we're alive we're waking up oh my goodness what's up Jen
hope you're doing well happy Valentine's Day of course
gonna go over here and share out the room drop some emojis and some eggplants
come on up and hang out if you'd like
but yes we're going to be talking about everything it's a big day
things are looking amazing in the market
lots to cover but we'll also be just talking about some headlines recent
happenings and then digging into restaking a little bit
what the heck is it going on with eigen layer
that'll be part of the part of the convo today
alright she's bugging me straight out of the gate
I have my daughter yelling mommy
the secretary is in a mood what's up cats great to see you
happy Valentine's Day alright we're gonna we're gonna get into it here in just a moment
gonna go ahead and turn on my Ryan Carson filter
oh baby she's here happy Valentine's Day everyone
yes happy Valentine's Day to you Mo and Carrie Ross
great to see you here as well as we get things going
anyway are you celebrating today mo you got any any special plans going out to dinner
doing anything nice tell me a story
I'm just hustling just hustling I like it
every day I'm hustling all right yo what a what a
what a morning though so like you know
love in the air your scissors are back I heard my scissors
are back what does that mean who are we scissoring
the bottom apparently they've brought back the scissors I have not updated my app today
but the scissors are apparently back so I have to go do that oh for clipping
updated mine either so I made a joke because the because
bitcoins pumping I was saying today is Valentine's Day we're getting a pump
and a scissor well scissor
me timbers yeah I don't see it on mine I guess I haven't updated on this device
so if what you're telling me is true then yeah scissor me hard
clip clip the heck out of me make making my Valentine's Day special make it memorable
now you just need your sexy big blue button again
that big old big old blue button all right my voice still waking up I'm still waking up we're still waking up
but that's okay the market is fully alive and awake already
great day great day to be alive and to be crypto
NFT OG so shout out to all y'all who have been in here
I think pretty much everybody in here that I recognize has been around
not a lot of noobs in this room bunch of experienced degenerates
probably all looking at their bags a little differently this morning
I'll throw that one in here out of the gate I guess that's kind of premature anyway
y'all this is GM web 3 I'll try and set it up properly clearly still waking up but I'm
gifted your humble web 3 Sherpa aka the Goku of aetherium and the Goku of seino
and we got some some awesome people up here joining us already on stage including
and carry Ross GM do you both how we doing it's a good day
over 2 over 2 trillion is it feels good feels like it just
we're back to start so we're going back to start
yeah Bitcoin crossing the 1 trillion dollar market cap
and then the whole crypto market now back above 2 trill
2 trillion is out they say yeah definitely feels good
a lot of positive momentum say hit an all-time new all-time high
that's pretty exciting any other just high level like macro
or things like that the arms down here things that you're seeing that are exciting
I mean Bitcoin crossed at least briefly 52,000 and has pulled back a little bit
but it's still trending up would not be surprised
it's good to see these levels holding above like you know
2,500 for each was like a point of contention
and and it's broken that same with Bitcoin over 50 and keeping out
of 50 like not dripping back down like gives us some wiggle room
so that you know you get your ups and downs but staying above those levels feels good
yeah they're like psychological barriers as well as technical barriers right
so I agree with all that if you eat over 2,700
what was the last time we saw that it feels like it's been a minute feels like it was a whole other era
when we were back in these types of these right here
so yeah man things are looking very nice very nice indeed
so yeah if there's any other things I want to call out that you're seeing in the market that are making you excited
go ahead I mean Solana now back above 115 also
so yeah just a tons of positive momentum tons of great things happening in the market
so hopefully you know you're waking up and seeing some green
in your portfolio today feeling good I'm starting to pin a few things up top
feel free again our amazing coasting contributors up here to share some things
pin them up top if there's things you want to talk about and go ahead and share out the room by the way
let's get some more friends in here let's kick it off let's get it going
see a few people are down there commenting already appreciate y'all
most throwing roses at us yeah appreciate you getting some hearts from vert
getting those eggplants that Valentine's Day eggplant action from Knox
getting some hearts from Aaron hey thank you all appreciate y'all for hanging out with us
and you know being in here early as we get it going
all right yes today again we will be covering off as we do on some of the breaking headlines
the newest and most interesting things happening around the web 3 space
but also digging in to Eigen layer and restaking specifically because this has been
one of those narratives that's I don't know I guess in some circles
it's been a pretty big one for a little while now I know it's been a pretty new narrative
in the last couple months that's been getting a lot of traction something that we kind of talk about
in different ways at different times but I don't think we've really done
a good job of focusing in on it too much I'm very happy to have quantum
variant here with us because I know that he's been a little bit more interested
and engaged with Eigen layer specifically so maybe he can be
he can be the Sherpa today and he can guide us through a little bit of that
but yeah it does seem like restaking is kind of a I don't know kind of a rage
it seems like it's a big deal and I'm excited to learn more about that
so if you're also excited to learn about what's going on with Eigen layer and restaking
and why people are so excited about the prospect of an Eigen airdrop
you know let us know in the comments share it out let's fucking get this thing going
you know it's I'm still getting used to not playing music but because we're switching to this
one hour format you know I feel like we just got to get into it sometimes
and just we go out with the music but I'm still not really used to not setting the vibes
but that's okay we got Valentine vibes
alright so a couple quick things off the top here worth mentioning that I know about
Hardo who's an artist that's again kind of come out of nowhere for me I guess they've been pretty established
but until their recent golden ratios and their success with those on Bitcoin
I had not heard of Hardo shout out to Huda who was the first one that brought in the golden ratios and told us about them
Hardo's doing basically a free mint on Bitcoin which is the first time I've seen this
I had not seen anybody attempting to do free mints on Bitcoin before
does not seem like the kind of thing that would be easy normally just given again
how you know expensive it is to transact on the chain but he is doing a free mint called
Floraforms doing these interesting generative flower patterns
you can see some of those pinned up top and it is minting right now
and there's going to be if it gets to public there will be public mint
in two hours and 46 minutes over there on the magic Eden launch pad
so I'm going to try and get one it's you know ten thousand sats point zero zero zero one Bitcoin
