📺 ROLLUP: Mark Cuban Titan | Metamask Institutional | Alchemix alETH | BTC Lightning

hey guys happy friday morning it is roll up time third week of june david you ready to get into the roll-ups absolutely my favorite piece of content out of the bankless ecosystem is of course the friday weekly rollups where we roll up the entire week of news in the crypto industry in as fast as possible uh and so we go through the markets what's happened in the market releases news ecosystem takes and then we finish off with what ryan and david are excited about and of course the cherry on top the meme of the week this episode is a little bit different in

that we are actually sprinkling some memes throughout the episode and so if you want all the memes you're gonna have to say to the very end because there are little easter eggs of memes throughout this entire entire episode it's gonna be a good one absolutely you guys can check that out to get the the most memes into your brain via youtube that's the way to get this visually it also comes out on the podcast david before we get in we got to talk about our friends at ledger because they're doing some amazing things with ledger live so if you have a ledger as i think many listening to the bankless

program do not just one but many ledgers there are new ways you can start there are many there are new ways you can start using it in d5 all sorts of new ways through ledger live do you want to talk about this for a second david yeah totally i think we're going to get into this but i think we're in this big consolidation period in crypto and this is the time for you as a listener to refine your your crypto environment right like if you just like needed into crypto in the last few months and you haven't really figured things out and you don't have a hardware wallet yet you

need to get a hardware wallet ledger is like the first stop into the world of banklessness and the combination of a ledger hardware wallet plus the ledger live software it really unlocks a lot of the powers of defy as like a really easy stepping stone to get into the world so if you're new to d5 if you have friends that are new to d5 the ledger hardware wall is something you absolutely need and it pairs very well with the ledger live app absolutely guys so uh now's the time get your equipment prepared we've got kind of a lull in the market so make sure

you've got the right equipment for the bankless journey uh and you can see a link in the show notes to help you with that that's bankless dot cc slash ledger yt all right david you ready to talk about markets market time all right what is happening in the markets and i mean what is happening in the markets uh bitcoin let's start there where are we at we are at three thousand thirty eight thousand three hundred dollars still struggling to keep its head above that 40 000 mark which is where bitcoiners have said that they kind of feel safe

bitcoiners feel safe above 40 000 below it yeah we're still kind of in no man's territory don't really know what we're doing we had the el salvador news this week and that pumped up bitcoin up to forty three thousand dollars but uh it quickly retraced all the way back down to forty thousand dollars kept its head above forty thousand dollars for forty thousand dollars for most of the week but now we are dipping once again below that forty thousand dollar mark yeah are people disappointed in that did they think the el salvador news would be more persistent um it seemed like there were

some good things that came out of that but also maybe some regulatory fund that came out of that so it's a double-edged sword or maybe just just doesn't excite the market as much at at this point in the cycle what are your thoughts on that yeah it is a classic indicator of a bear market that good news does not show up in the charts and we i have to say that that's what i'm seeing right now like the el salvador news did not really revitalize bitcoin in the way a lot of people hoped for that being said at the same time uh there is generally a lull between good

news with bitcoin and where it actually does show up in the markets for example microstrategy for example which we know that literally the bitcoin price is higher because of microstrategy how could it not be they have over a hundred and thousand bitcoins on the balance sheet uh but the the micro strategy news didn't really get to start being reflected in the bitcoin chart for multiple weeks afterwards i think it was like six to eight weeks afterwards and so that's kind of the narrative that i'm hearing from ck my my favorite bitcoiner uh and they just people bitcoiners think that like oh yeah we're in this like the

world's gonna have to like come to terms with this and they're gonna figure it out and so they'll start buying when they slowly figure it out like six to eight weeks later wait david we just said uh nick carter was our favorite bitcoiner do you have two or were you where are you going ck is my family my in real life homie okay irl friend bitcoiner yeah okay there we go all right well what about eth is that showing a better picture here nope it's not thank you the same thing it jumped above 2 600 i think it peaked out at right below two

thousand two thousand seven hundred dollars and we are now down at two thousand three hundred and fifty dollars at the time of recording continuing exactly what ledger said on our state of the nation with him which i continue to find extremely insightful and helpful definitely go watch that if you have not yet but uh it looks like crypto is just range bound between uh for ether between like 2 000 and 3 000 and big for bitcoin between like you know 35 000 and 40 000. that's kind of gonna be where we're going to hang out that's kind of the gist that people are saying i i still feel like ethereans kind of

