0xAdam

@grahamfergs I sent you a DM, building aggregation APIs and want to include Securitize in it.

Pulling together the top minds in RWAs / tokenization for something big. If you live at the intersection of TradFi / DeFi, shoot me a note.

@gizmothegizzer @thiacesar They still rely on the same regulations and AML guidelines. You cannot overcome it, unfortunately

@thiacesar True but with vibe coding I think it’s possible to wrap providers like bridge and rain

I had bank accounts in multiple countries and here's my track record: 🇺🇸 US: Visa card got frozen while traveling in Cambodia. Called Chase, they said I was fraud. 🇨🇳 China: Money frozen for a year while they "updated my residency status". Spent 2 hours in person at a branch to close my account. 🇭🇰 Hong Kong: account closed for inactivity. 🇨🇦 Canada: account got frozen. 🌎 Everywhere: phone calls, diligence forms, go into branch to explain my life. The system isn't built for people who live globally. And there's no good alternative. So I learned to never trust banks because any one of them could freeze me tomorrow without warning. I want to vibe code an MVP: a stablecoin-native bank designed for global citizens. No arbitrary freezes because it's non-custodial. No residency interrogations. If you live amongst the diaspora, reach out. I want to hear your story.

Would love to read your article and can give my 2c as I was launching a Tokenization startup in the EU with one large CEE region Investment Bank, but I decided to shut it down because the regulatory requirements were crazy expensive and unreachable for a pre-seed startup, since I wanted to do it right and not as another one “Trust me Bro” IOU tokens.

Wrote a blog post about tokenized equities, to tackle: - Different ways to tokenize equities - Different levels of tokenized equities and the ownership you're getting - What if DTCC tokenize the equities directly? who wants to give a read? DM is open :)

@Schlagonia Isn't it more likely a scenario where all lenders get almost all the money back and depositors will eat the loss? Isn't debt superior to LP in the case of restructuring? a.g. You need to have clear assets before you can distribute to LP, which you cannot do if you have loops open

172 days ago the Stream team messaged me to complain about a snarky tweet I had made about their vault code. This was the last message I sent them. Obviously they did not listen and we are in fact worse off because of it. Contrary to what many seem to feel, none of what happened came out of nowhere. As with any good bubble/blow up it has been slowly brewing and was simply a matter of time till it burst. It took one conversation with their and 5 minutes of scrolling their Debank to realize that this was going to end poorly. And while Stream was the most egregious, they are far from the only ones out there with bodies to hide. So while I have my 15 minutes of CT's attention here are a few long, but hopefully final, thoughts on our latest saga. First on Stream in particular. Even I was surprised at the size of their loses, and while we wait to see what the official reason for the hole is, I think its pretty obvious you don't delegate 9 figures of user capital to "external managers". And the only way you loose that amount of money is leverage trading shitters. Seems clear these kids started directionally trading with user capital while lying about it. This isn't a phenomenon unique to DeFi, it's a tale as old as time. And ironically one of the primary original selling points of the benefits of DeFi, to not allow this. Nonetheless, I still don't think the market has fully grasped the extent of the insolvency. At time of writing this xUSD is trading at about $0.25 or 20% of its PPS of 1.27 and deUSD is at $0.99 still. So lets do some math. If we look at the current state of Stream's assets their total DeBank bundle claims $138m and liabilities of their dashboard says $160m of user deposits. However, seams safe to write off all of the value in 0x15 at this point, given its almost all xUSD and deUSD levered positions that they have no ability to ever unwind. And assume their new msig 0x14b is all of the returnable funds which is currently $63m. Then we come to the liabilities, which is where the recursive looping and unbacked minting kicks everything up. Since they have no viable path to repay their xUSD loans we can assume that all will eventually end in liquidation in some capacity. Which given the limited on chain liquidity likely leads to lenders taking possession of the xUSD posted as collateral, which fully breaks their recursive accounting and causes a 2X+ of the outstanding xUSD liabilities and creditors that will be looking for repayment and redemptions. My best estimate from Debank is they have a total of close to 300m xUSD currently leveraged across their wallets. At current PPS of 1.27 this increases their outstanding liabilities by about $380m to $540m. Which would then give an expected redemption value of 63/540 for close to a 90% loss or $0.14 per xUSD. Of course this also means deUSD will take at minimum 20-30% bad debt, assuming their 1:1 agreement won't hold up given Stream doesn't have enough to pay Elixir back in full even if they did abide by it. And anything lent or backed against xUSD or deUSD takes on their equivalent amount of bad debt. Fun thought experiment for the reader is how do you price the 6.2m deUSD 0x14 currently holds given its redemption price is dependent on xUSD's. Now, I have no idea when or if these liquidations will actually occur. Given all the oracles are hardcoded, lenders only recourse is to wait till the interest accrual liquidates them. Places like Elixir's Morpho market on Plume this is likely to happen soon given Morpho's adaptive IR curve the borrow rate is already 190%. On Euler, especially Plasma, it could take months given the hardcoded caps on the IR curves. While I would expect the redemption process to take weeks to months, it is also possible they keep these positions alive long enough to just serve withdraws to circulating shares and therefore all lenders to xUSD will take a 100% loss in order to reduce the losses for current xUSD holders. This exact reason is why, regardless of their shitcoin trading practices, what they were doing with collateralizing the self looped shares was extra levels of retardio even for this industry. And as always is another friendly reminder that leverage is a fickle bitch and magnifies in both directions. _____________ While I will leave most of the pontificating about the long term effects to DeFi to the clearly ever so alert CT crowd, obviously we have some issues. At Yearn we have been speaking about this for quite some time, but seams the rest of DeFi has now woken up. While any new meta such as Curation or Vaults, will have people pile in and there are bound to be bad actors or those that cut corners. This clearly goes far beyond that. Almost every major "risk manager" showed themselves to be baphoon's in some capacity far beyond just those that directly allocated to Stream assets. Due diligence is the primary slower of growth and therefore gets thrown out first. Users see vaults labeled as Prime, Core, Horizon, High Yield, etc all with a Curator name that means nothing to them and just end up chasing yields inevitably pushing the industry up the risk curve. We need standardization, we need proper transparency and due diligence, and we need to understand when you treat financial markets like a high growth SAAS tech play, things like this are bound to happen. A risk managers job is to say NO. If you are not doing that, or just waiting till shit goes sideways to try and pull your funds faster than others. Your not a risk manager you're a clown. Hopefully as the system absorbs nine figures of bad debt it makes those leading the charge think a bit harder before they list the next shiny new shitcoin. Outside of improvements to curation my top personal hope is this makes all vault providers currently using the black box method of off chain pricing their shares to change course. This is one of the most terrifying widespread adoptions of this cycle, in which multisig's are arbitrarily setting the PPS of their vaults based on undisclosed off chain pricing logic. And to be clear Stream is not the exception here, this is now standard practice from almost every vault provider, including basically all of the largest players. If you are in a blah, blah USD or "Vault yada yada", "YieldCoin Whats its Nuts" or whatever, you are almost certainly subject this. As the industry continuous to move to a less cypher punk value set, we should make sure there is a distinction between decentralization and transparency. Even in places where we move to more centralized/trusted systems, transparency should still exist in its full force. Otherwise we really are just banking but worse. While events like this always remind me why I am embarrassed to tell people I work in crypto, so far there does seem to be a positive response and recognizing our shortfalls. Though I am sure next cycle a new group of kids will come along claiming they've got the best risk adjusted yields around and we will run it back once again. Our only hope is each time this happens a few more people learn to demand more out of those they trust their money to.

