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Bankless

12 - The Protocol Sink Thesis

Bankless

Bankless

Tech News, Technology, News

4.7 • 1.2K Ratings

🗓️ 18 May 2020

⏱️ 79 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Episode: #12
May 18, 2020

When someone gives you money how confident are you that it's really yours? That's a settlement guarantee. It operates at the base layer of our societal tech stack and usually requires law and nation-states to enforce. With crypto we have something new, we have settlement assurances. That changes everything.

Protocols with higher settlement assurances are more dense. They sink to the bottom of our societal tech stack and become the foundation for everything else. This is the protocol sink thesis, that DeFi protocols with the highest settlement assurance will become the base layer..the base layer for crypto banks, commercial banks, and even nation-state banks.

When enough value is locked and enough time has passed, the money protocols win. That's what the thesis predicts!

Dive into the protocol sink thesis w/ Ryan & David!

We cover:

  • Settlement guarantees through time
  • Legal system settlement & traditional finance
  • Why protocol settlement changes everything
  • Protocol Sink Thesis ("How DeFi Wins")
    • Why Trusted things get built on
    • How DeFi protocols sink
    • Time Value Locked as the meter stick
  • How to test the thesis
  • The transition to long-term thinking
Understanding this thesis will help you become a better crypto investor.

Before the episode begins we also talk about:
  • ETH FUTURES!
  • Grammy-award winner RAC issues on Ethereum

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Tools from our sponsors to go bankless:

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Resources discussed:

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Episode Actions:

  1. Watch David talk about this at Ethereal 
  2. Watch for evidence of protocol sink thesis:
    • Crypto exchanges add DeFi protocols
    • Trustless stablecoins like DAI taking from USDT
    • Stablecoins issued on public chains like Ethereum
    • More value flowing into BTC and ETH
  3. Give Bankless a 5-star review on iTunes right now!

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Follow David on Twitter

Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to Bankless, where we explore the frontier of Internet money and Internet finance.

0:18.9

This is how to get started, how to get better, and how to front run the opportunity.

0:23.0

This is Ryan Sean Adams.

0:24.5

I am here with David Hoffman

0:26.0

and we're here to help you become more bankless.

0:29.9

Hey David, how's things?

0:32.2

Things have been absolutely crazy.

0:33.7

Ethereal Conference just wrapped up,

0:35.3

which was a great conference,

0:37.4

and this is actually going to be the subject matter

0:39.7

of this podcast.

0:41.9

The talk I gave at the

0:44.0

a The The Bureau Conference called the Settlement Assurances

0:47.4

and the Protocol Sink Thesis.

0:49.4

I really want to dive deeper with that with you, Ryan.

0:52.3

And so we're gonna focus on that in this

0:54.0

podcast so it's gonna be a good one yeah I can't wait I watched that live by the way David and

0:58.3

somebody I think of the YouTube comments said get this man another red bull because you were talking so fast and you compress so much

1:05.0

awesome information in 18 minutes. It was fantastic. We'll include that in the show

1:09.9

notes right? That's out now isn't it? That's out on YouTube yeah and that's definitely the benefit of being a podcaster and also really prepping and and practicing your talk I could just burn through I talk it Mariano Conte said that David talks at 1.5 x

1:28.5

They got no time for ums man got no time for ums it's great yeah

1:32.4

absolutely people probably don't have to speed up our podcast. Maybe the portions where I speak, they speed it up, but then he drop it back for you. All right, cool. Well, hey, before we get there, we should talk about our fantastic sponsors today. So, want to take a minute to tell you about Rocket Dollar. This is for our US listeners. If you've got an IRA or a 401k, it's jailed inside of your brokerage.

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