📺 ROLLUP: Uniswap V3 | BTC in Bank Accounts | Bankless DAO | ETH All Time High

bankless nation it is the first week of may david hoffman what time is it it is roll-up time ryan we are rolling up the first week of may the crypto industry moves so incredibly fast that we need to dedicate a whole entire episode to making sure that you can keep up with it and so we are going through all the things that happened in the last week of crypto markets releases news takes what we're excited about ending with the meme of the week stay tuned for the meme of the week it's a good one we're gonna try to jam-pack the entire week of crypto into

your friday morning enjoy this with a cup of coffee david we've had a busy week man i heard a dow launched uh i did it did what what doubt yes a very important doubt oh tell me more it's it's called the bankless doubt and you should be a part of it i think i think i will i think i like that doubt you should be a part of the bankless movement david how do i become a part of the bankless movement ryan dude we're gonna get to all that actually so i think we have a section for bankless doubt when we talk about releases i think we have a section where

we talk about news i think we have a section when we talk about what we're excited about because it has definitely been an exciting week um so if you haven't heard bankless has launched a dow basically uh through a genesis team and uh it is going like gangbusters like i i can't even keep up with the amount of activity that's going on some exciting stuff uh brewing in the bankless community and the bankless movement yeah inside the bankless dow discord it really just feels like a shaken snow globe and every everything

is start and it's chaotic and crazy and everyone's really excited everyone's buzzing and like we're starting to see the first like little drifts of settlement as to people are finding their niches people are self-organizing emergent organization a lot of thoughts are going around as to how dows work nowadays especially a media and culture doubt and there's nothing we didn't actually do too much on chain stuff there's no smart contracts there's we don't have a protocol we have an organization of people and that's something that is unique

it's completely zero completely people and uh just like a shaken snow globe it's pretty beautiful yeah like seeing all of it come together all right man let's uh we'll talk about the dow many times throughout this episode but let's get to the markets first david that's what the people are here for they want to know what the bitcoin price is right now what is the bitcoin price bitcoin price 55 720 at the time of recording bitcoin just hovering between 50 and 60 000 would be the range that i would call it at uh just a very long consolidation period

for bitcoin so we're up on the week but still like you know it's it's it's not hitting it's it's bull highs as it was previously uh what does that mean for ether ether quite the opposite quite the opposite story ether has hit a new high act actually of the day of recording at three thousand six hundred dollars it is currently at three thousand four hundred and sixty dollars at the time of recording uh and it's really done a fantastic job of not dumping which is absolutely crazy either started the week

as low as two thousand seven hundred dollars and then went all the way up to three thousand 3 600 and a lot of people in my circles and the people i talked to were like all right this has got to be like too steep too fast too steep it's gonna dump and then it continued to keep on going up so i would call this precariously high but if we want to call this a quote-unquote new financial paradigm where people are were under exposed to ether and now they are trying to snatch back what ether they could because they were underexposed to it now realizing that perhaps this is actually going to be a

new global store of value then it kind of makes sense that you know people are fomoing into ether not just individuals but institutions and there's been a lot of conversation uh this week especially that this extra basically insane buying volume and buying pressure for ether has been coming from institutions rotating into ether and and understanding and accepting ether as a macro store value asset yeah i think that's the big story in markets this week to be honest david and um what's interesting about what you

said is like people who are are worried about the price of ether they'll point to bitcoin and say well can ether sustain this level of price uh and continue to grow while bitcoin is is stagnant because that hasn't been the pre the case previously except david if you flash back to 2017 when this was happening from march 2017 on for to to most of the rest of the bull run was ether it was story of ether outpacing bitcoin uh maybe we are repeating 2017.

again we've talked about this on bank list we talked about it last year we even talked about it like uh at their earliest episodes of like we think that 2021 is going to be somewhat of a repeat of 2017 and maybe that's what's going on but you mentioned institutions this is ash he works at a crypto hedge fund institution this is a tweet thread he put together about 14 reasons eth is a higher upside treasury reserve asset interesting term treasury reserve asset versus bitcoin

david i think we should do all 14 but we got to be quick man yeah there's a lot in here yeah i think before we get started because ryan i know you're going to take number one the the interesting thing to know is he's calling it a treasury reserve asset that's basically what i was saying when i was saying a store about macro store of value different words same same but the important note is higher upside higher upside so keep that in your brain as we go through these ryan you want to kick us off yeah man let's do every other okay so i'll do one so heath is a proven store of value having an appreci having appreciated 85

