143 - UNIChain is Inevitable with Dan Elitzer

Nov 7, 2022

Dan Elitzer, co-founder of Nascent and a prominent figure in crypto innovation, discusses the groundbreaking AppChain Thesis, which suggests that major DeFi applications like Uniswap may create their own chains. He explores the economic motivations behind this trend and examines objections to the thesis. The conversation also highlights the challenges and opportunities within the DeFi landscape, including the complexities of Maximal Extractable Value (MEV) and the future dynamics of composability, scalability, and user experience in blockchain technology.

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INSIGHT

App Chain Thesis

The app chain thesis proposes that every large DeFi app will have its own chain.
This could reshape crypto and create new opportunities.

INSIGHT

Dan Elitzer's Predictions

Dan Elitzer's predictions about composable collateral, liquid staking derivatives, and DeFi yield farming have been accurate.
His new prediction is the "Unichain" or app-specific chains for large DeFi apps.

INSIGHT

Why Uniswap?

Uniswap is used as an example due to its size and block-based demand.
The theory is that bigger DeFi apps have a greater incentive to create their own chain.

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✨ DEBRIEF | Unpacking the Episode: https://shows.banklesshq.com/p/debrief-unichain-is-inevitable

Dan Elitzer is the co-founder of Nascent, a VC firm working on the frontier of crypto Previously, he was previously leading IDEO CoLab Ventures, and has been on the frontier of crypto innovations for as long as we can remember.

Dan helps us unpack The AppChain Thesis, a possible outcome where every big DeFi app is going to have its own chain. How will this reshape crypto? Where do we find opportunities? Does this thesis even make sense?

Further, Dan, Ryan, and David cover the case for why Uniswap is going to have its own chain, why Dan thinks there’s an inevitable economic incentive for large DeFi apps to start their own chains, the main objections to The AppChain Thesis, and so much more.

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----- Topics Covered

0:00 Intro 6:45 Dan's Predictive Track Record 9:52 Roll-Apps 14:00 The App Chain Prediction 17:46 UNIChain 23:30 MEV 29:22 Summarizing the Costs 33:50 Who Gets the Money? 36:07 Are the Taxes Worth the Services? 43:48 Why DeFi Apps Haven't Launched App Chains Yet 48:40 Uniswap Nation State 55:33 Uniswap's App Chain Model Sovereignty 1:00:04 Uniswap's Control & Ethereum's Alignment 1:03:38 Uniswap's Composability 1:08:56 What Does This Mean For L1s 1:16:50 Investing in the Apps? 1:20:57 Aggregation Theory 1:23:22 Censorship 1:27:21 Final Takes 1:29:37 Closing & Disclaimers

------ Resources:

Dan Elitzer https://twitter.com/delitzer

The inevitably of Unichain https://medium.com/nascent-xyz/the-inevitability-of-unichain-bc600c92c5c4

Aggregation Theory - Stratechery https://stratechery.com/aggregation-theory/

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

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