📺ROLLUP: ATH for $ETH & $DPI | Logan Paul NFTs | HashMasks | Saylor Conference

all right bankless nation welcome to the first week of february what are we doing today david we are rolling up the news which is an ambitious exercise these days because the news in this crypto industry just does not stop we are going through five different sections to make sure that you can stay up to date with this crazy world of crypto first we're talking about the markets what are the markets saying then we're talking about releases what got released then we go into news what is in the news cycle and then we finish up with some takes that we find interesting around the ecosystem

and then we finish up with what we are excited about me and ryan but actually we have a special new section this week in this weekly roll up which is the meme of the week which is something that we are going to finish up on moving forward meme of the week i'm super excited to see what you selected this week as usual guys this comes out friday morning so you can enjoy it with your morning coffee uh we used to have this down to like 30 minutes but now it's it's taking a little bit longer but this is the most digestible way to get the crypto news into your brains every week so we're glad you're with us david are you ready

i am ready all right let's roll them up we're starting with markets today so we always have to start with bitcoin what's going on in bitcoin land bitcoin 37 000 is continuing to range between 40 and 30 000 if you are interested in an alt season or a defy season this is what you want to see bitcoin ranging staying in saying between that range of 30 to 40 000 consolidating there letting people buy into bitcoin and slowly fill their bags without pumping the price too much and

then some of that extra value can flow downstream to the low cap tokens that's what i see happening in the in this market right now yeah rumor has it david you own no bitcoin maybe we'll get to that later that's uh that's the rumor going around on the interwebs these days all right a little bit more than a rumor there is more going on in eath price this week though bitcoin had sort of a flat ish week but eath price did not i hope if you you're an eatholder you like all-time highs because we're seeing them on the daily i remember the 1500s like it was yesterday and in fact it only

lasted a day now we're in 1600s and beyond what's going on here yeah a hundred dollars a day added to the eath price keeps the bears away that's what we like actually eath price has broken all-time highs uh every single week for the past three weeks uh but this week was a little bit different previous weeks it only broke it by 20 first it broke it by it broke for the 14 20 mark by 20 at 1440 then 1460 then 1480. but now we smashed through that record we touched 1700 yesterday uh and now we are at

1630. we've arranged between 17 and 1600 dollars for the past 24 hours um nice job eth showing a really strong momentum right now you know some people will say this is like too much too soon but i i honestly find it fitting david because we are about like one week exactly ethic all-time highs one week exactly from the gamestop fiasco and i'm not sure if that's like uh an accident like i think there's there's

evidence here that people started to fund exchanges and start getting interested in get interested in crypto as a result of what was going on with gamestop and robin robinhood and amc and everything that's going on in wall street bets do you think that is a safe link to make i think that's absolutely right and i think some of the evidence for that is that it takes three to four days to get your deposits cleared into coinbase and if you wanted to extend three to four days back in

or in front of or after the gamestop you know drama that was wednesday and thursday where we really saw eth moving on on on convoy coinbase and other exchanges but also importantly a lot of defy tokens on coinbase as well ave we're going to talk about ave in a second but ave kind of like the brand of defy along with uniswap jumped an insane amount from 300 to 560. dollars earlier today i think that's a sign that retail investors are here on coinbase and their deposits are

finally clearing well let's look at it from a d5 pulse index perspective david it seemed like just a few weeks ago this was hovering around 100 it's jumped up to 413 the dpi uh the d5 pulse index has and total locked value in d5 has also exploded to about 32 billion uh pretty impressive here like these d5 stats yeah last week there was 26 and a half billion locked in d5 so we're up 6 billion on that and then last week dpi

was 290 and it's at 413 now really strong weeks the best the best week ever for d5 prices yeah this is uh this is kind of the d5 pulse index over time and this is an all-time high according to this index of around 400. so d5 is it d5 season then david uh i i think d5 season is just getting started but yeah i think we are in d5 season well something we looked at last week and i think we'll continue to do it on the roll ups is this ratio this dpi

to you eath price ratio tell us about this and what it's doing right now and why it's important yeah this is something i'm keeping a close eye on dpi the d5 pulse index of course is an index for all of d5 and it's uh it's breaking out versus ether so we're looking at a versus ether chart and so you know dpi versus us dollar tells you one story but i think dpi versus ether tells you a much more interesting story when d5 tokens start outperforming ether the base asset of ethereum that is indication of defy season you

know quote unquote defy season and uh the dpi index it's a relatively young asset it started in september i believe and so it's six months old but we're already pushing up near to the all-time highs that we saw in the d5 summer where dpi was born uh i'm and as the the crazy thing is you know ether did its absolute insane run from like thirteen hundred dollars to seventeen hundred dollars yet dpi was green versus ether in outperforming outperformed ether and