000 since inception five years ago six years ago in 2015. eighty-five thousand percent since inception proof that the numbers go up absolutely crazy yeah do two for us two uh eth is only 25 of the market of bitcoin uh ether is uh or bitcoin is one trillion dollars versus ether 317 billion dollars so there's that upside right like if you believe that ether is equivalent in bitcoin store of value nature you would see ether being only uh

25 percent of what bitcoin's market cap is eath staked is now going up each staked now exceeds nine billion dollars so that is eth locked in staking that is 3.26 of each supply and going up if justin drake ultrasound money thesis pans out that's number three number four scarcity is here eip1559 effectively cancels out eth inflation rate which really puts ether as a macro store of value treasury reserve asset it

cancels out each inflation rate of four percent um so we ip1559 no inflation there you go another ultrasound money theme 22.5 percent of eth this is number five supplies e-liquid locked up in smart contracts this is eth being used as economic bandwidth another bankless theme uh for d5 and ash says number will only grow up go up over time as use cases accelerated we're certainly seeing defy use cases accelerating what's number six david six whale wallets are

growing wallets that hold more than 10 000 ether right this is actually people largely institutions i would say who are actually putting more and more ether into their treasury into their balance sheets so people with big money are buying more ether we report on this number seven every week 66 billion in us dollars locked in d5 protocols that is aggregate of everything that's locked in d5 protocols and that's 66 billion already growing at a rate of 40 per month absolutely crazy

grayscale at number eight grayscale holds roughly three percent of all ether supply which quote unquote won't be sold anytime soon and if you are a lazy institution and you don't want to set up the infrastructure for just uh you know more sophisticated holding ether you just go to grayscale right so that three percent that's not just grayscale as an institution that's other institutions using grayscale to access ether and put it on the balance sheet won't be sold because it can't be sold as well the way grayscale's product works number nine ethereum has over 2

000 active monthly developers compared to bitcoin at 360. development leads to more apps more innovation more disruption look that developer score is only measuring ethereum specific protocol libraries so it doesn't even include all of the developers that are building d5 protocols on top of ethereum and ethereum is still leading the charge there what's number 10 david number 10 derivatives have gone from 50 million in april of 2020 to 3 billion total open interest institution adoption signal

institutions love derivatives they love options and that is really how they elect to get exposure to assets like ether and so not only are we seeing a maturing in the derivatives market but we're seeing adoption of it which means that institutions are using it this follows number 10. this is number 11. each futures positions have seen a 20x increase now stood at 7.5 billion in open interest another institutional adoption signal 12 24 hour eat options trading volume has gone from 1 million

in may 2019 to exceed a 1 billion dollars in daily open interest again same same thing as before this is what institutions use looks like they're using it number 13 etfs in canada full stop etfs in canada they're coming to the us soon right that's the tweet [Laughter] number 14 eth is starting to gain and decorate with bitcoin and this will continue as developer activity rises and more use cases are created that decoration from bitcoin is key to actually people

understanding it to be a uniquely different and compelling macro store value asset ash summarizes it with a price prediction eth currently range from ten thousand he says is inevitable hundred thousand best case scenario hundred thousand absolutely crazy numbers here and he says there's more incentive to hold ethan bitcoin due to ethereum's growing use cases again ash works at a crypto hedge fund he's been listening to bangladesh for a while i think he's tuned into the narrative here and that is the narrative being presented to

institutions right now so if you're confused by why eath price go up while bitcoin price stay flat take a look at this thread re-listen to the last 14 points we make all right david let's go to the d5 token watch d5 pulse index where are we right now yeah dpi currently priced at 560 dollars hit an all-time high of 584 dollars is that is that right that's not right no the all-time high was uh earlier this week at 610 or so and it

currently took a little bit of a tumble from that high down to 560 dollars but overall dollar price performance of d5 dpi doing great doing great going up not as fast as etho tell us the story in our dpi slaughter dpi being slaughtered on the eth ratio it had a valiant effort at point two it had another about valiant effort at point one eight but it ultimately has fallen down to point one six uh ether per dpi uh and so defy assets getting

just absolutely demolished in ether terms as you would expect are you happy david i mean yes it was eat's turn it was its turn it has never been eat's turn since like literally december of 2017. it's it's it patiently waited its turn and you know it's it eats the moment right now um you know i'm eyeing the the e to dpi trade like i'm i'm eyeing it it looks tempting like dpi is going to reverse at some point in time it's just a matter of like do what knife at what