feel safe around above 2000 so still feeling safe but like if it dips below 2000 not feeling so great about you the price um yeah like ledger the the tl dr of that episode in addition is showing us how to trade which was was much needed help for me he basically said that he thought there's a decent chance that ethan bitcoin are kind of flat from here on out for the year for the remainder of the year the next six months we're talking about that we'll have to see how all of this plays out but of course and also no one knows like no one

knows new news can happen it was a guess right it's like and but that the interesting thing about that guess is kind of it's kind of a contrarian guess because it's not how the pattern has played out in previous cycles right in previous cycles this is either a lull and then we snap right back up or like the market's over we hit the top and it's all down down down from here for a while um all right if bitcoin chart the ratio how's the ratio holding up it's down a bit same kind of like ranging pattern it's on the lower end of the range the range

that i think is being established is between 0.06 and 0.08 and we are at that low side of that range at point zero six one two um and so we are if we'll see if we can you know really like kind of bounce between these two ranges um but you know so overall still pretty high in terms and overall like you know historically 0.06 yeah ether btc is is high historically um back to where we are in early march uh sorry early may excuse me yeah so much slower than you see really establishing a floor perhaps

hopefully it doesn't break down um because we like that number to be high at least i do okay i'm speaking of breakdowns i want to talk about that other ratio that we talk about every week but not yet because i think that has break broken down david don't don't hang on your hats okay we'll see um anthony sessano this chart is absolutely incredible he says this is the amount of eth locked in smart contracts it's at 23 of all eth's supply in smart contracts um this is a

similar level to what it was he points out which i thought was interesting at the dao event the dao of course like original 20 2016 when everyone in ethereum basically thought the dow was this killer app was like a decentralized investment vehicle they just shoveled they just yeah it was the only app and they just like everyone is so excited they just all eat holders there this is a v much smaller amount of them just shoveled all of their ether into the doubt of course there was a hack a very

famous incident and we've talked about a lot but now we're back to where we were except that at the time of the dow ether was worth 230 million beef locked in the dow and everyone thought that was amazing now eth locked in smart contracts is worth 63 billion dollars 63 billion dollars five years pretty crazy yeah there's two stories here at the at the dow the event of the dao the reason why i was able to capture so much eath is because eth was extremely undistributed right and so while there

was 22.5 of all ethan there it was really only a relatively small handful of players because ether hadn't been distributed ethereum was one year old and so it's really just a bunch of og whales who had like ether between one and ten dollars um the fact that we have an equivalent amount of ether and smart contracts nowadays is a story of how many more smart contracts there are to deposit ether into and those smart contracts are really uh now like compelling places to deposit ether into and the other story of course is that

ether this time around is very much treated as a monetary asset and the applications attracting all of those ether deposits are treating ether as a monetary asset and that's why they are receiving deposits and so the really the the story of this is like in 2016 with the dow ether wasn't a money and there was only one contract to deposit the ether into and in in 2021 ether is money and there's a ton of smart contracts trying to compete for those deposits and that's why ether is reaching like 22.5

percent of all ether deposit in smart contracts and i don't think it's going down at all i think it's i think it's marching right up to 50 it's so much healthier right so like about 10 is is distributed in d5 contracts so all the ave compound protocols we know and love close to four or five percent or so of of that supply is deposited deposited into the beaking chain staking contract so as you're saying david not all in one place if you look at this chart in 2016 it's just like nothing and then straight up does not

look healthy um getting to where we are now has been a series of sort of apps that have really earned the eth that they have in them so it's just a cool story gonna be cool to see that let's talk about total locked value in d5 because we always talk about it every week um we're kind of range bound again i guess that's the story about 60 billion or so locked beneath it locked in d5 right now yep nothing too much there except for the fact that ave continues to hold the number one spot at 14.5 percent of all tvl is in ave which

is pretty cool by a healthy margin but you look at this curve is number two um interesting interesting unseating maker now has the bronze medal curve is number two ave number one d5 pulse index are we flat on the week here too let me zoom out to the weak yep a little bit flat a little bit flat wow what a boring market it's flat and everyone's sad about it hey flat market i have no complaints um it just gives us more time to build cool stuff all right look at these numbers these are great okay we are now looking

at the dpi versus eth and the i called the bottom at point one three said that that was the bottom uh on uniswap dpi versus eth is at point one two nine nine on sushi swap ethe dpi is at point one three zero one i call it a watch at exactly 0.1 the the .13 bottom call still intact still intact i'm not not admitting defeat yet you are hanging by a string though like this is just like there's no way this is gonna stay intact

