We're going to start the show here in just a few minutes.
We will give it a few for folks to filter in.
Get our speakers up on stage while we wait.
Welcome to the lucky lead.
Today is Tuesday, January 23rd.
It is a rainy winter morning out here in Chicago today, folks.
There's sludge everywhere.
It's just generally gross outside here.
It looks like it's going to be that way this week.
This crypto price action is pretty gross as well.
If you've taken a look at the board, in fact, I don't recommend that.
Just don't take a look at prices and maybe revisit in a few days.
But some new airdrops may be turning things around for us.
We're going to break it all down on today's show.
I see some friendly faces out there.
Thank you for joining us as a reminder for any new listeners out there.
We do run this show every weekday, Monday to Friday at 10 a.m. eastern,
covering all the major news in crypto and entities.
I'm your host, Tyler Dee, and I'm joined today by some amazing co-hosts.
We've got Emily Loves Crypto, a Web3 security expert and co-founder of Fullproof Labs.
Logan Hitchcock, editor-in-chief over at LuckyTrader.
He's run from the LuckyTrader account.
He's been covering the space in-depth for years.
And Ghost, content star over at LuckyTrader.
Keep in the AI streets, but still hanging out with us.
Ghost, GM, how you doing?
Just another day of getting dumped on by FTX and Grayscale and all the other industries here.
So just another day at the office.
I think that's the question on everyone's minds right now.
Sadly, I did not have the answers to that.
I'm hoping that you guys do.
Peter couldn't join us today, but we do have Deez on.
He's our connoisseur, our director of Vibes.
Deez, GM, how are you doing?
I guess I'm doing as good as you can when you wake up,
and your network's down 5% every day for six days straight.
We haven't killed ourselves yet, so we're back.
We continue to show how things have changed in the past week and a half.
Just have to laugh to avoid crying, I guess.
Sadly, top tick the entire crypto market by playing Pump It Up on this show.
What was that, a week and a half ago at this point?
One of the longest one and a half week stretches, I can remember.
But hey, hopefully it turns around soon.
Folks, today is a special show.
We've got our new partner, Wasabi, joining us to talk about their fast-rising NFT leverage protocol.
NFT derivatives and perps are as hot as ever.
Wasabi, the clear leader on Ethereum.
We're going to talk to them about how traders can use their product,
some of their recent announcements, season two, points, and a whole lot more.
So we're excited for that.
Stay tuned for the second part of the show.
Before that, on the docket for today, we are starting with a major new airdrop from Magic Eden.
Look at NFTs broadly across the three major ecos.
And then we'll get into our conversation with Wasabi.
Before we do that, though, Ghost, any housekeeping for today?
As always, if you enjoy this show, Tyler does a great recap of the NFT market every morning
in the Morning Minute newsletter.
Look at that pin to the top of the spaces.
Make sure you give that a subscribe if you haven't already.
All right, Ghost, thank you for that.
Well, let's get started here with our top story from this morning's Morning Minute newsletter.
It's Magic Eden, and non-fungible doubt introduced the NFT token.
So the marketplace wars continue to heat up across blockchains,
and now a new airdrop is at stake.
Magic Eden has been consistently building and delivering across the bear market.
They made a splash on Bitcoin, becoming the primary go-to marketplace for traders in that ecosystem.
But unfortunately, during that time, they have lost market share on Solana to the blur-like tensor,
which is promising its own airdrop.
In the last year, we've seen Magic Eden's market share go from 90% to 98%
all the way down to 20% here in these past few weeks.
But now a series of big announcements has been poised to perhaps retake control of Solana and perhaps additional chains.
There's two major announcements yesterday.
One, the introduction of the non-fungible Dow, which will be a decentralized org
to drive adoption of NFT protocols using Magic Eden smart contracts
and dropping that NFT token.
And then they also dropped a teaser video yesterday showing cross-chain support
for Bitcoin, ETH, Polygon, and Solana.
So the former was the primary news, but just a quick note on that teaser video,
I think the expectations that the rumors are that Magic Eden is also going to introduce a wallet
that supports all of those blockchains.
I do think if they can enable swapping currencies and purchasing of NFTs easily
across those four blockchains and NFT ecosystems, that will be a major win.
Now, for the more juicy part, the non-fungible Dow, here is the TLDR.
So this is a new Dow with a mission to develop and drive adoption of decentralized NFT protocols.
The Dow owns and governs Magic Eden's smart contracts across the four major NFT ecosystems.
The NFT token will be a governance token used to control and steer the Dow.
The NFT token will be allocated to the NFT community
and earned by those who use the Dow-governed protocols, i.e. Magic Eden.
And then as for the timing, this is coming soon.
So certainly a lot to unpack here.
Basically, Magic Eden is dropping a token through a Dow
versus on its own, likely for regulatory issues.
The market is already starting to speculate on which assets may be included
in this airdrop with NFTs like Magic Eden's magic ticket jumping 40% on the day.
And certainly those Magic Eden gems are about to get a lot more demand as well.
Well, I've got some thoughts on how big this is, why it matters,
but I'm going to pause, turn it over to our speakers here.
Logan, maybe I'll call on you first.
How big of a deal is this here for Magic Eden?
Super exciting, I think, for everybody.
Of course, when you include the little ticker and a token,
everybody's going to get a bit more excited.
I'm sort of curious as to just how this plays out overall.
Of course, we know that non-fungible Dow is starting with Magic Eden's contracts,
which they've committed to the Dow.
But some of this I was a little confused about in the sense that non-fungible Dow
indicates it wishes to own these open source protocols,
which seems to be an oxymoron and a contradiction in my head at least.
I'm just a little curious about how it moves forward,
about others potentially committing their protocols or contracts
to this non-fungible Dow for you to earn NFT via other marketplaces.
