'm gonna say that every single time. All right, BlockNative as well, mempool.eth, super cool. The mempool is a dark forest. This is basically the place all transactions go before they're fully processed. A lot of MEV takes place there. So these guys are providing visibility to DeFi protocols for this to help the DeFi protocols design a bit more tightly, illuminating the dark forest of the mempool is kind of how I'd summarize this. They just raised $12 million in season and series A financing. So cool to see this infrastructure being built out and funded.

• 37:48David Hoffman?

  So just what I was saying with all of these different L2s and sidechains, each one has a mempool. Every single chain has its own unique mempool and BlockNative is mempool infrastructure. So imagine a world where there's like a bajillion L2s. There's going to be multiple different ways to do from to get to point A to point B, right? Like you have USDC on Arbitrum and you need to get DAI on Polygon. There's going to be like seven different routes to get there and BlockNative and its mempool infrastructure is going to help you or route your order across, you know, the hot protocol or Connect's network or like different different L2s, different different bridges. BlockNative is going to find the most efficient route to make your point A to point B transaction

• 38:33David Hoffman?

  the most efficient and most speedy. And that's what the mempool infrastructure allows you to do. Disclosure, Ryan and I are also seed investors into BlockNative. Congrats.

• 38:44Ryan Sean Adams?

  Beat me to it.

• 38:45David Hoffman?

  Right.

• 38:46Ryan Sean Adams?

  Congrats. All right. DeFi Wallet Phantom, the DeFi Wallet Phantom just raised nine million Series A funding led by A16Z. This is not a wallet I've used before and it has actually been deployed first on Solana. So I think that's where it's kind of made its initial home. Then it is going to deploy on Ethereum here shortly and also all the side chains, Polygon, Arbitrum, Optimism, ZK Sync, maybe give MetaMask a run for its money. I'm not sure. It's cool to see this infrastructure funded though. I'm pleased to see that for sure. Also, guys, crypto is of course hiring. Crypto is always hiring. Bankless just published a job board. There are some great positions on there. Over 27 already. We've got a senior

• 39:30Ryan Sean Adams?

  solidity engineer, quant finance. If you are a dev, check that out. Chief Investment Officer, CIO for Yield App, a software engineer for Arbitrum. Check that out too. Senior Designer for Pull Together, editor and writer for Bankless. Got to plug that one. We are still looking for an editor or writer. Go over to the jobs link in the show notes to check out all of those jobs. We update them on a daily basis and then also weekly expect fresh jobs.

• 39:58David Hoffman?

  That was just the first five jobs. There are 27 total jobs on the job board. So definitely go check those out. Crypto is hiring. All these seed investments are being thrown around. There's money being thrown around in this industry. People are hiring to help build out this industry. That means you. Whatever, whatever the Ethereum version of Uncle Sam is, he wants you to come work for Ethereum. And so go to the jobs board and find a job.

• 40:21Ryan Sean Adams?

  All right, David, let's get to some news. Let's start with this news. So the news of the week was Uniswap's DeFi education fund and worries around this. I've been following this story a little bit. I know you've jumped into it. Why don't you give us the high level of what, what this story is about?

• 40:38David Hoffman?

  Yeah, we covered this on the weekly roll up, I think, two weeks ago. And so, you know, Uniswap has that massive treasury and there was a, an education team that came together who wanted to get some funding out of the Uniswap treasury to help promote DeFi education to regulators, you know, institutions. I think I think more formal education rather than than like what I would call whatever we are doing at Bankless. Where like these people are going.

• 41:02Ryan Sean Adams?

  It seemed like a lot of lobbying as well.

• 41:03David Hoffman?

  Lobbying lobbying, I think is a lobbying education type of things like, you know, Jake Trevinsky.

• 41:07Ryan Sean Adams?

  Educate lawmakers.

• 41:08David Hoffman?

  Was was on there and he has, you know, a strong in interest in educating lawmakers.

• 41:15David Hoffman?

  There's seems to be a story here about how this group came together and some of the decision making behind the actual funds and so the the there's a little bit of controversy with the actual proposal to Uniswap where the DeFi Education Fund proposed that they received half a one million uni tokens, which would be like 15, 20 million dollars total.

• 41:40David Hoffman?

  And they express intentions if they were to receive the receive the money to sell it over time. There there's also a little bit of controversy as in members of the DeFi Education Fund voted yes on their own proposal, which is totally kosher, but also just, you know, raise raise some eyebrows. And so then then the DeFi Education Fund proposed or indicated their intent to sell the uni tokens slowly over the next four to five years. As soon as they got their hands on the actual tokens, because apparently the governance proposal passed, so they got their one million uni distributions. They sold 50% of them immediately for 10.2 million USDC. And and so there was a little that caused a bunch of hubbub and this has, you know, caused a bunch of controversy with DAO governance and, you know,

• 42:25David Hoffman?

  is what's really going on here? Is there? Has there actually been any malicious, you know, activities that's up for debate like, you know, people are communicating one thing and doing another thing? Is that really is that's bad is what's going on here? People are confused and they're all having their own their own takes about it. But overall, this has caused a bunch of drama and controversy in the space.

• 42:44Ryan Sean Adams?

  Yeah, so I guess the facts of the case were 20 million got funded for uh by education fund. They said they were going to sell it over three to four years. It turned out 50% of that 20 million, so 10 million was actually insta-selled.

• 42:58David Hoffman?

  Insta-sold, yeah.

• 42:59Ryan Sean Adams?

  Yeah, fairly quickly. And then there's also the concern that um some insiders maybe are benefiting from this, right? So like, and some whales within Uniswap are kind of voting this in to sort of push it through. Um, and I'm not sure the validity of of those concerns either. But um like Kobe had an interesting uh interesting proposal here. I like, I think it's satire, but.

• 43:24David Hoffman?

  Absolutely satire.

• 43:25Ryan Sean Adams?

  Yeah, so what's this, what's this proposal? He he published this on the Uniswap governance um forum. And uh, yeah, what what's he saying here?

• 43:34David Hoffman?

  Yeah, he's proposing a 1 million uni token distribution, same amount as the DeFi fund uh for the removal of established cranial follicles. He's talking about shaving his head. So he wants to be paid 1 million uni tokens to shave his head. So he's making a farce out of the whole DeFi uh education fund uh thing. And and he's kind of just making a trying to, you know, use satire as a tool to illustrate what the problems perhaps were with the DeFi education fund proposal.