that hasn't happened since d5 summer but it has been happening outperformance of of ether on the dpi has been happening since uh early january up until now and you think that's going to continue in the near term well so the the cycle the tweet that i put out the cycle is you know first bitcoin then ether then defy season then d5 tokens uh and we already saw bitcoin you know it's 2x all-time high ether is like two to three hundred dollars above its all-time high um and so like it there could be room for it still being ether's turn but defy tokens look like

they are ready to go uh and so i i think the jury's still out rather it's it's still ether's turn or defy season um but you know things are trending towards defy season right now very interesting all right let's talk ave because that has been an explosive asset this week um actually before we touch on ave you know that another metric we should talk about david is the eth to bitcoin ratio that's another ratio that we monitor what's going on with that yeah this is chris burniske who i know pays attention to the eth btc ratio he

has similar theses that i do perhaps i'm actually just kind of absorbing his knowledge i like chris and i think he's a smart guy so i think it's a smart thing to do but the eth btc ratio is approaching um a two and a half year high we haven't seen these levels since 2017 and of course the last time we saw a quote-unquote alt season which is now defy season as a brand by the way uh and so like two and a half years um and so you know eth hasn't been higher than bitcoin at this level for two and a half years and what chris is saying is that you know when ether breaks these levels

this channel that eth has been in for two and a half years it's really indicative of people going risk on and looking down the market cap for you know more and more speculative bets this is kind of how we anticipated this bull run would would play out first first bitcoin as you said and then ether would outperform bitcoin we've seen that now it now it's happening it's gaining on the ratio and then d5 would further outperform ether so d5 would outperform both ether and bitcoin it's kind of exactly it's playing out exactly as we expected it

would so far and i'm like i'm wondering if if that model is going to continue to hold or if we should expect something unexpected because this is crypto yeah it's definitely something to pay attention to this is how i have my portfolio position positioned uh obviously i'm bullish i do want to make a note that like people that go too far down the the market cap stack that could go too far into the speculation of defy tokens especially if they do it too late in the game that can be too risky so

understand that when people go risk on they are taking a lot of risk and if the market decides to turn against you you are exposed so don't go crazy speculating on defy tokens you know keep your foundations keep your crypto monies i think that the big question is uh where are we in this cycle from a high level if you were to compare this to 2017 is this more march of 2017 or is this more july or november of 2017 i would err on the side of of this being more like march 2017 in that this bull run is just getting started but it is

hard to tell it's hard to time these things that's why you dollar cost average in have some discipline with respect to your portfolio uh and uh and be careful don't fall into the the fomo traps um david speaking of a fomo trap oh my god ave what are you doing the ave token wow where did it start this weekend and where is it now well how just give us the last two days actually yeah last two days ave two days ago was three hundred dollars at the time of speaking it like an hour ago it touched

550 dollars so uh rivaling ether in in unit price gains from from 300 to 550 that is absolutely insane in two days that's almost doubling the ave market cap insane uh worth it's worth six billion at this point right now six billion market cap yeah and this is why i think like d5 season is is on and especially because we're seeing uh the coinbase ave price outstrip the the binance ave price or the uniswap ave price because that is where cash is getting injected into the ecosystem you

know ave is kind of like a bellwether for the rest of defy i think you know same thing with uniswap i would also put uniswap in that category that's a great point so uh people are fresh fiat is coming on you know coinbase rails and directing and injecting itself directly into some of these defy tokens that's what we're seeing with uniswap that's what we're seeing on ave they're both listed on coinbase really fascinating here david we let's just change topics for a minute i think this is a super interesting metric that i haven't looked at in a while this website money hyphen movers dot info shows it this is the settlement

value per day of bitcoin versus ethereum and you can see right now that that ethereum is settling 20 billion dollars a day in value that includes all of its stable coins that includes ether the asset as well it includes rap bitcoin bitcoin is settling 9 billion a day in in value so this cycle ethereum is like outstripping bitcoin's daily settlement value by 2x and i think this will only increase because uh ethereum has all of like all

of these additional additional assets beside eth built on top of it what's your take on this yeah so it's awesome to see that value being settled just going super high up and to the right it's also worth noting that the 20 billion a day for settled on ethereum is only east stablecoins and wptc it is not any defy token no obviously no unit swap no no other of these like if those were included the number would be astronomical and i think the reason why that isn't included is because it's really hard to calculate