The goal of it is to build the best contracts, the best protocols,
the best tooling more or less for NFT commerce basically.
Are Magic Eden's contracts the best?
Will they remain the best? Likely not.
It'll be interesting to see which other marketplaces, new or old,
or completely out of nowhere commit contracts to this for folks to earn the NFT token.
But all that aside, obviously excited about the NFT token.
The non-fungible Dow, they'll have their own marketplace with its own website.
Effectively, just using the Magic Eden infrastructure.
Is that your read on how this will play out?
That wasn't how I read it.
I believe some of it may still be open to interpretation.
More or less, I think the non-fungible Dow is just the oversight
of these particular smart contracts and protocols.
If and when you use those that have been committed to the non-fungible Dow
like Magic Eden suggested it was doing, then that's when you would earn.
I don't think there will be another marketplace or anything like that.
You would be earning NFT just by trading on Magic Eden.
Let's say, for example, if I'm interpreting this correctly, I should say,
if OpenSea committed their contracts to the non-fungible Dow as well
and open-sourced them, then you would also be earning when you use that.
That was my read on yesterday's, although I could be off.
Interesting. We'll certainly see what more details we get here soon.
Deez, maybe I'll throw it over to you.
I'm curious for your reactions to this.
Perhaps how much have you used Magic Eden over the past few years?
Do you think you are positioned for a hefty airdrop here?
I mean, I honestly haven't done more than maybe five Bitcoin worth of volume
through Magic Eden, so I don't know how well I'll be rewarded for that.
I haven't really used it for non-ordinals trading.
Yeah, I'm kind of in the same camp as you, unfortunately.
I didn't do a whole lot of NFT trading on Solana before Tensor, to be honest.
I've done a bit of ordinals trading over there here these past few months,
I didn't expect to get this airdrop before Tensor.
I thought, for sure, when I was buying Tensorians,
that I was going to get a Tensor airdrop before this.
That's an interesting wrinkle.
I think we've seen the price of Tensorians get hammered,
to say the least, over the last few days, too.
It's certainly a more complicated ecosystem over on Solana right now.
With this news, specifically, then we saw Tensor, the team,
nerfed some points last week.
I mean, the whole Tensor board is just so heavily farmed right now.
It's very difficult to really have a read on what's organic buying activity versus...
I didn't realize they nerfed points.
Is that why this shit ducked so hard?
Because when I was doing the pod last week,
I wasn't really keeping up as much with the day-to-day stuff.
They actually nerfed points because that would make way more sense
why the price just shit the bed 30% versus Solana.
Yeah, I believe that's what happened.
I don't have the full details. I'm not in that discord.
But as I understand it, some of those low-price collections,
like the Soul Maps, which were...
Every day, they were number one in volume.
It was basically trading as a stablecoin.
I think they nerfed points for that collection,
and perhaps a few others, which tanked the prices of those projects.
I think the Soul Maps are down.
They're at 0.25. They're at 0.4, 0.45.
So pretty substantial decrease there.
And I think that's also what drove some of that dump in the Tensorians,
and they were holding up in the 90s there for a while.
So I think some unsatisfied users there.
And now we've got this Magic Eden twist.
I mean, it does feel like a Magic Eden on Solana needed to stop the bleeding.
I'm looking at the chart over on Flipside right now,
and Tensor's market share has just been steadily climbing up for a while now.
And it was a market that if they want to continue competing,
and they need to pull out their tricks.
Ghost, maybe I'll throw it over to you.
Curious for your reactions.
Are you going to be getting much here?
And then maybe we can get into...
Is OpenSea's hand going to be forced?
Are they going to have to drop a token?
But curious, what's on your mind?
I'm probably in the same camp as you guys.
I have not used Magic Eden much until recently.
But I also find it funny how easily I have switched over
to checking the Magic Eden charts every day
and just using that naturally.
We used to just look at OpenSea every day,
and then that moved to Blur.
And now that most of my trading has kind of moved on to Solana
and Ordinals over the last month or so.
I've just been looking at Magic Eden.
It's been a good experience.
And I also find it interesting that they're dropping through the Dow.
And I wonder if other companies will become more interested
in dropping a token through a system that might
shield them from some regulatory issues like that.
If that's even the reason for doing that.
I would assume that's why they're doing that structure.
Yeah, this seems to be kind of the way,
the roundabout way that you can do a token.
I think certainly we've seen other protocols
who are more US-based do this in similar ways.
I'm trying to pull up some comments here.
I think Marco weighed in here on what happened.
but some farmers rage quit and dumped their tinsel rings.
So that kind of led to some of that sell off.
Emily, I see your hands popped up.
What are your reactions here?
I'm pretty convinced at this point
that OpenSea doesn't actually have any interest
in regaining market share.
They're just kind of right into zero
while they plan to shut down.
It just doesn't seem like they've got any ability
to really reclaim the market or any desire to.
They're just not participating in the way
that you would expect someone who's aggressively
attempting to defend their position.
I've been looking into dropping tokens
as like a way to incentivize adoption.
And it's honestly just not that hard
to get around in a regulatory sense.
You just have to run the tokens
through a company owned by,
or a company registered in a country
that is not the U.S. in essence.
And it's probably good if there's like a middleman
in between that owns the company that is not in the U.S.
And that's either a subsidy or you're a sister company.
And I mean, Imagine, OpenSea certainly has
a lot more eyeballs on it than
But at the same time, there are ways to legally do it
that are not going to guarantee you jail time
or enormous regulatory scrutiny.
You just have to be willing to follow those rules.
And they've had so much time
and Airdrop as a mechanic for adoption,
especially in competitive market,
So yeah, I just don't think OpenSea has any plans
I think I would be pretty greatly surprised as well.
