📺 ROLLUP: EIP 1559 | JPMorgan ETH Staking | Binance Squeeze | Elizabeth Warren | Axie

happy friday morning everyone it is the first week of july and it's roll up time david you ready to dig in i am ready to dig in to the friday weekly rollups the best episode in all of crypto at least i think this is where we go through what's happened in the last week of crypto we go through the markets what's happened in the markets we go through the releases what's got what got released and then we go through what's happened in the news cycle and then we finish off with who had some interesting takes in the crypto ecosystem and then we finished things off with what david and ryan are excited about and then we finish that off with the

meme of the week still not finished until the meme of the week comes then you know it's over david we gotta talk about this though man you doing okay how's your face going uh yeah so the viewers of the youtube will notice i got some blemishes on my face i took a little tumble off of an electric scooter here in san diego the other night and uh protected my brain with my face uh and uh a little bit worse for wear but but the bankless ecosystem does not stop producing content and that is no excuse so the march goes on look at this guy injured in everything still doing the

roll ups that is dedication my friend i think the meme of the week might be about that [Laughter] all right man you ready to dig in yeah let's do it ryan all right before we do we gotta talk about kyber's rainmaker program going on they are making it rain making it rain knc tokens this is their long awaited liquidity mining program that they've just launched 25 million over the next three months they are dishing out to liquidity providers we've got uh eth usd c pairs uh wrapped bitcoin pairs die pairs everything and

across two chains not one chain two chains ethereum and polygon that's uh that's pretty cool uh love that kyber is doing this they are an og d5 protocol so click on the link and the show notes if you want to learn more about how you can supply liquidity and start earning some of that rain yourself kyber is one of the oldest projects in d5 and they are in the capital efficiency game with their dynamic market maker which changes fees according to market conditions to make sure that you are optimized in your lp

position so check that out david wanted to fix the words capital efficiency and i know i know you did david you wrote a fantastic article on that david let's start market time man let's start with bitcoin price what is bitcoin price doing for us i'm gonna scroll out to the uh the five day and see where we started i think that was like the third or something yeah we started at thirty five thousand dollars it fell down to thirty 32.7 thousand dollars then we jumped to 36 000 then we dumped to 32 000 and now we're at 32.8 thousand dollars so

flat on the week basically where we started but crap but also did jump up a little bit it is nice to have a pretty high in the middle of the week even though we didn't end there it's nice to claim some of that high territory which i said yeah good wednesday we had to get humpty had a good wednesday yeah yeah a good one there was a hump on the hump day nice you know what though um i feel like bitcoin's in maybe a bit of a rut i don't know if you feel this way it's like coming off of bitcoin miami we had the el salvador news that kind of spiked things a little bit but that's sort of died down right people aren't really excited and i'm talking narratives of

course you're not fundamentals um but the happening is behind us too uh michael saylor putting bitcoin on your corporate uh balance sheet that hasn't quite spread like wide wildfire where the the bitcoin bulls were saying would maybe in january of this year any takes there do you feel like bitcoins in a rut too and how does it get out of this rut yeah i'm sure michael saylor would like a few more allies than he thought that he would have gotten by now um but at the same time i think bitcoiners will say that the happening event

doesn't manifest in the price until like two years later right that is like what the happening is apparently uh and so they always will say hello right yeah stock to flow right um if you believe in that uh and so there the when i talked to my bitcoiner co-host over at pov crypto ck he talked about how like you know it's going to take the world the world a while to integrate the el salvador news into their understanding of bitcoin and so like the price appreciation happens later right there's always a lag which sounds

both true if we look at the historical evidence of bitcoin the catalysts always appear in the charts later but there's also like you can also say that that's just an excuse uh you know if the markets integrate everything in the moment of uh and so you know who knows um but yeah like unlike ethereum which has like a bunch of positive tailwinds coming its way ethereum bitcoin just kind of feels like floating out at sea like where's it gonna go next we don't really yeah there's not another happening for a

while right so what is the next what is the next catalyst that remains to be seen but let's uh tap root let me tell you that it's not okay all right let's talk about uh ether for for a second so price of ether where are we now where did we start yeah we started the week at 21.70 20 2 170 dipped down to 2 000 then we jumped to two thousand four hundred dollars which got everyone really excited and now we are back down to literally exactly where we started at two thousand one hundred and seventy dollars

there's some good news about this david and that is eth as is at an all-time low on exchanges like a two and a half year low so people are pulling their ether from exchanges this is awesome this is great for banklessness because it means they're either holding it uh you know privately self-sovereignly which is awesome or they're using it in some sort of a d5 protocol maybe they're trading it on uniswapper providing liquidity on something like kyber rather than uh rather than hold it inside a crypto bank so i feel like this is