• 44:02Ryan Sean Adams?

  What are the problems? What do you think?

• 44:05David Hoffman?

  You know, perhaps some insider dealings, some, you know, some, some people that are inside the industry, talking to other people who are having a privileged position, saying, hey, like, accept this proposal. Like, use my legitimacy to accept the proposal and then send us the money. Again, like, the money hasn't been, to my knowledge, hasn't been allocated anywhere. And so maybe the biggest error was that they just sold the tokens faster than they originally communicated. Maybe they're, maybe, maybe they don't have a good treasury management team in place. And so maybe the whoever was in charge of of the uni tokens got spooked by the market. And it was like, oh, I'm got to sell all these before the market goes down. Maybe maybe there was some immaturity in treasury management. I don't really know.

• 44:45David Hoffman?

  But, you know, a lack of standardization and best practices was definitely present. Uh, I think the story, it could fizzle out into nothing. It could turn into a much bigger story. I don't really know.

• 44:57Ryan Sean Adams?

  What's interesting about this, though, but isn't this just like token vote? Like, isn't this how token votes work? Right? Like, the token votes are essentially like shareholders of the protocol. And they get to vote on how the treasury is used, right? Like, that's what a governance token is for. So at some level, like, I'm not surprised that whales are dictating governance proposals.

• 45:24David Hoffman?

  Right.

• 45:24Ryan Sean Adams?

  Because that's the design of token vote protocols.

• 45:28David Hoffman?

  Right.

• 45:28Ryan Sean Adams?

  And like, the reason I say that is because sometimes I'm a little bit annoyed or bothered when people talk about like, decentralized governance, you know, to equate that with with token vote. No, it's not quite decentralized governance, right? It's like open permissionless governance. But it's the same core governance mechanism we use to C corps. And a set of shareholders and board of directors. And there definitely needs to be some accountability in all of those processes. But I guess part of me is like, not surprised that whales can push through a vote. Because of course they can.

• 46:07David Hoffman?

  Yeah, and I think maybe maybe this is no different. Maybe this is kind of the status quo. But importantly, we can all see it. We can all see it happening. And so if we don't like that, the community, you know, raises a hubbub, which is definitely what's happened.

• 46:20Ryan Sean Adams?

  Yeah, so we'll have to see how this progresses, but definitely interesting. David, this is cool. Brazil SEC has just approved an Ethereum ETF. It's 100% Ethereum. When SEC, when US SEC, are you going to allow us to have even a Bitcoin ETF? Let's start there. We're falling behind.

• 46:38David Hoffman?

  Is the US just going to be the last country to have crypto ETFs in it? Like, I remember asking Hester Purcell when she was on the podcast, like, yo, like, the longer and longer, I said, yo, I did not say yo. The longer and longer that the US does not have a Bitcoin ETF or a crypto ETF, the more and more it becomes like a political statement, right? And she completely rejected that premise, but my conspiracy hat is still on like to some degree like the US is the last country that technically wants crypto ETFs because it subverts the dollar and it'll they're on the on the right path to literally becoming the last country with a crypto ETF.

• 47:15Ryan Sean Adams?

  Well, you do have to ask why. And so I don't know what the explanation is. That's one possible explanation, but it is super weird that all of these other countries are getting crypto ETFs and the US doesn't have one.

• 47:27David Hoffman?

  The US wants the crypto ETF the most. I mean, the US populace at least, right? And so like the US regulators are just not responding at all to what the people want.

• 47:35Ryan Sean Adams?

  Yeah, absolutely. We'll see when the big banks start to get involved. What what happens with that? I bet it moves forward faster.

• 47:42David Hoffman?

  Wouldn't that be ironic because the banks got our ETFs before we got our ETFs?

• 47:45Ryan Sean Adams?

  Yeah. Stani is saying a new version of the AVE protocol is now in audit. This team just keeps shipping. I'm pretty excited to see.

• 47:52David Hoffman?

  Well, this is just a tweet, but I don't I definitely believe him. But, you know, or excuse me, Stani just said, new version of AVE protocol in audit. I wonder what they got. I wonder what tricks the new version of AVE has.

• 48:03Ryan Sean Adams?

  I'm excited to see. Shapeshift is turning into a DAO. We're gonna have Eric Voorhees on the podcast on Tuesday to talk a little bit more about this. But what is this about, David?

• 48:15David Hoffman?

  Yeah, so Shapeshift has had this crazy trajectory, crazy story. Started off as a place where you could swap tokens in a non-custodial fashion. And so they you would like say you wanted to trade, this was very big in 2017, say you wanted to trade Bitcoin for Ether or like Ether for Monero. These are cross-chain swaps. So you would go to Shapeshift, you would, you know, they would tell them, hey, I have Ether, I want Monero. So they would give you an Ether QR code, you would send your Ether there, you would also give them a Monero deposit address and they would send Monero back. So it was trusted, but they it was more or less atomic, right? Like you would send your Ether there and they would make the trade for you with their own like liquidity providers, their own trading desks, and then they would send you Monero on the other side.

• 48:57David Hoffman?

  The SEC did not like, or maybe it was the CFTC, can't remember. Regulators did not like that they weren't taking, there were no user accounts and there were no signup, no KYC process. And so they had to shut that down and start, you know, forcing people to actually sign up and KYC with them, which kind of ruined the whole value proposition of Shapeshift. Then Dex Aggregators came along and Shapeshift turned into, you know, a normal permissioned exchange, which they didn't want to be. And then they became a Dex aggregator. And that happened, that was the last, actually, the last time we had Eric Voorhees on the show, was when Shapeshift turned into a Dex aggregator. One of the benefits is with Dex aggregators, you can go back to the model of not having

• 49:38David Hoffman?

  KYC information forced upon your clients. So people can just sign up, just like we use Matcha or One Inch, you can now use, you know, Shapeshift. Now, Shapeshift is going into a DAO. So they're trying to just cut out all of this, the, you know, the company, basically, and turn their, their organization into a DAO. Lots of questions here. How does this even work? You already have a company. How do you turn that company into a DAO, right? This is not like Bankless LLC spinning up Bankless DAO. We spun up Bankless DAO separately. We kept the LLC. What's going on with Shapeshift is that they are turning the LLC into a DAO. Why are they doing this? I don't know. How are they doing this? I don't know. We're going to find out on the State of the Nation on Tuesday with Eric Voorhees.

