A crypto fund that just raised $450 million offers bull case for web3
Variant — a venture capital firm founded on the idea that the next iteration of the internet is going to be defined by decentralized, user-owned networks — has raised $450 million to be deployed across two new funds.
In this episode of The Scoop, Variant co-founders Jesse Walden and Spencer Noon reveal how they plan on allocating the capital — and why Variant remains bullish on the long-term future of web3.
According to Walden, the technology powering the emerging web3 industry will only improve from here:
“In the history of technology, technology doesn't get worse and disappear — it gets better and more pervasive. And that's happening at an exponential rate in Web3, because this is all software, it's all open source, and there's just tons of talent jumping in... So the tech is working, and again, I think that means it's only going to be more pervasive.”
Although web3 is still in its infancy, the Variant co-founders believe elements of it are already disrupting their centralized equivalents. For example, Walden describes how certain distressed lenders recently prioritized paying back loans to DeFi protocols over other counterparties:
“DeFi protocols were the only protocols that got paid back by some of these institutions that blew up … the transparency and sort of enforcement of these smart contracts can actually have better outcomes than the alternative, which is opacity and sort of trust in the wrong parties.”
Episode 70 of Season 4 of The Scoop was recorded remotely with The Block's Frank Chaparro, and Variant Co-Founders Jesse Walden and Spencer Noon.
Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com.
This episode is brought to you by our sponsors Chainalysis & IWC Schaffhausen
About Chainalysis
Chainalysis is the leading blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit www.chainalysis.com.
About IWC Schaffhausen
IWC Schaffhausen is a Swiss luxury watch manufacturer based in Schaffhausen, Switzerland. Known for its unique engineering approach to watchmaking, IWC combines the best of human craftsmanship and creativity with cutting-edge technology and processes. With collections like the Portugieser and the Pilot’s Watches, the brand covers the whole spectrum from elegant timepieces to sports watches. For more information, visit IWC.com
The Current State of DeFi | Vance Spencer, Santiago Santos, Spencer Noon
In this special episode of Bankless, we bring on some of the best minds in the space to discuss where DeFi is and where we're headed.
------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ 🎖 CLAIM YOUR BADGE: https://newsletter.banklesshq.com/p/-guide-2-using-the-bankless-badge ------ BANKLESS SPONSOR TOOLS:
💰 GEMINI | FIAT & CRYPTO EXCHANGE https://bankless.cc/go-gemini
🦊 METAMASK | DEFI PASSPORT https://bankless.cc/metamask
🦄 UNISWAP | DECENTRALIZED FUNDING http://bankless.cc/uniswap
🔀 KWENTA | EXCHANGE SYNTHETIC ASSETS https://bankless.cc/kwenta ------ The Current State of DeFi Panel: Vance Spencer, Santiago Santos, and Spencer Noon
It feels like we're living out a crucial moment in the story of Decentralized Finance. A variety of perspectives will collectively yield that we are at a tipping point, from a macro and micro standpoint. As we witness the emergence of a new technological ecosystem, the stakes and implications are ever increasing. Thus it only makes sense to bring on a panel of some of DeFi's smartest minds to hold a summit on where we are and where we're heading.
This panel comprised of Santiago Santos of Parafi Capital, Vance Spencer of Framework Ventures, and Spencer Noon of the Variant Fund. In broad terms, DeFi refers to open, blockchain-based finance. The root of this stack consists of primitive financial services – the money verbs like borrowing, lending, trading, escrow, etc. It involves programming smart contracts to execute logic that transfers value on the blockchain. Within these parameters, there is infinite expressivity and room to explore.
The internet of value has set itself up to be a game of optimizing capital efficiency through logic. The winners of this game will be the protocols, apps, individuals, and institutions that minimize counterparty risk while maximizing anti-fragility and resilience. The key here is finding ways to balance the values of consumer agency and protection with the power of capital efficiency. Maximalism and absolutes will be pushed to the margin as the realities of tradeoffs become increasingly apparent.
DeFi, despite its youth, has shown itself to be resilient and deeply anti-fragile. Good logic doesn't break. As it matures, the growth and depth of DeFi infrastructure will demonstrably contribute to its Lindy effect. The total addressable market (TAM) of this ecosystem difficult to quantify, as it is a non-zero game that currently encapsulates the entire global economy at present. Conversations like these should leave an informed viewer feeling optimistic, inspired, and determined to face the obstacles ahead with resolve and conviction.
------ Resources:
Vance on Twitter: https://twitter.com/pythianism?s=20
Santiago on Twitter: https://twitter.com/santiagoroel?s=20
Spencer on Twitter: https://twitter.com/spencernoon?s=20
------ Topics Covered:
0:00 Intro 4:00 Santiago, Vance, and Spencer 5:40 What is DeFi? 12:01 Can't Be Evil 17:10 Total Addressable Market 20:39 DeFi Eating the World 24:50 Capitulating Institutions 31:26 Regulatory Winter 34:39 Stablecoins and Yield 44:36 El Salvador & Usability 49:30 Uniswap V3 57:51 Layer 2 Madness 1:05:21 Being About That Life 1:09:10 Closing & Disclaimers
----- 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.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures