Barry Fried 🇮🇱

@_julianma @cryptoeconprof @casparschwa This phenomenon predominantly stems from the fact that lent ETH can be rehypothecated on Aave, thereby generating the underlying yield while simultaneously obtaining ETH leverage via borrowing stablecoins. The vast majority of suppliers (>80%) perform such a strategy.

Why do so many people choose to lend out ETH on Aave for 2% instead of stake via Lido for 3% yield? In a new paper with Joel Hasbrouck, @cryptoeconprof, and @casparschwa we build a structural econometric model and estimate it with data from Aave and Lido. The result? There is a huge market inefficiency that cannot be explained by smart contract risk, depeg risk, or any other risk.

@josephdelong @eden_ +1

What are the best swag items you've ever received (and actually use)?

@ivangbi_ @ethereumfndn Congrats!

TLDR: I joined @ethereumfndn as DeFi Coordinator 1] I got introduced to DeFi back in 2019 and stuck to it ever since. As narratives appeared and faded away, my general belief in DeFi stayed. I think today, more than ever, Ethereum is the right place to grow DeFi further. I'd like to help make this vision a reality 🙏

As someone who has worked closely with @bgdlabs for the last 2+ years, this is very sad to see. @eboadom, @andy_koz and team are some of the most talented people I’ve ever worked with. Will never forget our joint research discussions and initiatives developed for the Aave DAO; they will be sorely missed.

I think for a passive wide-range LP, it's worse to miss an uninformed swap than to get hit by an arb swap of the same size. To explain simply: imagine an ellpioid who is bidgooning ETH in the big 26 (green rectangle). If he gets arbmogged (shaded area), his COPE is proportional to the distance between execution price and marginal prices (distance 1). But if he retailmaxxes an uninformed swap, the farmed AURA is proportional to the distance between p_x and the CEX price, which is somewhere inside the spread—so around p_AMM on average (distance 2). The picture shows that the AURA farmed is bigger than the COPE. If you did the AMM competition, ask your robot to plot absolute edge for arb and retail swaps by size: you'll likely see the same result. Two caveats: this logic applies to flat positions only—the story changes if the position is concentrated around the AMM price or closer to the edges. And as @danrobinson pointed out, some of the farmed AURA can later be arbmogged by a backrun. But we'll leave it to AMM designers to figure out that problem.

Chaos Vaults: AI-powered yield for institutions. Markets move 24/7. Vault management should too. This launch is ** still human-centric **. Humans set policies and execute, while Chaos AI handles monitoring / dynamic alerting. However, the trajectory is clear: Vault management will shift from monitoring the situation to defining intent. Live today on @krakenfx @krakenpro DeFi Earn!

My $AAVE Alignment proposal: Ownership. If you are an $AAVE token holder, you should check it out governance.aave.com/t/arfc-aave-to…

Aave v3.6 is almost ready to be proposed to the Aave governance, and we have published all the details about it on the Aave DAO forum governance.aave.com/t/arfc-bgd-aav…

@river0x_ trillions

Gm to Plasma DeFi. Hitting and holding #4 so quickly is a testament to the incredible work of all counterparties involved. From curators, liquidity strategists, governance coordinators, LPs, devs, funds, risk teams, stablecoin fanatics, CEOs and yammers - there are far too many to mention, you know who you are. With the first phase now complete, Plasma DeFi enters a new chapter this week: even more sustainable, productive and efficient. More and more yieldbearing assets are now coming online and raising borrow demand, providing attractive and near-infinite lend APR. We couldn't be in a better spot to make that happen - more on this Thursday. A carefully-managed transition period starts now: it's time for assets on Plasma to shine. To those who've already bridged, thank you. To those yet to do so, I have $11.3B reasons as to why you should. So much higher. Trillions.

Hello again crypto twitter, felt like a good time to post some of our Ethena-related research and risk oracle infrastructure, specifically in the context of Aave: Stress Testing Ethena (optimized delta-hedging framework in the event of an exchange failure subject to various constraints) cdn.sanity.io/files/zmh9mnff… Additional Safeguards: Aggregate aToken Redemption Priority, and Aave-whitelisted USDe redemptions governance.aave.com/t/strengthenin… Effective sUSDe (liquid leverage) yield variance and the associated cyclic demand characteristics within the Aave Protocol governance.aave.com/t/aave-s-growi… Rationale for altering the USDe pricing methodology governance.aave.com/t/arfc-susde-a… Principal Token Risk Oracle (for good measure) governance.aave.com/t/arfc-pendle-… Kudos to @gdog97_ and team, more coming soon :)

Iykyk

@zoomerfied Unstoppable crime meets immovable scammer

Everyone is a risk manager on Twitter it seems

@gdog97_ Big congrats :)

Feel more confident that USDe will become a $50b+ asset in the next 3yrs than if you had asked me if we would get to $10b when we first launched. To date we have minted & redeemed $18b+ in supply returning $450m+ in cash rewards to (s)USDe users without a single basis point of loss. Hard to put into words how grateful we are for every single dollar that has helped to bootstrap us to this milestone. Without you Ethena would be nothing; and I would be no one.

@0x6E6F6D6164 yoooo where can I find this

We are reaching unprecedented levels of chart crime

The Angstrom v1 Whitepaper is live! @ksrini_, @0xvanbeethoven, and @ciamac provide a technical deep dive into the many intertwined mechanisms that collectively form Angstrom. Let’s dive in 🧵

Auction theory makes me incredibly happy

@ksrini_ seriously one of the coolest things I’ve ever seen in DeFi

Timely to see this currently happening live in Angstrom! At current liquidity levels, the gas-imposed bid-ask spread is ~$1.75 for WETH/USDC – the top-of-block auction is consistently bidding any excess Binance deviation beyond this spread back to LPs. In the short term, increasing the underlying liquidity will further tighten this spread and amortize the fixed gas cost over all active liquidity in the range of reference-price deviations, which will effectively bid all common value (that is currently being extracted from other pools) back to Angstrom LPs. From here, increasing sandwich-resistant swaps going through the batch and solvers + routers sourcing liquidity from Angstrom in the pool-unlock state for composable swaps will result in positive markouts and incentivize further liquidity migration to Angstrom. This is a potent and inevitable positive feedback loop.

@TheOmniLiberal @FlickzyV2 @grok @grok do mine

@FlickzyV2 @grok do mine @grok

hey @grok According to your analysis from the last 365 days, name 10 accounts in sequence who frequently visit my profile. Don't mention the person, just @.username and the rate of number of times a month visit the profile.