📺 ROLLUP: EIP-1559 | Infrastructure Bill | CryptoPunks & NFTs | Bitcoin ETF

hey bankless nation happy friday to you it is the first week of august david it's rollup time this is the eip 1559 edition 1559 1559 however you say it it is the day that we have deployed eip1559 actually we we will have deployed it one day after you guys are listening to this david that's pretty exciting dude i'm i'm pumped there is so much to talk about and so i'm going to try and refrain from talking about it right now but it is has been a long time coming and

the fact that eip1559 is here and we have things to talk about that it's actually live is just absolutely stellar and i'm really stoked to get into the weekly roll up this week okay yeah do not drink a swig of coffee every time you hear eip 1559 or you will be coffee drunk by the end of this episode before we get into the show we gotta talk about pool together because it is summertime and it's all time to get into the pool if you don't know pool together it is a no loss lottery which means you put your stable coins your comp tokens

whatever tokens that pull together accepts into a pool and then you have a chance to win the accrued interest that accrues weekly from everyone's collective funds so you don't lose your principal you might lose your opportunity cost of money but you also might win everyone else's interest as well it's a fun no loss lottery on ethereum every single week roughly fifty to sixty thousand dollars gets awarded in uscc and that is just the usdc pool there is usually a drawing every single day of the week they have

also recently deployed their polygon implementation where you can deposit tusd tether into the polygon pool together pool together pool and they are also rolling out their l2s coming soon in the future so check them out there's a link in the show notes so you can have fun in the pool that's a lot of pool time guys this is if if you haven't yet tried many defy apps this is one that you try and tell your friends super easy to use and you can't lose it's a lot of you can't lose so check that out guys all right david you ready to get into bitcoin markets my friend

yeah let's do it bitcoin is down on the week starting at the high prices of roughly 42 000 touched the low price of just below 38 000 to where we are currently at right now at thirty nine thousand three hundred dollars for one bitcoin all right let's talk about eath price eath price doing a little bit of the opposite started right around two thousand five hundred dollars on the week and that was roughly about the low uh and it is currently at the high price of roughly 2 800

feels like it's pumping on the news of eip1559 finally going live which is always kind of funny to me because there's no way you've been able to pay attention to a theory without understanding eip1559 we talk about it all the time and now it's live and now people are buying it's like yeah why did you wait so long like people people who just bought eip we bought eth after eip1559 like why right they wait do you think there's some like worry that maybe it wouldn't ship maybe the hard fork wouldn't go right

i have no clue man but uh i mean i know i wasn't waiting so we we we knew this was coming guys we also know the merge is coming on the horizon too so that'll be another catalyst in the future uh we'll get to a bit more of that later but let's review some more metrics so each bitcoin ratio how's the eth ratio doing yeah listeners will remember last week that we talked about how there was a descending wedge if you want to use again trader terminology which i'm not very good at using trader terminology but i'm gonna do it anyways there was a descending wedge that ether looked like it broke out of versus

bitcoin and turns out that that continuation just happened even further this week ether is above .07 each per btc at the price of a .0712 looking really really strong and there's a lot of traders that i know a lot of people that are looking at the east btc ratio looking like oh man it just looks like it's going to resume going higher versus bitcoin back to the highs of maybe point one eth btc just speculation here but uh eth btc looking really strong as you would

expect during eip1559 week yeah also not surprising given these head tailwinds right these eth catalysts let's talk about total value locked in d5 that is also up on the week i remember hanging in the 50 to 60 billion range now we're at 70 billion yeah uh that is the theme of markets this week at least on the ethereum side of things is up it's really nice to see that seven number leading a total locked value back in d5 i remember i think the the peak that we set back in may was just around 90

billion locked in d5 we are back up to 70 billion locked in d5 all right let's take a look at the dpis this is the d5 pulse index this tracks some of the top uh d5 tokens in crypto to give you a sense of that we are up on the week as well david 18 on the week 18 green for dpi at the price of 360 dollars which is the local high for the week so congratulations to dpi holders okay well it seems to be east season over bitcoin season that's

what that ratio is telling us but is it defy season david what are we looking at oh we're are we below your amount we're we're below your number yeah i mean no horseshoes hand grenades like we're around my number we are currently at point one two eight uh dpi ratio uh which means that it is eighth season not necessarily defy season i'm okay with that give defy a breather for a bit okay let's talk about the bed index so the bed index of course composes all of these assets together you get one-third bitcoin one-third each

