180 - Top 5 Bear Market Bets with Avichal Garg & Sanjay Shah of Electric Capital

Bankless

Ethereum's Existential Risk for Staking

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Timothy Stanley: I think restaking is a big deal, right? Because it's really hard to bootstrap a trust network. We've just seen that that lots of chains have difficulty doing that. And so if you can take the existing trust of Ethereum and reuse that, I think that's a big deal. So as opposed to thousands of chains being restaked, it might be like 12 really important ones.Stanley: Avicile, do those start to get so large that they start to pose some sort of existential risk to Etherum?Avicile: The answer is maybe. It's kind of like TBD. He says he thinks there are ways to mitigate these risks

Nothing tests your conviction like a bear market. This is an opportunity to test what you think you know, refine your thesis, and make your bets for the next leg up.

Avichal and Sanjay are long time crypto investors and at VC fund electric capital. What are they betting on during the bear market?

We discuss 5 of the most pressing questions facing crypto investors during the bear market including…

1) L2 tokens - Are L2 tokens they worth something or they just worthless governance tokens?

2) AltL1s…Will the ETH killers make a comeback?

3) Multichain world - Millions of L2 chains or a few big winners?

4) Restaking - big deal or overhyped?

5) What Avichal things are this cycle’s alt-coins.

Episodes like this are an opportunity to sharpen your insights as a crypto investor. Don’t take these ideas as gospel. Wrestle with them. Test them. Make them your own. We’ll have other Bear Market Bets episodes with other perspectives, so this isn’t the last.

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Timestamps

0:00 Intro

8:00 L2 Value Capture

15:12 How Rollups Make Money

20:20 Harmful vs. Good MEV

25:00 Transactions Fees & L2s

38:05 Are L2s Valueable?

40:00 Multichain L2s or Few Winners?

43:05 Multichain Applications

49:09 Multichain Friction

59:02 Are NFTs Dead?

1:06:45 Investing in NFTs

1:10:00 RSA’s Worst Fear

1:15:10 Ethereum Killers & Modular/Monolithic Chains

1:19:22 L1s Playing the Monetary Premium Game

1:22:00 RSA vs. Avichal Moneyness Debate

1:24:30 Is Restaking Overhyped? Risky?

1:29:35 Crypto’s Antifragileness & Are We Lost?

1:33:40 Closing & Disclosures

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Resources

Avichal Garg

https://twitter.com/avichal

Sanjay Shah

https://twitter.com/sanjaypshah

Read

https://mirror.xyz/electriccap.eth/SD0wT7qSSfis9gLT_Ki1gY6_oTYEqgwcGE0hDw7kMDY

https://www.developerreport.com/developer-report

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