📺 ROLLUP: SEC vs Crypto | Evergrande | Robinhood Wallets | Layer 2 Ethereum | Yearn v3 | Coinbase Lend

all right bankless nation you know what time it is it's friday morning david tell it to them if they don't know oh it is the weekly roll up time and like always every single week in crypto is absolutely insane jam packed with news and we are going to cover all of it in the friday bankless weekly roll up two big things to cover this week david i know you're at missouri mainnet i want to ask you about that but gary gensler new sheriff in town this is like the return of the sec so we're going to be talking about everything that the sec is doing maybe some of the

the regulatory flood that's been injected also is snoop dogg an nft connoisseur has he been collecting nfts this entire time we're going to get to that when we get to the news section as well but but i got to ask you how's mainnet man you've been gone for a while these are two back-to-back conferences you did m-con now you're at mainnet how you feeling oh my i am absolutely exhausted i'm gonna take today and tomorrow off just because the conference wrapped up yesterday but it's just been an absolute

treat just meeting everyone in real life again not not everyone for the first time but also a lot of people for the first time uh in real life events are just absolutely irreplaceable um and at some point in time ryan you'll have to go to one in real life are you sure yeah probably we can't just do this in the metaverse the entire time absolutely not all right before we get in guys wanted to mention uh tracer dow they're doing big things in the perpetuals space i actually got a chance to try them out

last week and they wanted us to let the bankless nation know that tracer dow perpetuals are now live now live on arbetrim so it's super exciting this is a way to go 1x 3x long eth or go short you could also do the same thing with bitcoin they have all of these various trading fairs pairs there's also some tracer doubt rewards if you then in turn take that position and stake but this is really cool david because it's like one it's on layer two so you get an opportunity to try arbitrarium and to

you know try out the bridge two these are these are tokenized perpetuals so very little maintenance very little um like requirements in terms of overhead you just have to get into a position and then hold you can hold that for a period of time so really cool new primitive that they are building and of course you are exchanging directly with the pool so it's sort of uniswap like what you need to do that is some usdc some eath to pay for gas bridges across the arbitram and away you go so we will include a link in the show

notes to that really cool primitive yeah the big unlock here is that this position is tokenized which allows it to be composable with the rest of defy so we can now have leveraged tokens interacting with all the other things in d5 uh so that's pretty exciting also be careful with that leverage yeah i was going to say let's get into markets now dave because this is not the week to go uh long i guess unless you were unless you were um you know uh in and unless you're holding for

the long term let's say but uh what happened with bitcoin price this week as i pull up the charts yeah bitcoin started the week at the high high price of forty seven thousand eight hundred dollars and then it fell all the way down to forty thousand five hundred dollars overall down eight percent at the week we are currently clocking in at forty four thousand three hundred dollars we're going to talk about why in just a moment but well let's look at the eighth price uh same story here right we had a definitely a downtrend this week we're not at the very bottom we bounced a

little bit higher but what are we looking like right now yeah start of the week at the high of three thousand six hundred dollars and fell all the way down almost a full thousand dollars to 2750 we are currently at three thousand one hundred and fifty dollars overall down twelve percent on the week maybe maybe a combination of like two sort of scares there one is everything that's going on in china we'll talk about that in a little bit but with evergrand this is a sort of a real estate property company that has gone completely belly up but

the other was some of this sec regulatory fud um you know these could potentially be signals feeding into this some people say hey this is all just noise anyway the market was going to go down regardless of what happened what's your take here yeah if i'm not mistaken equities markets are back up to their high before the the big correction as a result of this china scare so that's that's kind of interesting that equity markets are back to back to normal crypto markets not feeling that same relief that equity markets did and so that kind of lends

itself to the whole gary gensler sccs coming to fight us narrative yeah i think there might be a piece of that so we'll get to some of that later um but what are we looking at at on the ratio what what are things looking like this is the easter bitcoin ratio this week yeah if bitcoin at zero uh point zero seven uh and so uh i would say that's right in the middle of the range that it's established since uh the or better part of this year um not too much to say there other than like looking pretty healthy a little bit up on the week looking healthy for each that is and

