🎙️ The real revolution (Market Monday)
Market Monday for March 2, 2020
Level up your open finance game three times a week. Subscribe to the Bankless program below.
Dear Crypto Natives,
It’s time to focus on the real revolution. The bankless revolution.
The Bankless Podcast will explore the frontier of internet money and finance. How to get started. How to get better. How to front-fun the opportunity. How to go bankless.
Here’s how it’s going to go:
New episode released every Monday
Plain-speak designed for all skill levels
A level up in every episode
I’ve added David Hoffman as my co-host. Like me, David lives and breaths this stuff. Together we’ll be your guides into this new frontier.
I’m doing this Podcast now because it’s time.
It’s time to invite the first tranche of adventurers into this wild west. The ones willing to set out on the journey and risk life and limb for the prospect of treasure and opportunity. We have the early infrastructure. We need the settlers.
It’s time to reclaim the revolution from maximalists who attempt to repress Ethereum because they think it threatens Bitcoin and who feign desire for self-sovereign money while installing themselves as our new banker overlords.
It’s time to show the traditional banks they can’t control us any longer. They’re the newspaper industry in the 90s: in this new world we don’t need them, they need us. They either adopt or die. The people are taking back their money system.
It’s time for a mainstream crypto podcast that isn’t afraid to say:
Bankless is better
DeFi is the future
ETH is money
This is the Podcast I would have wanted in my early crypto days. This is the reason I got into crypto. This is the upside. This is the revolution.
But it’s for everyone.
There’s no such thing as reward without risk. The Bankless Trail is fraught with danger—bandits, typhoid, dysentery—the road is hard. You could lose everything. There’s no promise this all works out for you.
But some of you will weight the risks and take up the adventure. How often does humanity reinvent its money? I can’t miss thisyou say. I want a story for the grandkids. I want to see where the trail ends. I want a shot at the opportunity.
I want to go bankless.
Then you’ll like the Bankless Podcast. You’re the reason we created it.
Scan this section and dig into anything interesting
ETH struck down to $231 from $262 last Monday
BTC stumbled to $8,858 from $9,590 last Monday
DAI stability fee steady at 8% with savings rate up to 8%
(Lend) BlockFi March rates—ETH starting at 3.6% & BTC now 4.9%
(Earn) 8% on USDC at crypto.com w/ a 1 month term (get $50 MCO w/ Visa card)
Melon terminal released (I haven’t quite figured this protocol out yet)
Bitcoin generated 49% of all revenue for Square’s Cash App in Q4 2019
RealT just completed a $615,000 sale of a 15-unit apartment complex
The Rise of Ethereum - David Schwartz
Why Flash Attacks will be the New Normal - Haseeb Qureshi
WHAT I’M DOING
Check out a few opportunities I’m capturing right now with my crypto money
Trying Loopring Beta—Loopring released something that would be considered the holy grail in 2017—a 100 trades-per-second non-custodial exchange with the security of Ethereum. The user experience was solid. Market makers pay 0% in fees. For takers, cost up to .5%. Loopring support pairs like ETH-DAI, ETH-USDT, and DAI-USDT.
It’s exciting to have a scalable, non-custodial option and I’m optimistic “keep your keys” as the default model for crypto will mitigate counterparty risk and exchange hacks. The tech is awesome. But do you know what? I don’t think this is as big of a deal as we thought it was back in 2017.
Do you know why this isn’t the holy grail? We’ve learned two things about DEXs since then: first, permissionless matters more than decentralization. And you still have to ask permission to list an asset on Loopring (unlike Uniswap where anyone can list). Second, liquidity is the app. And a scalable, decentralized exchange doesn’t matter unless you can attract & pool liquidity. TLDR; Loopring is a great step for rollup tech yes, but this isn’t a new money lego.
Tried a gamified way to level up on DeFi called Drip—it’s early for Drip, but what a great idea! Earn points and status by lending on Compound or opening a PoolTogether ticket. Get new challenges weekly. It’s gamifying what we’re doing at Bankless! Can’t wait to roll these types of things into the program as they develop. Here’s why Brian Flynn is excited about Drip.
What’s the coolest thing you did last week in crypto?
Theo onboarded 10 people to PoolTogether via email! (coming to everyone soon!)
Make time to complete this assignment before next week
Create a money streaming profile. The developer behind our favorite streaming money protocol just released an app that allows you to create a streaming money profile. Here’s mine. Ready for today’s assignment? (Requirements: MetaMask)
Go to Sablier.me & connect account w/ MetaMask
Click “Create a Stream Request” and fill in detail
I created a Bankless Subscription stream request for 115 DAI over a one year period, which would theoretically stream payments for a 1 year subscription to Bankless. Streaming subscriptions! Magic.
Extra Credit Learning
(Intermediate) Management apps for Maker (written by DeFiSaver—maybe bias)
(Intermediate) VIDEO: Hardware wallets & security
(Advanced) VIDEO: Moving between DeFi w/ 1inch
(Advanced) How to manage company funds w/ Gnosis
Tweet me your question—I reply to one per week
Question from Reddit:
What is the safest way to earn interest on my ETH before staking starts?
Not in DeFi! Lending rates for ETH in DeFi range from .1% to .4%. Not worth the risk! Crypto banks like BlockFi offer in the 3% range (3.6% at BlockFi). That’s better, but is that even worth the risk? Remember, these crypto banks are lending funds to their trusted institutions and borrowers. You’re betting they won’t lose your ETH to a hack or take excessive risks with lending it. Is that worth a 3% return?
For many people the answer is no. Personally, I can rationale in wanting to lend small amounts of ETH via crypto banks—maybe up to 10%? Certainly never a majority of funds. The highest risk adjusted return thing you can do with your ETH is to hold and wait for ETH staking to mature. Staking will represent the protocols risk-free of lending ETH like USD in T-bills. Longer term staking returns could range between 3 and 8%. I expect the existence of staking to increase ETH lending returns across all DeFi protocols as a secondary effect. Stay patient.
Some recent tweets…
Execute any good market opportunities you saw
Complete weekly assignment: create a money streaming profile
🙏Thanks to our sponsor: Aave Protocol
Aave protocol is a decentralized, open-source, and non-custodial money market protocol to earn interest on deposits and borrow assets. It also features access to Flash Loans, an innovative DeFi building block for developers to build self liquidations, collateral swaps, and more! Check it out here.
Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. I’ll always disclose when this is the case.