pretty bullish it also probably means david they're not not exiting or not planning to exit to fiat which is another good sign and he takes here yeah the ethon exchange metric is always interesting when there's low eth on exchanges that always means that like price can be volatile and people generally think it's volatile to the upside just because like if there's no eth to sell because the eath isn't on the exchange so there's only people who can buy eth who want to buy it and if there are people that want to buy it because there's not a lot of ethon

exchanges it moves the price faster to the upside granted defy is also a place to buy and sell eth right so a lot of eth could be moving off of the exchanges and going into defy to be sold on uniswap so it's not necessarily that there isn't eth available to sell it's just not like like you said it's not available to sell to go back to people's banks bank accounts so this is a bearish metric for people who are thinking that people are trading their eth like you said to go to fiat um however you could still trade your ether and go to crypto dollars but

that's you can you can go to crypto dollars and crypto dollars to me feels also um somewhat temporary or at least it is net positive for ether right you're still using those transaction fees on ethereum you're still using d5 let's let's take a look at some of this eth is definitely going yeah beacon chain deposit contract dude happy 6 million man 6 million in the deposit contract that's great there's over six million ether in the deposit contract right now so i guess like the quick math on that is what's just over six percent

of all eth's supply a little bit less a deposit contract uh yes a little bit less yeah cause there's roughly 117 million ether and there's six million ether in the deposit contract right so a little bit less so i mean super impressive though i mean um i remember do you remember the discussions we were having in like winter or late fall of 2020 is like oh is anyone going to put theirs it's a one-way bridge what was the threshold we needed half a million yeah

are we gonna be able to make it are we gonna be able to get half a million either these were the questions we were asking i think we made it i think it's okay it's gonna be okay let's talk about that if bitcoin um ratio uh what's that doing so i'm seeing some ups i'm seeing some downs but more ups than downs no last week you're seeing up man then that's really really the the story uh i think the eth btc ratio tells a bigger story than the ether dollar or bitcoin dollar uh the biggest story maybe i think yeah and the same story is also being told we're

going to get to this the on the dpi ratio which is also looking just like the eth btc ratio we we are establishing this floor at .055 eth per btc and we could definitely range between where we are now at point zero six five and point five five like there's definitely room to bounce back and forth here but what the story that i am seeing is that when it does hit that point zero five five level it rockets back up maybe not rocket but it sets up it's got a very solid foundation floor at point zero five five which again is

historically a high e btc valuation uh and so when when i see ether hitting point zero five five and just rejecting it and going back up that's indicating to me that people are still risk on this is a in my opinion a great proxy for overall the bull market if you are asking if you want to ask the question is the bull market over i think you should look to the eth btc ratio because that tells the story you know david i think you're spitting a lot of wisdom here man because especially we're just talking about the you know bitcoin price in a rut the doldrums no tail wins

ahead in terms of narrative for uh bitcoin that we can see in the future but there are a ton of tailwinds ahead for ether we're going to talk about some of those when we get to kind of the news and uh and and some of our takes on that but like eip 1559 uh the merge all of these things are going to be tailwinds for each so if we're going to have a continuance of the bull run we need eth to run yep yep and we need this ratio to continue uh go in the direction evan van ness will happily say that ether and

ethereum always leads bull markets uh and so when we see the eth btc ratio rising that's that's where we get to say is like oh this bull market is still still looking good yeah absolutely all right well let's uh talk about other bull market indicators uh value locked in d5 so that's been slightly up slightly up a little bit so 55 billion dollars of value locked in in d5 hanging in the 50s or so not too bad um let's talk let's talk about defy defy tokens as measured by

the dpi the d5 pulse index which we talked about every week so a little bit up on that on the week up on the week yeah e5 tokens were catching a bid this week we started started at 260 dollars to start the week ended at 300 but also hit a midweek high again on wednesday hump day uh of 350 dollars and so i think we should go ahead and go right into the dpi conversation ryan you've been waiting for this oh yeah look at that number look at okay so i called the bottom at 0.13 it

broke down below 0.13 for a solid like eight nine ten days but i think and you said to be fair you said give it two weeks if it doesn't break for two weeks right you said two two uh weekly roll-ups ago then you're still in the clear so you're still feeling okay it's not i i will admit that i did not call the absolute bottom so like i guess if you want to be really strict about this and say the number fell below 0.13 yes the number fell below 0.13 so part of me wants to be strict on this david but i'll give you some grace too yeah okay so like let's let's think about things in six months

