📺 ROLLUP: Optimism | Layer 2 Summer | Axie Infinity | ETH Documentary | Space Jam NFT

hey bankless nation happy second week of july what time is it david it is friday weekly roll up time where we take the whole entire week in crypto and condense it down into one single episode ryan i'm actually particularly stoked for this weekly roll-up episode because so much stuff happened in the last week there's so much stuff to talk about so much stuff to cover and so we are going to go through all of it with the bankless nation this is going to be a tricky one to condense because as you said there is so much to talk about but let's get into it if you're new to the roll-ups they come out every friday morning and our job is

to boil this down into markets releases news take what we're excited about we end with the meme of the week we hope you enjoy this it comes out on youtube and also on the podcast david before we get into it we've got to talk about something big that is coming to crypto that is the smart contract summit that is happening august 5th to august 7th and this is like it's it's put on by the the folks at chain link but this is almost like a free defy conference because everybody's going to be there they're having like 200 different projects discussing d5

nfts blockchain they're talking about mev we're going to be talking about layer 2 david you and i are going to be there we have a special panel that we've got lined up on eip 1559 which hopefully on august 5th will have just happened by the time we do this panel uh i'm super stoked about this it's going to be eip1559 week and this is going to be part of the weekly orchestra of eip1559 content going out that week so definitely stay tuned to the smart contract summit get a

ticket or sign up the tickets are free so sign up for one and get and watch the eip panel that ryan and i put on we will have a link in the show notes to the smart contract summit so you can hook yourself up once again a free conference like a two-day conference huge value in that uh and um it's gonna be happening here soon one other thing we should talk about david is the staking services panel that we did last night was super late for me but this panel was definitely worth the wait uh do you want to give folks a preview yeah so we did this uh 8 p.m

last night from my time 11 p.m for ryan slime yesterday and and the reason why it was so late is because eat staking is a global phenomenon therefore these staking as a service providers are found all across the globe so we brought on darren langley from rocket pool who's from australia we brought on vasili uh chapalalov from actually don't know where he's from i think eastern europe uh and then we also brought ejazz from coinbase and so we have three different staking as a service providers coming and giving their pitches their opinions their approaches towards staking eth and

there was a ton of knowledge got dropped there uh definitely check that out that is a panel that you do not want to miss it went out on the podcast yesterday morning and a youtube yesterday evening as well uh so definitely watch that once again it'll be in the show notes all right david you ready to get to markets let's start with bitcoin price bitcoin price started the week at two thousand dollars went to the high highs of thirty four thousand and a half dollars and is now down to the low lows of thirty one thousand eight hundred dollars

uh is this more crab season are we starting to get into bear season this is like i hope it's i hope it's crab season still i still hope because it's starting to like you know push on that bottom boundary of crab season right it's starting to be like ooh crab crab bears i still feel like big pointers bitcoiners feel okay as long as it's above 30k and uh ethereum's feel okay as long as price is above uh 2k and i'm not sure that we're there yet for ether we'll talk about that in a second but you know what has been growing on bitcoin is capacity in lightning so this

is actually some fairly decent growth a growth rate i would say over the last um 40 days or so in lightning there's 1800 bitcoin in lightning as of right now what's your take uh yeah we bitcoiners pay attention to lightning network and so seeing that growth actually follow through is really important at the end of the day this is like one micro strategy purchase worth of bitcoins in the lightning network so like still small numbers but fast growth rate so definitely something to keep an eye on yeah definitely um and let's talk about

ether now so eth price we are below 2000 so if ethel's not feeling great yeah the holder's not feeling great maybe maybe we're dipping into you a little more of that um bear with crab arms or crabs with bear arms whatever you said uh what's what's your take on eath price yeah youth price started the week at 2100 got up to a high of 21.75 so really didn't have any much of an week momentum uh and now we have fallen down below the two thousand dollar level currently at nineteen hundred and twenty five dollars