total locked in d5 pulse that's taken a plunge as well this week it's it's back from the lows we've got 83 billion dollars locked in defy at this point in time so still that 100 billion mark is eluding us every week we say that but we haven't quite reached it we'll see what's easy it's teasing us how about defy tokens how do they look on the week i'm going to scroll to the week from the month that's definitely down yeah that is a straight line down start of the week at roughly 410 dollars hit the low of 280 dollars so absolutely

punched came back and reclaimed 320 overall down almost 20 on the week dpi d5 tokens down 20 on the week definitely took a beating how about when you take the dpi that's the d5 pulse tokens and create a ratio of that versus eth that looks like we are at the 0.10 mark right now so also maybe maybe flat maybe a little bit down on the week overall that that trend that the downtrend that started in march

continues to point downward so not looking so hot for the dpi eath ratio yeah it's almost like um there was sort of a risk off event given this regulatory fund and maybe that the china the china scare as well that's hitting the more risky assets a little bit harder in crypto let's talk about the bed index this is where we combine all three and see what it looks like you'd expect that to be down though it shouldn't be down as much as dpi uh what are we looking at on the week yeah down 13 on the week started at

around 160 fell to the low low price of 114 dollars so another punch to the gut it then has reclaimed 135 dollars overall like i said down 13 on the week absolutely okay how about layer two uh how much we have locked in layer two this week it's looking like 3.3 billion dollars that's a bit down on the week as well uh any comment here overall it's still very very young for l2s and so i still kind of think that even with the decline in prices we're

going to see uh just increase assets actually moving over and so in combination with more assets moving on to l2s and then those assets also decreasing in value we're kind of flat but i bet you next week we are resuming up on this these are of course uh all true layer two so they don't include proof of stake side side-chains like uh polygon but of course polygon also has a layer two solution called hermes and i thought this was interesting polygon is apparently seeing all-time high numbers of users they just did a 17

increase in daily active users i've not seen the start before but looks like they now have over 200 000 daily active users on the polygon network at this point in time which um i mean that's a lot that's like a you know medium-sized u.s city i suppose now on this polygon side chain and if you look at the growth charts it's just kind of popping stick up only even despite the downturns and he takes there yeah i think this is just the proof of

stakes i chain not the other components of the polygon ecosystem i would like to see the comparables between the proof of stake sidechain and all the other aspects of polygon but yeah overall congratulations to polygon continuing success most of the growth is definitely happening in the side chain the proof of stake side change right now although polygon is trying to expand more into layer two we know that um this is an interesting number as well we've talked so much david about 1559 and the burn it's interesting if it modeled what would have happened and

apparently since eip 1559 was implemented miners of course they have hardware they have energy costs they have expenses they have overhead in the real world so when they receive eth they have to sell it to pay for all of those real world expenses well now because they're getting less issuance effectively because eip 1559 is is is burning it not giving them um that uh that that fee issuance rather than burning it they are um they're they're

not burning it so what is this what is this um tweet telling us david they're saying that instead if we didn't have eip1559 miners would have sold over 400 000 ether but because we do have eip1559 they only have sold 150 000 ether so especially this becomes increasingly important under proof of stake where the value of the ether represents security of the network the less and less we can sell ether the more and more secure we have a proof of stake system and as we all know proof of work is

basically a race to sell the the coin right it's proof of selling and selling reduces security and we like security yeah absolutely and i think this all feeds into the east supply shock that we're going to see this is beginning with eip 1559 but now pretty soon when the merge happens so maybe call it q1 of 2020 then we get a 90 decrease in issuance as well and uh i think um i think that's going to be a narrative we talk a lot about in the weeks to come

let's get back to sort of the main macro you know i guess conversation here which is evergrand this is sahil bloom who wrote a fantastic thread on what is going on with evergrand in the china story we don't usually cover things outside of crypto unless they're big enough unless they're macro enough to actually affect crypto and i think in this case david they actually did affect crypto um so sahil goes through a breakdown of the story but the tldr is

evergrand is a fortune 500 real estate developer in in china um at its core it is a home building business so it had 1300 projects across 280 chinese citizens uh it's also a developer and what it did it was growing uh fantastically spectacularly sort of a you know chinese real estate darling but it funded this growth through massive amounts of debt i feel like the u.s banking and real estate industry has