point do you want to catch the falling knife you think we're going to have another d5 summer but we might have an eath summer first is kind of the point right and it's hard to trade we've already had an east spring two seasons and eath in a row you would spoil me sir we'll see how it plays out all right uh let's talk about stable coin supply because these are hitting new all-time highs too the first stat we have is usdc which is coinbase circle they hit 15 billion so 15 billion on trade on chain

in usdc another follow-up to that is is tether actually hit on chain volumes of one trillion the one trillion mark for the first time stable coin adoption is just going up and to the right yeah and it just makes sense all the times that ryan and i talk about how like terrible the banking ux ui is obviously stable coins are going up and to the right uh congrats to teller one trillion dollars in a one year period that's pretty phenomenal guess what man i had to wire funds from a wells fargo literally from a wells fargo account uh

this week right so had to schedule an appointment with the banker had to go there in person appointments right the banker asked all sorts of questions where's the money going like what's happening all of this uh and i was just like oh my god you guys this is a fax machine you guys are so dead wait did you you're operating a fax machine and we have the internet here what was it like small talks like oh where's your money going or was it like please fill out this form it was just it was a little bit like oh

so where is the money going and like like just weird questions that's right he asked about money marginally personal questions yeah and it was also like a you know it was a nice person good conversation i guess but the fact that you have to show up in person to actually like make that transaction schedule something with like the banker right jeez friction friction that could be done in two seconds my my roommate he was gonna transfer me some some money and for for some reason we just did it in cash because he's my roommate just

handed it to me so i took the cash real cash paper dollars paper dollars like literally the worst form of cash right so i took that to the bank and i just private though i gave it to the well not when i come to the bank with it i give it to that teller and she was like oh like did you make a big sale and i'm like don't ask don't ask about that that's not your information what are you doing yeah no yeah exactly cease it incredibly ethereum doesn't ask why it doesn't ask exactly all right david let's let's get to this while we're on markets man doge is pumping so like everyone

many friends that that i know that they'll text me about doge price these days right so like what's going on why and why why so sad because we live in a goddamn meme culture that's what's going on yeah deep's eye and like it really is but we love memes don't we good memes what's your problem with their they're good games yeah i mean why is this a bad meme it's the people's money right it's soch god god damn it elon what look what you've done elon the thing is like we are doing our best to promote the

real values that this industry has to offer and then doze just eats itself okay wait goddamn moon joe weisenthal do you know him bloomberg um commentary on finance has lots to say about crypto of course um he says that okay david doge is no different than bitcoin it's just a meme buddy it's a community that says it's going up hold it as a store of value it is money it's no different than bitcoin what's your take on that yeah

like the thing is like doges is it's a it's a funny meme but bitcoin is a meme and the same as like the us dollar is also a meme like it's just something that you have in your head and you ascribe value to it it's like the different when we talk about memes we're just talking about narratives right the bitcoin narrative is serious bitcoin narrative is is uh you know uh personal sovereignty with money no money printer uh you know power by the people for the people and doge is like haha cute dog number go up like the the narrative behind the meme is important

like the doge meme is very like nihilist like you know and like i'm all i'm all one to say like the system but i want to the system with a better system doge is like you know what let's actually just burn everything because nothing matters anymore and let's pump it to the moon like you know i think of it as it's look it's i feel like it's a low conviction meme like it's a meme but it's a low conviction yeah i don't think there's good you're not going to get holders of last resort resort in dodge they're here for the pump they're going they're going to be gone and by the way have you looked at doge distribution

near the top it's awful it's awesome it's terrible right uh yeah the reason why doge makes outside outside news is because like i bet you a higher much higher percentage of doses lost than bitcoin because why would you keep on holding on to your dose right you would just lose it and so that's why it goes like from one penny to 60 cents in under like three months because there's no supply there's no supply point there garyvee just said that he had some doge and he lost it because he didn't know what it was like yeah he just said that on the podcast

anyway doge we'll we'll get back to you when we get to the elon snl news but for now we want to tell you about the fantastic 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 unit swap 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 una swap dow apply for a grant to uniswap just look at the size of the uniswap treasury it's almost three 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 uniswop 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

