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! ----- GO BANKLESS WITH THESE SPONSOR TOOLS: 💸 ROCKET DOLLAR - TAX SHELTER YOUR CRYPTO ($50 w/ "BANKLESS") www.jdoqocy.com/click-9261763-13920047 💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS monolith.xyz/ 🌈AAVE - LEND & BORROW YOUR CRYPTO W/O A BANK aave.com/ 📈DYDX - trade, margin, BTC perpetuals (10% off with this link) trade.dydx.exchange/r/bankless ---- 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 ---- SUBSCRIBE TO BANKLESS PROGRAM: bankless.substack.com/ ----- EPISODE ACTIONS: 1) Try earning interest on Compound 2) Stay tuned for governance opportunities: 3) Subscribe to this YouTube channel! ----- EPISODE RESOURCES: Resources discussed: (Article) It's the Settlement Assurances Stupid medium.com/@nic__carter/its-the-settlement-assurances-stupid-5dcd1c3f4e41 (Article) Crypto-fiat: mutualistic or parasitic? bankless.substack.com/p/crypto-fiat-mutualistic-or-parasitic (Article) Great protocol sink bankless.substack.com/p/the-great-protocol-sink-market-monday (How-to) How to buy $TAPE token bankless.substack.com/p/how-to-buy-tape-on-zora (VIDEO) David's Settlement Assurances talk www.youtube.com/watch?v=z3ufil39z5o ----- EPISODE ACTIONS: 1) Watch David talk about this at Ethereal  www.youtube.com/watch?v=z3ufil39z5o 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 - Subscribe to Bankless YouTube channel! ----- LEVEL UP FASTER: Subscribe to the Bankless newsletter program bankless.substack.com/ Visit official Bankless website for resources banklesshq.com/ Follow Bankless on Twitter twitter.com/BanklessHQ Follow Ryan on Twitter twitter.com/ryansadams Follow David on Twitter twitter.com/TrustlessState --- NOTE: Bankless may receive commission if you make a purchase through one of the links above. Thanks for your support!