heard this story before as well here it is playing out in china what ended up happening is uh you know billionaires were created on the way up the debt burden grew and now the entire thing is crumbling the entire thing is uh dissolving um the debt is kind of weighing evergrand down and they're not able to pay their ever-growing obligations so what's happening i believe is the chinese government is looking to bail

them out but i think there's a global macro scare about a potential chinese real estate kind of bank debt crisis that's that's catalyzed by this might not be just evergrand might be some other chinese companies and david we're actually going to have the author of this tweet thread sahil bloom who's a financial educator an investor in the space i think has some great takes we're going to have him on the podcast on tuesday to go into this story in a bit more depth maybe ask some ques crypto questions as well

china has definitely been increasing its relevance with the rest of the world especially in the last few years or so and so i think it's definitely an important lesson to learn about how much can chinese markets impact the rest of the world fun fact china doesn't like it when uh native chinese people invest in america there's definitely capital controls capital restrictions but they really really like it when u.s investors invest in china because it's kind of like a way to kind of have a hold on the united states markets so china is very

very privy to this and we are uh becoming more and more attached to the hip with china as time goes on so these are some of the questions that we're going to ask the heel yeah absolutely guys we will be back with the releases of the week and of course the news of the week going to be talking gensler going to be talking snoop dogg 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

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never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all the d5 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 arbitrum 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

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to keep up to speed with arbitrary follow them on twitter at arbitrum and join their discord guys we are back with the releases of the week let's start with urine which is a fantastic d5 product we talked about many times on bank list apparently they have just released their v3 to users i think this is mainly an innovation maybe a facelift on their user interface which is like famously not been amazing and this is an upgrade to that user interface

yeah urine has definitely had more interfaces that kind of make it seem like they're not taking things seriously a lot of uh colors and random placements yeah it's playful but this looks a lot more like it's optimized for um you know financial financially minded people it looks like it's taking itself a lot more serious uh seriously now so uh congrats to the urine team on the fantastic facelift absolutely let's talk about the second release uh coinvise v3 this is a i believe it social token

issuance and maybe administration platform i don't know a ton of details about this david but what's the high level take yeah overall there's uh growing infrastructure for social tokens uh and that what that's what coin advise is doing is trying to make it easier for people that have communities to manage their community using the token uh and so i think as more and more infrastructure like this gets built out we're only going to see more and more social tokens and that in my mind is a very very untapped pool of potential because

influencers like to influence and if they can get a tool to help them influence even more they're just going to absolutely adopt that new technology let me ask you have you changed your mind on social tokens there was a time where you were super bearish on social tokens i was bearish on personal tokens um social tokens i think are different but the lines between those two things are blurred why why were you bearish and what makes you more less bearish now and more i guess um embracing of them or enthusiastic about them yeah i just was getting flashbacks to the ico days where

like people people are actually raising money on personal tokens and i did not think that as an industry we were ready for that yet people saying like hey doing literally a personal token sale like not unlike what we saw it during the ico craze like like an ipo except that the p is personal initially yeah that scared me uh and so i uh voiced my concerns about that uh and if hopefully that kind of staved off that whole phenomenon until we were actually ready for it uh and now i think we are

closer and closer to be after being ready for it and part a big part of that story is actually having the infrastructure the social tokens are are much different i mean there's generally no no uh initial raise so there's no selling to the public right um but you are kind of coordinating a community and giving them rewards so it's sort of only upside uh are there any other major differences in your mind is it it's like some of the early personal tokens were very much tied to like you got to like um tell someone what to do right like issue them commands or some there's also

a portion of their revenue upside yeah it was very agreements right mm-hmm yeah i think that a very important differentiator is that because social tokens generally are air dropped to communities that already exist and so they're meant to bolster a community whereas some personal tokens i saw were trying to because of the token existing in the first place it would make a community i thought that was just like the putting the car before the horse well we're starting to get some infrastructure that's the story behind coin buys the ability to mint airdrop lock and reward a community members this is also cool

david i feel like we predicted this for a while i remember saying this in the early days of bank list that you know we were provided bankos is providing education that soon they'll teach in business schools and here's uh berkeley university as well as berkeley university of california as well as university of illinois stanford imperial college of london they have a decentralized finance class now i'm not sure if this is um actually a free class it seems like some of the material at least is i don't know if it's you know

