📺 ROLLUP: Visa on ETH | SNL NFT Skit | PayPal Crypto | Bankless & Wells Fargo

thankless nation it is the first week of april this is april 1st as well david how are you doing today i'm doing absolutely fantastic trying to sift through the sea of both real and fake news trying to put this uh weekly roll up agenda together april 1st is a harder time in crypto than in any other industry uh and for those that aren't have this is their first april first in crypto congratulations we take this seriously in in in the crypto world uh i remember

uh one of uh to this day vitalik released a proposal to hard cap the east supply on april 1st and no one knows if it was an april fool's joke or not like to this day uh so it's a special day in the world of crypto oh bankless has certainly carried on that tradition more when we wait we did an april stroke maybe i mean no it's up to the listener to decide whether it was an april fool's soup or not anyway guys you're listening to this on a friday morning we hope you are enjoying this with your morning routine

with your morning copy coffee we're hitting the market releases news takes and then ending with what we're both excited about um the schedule this comes out every friday morning we release on youtube we also release it on the podcast all right david let's talk about bitcoin king bitcoin how's bitcoin hanging in this week almost above sixty thousand dollars once again fifty eight thousand nine hundred and forty dollars fluctuating in that very high fifty thousand dollar range um and hopefully we are breaking

through all-time highs with bitcoin sometime soon traders are getting bullish the market is getting bullish uh but also bitcoin not being the leader this last week that is an interesting story as well all right well tell me who the leader is actually i'm going to flip to it is ether the leader david i think eth is the leader still also not at all-time highs but closer to previous all-time highs than bitcoin ether coming in hot at 968 1960 a strong show of force from the the low

low price of sixteen hundred dollars that we started uh this week at um for the the entire uh this last week it's been up and to the right uh sentiment really brewing positively for ether eth2k my friend i'm excited to get back out the party hats and celebrate another 2000 milestone we'll see if it hits this maybe it will have hit this by the time you listen to this tomorrow morning david let's move to total locked value in d5 looks like uh i'm zoomed out to

the to the 90 day here but um what it's been doing recently it's kind of flat hanging at 44 billion or so yeah and again really kind of just looking like the eth chart especially as ether price is going up and more ether is in defy uh it's it's basically just an extension of the eth chart as it kind of has been all right let's talk dpi and i hope you tell us whether it's defy season or not or maybe we're in this in-between world what is dpi doing this week yeah dpi 430 dollars at the time of recording i

believe it's down versus ether over the week uh and that's always to me the more interesting metric uh dpi versus eth but dpi versus dollars doing a strong show of force uh not as high as its previous all-time high which i believe is around 480 dollars but still uh if you're in d5 tokens you are doing doing pretty okay doing doing pretty okay and someone corrected me actually uh last week i i think i said there were 10 tokens in d5 i believe there's now 12 to v5 of course in the dpi rather

new tokens get added to the dpi all of the time they have a methodology they have the criteria for doing that you can read all about it uh somewhere else maybe we'll put it in the show notes but um the d5 pulse index is always changing but what it tries to do is serve as a benchmark in indices for the top defy tokens and that's certainly what it has been this year uh okay this is my favorite character yeah you want to zoom out zoom out to that three-month time horizon ryan you want me to zoom out to three months okay here we go yeah still

down versus ether right so in the cycle of bitcoin to ether to dfi tokens i think perhaps we are still in that ether it's still east time um d5 season is still on pause waiting for ether to actually maybe take the reins question mark um it's been down versus ether since all of march dpi has been down verse 8 for uh against ether all of march that's pretty crazy interesting so we're maybe in this in in-between season we're not quite sure what season we're in we're just about to transition rather maybe to bitcoin maybe

to eath maybe to to dpi we'll see david already knows what's chris berninski saying these days look i'm looking at a chart but let me read the tweet first our friend chris berninski is saying with bitcoin at 60k and each bitcoin that's the ratio looking like it wants to push towards the 200 week moving average again that places around 2500 chris is bullish he's doing some technical analysis you know i think of chris as a fundamentals investor but he also dabbles in the technical analysis

here in the trading uh what's he telling us yeah chart chris is the best chris in my opinion we all want chart chris and and uh he only gives it to us a very little bit but yeah what he's saying is that uh the eth btc ratio is what from what he's saying there seems to be a band that is is uh marching up a channel that is going up and to the right and we are on the low end of that channel perhaps going to the high end of that channel and that high end of that channel is the low end of that channel is roughly 0.3 ether per bitcoin uh and that then he