• 50:20Ryan Sean Adams?

  Yeah, he's, Eric Voorhees, whenever you talk to him, I love that he always starts with values and principles, right? Unorthodox, but it is the only way to maintain fidelity. Talking about Shapeshift decentralizing is the most important principles of crypto is why they're doing this, specifically self-sovereignty over money. Without that principle upheld, we're all just LARPing. I'm excited to have that conversation. Give me good.

• 50:46David Hoffman?

  Yeah.

• 50:46Ryan Sean Adams?

  David, let's turn to NFTs. American Express is doing NFT, NFTs as a credit card perk.

• 50:53David Hoffman?

  Yeah, so.

• 50:54Ryan Sean Adams?

  Weird, interesting.

• 50:56David Hoffman?

  Very weird. The company is offering its cardholders a chance to purchase 14 unique digital images from, from a recent performance by the R and B singer Zaa. That's the.

• 51:06Ryan Sean Adams?

  It's SZA.

• 51:07David Hoffman?

  No, it's Zaa.

• 51:08Ryan Sean Adams?

  Really?

• 51:09David Hoffman?

  Yes.

• 51:10Ryan Sean Adams?

  No, it's SZA, isn't it?

• 51:12David Hoffman?

  No, it's, I'm pretty sure it's Zaa.

• 51:14Ryan Sean Adams?

  Okay.

• 51:16David Hoffman?

  Oh, God, one of us is right, one of us is wrong.

• 51:18Ryan Sean Adams?

  What's wrong?

• 51:19David Hoffman?

  I'm pretty sure it's me.

• 51:20Ryan Sean Adams?

  And we're all doubling down.

• 51:21David Hoffman?

  I'm pretty sure it's me.

• 51:22Ryan Sean Adams?

  All right. Well, you know what? We're not even going to Google this. We're going to just let, um, let

• 51:25David Hoffman?

  Twitter will let us know.

• 51:27Ryan Sean Adams?

  All right. Anyway, what's, what's the story here?

• 51:30David Hoffman?

  Oh, gosh, a very weird perk, right? Like, do American Express cardholders really want Zha NFTs? I'm going to go with no, they don't.

• 51:40David Hoffman?

  Not really the right perk for the, for the specific clientele, but

• 51:43Ryan Sean Adams?

  They're trying.

• 51:44David Hoffman?

  They're trying. They're trying.

• 51:46Ryan Sean Adams?

  I guess that's interesting. This, I think, is much more product market fit. So Space Jam is getting NFTs. New Space Jam movie coming out. It's going to be accompanied by NFTs. Super cool. I think the meme protocol is involved with this as well. You can claim a free NFT right now. You might just get a legendary LeBron is the tweet heading. Uh, pretty cool. What's happening here?

• 52:07David Hoffman?

  Yeah, uh, they are launching a, an official NFT collection for the Space Jam movie, uh, which I didn't even know was getting a sequel. Uh, I'm not sure Space Jam needed a sequel, but I guess it's getting it. Hopefully.

• 52:19Ryan Sean Adams?

  Every 20 years or so, whatever.

• 52:20David Hoffman?

  I guess so.

• 52:21Ryan Sean Adams?

  30 years.

• 52:22David Hoffman?

  Um, and so we'll, we'll see what's going on with this.

• 52:25Ryan Sean Adams?

  Yeah. All right. Super cool. Let's go Bitcoin stuff. So Jack Dorsey wants to build a Bitcoin hardware wallet. Definitely doubling down, tripling down, quadrupling down on Bitcoin.

• 52:35David Hoffman?

  Yeah. I didn't know the hardware wallets were an unfinished product problem in this space. I kind of considered hardware wallets as generally a solved problem.

• 52:43Ryan Sean Adams?

  Yeah, I don't know what he's going to do to add to it. You know, it'd be cool. I think if Square's listening, Jack Dorsey, if you're listening, uh, go build a really awesome smart contract wallet.

• 52:52David Hoffman?

  Right.

• 52:52Ryan Sean Adams?

  That'd be cool. It's all software.

• 52:54David Hoffman?

  Yes. Yeah. And the, the competitive landscape for smart contract wallets is rich, especially with all of these L2s, right? Like new playing field.

• 53:03Ryan Sean Adams?

  Absolutely.

• 53:03David Hoffman?

  That would be way cooler.

• 53:05Ryan Sean Adams?

  But, you know, he'll get there.

• 53:06David Hoffman?

  Okay. All right. Bitcoin. All right. Cool.

• 53:08Ryan Sean Adams?

  Regulation TradFi, let's talk about this. The former New York Stock Exchange president is taking a crypto exchange public via a SPAC. It's interesting, this exchange is going to be called Bullish. What's crazy about this, David, is a whopping $9 billion valuation for an exchange. It's not DeFi, this is something more akin to maybe a Coinbase that hasn't launched yet, has no users, no volume, no revenue, no branding. Bullish?

• 53:42David Hoffman?

  Yeah, the name is bullish.

• 53:43Ryan Sean Adams?

  I am not bullish.

• 53:44David Hoffman?

  I'm not bullish, you're absolutely.

• 53:45Ryan Sean Adams?

  You might be trying too hard if you're calling yourself bullish. Maybe I'm just being overly skeptical here, David, but like, what is this? I know, obviously, crypto banks are huge, like Coinbase, Gemini, Kraken, these are all very successful businesses. But you have to go beat these other organizations and you're starting with nothing and you're already valued at $9 billion? What gives?

• 54:06David Hoffman?

  Right, like Coinbase is already public, like all these other exchanges, they've gone through some of the trials of getting an exchange up and running. They've already overcome some of the obstacles. All of a sudden, there's this brand new crypto exchange with a terrible name, valued at $9 billion. What the reason why it's valued at $9 billion is because Block1 is an investor into this SPAC and Block1 is the company that spun out EOS and took $4 billion of incoming revenue to make EOS and then turned it into Bitcoin, didn't sell it, and then that Bitcoin has now, you know, gone up in price. And so I think, if I remember correctly, they are putting $6 billion into this SPAC for some reason.

• 54:49David Hoffman?

  There's something going on behind the scenes on this story that is not making it to the forefront. And so it will be a story that we will have to keep tabs on. Anyways, through line, not bullish on bullish.

• 55:01Ryan Sean Adams?

  That is a through line. I had bullish on this, though. Fidelity Digital Assets, this is a bank that's been in the crypto space for a long time, like 2015 or even before. They are planning a big.