it's really hard to gain truth about this this is one of the things that the industry is is i would say behind on or lacking in in definite demand for is more metrics around token settlements and token values it's just a hard very hard problem to solve and so it's crazy to think that ethereum is 2x bitcoin and settled value in just ether wbtc and stablecoin terms you know it's you know what else is crazy because someone might say justifiably so well usdc that is is really it's settled in the legal system

right in a coinbase uh bank because it's all backed by dollars somewhere so what happens if you strip out usdc uh usdt that that's tether and wrapped eath um that has some well rap deep doesn't have dependencies rap bitcoin yeah i'll keep well i'll keep dye um wrapped eath and ether and all the things that are using ether economic bandwidth that's the point exactly so these are all the the trustless it's the trustless uh settlement value there's there's no external dependency i guess die has some external dependency and

some of its collateral sources but um for for the sake of this exercise we remove that and ether ethereum is still ah ahead of bitcoin and settlement value so it's actually settling more trustless value per day at 12 billion versus bitcoins 9 billion of course every bitcoin uh transacted on on bitcoin is trustless right the only dependency is the bitcoin network itself that stat to me is exceptional as well it shows that we're not only scaling economic bandwidth

we're scaling trustless economic bandwidth and that's key for the decentralized world that we all want to live in that's the whole point of why we're here and also included that could be included in that are tokens like uni and ave which i would include as trustless assets totally yeah those cash flows settle on chain it's all at um as well so they are crypto native capital assets uh very cool to see that all right another thing that's cool tell us about the dex wars the layer two wars maybe that's the big story here david

yeah we are getting into the conversation of layer two liquidity and layer two wallets on the bankless program we had vitalik on to talk about his uh blog post about l2 uh wallets and social recovery wallets so if you haven't watched that definitely check that out um podcast coming out next monday but it's already available on the bankless youtube we're looking at a tweet here that shows uh five different l2 dexes so liquidity on layer twos loopering leading the pack with 10 million dollars settled in in trading volume in the last uh last 24

hours nas social which i'm actually not familiar with 1.7 million dollars leverage number three at 0.9 million diversify 0.7 million dollars and idecs at 0.3 million dollars l2 trading volume heating up heating up yes it's heating up and these numbers are larger than the like all of the dex trading volumes from 2017 right the indexes hadn't even caught up until until like the last couple of years and now our l2s are bigger dexes are bigger this cycle than

regular dexes were last cycle it's pretty crazy to think about this is also crazy alpha finance which is a new protocol we wrote about this uh recently it's a way to take out leverage and do some yield farming interesting protocol it has now originated over 1 billion dollars worth of loans since and they just launched three months ago they're doing more volume than ave at this point what's crazy about this david is this project is three months old right like you talk about no barriers to entry

for d5 and for ethereum like you can spin up a bank protocol essentially that does one billion worth of loans if you construct it right and you and you do it well and you could spin that up in three months time like that's absolutely crazy to me to think about and it shows you how fast this market can move right like quickly a brand new project that's three months old can rise to the top of the ranks in terms of the amount of economic throughput it's

transacting we saw that with sushi swap that protocol is like five months old six months old and it is crushing it in terms of volume what's your take on this yeah i think the biggest takeaway message is how much room there is for development in in d5 right like this the defy ecosystem is not settled like there is room for a new projects to come in and build and capture a ton of value ave ave feels like a gargantuan in the space and even it is a pretty young it's only three years old you know uh and and

alpha is coming in with their brand new product clearly finding product market fit with leveraged yield farming d-gen yield farming um and the and there's no no questions asked as to why value locked in defy is going through the roof not only are the assets in d5 like doubling in price but also we are getting more uh applications to receive deposits all right david uh that that's markets guys you're getting a feel for everything is is kind of up and to the right um everything is everything is

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

getting a 200 usdc loan against my portfolio of a number of different defy tokens and eth i'll choose a variable interest rate because it's a lower rate than the stable interest rate option but i could choose the stable interest rate option if i wanted to lock that interest rate in permanently one of ave's v2 features is the ability to swap collateral without having to withdraw your assets trade them on unit swap and then deposit them back into ave ave does all of this for you all in one seamless transaction so you don't have to repay loans in order to change the collateral

you have backing them check out the power of ave at ave.com that's aave.com if you want to live a bankless life you need to get a monolith defy visa card monolith is a one-two punch of both an ethereum smart contract wallet and an accompanying visa card that lets you spend the money that you have in your ethereum wallet everywhere where visa is accepted when you swipe your monolith visa card at the grocery store or at a restaurant it actually makes a transaction on the ethereum blockchain