for another week oh come on have some faith possibly and by the way it it did drop look at this yeah but if it drops and come back it's backed up i'm still claiming victory it needs to meaningfully it has to be on our on our weekly rollup like at the time of recording our weekly roll up if it's below 0.13 if it's below 4.13 for two weekly roll ups in a row then i will admit to feet okay okay and it's gonna be below 0.13 by like not just a sliver like a decent amount i is it there's some goal posts moving here no

no shush no we'll see i don't think it'll hold no matter how you move those goal posts david um let's talk about this mind-blowing revenue numbers from index co-op really cool dow to highlight really cool d5 product as well um they made close to a million dollars in top lane revenue over the past eight months this is like an etf killer it's like d5's answer to blackrock um black yeah blackrock vanguard group like like etf um products index products and

uh they're crushing it this is a tweet by peter pan i think this is the index co-ops orchestra it's like the org chart right mm-hmm but even even brighter than that it's like orgs plus partnerships yeah we've we've gone to some index co-op calls like i'm not into like i haven't done much in the index co-op dao but um we've attended some calls and that is just like it's floating it's fluid it is run well um everybody contributes everyone knows what they're doing i really feel like

the index co-op dao is kind of a model for other dows to learn from like encourage people if they're listening if you're part of a dow index index call if you're not the index co opt out but like bankless tower any other dow that's forming go check out what index co-op is doing how they're managing their processes because i feel like they're they're just nailing it and they're laser focused on meaningful metrics that will um deliver great products and deliver aum into their products super cool yeah and the reason why we are

talking about literally the org chart of index co-op in the market section is because of the tweet that ryan was just sharing a second ago like is it a coincidence that index co-op perhaps the most organized dow in the entire space is also generating an insane amount of revenue like no i don't think so and so this is a story of a dao with on-chain smart contracts that puts money into the index co-op bank and off-chain people organ organization organ organizing other people right you know capital coordination people coordination like

there's a story here index co-op really killing it nice job guys yeah you're starting to see that even like the comment about avi ave has managed their dow and their operations very well you're starting to see d5 protocols separate themselves not just on the idea but also on the execution and organization around that idea and i think we'll continue to see that um all right let's go to what's happening next bitcoin in the lightning network all right so bitcoin in the lightning network has accelerated to over 1500

bitcoin in the lightning network the the through line here is that um bitcoin in the lightning network the supply has really been flat for a very long amount of time and it's finally setting new highs it's been it's it peaked out in july of 2019 uh and then it dipped through all out all of 2020 and we are finally breaking into new new highs of btc supply in the lightning network there's very much a renewed interest in the lightning network ever since the um the bitcoin 21 2021 conference in miami uh

and that's being shown by more and more people depositing bitcoin into the lightning network guess who else is excited david jack dorsey big shocker twitter jack dorsey ceo says uh excuse me twitter ceo jack dorsey says it's only a matter of time before twitter integrates bitcoin lightning network only amount of time is kind of the same thing as saying soon tm uh we've heard jack make comments like this before uh i'm waiting to see it uh i don't really know what twitter would do with bitcoin integration that's like meaningfully different than just like

why don't you also just like pass around dollars i think more more crypto twitter or more twitter people would want to pass dollars around each other but interesting to see what jack has in store for a lightning network twitter integration david i have kind of a hot take on lightning here let's hear it okay so i think that bitcoiners should take a step back and ask themselves why lightning has the tiny almost minuscule level of adoption that it has right like i i get

that it's increased a little bit there's 500 i guess additional bitcoin in lightning over the past few months but this is still a very small number like it almost is insignificant like it almost there right and like it we've been talking about the year of crypto has been talking about about the year of lightning since like 2018. 2019 will be the year of lightning 2020 will be the year of lightning 2021. um i remember there were like memes in ethereum about

payment networks coming like raiden for instance and state channels and like plasma these technologies these things didn't work out but you know what um like i feel like the ethereum community realized they didn't work out and then they moved on and i also feel like the bitcoin community is just stuck on the lightning meme and they're not taking a step back and looking at adoption like these numbers are small david we're talking about um point zero zero eight three percent that's two zeros in