• 55:13David Hoffman?

  Pioneers.

• 55:14Ryan Sean Adams?

  Yeah, pioneers, a big headcount boost in response to institutional interest in crypto. That's two levels of bullishness. So, one, they're seeing this institutional interest, right? And two, Fidelity is just hiring like crazy. Cool to see that.

• 55:30David Hoffman?

  Yeah, it's hard to claim that the whole institutions are coming is a meme when you see Fidelity Digital Assets hiring as many as 100 employees to help bolster cryptocurrency projects in response to institutional demand, right? Like, no, if institutions are coming, that's not a meme. They're actually here. Like, Fidelity wouldn't just randomly hire 100 people if it actually wasn't legitimate.

• 55:52Ryan Sean Adams?

  No, they're making another big bet here. They are doubling, tripling down on this. Let's talk about inflation, David. Did you know we are at 5.4% CPI inflation year over year as of this month? I think those are for the month of June, year ending June. Like, this is probably 10% higher than what anybody anticipated. Getting hot. 5.4% is getting hot. I mean, we're just another doubling away from double digits here. I don't know that that's going to happen, but this is something that is going to impact not just crypto, but everything.

• 56:27David Hoffman?

  Everything, right.

• 56:28Ryan Sean Adams?

  And I want to learn more about like, why this is happening, what the story behind inflation actually is, too.

• 56:35David Hoffman?

  I saw a funny meme about this earlier where it talked about how like economists and the Federal Reserve, they're all super surprised about 5.5% inflation. Meanwhile, Bitcoiners were telling, were telling the whole entire world that this was coming for the last three years. Bitcoiners know the economy better, like the inflation schedule better than, you know, economists, right? And I was at the Bankless DAO meetup on LA. I thought, what I thought was a pretty good take is that if the number one thing that Bitcoiners are right about is the fiat commentary, commentary on fiat money and like the value of the dollar and the inflation of the dollar. They are on the ball when it comes to, you

• 57:17David Hoffman?

  know, fiat monetary policy and inflation more than they are about Bitcoin. They are more knowledgeable about the dollar than they, than they are about crypto, which is hilarious. That's my hot take. Anyways, we are actually recording with Lynn Alden on Monday about this specific topic about inflation. And this conversation has proliferated into all corners of finance, right? I follow some of the You know, big Twitter accounts in the TradFi space who kind of just do commentary on, you know, just Wall Street culture and finance culture. And they all are just making a complete farce out of the Federal Reserve and the world of inflation, right? Everyone who's observing, the individuals, the humans, rather than the firms or the regulators,

• 58:01David Hoffman?

  no one is surprised about inflation. It makes sense to everyone. And all the individuals, all the meme accounts, the Twitter accounts are making fun of economists and Fed board members about their surprise about inflation. Or talking about how they're trying to say like inflation's transitory, or no, just kidding, inflation is good. They keep on changing their approach as to inflation. Meanwhile, the people know, the people who are paying attention figure it out. Like, the value of the dollar is declining and the powers that be are trying to ascribe some sort of, you know, reasoning or rationale to it, when in reality, like, no. It's like, this is just what's going on in the world of the 2020s. The value of the dollar is declining.

• 58:44Ryan Sean Adams?

  And it's absolutely something I think people need to wrap their heads around in order to be equipped, equipped to survive and thrive in the 2020s. Because inflationary world is going to be a different world. We had asset inflation last decade. Looks like this decade might be seeping into consumer price index inflation. So it's something everyone needs to be cognizant of. We're going to continue to talk about this. You know, I ran across this story in one of the newsletters I read. This is fintech is basically trying to get better access to Fedwire, which is the payment system that undergirds the entire US banking system.

• 59:22Ryan Sean Adams?

  So fintech, if you're a PayPal or a Square, any fintech company, you want better access to using Fedwire directly. Well, the banks don't want this. The banks are lobbying for tighter controls on fintech and their access to federal banking system. Basically, they're saying, no, you have to be a bank and you have to walk through all of the hoops, step through all of the hoops that we have stepped through in order to have this privilege. You know what's so interesting about this, David, is as fintech and the banks kind of fight on this. Like, the banks are threatened by fintech, but they're going to absolutely win this battle. But they're just going to push fintech into the arms of DeFi. Is my take, right?

• 1:00:07David Hoffman?

  Oh, we won't, we can't use Fedwire? We'll just use USDC, whatever.

• 1:00:10Ryan Sean Adams?

  Exactly, exactly. So I'm not sure that the banks are fully equipped for, for the next battle that's coming, but I do think a battle will come there and the banks are not going to like it.

• 1:00:21David Hoffman?

  Right.

• 1:00:21Ryan Sean Adams?

  If, if fintech starts using USDC for banking, bypassing the banking system, there's going to be some issues and I, I wonder how regulators then, and the US is going to handle all this, but it's interesting to see.

• 1:00:33David Hoffman?

  DeFi and crypto, it's like the ultimate escape hatch. It's like, oh, regulation got in the way of what I wanted to do. I'll just go do it in DeFi.

• 1:00:40Ryan Sean Adams?

  Yeah, absolutely. All right, David, let's go some, through some quick ultrasonic news here. Alchemix, A, all ETH vaults, they're back up, they're already maxed out. Pretty crazy that there had an issue where they had to take them down, but now they're up.

• 1:00:55David Hoffman?

  Hmm. Yeah, so they, they had that little bug where you could accidentally withdraw your collateral after you minted all ETH. They, that, that's in the rearview mirror. Now you can, now you can mint all ETH again. Those vaults are back up and running, already oversubscribed. They'll need to raise the debt ceiling in order to keep that going. Congrats, Alchemix.

• 1:01:13Ryan Sean Adams?

  Binance squeeze is getting a little tighter. Italy joins the list of, of countries and global regulators that are warning against Binance, a continuation of a story that we've started over the last couple of weeks.

• 1:01:24David Hoffman?

  Yep, Binance not really domiciled anywhere and the regulators of the world don't like it. And so they're squeezing Binance.

• 1:01:32Ryan Sean Adams?

  David, you do this one. Bitcoin, more hash rate migration, what's happening here?

• 1:01:37David Hoffman?