The folks kind of wrapping up this discussion,
we've got now that the Airdrop landscape is thick
So we've got Tensor, we've got Frame.
Frame is cool that the points are starting to,
the token will be non-transferable,
We've got Blur and Blast coming in May.
And now this NFT token in the mix.
We'll find out soon, hopefully, what soon means
and when we'll actually get this.
But some big potential stimulus options here
for folks who have been grinding the NFT streets.
Well, I want to get to our next story.
It was a big day for ordinals on a couple of counts.
So one, the Sotheby's natively digital
and ordinals curated sale.
That series of auctions closed yesterday.
We saw more than 15 Bitcoin spent on just the top five pieces.
So some of the notable sales,
that Quantum Cat's Genesis Cat closed at 6.3 Bitcoin,
We saw Deslucre say it's benediction from between worlds closed at 2.25 Bitcoin.
Shroomtoshi, the inscription number 21 for 2.3 Bitcoin,
a black rare sat for 3.9 Bitcoin,
some big rare sat sales, another rare sat sold for 2.7.
And then interestingly, a node monkey honorary sold for 0.024 Bitcoin,
or 0.24 Bitcoin rather, sorry,
That was an interesting sale there for me.
But that was not the only notable action on Bitcoin yesterday.
We saw that surprise airdrop from RSIC met a protocol land
and several Bitcoin NFT traders wallets.
It dominated market action on the day.
The 21,000 supply NFT collection tied to the Roon's protocol
ran as high as 0.036 at peak.
It fell back to around 0.025 this morning.
I think it was at 0.028 before the show.
Still a solid $1,000 plus STEMI to anyone who received it.
As for the NFTs, they are tied to KC Rotemar's upcoming Roon's protocol,
meant to be the first protocol allowing fungible token trading on Bitcoin.
For these RSICs, they will actually mine Roon's once activated.
There's a series of rules outlined in the white paper.
So go check that out if you want the details here.
But overall, the expectation is these RSICs will eventually lead to a fungible token airdrop
once the Roon's protocol is live.
At least that's my interpretation of what is happening here
and what's driving this demand.
I'm curious for our speakers here, reactions to the RSIC.
Logan, maybe I'll go to you first and I want to get Desus' thoughts as well.
What's your read on this one?
This is really interesting for a couple of reasons from my perspective.
One, first time I think it won't be the last, of course,
but first time we're seeing a distributed airdrop to ordinals users in this way.
A lot of people, not all, but a lot of people holding things like Bitcoin puppets received.
I think other projects like Bitcoin Frogs as well.
I don't know that there was a published criteria.
At least I didn't see one.
And I know some missed out on that.
But that's really interesting because that's a meta that's been transforming on ETH
with Pudgy Penguins being allocated a handful of things.
And it just kind of adds in a layer of floor stability to some of these collections,
like puppets bounced, I think, a little bit yesterday.
And some of that could be as a result of others seeing this being a culture airdrop type thing moving forward.
So that was one angle that I was interested in.
The second part was just the price action on this.
Again, 21,000 of these free airdropped to the community
and almost instantly traded for thousands of dollars or at least $8,000,
which showcases the excitement for whatever may come with this next protocol from Casey Rodimer and the runes token.
So what it ultimately ends up in,
you activate the RSIC, you're mining these tokens,
what the activation and the allocation ends up being,
and whether or not it's going to be worth it to hold versus sell is going to be very, very interesting.
I still need to dig in more.
I'm sure people are doing math and all sorts of crazy things,
layers above what I could be doing at this point in time,
to tell us whether or not it makes sense to hold, sell or whatever the case may be.
But just really interesting to showcase the excitement and just how financially incentivized folks are
to participate in what might be something really, really big for Bitcoin and the ordinal ecosystem.
Yeah, a bit to unpack there. I mean, certainly on the puppets,
I think this is a strong vote of confidence for that collection,
which is still kind of in its infancy and kind of finding a standing in a foot here over on Bitcoin.
We saw it dip all the way to .02 yesterday after the airdrop,
but now back at .026, that's a pretty strong rebound there.
But then, yeah, if you have one puppet, a lot of those folks got an airdrop worth more than the puppet now
because these are trading at .027.
I saw someone say on Twitter that when you're dropping a new product,
the best outcome is for the Twitter audience for your user group to be polarized 50-50,
where 50 percent are super into it and 50 percent absolutely hate it
because that's how you drive max adoption.
I think that's what we're seeing with RSIC.
There are the folks who are just scooping these up like mad.
On the other hand, we've got folks who are trying to thud them to death.
I think one of the reasons for thud.
They called themselves the first runes product.
I forget the exact words. I don't have the white paper up.
Clearly, the runes protocol isn't out yet,
so the first tokens do not exist, so you can't really call yourself that.
But otherwise, for me, this is a little bit harder to thud
and I'm giving it away for free.
I think the team kept 10 percent of these, rather so 2100.
They caught a little bit of thud for that as well.
I think right now, none of us know the details.
I don't know the details.
There's this rampant speculation on what these actually could be,
what type of tokens we're generating right now.
I think if more details are released,
we're going to see some major price action one way or another.
Deezer, you posted about these yesterday.
You've been somewhat active in the ordinals ecosystem.
Have you been watching these closely?
Any read on this project from your side?
I self-transferred them to turn them on
and I will not think about them again until they go to zero
or the price goes higher.
Normally, I would sell something like this immediately,
but given Casey's, I don't want to say history,
but just given the fact that this feels a little unique,
I just decided to hold onto it.
I got lucky with the puppets too.
I think I know people who got puppets but didn't get them as well.