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free 15 bitcoin bonus check them out at gemiini.com go bankless all right guys we are back with the hot releases of the week david we have to start here let's start with the unicorn man uniswap v3 you heard about it with our podcast with with hayden adams he finally came on david he told us about it and now it is here may 5th it arrived uh talk about it what launched mainnet yeah unit swap v3 finally here and so there is now this a little bit of a tug

of war between unisov2 and uniswap v3 right unit swap v3 is not the simple transition that unit swap v1 to v2 was uh unispot v3 has much more dials much more you know switches much more things that need to be tinkered with and people need to learn how to use it uh and so um that that's what's here today and i actually think the really cool thing is right there ryan tweet number four in this tweet thread is that if you guys remember when you deposit liquidity into uniswap it is a uh it's a specific band of price action right so you are only

depositing for a very narrow band of price action or or a wide band it's up to you but the point is it's unique to you and it's unique to what you you chose and so when you make a unique deposit in providing liquidity you get an nft back and the cool thing is they've actually made cool little gif uh gifts for the nfts so i would imagine that you can like see your nfc your nft lp deposit into unit swap v3 on something like openc or any or other nft explorer it's going to show up next to your bankless badge or any

other nfts that you own so that's kind of cool which is actually kind of really bridging the world of defy to nfts because they're kind of two separate worlds and and now they're it's getting a little closer it's kind of fun look and that's an incentive to open up a uh a pool so kind of neat that way too david let's go to the high level i thought this tweet from hayden was actually pretty good he said it's been 24 hours since the launch of uniswap v3 and here are some stats v3s 24 hour volume was already 150 million they've got 300 million total

locked and volume by efficiency which is a really interesting score is 50 um and he compares that to uniswap v2 and the bottom line is in its first day v3 has already seen twice the volume that v2 not v1 v2 saw in its first month so again kind of we're on this exponential curve of growth the v3 is like 2x v2 volume in its first month and it's doing that in the first day pretty crazy volumes

already coming out of unit swap v3 yeah there were some complaints from people who are just trying to use unit swap v3 that some things were broken some things weren't weren't working and as you can see there's a comment right below that hayden's tweet saying oof it cost me 150 bucks to provide liquidity providing liquidity that that transaction is just more intensive right and so hopping in and out of liquidity pools it's going to be more complex now that it's an nft there were a few other things that the migration from v2 to v3 wouldn't work with a ledger

just for some developer coding reasons that's over my head um but there is going to be transition friction because like i said this is not just like an upgraded an upgraded v1 to v2 this is a brand new amm system uh and so that the porting of v2 to e3 is going to have some friction there's going to be some some learning curve pains but i think in the long term it's going to it's going to all work out yeah absolutely some like things from the beginning and i i uh tweeted this out like hey who's tried it what what's your experience so far with v3 and

people mentioned some ui bugs the analytics aren't quite working uh there's an issue with connecting a hardware wallet to meta mask and using an issue with a signature that is probably not resolved as you guys are listening to this so some ui friction but like overall man that's not stopping the volume right we should you know what we should unbox this ourselves so i haven't spent much time here david myself using this uh and i'm gonna pull up uniswap v3 and actually see what's what's different about it so it looks like i've got the same swap interface slightly different but pretty much the

same yep looks really simple you know it's kind of that google level simplicity of the interface and let's say i want to trade um you know let's say a tenth of an eighth for some dye uh what am i doing here yeah see that that slit the dice slippage a lot a decent amount of slippage and price movement yeah right um i i mean that might it's 24 hours old i'm sure it's going to get worked out again liquidity providers are going to have to learn how to provide liquidity uh and so i think people are being methodical and slow about that look at

this button though it says get a better price on v2 so i guess you can get a better price on v2 it you know button pops up to show you that because this is a lot of slippage almost a full percent slippage um price movement for that action but the the big thing that v2 was supposed to provide was sort of um you know stable coin to stable coin trades in the way that that curve does with very low slippage so here's usdc to die and the slippage is you know fairly low looks like it might be a better price for a hundred usdc

um to die than uniswap v2 uh you know the the price impact is point two percent zero point two percent i should say i wonder what happens if we like scale this up yeah see that's where that's where it gets pretty cool i'm pretty sure yeah so you're already up to a thousand dollars and it only got a little bit more uh illiquid yeah and so you oh now we're up to ten thousand dollars and it's actually just the same amount of uh illiquidity as uh one less uh zero right and so actually now we're up to a hundred thousand dollars and it's still point four point three four