and they are limited to ten thousand that's why I'm not sure if it'll actually get there
because there's still some more phases of the whitelist to get through and there's already
there's already like over eight thousand of the minted
so we'll see we'll see if it gets there probably won't
but I'm watching those and you know what if they're free maybe they'll be cheap on secondary
so if you want you know a cheap hardo piece you know maybe it's worth actually checking that out on the secondary
have any of y'all been collecting his ordinals or are you familiar with artists
anybody got any thoughts on hardo
first time hearing about them okay
so you so you're not familiar with the golden ratio either
no interesting all right well this might be alpha for you then
have you been collecting ordinals at all
no I haven't been in the ordinals my bitcoins on coinbase I haven't moved it
that's the only asset I have on coinbase so just easier to buy and tax issues keeps it easier to keep it on coinbase
I was I was like you until recently when I started dabbling in the ordinals
you might want to just go and check out on magic Eden golden ratio by hardo
just to see what I'm talking about because those that's like the piece that I'm chasing
if there's gonna be one grail for me on ordinals that I really really want
that's like it's not so expensive yet that I might still be able to get one
although I'm sure if I go check right now it's probably fucking already pumped again
they're lovely yeah you like them oh yeah I really like them oh yeah
yeah they pumped again a little bit more they're not crazy expensive but this would
a lot of people feel like this has the potential to be one of the sort of like generative art grails on ordinals
because who the artist is that sort of you know the quality of it the narrative around it all that type of stuff timing
so they're sitting at point one three BTC right now which again it's not crazy expensive but it's not cheap
but that's yeah that's the one that I really really want anyway is it real generative or is it AI generative
I think it's real but it's a good question you know maybe
let me dig in a little bit further on it here discovering the aesthetics of mathematics
the golden ratio collection by Hardow is a visual exploration of the patterns that govern our reality
about the golden ratio each piece is in this collection is a window into the intricate dance of numbers in nature
marrying the Fibonacci sequence with the principles of recursive algorithms and fractal geometry
Hardow's work reflects the proportionality found in nature the symmetry and grids that underpin our universe
and the beauty that emerges from chaos Hardow's designs are not just images but algorithms at play
the randomness of patterns the organic granulation and the harmonic color palettes reflect the unpredictable
yet orderly universe we inhabit the collections aesthetics draw heavily on the rich history of cryptography
and the bold patterns and functionalism of the Bauhaus movement
so it sounds like it's generative it doesn't say exactly there keeps it kind of vague in that regard
doesn't it kind of sound like code yeah well that's what I mean that would be that would be generative
but a lot of people use the same terms as you know to make it sound like it
sure so it just depends I think people as long as it's clear you know I hate when it's like they call it generative
and yeah it's AI generative right which is generative but it's not it's different yeah it's very different
um no it's if you can find out more let me know that we can know I'm leaning towards it being actually generative art though
but I could be wrong um good question anyway uh what's up Chaz GM great to have you uh
yeah what's going on we're just getting into it man getting in it we're gonna be talking about restaking here in just a little bit
uh yeah I was just trying to like make a frame on manifold but I hit a glitch you know like what the hell dude
no what's going on I was gonna throw up a pre-ment for uh help valenceize David I don't know if it's because it's a video or not
I don't know that's that's what's going on but yeah I'm not sure what the hell man what the hell I mean like this cool like 3d animated video
little like 30 second clip thing and I keep getting this like JSON error so uh hey we're still early Chaz we're still early bro
um all right right now we're guessing you let me post the regular photos right now I'm like okay
yeah photos are down images are down right now
oh no all right we're gonna we're gonna talk briefly about uh this guy Gary Gensler he uh came came out with a new clip we're just gonna play it real quick for fun
oh wait sorry yeah we're gonna just play it for fun you know what because sometimes he makes me laugh apparently this guy is just in like
cope mode like he's just in hardcore cope right now he cannot keep bitcoin's name out of his mouth uh he's going on
CNBC or some shit and he's continuing to talk shit uh let's let's just hear what what Gary's got to say today
which is part of part of the attraction since it's decentralized and then and you can't have you can't have a profligate central bank
it's not that decentralized well I know you're saying because of the ETS but but but really you know it's not that decentralized because look how finance
tends towards centralization since antiquity so what do we have we have a handful of three to six core so-called crypto exchange
that's how the ledger and how many times do you have people on this show that say I want to invest in something because how the books and records are kept
I mean Joe really you it's just an accounting ledger a clever that everyone has that everyone has and can't be double counted it's almost immutable
that's that's that's why people think it has in your trust it more than an oracle database or you try that I trust it more than make difference
oh man cope fest over here um all right there's Gary Gensler saying bitcoin just isn't that decentralized I don't really have much else to say to that other than it seems like he still doesn't really get the point uh go ahead Mo
um when we're done talking about scary Gary um I would love to talk about the video did you see that Zuck talking about oh yeah
yeah DP saying that he chose the book of a chose violence I watched a little bit of it yesterday um look I think he probably makes a few good points
um but it's it's his job it's his business to try and uh compete and sell his product and apple is definitely making a massive entry into the thing that he's been working on for the last couple years
you know what are your thoughts so do you agree with him I think he made a lot of really good points I'm not a fan of Zach but I haven't yeah he came in strong yeah so
I have not really used the devices enough to be able to like give you know my accurate assessment of how the technology really stacks up other than I've been watching some reviews
and so I know that things like the field of vision and there's certain certain technical aspects around the way that the vision works that are definitely in better with his product I know that the comfortability factor with the different
what do you call it head straps is is true other than although the vision pro also includes alternate head straps so like I don't know if you can really rely on that one
he kind of acquiesced to some of the what is it the eye tracking stuff he said that they like needed to update that so I don't know I'm sure some of his points are good but like to me the biggest point is is that he has a quality product for a fraction of the price
and it's wider I think I think the the weight is also a real a real difference right now but again what what Apple is going to do right they watched vision pro so what comes next it's going to be the vision it's going to be the cheaper wider version