it provides a credit but i went through some of the material david and it's actually like pretty impressive in fact i saw some sort of bankless content in some of the slides not directly our content but like um let me show you let me show you something i think you'll recognize if i could find it here uh yeah oh yep yep so like these slides uh you know bankless and d5 making its way into university campuses which is um yeah pretty cool to see i think we saw a little bit of that last year i mean i

know there have been some general cryptocurrency courses over the years like what is blockchain this sort of thing but this is a defy course specifically and uh berkeley said they needed to offer this because there was overwhelming demand from the student population like no kidding i mean if i was a college kid and you were teaching me about d5 and i unlocked this entire new world like this would be my favorite class like absolutely not any others now i don't know university campuses aren't necessarily the best way to learn crypto

like you learn crypto and you learn d5 by doing it by plugging in by getting involved by listening to resources like bank lists but i am super excited that they are starting to teach this because i feel like it's been totally missed for a while yeah no 100 percent um i would not miss a single class if i was attending that at that university are you implying that you used to miss some of your classes david at the sun no no never never never all right sirion this is cool um i've seen some people do this with their nfts

that is put their nft on like an apple watch face right because you could do that you can customize your apple watch faces uh this is zurion providing a way for you to do that like automatically not sure exactly how it works we'll include a link in the show notes but i think if you have an nft that you want to display you have an apple watch you can tap into xerion and just get that set up so you're displaying your uh nft on your apple watch um do you have an apple watch david i used to but i returned it because i

just didn't find myself actually using it all that much it's just like a lot of noise yeah yeah it's just like i i don't need my wrist to vibrate like i don't need to be that hooked into a chip all the time but i do think that there is a very missing world about flexing nfts in real life right as as in with actual like you know things that you wear and so this is i think part of that story yeah it totally is i think there's a there's a story of like integrating nfts and web3 and crypto into the real world and now we're putting it on devices i

wouldn't be surprised to see apple natively support this at some point in time like their own apple nft like inft or something who knows what they'll be branded as um all right robin hood is rolling out wallet uh crypto wallets and and transfers actually the ability to transfer from robin hood to a crypto wallet this is something we've criticized robinhood for for a while like it's great you're onboarding people into uh crypto assets but these are all like

robin hood crypto assets right right users don't retain any custody of their assets they can't even withdraw it from the platform so this is robin hood allowing users to withdraw their doge withdraw their eth withdraw their bitcoin withdraw whatever they purchase on on robinhood to real self-custodial crypto uh which is a good step i i feel like it's somewhat like of a baby step it's almost like reticent to like clap for this but like also it's cool i mean robin hood has an absolutely massive

demographic that um is not generally crypto native and this isn't a way to onboard them into more crypto native tools yeah no this is a very important step for robin hood to even like stay competitive with the rest of the crypto world they needed to be able to onboard actual assets allow users to actually have a wallet it's a very it's a very important thing to actually learn how to manage a wallet and a private key uh and like you said like robin hood has so much surface area with so many different people and so i applaud them for making finally

making this move and robin hood like don't stop keep going like do more stuff yeah i heard recently like um 40 of all robin hood crypto revenue is from doge just alone right like robin hood users love doge yeah i bet you they actually don't care about actually self-custodying their doge yeah i mean i guess we'll see this is this is super cool this is great for decentralization that robin hood is adding this they're feeling kind of market pressure and maybe user pressure to add this we'll see how many people end up using it but it's nothing but

good news i think for the crypto industry guys i hope robin hood knows how much how many support requests they're about to get from people who sent their money to the wrong spot they're about to get punched with that for sure that's true all right two more quick things uh one is bankless nation bankless dow season two launch party that is happening on october 8 2021 at 11 a.m that is going to be live on twitter spaces if you're plugged into twitter you can access that this is all about what the dow is cooking up for uh

season two um i i paid attention at a high level of this i'm looking forward to digging in to all of the season two plans but like i always feel like you know hey season two of the office was like the best you know that's when the show really hit its stride i feel like season one for a dow this is a period of time i think for for bankless doubts like four or five months this next season will be another i think three months um this is sort of a period of time where where a dow sprints on various activities but in season one they were really just forming and now they're