crab with bear arms bear arms all right you know why i find it hard to be bearish and there's lots of reasons but here's one of them uh ether this year is on track to do 8 trillion in settlement value transactions 8 trillion large number on its network in 2021 that's absolutely incredible this is like a three or four x of of paypal and these numbers are absolutely staggering like a huge chunk of this probably 50 percent or so is settlement

in eth denominated in each the rest is in stable coins i'm not sure if this even includes i don't think it includes all of the the tokens on ethereum which would put these numbers even higher no one's talking about this like this is becoming the a settlement network for the world's bigger than paypal and still mainstream doesn't know the word ethereum this is why i find it so hard to be bearish when i see metrics like this yeah price does not matter here like settlement value settlement speed settlement volume

going up and to the right it doesn't matter what price is stable coins don't change in value and even with ether dropping in value the value of ether being transferred keeps going up uh you know keep in mind eip1559 directly translates this settlement volume into each scarcity and so while we are seeing crabs with bear arms we are also seeing lots and lots of economic activity on ethereum which would ultimately lead into ether fundamentals i know we're not going to talk about eip five 1559 and all of a sudden i don't even know what that is

yeah no no more talk of that okay let's go to um eth and the bitcoin ratio so where's the ratio hanging just above point zero six and so each btc is in straight-up crab season with crab arms no no bear arms there uh but it it is bouncing between that point zero five five and that point zero seven level um not really much of a story here it's not going down not not going up it would be nice to see eath hold that .06 level which would set a higher low um

versus the .055 that we set right before july at the end of june um but other than that uh neutral neutral territory you kind of need as we discussed last roll-ups you kind of need eath to run if we are going to remain in a bull market uh definitely feel that way let's talk about total locked value in d5 this is crab crab arms crabs crab with crab arms just hanging out 55 billion i feel like we've been at the in in the 50 billions or so for quite a long time right i guess we have the north side 55 and

above i think has been like pretty pretty common ever since uh you know the the mania kind of left the markets mania left uh that was may that was may when we had all-time highs of close to 90 billion times in total remember those days remember those days they'll be back don't worry all right let's talk about defy tokens the d5 pulse index this week where are we and where did we start we're down on the week looks like we're down on the week i think the the start of the week we saw i think 320 dollars and we are now down to 300 280 so down on the week

down 16 or so um but let's let's take a look at uh usage because this is such a cool metric these things never line up prices and fundamentals are not ever aligned it's like they are oil and water industry look this is the thing i you know i tweeted this out the other day it's like don't ex don't join crypto and expect to be a millionaire overnight right like just be patient the big moves happen in just a few days you have to be in the market during those those big moves when

you see fundamentals like this why would you exit the market i just don't understand like oh we haven't even talked about what the fundamental is three million defy users that's what it is we now have three million d5 users when we when i first started um talked about this metric david when we were talking about it originally richard chen used to put these out it was at like 150k and i remember thinking oh that's about the size of a you know a small american city right and then it grew to like a million we're starting like you know decent size metro yeah

now we're at three million right so we're creeping up to like new york city levels and and beyond and pretty soon this number is going to be the size of like a country size of canada or something size of australia but like three million defy users this is not active this is not um number of addresses this is actually uh defy users um i believe cumulative defy users are using unique addresses and so this is probably less humans yes but still yeah it's still bank accounts call it bank accounts the trend

is phenomenal the trend is what's important which is up and to the right the last time richard chen tweeted out one of these and he's you know keeps on retweeting his own tweets of the last milestone we made two million defy users came in april 25th and three million defy users came july 12th so the rate of growth is impressive to what you were saying at the beginning of this segment ryan where you were talking about how like people you people come into the world crypto but they say oh look at the like insanely strong fundamentals behind this asset i'm gonna buy it and then i'm gonna become rich get in line buddy like they all have

good fundamentals we're all waiting to become rich like every single thing there's so many things that we talk about in the bankless world have awesome fundamentals it just takes a lot of time for the world to figure it out yes it takes a lot of time and yet it doesn't take that much time you know what i mean yeah in hindsight it wouldn't yeah wait a year wait two years right like uh these fundamentals are gonna aren't a catch up market's gonna catch up with these all right let's talk about what you love maybe you like this this week the deepai the dpi to eth um ratio