in 2022 2022 say for example that defy tokens finally get the bids that they deserve and dpi resurgence back to previous levels and maybe even goes on the bull market that we've all been wanting the d5 tokens to go in the bull market for and they break previous cycles then then what are you going to say like oh david didn't call the bottom of 0.13 because it was point one two even though dpi is is at point three or something like it's gonna be a great bottom call i'd also say so if this bull

run turns into like ash and sadness right and um we're ranging in this you know 2000 or so range for eth i'd also give eric connor some credit for calling like 2500 that's a fair point because he kind of deserves that because it shot up above but not for too long so like the spirit of the prediction is intact so david the spirit of your prediction is intact and that's what's important we'll see for now we'll see what happens we're gonna be checking up on you that

is a really good point i think about eric's uh top call for those that aren't following air connor had made the top call of two thousand five hundred dollars for eth price then we rocketed above that to four thousand three hundred dollars making eric wrong but we have spent a lot of time below two thousand five hundred dollars even in contrast to how much time you spent above it right and so like while the call was technically wrong the more and more time we spend below that number the more and more eric is in the spirit of things correct which makes me really

angry uh and so i i really would like price to get it back above 2500 so i can start gloating against eric connor again there you go we could do that anyway all right let's talk about this you know uh this is a metric i wanted to include in metrics david because nft bear market is what people are saying ain't no bear market apparently that's just a meme that's just a thing that people it is it's a thing that people said you say because look at this open c volume so this is like kind of a um an ebay let's say for nfts where all of the

nfts are being sold on kind of secondary markets um best volume ever in june best volume ever 150 million in volume higher than the peak of the mania higher than the peak of the mania so quote-unquote meaning yeah like there are some categories of nfts that are down like um you know top shots maybe um a few other categories but there are others that are up and in aggregate ain't no bear market here nfts are still plowing ahead full steam and like

that i think that just makes sense i think when people are saying oh there's an nft bear market what they are really saying is like oh my nfcs are down my nfcs are down i'm no longer getting really rich really quickly on nfts like this random nft project that i just aped into didn't make me any money like yes that side of nfts is in a bear market there are some nft projects that are going to zero just because the market didn't want them nfts as a whole nfts as an industry uh doing just fine and so there's definitely a con consolidation to

quality going on in the nft market and we are seeing that play out but this makes sense too right if you think about like collectibles which collectibles are in in style you know 90k for 90s kids it was like pogs right and then it's like at one point in time it was like beanie never forget about babies you didn't know what pogs are okay so like some of you guys listening remember pogs and like anyway collectibles as a whole has not gone down but individual collectibles uh and categories of collector

collectibles have had their their their cycles maybe nfts are starting to reflect some of that anyway david we are going to get to releases but before we do we want to thank the sponsors that made this episode possible balancer is a powerful platform for flexible automated market makers typical amms just have two tokens inside of one liquidity pool which can lead to fractured liquidity across the many pairs in d5 with balancer you can access the full power of multiple tokens inside of one single amm which unlocks an entirely new

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gemini credit card i'm going to make sure that i get my cash back in eth so whenever i buy something i get a little bit of eth bonus back to me at the same time you can open up a free account in under three minutes at gemiini.com go bank list and if you trade more than a hundred dollars within the first 30 days after sign up you'll be gifted a free 15 bitcoin bonus check them out at gemini.com go bankless all right guys we are back with releases david this is an almost release but it still counts because of a release it's a release of a

release it's a release date which is super exciting for eip1559 we're talking about i haven't heard of that one oh oh you're about to hear about it then sir august 4th is the date uh august 4th so that is going to be maybe an ethereum holiday in the future i don't know it's a really it's a really exciting milestone for ethereum and tim baker who is kind of the i guess coordinating lead for this eip has been checked for ethereum as well yeah yes he has confirmed this

so it's merged it's in github the date is merged the go live date is um is set so unless something big happens between now and august 4th looks like august 4th is going to be the day for eip 1559 which includes the the the new gas transaction auction mechanism and also the ether burn super exciting man to have a date finally yeah uh and granted asterisk if something goes wrong on the test nets then it will get kicked out

but if nothing goes wrong then it's going to be the fourth that's basically the the two paths that we have for with us it's really awesome to have a date august 4th like holy that's so cool it's so close uh bankless and eth are going to do a live stream we are talking with anthony and eric to get that going so there will be no matter what time of day no matter what time of day like whatever yeah we woke up at four in the morning to do the the eth 2.0 beacon chain launch uh live stream and there's there's no other time that we couldn't do if we wouldn't do four in the morning

