📺 ROLLUP: El Salvador | Elizabeth Warren | Bitcoin FBI Ransom | Polygon & Arbitrum

thankless nation it is friday morning the second week of june roll-up time david you ready for roll-up time ryan i'm always ready for roll-up time it's honestly the favorite my favorite piece of content that we produce here on the vanquish program is the most fun just so consistent every week we bring you markets releases news takes what we're excited about it causes david and i to go in depth on the week to make sure we absorb all of the headlines so super exciting this comes at you every friday morning so you can enjoy it with your morning cup of coffee youtube i

think is the best way to view this because we've got lots of visuals but if you are podcast only enjoy it on the podcast feed to david before we get to the first section we got to announce something that's uh kind of exciting this is a partnership between the bankless dow and pai dao which is an index um yeah a defy index organization and they are also a doubt and they've created a way to earn uh liquidity do you want to talk about this for a bit yeah this is uh something i think that where the through line is

really about dow to dao partnerships right pai dao wants uh liquidity and asset deposits and it is uh incentivizing the bankless dao uh to both uh uh submit liquidity which is what the paidow wants but also use a referral link to generate referral fees for bankless dao uh and i like i said in the in the future of work article that came out on bank list last week the future of work is like dow to dow relationships we can bootstrap these things ourselves so if you go to the link in the show notes and you deposit

liquidity and stake your lp tokens you get a pretty healthy yield at least at current doe prices um right now you are getting 375 apy at current liquidity and good current doe prices so big asterisk um on the dough to the play to do lp and then on the dough to eat lp you're getting 290 again at current liquidity prices and current dough prices uh which are pretty awesome yields if that is something that you are interested click in the link in the show notes and bankless dow gets the referral fees there you go there's a whole how-to guide if none of that made sense to you

read the how-to guide and you will learn more all right david you ready to get into this let's do it ryan there's there's so much to talk about this week per usual i know i know all right market let's start there bitcoin price bitcoin still number one last i checked house bitcoin price hanging this week yeah bitcoin touched a low of right below 32 000 which again was really really spooking people but then the el salvador news came and bitcoin pumped from thirty two thousand dollars all the way up to three thousand seven hundred and eight hundred

dollars and now we are at the current price of thirty six thousand and eight hundred dollars with the bitcoin price uh we had our state of the nation with ledger status and he kind of schooled us on ta and analysis and he kind of uh pointed out how broken the bitcoin chart looked and how scary it looked it doesn't look awesome it doesn't look awesome right now but my my take is that this el salvador news could be the news to help repair the bitcoin chart uh it's very it's very plausible it seems to be

an easy take to say that this el salvador news is going to what is paints the floor of the bitcoin price possibly possibly we'll definitely see the charts don't lie is what i learned from from ledger but there's still a lot of fear in the markets david this is the the feed the fear and greed index uh from an organization that monitors sentiment for for bitcoin we're still in the extreme fear zone and i think this is on the back of just a lot of

um you know downward price action but also energy um fear uncertainty and doubt going on in the market even some regulatory clampdown talk so that that extreme fear sentiment is uh is still pretty active for bitcoin any thoughts there yeah the bitcoin has had an insane amount of headwinds especially coming out from the regulatory environment we've got we've got the energy crisis for bitcoin which they are still fighting now we have these uh ransomware attacks bitcoin is having some pr

troubles and for me that's that's where i get a little bit of my fear is like can bitcoin overcome these pr issues because there's a decent amount of the people the people of the world that are you know going after bitcoin right now that don't care about realities and are just going through narratives we'll we're going to be talking about this in the weekly rollups but like the anti-bitcoin narrative is growing from people who don't care or know about bitcoin yeah absolutely and we'll see if that el salvador news which is going to be a big topic this week is enough to combat that

okay let's talk about eath price so we're hanging at uh 2500 at the time of recording so we are down on the week uh what yeah what's going on here down on the week the weekly high is just above two thousand eight hundred dollars the weekly low is just below two thousand four hundred dollars and we are at the current price of two thousand five hundred and six dollars um flat on the week so that means that liquidity providers are probably pretty happy because they're generating the liquidity fees but people long eath are probably