front of the eight three percent of bitcoin supply in lightning we just talked about total locked value in d5 right 10 of all eth 23 inside smart contracts 23 versus zero zero eight three percent of bitcoin in lightning and i'm not being a hater here because i support non-custodial bankless peer-to-peer transmission i think lightning as a technology is trustless and it's great but we should also step back and ask ourselves like why it's not

working is it because people don't want to spend their bitcoin to your point like stable coins maybe the use case like bitcoin digital gold hey that worked well i don't want to spend my digital gold i'll spend my crappy fiat dollars maybe that's the reason maybe it's also the capital inefficiency these payment networks maybe it's user experience maybe it's people don't care as much about decentralization when they can use a a custody bitcoin bank for these things anyway i'm i'm just kind of over and kind of exhausted by the meaning of lightning without the real world

adoption that was okay in 2017 2018 to get excited about these kind of like a 500 bitcoin gain here or there but like it's 20 21. we have d5 right like we don't need to settle for this so if that feels like a rant against lightning i'm sorry i appreciate the technologists working on this um but at the same time let's be real about our progress here and the technology certainly hasn't panned out the way i think the advocates hoped for

it maybe we should think about alternatives yeah i 100 agree with basically everything you just said i think the reason why i wanted to bring this up in today's weekly rollups is is kind of to give and maybe this is what you're critiquing is but but giving the bitcoiners the benefit of the doubt like there was lightning network hype at bitcoinmiami and bitcoiners that i pay attention to are once again stoked by lightning network maybe that is just straight up stockholm syndrome or some version of it where like they don't really have a choice like what else are they going to be excited about like taproot is also

here but also is that really all that cool of an innovation that's up for debate as well maybe they're just beating the drum about like the one innovation that they have um at the end of the day uh they're they're bitcoiners are excited about it they're talking about it so we're talking about it in the news um but yeah ryan everything you said i'm kind of on board with well we'll see look i'd be super excited if um maybe we're missing something we are not deep in the weeds we are not like network at all i don't run a lightning network note guys if there's something we are missing here reach out to david and i and tell us what we are missing um

oh boy let's talk about don't have that no okay i'm sure the banquo's audience is friendly and it's certainly open-minded all right um let's talk about this bearish uni feet accrual this is super interesting david so the top uniswap um pool right now so if you recall in uniswap v2 there was only one fee pool percentage like structure yes the structure was set at point three

percent every single pool in uniswap v3 you have three different tiers of pools i believe it's three um there's a very low uh tier of pool where it's it's 0.05 there's still the standard point three percent and i think there's like a point five percent right one percent uh one percent okay so point three there's one whole percent it's not point one percent so there's really expensive there's the weight used to be sort of normal and there's low fee what's really interesting is the usdc eth pair

the lowest fee tier the .05 just surpassed the point three percent and what's interesting about that is it means surpassing volume in trading volume exactly yes uh that that's important not total over the last 24 hours not over the last seven days correct so we can't extrapolate this trend until we see a trend too much but what would be interesting i think is if low fee liquidity pools um like one out and like why wouldn't they

win out right um but the the analysis here the second order analysis here is probably that what could happen then is some of these pools commoditize and then fees are lower so possible fees back to unit swap holders in the form of revenue are also lower so does this start to chip away at the armor of any kind of amm um value accrual token value accrual uh hope right so like the idea that hey these

these pools will just commoditize and fees will kind of collapse to near zero and um there won't be much revenue generated over the long term by automated market makers i mean it's good for users but for holders of the uni token what do you think this means yeah i think this is an extension off of very early ethereum conversation in 2015 to 17 where people were talking about the power and possibilities of smart contracts and people are saying you know this is all going to be open source software because if somebody makes a

smart contract on ethereum that implements a fee people will just fork it and do it without the fee turns out that that never really happened and really what's happening instead is instead of forking out fees defy apps are competing to get lower and lower fees right there d5 is a crucible of capital efficiency and fee competition and we are now like converging upon lower and lower fees as this competition gets more and more intense and so the 100 percent the lowest fee tier structure of unit swap generating the more the most volume on ether to

dollar pairs is really really interesting usually that the the thought was that lowest fee tier the point zero five percent fee tier was really kind of meant for stable coin swaps or like to like asset swaps just because why am i paying a whole point three percent on like trading crypto dollars right why am i doing that um less it makes more sense when you know things that are like priced stay inside of the same bound to have a lower fee for that but now we're seeing ether trading in that lower fee tier uh but the other