thinks that perhaps we're going to that high end of the channel where there is uh 0.42 ether per bitcoin uh and again that that puts ether at a dollar price of 2 500 which seems totally reasonable just 500 that'll get above previous all-time highs seems about right yeah i'm not sure so i i like chart chris too but i also like price prediction chris and chris has always been calling for it like higher highest this cycle a lot higher highs right so like 10k eath is not out of the question uh certainly for chris

he's been he's been bullish the whole way um all right who's this lemonade alpha this is somebody from uh the index co-op which actually manages the dpi and other associated tokens but this is index co-op daily revenue and what's cool about this is index call up is a dow that manages these indices these these sets that are put out of tokens that you can buy like dpis one such token and the revenue growth has been pretty crazy here um this is daily

revenue growth and if these assets just continue you can see that like the potential for this to keep going up and up and up what's your take here yeah i i think there's so much dormant potential in the index co-op i think they have a really streamlined process um bankless has been talking to them about an index question mark what's going on there uh the interesting story here is the ether2x fli token which is brand new the fli i believe stands for flexible long index yeah and so it's a single

token that has a dollar price associated to it and that dollar price goes up or down twice as fast as ether does it's a single token that leverages a 2x to long position on ether the asset it's got some crazy defy magic behind the scene so it's got a depth position in it as well and and so when you buy into it you are in uh buying into a debt position that is leveraged long ether uh and this has really been part of the conversation in crypto twitter and d5 trading twitter um and there i believe there is over 10

million dollars allocated into the 2x eth fli token and that's been growing up growing very fast and so it's already become a very substantial part of index revenue and i think this is just going to be the first of many leveraged index tokens um btc next other defy tokens next why not let's just get this fli you know model out for everything leverage everything yeah leverage everything leverage everything yeah why why have 1x the pain when you can

have 2x to pay and 2x the gain of course i'm sold david sign me up fli sounds great let's product market fit it is especially for this market guys be careful when you're trading leveraged products of course i hope that goes without saying here is not fli this is fil filecoin completely bitcoin completely different what is this is a fully diluted valuation i'm looking at of 383 billion billion billion yes yeah

so here's a list this is bigger than this is bigger than eth right now this is uh i think i think it's tied pretty closely to eth which is absolutely crazy it's um i i know i think you're actually right yeah no you are right because it is higher than uh wells far or not wells fargo uh walmart it is the the file why did you say wells fargo david well we're going to get to that fl fil which is the file coin decentralized storage um uh protocol it has a higher market cap than walmart and

this is a lesson in the difference between market cap and fully diluted market cap there's not very many trading tokens out there uh and yet because people keep on buying them for some reason the if if you take in the market cap of all the non-circulating tokens you come up to almost 400 billion dollars making it i think like the world's 17th most valuable asset there's no way that this is worth that much this is just doesn't make sense it's a byproduct of bull market froth it doesn't make sense yet people are buying

into it uh i would proceed with caution is what i have to say with this yeah you know like fully uh fully diluted valuation is is an interesting metric because it can also depend on what the future issuance rate is of of the asset right so you have to factor that into um but but in any case the interesting thing about many protocols is that um the the issuance can be sort of chained changed um you know nba top shots i um i threw a a tweet about this but it's

fully diluted market cap with something like 50 billion um yeah a couple weeks ago i'm not sure what it is now and i know that's some news but like make sure you're checking the fully diluted valuation these tokens in total supply and ask yourself carefully if this is a good buy based on who has the current supply and what the future issuance is 383 billion dollars with the b does not seem like a good valuation to enter in for almost any asset right in

crypto um besides maybe eth uh bitcoin those sorts of sorts of things that have proven themselves all right um david we're gonna get to the news in just a minute but before we do we want to tell folks about the sponsors that made this rollups episode possible gemini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini since i first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells gemini is available in all 50 states and in over