you know again like kind of antsy if you're long eath you want it to be higher than where it is right now uh kind of in the same vein as bitcoin like we are really looking to have some like support and catalyst to really make sure that you know this doesn't this whole entire like weekly or two weeks of price action just doesn't break down let's look at the greed and fear index again for eth so we're not an extreme fair fear for eth according to market sentiment so again this analyzes social media channels all sorts of sentiment indicators but we are

squarely in the fear zone that feels about right to me i think eath holders are uh still doing okay still feeling good about the gains on the year but also a bit fearful i think the big question comes out is like the question we asked ledger hey what's going to happen next what do the charts tell us are we going back into a bear market like is the bull run over or um you know will bitcoin drag eth down uh what's going to happen in the future

that that remains kind of the question one of one of the possibilities ledger laid out which i don't think uh has been clearly articulated on on bankless before by a guest is just that hey what if we're just flat for the entire rest of the year the whole year the entirety of 2021 and that's definitely a possibility too and what he said is that if we are flat for the year that hurts because everyone is expecting up when everyone is expecting up and you get flat that is down from expectations right uh so

that's bearish versus expectations and so um it seems like it's in the cards and like that being flat is actually causing fear and that's kind of that's kind of what happens when like you get kind of get used to up and to the right only uh all of a sudden flat is bearish yeah me personally david uh i'm not in that fear zone like i'm not concerned at all i'm probably closer to the to the yellow green zone um i just think even a flat year actually feels uh feels really good to me at this point in time because it

clears out a lot of the the folks who are just here for short-term gains but it would be a break in the cycle like crypto hasn't traditionally um you know had such a short bull run and then gone back to flat zone before a steady rise up in the way that ledger was describing so we'll have to see how this plays out if you are long term on the journey of course this doesn't factor in as much to you the weekly uh ups and downs don't matter but let's look at the ratio eat the bitcoin ratio so what's going on here yeah ryan if you

want to zoom out maybe to the three-month chart uh the ratio peaked out it was climbing really really steadily up until right before this el salvador news topped out at .077 when the btc ratio high was just a little bit of above .08 so almost touched the highs that we set a couple months ago then the el salvador news came and and people uh in bitcoin had a pump off of its floor now we are down to .067 each btc uh which is still a really

healthy number uh and it i think this indicates uh the same thing that ledger was saying it looks like it's going to range for a while it looks like it's going to range between .055 and .08 for a decent amount of time um and and depending on on you know how how much you want to believe me it looks like it could it could range for like like ledger said the whole rest of the year um but again i don't know anything well we keep referring to that el salvador news i promise guys we're going

to explain that in the news section what's going on there let's talk about d5 though really quick while we're on the numbers so kind of flat again on the total locked value metric in d5 flat at about 60 billion or so anything anything to talk about yeah 61 billion locked in defy i think the cool thing to talk about is ave dominance ave has taken the number one spot on locked at assets locked in defy 13.2 billion yeah it used to be maker as of very recently but ave has really

sucked in a lot of liquidity and assets and some of that is definitely due to their polygon integration assets locked in ave on polygon is going up a lot yeah i remember a time david when uh d5 was concerned that uh maker had too much power and influence and was too almost like getting too big to fail it used to have 80 yeah 80 remember there's like a maker dominance um sort of index for for a period of time and now it's hanging out number two it's it's still got that that

silver medal but um wow the ascent of ave has been quite a story i think we'll we'll talk a bit more about that but let's talk about the d5 pulse index so once again these this is an index of the top blue chip i'd call them uh d5 tokens and we're down on the week um buy a decent bit what's going on here yeah started the week at just above 400 dollars now we're at 336 was a pretty decent dip yes defy tokens taking taking

a beating not recovering as well as ether recovered and this is i think where a decent amount of this fear comes from like if people or or a result of the fear one one of the two uh when people get fearful they go risk off and they go up the market cap stack into the more secure assets like bitcoin and ether that's why ether has you know dipped versus bitcoin that's why defy tokens have dipped versus ether when people get fearful they go risk off and they go into you know more safe haven assets

well let's see how uh this is working out for you david you made a bottom prediction on the dpi to eth ratio and oh my god i don't know if that's held what was your absolute bottom prediction the absolute bottom that i'm calling is one three and we are currently at point one three four except the thing is like look at that downtrend just like look at that just straight down and to the right and it almost tried to break out of it but no uh and right now this downtrend is very much intact uh and so uh your your