one-third dpi all-in-one token that you have to hold that is up on the week because all three of those assets are up on the week where are we right now uh we are up ten percent on the week started uh dp excuse me bed started at a hundred and thirteen dollars and we are currently at 130 so that is the summary of the crypto markets at large up 10 on the week again the bet index the best defy crypto index that there ever will be i'm pretty sure tell your friends guys easiest way to

get exposure to crypto at least the premium assets the least assets you want to be part of on the bankless journey uh david let's talk man eip what do you want to talk about ryan i look we have something to talk about i know you flew all the way to san diego last night but you woke up early in the morning to be available for this it was like what five o'clock your time yeah woke up woke up at 4 30 because eric connor and anthony suzanne were like why isn't the zoom up yet i'm like hi it's an hour

before the fork i guess they were really excited to get the livestream up and running yeah kids in front of the christmas tree just like waiting for santa to come down the chimney i mean they were really excited about this but we're excited too so uh eip 1559 got deployed today as part of the london hard fork for ethereum this is a massive event there are a slew of other feature updates in that but eip1559 was the one we've all been waiting for that means a number of things but one thing it definitely means is we are burning eath

effective 8 30 or so at eastern time this morning we have started burning eath and we will continue to burn eath until maybe the end of the ethereum network like this is going to uh last into the the future upgrades and it's going to be it has become a core part of the protocol and david there are so many like dashboards where you can see eve getting burnt in real time that i've become addicted to these things so like here's one etherchain.org slash burn we could see look man eight almost 800 eth

burnt and we are only like four and a half hours into this eight hundred eighth in four and a half hours burnt gone and remind folks why is eath getting burnt and people are asking the question like uh that seems weird why are you burning eat are you like wasting it like why is this a good thing why are you so excited about burning money yeah so so here is like a kind of a 400 level uh bankless content take is that if you listen to our podcast with vitalik buterin on legitimacy the same reason why bitcoin has a shelling point

of zero issuance and a hard cap is the same reason why we burn eth it is just the best default option because if we didn't burn eth then we would have to figure out where we should send it to who gets it who gets it and that is a very heavy political decision that bestows a king maker like that's a king maker decision like who gets the eth and so instead of just like deciding who should get all of this eat which is a ton of money we're like 3 billion or three million dollars every like four hours or so it's just easiest to say

that no one gets it and everyone gets it or everyone gets it right because if no one gets it then everyone gets it right and everyone i mean like eath holders which is one of the benefits of holding eath so eip1559 changes the way that we allocate each when you pay for a transaction you used to pay for a transaction and that money used to go to miners and now instead because we have decided that eip1559 is a stronger security mechanism and an overall ux upgrade for ethereum we've decided that the best thing that we should do is we should burn that eth

and not give it to anyone and if you want to dive deeper into the subject definitely listen to our podcast with hazu eip1559 and that will go into further depth as to why we burn eath and when you ryan you and i talked about this like multiple years ago we really just framed it in a conversation of the last puzzle piece the last really important component of ethereum's monetary policy it makes ethereum more secure it makes ether more valuable it's just overall a net beneficial change and

now it's finally live in the time that i have been ranting we have burned nine more eth the the ticker just went up from 799 to 808 now it's at 810 that is a lot we burned 5 000 in the time that listeners listened to this remind me we got to check it again at the end of this episode or maybe continuously throughout the episode i know we will empty people every five minutes like there's so many places you can you can look at this burn rate uh this is probably my favorite david ultrasound.money go check this out

like fantastic meme around this ultrasound money not only has uh the cumulative eath burn rate but also has a burn leader board right so we see like uh some of these nft platforms are burning the most eth right open c crazy nft is burning more ethan defy not not cumulatively but just has open seas burning more east than uniswap like cool i'm less mad about high gas fees from nfc launches now a lot less mad about that i might be okay with it you can also see it on of course your favorite block explorer like etherscan for example and

this is cool because you can dig into the actual block david you're pulling it up here and you can see the block reward of course that is issuance but then you see the amount of eth burnt on this block which is super cool nice breakdown for you and there's so many new metrics in the block explorer now and this is uh kind of front running what i'm going to say later in the episode with what i'm excited about but there's new things to look at which means more things to talk about which makes me so excited more numbers more metrics more it's of course it's open and available to anyone i think micah put together a fantastic

dashboard on dune analytics where you can see ethernet per block base fees over time all of this is open and available so check that out they'll be in the show notes and this is cool too david we just we had this morning our first deflationary ethereum block you might say our first ultrasound ultrasound ethereum block because while we issue just over two eth or so every block according to the protocol exactly two reasons exactly two eth that generally goes to minors um