that spends some of the money you hold in your monolith wallet it's insanely cool and it's one of the best tools out there for living a bankless but still normal life monolith also offers on-ramp services for getting your fiat money into the world of defy so it's trivial to top up your monolith card if you ever need to and your deposited money goes straight into your non-custodial wallet so your money is never held by a centralized intermediary because monolith is native ethereum infrastructure the money you hold in your monolith wallet still has the power

of d5 behind it swapping assets on uniswap or earning yield in defy is at your fingertips go to monolith.xyz and sign up to get your monolith visa card today let's talk about releases so what's going on with uh releases you want to start with hash masks okay they just came on my radar this this week what are hash masks hash masks the new nft craze hash masks are i think i think these procedurally generated uh art i could be wrong about the procedural generation

but a bunch of new are kind of like those old pixelated i can't remember the name of them uh the pixelated avatars that people purchase and and speculate oh the punks crypto pucks crypto punks which which can be valued at anywhere between one and one hundred east at per crypto punk which is absolutely crazy we have a new one a new version of crypto punks i really like the art behind these and these are some of the art here is really really cool uh some of them have unique features that people that you know that perceive to be valuable and and awesome and and that's how people

are just subjectively valuing this art and trading them uh and it's just blown up in the energy dude this okay so i'm looking at this tweet here somebody spent uh 650 000 dollars in ether by the way ethan's money on a hash mask yeah what dude nfcs are hot people like nfts that's crazy i i like the amount of um like artists around the world have got to be looking at this space and being like hey i want to produce art for the crypto nft world because it pays really

well mm-hmm yeah no it's it's insane it's absolutely insane i've never i've always been no i'm no longer skeptical on nfts but i used to be because i was always like you know digital art like how does that work but like people kept on buying them and like to the point of like you know point six million dollars like i'm no longer skeptical because people are doing it like you know the the money's there to prove it absolutely a very cool project very interesting we continue to monitor the nft space i think it's going to have a big year in 2021 metaversal is

a great newsletter from bankless that you can stay tuned to to follow up uh follow that market all right another hot release this week david is balancer v2 can you tell us about that yeah balancer v2 is something i've been long awaited for really happy to see it out the gate there's just a bunch of new features as you would expect in v2 uh there's just more more gas efficiency different types of asset management tools different types of oracles also a protocol fee for the battle token uh and there is a fantastic tweet thread that

ryan is showing on screen if you want to learn more about it um just a long-awaited update to the balancer protocol so congratulations to the balancer team for getting it out the door yeah it feels like uh balancers balancers i think killer feature is the amount of customization you could do with it and what this what balancer v2 really allows is for people to essentially create their own automated market maker right so like you can you can you can tune this in all sorts of different ways you could create your own uh curves like like like curve the the stable coin automated market maker or

you could spin up something else so um balancer is is really a a suite of power tools now for creating these automated market makers and they've created a like a whole way uh for people to do that i think that's gonna bring a ton of innovation in the space and there's this kind of this debate david as to whether we'll end up having one automated market maker to rule them all kind of like a uniswap to roll them all or whether we'll have all sorts of different curves and a world of many different automated market makers and i

think balancer is more bet on the the second world we'll see how that plays out yeah i think we could even use a barbell theory behind this the types of amms out there where unit swap is the maximally reductive maximally simple uh version and balancer is the maximally tinkerable maximum with maximum optionality and maximum expressivity with how you want your amm to to be designed um there's extreme amounts of value i think in both designs yup every money protocol that can be designed on

ethereum will be designed on ethereum maybe that's put through the defy crucible everything that can be designed will be put through the d5 crucible and only the things that are valuable will come out the other end there you go i'm calling that hoffman's law for now there you go all right love it um parsec what is going on with parsec this looks pretty cool i've got a user interface tell me about this david yeah parsec is a new like information terminal kind of like a defined native bloomberg reading information i bet this is unconfirmed but i bet you the graph

protocol is behind some of this information uh behind parsec if you just want to get a one-stop shop for all of your define information and just get a feed of trades and a feed just feeds into your eyeballs it's a great great website to go to app.parsec.finance that's p-a-r-s-e-c and so it taps right into uni-swap trade so big unit swap trades big unit swap liquidity deposits or withdrawals um and you know the typical buying and selling features and then also charting features

you know just a place to get to view all of your portfolios pretty cool so it's so cool man this is kind of the dream it's basically a bloomberg terminal overlay on top of everything that's built out in in d5 pretty crazy someone could put this together so quickly and for to have the functionality that it has speaking of functionality let's talk layer twos again for a minute arbitrarium just put out a fantastic demo where this is so arbitrary if you're not familiar with it um go check out our roll ups episode with vitalik

