Bankless

Ethereum and The Trillion Dollar Internet Bond | Chris Perkins

Feb 29, 2024

01:35:16

Snipd AI

From marine to finance to crypto, Chris Perkins shares his journey. The creation of a new reference rate for ETH, similar to Libor, could unlock trillions in financial products. The intersection of traditional finance and crypto, ETFs, and the role of major players like BlackRock are discussed. Caesar, a new benchmark rate for Ethereum, aims to revolutionize the financial industry. The podcast explores decentralized interest rates, crypto tax solutions, and the importance of risk-free rates in finance and crypto.

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Podcast summary created with Snipd AI

Quick takeaways

Ethereum offers new opportunities for traditional finance professionals with its smart contracts and yield generation features.

Chris Perkins' diverse background in marine, traditional finance, and crypto provides a unique perspective on financial innovation.

The development of a reference rate like 'Caesar' for Ethereum can unlock new financial products and enhance its credibility as an 'internet bond'.

The history of LIBOR emphasizes the need for corruption-resistant benchmark models like Ethereum's proposed reference rate to promote trust and reliability in market pricing mechanisms.

Deep dives

Importance of Ethereum in Traditional Finance Understanding

Traditional finance professionals are beginning to appreciate Ethereum for its unique properties. Like Bitcoin, its limited supply of coins and store of value concept are widely recognized. However, Ethereum's additional features such as smart contracts and yield generation offer new opportunities that are intriguing to traditional finance mindsets, leading to increased interest in Ethereum as an asset class.

Introduction

5min

Diving into Crypto Funds, Token Management, and DeFi Innovations

3min

From Battlefields to Bitcoin: A Journey of Finance and Crypto

23min

The Intersection of TradFi and Crypto in 2024

5min

Caesar: The New Benchmark for ETH

13min

Exploring Decentralized Interest Rates and Crypto Tax Solutions in Web3

4min

Ethereum ETH Reference Rate Creation and Importance

11min

Exploring Risk-Free Rates in Finance and Crypto

9min

Unlocking the Potential of Ethereum: Hedging and Benchmarking Rates

22min

Chris Perkins has a fascinating background as a marine who was shot at in Iraq, was at Lehman bros when it all came crashing down, was a Citigroup trying to pick up the piece of the financial crisis where he first ran across Gary Gensler, and now he’s in crypto. We talk about all that, but that’s not even the main event.

The Main Event is Ether the asset and a new reference rate he’s building on top of it. This sounds in the weeds but it’s actually actually key to unlocking trillions in new financial products. You might call this new rate the Libor for ETH.

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------ TIMESTAMPS 00:00:00 Start 00:11:33 Intro to Chris 00:13:17 From Banks To Crypto 00:16:27 Hostility Towards Crypto 00:19:16 National Security 00:25:23 Takes on Regulation 00:31:12 TradFi Response To Crypto 00:33:58 ETH ETF 00:37:24 Libor for ETH? 00:42:43 Libor Recap 00:45:35 How Was Libor Corrupted? 00:53:21 ETH Reference Rate 01:04:13 Risk Free Rate 01:10:08 Real vs Nominal Returns 01:21:51 DeFi Applications 01:26:01 Market Size 01:33:17 Going Forward

------ RESOURCES

CESR home page: https://www.coindesk.com/indices/ether/cesr CESR methodology document: https://coinfund.io/cesr/ CESR Tearsheet: https://downloads.coindesk.com/cd3/CDI/CESR+Fact+Sheet.pdf

More Reading: https://www.coindesk.com/consensus-magazine/2023/09/26/how-staking-rates-can-drive-the-crypto-economy-forward/ https://www.coindesk.com/business/2023/09/27/five-reasons-why-the-world-needs-a-standardized-ethereum-staking-rate/ https://www.risk.net/derivatives/7957405/new-hope-for-crypto-derivatives-as-markets-urged-to-hail-cesr

------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures⁠

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Bankless

Ethereum and The Trillion Dollar Internet Bond | Chris Perkins

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Importance of Ethereum in Traditional Finance Understanding

Chris Perkins' Background and Unique Perspective on Finance and Crypto

Significance of Establishing a Reference Rate for ETH

Transition from LIBOR to Corruption-Resistant Models

Design of the Ethereum Reference Rate

Utility and Applications of the Caesar Rate

Integration and Future Potential of Caesar

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

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AI-powered
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Discover
highlights

Bankless

Ethereum and The Trillion Dollar Internet Bond | Chris Perkins

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Importance of Ethereum in Traditional Finance Understanding

Chris Perkins' Background and Unique Perspective on Finance and Crypto

Significance of Establishing a Reference Rate for ETH

Transition from LIBOR to Corruption-Resistant Models

Design of the Ethereum Reference Rate

Utility and Applications of the Caesar Rate

Integration and Future Potential of Caesar

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