@BillyFX_G @Cbb0fe The summary you see is a snapshot in time, updated twice a week. If you are checking the wallets you see the actual TVL and positions, which are the ultimate truth e.g this main wallet debank.com/profile/0x68e7…

@AdamLMA0 @Cbb0fe yea - but click any of those wallets and cross check the balances

I strongly recommend withdrawing from mHYPER They held a huge xUSD position just days ago mHYPER is a Midas vault, it’s regulated as a security under MiCA / German law If Stream committed fraud, mHYPER could face bankruptcy clawback risk Courts could socialize the losses

@BillyFX_G @Cbb0fe Huh? midas.app/transparency?t…

@AdamLMA0 @Cbb0fe I just did - I can’t find any of the positions they claim to have

@boredmansachs @Cbb0fe Guys you can actually check all the wallets through debank and you can see every single dollar there. Go to Midas -> transparency -> mHYPER

@Cbb0fe Their "Independent Verifications and Attestations" looks like a joke tbh

@Incrediblez7 Shouldn't xBTC and other x assets be included in the AUM rundown? Since they haven't disclosed the missing assets so it can be either xBTC and xETH as well thus making a smaller loss for xUSD

Just did a pure on-chain analysis on the xUSD situation. Please correct me if I'm wrong.

@WAGMIcapital Plus they are delta neutral by nature the same way as ethena

@WAGMIcapital Not really, when you are deositing any non-stablecoin you are setting the strike price and duration and you can be normally liquidated

@Cbb0fe Are you open to external capital? At IVBF, we have part of our portfolio set up as FoF.

CBB Cartel is looking to deploy +$100M into the next best stablecoin farms If you are building cool stuff, please reach out We are not looking to invest, only farming

@ellazhang516 @yzilabs @EASYResidency When is the deadline?

Last call for builders for @yzilabs @EASYResidency S2! We are particularly looking for teams building around: Prediction, Futarchy, Bot, TCG, ICM, Repo, Neobank, Stablecoin, Privacy, Agentic Payments, X402, Perps, High-performance infra, New DeFi, DeSci, RWA, and wallets. Apply here: 👉 wkf.ms/3IA5iBk Btw, look at this pic 7 years ago👇, can you tell who were there building together with us? Who are keep #buidling ?

@behrin Is the summit still on?

@delucinator Fuck job application. Would you be interested in joining a crypto fund focused on delta-neutral strategies? We currently have eight figures in AUM

0/1 for job applications turns out it is indeed bad to write that your gpa is 3.2 on your apps

@xmgnr I guess you didn't do SHA, right?

im drunk heres the lore joined mgnr late 2020 founders retired mid 2022 so i took over as ceo ftx blew us up shortly after started new firm with partner late 2024 he wants to retire and keep all his equity (fuck that??) 2nd firm blown up due to conflict from that 1/2

@JananiPriya_T Really good read. Are you open to a marketing role? 👀

Crypto crash is worse than divorce, you lose 70% your money and your wife is still around.

@delucinator Dmed

sadly most of the new defi yield stuff are just aave usdc/dsr wrappers. really want to see innovation beyond that in 2025 if you are working on this hit me up i am very interested no if you take deposits to berachain and farm honey usdc it doesnt count

@Tetranode If you want, let's chat. I am building a tokenization platform that will let you tokenize any liquid financial asset and subsequently utilize it in DeFI how you see fit. We are in stealth mode, but our main partner is an 8b Eur European investment bank.