index i guess it's above your number so you feel like you guess yeah it definitely is i am you know claiming victory left and right here so far like i know it dipped down but like point one three is the number and like i i'm sticking back when it dips below point one two you're not even gonna show up that week are you you're just gonna like raise your mind i can't do the roll-ups i feel kind of sick yeah well you're hanging in there but um no moves it's definitely not uh d d5 season it's not we are we're not bullish

but uh your boy is just excited that 0.13 is still a really good number to call okay all right and once again that that tracks um d5 relative to the price of eth through the dpi index david let's talk about this this token has been on an absolute tear we had axi infinity on we didn't really discuss price right at all we were just talking number of users we had them on um state of the nation on tuesday but look at their token price dude yeah it has the market cap has just absolutely exploded what was it right before it jumped the market cap was 250

million dollars to where it is today at 1.5 billion dollars it was at 250 million dollars uh just like i think at the end of june i think if i'm reading that chart yeah at this at the 27th of june it was at a quarter billion dollars now it's at 1.5 billion at dollars that is insane growth you want to check this out let's let's go to a year ago what you could have bought axs this one don't no we don't need to do that no no i want to see this we need to see this we need to appreciate this this is what is this

this could have been you this could have been me i'm just saying like so the end of a d5 summer i guess it wasn't out yet but it's like d5 summer was over and we're in kind of this lull period november 2020 market cap of axs tokens 7 million wow seven million seven million gotta find those yeah and a half ago wow gotta bet on the communities before everybody else knows about them uh and they were hustling they were this is why it pays to use defy like if you just even had like i don't know what

would a hundred dollars have gotten you it would it would have turned 100 would have turned into like tens of thousands hundreds of thousands yeah i think you're doing quite well if you're buying axes in november december of uh of last year when the market didn't think much of them anyway let's move on maybe that's a sad story for some who are not in axs um fully diluted valuation divided by monthly volume per dex this is an interesting index from richard chen what's this about david yeah so this is a comparison of uh dexes on ethereum and it compare it divides

the volume that or the excuse me the evaluation the fully diluted valuation of the token divided by the volume going through the exchange uh and so this kind of just tells you the valuation over volume ratio and so richard has compared against you know all the common indexes that we know 0x sushi swap bancor unit swap curve balancer kyber and he's organized it against like the the ratio of how much volume versus how valued the project is uh 0x coming in on top followed by sushi swap as

uh extremely favorable volume to market cap ratios and then coming in last is balancer and kyber as in uh a involve a high ratio of market cap versus total volume going through the system uh so potentially overvalued on this metric versus one particular metric swap are potentially undervalued on this metric which is interesting to look at i i love that we're getting more granular in our sort of valuation metrics for this asset class particularly exchanges it's super cool um i wanted to show this off too

david this is a website called deepdow.io these are the people that are most active in governance you know on bank list the newsletter you remember that newsletter we have david what um yeah it's pretty cool you should subscribe if you haven't uh check that out we published a post it was called um i don't remember what it's called but it's about building your your device building your uh resume on ethereum is the idea that your ethereum address is your resume and this is what i see this is uh the people in governance who have

uh the most number of proposals most number of votes are involved in the most number of dowels and this is like a leaderboard right for them so we've got a person by the name of van gist we've got um peter pan whom we know pat on bankless we've got uh koopa troopa he's number four i've had him on bagless before um top tokens bankless dow nice all right yeah exactly and like um it's super cool to see that some of these dow participants are are getting recognized on a leaderboard this start thinking about this as your

new resume your new digital reputation right like back to the josh rosenthal episode you know new medici the crypto medici this is the crypto renaissance what what are you doing to build your resume um these people are are building it through participating in governance participating in dallas and um you're being recognized for this because all this is open can be displayed in these kind of leaderboards and benchmarks super cool yeah the right takeaway is that if you work and contribute to dows you get