  Yeah, so BIT Digital migrating 14,500 Bitcoin mining units to the US after China cracked down. So continuation of the great westward migration of hash power, which also brings us to our next story, which is minor migration towards Ohio and nuclear power. And so I, Ohio is spinning up, not the state of Ohio, in, inside of Ohio, not, not from the actual state representatives or anything. In the state of Ohio, there is a new nuclear power plant getting, powering a Bitcoin mining facility. And so. The Chinese dirty coal mined hash power getting replaced by US domiciled clean nuclear hash power. So I consider that a win.

• 1:02:20Ryan Sean Adams?

  Hey, last thing, this is cool. MetaMask just turned five. I can't believe it.

• 1:02:25David Hoffman?

  Congrats MetaMask. Happy fifth birthday. That's really old. Ethereum's six years old.

• 1:02:30Ryan Sean Adams?

  Yeah. And, and look, MetaMask, it still feels like a kind of a brand new product in some ways. And it's already five. Wow.

• 1:02:38David Hoffman?

  Congrats to Dan Finley and the MetaMask team.

• 1:02:40Ryan Sean Adams?

  Guys, we are going to be back with some hot takes. We're going to start with a take from Jackson Palmer that you do not want to miss. But before we do, we want to thank the sponsors that made this episode possible.

• 1:02:50David Hoffman?

  When you shop for plane tickets, you probably use Kayak, Expedia, or Google to compare ticket prices. So why would you limit yourself to just one exchange when you trade crypto? When you make your trades, you want to make sure that you're getting the best possible price on your trade and that you aren't paying high gas costs that you could have otherwise avoided. That's why you should be using Matcha. Matcha routes your orders across all the various DeFi exchanges on Ethereum, Polygon, Binance Smart Chain, and gives you the best possible prices without taking any commissions. Matcha has smart order routing that splits your order across multiple liquidity sources if Matcha sees that it gets you better pricing. Trading on Matcha is super easy because it pulls the liquidity for me into a single easy to use platform. Matcha also allows for you to make limit orders on chain so

• 1:03:34David Hoffman?

  you can set and forget your DeFi trades and they will go through automatically while you're away. New to Matcha is an integrated fiat on-ramp. So you can purchase crypto directly with your credit or debit card and have that fiat be instantly traded for any token that has liquidity. When you're making a trade, head over to matcha.xyz/banklist and connect your wallet to start getting the best prices and most liquidity when you trade your crypto assets. Banklist 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

• 1:04:19David Hoffman?

  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 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.

• 1:05:03David Hoffman?

  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.

• 1:05:11Ryan Sean Adams?

  All right, guys, we are back with the takes of the week. Let's start with this one. This one echoed around the Twitter sphere and I think it was beyond, far beyond crypto Twitter circles. This is a take from Jackson Palmer. I'm gonna just start reading the thread.

• 1:05:24David Hoffman?

  First off, Jackson Palmer is the creator of Dogecoin. So he's the guy that originally forked Bitcoin, called it Dogecoin, and that's how we have Dogecoin.

• 1:05:32Ryan Sean Adams?

  He used to do a whole bunch of crypto education videos. I don't know if you saw these in the early days, but I remember tracking, following him, give good commentary, good education. But he left crypto, quite famously, a few years ago. And this is his comment on why he left. "I am often asked if I will return to cryptocurrency or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted no, but to avoid repeating myself, I figure it might be worthwhile briefly explaining why here. After studying it for years, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificially enforced scarcity.

• 1:06:17Ryan Sean Adams?

  Despite claims of decentralization," in quotes, "the cryptocurrency industry is controlled by a powerful cartel of wealthy figures who, with time, have evolved to incorporate many of the same institutions tied to the existing centralized financial system." Supposedly set out to replace the cryptocurrency industry leverages the network of shady business connections, bought influencers and pay for play me let's perpetuate a cult like get rich quick funnel, designed to extract new money from the financially desperate and naive. I will go on. Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose-built to make the funnel of profiteering more efficient for those at the top

• 1:06:59Ryan Sean Adams?

  and less safeguarded and less safeguarded for the vulnerable. Cryptocurrency is like taking the worst parts of today's capitalistic system. For example, corruption, fraud, inequity, inequality, excuse me, and using software to technically limit the use of interventions like audits, regulation, taxation, which serve as protections or safety nets for the average person. Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They're geniuses. This is the type of dangerous free-for-all capitalism. Cryptocurrency was unfortunately architected to facilitate since its inception. But these days, even the most modest critique of cryptocurrency will draw smears from the powerful figures in control of this industry

• 1:07:45Ryan Sean Adams?

  and the ire of retail investors who they've sold the false promise of one day being a fellow billionaire. Good faith debate is near impossible. For these reasons, I simply no longer go out of my way to engage in public discussion regarding crypto. Doesn't align with my politics or belief system, and I don't have the energy to try and discuss that with those unwilling to engage in a grounded conversation. I applaud those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism. All technology should be subject to. New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences. Wow, what a thread. What's your take?

• 1:08:26David Hoffman?

  So many, so many. So Jackson Palmer left the industry in 2018 and so he, in my opinion, has a 2017, 2018 perspective as to what crypto is. A lot of what he is saying, I feel is very much coming out of when all of what he was saying was exactly true. In 2017, 2018, we didn't have DeFi and we really just had, you know, big players. You know, Bitmain was a big player, the Binance was a big player, Bitmex, Arthur Hayes, like a lot of what he was saying is totally true. It's absolutely totally true. And it's a part of the crypto world that we are trying to leave behind and grow and mature out from. And that has been the story of crypto,

• 1:09:10David Hoffman?

  in my opinion, since Jackson left in 2018. And so he's critiquing an old version of crypto that still exists to this day, but is becoming less and less about the more, the core part of what crypto it means to be crypto. He talks about how it doesn't agree with his politics and how he talks about how crypto is like a bastion for right wing hyper capitalism. That's not what I see. That's not what I see at all. And I'm, I'm somebody who would very much get very turned off by far right wing politics in hyper capitalism. Like I, I used to be a hardcore socialist. I've grown up since then. But the point is, I'm, I'm lean left and the economics and capitalism of crypto

• 1:09:49David Hoffman?

  really resonates with me. And I really think that Jackson is missing the core part of what crypto has turned into in 2020 and 2021 that completely answers to what his problems are in the first place. And also, one of the, one of the

• 1:10:05Ryan Sean Adams?

  Which is what, by the way? Is it DeFi?

• 1:10:07David Hoffman?