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is your go-to wallet for the bankless journey if you're going bankless you need metamask period browser and mobile get them both this is your tool to unlock the world of defy here's my favorite part now you can swap tokens directly in metamask with a single swipe this has got to be the easiest way to trade ethereum tokens choose a token you own a token to exchange it with get your quotes if you like what you see you hit swap that's it what makes swap so useful is what happens behind the scenes it

compares dexes aggregators and market makers to find you the best price with the lowest network fees and the least slippage this means you can swap a wider range of tokens and swaps can even automatically split up your trade to give you access to better liquidity you don't even have to think about it try it out download metamask for desktop or mobile now at metamask.io and start swapping all right david let's get to the news

the first one this is hot zk evm in may this is zk sync okay so just some context here right we've talked a lot about the difference between ethereum side chains which are not secured by ethereum beneath the token and ethereum layer 2 which is secured anything layer 2 is secured by the ethereum network and ethertoken we've talked about the different rollups that are layer two so optimistic roll-ups is one arbitrary is another there are other roll-up solutions and then we've also talked about zk roll-ups

uh if you want more info on these things go check out a podcast we did previously rub metallic i think he explains the difference very well but the promised land for all of this even according to vitalik the long-term goal is to have an evm so that provides the expressiveness of the ethereum main net inside of a zk roll up that's kind of the promised land for scalability and here's zk sink talking about presenting an update on that potentially a zk evm

in may what's this about david yeah the this uh this gets into cryptographic magic which is a little bit beyond me but they are cr implementing a mainnet version of zk sync which has much more full feature which is much more full feature than i think we initially expected to be coming this year which is kind of crazy included in this is nfts are available on zk zk sync which is not something that i thought was anywhere close because nfts are harder with zk roll ups but the fact that this is getting

announced sometime soon is pretty crazy uh the the the through line here is there's always going to be some sort of tug in a tug of war between something like optimistic roll-ups and something like zk roll ups uh and each one is going to provide its own benefits and merits at some sort of timeline it seems like this timeline is maybe getting moved up yeah it's awesome because all of these layer two solutions are competing they're rushing to get out the door and to develop and build on top of it so the public test net for zk sync is in may 2021 maynet august 2021 i haven't looked

into all the details not sure how full-featured it's going to be but it is exciting nonetheless the prospect of a zk roll up with an evm inside of it let's just talk about ethereum's layer two diversify put out this fire tweet which just puts a bunch of logos on the screen and categorizes these logos infrastructure you know uh wallet swap everybody in the ethereum ecosystem that is working on layer two specifically david if i'm a competitor and i'm

looking at this slide right maybe that gets to our meme of the week hint we'll talk about that later if i'm looking at this slide right i mean this just looks like i'm not just competing with ethereum i i'm competing with like the entire ethereum ecosystem right that's pretty hard those network effects are are pretty entrenched what are you getting from this uh image here yeah the cool thing is is that they actually have uh granted they have multiple logos in different spots right so loopering you see that in infrastructure you also see in wallets

you also see it in exchange uh you also see in payments it's actually kind of one of the cool things about loopering is it does all of these things and so we're kind of double counting here um but it's also one of the powers of composability and uh in just expressiveness in l2s why expressiveness in zk sync is is so powerful uh one uh l2 can do multiple things the the network effect and we ethereum people have been chanting this for years now the network effects on ethereum is almost too late and like i can't say

that it is too late because i don't know the future but like you said like imagine having to reconstruct all of this stuff which is being built out in so many different directions by different teams it's it's it's it's you can't keep up can't keep up david you know what i think it's a good heuristic it's kind of the 10x rule right which is like in order to get an ecosystem or you know people to switch something the technology has to be a 10x improvement you know bitcoin's 10x improvement over any sort of story value in the real world gold ethereum i i

would argue is a 10x improvement on bitcoin right with with its expressivity its programmability with this defy ecosystem with proof of stake with all of these things 10x i'm struggling to see the next 10x improvement on ethereum in the in the current crop right so i do think if there is a successor to ethereum it'll probably look a lot different than ethereum like we might not even see it coming or we might not even call it an eth killer that's sort of a rule of thumb i've thought but of course it doesn't seem like that in the bull run i think the 10x the way that we 10x

ethereum is on ethereum not replacing ethereum it's something like the app layer right if we want to improve of what may make ethereum 10x better it's going to come out of the app layer and that's kind of the whole point yeah absolutely um all right paypal paypal launching crypto checkout service uh that means all paypal customers 29 million merchants as well will be able to receive funds in crypto so basically what this is i understand you have eth you have

um bitcoin you have even like litecoin things like that um you can you know just use those currencies in your paypal wallet and check out any paypal merchant 30 million of them almost um how big is this oh this this is huge this just makes the usability of these crypto assets as money uh far better like we can finally like check out with crypto is this is now the thing like we can now check out with crypto with the paypal integration uh and so being bankless but also purchasing