we burnt more than we issued in this particular block so like the amount burnt per block will fluctuate uh based on kind of the you know the formula algorithm that's set up in eip1559 this particular block i'm not going to say the number 12 million something you guys can look it up yourselves but there was a eth burnt of 2.078 and each block reward of course of two so the net is actually deflationary that block that's not to say ethereum as a whole is deflationary

right now uh because it's not it's it seems like we're issuing like we're probably burning what would you say 25 or 30 percent of proof-of-work issuance i said that's about a good estimation uh i think there's a lot of like settling that needs to happen like we are still kind of in this uh period of a little bit of uh chaos because like miners still have to update like wallets still need to update they're shaking out yet yeah we're so we are still settling we are watching this play out in real time and that's going to be one of the fun things

about the next week is seeing where things settle seeing how full blocks become seeing miners get on board seeing wallets get on board because something to talk about is that there's actually two transaction types now there's the legacy transaction types and then there's eip1559 transaction types both types burn eth but one is just a little bit better for the user one one's a little bit easier and so it's really up to wallets to update how they allow transactions to occur on ethereum and they should update to the eip1559 over time because that's beneficial to the users metamask is now

updated my crypto is now updated so people are doing this pretty quickly but it's going to take at least a few days for everyone to get on board and synced up with eip1559 yeah absolutely and so so the net of that is ethereum is not net deflationary at this moment but it is uh more deflationary so we are burning a you know maybe 25 30 as david said this will take a while to pan out but post merge it's sure looking like things are going to be deflationary when that happens that merge we're referring to is when proof of work gets fully turned off that

four percent or so issuance per year goes to zero that's going to happen and fly just buzz right um anyway you were talking about uh wallets so for the typical user right this is all backwards compatible so if you're using metamask and it has not updated then you can just send a transaction the way you always change no change it might be a bit more expensive relative to using the new transaction that david was mentioning but once metamask rolls out they've got a fantastic eip 1559 helper page to show

you um how to set transaction priority it's actually i think it's going to be more intuitive and easier to use if you're if you're doing that second um transaction type the eip 1559 transaction have you made a transaction yet on ethereum ryan i haven't got it it's like this pseudo like speed update it actually feels faster just because like your transaction gets included into the next block by almost by by default so like it it's not faster but it feels like it is which is kind of actually the more important part yeah that's awesome and

like gas fees aren't going down as a result right like this is not a improvement in probably in terms of gas fees there's some intricacies there that we don't have time to touch again listen to the hazu eip159 episode with bankless yeah absolutely but uh you noticed this david yeah and well you can actually see it twice you can see it on the lower right hand side of the screen as well eip1559 is straight up trending on twitter again like think about that for a second that's right ethereum improvement proposal to this

random esoteric little known piece of like internet corner which is going to be larger in the future is trending on twitter eip1559 is on the front page of the internet that is absolutely crazy yeah that's really cool and such a yeah strange esoteric name like you are like what is eip 1559 but that's the question they should be asking right now uh david let's get this take from hayden adams yeah it's hayden tweets out it has been two hours since the launch of eip1559 and he tweeted this out a few hours ago

uh and he says uniswap both v2 and v3 is doing its part burning 80 eth so far again these numbers are already outdated at this rate unit swap alone is burning 350 000 eth close to 1 billion dollars worth per year and then he says congratulations to everyone who made eip155 now it happened huge win for ethereum and great great tweak great piece of content but also what i want listeners to take uh and take note of is this is just uniswap just uniswap is

burning 350 000 ether per year remember just a reminder there's roughly around 115 000 or 115 million ether total and just uniswap is burning a little bit over one third of a million ether per year that's just uniswap and so like imagine when there's just more applications imagine all the other applications imagine in the applications into the future imagine the killer apps that we haven't even thought about yet uh imagine when like completely trustless like composable oracles comes

online and we can get any data from the world onto ethereum think about that because imagine how much ether we will be burning at that point in time it will be a large number i'm thinking about it you know what and this is absolutely a massive upgrade to ethereum's monetary policy and it's kind of the conclusion of a lot of work that a lot of people have been like put in at the time i i just want to give a special bankless shout out and thank you to all of the developers in the ethereum community coordinators uh you know even even some of the people who are

sharing the gospel and and spreading the the news of this and garnering community support this community uh are the the people who made this happen and it's like hard to get work done in a way in a decentralized community it's also better easier in some other ways and the fact that the ethereum community pulled this off is uh is pretty phenomenal pretty exciting i mean this is a live network right like a 250 billion dollar network and this is a pretty major economic upgrade to it and it took like years of