  Yeah, DeFi, DeFi and transparency. And, and, and one of the reasons, one of the things he was talking about is like how like crypto just enables all the worst about financial markets. Or does it just make it really transparent, right? And we can actually see all of the nefarious negative things better than we otherwise could have. And that's what Jackson is disillusioned by. Like, no, it's actually the same, but we can see it all better. And now we can self-correct as an industry, right? And so with transparency in DeFi, the creator economy, which is in direct opposition to all of the negative things that Jackson is talking about. The creator economy is about enabling the individual, financing the individual, rewarding the bottom up rather than the top down.

• 1:10:50David Hoffman?

  Jackson is just illustrating a part of the crypto world that hasn't fixed its own problems yet, yet it is doing that. The whole DAO movement, and Glenn Wild retweeted this thread, Glenn Wild, who's an economist, part of the radical markets movement. He tweeted this thread and is like, you know, really great points. And I commented under Glenn Wild and said, you know, this is largely considered unnuanced and outdated by people in the industry. And Glenn said, yes, but I agree with that, but also I still agree with Jackson's thread anyways.

• 1:11:20David Hoffman?

  Jackson doesn't pay attention to crypto anymore. And he left, and I don't even think that he really came to crypto in the same way, with the best intentions in the first place. Just a big reminder, Jackson Palmer is a software developer who took the Bitcoin codebase, forked it, changed a couple of parameters, called it Dogecoin. And now people are treating him as if he is the most knowledgeable person on the planet. No, the guy just forked Bitcoin and the biggest innovation that he did was he called it a meme instead of Litecoin or Ripple or something. The innovation was calling it out and was naming it after something funny. And so like, as somebody who is giving opinions about this, what this space could be and is, like, Jackson's, he's not dumb.

• 1:12:04David Hoffman?

  He's a smart guy, but also who is he? He's not really an authority. And so just because he's the creator of Dogecoin, he's getting a lot more attention than otherwise would be deserved.

• 1:12:14Ryan Sean Adams?

  Yeah, I think those, I think that's definitely a good take. You know, what I saw, see in this is kind of two, two major critiques, right? A first half and a second half. In the first half, he's talking about like basically crypto bankers, I think. And this tendency to consolidate, which is sort of a Bitcoin thing. And

• 1:12:35David Hoffman?

  CZ, Sam Bankman Fried.

• 1:12:37Ryan Sean Adams?

  Yeah.

• 1:12:37David Hoffman?

  Generally, people I don't find myself aligned with, and especially the bankless movement doesn't find themselves aligned with.

• 1:12:43Ryan Sean Adams?

  Exactly. And the other thing he's talking about is, is scammers who've jumped into the industry. And there are tons of scammers. There are people, you know, that have the various projects and, you know, projects that aren't creating a better, more decentralized world. But it's just kind of marketing and hype and there's not much substance to it. Right? That's another critique. So that's the first part. And I'm like, yeah, I agree. Yeah, crypto has these things, you know? But the first part of his thread just focuses on all the bad and none of, none of his thread focuses on any of the good things and the benefits that crypto brings, the openness.

• 1:13:18David Hoffman?

  It's like he's denying that they even exist.

• 1:13:20Ryan Sean Adams?

  He is not acknowledging them at all. And so you could look at any industry, David, and like, just be like, yeah, I mean, corners of the internet. I mean, like terrible things happen in, in corners of the internet. If you're, if you're just magnifying those things, then you could say the internet is a horrible innovation. Set humanity back in this, you know, terrible, a terrible thing. So that's the first part. The second part is, is interesting where, you know, he says, lose your savings account passwords, your fault, fall victim to a scam, your fault billionaires manipulating markets. They're geniuses. You know, he's kind of talking about some of the early UX problems of, of crypto, right?

• 1:13:59Ryan Sean Adams?

  Like, we have to build this entire thing on a decentralized, trustless system where there are costs for losing your, your, your private keys. Otherwise, we get centralization. But like, user experience is, is moving beyond these things. And

• 1:14:14Ryan Sean Adams?

  I just get to the point of like, I feel like it's almost like Jackson is judging cryptos. Imagine if it was the birth of the internet, right? And somebody created, you know, some sort of news article that criticized the internet for all of these email scams, like Nigerian print scams. And we get all of this spam and isn't this spam terrible? And people are innocent, people are like clicking these links and like the penis enlargement pill didn't work and all of these things, right? Like, and you just emphasize that and you're like, and so much.

• 1:14:48David Hoffman?

  There aren't any singles in my area.

• 1:14:49Ryan Sean Adams?

  Yeah. Let's throw the whole thing out because of those things. I feel like that's kind of what he's no spam filters will get better, right? The scams will be processed out. Like people will learn the difference between spam and real email and they won't click on the singles in my area and it'll all get better. So just be patient, just wait a little bit.

• 1:15:18David Hoffman?

  It's just this whole entire thread just seems clouded with pessimism here. And Anthony Sizano retweeted this, this thread and said, oh, Jackson Palmer, who is like, kind of if you read between the lines, kind of like on the very far left, kind of radical left side, like, oh, Jackson Palmer hates capitalism, more news at 11. Like, this is kind of a guy who just is a representative of closer to what I would say the far left, the radical left, radical ish left. And he's bedding things that are having to do with money.

• 1:15:48Ryan Sean Adams?

  I think it's made waves in like radical left circles. And my worry about this is with when you, when you have Elizabeth Warren talking about this is like my, everything in America is getting politicized these days. This, this comment in particular, where he talked about it's a far right movement. Crypto is not a far right movement.

• 1:16:06David Hoffman?

  It's just crypto.

• 1:16:07Ryan Sean Adams?

  It's just not. It's, it's completely apolitical. It's anti authoritarian. Absolutely. It's, it's a movement about self sovereign individuals and self sovereign community. Absolutely. It's a movement for the people. It is not a far right movement.

• 1:16:21David Hoffman?

  I did not come to crypto to participate in politics.

• 1:16:23Ryan Sean Adams?

  Okay, but like, here's the thing, not that kind of politics, right? Like, but here's the thing, if this gets painted as something that can be like canceled by one political group or another, I don't know what's going to happen next. It'll be an interesting, I guess, season or time. And I feel like this is sort of the waves of that maybe building right now.

• 1:16:46David Hoffman?

  This, to me, this feels the same energy of that will, that Elizabeth Warren rant where she just ranted about Bitcoin and crypto, where almost everything she said was just like, wrong. Like, feels like the same energy to me.