uh so whenever that's happening uh there's gonna be a live stream so stay tuned for that yeah we'll be there this is cool this makes it real too is when you start to see ether scan showing the fee burn look at this at the top here this is on the gorilla test net by the way yeah girly gourley testnet but in gourley testnet and by the way everything's going well in gourley testnet it seems like um there is a fee burn of over 80 eth so far uh of course results will be totally different in mainnet but it's so cool to see that on ether scan you can also see

get this david on etherscan you can see uh on the transaction like an overview of the transaction you can actually see the transaction fee savings which i think what this calculates is what you maybe would have paid before versus what you're paying now is that what it's calculating or what is it so i think what's going on here is that with eip1559 you can set how much you are willing to pay and then you will pay the base fee and that's kind of like saying just like how you are when you go into metamask when you want to do a custom

gas transaction if you want to really tinker with your gas and make it specific say you say you want to prioritize your transaction so gas is at 50 and you want your transaction to go in asap so you put in 70 and then you overpay by roughly 20 20 gray if your transactions would have otherwise gotten included for 50. with eip1559 you can put in 70 but if base fee is 50 or or the right payment is 50 then you are not paying that extra 20 you are paying 50. and so this is reporting to you like hey you

bid up to this amount but you actually paid this amount so this is how much you saved and this is actually where a lot of the confusion about eip-1559 reducing gas costs came from the the if if eip1559 does reduce gas costs it's from reducing the cognitive load of users who have to think about the right price to put in their transaction and also perhaps getting that number wrong so that's where if there's any fee savings it's coming at the human brain level not at the protocol level but that that human brain level shouldn't be underestimated right because like if

you're if you're bidding like 70 on that transaction and i get the inkling that you're bidding 70 i'm gonna build bid 71 72 and it just kind of escalates in a very rapid fashion that's how the mechanism kind of incense people to just keep out bidding one another in this model um it doesn't matter right like because you'll get the savings back anyway super cool so just to be clear eip1559 does not save gas fees at the protocol level it makes gas fees easier to reason about and that allows you to

make more precise choices about how you spend your gas which can cause you to spend less gas and it also burns that sweetness and also burns it contact that uh all right let's talk about this this is the beacon book david super cool this is kind of an nft an actual physical book this almost looks sorry to me like an almanac of some sorts you know after a team like wins a sports championship like the world series they'll publish a book it'll be quotes from the mvps all of the players

on the team that's kind of what this reminds me of only it's for the developers of ethereum two and the beacon chain all of these researchers that have been hard at work bringing this thing to market this kind of commemorates them uh super cool yeah this is uh led by trent vanepps and other contributors to the uh stateful works project which is producing the beacon book this is an actual book uh you can go and read it that's online it's just really so it's a wall of text but you can actually produce a physical book and purchase a physical book if you want to compete for one of those they're going to be in high demand um this is a

a uh i think how would i want to describe this this is like as a time stamp of ethereum progress and development right this is going to the ethereum developers the actual protocol of ethereum people who work at client teams people who work at the ef and they talk about their their experience of building out ethereum right this is a going to be a one-of-a-kind piece of of this art uh because or book or illustration uh it's free for you to read uh but purchasing a physical copy is an nft so that there's gonna be competition for that but this is really

just instantiating a lot of just just blood sweat and tears of the ethereum developers the ethereum builders to get ethereum to where it is today so so trent and the state full works team have done a fantastic job just honoring all of the labor of the ethereum developers that they have put into ethereum over the last six years into the beacon book and so go ahead and check it out go give it a read get your learn on this will be a great learning moment and then if you want to compete for some of the nfts and some of the actual physical books go right ahead

absolutely collect a piece of ethereum history david let's uh talk a little bit about polygon this is part of kind of the layer two summer i know polygon is is a side chain but layer two summer nonetheless kind of a test ramp for all of the layer twos that are coming out balancer joints polygon uh with a 10 million dollar joint token incentive program this is kind of what we're talking about with layer two summer where you have protocol plus the uh the layer two itself rewarding users and incenting them to deposit liquidity into their protocol on layer

two dual yield farming is hot so if you are bullish on bao and you are bullish on matic you can go and get liquidity incentives using balancer on polygons so congratulations to bouncer for launching on polygon i'm sure that they are also probably going to be building on arbitrary and optimism too uh and so maybe we also see some bow rewards over there as well you know what's cool is this is starting to get all of the infrastructure i remember probably uh just a couple of years ago when when it hit me that oh my god all of d5 is going to have to