something on your on you know while you're just shopping uh is now done uh done on paypal right so like you can hold all your crypto money and then you can go buy your thing and you can pay with your crypto money it's absolutely fantastic interestingly they still have the there's still some improvement that needs to be done i think in the marketing because if you look at the uh picture that they use they have the xy they have the xrp icon in there along with bitcoin and litecoin for some reason people still think that we want to pay in litecoin when we don't we would like to instead pay with usdc and die um i do believe that they have usdc

but i don't believe that they have die um yeah but not not going to knock them um nice job paypal keep it going how about some erc 20 tokens let's get those more of those integrated like this is the d5 mullet thesis right which is which is the um the uh fintech in front and d5 in the back and that that's exactly what what um paypal is building they're building on crypto rails erc20s are coming that's next stable coins virtually guaranteed after this move um david let's talk about this we're actually you know i said this whole

section was uh news it's releases isn't it we're talking about all the releases that that happened uh introducing element david what is element element phi got some big investors behind it is this a cool new d5 primitive d5 thing what is it yeah yeah new d5 money lego and so i i tried to figure out how this totally works and i didn't really get too far so i'm just going to read out the section that i think is important the element protocol at its core works by splitting the base asset positions and so think of a collateralized lending application like compound or ave

splitting the base asset positions each btc uscc into two distinct separate tokens the principal token the deposit the collateral and the yield token the upcoming interest and so there's now two tokens as a result of your deposits and so this splitting mechanism allows users to sell their principal as a fixed rate income position further leveraging or increasing exposure to the interest without any liquidation risk the competitive activity along with custom curve built a custom curve built on balancer v2 is what drives the high

fixed yield markets bringing liquidity to fixed income yield while minimizing slippage and fees as the discount decreases ultimately of opening the door to a number of new d5 primitives so more surface area is my takeaway there's now instead of just like depositing collateral into ave and then that being a position now we are more granularly able to talk are we talking about the principle of that position or the yield of that position and which one of those do we want to build off of now we have tokens to build off of each so that's pretty cool

yeah fix fixed rate income markets like we have a very a lot of variable interest rates so if you deposit in ave right like you know your interest could be five percent one day could be ten percent the next could be two percent the next right um getting to fixed income rate um assets is is important it's all part of the the the um movement that we're seeing in d5 which is speed running traditional finance um so that's what's happening next speaking of which optimistic ethereum layer two synthetics on layer two they've now integrated staking what i

think is cool about this is if you look at sort of metamask look at this david oh you got metamasks that's awesome we just switched networks right so in metamask where you're on the ethereum mainnet you just swap over to optimism synthetics is there now you can stake within synthetics on the optimistic pull ups like the cool thing about all this stuff especially with optimistic roll-ups uh and arbitrary roll-ups and this sort of thing is everything that you use today in d5 just works right out of the box so

your metamask wallet like ledger all of this stuff is just going to work and it's the same protocols you know and love but fast ux is going to be great so this is in production right now synthetics of course has been kind of pioneering the way with with optimism and uh next is is uniswap they're going to be on there too so it's pretty exciting i think in the world of um ethereum layer too yeah this little gif is just a really good job if you're explaining how l2s work there's like it's going to be a contract on ethereum where you send your money and when you

put it in that contract it sends it over to the l2 and then you just switch your metamask you point your metamask to a different uh implementation of the evm and one will be the o the uh o evm if it's on optimistic roll ups and you're just pointing to a new chain uh and the cool thing is that chain has the same assurances that ethereum does and now you don't have to use any new infrastructure you just you're you went through the portal and now you're on the other side and now your money and your in transactions are instant and cheap and it's the same infrastructure that we

are all familiar with so the the getting it's one thing to build out scalable l2s it's another thing to make this uh the ui and ux seamless and the fact that we can use and recycle all of our same infrastructure is really awesome can't wait all right uh faye labs faye had a genesis this week i it's still in in in process as we're recording this a fei is kind of a it's a stable coin it's a different take on a stable coin similar in some respects to maker except rather than

sort of collateral being being controlled by individual cdp creators it's actually controlled by the protocol there's a lot of detail here and honestly a lot of complexity here we have covered all of this in an alpha leak that we sent out to bankless premium members we sent that out the day this thing launched the cool opportunity to the extent it still exists is you can actually deposit your eth into the fey contract you get fey but you're also rewarded in tribe genesis tokens these are the governance tokens for the fae critical i know a