right so you know I the question is going to be how quickly can they continue to ship on it and ship updates that's going to be the real quick question now and they seem to iterate pretty quickly and you know I mean you can look at the iPhone and argue that sometimes the iterations aren't that big of an advancement
but I would argue that you know they do a pretty good job of continuously advancing their technology and creating absolutely stellar user experiences
so I don't know I think he's feeling the heat I think I think this is probably a pretty big moment for vision pro everybody's fucking wearing them around outside
nobody's been wearing his outside really you know you don't see people rocking the quests down fucking Fifth Avenue so I think he's feeling threatened and he's trying to point out you know that they have a great product too and I think that's fair game
yo we got Jawa and we got QV with their hands up y'all find it out go ahead
I'll go let's see we bought a vision meta quest this Christmas I had been fighting it tooth and nail for a couple years and rather than getting one of those and having a Facebook account attached to a headset I paid twice as much for a HTC Vive that was you know supposedly a better device and and it was in a lot of ways but when we got the quest
my son is the is the primary user he is just completely blown away by both the titles available and a few simple things that I think Zuck spoke to yesterday
like there are a lot of advantages to being able to walk in any room to doing a lot of things that I think are benefits to both of them but I think what we're really seeing here is a war for who's going to have the next app store for VR
so I think the hardware will become less and less important in the next three to five years and it'll really be where are we going to download VR content to an Apple store or to a meta store
for me it's whoever can make it the most comfortable because I wear my quest for hours and hours which took time to build up to because I used to get motion sickness but if it's not comfortable I don't want it that's why I kind of feel like the glasses are the way to go
although that's more AR than VR but yeah
I found a take from DC investor that just pinned up top saying in his video appearance that presents quest like it's a better version of Vision Pro from using both this ain't true
Quest is great for VR games but it absolutely isn't there for serious computing apps used in its warpy pass through Vision Pro doesn't have the games yet but is way better for app use with coherent though blurry pass through it works great for staying present in your environment while focusing on your seeded computing tasks
right now I feel like I want to use my Vision Pro every day I haven't felt like I've wanted to use my quest in months hardcore VR gamers might feel opposite
so there's DC investors take I want to get QV in here as well but I did like the point that yeah what's a big part of what's happening right now is that war for the app developers
and that's what Apple has done so well with smartphones is man they they were able to court and get interest from all the different app developers and get a fucking monopoly on an incredible app store that has just like all sorts of fucking things that most other ecosystems will never have
and that's that's again I've been that was my point as soon as I saw is that this Vision Pro the point of it isn't really retail again wait for the vision that's going to be the retail play this is much more for the builders the agencies the creators the app developers to see the potential of what this compute you know what what can this processor do what what can this new technology do and start playing around with it and dreaming
and wanting to be in that ecosystem and creating things for it that's what the whole fucking point of this is it's basically like a demo of what the computational power and the capabilities are and now you know because they put so much effort into the design aspect of it it's also like a fashion statement
and these are things that Zuck could just never fucking do or at least hasn't figured out yet meta is never never going to be able to do what Apple does in that regard go ahead TV.
Yeah, I mean competing again like apples just it once a software company exclusively and trying to have hardware and ones a hardware company that also has really good software like integration like the chips on the on the Apple quest or Apple quest.
I mean emerge them the Vision Pro is they're all Apple like I don't think people understand like how like that's an M2 running in your face, you know, with the computational, you know, compute that is running on their silicone, you know, like no one can do that except Apple right now.
And so, and it's hard to like, it's been out for two weeks and all of a sudden he's slamming it that it's not this great thing. He, they told you that this was going to be a limited supply and people are at least all the reviews I've seen vast majority of them are raving about how interesting it is, you know, and that they're using it all the time.
And I think, I mean, I would love to be able to just hook up a laptop and not have it's very cool. It's, it's a very interesting like use case.
This is, this is the Tesla moment for VR. That's what it is. Right? So why, what you on was able to understand that no other electric car manufacturer could understand was that the whole like green eco friendly movement of like wanting to get an electric car was even more about the like social status and the style of the car.
And the value signaling than it was about actually making an impact. And Jawa's thumbs downing me here, but that's, that's the fucking truth. He understood that like, if you make it sexy, and you make it cool, that's actually even more important, or at least as important, like you can argue that part of it.
And it doesn't matter. The points the same. He was the first one to say like, shit, let's make a fucking electric sports car, so that you can feel good, you can look good to everybody out there because you're you're driving an electric car.
And it's also fucking cool. He understood that. And this is that's what that's what this is. It's like VR just hasn't been sexy or cool for a lot of reasons, because you got these giant or weird looking goggles that are just, you know, it's not something you would rock in public.
But I like that comparison, right? Prius was out Toyota Prius was out for a long time, right as and I know it's a hybrid and I know it wasn't fully electric, but it was the, even though it gained a pretty big popularity, right, it was still looked down upon everybody else was like, Oh God, you're in a Prius.
Oh man, you get on a highway and you're behind a Prius you like fucking Prius, right and Tesla came out and you were like, Holy shit, this thing is literally beats every sports car.
I think price off the I think Joe is done downing every time we say you on Musk or Tesla and he's anything to do with you. I think he's thumbs down.
I disagree with the takes.
My parents both bought Teslas in the last year, both switched over to Teslas, but they did it because my dad's a fucking bean counter and he's cheap as heck.
Like for them, they're saving a fortune on gas.
I think there was an economic proposition that didn't eventually make sense. Yeah, I think that's cool too now.
But what I'm talking about is originally when they were just getting going, how did they get to where they are today, which is like Tesla's Tesla's worth more than almost every other car manufacturer in the world combined.