re-architect itself on layer two and like what a lift that would take but do you know what david it's happening right and it's happening much more incrementally than i thought it would here's zapper now supporting balancer labs on xerox um on on polygon so you could just zap into a position the same way you would on mainnet now on polygon which is super cool um this is doing analytics integrating with with polygon and the same recipe the same playbook of that they're they're pulling off on polygon that's going to take place in

the other um notable layer twos like optimism and arbitrary and it's going to happen really fast from this point on so it's great to see that infrastructure support pouring in as well and we have to see that infrastructure report uh infrastructure being built out on these on these uh l2s because like it's one thing if the apps are there but like the infrastructure is crucial like i think people underestimate how important infrastructure is uh using matic before there was a polygon scan the fork of ether scan was was kind

of like using a black box like if your transaction did something weird it was impossible to go and check out what happened to it without polygon scan and so getting all of these like classic infrastructure tools up and running for all these l2s is really going to be what makes and breaks an l2 uh you you need the infrastructure to go along with you that's also that's also why arbit uh optimism has uh been more slow to to launch versus arbitrary uh just because they are just really dotting their eyes and crossing their teeth to make sure that they have the infrastructure to go along with all the apps at the same time

so when arbitr optimism rolls out it should come with a suite of infrastructure so it really emulates the experience of using ethereum at the base layer on optimism on day one that infrastructure man really provides such a moat for the evm as well right so if you're if you're launching a a layer two or even a layer one evm support just gets you some of that infrastructure right out of the box um david let's let's talk a bit more about this like the distinction between side chain and layer two we've made before but what about the distinction between a side

chain and a test net we're just talking about gourley testnet of course that this is a test net for ethereum mainnet this is where eip1559 is running in the london hard fork is running but this from uh andre my friend andre um from the yfi you know uh a d5 builder extraordinaire when some of the newest stuff that he's built he actually added support for gourley testnet okay so like the d5 products he's building

like in addition to other player twos and side chains and ethereum main net he's also adding gourley testnet as an option but what that does david is that makes gourley not a test net anymore because it makes the uh gorly eath go eath it's called makes it valuable potentially what's that distribution like man people used to like i i have some somewhere i think unless it kind of expired or disappeared i'm not sure but like a ton of developers have um this go eath

and it kind of clouds the difference between a test net and a side chain if there's actual economic value attached to some of these go eat tokens and he takes on this yeah my my gut take is this is weird and i don't understand why they're doing this but but andre and then also banteg from from urine they're both like bullish on this they're both excited about it they both think that gorly could be an l2 scaling solution to ethereum it sounds like they know more than me and so let me ask what i'm about to say with saying that they might just straight up be more informed about what this could be but

gourley is an ethereum fork right it's a it's a clone of ethereum that's meant to be an ethereum testing it's not any more scaled than ethereum itself to my knowledge and if it is it's it's scaled in the same way binance smartchain is scaled which is just tinkering with some numbers that really shouldn't be tinkered with and the reason why you can tinker it with with that on gourley is because it's a test net there's nothing at stake it's it's if it explodes it doesn't matter because it's a test net in my opinion test nets should be test nets and there is a there's terrible gorly distribution i'm pretty sure

there's like two people that have like more than 50 or two addresses that have like more than 50 percent gourley ether or there's some like terrible distribution of that if you're starting to use gorilla eath as money or as some valuable asset the distribution of gordon becomes really important and it was never meant to be money it was never meant to be distributed so that it's become very concentrated i'm skeptical of using test nets as l2's testings are test nets or l2s yeah look it just it just makes it a different thing right and i think this is why some of the people like

developers of ethereum particularly who have test net deployments are kind of pissed off about this because it kind of ruins the test net i mean like are you going to how incentive are you going to be now to give your go eat to someone who's just testing something out right if it's an economic vet we're going to start doing like go eat improvement proposals now yeah exactly so so what it what it kind of does is it um it makes it a different thing than what it was so if you if you make if you make um gorilla test net an incentivized side-chain system then you

just need a different a new test net right we have to go create another test net and i think people are angry about this because i i would like some further analysis on this from people who are more privy to these conversations but also you can't stop it right and stop it like once it starts you can't stop it so we'll have to talk about this as it emerges a bit more um ave pro coming in july david we did an episode stayed in the nation with robert lester on this all about institutions coming to d5 this is the d5 mullet no no no no no no no no take on this defy coming to institutions ah yes