I know someone who had over 10 puppets and they didn't get one.
I don't know exactly what the airdrop circumstances were,
but I felt like I got a little lucky and I should hold it just to see what happens.
Yeah, so I had eight puppets in two walls and I got one of these.
I've heard stories of folks who had one puppet get two.
I think it's very unclear exactly what the drivers were,
but similarly, I went out and market bought a few of these.
I'm going to play this game for a bit and probably similar to you,
I'm happy to add that to my bio and just going to let these little miners run here
for the next foreseeable future.
Mason, you've been throwing out some emojis.
I'm curious if you've got thoughts on the RSIC, any of the reactions.
What's on your mind for this one?
Yeah, I have a few things.
The Bitcoin puppet side, I think we're just now seeing people like they're getting popular,
but I think since they've launched, you've been seeing people
that are deep in the ordinal community buying them.
I think you'll see more airdrops for that community
just because they're so ingrained in the deeper, more core ordinal community.
I'm also curious how the airdrop stuff works.
Just the mechanics of actually doing an airdrop to specific collections
has to be so much more difficult than it is on ETH or like Solana or whatever it might be.
So I'm kind of curious how they have that whole thing set up.
Yeah, I think that's become part of the bull case,
is some of the technical feet to pull off this project.
With the airdrop, I think it's tied to inscription 126, I think is the parent.
Again, I don't know the full details here, which also I believe is tied to Rakotoshi.
Again, I don't have confirmation on that,
but that is another one of the leading theories out there that Rakotoshi,
also behind Notebunkies, is tied to this, which is an interesting twist.
It's also led to some of the FUD.
But the technical features behind this, the ability to mine these runes,
I think a lot of folks are at least somewhat impressed with,
which has also helped some of this go.
So I'm curious for your reactions to RSIC.
Are you holding any of these, thinking about buying?
How are you thinking about this?
Yeah, I'm kind of in the same camp as these.
I'm not sure if it was for my Notebunkies or Golden Ratio purchases or something else.
I saw similar things where I feel like some people who got Notebunkies didn't get any.
So I don't feel like anyone really knows the true formula of who was allocated here,
which is kind of a cool way to distribute it, in my opinion.
It's kind of added to the intrigue a little bit.
But I'm just holding, I'm mining like you.
I'm deep in the mines, just chilling and seeing what happens
because I think they are a little bit interesting
and always down to do a little mining.
Just a couple miners, you know, going about their business.
It's more exciting than farming for me.
So I'm happy to go this route.
We'll let Logi handle the farming for us.
You know, we talked about Bitcoin puppets.
I mean, QuantumCats, arguably the biggest winner on the day.
What kind of price action are we expecting now on the QuantumCats
after the Genesis sells for 6.3 Bitcoin at auction?
Logi, I'll put you on the spot.
Where do you think these things are going to open up in the first few days of trading?
I think, especially with the Bitcoin feeling a little bit cheaper,
it's probably maybe a time for a 2 or 3X almost immediately would be my guess.
I know we expected something similar with cheapness surrounding crypto undeads
But this time, I don't know, everything sort of feels right.
I don't have any of the weird feelings I had about undeads, for example,
some of the vibe type stuff.
The brand and the equity that they've built with goodwill
and I think like a legitimate reputational stuff on the line here.
I think these are going to trade 2 or 3X higher pretty quickly out of the gate.
Yeah, I think the vibes are pretty solid.
I think other than the 0.1 Bitcoin mint price,
which is the only potential negative factor here.
I am curious what price action is going to look like.
Is this going to be node monkeys
or is it going to be pizza ninjas and shadow hats
where we see, you know, a brief spike and then down only.
I mean, pizzas are down 50%, shadows are down 75%.
Likely next week, I guess we're going to find this out.
Well, I want to get to a few other quick topics
before we talk to our friends over at Wasabi.
But before we do that, let's read the news.
Today's top headlines powered by Lucky Trader.
Trading volume jumped at $30.8 million on Monday
Leaders saw some more green on the board.
Valeria Genesis lands, Skyborn gems and duplicators led top movers
Cool cats and me-bits also saw double digit gains.
Doodles briefly ran close to a 3 floor
before pulling back 30% to 2.4% after a big farmer dump
and that farmer still has 200 plus left.
Lucanets dropped his second teaser in two days,
this time with a pingu huffing sunium,
likely indicating an announcement is coming soon.
Wasabi introduced wrapped crypto punks to their purpose protocol
allowing users to go long or short,
the most valuable PFP on ETH.
As we talked about, RSIC dominated action on Bitcoin
with 77 Bitcoin and volume floor at 0.028.
Node monkeys at 0.18, puppets at 0.026.
Solana NFTs were mostly red again with crypto undeads
Sol, Sujiko warriors down 5% around 6.7
and MadLads down 5% to 158.
Magic ticket NFTs were the primary winner on Solana jumping 48% to 4.2
as traders speculated on their use in the potential Magic in airdrop.
Then Solana's leading NFT marketplace Tensor announced their own
price lock feature, allowing traders to buy and sell options on NFTs
And then in broader web 3 and crypto news,
crypto majors are down big again this morning.
Bitcoin down 4.5%, 38,950.
We saw Alt-L1s down even more.
And Tia at 14, 44 down 10%.
We saw Hi-Chain, previously NFT World, had their testnet go live yesterday.
And then Animoka Brands, a subsidiary Darewise,
is partnering with Animoka Japan and Honda
for vehicle gameplay and their upcoming AAA title, Life Beyond.
All right, well, those were the big headlines.
We got to talk about this Doodle's price action here just a little bit.
Logie, maybe I'll throw this to you first.
As a Doodles fan enthusiast,
I believe you traded in and out of that collection a little bit here.