It's it's absurd and you don't you don't get there just because like, oh, it's as you're saving a few beans, you're counting a few as being it's like, no, they created a a fucking that's just a superior product that people wanted.
That's fucking it's amazing. So anyway, they also changed the way that people view anything eco friendly, right before it was like, that's what they actually made.
They made eco friendly, like luxurious, which is pretty cool. Yeah. And that's again, that's that's why the vision pro in my mind is the Tesla moment for a RVR mixed reality, whatever you want to call it.
GM nifty Q. He finally made his way in here from say what in the morning.
First thing whipping his cock out on the stage. I mean, it's Valentine's Day. I see I lost my co host role. I know I mean, once once I'm like five to 10 minutes into the show, like I can't do it. It's closed off. It's it's it's it.
All right. Chaz go ahead.
I was gonna ask him, has anybody seen the video the guy with the Apple Pro driving the Cybertruck at the same time? I guess the Tesla. No, but on his planet. Please can it pull over at the end.
I saw it somewhere. I don't remember where I saw it. I was like, what the fuck? There's like, dude, like driving with it on auto auto drive, like cars driving itself.
And he's like, he's got the Apple Pro and he's like, he's got his fingers in there. He's like, don't pinch the shit like in front of him. Like while he's driving. I was like, oh my God, dude.
Did he have big tires too? I remember I just remember it was like somebody driving next to my side and side by side with the arm, like next to you tell that it was that there was a Cybertruck then the Tesla truck.
I mean, people didn't use the text, you know, and drive or like people tweet and drive and Instagram and drive. Right before this, there was nothing. None of this ever happened. Right. So technology like this, like I'm I'm kind of excited to see people on the subway doing this because like it's it's how it every Apple was smart.
Having like the white headphones, everybody had black headphones and then you looked on the subway and you knew who had an Apple product when when the iPod came out and everybody had them. Like it just takes a little shift over and it's a like gift said it's a luxury device that people want to flex in public. Right. That's the thing.
But isn't it also isn't it also a target on your back? Like I feel like you're so immersed in that world. If you go outside, I mean, I know you can see through it, but people that's not going to stop. Again, it's not going to stop anybody carry iPhone 15 is what?
Like you're already carrying thousands of dollars of equipment on you. People are more desperate for the flex.
I feel it's a little easier to maybe like put your phone in your pocket and that's it. Like it's a, you know, it's a lot less tempting to go at somebody and try to like reach into their pants and grab their phone from their, you know.
But if you see some person walking around with these things unaware because he's looking elsewhere, you know, it's just too easy.
Get ready for those stories. They're going to be coming. It's going to be fucking hilarious.
Yeah, I especially in New York, I can totally see it, right?
Yeah, this is the new reality though. Like I don't, I don't think it's happening. The new reality is mixed reality and also GM Biggie Poppins. Happy to have you here.
Y'all, I want to re-ranch it and then I do want to move us on in the conversation.
This is GM. It's the greatest morning show ever. Thank you for joining us here on Valentine's Day. Happy Valentine's Day to you all.
I'm sending you all big hugs and kisses and other weird and appropriate things.
I hope you all celebrate in whatever way makes you happy and that you get lucky.
All right. We are going to be moving into a talk about Eigenlayer and restaking here in just a minute.
Something that we haven't really done a great job of covering. That's definitely, it's a whole thing. It's a whole thing. Big thing.
Really quickly, another thing worth mentioning that did come across my desk is that there's a new token extensions situation happening on Solana that allows you to, I guess it allows a lot of new functionality.
There's a post from 0xmert, 0xmert up there. I think it's the first one I got up in the Xbox. If you want to follow along, he says full expressiveness and programmability is what this gives you.
Interest bearing tokens, confidential transfers, soulbound tokens, automatic transfer hooks, etc. The best way to learn is by doing and then they put together an interactive blog post that you can run code snippets on.
But anyway, so yeah, there's these new token extensions on Solana that does seem interesting. A lot of people calling it a game changer for Solana NFTs.
It says new token extensions let Solana devs incorporate metadata natively into the NFTs. The development disrupts Metaplex's monopoly.
So most like pretty much like the majority of NFTs have been deployed through Metaplex on Solana, I believe. And so this might be adding in competition or other options now.
The new token extensions could help Solana NFTs catch up to those on other blockchains like Ethereum. So some interesting development happening over there in Solana.
You know, Solana seems to be doing pretty well. And we were mentioning yesterday on the show, it does not seem like the downtime on the network really hurt them very much at all.
So I don't know if anybody's got any thoughts or comments on that. But it was like just last week, they were down for four hours or so, four or five hours, they stopped making blocks.
Now prices over $115. All right.
All right, nobody wants to talk about that. So let's talk about Eigen where quantum variant, you shared some documentation with me.
And I know that you've been getting further into this. So I want to I want to give you the chance to set it up if you'd like.
We've had a lot of people in our telegram in our shows, you know, kind of name checking, calling out Eigen saying that they're interested in it.
But again, I don't know that we've really done a great job of covering it so far. And so it kind of got to that point where it's like, okay, I need to get a better handle.
You know, I've watched a couple of videos to try and get the basic idea, but I still don't fully grasp what exactly is going on with the restaking.
So yeah, I want to set you up if you want to jump in on them.
Yeah, yeah. So I'm going to do just a quick history so that we kind of all are on the same page.
We all remember the merge, right? Before the merge, the gas that was spent on the Ethereum network went to the miners, right?
And when the merge happened, ETH went from proof of work to proof of stake.
And the only way to be, which means that the stakers were the ones who were getting the reward at the gas fees that we use on Ethereum.
And to be a staker, you had to have 32 ETH staked to the network to run a node, and the nodes were pretty much replaced the miners, right?
They're the validators on the network. And that 32 ETH, if you were a node staker, right, you were staking, that's natively staking to ETH.