boy might be invalidated pretty damn soon here we'll see but it was it was fun while it lasted yeah well i guess what this means is uh maybe we get layer two summer but we might not have a defy token summer repeat right we're entering into um d5 summertime last time d5 tokens were just starting their ascent in june of this time last year um we may not see that repeat in this summer it could be a chilly summer honestly i don't think anyone knows what

the hell happens next true we'll have to see okay um but let's talk about this the story i think in the markets really is a story of cool down uh this is joel john who gives some takes on this maybe we'll go back and forth on a few not read them all but number one is he says i was intrigued because the seven day moving average for volume had become begun declining substantially over the past few weeks it peaked at 90 billion for daily volume is

currently 44 billion so he's saying daily exchange daily volume has peaked and definitely started to uh to cool off that's his first take where we're seeing this cool down yeah it is cooling off from 90 billion but also if we go back just to two months the 44 billion like one month two months ago was actually like the new peak right and to some degree like bitcoin yeah ether moved really really fast and also ether had the most volume out of any asset in the last like two months uh

and so like again like from the peak it dropped off but right like its current level is still really high and honestly i'll say the same thing about ether price the peak four thousand three hundred dollars really high current price of two thousand five hundred dollars comparatively low but if you go back two months still kind of flat right like still good yeah and still definitely above 2017 all-time highs um let's see the second one david you want to yeah coinbase slipped from the ranking of number two in the app store to a number 121

implying that there's a lot less downloads of coinbase which there's a means just intrinsically means that there's a lot less retail demand so that very much falls in line with the dropping in volume it's kind of cool for a brief period of time coinbase the app was bigger than the cash out from square that's pretty cool now that's back down a similar cool off in the number of portfolio apps so blockfolio is one uh it's surged the last few weeks but um kraken pro etorio crypto blockfolio from

an app's perspective all sort of trending down except blockfolio is somewhat up so that's another interesting marker of what's happening yeah and another big marker that i remember being very big in 2017 was uh daily active follows of uh exchange accounts twitter twitter uh twitter exchange accounts the new number of twitter followers following exchanges has declined from the height of 546 people joining every single week right now to where it is at 200 000 people following twitter account crypto exchange twitter accounts every single week again indicating a declining

interest i kind of like these social metrics because we don't look at them often david so it's worth looking at oh here's one this is um the number of prominent youtube influencers crypto influencers um it does not include us yeah what includes people like uh ivan on tech data data dash box mining the moon andreas legit um and two others i don't think we are any of those two others but anyway it's gone from a peak of new follows 130k

a week to just 36k users each week so it's definitely declined the youtube influencer traffic has declined as well our numbers are yeah if we were there we would be the outlier ryan we don't hit these major numbers that some of these other so-called influencers they've been around from 2017 so they have that one up on us yeah yeah and look it's different kind of content ours is sort of uh less i don't want to slam mother i don't want to slam other influencers but we're definitely like long-term oriented we

don't have charts up all the time we don't have charts up all the time uh okay let's talk about this though the nft market bubble has popped we've got the charts to prove it so it was sort of like a uh this these charts are saying a near 90 collapse in nft sales and i think it was saying that look the nft bubble is three to four months long and now it's crashed what do you think about this take well uh we do know that

there were a bunch of terrible nfts that were getting sold and so to some degree like we kind of need some some quality to return to nfts in some way you didn't you didn't buy any of the lindsay lohan no i did not no i um and like you know uh crypto punks which are still like i would consider quality nfts were going for an insane exorbitant amount of money um but i would like to say that the take here is while volume is coming down perhaps perhaps again a return to a new means

setting a new floor um but i was talking to jamis from pleaser dao who's very big in nfts and very focused and he's very you know connected with all the nfc issuing platforms and all the just very much into the details of what's going on behind the scenes and nfts and he says that the amount of innovation and development and competition between nft issuing platforms is absolutely insane and so this is very much a if you look at the charts it's an nft bear market but if you look at the development it's

a development bull market with nfts uh and that's kind of the story of crypto like development doesn't happen when they're when there's retail mania yeah i think it's great look uh unquestionably nfts are here to stay i also think it's healthy like this is sort of a um a sector bubble in crypto that peaked retail mania and then collapsed but didn't take the rest of crypto with it right so maybe this is evidence for sort of that super cycle theory where different sectors and cryptos sort of go