You know, for a little while yesterday,
it felt like this was some real organic demand.
Has the narrative shifted after we saw this farmer dump?
Was this all just farmer driven?
What's your read on what's happening in the Doodles project right now?
I think it's super close to the transactions of the run-up yesterday.
My timeline was filled with some anecdotal speculation
regarding who knows what, right?
Which is always the case when there's a run-up.
And then I saw the farmer stuff from overnight.
I think I saw a tweet from NFT Stats about,
you know, the purchases that were taking place here
and the unique wallets purchasing that made this feel,
at least my interpretation of that tweet,
was that the initial run-up there was a bit more organic
And then, of course, though,
when you do have so many of those little smaller wallets participating,
you're at the mercy of those who are farming
and who have accumulated many, many, many over the last whatever,
however long to accumulate those blur points and beyond.
So it still feels like a scary game.
I think it's kind of mixed, Tyler.
There's definitely a portion of this which was authentic,
some of it which, you know, was perhaps less so
to aid those that are farming and playing a different game.
Nevertheless, I'm still feeling pretty good about Doodles.
Again, I don't have an OG Doodle.
I do have some Doodles ecosystem stuff,
which was nice to see go up yesterday.
My Genesis box isn't useless.
Well, it might be useless, but it's not worth zero,
neither for my duplicator.
And I even checked out the Doodles 2,
the Wearables marketplace yesterday,
which seemed to be quite stagnant.
But nevertheless, it still exists over there on flow.
So you told me about that in our group chat.
I actually thought that was an amazing beta play
Let's just go straight to the Wearables marketplace.
I imagine there had to have been wearables
that are like a dollar or something.
What was the floor looking like?
Yeah, actually, I'm pulling it up right now.
I think the floor yesterday for items that I was looking at,
it may not have been the entire collection,
it was around like the $7 range for select things.
One of the things that I was keeping my eye on
was like the studio beta pass.
If you'll recall, that's what was required
to sort of like get in the duplicator
And actually, so when I looked at them yesterday,
sort of around the time of that announcement,
I believe there were a few were on the floor at $7 US dollars
or FUSD flows stable coin or whatever.
Now, they're $15, so 2WAC.
I don't think there's a ton of volume here.
So, you know, pick that with a grain of salt
just because, yeah, I mean, I see like,
this is just a cursory scroll,
but I'm seeing like maybe five or six sales
tons and tons of listings in that time.
Okay, there's more than five sales.
Looks like somebody swept at $12,
$11 and $12, one wallet swept like,
I don't know, 10 or 15 of these.
So, somebody making a play on that,
but just, you know, not enough liquidity over there,
not enough really taking place,
though you would be primed for a 2X
if somebody else were to come in and you could get out.
Well, kudos to you for even thinking about it.
It was totally falling off my radar.
Deez, I'll throw it to you.
I think you also posted about the Doodles price action
saying they're moving like they're getting acquired by Disney.
What's your read on Doodles?
Do you think they have a shot to come back to the,
you know, to be in line with the mid-tier PFP sector,
more than like five to seven ETH range or higher?
Are you buying this run up here?
Yeah, a couple of things.
First, I think Pudgy's going to almost 20,
really kind of put some life into some of these
almost dead collections like Cool Cats and Doodles
and some of the others in the mid-range.
I'm not really chasing Doodles here at 2.3 or 2.5
I think the opportunity was, you know,
maybe to buy when Go West swept a bunch
because maybe he knew something.
I honestly don't know if, I don't like,
I don't want to shit on any community.
So I'm not going to say anything mean.
I just want to chase them at 2.4 personally.
Yeah, I think that's very fair.
I think it's fine to be in the like,
I mean, Doodles famously or infinously
just hates to communicate in public.
Apparently, there is a big collab
coming at the end of this month.
Whenever that news drops, that'll be big.
But it was hard for me to put too much weight
behind this move as a pure signal that Doodles
is gaining more market attention
versus what's just happening across PFPs.
I think you kind of touched on this, Deez,
but after the pudgy run, here's the,
there's 10 projects that saw double digit gains
Campi pandas up 64%, cool cats up 56%,
Doodles up 42, Saffi Seals up 41%,
Rec Guy up 27%, Chippers up 24%,
Mochaverse, Pixelmon, Oniforce also up 10 to 20%.
So plenty of projects saw these gains.
I think there was a bit of a narrative out there.
So what's the next 2021 project to pump?
And folks just kind of went to front run that.
We've seen these types of broad pumps before.
And sadly, sometimes they just retrace
almost as quickly as they go.
Hoping this one stays a little bit longer.
Quickly, I want to get to Wasabi here in just one second,
but Logan, we chatted a little bit.
What do you think the pudgy announcement is?
The teaser is daily right now.
What do you think is behind the veil?
What's going to be the news?
So I was looking at some of the comments
to the tweet that we posted yesterday,
which I can get pinned to the top.
And I saw some folks talking the speculation
and the teasers here down as just like memes.
I'm not ready to do that.
I really do think that if token is the play,
that's the next announcement.
I know we've mentioned it a handful of times here on the show.
Luca was on the show talking about
wanting to make money for holders,
wanting to drop things or do things
when it was in the best interest of holders.
this big, big run up for pudgy penguins
is the most beneficial time for holders
to kind of get even richer than they did
in the last few weeks here.
And it's a time when they are at the very top
of the food chain, both in terms of attention
and in many ways in terms of price as well.
Of course, not literally, but they're up there.
So that's what my gut feeling is, Tyler,
is like if there is to be a major announcement,
I know we're expecting overpass
and those types of things as well.
I think based on this run up,
if it were to be overpass,
you're seeing price down in the near term.