You were earning 3% to 4% of the fees that went back to the network, right? Good.
Nice yield, you know, it's not a lot, but in crypto, but it's consistent and it's very, you know, stable.
Once the merge happened, all these networks started figuring out, like, and before that, LIDO and Rocket Pool,
they knew that not everybody had 32 ETH to make a node and to earn that yield.
Well, we can pull those things, and LIDO and Rocket Pool are called liquid staking.
So you can take your ETH, if you have one ETH, you can swap it for our ETH, which is Rocket Pool ETH,
and now your ETH is being staked and the rewards are going back into that token, right?
So those 4% is going back into that token. You're helping the network by restaking your ETH to the network.
It's called liquid restaking. And so that was built out over the last year since the merge.
They were building before that, before the merge. Once the merge happened, they started opening that up.
And then LIGO, the Eigenlayer, also kind of once that world opened up,
started building what they're calling restaked ETH.
And so with Eigenlayer, the idea is that you take your staked ETH, whether it's native to the network
or it's liquid staked ETH with Rocket Pool or LIDO or a bunch of other ones,
and now you restake it to Eigenlayer.
And Eigenlayer, what their plans are is that they're going to take the...
Because staked ETH is the security layer of Ethereum, right?
There's a couple of billion dollars of staked ETH on the network that is securing the layers.
It's the security layer of Ethereum.
They're saying, well, we could take that security layer and loan it out to other blockchains
so they don't have to build that security layer, right?
If a new blockchain comes around or even some of that are established but don't have the capabilities,
like let's say, say, let's say Arbitrum doesn't want to have their...
to build up this whole security layer, which requires a lot of people staking on their network
to have enough money that they can secure the network,
well, they can just piggyback and use ETH's staked ETH to secure their network
and then their rewards come back to...
No, no, no. I want to pause before we get too much further
because you're going into a whole bunch of good stuff here
and I want to make sure that we're hitting on all of it.
So first of all, great job setting up a lot of these different concepts here.
All right, I've pulled up some numbers.
Over 25%, almost 26% now of all Ethereum is currently being staked,
which is over 30 million ETH and about $80 billion is currently staked on Ethereum.
And what that means, like you said, is that it's basically locked up and not really doing much
and so really, I guess, at the bottom of this is to say we could be doing more with that, right?
So it's just like, hey, we got all this ETH, it's kind of just sitting around,
it's kind of collecting dust, it could be doing a lot more.
NiftyQ is laughing at me.
I'm not laughing at you, sir.
The co-host, he's laughing with you.
I find it, yeah, apparently.
I find it really funny that like out of nowhere we can just like spoof
a additional liquidity in the ecosystem.
That's what I was laughing at.
Because essentially, again, what Quantum is saying is that it was basically ETH, Lido Finance, Rocket Pool,
all of these guys basically said, look, we could have people stake ETH and we'll give them another token.
And that like doubled the market cap or just added extra with no other innovation other than basically giving them tokens.
This is what banks do, right?
But I think you're wrong in that sense.
I don't think, Lido isn't giving you anything.
They're not giving you, I mean, Lido and Rocket Pool aren't giving you anything.
They're just taking the stake, there's already money being generated in the stake.
You're just getting that, right?
What's the stake token that you receive in?
It's just a token, yeah, RE.
RE, is there no market cap to RE?
So the staking tokens are ETH that you put in and then the accrued rewards that the Ethereum network applies to that ETH, right?
So it's the native staking yield that happens on ETH, it's just being pulled back into the R token.
And the fully downloaded market cap of that is 1.6 billion.
I want to try and parse this out a little bit further because what NiftyQ is saying is similar to where my mind goes,
which is that this seems like the same type of spreadsheet magic that banks do where they're only required to hold 10% of the cash on hand
and then they basically multiply it out at an infinitum, which is why you ultimately end up getting into bad situations,
bank runs, banks going under when there's a black swan event or something goes wrong in the economy because they're overexposed.
But the other thing is that it reminds me of the mortgage-backed securities situation
where they kept just chopping up different derivatives to create new investment vehicles
and distributing those all over the fucking place and then ultimately it all came crashing down again whenever there was sort of a black swan event or a crunch.
So I guess that is the question, is this not risking the potential for creating a ton of additional exposure that may or may not break down?
It is worse on restaking platforms because what they're doing is stacking the Ponzi cards on top of each other.
Don't let anybody tell you otherwise, that's what's happening here.
But the thing is that there is native yield on ETH, so staking gives you that native yield.
Other networks also use staking and they have native yield, but they have to pay a higher price on those networks
because they have to also maintain in a security layer like ETH.
And ETH is the most secure layer next to Bitcoin.
And it's the only token that natively is profitable.
And you're paying gas, no matter what you're doing on ETH, you're going to pay gas or even an L2.
So they're always acquiring more money and that's being rewarded back into stakers.
The idea is that these other layers are going to use that and pay for that right to use each security.
And so they're going to pay the stakers in that.
I agree there's obviously once you stack these things, there is security risks.
But I think you have to kind of listen to the way that they talk about these security risks is that like,
all right, everybody has different slashing conditions, right, of why it could go wrong.
And those slashing conditions all have to be met before you can even use Eigenlayer as a platform or release a product on Eigenlayer.
As long as that's being done like very conservatively, then I can see how that could protect a lot of the capital and the problems that would happen.
What ends up happening, though, with these types of situations is that people end up getting greedy and then they're less conservative with their estimates
and then shit that you never would have predicted goes down and it breaks the whole fucking thing.
And then because of how embedded this is into a million different blockchains, all of a sudden it's not just like isolated to one blockchain.
You now have 50 different fucking blockchains and ecosystems that are all crumbling together because there was some mismanagement or misallocation
or some misjudged percentage of some kind of mechanism that didn't do what it was supposed to do.
So anyway, it's interesting.
We're just getting into it.
We have Jeff Jag and Jawa here.