starting to hit their stride figuring out what they're supposed to do what their purpose in the world is and uh they're executing on it so if you're interested in joining for to see what's going on in adao to see what's going on in bankless dao go check that out we'll include a link in the show notes you can rsvp and put it on your calendar yeah season one was all about all right we have a down now what do we do with it and now season two is like okay like we've got the answers let's actually start to to build some stuff so nice job dao speaking of which one of the answers

is apparel i think they're going to be doubling down on apparel this is some awesome like collegiate apparel that the bankless dow is uh dishing out what's the story on this david yeah i was recently at mcon which was metacartel's uh convention in denver and meta factory which is the uh spin-off out of meta cartel that does all of the apparel they they in collaboration with the dao do make the dao's apparel right and the amount of bankless like swag i saw at

mcon was absolutely insane uh it was like at least 50 of like the meta meta factory's apparel that i saw there was like bankless dow apparel so that was pretty cool um this uh this drop right now if you guys are listening to this on friday you you have to get it if you want it you have to get it today because the sale ends tonight at 11 59 uh est so if you're listening to this on friday you have only a few hours left to snag this drop and don't forget when you check out make sure you put in an eth address so you receive some robot tokens they

distribute that every once in a while it's kind of a loyalty program for people that purchase from meta factory all right let's get to the raises of the week there are some absolutely massive ones uh the first is from so rare we talked about so rare often uh they just raised 680 million dollars and this is a large number okay the valuation of so rare this once again silver is an nft fantasy football in the u.s we'll call it soccer league 4.3 billion dollars is the valuation of

this series b investment absolutely incredible growth story of course all of this is happening on layer 2 ethereum which is super cool to see as well so this is zk roll up ethereum um i don't i don't know what they're going to do with all of that money quite honestly but i have to imagine there's some massive growth growth plans that they they intend to massively scale maybe to other sports what's your take on this yeah 680 million dollars is an absolutely monster raise and i could only imagine that at least some of that

is going to go to marketing uh and so i think we're going to see a lot of uh not not just over but also definitely sober start to market their products in more traditional means like maybe straight up tv commercials during the commercials behind the actual games that are being played right i mean where where do people who care about football where do they go they watch tv uh so i bet you we see some silver commercials coming in uh shortly what i love about this is all of this uh like this growth budget goes into

bringing more people into the crypto economy bringing more people into the ethereum economy and sort of draws all of the normies right no like maybe you don't care about crypto you don't care about bank list you don't care about anything we're talking about in the show you just want a hot nft of your favorite like football player okay and you see a commercial you're watching you're watching a game you see a commercial you hit click and before you know it you're creating an eth wallet right like how crazy is that uh so congrats on so rare for that raise another big raise

bitclout so this is a decentralized social network um on the blockchain i believe this is this is not an ethereum this is sort of a fork of some sort of proof of work chain they just raised 200 million dollars from a16z and a few others i've actually used bitcloud um like once i think to collect like the big clout uh tokens um i think they they ported a whole bunch of crypto people's accounts from twitter onto bitcloud but what's your

take here is this sort of the decentralized social network future do you think this is that this has a future or um what about it yeah so this is actually not not big cloud this is the big cloud creator who apparently the story is that he used big cloud as kind of like a proof of concept or you know or something just to prove out that this actually this new product which is apparently called tiso for a decentralized social um uh and so apparently it was like the alpha for

this which is now receiving 200 million dollars from a16z and others uh why a proof of work blockchain i have no clue um but we do know that people like to invest a lot of money into layer ones and so maybe it was a strategy to optimize for raising funds um but again like i don't know why you would build it as an actual blockchain that's what the app layer is for um i'm a little bit confused on that yeah it'll be interesting to see this one play out i i'm kind of undecided whether this is like um

you know a great experiment or like genius or whether it's sort of like hey everything's pumping i better raise some capital now the last um the the last funding that big clout founder received uh nader was from basis if you recall that was an algorithmic stable coin in like the 2017-2018 era and um that didn't work out for many reasons some of which were regulatory and they the team ended up refunding all of the investors