And again, this is just all my opinion.
I don't own any pudgy penguins assets
I have a pudgy toy up on my desk rooting for everybody.
Sorry to the pudgy fans in the audience,
but I think it's either token or down in the near term.
Oh, they're going to be coming for you.
I'm diametrically opposed to Logan here for what it's worth.
I do not think a token is coming right now.
I do think a token is absolutely coming
at some point in the next two years.
I don't think this is the point of the market
where it makes sense to drop a token.
I think Luca is smart and he's going to time it well.
But Deez, I want to get your thoughts here too.
Deez, curious for your read.
Do you think the token's coming now?
What do you think the announcement might be?
I don't think a token is coming now.
I think the dimension airdrop
and some other stuff that might happen later this year
is actually more interesting
than if they launched a token themselves.
I think being able to be onboarded into new communities
that have very high upside
while not diluting your own community
I think we've all seen how EAP coin has played out.
You basically got one liquidity event for the token,
which was the other side sale.
You've been holding this token down miserably since.
And I don't think we really need to go through that experience
again all for the sake of getting holders some instant money.
Yeah, I'm totally with you.
The DYM airdrop is a huge twist here
in that this is the first that many think will be of many.
But if Pudgy does their own token,
you can kiss any future token allocations goodbye,
So you would be effectively forfeiting those,
which is another wrinkle.
Emily, I'm curious for you to read.
Yeah, I think it could be a lot of things
that are a little less common in the NFT space, right?
Like maybe it's a new toy dropping at Walmart.
Maybe it's a new big box customer to distribute through.
And I think it's pretty easy to forget that they do have
that active distribution channel.
And that is uniquely interesting about Pudgy Penguins
compared to everyone else.
I do not think it's the right time for them to drop a token.
So I think an announcement along those lines
could make a lot more sense considering the direction
the project's been going.
I'm curious for this to be a toy announcement,
a re-up at Walmart, perhaps a launch at Target,
a store I spend way too much time in these days
Aaron, your hand popped up.
I'm curious if you want to weigh in on the Pudgy discussion
I think they've been killing it with their toy sales.
And I don't think there has been an announcement
of the actual IP owners, the NFT owners,
made through the toy sales.
And I would be very curious to hear that
or learn about that soon.
And I think, to Desus' point,
they're creating enough value to their holders,
whether it's the toy sales
or it's these token airdrops from other projects
that I don't think they have to go the token route just yet.
Yeah, I'm totally with you there.
I think a bullish announcement on the details
of what some of the Pudgy owners who had their IPs
for the toys, how much they have made,
if that's a decent number,
that could absolutely lead to the next level up
and folks are going to be scrambling to try to get their PFPs
and project overpass and used for these toys.
Well, Aaron, you're close to the Purge market.
Maybe we can kind of just start diving into our discussion.
I think Pudgies have been one of the volume leaders
So what kind of interest have you seen regarding Pudgies?
What are the kind of the leaders in open-purps interest
that you've seen looking at the Wasabi data?
Yeah, Pudgies have been extremely bullish.
Looking at the data right now,
most of the open interest is actually on Pudgies
It's actually 99.12% longs.
And that's one of the beautiful aspects of Wasabi
is where the traders on Wasabi is trading against the market.
They're not trading against each other.
So the protocol itself can support 100% one-sided markets
if people are just extremely bullish.
But overall, I would say like the Pudgy open long interest
or like people being bullish Pudgy and the price action
really influenced the rest of the market.
We're seeing everything like I would say 85%
of the open interest on Wasabi is on long across collections.
Wow. Well, that's certainly a very interesting data point
for folks who want to figure out how to approach the market
or looking at different collections,
a kind of garnering market feel.
We kind of dove in and I want to maybe back up
as we get into our discussion here.
So some pretty big news just what a few weeks ago now,
maybe a month, hasn't been a month.
You all launched your NFT Purbs product live for the public,
kind of walk us through what went into that launch.
So a lot of bled sweat and willpower kind of went into that launch.
We've been in the space, right?
We first launched with our options product for eight months.
We were the first NFT options protocol.
We basically created that market from the ground up,
had a lot of experience talking to traders, talking to LPs,
really, really understanding what these different users need
as well as what the market needs to have a more liquid trading
experience for everyone involved.
And then we had like the right relationships
to make the correct business development
and like technical arrangements to actually come up
with the right architecture, deploy the product,
I think exactly three weeks ago.
And we're very grateful for the traction we've achieved so far.
I really think we got certain things correctly this time.
So like we're seeing the traction we're seeing.
Yeah, I've seen some of the numbers.
It's been very impressive to see the amount of volume
traded on your platform since just in the first few weeks.
I think higher than I expected just to be transparent.
I didn't know how much traders in this market
would understand to be ready to dive in,
but I've been blown away.
Maybe for our listeners who aren't as familiar,
give them a quick walkthrough of the two primary products,
the options, the perp side, perhaps how they're different.
So first of all, to speak about the volume we've seen so far,
we're building market maker infrastructure.
Hedging is a core piece of ability
that you see in all the markets that have grown substantially.
So our hope is the infrastructure that we're building,
the hedging mechanisms will allow more market makers
to enter the NFT space and pump all our bags.
But separately, to your point, we have two different products.
Options are basically you can long, short, similar to perps,
but they have time-based liquidation.
So you don't get liquidated if the price drops a certain point
or if it goes above a certain point.
You just cannot exercise your option after a certain time.
And they work amazingly for announcements, right?
We know doodles are having an announcement soon.
We know pudgy penguins are having an announcement soon.
If you want a long and short up until the end of that announcement,
and if you don't want to get liquidated in the meanwhile,
I would definitely go with options.