• 1:16:57Ryan Sean Adams?

  Here's the thing. What is the solution to these things? Right?

• 1:17:00David Hoffman?

  Ignore them. Ignore them.

• 1:17:02Ryan Sean Adams?

  I mean, like, when he's talking about, like, what about our existing financial system? That is fraught with scams.

• 1:17:08David Hoffman?

  Right.

• 1:17:09Ryan Sean Adams?

  Billionaires manipulating markets. They're doing this in the stock market right now. Lose your savings account to password. How about losing 5% of your savings to inflation every year?

• 1:17:19David Hoffman?

  Right.

• 1:17:19Ryan Sean Adams?

  Right? Like, what's the solution here?

• 1:17:22David Hoffman?

  Right.

• 1:17:23Ryan Sean Adams?

  Jackson? Because we're building a solution.

• 1:17:25David Hoffman?

  Yeah. Say something positive, Jackson. Stop being such a negative Nancy.

• 1:17:30Ryan Sean Adams?

  All right, that's enough of that. Anyway, long thread. What about this? Crypto exchange FTX sets sites on blue chip acquisitions. The take here is, looks like SBF from FTX.

• 1:17:42David Hoffman?

  Sam Bankman-Fried, yeah.

• 1:17:43Ryan Sean Adams?

  He wants to go buy Goldman Sachs. And the take is, that's not a good thing.

• 1:17:51David Hoffman?

  Or is it even rational? Like, that's my, okay, you, you, I think we have different approaches to this take. What's your take?

• 1:17:58Ryan Sean Adams?

  All right. So here's my take. So Sam Bankman-Fried wants to buy Goldman Sachs. I've no idea if he can actually do that or not, right?

• 1:18:05David Hoffman?

  That's my take.

• 1:18:06Ryan Sean Adams?

  Okay, but, but first of all, give him five years, give him 10 years. I don't care. CZ, you know, Sam Bankman-Fried, whatever.

• 1:18:14Ryan Sean Adams?

  I don't understand why crypto is cheering this on. What I see, David, is a new class of bankers being established and creating a new system where they are the elites in charge. And rather than have Jamie Dimon of JP Morgan, we get SBF of FTX. And it's the same banking system, except it has some crypto rails underneath, like Bitcoin and all of this. But the rest of it's centralized. That is not the crypto vision. That is not the bankless vision. That is not what I'm signing up for. And I'm frankly, I'm tired of the industry cheering this sort of thing on, because it's not good. I think crypto banks and crypto bankers can easily become

• 1:18:55Ryan Sean Adams?

  The villains that we are essentially rebelling against right now, and that's a real threat that I don't think that the crypto industry is taking into full account. That's my take.

• 1:19:07David Hoffman?

  This, my take is that this feels very Elon Musk-y, as in he just like says some very grandiose things and because he has this like branding and track record behind him, all of a sudden people take it as legitimate. FTX is not going to buy Goldman Sachs. It's not going to happen. FTX is a cryptocurrency exchange valued at like seven or eight billion. Goldman Sachs is valued at like 70 billion. He also talked about and buying this CME, which is another 70 billion dollar company. I'm sorry.

• 1:19:35Ryan Sean Adams?

  Goldman Sachs is 135.

• 1:19:36David Hoffman?

  135, right. Okay. So he, between Goldman Sachs and CME, that's 200 billion dollar valuation that FTX wants to buy. FTX is valued at 7 billion dollars. Those do not compute. And so what Sam is saying is like, well, yeah, well, when, you know, my company FTX is going to grow, also the cryptocurrency industry is going to grow. FTX has, probably has a bunch of crypto on the balance sheet. Crypto is going to 100x and then we're going to buy them. As if we weren't already in crab season, that would be the biggest top signal of all time. It's like, no, Sam, you're 29 years old, you're not buying Goldman Sachs. Like, go home and take a nap.

• 1:20:11Ryan Sean Adams?

  There you go. Two different takes, maybe some accuracy in both of them. David, I know there's accuracy in this one. Give us your take here.

• 1:20:20David Hoffman?

  Uh, this is a tweet from my favorite Twitter account, me. We are just one paycheck period away from EIP1559. So you got one last paycheck to buy ETH before we start burning it.

• 1:20:33Ryan Sean Adams?

  Wow, that's a good take. Uh, we're going to end takes with that one. Super cool. Let's talk about what we are excited about. What are you excited about this week, David?

• 1:20:40David Hoffman?

  Uh, I'm about to take a flight to France, which will be my first ever trip to Europe, going to ETHCC. Uh, I'm super so for ETHCC. Uh, this was the conference that I've wanted to go to, but I haven't been able to go to. Now I'm finally going. Uh, I am bringing my microphone and my setup. I'm going to record a Bankless podcast there for all the people that are going to miss out on ECC who didn't get a ticket because tickets sold out so damn fast. Uh, we, the Bankless, uh, Bankless podcast is going to produce the ETHCC experience. Uh, so if you weren't able to experience ECC, we are going to get that done for you. Uh, so it's going to be three days, the 20th, 21st, and 22nd, all in France, right in the heart of France, in Paris.

• 1:21:21David Hoffman?

  And like almost everyone who, you know, all the big names in DeFi and crypto are going to be there. And I'm really excited to just like experience, A, Paris, never been to Paris. And also, I love crypto conferences. Crypto conferences are so much fun. It's basically a festival of, you know, crypto culture and I just find myself vibing in that environment. So I'm really stoked for it.

• 1:21:42Ryan Sean Adams?

  I'm, I'm excited that you're going, David, because I feel like I'm going to be able to experience it too, you know? Like I'm, I'm kind of the hermit, you know, I'm not, I'm not traveling these days very much and I'm living vicariously through you. So I'm excited to, to hear that podcast and hear about your experiences there.

• 1:21:58David Hoffman?

  All right, Ryan, what are you excited about?

• 1:22:00Ryan Sean Adams?

  I'm excited that Uniswap shipped on optimism because, um, and there's an article in Bankless that will have already been published by the time you guys are listening to this about the experience of optimism. But DeFi is switching architecture, like I mentioned earlier in the episode. And this with Arbitrum, with optimism, this is the first time I feel like, hey, we're going to make it. It's going to be okay. Like Layer 2, not just coming, it's here. And for those that had been in crypto or Ethereum for a long time, you know that Layer 2 has been promised forever. And there have been so many disappointments. I remember thinking for a while, you know, state channels would be sort of the solution.