percent uh and so it's actually not getting any more hey you keep adding zeros it's actually not getting any more illiquid and at some point you're you have to max it out because you're going to just completely wipe a a market maker from one it's starting to max up max out 10 million trade ten million ten million dollar trade three percent what's one what's uh one million dollars how much slippage uh let me count my zeros here one two three four five six okay one million dollars gets you point four percent in slippage on usdc to die if you add in

one more zero ryan if you go to 10 million dollars it gets to be 3.5 percent slippage if you add one more zero that's all of it that might have nine 90 slippers that's all of it okay so if anyone was interested in trading 10 million dollars of usdc to get a better price on bt you might get a better price on v2 but overall that's that is the power of uniswap v3 right it historically was terrible for uh stablecoin transfers because uh it would put the same amount of liquidity across the full spectrum but now liquidity

providers like this is the easiest most basic way to use v3 in the upgraded fashion is only providing liquidity against a very narrow band of prices which is particularly well suited to like uh price assets it's super cool dude i'm gonna look at um liquidity here so i can create a new position it looks like yep um what if i want to or i can migrate v2 liquidity maybe i'll put a new position here is this me putting it creating a whole new pair yeah so yeah uh yes well you would have to select the pair but i think the really just the adding

liquidity page really illustrates all the different things about uh unit swap v3 right so it lets you select the three different feed tiers for the die each pair yeah i think they're 3.3 percent that's the unit swap v2 and v1 uh you know default fee is 0.3 percent but you can add you can pick different ones and there will be liquidity in each of these different pairs but one of these uh one of the fee tiers is going to become the shelling point for every single trading pair uh and then you would set your price range right and so you would pick where the

the band of price that you would want to to uh supply to so ryan is providing uh 2000 for die to eat between 2991 to three yeah it's got a little clunky interface right over overwrite all that and go back to three thousand and uh four thousand three thousand keeps changing it up yeah it keeps changing yeah it's a clunky little ui stuff it's close though it's very close close very close so if i wanna play that that's the difference if if i want to provide a price range band for my liquidity i couldn't do that you need to

swap v2 i had to provide for the entire spectrum but now i could set a spectrum of somewhere between three thousand dollars and four thousand dollars where i'm providing that liquidity right that's the difference yep exactly interesting all right very cool uh let's let's take a look at how it's doing so far i guess at the aggregate level and i think this is where uh uniswap analytics come in so you took these screenshots david on the left we have v2 screenshot from v2 on the right we have v3 what's what are we looking at the differences in terms of liquidity or total locked

value and also a 24-hour volume here well obviously there's just no comparison right because vmswav v2 is many years old and it has all of all of unit swaps money basically um swap v3 is very very young only 24 hours old so people are still migrating liquidity over but i think that for understanding the ui what's important to know is on the left side where we see unit swap v2 we have liquidity that's the the name of you know that they've bestowed upon how all the money all the value of all deposits into unit swap v2

on the right side we have tvl and the reason why they've changed this wording from liquidity to tvl is that in unit swap v2 you deposit like a hundred dollars worth of eth and 100 uscc into the uscc eth pool and that gets spread evenly across the whole entire entire trading pair so that's all liquidity it's all liquidity right but on unit swap v3 you have to specify uh where you are putting the money and and and so it's not all liquidity it's it's tvl so a slight

change in jargon uh but i think it's a more accurate and more precise right um and then on the other side kind of the the the under the point i'll underline here is you can get more liquidity for less tvl that's the efficiency factor yes yeah i forgot about that part right so tvl is is the same thing in unison v3 as liquidity is in v2 but it with tvl and unix v3 like the same amount of tvl would actually in theory perhaps give way more liquidity

that's the whole point of unit swap v3 is that your dollar goes further in liquidity liquidity terms and you swap v3 all right very cool so what's this uh second chart we're showing or this list i guess yeah second chart uh again on the left it's unique swap v2 on the right is unispot v3 and we're just looking at the different pools right so we have the fei ethe and fey tribe uh you know swap v2 pools is the largest pools in unison uh v2 and then goes uh uscc eth and then the other common pairs at ethan usct and uni eth and then on the

on the right we have the uniswap v3 pools and what's also added here is that each one you see that 0.3 percent fee tier that's something that's going to be new in unison v3 because uh oh there's the you could you do see the one of die to usdc which is a stable coin to stable coin and also uscc to usdt and those are 0.5 which makes sense lower lower fees lower fees for stablecoin pairs right and so this is new in unison v3 is and so these pools are going to be also um so there's not not only is there a