Let's get you in here and then we'll get Jawa.
No, I have an answer and a question at the same time.
So what I'm thinking is what I've read about Eigenlayer is that it's sort of a way to open up availability to staking ETH
and simplifying it across the ETH ecosystem as well as just this whole restaking thing for other blockchains.
Is that not part of the big focus quantum is that it sort of democratizes and opens up availability for staking to everybody?
So you don't have to go through Rocket Pool or one of those other liquidity things and you also don't have to have 32 ETH.
No, no, no. So Eigenlayer is not liquid staking.
Eigenlayer is using staked ETH as its main source.
There's also a thing called EigenDA, the data availability layer of Eigen.
The data availability thing I'm still a little murky on.
So that's where the data that gets stored for like layer twos, they have to normally go directly through ETH and they can do that through Eigenlayer
and go through Eigenlayer, which is also going to ETH, but it's going through the staked network.
So the rewards and the fees that they're paying, instead of going directly to ETH, some L2s might choose EigenDA to pay those fees.
Their fees might be cheaper and the fees can then be rewarded.
It's like going to Costco for your data.
Yeah, I like that. Jeff Jack is trying to make it super simple because that's what I'm trying to get to here is like the very simple concepts and it's easy to get lost in the weeds on this stuff.
But then if you're staking on Eigen...
Sorry, let me just follow back up with this.
If you're staking on Eigen and the data availability will also pay you when you're staking there, is that correct?
It's just a credit from a company that's also trying to build out utility or on the DeFi side, right?
One, Jeff, I'm glad that you brought up a 32 ETH point because that was the initial innovation, right?
Before you, in order to stake ETH and receive any type of yield, you had to have 32 ETH.
So with Rocket Pool and Lido Finance, they were like, no, no, no, you could have a fraction of an ETH and you could be earning yield.
The other part of this is just like it's just a company, an entity giving you a credit.
And then if they can figure out ways that they can make that useful in other things, it's like, okay, give me that gold bar.
And now you have Nifty Q's gold bar credit.
And oh, by the way, I partnered with these people over here that if you take this gold bar credit, you can go watch movies for free.
Yeah, this is exactly what a bunch of other Ponzi schemes sound like.
When you start doing that and again, you start saying like, oh, we spin up a coin that spins you into this other mechanism and then you get a coin for that one.
And then it's just like, that can be scary.
So again, I'm not saying that this is a broken concept.
I'm just pointing out the obvious here is that you're getting into an interesting territory where you're playing around with these financial derivatives and getting further and further out on the risk curve.
And then I want to get into this documentation a little bit to flesh it out before we wrap up here in like the next 10 minutes.
Yeah, I mean, a little bit repeating points.
We saw this in 2008 with derivatives.
We saw this last cycle with FTX.
Financial guys love to repackage money in ways that appear to make new money, but it often has a tendency to unwind in very bad ways.
So just be fucking careful.
So I just want just before we move on, the the idea I get and I completely am with you on the idea of stacking financial assets.
But I think the way I've kind of come to terms with it and my thinking process is more like this, like ETH is iron.
And if you want to build steel, you need iron to start with.
And so you're taking the security of ETH and then you're building your layer on top of that.
Right. And then you can take steel and make something else out of it.
Right. There is always a layer stack in in any processes on the planet.
Right. And there's multiple layers to it.
ETH is just this security layer that the strongest and possible.
And you need to use that to build other things on top of it.
And each one of those things just to kind of understand the risk curve. Right.
Yes. Any of these things can blow up. Right.
But they're all isolated each on their own. Right.
It's not like all your ETH is at risk because one of these things goes under.
It's just that small portion that is a dedicated to that has a small percentage of that risk.
So the risk doesn't compound all the way down.
It literally is separated and isolated because you can choose as an eigenlayer participant which parties you want to restate.
Look, I have no doubt that blockchain technology makes our ability to create more and more complicated and sophisticated Ponzi-nomics and Ponzi structures.
I have no doubt that we can create a Ponzi scheme much greater and bigger than the ones that we had through the traditional financial system.
And that maybe some of these securities that are in there will protect against it.
It's just like how greedy do people get. And we know the space is greedy as fuck.
I am all for finding more ways to utilize and create value from people's Ethereum.
These are more than just tokens. Right.
Like to your point, Ethereum can be used for so many different things.
And if it's just sitting there not doing much and collecting dust, like I'm all for finding ways to extract more value from those assets.
I'm with that. I don't want people to like get me twisted here.
I'm just trying to learn about what it is.
And there's kind of the obvious sort of parallels or concerns around just stacking more and more derivatives on top of each other and spinning up new coins.
So you can go D gen in more ways and then what that does.
But anyway, all right. Let me let me real quick.
Let me just read off some of this documentation to add some additional context and then we'll get some some last thoughts on here.
All right. Eigenlayer is a marketplace for decentralized trust on the Ethereum blockchain.
It allows staked ETH to be rehypothecated. This is alchemy.
This is that's that's what this is.
I was about to say, like even the way that you were talking about steel and iron, it's like, yes, alchemy is real.
Alchemy can create new things, but also there's a lot of fucking quacks in that in that bucket.
But it says it allows staked ETH to be rehypothecated, meaning users can stake their ETH to secure Ethereum and stake it elsewhere without unstaking.
That's like the important magical piece of it again.
Right. So it issues you some kind of credit like he was saying, and then you can go do different things with those credits.
This means that protocols can benefit from the security of the Ethereum blockchain as the staked collateral secures both Ethereum and the protocol.
Users benefit from double staking yield, one from Ethereum and one from the additional protocol that secured the that secured the Eigenlayer.
That's confusing how they wrote it. This is a novel mechanism in crypto economic security that enables securing more than one layer of trust with a single collateral.
Previously, it was not possible to secure more than one layer of trust with a single collateral.
Eigenlayer overcomes the challenge of fractured trust across the Ethereum blockchain.