• 1:22:42Ryan Sean Adams?

  It turns out good for payments, not a lot of adoption issues. I remember thinking Plasma would be the way out and getting really excited about some projects that were developing this new Plasma architecture. Turned out that had major problems. It feels like we've been waiting, waiting, waiting. And then the hope was in rollups and like, are they actually going to ship? It was almost like, you know, should we even hope? I've been disappointed so many times. Uh, now they're here, now they work, you can actually use them. This is a super gratifying. I just feel like, um, Layer 2 Ethereum scaling, we're going to make it fam, it's going to be okay. DeFi is going to be architect and it's going to work out.

• 1:23:21David Hoffman?

  I forgot to say this while we were showing, while we were demoing the transactions on optimism earlier in the show, but like the fact that we are actually showing what optimism is on video on the show, we're here. Like this is it. We're like, we made it. Like yay, like celebrate. Like it took us years to get here. And so the fact that we've, the fact that we finally have it and can actually prove it. I remember doing POV crypto with Christian and he's talking about, oh yeah, great. Like another Ethereum thing that you guys are promising. Like I'm not going to hold my breath. And I was like, A, like damn it's good point because it's not here yet, but also B, it's totally going to come. But you know, for the last three years, it kind of, kind of took it on faith that like, you know, scaling was actually going to come.

• 1:24:04Ryan Sean Adams?

  Not sure. Not certain.

• 1:24:06David Hoffman?

  Oh, I, I never doubted it. I just didn't know when. Like I knew scaling was coming. Was it coming in 2018, 2019, 2025? I don't really know. Always knew that it was coming. Glad it's finally here. But it's one of those things where like, you know, you don't bet against Ethereum. Like that's how you lose. And now we finally got the scale. We act like after, I think you and I have been doing this at least for nine months where we are having like, oh, L2 is coming, guys. L2 is coming, guys. Like on the banks of your weekly roll up, L2 is coming. No, no, no, no. L2 on this, as of this show, L2 is here.

• 1:24:39Ryan Sean Adams?

  David, I feel like that with a lot of things. I mean, like 2021 is kind of the year for that. Remember you wrote that?

• 1:24:44David Hoffman?

  All happens at once.

• 1:24:45Ryan Sean Adams?

  Ethereum's missing puzzle pieces, EIP 1559, and talking about its monetary policy. You wrote that like two years ago, over two years ago. It's like now the puzzle piece is coming, right? And we have staking, triple point asset, things we were talking about are happening. It's really exciting. And now layer two is happening. Scalability is happening. Super cool. All right, man. Let's get to the meme of the week. That's what the people have been waiting for. That's why people watch this roll up. It's for the week. What are we looking at this week?

• 1:25:11David Hoffman?

  We are looking at a meme of Beauty and the Beast. I actually wasn't familiar with this meme format. I think this might just be right out of the creative head of Michael Wong, but we have the, the beast who is, you know, dying on the floor and the beast is titled old random wallet. You know, your old Ethereum wallet that you forgot about, maybe your first price set of private keys and the, the old Ethereum wallet says, you came back. And then Belle? Belle? Is that her name? Belle? Yeah. Someone here clearly has kids. And Belle, who's holding her old smart, her, her old wallet goes, of course I came back, except Belle is labeled me checking for airdrops.

• 1:25:51Ryan Sean Adams?

  It's all of these wallets that you forgot you even had that you only go and search for as soon as you hear of some airdrop that that might have come to you. I think people are probably doing that with.

• 1:26:04David Hoffman?

  Fox tokens, Fox token.

• 1:26:05Ryan Sean Adams?

  Yeah, Fox tokens with the airport he's airdrop, shapeshift airdrop. So yeah, dude, every single time an airdrop happens, how many wallets? I mean.

• 1:26:16David Hoffman?

  It does pay to be disorganized when it comes to your crypto wallets, let me tell you.

• 1:26:19Ryan Sean Adams?

  You have wallets, wallets tend to to collect over time. Yeah, I bankless Twitter tweeted this out basically like, hey, the measure, the most important measure is, are you more bankless this year than you were last year? And a bunch of people said, yes. And, you know, some guy goes, yeah, I think I am. And I definitely have way more wallets, though. That's the thing, you have fewer bank accounts, but all of these different Ethereum crypto wallets that tend to compile over time. All right, man, this is bankless. This is the weekly roll up, guys. Thanks for checking it out. Make sure you like and subscribe if you enjoy the weekly roll ups. David, you want to say something?

• 1:26:56David Hoffman?

  Yeah, we got a moment of Zen coming. This moment of Zen comes from Ben Jones, who posted this video of him singing and playing the piano at the same time, this wonderful Ethereum themed song. So here we go. The bankless moment of Zen.

• 1:27:10Speaker 02

  Welcome to Ethereum. Have a look around. Any coin that brain of yours can think of can be found. We've got mountains of contracts, some better, some worse. If none of them earn interest for you, you'd be the first. Welcome to Ethereum. Come and make a tweet. Are you in it for the tech or just to shill your bags of ease? Let's head straight to main net. This isn't a test. Just hit deploy and the apes do the rest. Welcome to Ethereum. What would you prefer? Would you like to buy some stable coins or stake all your ether? Be lending, be loaning, or make NFTs? We've got a million different wasted pay fees. Welcome to Ethereum.

• 1:27:54Speaker 02

  You put your tips aside, you won't have to pay the miners EIP 1559. We've got farm. And harbors and a thing called Ice Age. There's like a million different ways to exchange. Welcome to Ethereum, don't you get too smug? Cause that anonymous founder might decide to pull the rug. Now it's dropping, he's selling like he never cared. Don't act surprised, he said it's buyer beware. Contract call reverted, you were sure the price won't slip. Stay up late, the market cap keeps falling. Thought you bought the dips, send transactions, pay for gas and go to sleep and miss the action. Read about a can of traction, don't forget minor value extraction. This is not trading advice, but mortgage both your homes. Crypto doesn't have under collateralized loans.

• 1:28:39Speaker 02

  Should you provide liquidity, just take this quirky quiz. Vitalic premind all the ease to feed carbs to your kids. Could I interest you in finance? That's not nine to five, a little bit of finance that's decentralized. Dumping is a tragedy and pumping is a crime. Wall Street but transparent and decentralized.

• 1:29:01David Hoffman?

  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,

• 1:29:43David 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.