noticed to the point where somebody will make a website and put you on a leaderboard that's pretty crazy here's a little bit of a ethereum trivia for you for the listener also this became relevant when we do trivia top signal in the future that's going to happen peter pan number two on the leaderboard uh he the author of the uh before bitcoin series which we read on on bankless a while ago uh he was actually he applied to become a moloch dow member which was kind of like you know the original dao that really spawned the dao revolution uh he applied to become a molok dao member and was actually

rejected by the molok dao committee uh and then he turned into one of the greatest dowers of all time so mohawk dao definitely did not make the right choice on that one yeah he eventually got he eventually did get membership into the dow i'm pretty sure yeah he he is absolutely dowing it up and become quite good and become a thought leader in the space so super cool all right guys we are going to get to the releases in a moment and the news and all the other exciting things on the roll-up but before we do we want to thank the sponsors that made this episode possible

living a bankless life requires taking control of your own private keys not your keys not your crypto that's why so many in the bankless nation already have their ledger hardware wallets which makes proper private key management a breeze but the ledger ecosystem is more than just a secure hardware wallet ledger is the combination of the ledger hardware wallet and the ledger live app and if you're used to seeing all of your crypto services and favorite d apps all in one place ledger is where you want to be not only does ledger let you buy crypto assets straight from the app but

it also hooks into decentralized exchange aggregators like paraswap which makes sure that you are getting the best prices on your trades without your assets ever leaving your control defy never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all the defy apps that ledger live has and stay tuned as more and more apps come online and if you don't have a ledger hardware wallet what are you even waiting for go to ledger.com grab your ledger download ledger live and get all of your d-apps all in one place

arbitrom is an ethereum scaling solution that is going to completely change how we use defy if you've been using ethereum for the past 12 months you've probably noticed the high gas fees and the slow confirmation times that have been plaguing d5 too many people want to use ethereum and it doesn't have enough capacity for all of us that's where arbitrarum comes in arbitrary is a layer two to ethereum which means arbitrary can increase ethereum's throughput by orders of magnitude at a fraction of the cost of what we are used to paying when interacting with arbitrary you can get the performance of a centralized

exchange while tapping into ethereum's level of security and decentralization this is why people are calling this ethereum's broadband moment where we get to add performance onto decentralization and security if you're a developer and you want to save on gas costs and make an overall better experience for your users go to developer.offchainlabs.com to get started building on arbitrom if you're a user keep an eye out for your favorite defy apps building on arbitrome arbitrary has been working with over 300 teams including ethereum's top infrastructure projects and will be

opening up to all users shortly there are so many apps coming online to arbitrome so you may want to pack your bags in preparation for the great migration to the arbitrary layer 2. to keep up to speed with arbitrary follow them on twitter at arbitrary and join their discord all right guys we are back talking about the hot releases david we have to start here uniswap v3 on optimism we've been waiting for this for months years even and now it's here uniswap on its own layer 2 and you can

actually use it today in fact you used it didn't you used it i've used it and it was positively glorious oh is this a video of you using it this is a video of me using it in real time by the way so this is not sped up and so you can kind of see my mouse like erratic mouse movements as i'm kind of thinking like oh no no you're just excited i'm really excited that's exactly right uh and so i made five swaps on uniswap i traded like 200 of each or 350 of each to die to eat to die to eat to die i did wasn't even trying

to be fast i was just doing it just to do it i made five swaps in under like 30 seconds and that was just me tinkering around right and the cool thing is is like as soon as i hit confirm it's done it's done uh as well okay so the the gas cost to get my ether into optimism cost me about nineteen you got 19 you get across the bridge right across the bridge cost me 19 at 39 gwai i think so great price not too high not too low cost that's the most expensive part the most expensive part uh and then it's each

swap cost me like point zero zero zero zero something eth so like there was like i think there were four zeros before the first number of eth transfer fees on optimism and so swaps were costing me pennies and they were going instantly the cool thing and here's what i i think this is unconfirmed this is my speculation but when i hit the swap button and then confirm on metamask the website ui already showed it as completed right and so the website ui showed it instantly