All right. So those are just some of the high level explanations.
Again, this idea of like just being able to use one collateral to start to secure a bunch of different layers of trust.
I don't know. There's something about it that starts to like I don't know.
Don't you diminish the trust like if you just spread it fucking everywhere.
I don't know. But don't forget the a lot of these blockchains.
Right. Sorry to jump in. A lot of these blockchains are not nearly as decentralized as we think they are.
And this is also a way for and why because it's extremely difficult to be decentralized.
And this is a way to use ETH's decentralization to help other blockchains become more decentralized.
Well, according to Gary Gensler, not even Bitcoin's decentralized.
So I can only I can only imagine what he thinks about Ethereum.
No. Okay. Good point. Let's get Jeff Jagg and Q in here.
Go ahead, Jeff. Okay. So the the I don't think that you have to restake.
I think that there's a significant value in eigenlayer just from the initial stake in Ethereum,
which is on paper the same as staking it somewhere else.
Right. Like it's it's staking Ethereum in if they're in the network.
And so if you choose to just go that far, this could be a benefit to people who are maybe like, you know,
I don't know about going, you know, I don't know.
Like there's there's different aspects to this.
The value add with the data availability is interesting.
That's like that's like kind of like, you know, a sort of a feature for any other blockchain that wants to come in and use the you know,
and Joseph, there's a bunch of things they have to like hurdles.
They have to go through in order to get on, you know, Eigen's restaking thing anyway.
But but that seems like, you know, drawing in other people to restake or other blockchains to restake with is one aspect of it.
But as a user, there's two sides to this. All I all I have to do if I want to use eigenlayer is stake with Eigen.
Is that I mean, that's the way I'm understanding it.
I just want to make sure that's correct. Yes.
And also no, because the crypto community or just human greed or whatever it is that pushes us to get in other folks to continue down that rabbit hole.
Yes, you can stop there to your point, but they never do.
Right. It's like, oh, yeah, we could stop at four percent yield.
But why why don't we go to six?
Oh, and if we rehypothecate this, we can go to 40.
And does that does the rocket pool and Lido are they competitors of Eigen or are they different things?
Rocket pool and Lido are liquid staking.
Right. So you can just move your teeth over to rocket pool or Lido.
And you're already you're staking on the network.
Lido is taking that staking, right?
He's taking my rocket pool and putting it in their staking pool.
And then and then I'm earning the additional yield by lending out.
And then my Lido is going into Eigen layer and then my Eigen layer is going into your mom's butt.
Here's what I'll say about this, like the rehypothecation.
I remember Alex Maschinski, right? Like the owner of Celsius.
He was everywhere. Right. We interviewed him on the network.
He was on every fucking podcast that you could ever imagine talking about rehypothecation and how they figured it out.
And what quantum is getting at with it, which is so fucking true, is that like through this blockchain,
we should be able to find systems that we could potentially do this rehypothecation concept that has only been webbed to.
And that was why Celsius was so dangerous is because he tried.
He came on to the shows and said, oh, this is decentralized all the time when it really was.
It was it was a facade. And so like the cool innovation here is that, yes, with the blockchain,
we could potentially figure out how to do these processes where it's not handled by this is just where it's not handled by Alex Maschinski.
And that it actually functions. Yeah. And well said. Good points.
It's just this is the type of thing that worries me so much about the security implications of trying to scale this into a million different places.
I don't know. Anyway, we have Marty McFly here and then we're going to wrap it up here in just a couple minutes.
I don't know if we've got a link for NFT live coming, but I believe we'll be hopping over to YouTube here in just a few minutes as well.
But Marty McFly, should I ring the bell? Which Marty is it today?
This is confused, Marty. I just want to make sure I'm here and all this stuff. Right.
So we're discussing Egan later, like this, like the single biggest thing out there right now with like billions of dollars.
And we're concerned that it might be a rug or like as shitty contracts or like is garbage.
The principle itself is a Ponzi, just like Celsius and BlockFi are the biggest lending rehypopication, but more centralized services.
Yes. The system itself is a Ponzi. So we're worried about that.
I guess I learned something new because it seems like this is like the place to be and the main thing to be doing.
So I guess I missed all the concerns because it seems like this is where billions of dollars are.
Yeah, there were billions of dollars in BlockFi and Celsius too.
No, like I don't know that just because there's a lot of money somewhere means that it's secure.
But if it's decentralized, then you get like that.
I just got to say, this is a first concern I've heard.
There's definitely Vitalik brought up concerns and they had they talked to there's a couple of good conversations with Vitalik and the Eigenlayer team.
Like there is definitely concerns. And I think the bullishness I have on it is that the team has been addressing and communicating with the Ethereum founders and the Ethereum community trying to address all those concerns and try to abate them.
Right. Like I get that some of these things sound Ponzi-ish and I get that some of these things sound like too good to be true.
And we always think that everybody's just going after a lot of money.
But when you think about twenty five percent of all Ethereum is staked and all their earning is three percent.
They could make a hell of a lot more money buying some Degen token. Right.
But they're very conservative. There's a whole side of crypto that is very conservative and wants a consistent solid decentralized yield.
And Ethereum is the only and go to place for that.
And so stacking on top of that, if those other networks are secure, they will, you know, I think flourish in this market and yield if you're getting another four percent.
Right. It makes it just a little bit more enticing. And you stack that a few times, then it's pretty nice.
Yeah, it's it's you know what percent is restaked. Oh, sorry.
No, I'm saying like Lido and Rocket Pool. Those are definite innovations.
That's when you start continuously stacking aware that head.
So I'm staking Lido pool like I'm not calling them a negative thing.
So anyway, Joe, go ahead, man. Do we know what percent is restaked?
That was my question. There's six billion six and a half billion is restaked with so far with with Eigenlayer.
So they they've unlike blast where you had to have an invite to be able to go on blast.