literally years of research to to come to this point and uh a ton of work went in so thanks to the community thanks to the devs that made this possible thanks to the researchers we did it we did it fam did it fam the ethereum upgraded the ip159 upgrade it feels like we are having this 250 billion dollar jet that we upgraded the engines on while in flight uh and so like that's kind of the degree of complication and that's also the degree of the skills of the developers that we have in this community so just like ryan

said thank you for everyone who played a part in getting this out the door the world is literally better for it i will make that argument yeah that's super cool as by the time when the time we started talking about this let's see how much we burnt 55 more ether since the last time we brought it up in in conversation let's just keep on doing that every few minutes there you go there you go all right guys moving on from eip1559 which is hard to do so we're very excited about it we'll be back do this we'll be back 221 million crypto users

all right that's how many crypto users we have this is according to a study put put out by crypto.com kind of charts crypto users uh over time the market size of course this these are all estimates no one could tell for sure not sure the exact um you know methodology they used for this but it feels ballpark it feels about right and that's an absolutely massive amount of crypto users now we say users that's super broad we're talking about anybody who has ever purchased a crypto

asset this does not defy users these are not people who even necessarily know what they bought but these are people who have interacted with maybe purchased a crypto asset possibly done something more it's not just a fad 221 million that is starting to become critical mass this is moving from like early adopter uh like the very early stage adopters to kind of this this you know mid-stage mid-stage adopters range yeah 22 uh 221 million is not a low number this like you said this has got to be like the

lowest threshold for what is considered a crypto user right so if you like bought 20 worth of bitcoin on coinbase and then and then you left it and didn't do anything you're a crypto user i'm guessing i would like to know more methodology about how crypt crypto.com came about these numbers um maybe maybe on the website they have more details the other important point to make out is that this is in june 2021 and in january 2021 just six months ago it was a hundred and six million users so we have more than doubled the entire like entire user base of this entire

industry in just six months and so that kind of illustrates kind of how crypto moves in waves like it moves in it moves in step functions like like nothing will happen for two years and then all of a sudden it's an order of magnitude better more order of magnitude more users and ryan 221 million users that's a a lot of people that can go and make transactions on ethereum and burn e through eip155 now that's right uh all right let's talk about open c speaking of more burning of eth open c which is one of the top uh in the ether

burn charts right now um they they did this is a tweet from devin fincer who's been on the podcast before in 2020 openc did about 21 million in total transaction volume that's the total for the year in the last two days he's tweeting this august first we did 95 million two days 95 million it in an entire year in 2020 they only did 21 million the growth curve for nfts is insane yeah it is insane absolutely going

bonkers and open c is crushing it yeah no wonder openc had that monster raised not too long ago nfts are definitely hot uh turns out the bear market was this is what i wrote in the market monday this week turns out the nft bear market was just a meme and it turns out it was an nft land grab opportunity for the people that believed in it and then the market realized it all like all in the last like two days that devin was talking about sadly those two days where open c had such insane amount of volume was before eip1559 so we didn't burn that eth but all future volume going through

openc will indeed burn more eth look at this this is worth a quick gather to ethereum addresses using d5 rose 65 last quarter so more east addresses going bankless using d5 up and down wait is that not what you're gonna say oh okay no all right guys we will be back with some more burning eath talk but before we do we want to thank the sponsors that made this episode possible bankless is proud to be supported by uniswap uniswap is a new paradigm in asset exchange

infrastructure instead of a cumbersome order book system where trades are matched with other humans uniswap is an autonomous piece of software on ethereum which is what ryan and i call a money robot no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy something brand new in the uni-swap 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 dows have money and they are in

need of labor if you think that you have something to contribute to the una swap dow apply for a grant to uni-swap just look at the size of the uniswap treasury it's almost 3 billion dollars 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 uni grant at unigrants.org and help steer unit swap in the direction that you think it should go that's exactly what we did to get uniswop to be a sponsor for bankless and you can do the same for your project

thank you uniswap for sponsoring bankless the ave protocol is a decentralized liquidity protocol on ethereum which allows users to supply and borrow certain crypto assets ave version 2 has a ton of cool features that makes using the ave protocol even more powerful with ave you can leverage the full power of defy money legos yield and composability all in one application on ave there are a ton of assets that you can supply to the protocol in order to gain yield and all of those same

assets can also be borrowed from the protocol if you have supplied collateral here you can see me borrowing 200 usdc against my portfolio of a number of different defy tokens in eth i'll choose a variable interest rate because it's a lower rate than the stable interest rate option but i could choose the stable interest rate option if i wanted to lock in that interest rate in permanently v2 also features the ability for users to swap collateral without having to withdraw their assets trade them on unit swap and then deposit them back into ave