up and down and have their own manias and collapse but um we obviously haven't seen a secular bear market 90 sell-off in other crypto assets and yeah as you said like the bear time is when builders build this is kind of the best time to be involved so if you were intrigued by nfts i would say now is the time to actually go start maybe buying them maybe seeing what's going on maybe starting to build things definitely build your your network in the space because

um the mania has left and now is the time to do it bear markets are where wealth is created you find you're right you're at the correct position in bear markets and then you eat your ramen and then you wait and then when it finally comes your turn like you're well positioned position yourself during the bear markets absolutely david all right um this is kind of cool eath had the highest trading volume of any crypto assets across all the major not decentralized exchanges but centralized

exchanges in the month of may reserve asset for crypto question mark this is coinbase number one overtook bitcoin uh binance same story just barely over bitcoin but still um uh huabi trading volume eth was number one ftx eth was number one actually pretty impressive to see the strength of volume on centralized exchanges and so sort of calls into question like there was sort of um a maximalist take that bitcoin

would always be the reserve asset for crypto and always be the dominant most liquid trading pair and we're just not seeing that now whether whether it can kind of hold that into the future is sort of the question right so i will say there was a period of time where doge was actually crushing bitcoin on some of this right so one month doesn't really change the situation very much it does point to some strengths but we'll see from a long-term perspective how this trading volume um

plays out it's important for ether to be on the board so like you know one month uh is what ethers got under its belt as the leader in trading volumes and you know it didn't have that before uh next up one year how many months will it take until one year of ether trading dominance over bitcoin uh we'll find out right um okay this is really cool david um let me let me blow this up this is from our friend the token terminal this is a visualization of daily borrowing volumes from the leading lending protocols last

year do you see this it's kind of a horse race between compound maker ave and a few other centrifuge and others look at compound compounds just taken off crushing it right this is after d5 summer wait ave is coming up there's ave wow look at that volume right that's crazy so i don't what happened near the end there like what happened the last two months to cause that yeah what was yeah what was the what month was that um let's see that was like april and may of 2024 may 20 market volatility man

market volatility volatility is doing something different um well ave integrated on polygon uh this is layered obviously markets yeah i do think um back to the theme we've been talking about david is um what as you're a value as people are evaluating d5 protocols i'm doing this myself it's like you have to evaluate what their layer two strategy is right now because that's where a lot of the the growth is going to be in the future um and ave has just been

i think has a very solid layer two strategy compound is doing their own independent chain right which is interesting um i'm not sure what their plans are to expand into like we haven't heard much about that i haven't heard much about it the other the other thing that differentiates ave from compound and i think why ave just like jumped at the very end is like avi's got all the tokens and tokens did very very well in april and may right true all right guys we're going to be back with the releases 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 uniswap dao apply for a grant to uniswap 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 dal 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 unisoft to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring bankless gemini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini since i first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells gemini is available in all 50 states and in over 50 countries worldwide and on gemini there are markets for over 30 various different crypto assets including many

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my gemini credit card i'm going to make sure that i get my cash back in east 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 gemiini.com go bankless all right guys we are back with the releases in crypto last week the first one we want to talk about is arbitrary

stuff player two summer stuff unit swap now deployed on arbitrum wow that was fast community voted for it they deployed it a few days arbitration of course not open they haven't cut the red ticker tape and open it to their theme park to guess but uniswap is deployed and apparently works on arbitrum kind of cool wait so is it arbitrarum that is preventing users from coming or is it uniswap that's preventing users from coming i think it's uniswap ah so i thought it was arbitram i thought that

um arbitram wanted to wait until they had some rides in their theme park that wouldn't chop people's heads off um and they said it was more social coordination rather than like so like the infrastructure of getting a block explorer up and going and getting metamask integrated and getting chain link on so that you could power whatever feeds that a d5 protocol needs i think they were waiting for some of that to come to place and then they were going to open it and not all the rides would be open at that point in time but