Separately, perps, they have price-based liquidations,
but you don't have to be concerned about liquidations.
So they're better with more general trading and hedging.
And they have better price efficiency,
so you don't have to care about strike prices.
You just long with leverage.
And if the price goes up, you profit.
If the price goes down, you profit.
And there doesn't need to be a big price difference
for you to actually realize profits.
Yeah, it almost feels like the perps are a little bit more approachable.
You have a little bit more optionality
in how you can enter and exit versus options.
So I certainly see that upside.
You know, some folks may not be interested in the nitty-ditty
and the details of this, but I think they're important.
I think there was some concern after the NFT perp V1
with that protocol kind of shutting down
and not throwing any shade at them.
But, you know, virtual clearing versus asset-backed clearing.
So maybe you could just take some of us quickly through
like how the perps actually work, you know,
how flooring protocol is tied in here
and kind of what makes the wasabi perp product different.
So the reason why we started with options
was that there wasn't a liquid NFT fractional market
for us to settle trades on.
And how the perps work is very different
than virtual AMM-based perps
that we've seen so far in the market.
We're asset-backed, meaning that every position
is actually backed by each asset that are in the position.
So like it's very similar to just buying and holding.
The difference is you're actually like wasabi's products
are also like for smaller traders
that might not have enough capital
to deploy $30,000 on a penguin.
So what we do is if you have $100 or more,
you come in, you borrow some additional money up to 5x.
And with that money, you go purchase some fractional NFTs.
And that is a long position.
You keep those fractions within your position
If it goes down, in order to pay back the loan,
we have to liquidate you after a certain point.
But if it keeps going up,
you actually profit from the position
as if you're holding the actual asset.
Well, I think that's a helpful explainer.
And maybe just taking a quick example, Aaron.
So myself, personally, I've taken a look at the protocol.
So last week, long pudgy penguin for let's call it,
you know, 0.1 ETH at like a 15.5 floor price.
What happens behind the scenes?
So what is wasabi doing to effectively orchestrate that trade?
I think this will help kind of paint the picture
for some folks on how the protocol works.
So once the trader comes in
and they want to long pudgy penguins,
let's say they take 5X leverage and they deposit 0.1 ETH.
We give them, we have these vaults on the back end.
You can go to our website and press vaults,
press earn on the top left hand corner
and you can see all the vaults.
The ETH vault right now is earning around 24.5% interest annually.
And what that vault will do is once the trader comes in
and puts in 0.1 ETH and takes 5X leverage,
the vault will give them a 0.4 ETH loan.
And with the aggregated amount, with the total 0.5 ETH,
we would go and purchase micro pudgy penguins.
So fractional flooring pudgy penguins from the market,
from the open market on the Uniswap pool
and hold them as collateral.
So with the 0.1 ETH that the trader had,
they now have exposure to 0.5 ETH worth of pudgy penguins.
And as the price increases from let's say 10 ETH to 20 ETH,
But because of the 5X leverage,
instead of just getting a 2X upside,
the trader gets 10X upside because they took 5X leverage,
So thank you for walking us through that.
Now maybe pulling back from the details of the protocol,
I really wanted to hear and explain.
Hopefully that helped a few folks
who are wondering exactly how this works.
Let's talk some recent news.
So you've been adding new collections to the protocol.
You just added wrapped punks.
I mean, that's a big one.
What have you seen so far?
Have you seen much interest?
And then maybe second part of the question,
what does that process look like
to add new collections to Wasabi?
I'll talk a bit about the technical
of how to add new collections.
And then I'll let Mason chime in
on what it actually takes from a user perspective
and what we care about before we deploy new collections.
But basically, Wasabi is a turnkey derivative solution.
It takes us a few seconds and $20
to deploy any new pool for a pair.
We just need deposits for that pair.
So to how our product works on the back end,
we're giving out leverage.
And in order to give out the leverage
or the long side, we need ETH.
For the short side, we need fractional tokens
because when you're shorting,
you're borrowing the fractional tokens,
selling them to the market.
And all we need is deposit commitments
and then we can get the pair up and running
in like 20 seconds with $20.
Mason, anything you want to add there?
I mean, so on the launch of the punks,
we think this is an absolutely massive unlock, right?
This is the first time, really,
that anybody's been able to get punk exposure for $100.
And I think that takes a little time to build, right?
Like I was speaking with Aaron yesterday,
people have been able to afford them, right?
Like people have been able to trade in and out,
and then people are familiar with trading them,
so they just came over and started trading perps.
With punks, punks have been for so long
this thing that people haven't been able to get exposure to.
So I think that it's going to take a little time
for people to actually like think about the thought,
like even have the thought of trading them, right?
But it's an exciting thing to see.
Yeah, no, I think that really hit home with me
and my wheels started spinning.
As someone who follows the market reports on the market
but is priced out of punks,
I just kind of cut them at an arm's distance
and actually trading the collection hasn't been top of mind.
But now it's possible, right?
So if you see, if you're following the news,
you see the floor starting to thin out,
you can position yourself to make a trade
with that information, with .1 ETH.
You can still make a trade, right?
And I do think that's exciting.
I think it's going to take time to develop and mature a bit.
But man, as I think about an upcoming bull run cycle,
it will be fun to have punks exposure,
as someone who may not be able to have a full one.
Yeah, and I think it really unlocks
like the ability to create a portfolio
that you've never been able to create before, right?
Like you're priced out of punks,
you can never get that exposure.
You could never get that exposure previously.
So like you make a portfolio of like things
Now you can actually go like,
oh, I want to put $1,000 into punks,
I want to put $1,000 in the board apes,
like whatever, you can like diversify your NFT portfolio out,
which should help, I would think,
like the broader swings, right?