and i think they are doing a clever little hack where they are saying it's completed even regardless of whether it's actually going to the optimism chain or not but that's the power of optimistic rollups because as soon as you sign the transaction the strength of the settlement insurances allows the website front end to just say that it was completed regardless of whether it checked or not because it has such strong assurances i'm speculating on whether that's true or not maybe they are actually talking to an endpoint and getting a confirmation i guess the transaction was included into blockchain but it happens so fast that i think they

just skipped that step because they have such strong settlement insurances that it actually did get included so they can just say that to you the user yeah your transaction went through you know this is this is super cool and i haven't used optimism yet but it's got to feel like a similar experience like on on polygon which which i have used is it it feels like um a bandwidth upgrade right feels like you're on an old like i don't know 56k modem using these websites and suddenly you get broadband right cable modem and then it's the same thing except it loads 10x

20x faster right i think i think that's a good metaphor but uh polygon feels like the broadband moment and this feels like fiber optics because when you press a button it's done it's already done with polygon you actually have to wait a few seconds you know the other thing i used to be worried about with this is i don't know have you withdrawn anything yet they have a little uh bug on there on their withdrawal bridge uh i so i wasn't actually able to withdraw because if you hit the withdraw button it sent me into this loop where i need to depict the network but once i picked

the wrong network there was a bug in the ui is this a ui bug it's a ui bug yeah i'm not talking about that yeah i i used to be more worried about that like crossing the chasm because you know you paid twenty dollars to get across the bridge low gas prices i mean that could be like 50 that could be 100 that could be impediment but after our conversation with uh arbitrary i realized that this is there's going to be so many other bridges into these roll-ups right the main bridge maybe the most um

trustless bridge censorship resistant bridge will be the bridge that you used but bridges from exchanges are coming right like directly fiat directly eth from an exchange into optimism that's coming um bridges from other chains like a polygon for instance to optimism that's coming we're going to talk about that in the releases so i'm way less worried about this and uh it's super exciting now david correct me if i'm wrong but optimism isn't like generally available they are sort of going through a process of kind of

permissioning and rolling out uh defy apps one at a time is that right that is correct and so uh uniswap coming first because it's one of the easiest things to deploy unisport doesn't really need any other infrastructure we have more to talk about with optimism further on in the roll-up but synthetics is also coming as well as some infrastructure projects as well um before we go on ryan there's actually so much more to talk about uh you talked about how the the bridge uh you know the optimism bridge the optimism bridge is like the bridge of last resort right in the future right like the bridge needs to exist the

optimism bridge needs to exist but that needs to exist so that if other bridges that are going to spin up which we also are going to talk about in this weekly roll up if those don't work you have the option of using the optimism bridge the optimism bridge existing is just to have the option you know the ability to escape under your own terms and then other service providers other bridge operators again who are going to talk about in this weekly roll up are going to offer better experiences better you know better times better speeds perhaps even better fees i don't know uh but

they will be able to compete for you to use their bridge but if they are malicious if they go down if they break whatever you have the option of using the optimism bridge uh with with the slowest withdrawal periods of seven days and uh not super duper fast uh deposit periods of like i think 20 or 30 blocks um so that's what's up with that yeah and there's also a decent amount of uh if actually if you scroll down in this twit uh tweet and and we'll link the tweet in the show notes first off there's a meme uh so there you go uh and then there was

also a decent amount of uh communication uh nick kunkel from the maker dow he talked about how there's a already the the die bridge is getting spin up and running uh maybe it's not showing here but um they're like maker dow already has plans to build like the super fast die bridge uh so there's already plans to like have multiple bridges on and off optimism i just think this is the this is the theme for the first part of releases david you mentioned synthetics they are launching on optimism the full synthetics um platform i believe and that is coming possibly uh the week of