And a lot of these staking things rewarded to the people who came first and that Eigenlayer just opened up small windows for certain places where it said, all right, for the next 48 hours, we're going to open up the amount and cap the amount that people can stake with us.
Then they shut it down. They reevaluated and see where they're going to do and innovate.
And then in a few weeks they've opened up. And so I think this is the round three just closed on Friday and that got us to six point five billion.
And, you know, they'll open it up again before they go public.
So I think it's just like they want to limit they could keep this open and just have everybody's stake. Right.
But that's not their goal is to do this very conservatively and thoughtfully and to really kind of make sure they're careful with everything.
So that's good. Look, it's good to know.
And again, like we're not we're not trying to just erroneously fud things.
We're trying to ask difficult questions to understand the concepts.
That's the whole point is to learn together.
So shout out QV, especially for coming in here and sharing his experience and knowledge with us today.
Give him some love. Hopefully y'all learned a thing or two about restaking.
We got Marty up here, man.
I want to show on blast. Show me blast.
You are like the big. You think there's going to be a top three three.
I want to be all right. Let's go. I want it red pill. Yeah. Yeah.
I'll give you 10 seconds here.
You know, my least favorite show is the nifty show, but Clemente is OK.
I like Clemente. He did a nice interview with this dude yesterday.
It's a 30 minute interview with this dude that's like more knowledgeable about blast than I am and everything.
But you know, it's not just me, man. It's pretty much the whole timeline.
Like blast is basically saying don't waste these other blockchains and ain't doing shit with it.
Like arbitrum or optimism. And yeah, I mean, it's like as if you guys didn't see what blur did.
They're going to do the same thing.
And then everybody can be like I trade my NFTs on blur slash blast L2.
All the lending is going to be on there for blur and blast and L2.
And then there's going to be all these other things like gambling and perps and all the other stuff that's on all these various L2.
So I don't got to go to arbitrum for for GMX anymore to do anything over there.
I can just do that on that on blast. So it's just going to have all my money.
I mean, I know I personally have a hard time keeping track of where I got all.
You're cutting out there a little bit, Marty. You're getting rugged, Marty.
Well, blast is going to be king of the L2 is just the short of it.
So like I I'm curious. May I jump in real quick?
Like I did see the Cosmo de Medici post an email recently, which is, of course, I'm sure it's motivating a lot of people to look into it more closely.
But, you know, you said you listened to this Clemente interview.
I'm curious if they mentioned what type of consensus mechanism blast is going to be employing.
Is it going to be an optimistic roll up? Is it going to be a C.K. roll up?
Is it going to be a DAG? Is it going to be paralyzed? Fucking it's an optimism.
It's an optimistic. Oh, OK.
So like a copy pasted optimism. So like base. OK, OK. So it's all right.
There's limitations. Yeah. You know, remember that base marketplace for the NFT?
You remember when the NFT marketplace launched on Coinbase and how baller that was?
Yeah. So just like that did that base L2 this imagine blur and blast is the analogy.
So that's not how we got a Coinbase NFT.
The Coinbase marketplace was on E.
He's joking. All right. All right.
I would not doubt that blast has I put a little bit over there and I'm definitely expecting it to go well, too.
I won't be surprised when it does. Obviously, still a lot to be figured out there and something that we'll be digging into further.
On more episodes, everything happening with the blast L2.
Will blast be a top three L2? Will it absolutely melt faces and make arbitrum and optimism look silly?
Let us know in the comments what you think.
But we're about to wrap this show up. Head out into the sunset.
Of course, by that, I mean YouTube with some music. Mo Runda, get in here real quick.
Go ahead. What do you got?
I'd just like to call your attention to the post up in the Xbox.
Yes. A cautionary tale of ENS just for everyone to check out before you log up.
Yeah. Apparently somebody using like my my ENS name or something as their ENS name and it's coming up for a lot of people because of the punctuation.
So instead of instead of so Mo Runda dot E they would put they would buy the actual wallet address dot E.
And so when somebody puts in Mo Runda dot E, I guess the it populates.
That's it. So yeah, thanks for calling that out. Be careful out there.
Go check that one out and educate. And all right.
We do have a link for NFT live.
Let's hecking go. I'm going to go put some love and repost it myself.
Drop some eggplants on it.
A couple last notes here before we wind up this show.
Apparently quick exchange, which is the new marketplace.
It's basically a blur clone over on say I had a small security exploit, had some say stolen.
They've got a rough start.
Everybody pushing back on them for going optional royalties when the community is not really wanting that.
So that's a quick update there on quick exchange.
You can learn more about that up in the Xbox.
And then the last thing going out with kind of a somber sad note here.
Roboto's, which is an OG project that I have been in for a long time.
I've been very bullish on it. I've spent a lot collecting them.
Pablo Stanley, the artist, very talented artist, came out, basically said, that's it.
I ended up selling out of my last Roboto's last night.
Other than I still hold a I think like a top 50 rare.
I'll just guess I'll just hold on to it.
Shout out Pablo, the Roboto's team.
It's probably Grails now, bro.
But yeah, that one hurts.
That one's sad because they were a legit team that was doing a lot more than a lot of people.
Or went out for the Roboto's.
We're going out with a legendary by Joey Badass and J Cole.
We'll be on YouTube here in just a couple minutes.
Appreciate y'all for hanging out with us today.
We'll be back tomorrow with the last GM web three of the week here on X spaces.
But right now it's over to YouTube with us.
We'll be back tomorrow with a special room in the jail with your name.
It's what the poverty bout.
It's all a game of Monopoly trying to cut me off.
An elephant in the room until I fit in my tomb.
An introduced in my tomb.
They say the head coming soon.
Them niggas only multiply.
I should put your fire up in the sky.
They say the legends they never die.
Them niggas only multiply.
I should put your fire up in the sky.
They say they never kill the law.
Ready for whatever comes.
I'll taste the peace and pray that never leave my tongue.
But yet, before long the feeling's done.