Because you won't see people like getting in and out
of like one collection just for a pump as much,
like they can diversify it.
Yeah, I think that's certainly a nice aspect.
I mean, you also have the hedging aspect, right?
Which is I think one of the fundamental
and foundational use cases of the protocol.
You don't even have to sell your NFT, right?
You could take a short and just hedge it a little bit
if you're worried about it dropping in the short term,
stuff like this is like big unlocks to your point.
And it seems like, so we saw,
we haven't even talked about this in the show, but Lucanets,
he shared the announcement last night,
so that this exchange WooX is now listening,
is listing the board ape U tokens
and Pudgy P1U tokens, I believe,
which will be one of the first times I think
that we've seen these flooring tokens
listed on these exchanges,
which to me means more liquidity
and just kind of adds confidence
to folks using these protocols.
And just more broad exposure.
It creates a broader user base of people that like,
this is a centralized exchange.
So just like the more retail traders
that aren't as confident to go out onto a chain
and like do something like this
can now do it through a centralized exchange,
which should open up a lot.
Yeah, I'm right there with you.
And I think more and more will come, right,
as the protocols establish more maturity
and are around for a longer period of time.
Well, I think also one of the major announcements
from the past few weeks was the launch of season two.
Points are hot right now.
So what do folks need to know about points?
Mason, if you want to take that or Aaron?
So season two is really focused around trading.
We've kind of revamped the whole point system.
If you check out our docs,
we went into like a detailed thing about how points are earned
using different strategies and stuff like this.
I would really emphasize like
there's different ways to get multipliers
and stuff like this, like through our passes
and we're going to incentivize different collections here
in the next couple of days, I would think.
So that'll be the first multipliers of the season.
So that should be interesting.
And what else is coming up?
So certainly you guys have been rolling out these announcements.
I know a lot of work has went into getting season two
to launching to the public here.
You're adding collections on a daily, weekly basis.
Certainly understandable if you guys are taking a bit of a breather.
But what can folks expect?
Like what's on the roadmap?
What's kind of coming next for Basabi?
So we're very proud of the product,
but we're a pretty lean team.
So like sometimes we have to ship things
that are not like perfect yet.
So we're definitely working on the product.
We have some upcoming cool features
that will really help traders make better trades
and being able to edit your trades,
having better entry prices, less slippage, things like that
are always things that we're constantly working on.
But we're also super excited about the NFT trade volumes
or the NFT ecosystems on other chains,
like at the beginning of this.
Like spaces, we were talking about ordinals.
We're talking about Solana.
And before, like a couple months ago,
the NFT ecosystems on these chains
were not as strong as they are currently.
And we're keeping an eye out.
We're monitoring these like different ecosystems
and we're excited, very excited to see them grow.
Yeah, I was going to go there.
So you kind of answered my next question for me already.
I was curious if you've been looking at other blockchains
and it certainly seems that if these ecosystems
are to stick around with some longevity on Solana, on Bitcoin,
I think the writing on the wall is that they will.
Certainly those will be ecosystems ripe for more financial products as well.
But certainly also appreciate you all taking some time
to kind of refine the product here on Ethereum
and set the foundation and just really get it in great proper shape.
Well, this has been an awesome conversation, Aaron, Mason.
We're almost out of time.
Before we go, any closing thoughts, anything you want to leave our listeners with,
where can they get more information from you all?
Yeah, feel free to come in our Discord.
Yeah, there's more information on our on our get book,
which is linked in our documents and on our pin tweet, I believe.
And yeah, thanks for having us.
Aaron, any closing thoughts on your side?
Yeah, thanks for having us.
We really think Wasabi will change how people trade.
Like we talked about hedging.
We've seen, I guess, like Eddie was hedging his bids even.
Like NFTC doesn't even hold yet.
We're seeing a lot of action on the FLC side of things
as it's like an NFTC index.
If you're seeing the whole market go red or green,
So hopefully, people will see or find avenues
to take profits using Wasabi.
And like, thanks for hosting us.
And please join our Discord if you're interested.
Yeah, it's very exciting.
Quickly on Eddie's comments,
I think he was talking about how to build like a Delta neutral strategy
where you can effectively farm, you know,
some of these protocols while kind of limiting your exposure,
which is very interesting, right?
And something that wasn't really that possible,
you know, before protocols like Wasabi.
So certainly exciting to have your product on the market.
I do think it is a game changer.
And it's just going to get more and more adoption
as folks understand it and how to use it.
So, you know, kudos to you.
And we're excited to continue working with you guys
and continuing to amplify all of your exciting developments and news.
So, folks, if you haven't already, give Aaron a follow.
Go check out their protocol.
Learn about the options, the perp side,
and everything they've got.
Well, but as for this show, that is it.
We are going to go ahead and wrap things up there.
Before we go, what's dropping today?
A handful of minutes on the list.
This morning, we had Skytopia mayor pass.
Bitcoin and Wales culture pods came out at 9.30 a.m. Eastern.
Commoners come tonight at 5 p.m. Eastern.
Bat Stu and Schiller, the burn artist number seven
at 6 p.m. Eastern as well.
So I think the main focus today is on Bitcoin.
We hit the Bitcoin and Wales this morning.
Commoners are doing their drop here this evening.
The ecosystem certainly a little bit more liquid
after this RCIS stimulus.
So those products are launching at a good time.
Otherwise, Ripcash is busy.
He's got his new drop in Bat Stu and Schiller.
That's going to be an interesting one to watch as well.
We'll be back tomorrow at 10 a.m. Eastern.
Thanks to our listeners for tuning in.
Thanks to our friends Obero Wasabi for coming on up
for a great conversation.
Everyone, enjoy your Tuesday.
Let's make it a great day.