we talk a lot about this type of roll-up which is called the optimistic relapses roll up so that's a layer two built on ethereum this this is kind of the promise of um near-term scalability for the ethereum network and arbitrarum just put out a demo where all of these crypto native wallets and applications uh work out of the box except they're not running on mainnet they're running on this arbitram roll-up that is ultimately secured by mainnet this is sort of a a

playground sandbox demo environment but it's definitely a promise of things to come and it's super cool that your native metamask or whatever you know wallet you use just works out of the box with a roll-up like arbor drum super exciting to see layer two coming in this way in like a very real tangible way yeah i think the uh santa monica pier metaphor is really really useful here for the for the international listeners who don't know what the santa monica pier is it's a famous pier off the coast of california and this is kind of how i

envision l2s where uh you have the highway the pacific coast highway famous highway in america and it's very busy very congested lots of traffic but then you park in the parking lot you take that long walk out the dock down to the santa monica pier and so it's like a mile long walk on the dock and then you're in the santa monica pier where there's a ferris wheel there's roller coasters there's like carnival games there's all these fun things to do in the santa monica pier and that's like my version of like an l2 and that's what this like arbitram uh l2 is where like

it's some l2s are very specific in what they do but this arbitrary l2 looks like it's just a place to do very like many many things and that's what the power of optimistic rollups brings and and it looks like that there's going to be just a lot of fun things to do on our patreon speaking of hoffman's law david if it can be built it will be built goldfinch so this is something that needs to be built on top of decentralized finance loans without collateral need to be built on top of decentralized finance we have ave we have compound of course

those require collateral in order to get a loan but we need the idea of credit in d5 there's a lot of projects doing that here's one goldfinch what would you say about this yeah it's this is just the crypto is always is the the the meme is that it's speed running the his the history of finance and money right and at some point that that progress runs into uncollateralized loans as we know of just like oh credit when people call like oh i got a loan from my bank this is what they're talking about we need to be able to offer people loans without

asking them to lock up more than their loans worth of value i mean to your point like historically that's kind of collateralized loans was sort of how it worked in like the 1800s you know like no one there was no notion of credit you didn't have a fico score there's no credit card for you it's just like oh yeah i'll give you a loan but how are you going to collateralize that loan right mm-hmm yeah and so like when we talk about like financial freedom and financial tools it's kind of kind of unfortunate that like in order to get a loan from this space you actually have to have more collateral like this kind of antithetical to the idea of the loan

so having access to loans that you don't actually need capital for i think is a really really important tool and so the way that this works is that it's actually based on trust this is based on reputation this is how loans work so there are underwriters in this system there are people vetting your ability to pay that's i don't think there's any way around uncollateralized loans in in defy without that trust or you know risk tolerance to the to the system importantly they are starting with emerging markets you know some sometimes in like d5 degeneration in degens and

and yield farming and all this speculation we kind of forget about we forget about the plot but the plot is financial tools for all and that includes emerging markets so very happy to see goldfinch uh starting their their platform starting their growth in emerging markets getting loans out to people that don't have financial tools and also don't have capital to lock up in ave or the ether to pay for gas prices yep we're going to see a lot of uncollateralized loan solutions i think uh in 2021 it's definitely going to be a theme uh david speaking of a theme of 2021

this is michael uh sonnenstein from grayscale he came on the show not too long ago he says many of you asked and we delivered grayscale released its valuing ethereum report what does the report say david you know this for short is this report is short and punchy and i can give you the tl dr of it it's ethan's money ethan has a store value asset and defy it's and then this the second part is eth as a capital asset and then the third is each as a consumable transformable

transformable commodity i think i think i've heard this one yeah i was gonna say uh we've tended to talk about that it sounds exactly like the triple point asset thesis which is our value proposition the bankless value proposition for uh for ether the asset we've been talking about this for a long time in fact it kind of came the genesis was a presentation you gave about a year and a half ago something uh about ether as a the best money as a triple point asset

how it has these three different properties um what's happening david is we we've said before is like you and i kind of operate on the like layer zero sort of the mean layer the the narrative layer and helping to like create mental models for this and not just us the entire like group of of people who are investing these protocols and members of the community who are developing content here operate on that level and what happens is it tends to leak out and now what we're seeing is it's leaked out to the the next rung which is crypto

establishment institutions and suits the suits right or they're suit friendly at least they're kind of a bridge to the suits but they also hang in our world in crypto and now they are propagating the same narrative and the same meme and we think of course all memes are more than just like like fairy tales and ideas they they have to be um forged through the fires right they have to hold truth and i think we're seeing the triple point asset does hold truth and that's why it's getting propagated to the next layer after this layer david it's all