with ave users can do this in one seamless transaction saving you time and gas costs check out the power of ave ave dot com that's dot aave.com hey guys we are back with the releases dave there's so much to talk about we still have some eip 1559 to cover but we want to get to regulatory so we're going to burn through some of these releases and get to the the regulatory section get to the news uh the first is this starkware and so rare are teaming up they are releasing the so rare as a

scalability solution on starkwear so so rare is another nft project for soccer football in europe and it's been doing super well it's good to see them deploying on layer two with starkwear as their scalability tech layer two summer continues and so does nft summer so awesome let's keep going yeah absolutely brand new ethereum application now on mainnet thales a binary options trading platform has deployed it's got a seed investment from synthetics so communities seeding other

communities so that's pretty cool there's a lot to talk about there but unfortunately we don't have the time if you are interested in binary options trading go to thales t-h-a-l-e-s dot market and see what it's like uh i have not tried this out yet so if you are a binary option straighter ping us on twitter and let us know what you think guys speaking of the synthetics world the derivatives world uh dydx just dropped their token this week so this is a governance token for dydx david we've written tactics about dydx number of times most recently when they deployed their layer

two technology i think that was like april or may or so and the good news is they're doing a retrospective airdrop so if you have ever used dydx you might be eligible we actually put out what we call an alpha alert uh two bankless premium subscribers on the newsletter with all of the details of this retroactive airdrop what it includes you can also find some of this information on the dydx website uh again you're eligible if you paid fees dydx

and then you have to use layer two it looks like they are also receiving some bumps in adoption post governance uh post governance token launch so this again is a story of kind of the the previous d5 summer when the comp token launched and comp usage went off the charts this is now also happening with dydx so go check that out you might be eligible for that retrospective airdrop there's also there's also future ways to earn dydx token if you are a liquidity provider

and some other things so make sure to check that out here's a quick bankless self-shill we told you this was going to happen like six months ago so shout out to the guys in the bankless discord who said that they started using dydx when we when we guessed that dydx was going to list an airdrop and they got the airdrop because of that so sometimes listening to the bankless weekly rollup gives you alpha david one sad part for residents of the us is that residents of the u.s are not eligible for this retrospective airdrop so this is uh jake

trevinsky saying i feel so safe and protected in response to anthony cesano saying the u.s investors are missing out on this air drop because of stupid regulations david uh this doesn't feel great that the sec is protecting us investors from free money i mean they're definitely here to prevent scams and to help make sure that markets are transparent this does not feel like those either of those two objectives no that's that's exactly right u.s investors are people just like the rest

of the world um i was a previous user of dydx before they implemented the the ip ban and so i did not get my dydx tokens which i feel like i should have gotten because like i said i'm a user um but i'm glad other people were able to get the tokens dydx unfortunately but also fortunately for them did a very good meticulous job of tracking ip addresses and linking that to ethereum addresses and so if your ethereum address was associated with the usip address you did not get the airdrop and you can thank

the sec for that one there you go in other news bitwise has just launched two new d5 funds one for uniswap one for ave so investors who are accredited investors because of course bitwise is kind of this bridge from old finance to defy they can invest in these assets without having metamask without taking self-custody sort of an easy way to do this through kind of brokerage accounts and traditional finance great to see bitwise investing further and expanding further in the d5 space and giving more exposure to traditional investors there

yeah basically this is just a wrapper around ave and uni tokens making them available to accredited investors in the tradfy world uh it's progress i guess um but again limited and hampered by regulations so yeah we're gonna have to we're gonna be talking about regulation here in a second ryan soon yeah i feel like we got some axes to grind here okay argent though this is great news arjun one of our favorite smart contract wallets they are now going to layer two this has been probably the biggest feature the ux problem with with argent wallet

smart contracts wallets in general is high gas prices well no longer right now they have a layer 2 wait list uh you can enter that they've got prizes almost 300k and crypto sweepstakes to celebrate so it's not out yet but you can enter that waitlist i can't wait to see what they have in store i'm pretty excited about this one yeah also definitely go listen to vitalik's smart contract wallets on layer 2 that was a fantastic episode about why specifically layer 2 is very good for enabling smart contract wallets i was a heavy user of argent

wallet when back in the early days but as soon as gas fees on ethereum stopped being one gray and for the ethereum like newcomers like it used to be one gray which is kind of insane now uh so the argent worked pretty well like gas feeds were basically nothing and you didn't have to wait too long but now gas feeds with arjun are really expensive and the transactions take a really long time this is something that really needs layer two to work uh so i'm really excited to see what argent on layer two is like i'm gonna keep us moving david uh rocket pool is going to testnet which is super