half of this argument the the the to continue on with what you were saying um it's the unit swap has less margin that is available for them to capture fees on in theory right if if everyone is trading in this lowest fee tier there's less of a you know total collected fees for the uni token to really capture if it ever wanted to turn that on but if we go back to our conversation with joel monegro it's more about le it's less about the specific revenue captured by the fees and more about the power to direct money

right so if a lot of money and just values circulating through uniswap regardless of the fee tiers then the and the uni token holders govern over the the flow of funds that's valuable for the uni token holders and the way that he described this is that if all these users who are using uniswap to trade and they're all using the 0.05 percent you know trading pool they are incentivized to to keep that 0.05 percent like trading like the same right they want they want to control that fee they want

to keep that fee low and that incentive to have power and governance over the fee tiers and how fees are directed is goes into buying demand for the uni token so it's less about is the uni token actually going to receive cash flows and more about how much is the uni token in demand because of the incentive to direct the cash flows of the unit swap governance and so joe's joel's theory was that you don't actually need to capture cash flows in order to have a valuable uni token and so this is a domain that we're going to

have to explore in this base like sure there's a there's tokens that will that don't capture actual cash flows but they have power and that's going to be an incentive to buy and hold the tokens and so maybe we actually have to reconstruct how we even think about these tokens it could be yeah it could be and i see the other side of the argument and by the way this this uh doesn't necessarily mark a trend i mean uta swap is generating massive amount of free fees in general the total revenue is up yeah it does make me less um

comfortable i would say with uh my understanding of d5 token assets we'll say it that way because there's definitely if you treat defy tokens as capital assets just like stocks and you can model them based on net present value future cash flows that's a very beautiful thing if now we're saying the model has kind of shifted a little bit where you can't just look at the cache that it generates and it's this other thing it's like this power governance dynamic power tokens power we don't know how to we don't know how to model that right then

that's not capital assets they're power tokens i love that i love that meme well there you go so we'll have to see how this plays out anyway um i thought that was super interesting this week let's talk about something else that's interesting nearly 90 of cryptocurrency investors surveyed said they weren't scared by may's brutal sell-off what are they doing instead they're planning to buy more see this is why this whole like range bound thing is actually a a period of very high pain because no one's no one's selling because people

are still bullish we still think well who is selling somebody's selling right yeah no very few people are selling people are trying to accumulate because they want to buy more but now we're accumulating at like 23 to 2 600 ether that's a really tough price to accumulate at like it's kind of expensive yeah everyone is still expecting it to go more right and so like that's that's where the max payne is is you know only the the most convicted people are really like ready to just yeet their funds into ether and so the people who are trying to

stack as much ether as possible they want to stack it below two thousand dollars um but a lot of people want to stack it below two thousand dollars and so it seems to be there's a lot of people with demand to buy either but it's also demand to buy ether at this you know historically this expensive price this is crypto holders right now first meme of the show basically what crypto holders are are the the wolf of wall street i'm not effing selling meme right now uh even though we all got smacked by that 60 drawdown plus a little bit of a rebound

everyone is like no i'm not selling no way guys we will be back in just a moment with some releases because the builders are still building but before we get to releases we want to thank the sponsors that made this episode possible balancer is defy's most powerful automated market maker typical amms just have two tokens inside of one liquidity pool which can lead to fractured liquidity across the many pairs in devi with balancer you can access the full power of multiple tokens inside of one single amm which unlocks an entirely new playing field of possibility this makes

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on ethereum and just recently released ave version 2 which has a ton of cool new features that makes using ave even more powerful with ave you can leverage the full power of d5 money legos yield and composability all in one application on ave there are a ton of assets that you can deposit in order to gain yield and all of those same assets can also be borrowed from the protocol if you have deposited collateral here you can see me getting a 200 usdc loan against my

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power of ave at ave dot com that's aave.com all right guys we are back with releases the first is metamask is going institutional welcome to the layer of the blue fox they said i guess metamask is releasing an institutional version of their popular browser extension david what's happening here yeah i'm actually not too sure i would like to get a peek under the hood of what this new version of metamask is which apparently is focused for institutions uh to me it's a

if it's you know kind of similar to its current instantiation of a d5 web you know a web browser that has your ethereum wallet or connects to your ledger and allows you to connect to defy apps how does it change if it's for institutions is it still a web browser is it something else um can i use it i i kind of want to find out what metamask institution is maybe i'm an institution um i think some clarity around this would would uh be interesting but i i'd like to see like what what about metamask is different and now it is for institutions interesting that metamask is going after the institutional client