at least it would be there would be enough there for users to start so i think that was kind of the dependency but i could be wrong no i think that makes sense because unit swap is talking about you know how developers with white-listed addresses can uh can you oh here you go yeah yep okay i guess that doesn't say it doesn't it doesn't really specify but i think if if we're talking about white-listed addresses like who's in control of that arbitrary's in control of that uh so that makes sense um and also it also makes sense because you know they want to establish some sort of credible neutrality uh and so i think

white lit or like allowing white listed addresses only which are developers like basically developers only yeah i think everyone gets to like have their here you have your slotted amount of time to build your stuff so you don't have to have this rat race like you don't have to you don't like sushi would just win that race because they just integrated crazy right yeah and so i think they must be giving some sort of like grace peers like all right you have this amount of time to like build your apps and then we're going to you know literally cut the red tape and it's so bullish look i think this is cool because unit swap v3 is is awesome it's really great

and um they haven't yet expanded to a roll up yet so they've let um automated market makers like quick is a quick swap quick swap on polygon kind of dominate right now and it's because unit swap has decided not to enter polygon why because polygon does not have the same economic assurances as a rollup like arbitrum but now they're in the ring and they're going into layer two and so i i'm super curious to see how the automated market maker money robots all fight for liquidity and

like fight each other and we're the beneficiaries of course but it's going to be cool to watch and unit swap v3 is a very high touch amm right like concentrated liquidity mike makes you like you need to like be on the on the ball with like how you how you choose to lp and having that on the main chain with gas fees and like long block times really hinders that and i expect the unit swap v3 which is already so like it's supposed to be a very fierce competition that competition just gets more fierce when you have like almost instant block times and almost free transactions yeah and it's it's great to

be able to play with it without like having to worry about really high gas fees anyway so arbitrarium humming along um they arbitrarily hiring nuts in their their uh twitter header but i think they're also excited to announce that graph protocol is now offering hosted services on arbitrary one we did a great episode of the graph they they provide a lot of the sort of the data indexing infrastructure to all of these chain link for the inside yeah it's it's kind of basically that so the graph protocol is there now to set

up in the theme park um david we should talk about uh as long as we were talking about uniswap v3 a fantastic unit swap v3 calculator came out and i've looked at this it's it's i haven't spent enough time with it but it seems super useful i think we should just spend a few minutes like walking through what this is this is from flipside crypto but if you were curious about um how much money you can expect to make a like a model for how much you can expect to make as a liquidity provider

in uniswap v3 how this works because as you said david it is more complicated this calculator is a great way to model it so what dials should i set here well like what would be a good demo of this yeah let's so we are looking at the usdc to ether pool at specifically the point zero five percent uh fee there's also the same pool but with point three percent and that liquidity is different um but it looks to be that the dominant pool for ether to usdc is the point zero five percent fee so let's keep us there

ryan uh let's go ahead and put one thousand dollars i don't know why it starts at seven seven seven let's put one thousand dollars in uh and the i think that this liquidity positions graph right on the right here uh that is i think something that we as an industry and as a globe will look at until the end of time because this graph tells you where the liquidity is and also this dot this dashed line is where the price is all of the green is where the liquidity is uh and this is this is where we are

playing this is the game people that have their liquidity positioned under the line are winning and look at all that all the people that have that spike of liquidity i i it's kind of hard to eyeball this price but i think it's like at two thousand five hundred dollars to two thousand like six hundred dollars ish right now price yeah that's east price right now ether is dipping at two thousand four hundred and eighty two dollars there's a lot of people who position their liquidity at above this price and so the people that are positioning the liquidity at below that big range where everyone else is are

getting out sort like an outsize amount of fees because they they are where the liquidity is inside of the bands and so ryan on the left here you have a uh according to this website you have a band a liquidity providing band of concentrated liquidity between two thousand two hundred and fifty five dollars and two thousand nine hundred and eighteen dollars so that means that if you deposit your liquidity here you think that there's going to be a large amount of time that ether is going to spend between these bands but if you if you had a conviction that

the eth price was going to stay at an even narrower band you could drop that 2 900 price let's say we're bearish i think we had just the most bearish weekly roll-up uh market section that we ever had so let's drop let's drop that top price down let's go down to 2 500 uh which is right above where it is right now and then it's just and just to be clear david what we're talking about with this liquidity band is the thousand dollars that we have in the top here we're only providing that a thousand dollars worth of liquidity and this is usdc