number of uh folks in in the backless community have have tried this out and and used this uh and are excited for it's kind of you know quasi elements of a fair launch the governance community getting distributed to the early genesis believers of the project i'm not sure where fey ends up there are a ton of stablecoin solutions these days david but like we're super excited to see the innovation in staplecoins because ultimately we have to move from stable coins like usdc and tether to

crypto backed stable coins that are 100 uh trustless and decentralized and this new crop seems to be moving in that direction things like rye you know you said this last week rise being a real stable coin rather than crypto dollars so it's exciting to see these sorts of things yeah yeah absolutely and uh it's just fitting in the thesis that what can be built will be built on ethereum and uh this is not built yet the i believe the contract will finish uh receiving ether by end of my saturday

end of u.s saturday um and so you as a listener to this on friday have roughly one and a half more days to figure out if you want to be a part of this or not have your own research all right david you ready to get to news let's do it what are we starting with are we finally announcing we're announcing it all right we sold out bankless acquired by wells fargo was the headline published congratulations ryan all right so this was published on april

1st okay april 1st right keep that in mind and the title of this bankless article i sent it out bankless acquired by wells fargo dear bankless nation huge news today breakup with your bank has been our mantra since day one but today i'm happy to add a slight addendum to that mantra blake break up with your bank and join wells fargo bankless has been acquired by wells fargo okay so i sent this email out because it's april 1st it's april fool's day guys

uh sen sent this out and um look man i didn't think it was super serious like there were a lot of i mean um hints that this is all a joke not everyone got the joke i know it's crazy yeah so my uh we've been recording basically all day today we've had like two big long episodes and uh i barely got into my email but i looked at it a couple of times and my email is wrecked

we got some haters like there is a there so well it's a combination so some people are like i was mad at first but then i got the joke well played guys um that's probably 75 percent of people and 20 of people are just like f you you guys sold out this is terrible unsubscribe cancel my subscription um i hate this right it's funny because there's another five percent that are like congratulations guys well done you pat yourself on the back you made it how much did we sell bankless for ryan

oh my god well it wasn't even disclosed in this email uh in this in this newsletter so uh undisclosed um can you imagine what wells fargo would want even to do with us wells fargo has been the trope for us like from the very beginning of of being sort of the um like the bank that we're trying to get away from nothing against wells fargo i actually have a wells fargo account yeah so do i funny okay and then there's this picture of you standing in front of a wells fargo that like you use as your profile shot which yeah that is that is the new leak

information is that oh david's profile picture is actually in front of a wells fargo bank that is true that was not a joke that is a real thing so guys if you if you're part of that 20 who's angry about this don't be this is an april fool's joke bankless is not selling any of its media assets will never to wells fargo or any other bank this is not what this movement is about uh if you're part of the 75 who got the joke thank you i'm not sure it's too it's too early to to know whether like i regret sending this out

or not i think i think it was okay but um we definitely lost some people and if you're part of the five percent congratulating us like i don't know why why don't congratulate us we don't deserve that yeah we don't deserve that um anyway it's good to see that the 20 of the bankless community as well uh is holding us accountable for not selling out on our court police here um david optimus back to real news back to the real news okay that was some of the fake news david alluded to um back to real news optimism launched moving from march to

july okay so we're talking about how bullish we are in layer two but now here is optimism um announcing another delay are you worried about this uh well yeah yes and no um i wanted optimism in march i was calling it optimistic march um but what i've gathered is that um be when they do finally release it in july it's not going to be the same release that we were going to have in march is going to be with everyone there's going to be a full suite of applications in july that's my takeaway that is not

something i verified with the optimistic team but that's what i've gained from from reading through the through lines in their posts is that when they do go live it's going to be with a whole entire just suite of fun things to do um on so yeah i will i'll be patient and i will excitedly anticipate the launch of july yep well um the uta swap team put the pressure on too they said uniswap bc is launching may 3rd and then optimism shortly after an optimistic version of unit swap v3 shortly after so hopefully

shortly means sometime in july and we will see hopefully it's the even stronger launch at that point in time um david this has been kind of the news of the week uh visa now settling payments in usdc uh of course is a stable coin on ethereum settling payments on ethereum they're doing this through the crypto.com visa card i guess previously this the settlement of the crypto.com visa transactions happened in the old traditional banking system and this is