july 26th so this is coming governance so we've got uniswap synthetics will be number two i think um optimism will will go more generally available a little bit later but they are permissioning apps one at a time we also have this david which is getting back to these bridges some of these this is hot protocol so hop protocol has officially announced the hot bridge they're starting with instant usdc transfers between ethereum polygon and xdi so two side chains and

ethereum obviously expand to arbitrary optimism as layer twos and this provides the ability not to you don't even have to go to mainnet you can just move your usdc assets directly from polygon to xdi or in the future directly from polygon to optimism if you want uh and this is super cool and i believe um state channels is actually the technology behind uh hot protocol

the the in the future when we say like oh yeah i used to have all my assets and do all my trading on the l1 that's going to be such a crazy statement in the future there's so much infrastructure getting built out that means we will never actually have to touch the l1 like the l1 the floor is lava like you don't got to touch it like you can just go from side chain to l2 to side chain to l2 all using payment channels we'll never actually touch the l1 anymore no the rollups will be touching it uh yes and this is the thing again i was

worried about that is diminishing over time which is like a couple years ago sort of realized that the entirety of d5 would need to be re-architected on layer two right but it's happening look gnosis gnosis safe is live on layer twos so they deployed on polygon binance smart chain these are not layer twos we can call them side chains die but also arbitrarium coming soon then optimism so that's some key infrastructure that we need we've got coinbase wallet now supporting

polygon so you can actually switch from the ethereum main net to polygon you also see the optimism mainnet there so we're getting wallet support we also have the set protocol launching on polygons so you can buy your dpi and in the future your bed index guys coming soon on the polygon network as well i'm just running through these and infura is now supporting arbitrim2 so the process of d5 being re-architected on layer 2 it's happening like right before our eyes and

um it's going pretty well so far imagine being an eath killer right now i don't know that's all i have to say i can't imagine i cannot imagine you cannot nor would i want to imagine i mean the prices are doing okay though fundamentals and prices are separate things as we know as we know okay uh so where are we now let's talk about this dow jones is launching just launched five crypto indices you know what's weird about this david is so first of all um this is uh the s p dow jones indices so

this is a big deal right like every everywhere here in index quoted for stocks it's like s p 500 or dow jones industrial average now these indices players are coming into uh crypto and they're creating indexes of their own what's super weird is i have like no visibility into what these things are right like clicking around trying to find actually what these indexes are composed of and it's very difficult we couldn't find the answer we spent like 10 minutes trying to figure it out before the show we couldn't find it and what was crazy is just there's such a

contrast between open finance like if you want to peek into what is inside of the dpi that's that's um you know the token set technology that's index co-ops index you can see exactly what it's composed of in real time you could verify that and check that on chain and for these indexes you have to i don't know dig through their methodology call customer support i don't know i don't know either the the categories are a large cap index and then they have another index that

excludes bitcoin and ethereum and then they have another index that excludes bitcoin and ethereum and other large caps so i think it's like different scales of market cap but again just tell us what they are and also the waiting like what's going on here like i guess and co index co-op are leagues ahead of you guys and you guys have been doing this for centuries yeah well it's just they're they're building it on on close finance and traditional finance and that's the constraint there but i guess it is a big deal that um snp continues

to come up with these indices and mainstream cryptos and they're trying they're trying their best they're trying they're doing it work harder work faster guys all right nifty island what what's this so nifty island is a new game a game verse is what they're calling it and it's a place for you to take all your nfts and put them on your island so uh in crypto we all want to get our islands uh now you can go get your island and you can put all your nfts there and so it's a place it's a virtual world a metaverse world where you can physically place all of your

crazy awesome nfts that you want to show off all of your friends uh and i think the the grand vision is much more uh you know grand then that it goes and goes uh goes from there but the idea is that this is a a game a physical or a virtual reality virtual world where you can come and put all of your nfts and so you can go and check out other people's nfts go to other people's islands the the vibe i'm getting is kind of like a second life type of game where you actually like exist in this virtual world and you can go from place to place uh and then you can have your own island with all of your own nfts