Brad Bachu

anthropic won't let you use fable for biology, chemistry, ai research, or anything that accelerates human progress. that makes it the perfect tool for developing blockchains

The fact that foundational innovations have been overlooked in the past does not imply that ETH is being mis-valued now. These lazy arguments are part of why the Ethereum community is in such a difficult position now. ETH has two main problems. One is a demand issue. The other is a value capture issue. The Ethereum community has done essentially nothing to resolve these issues and ETH prices reflect that and will continue to reflect that until these issues are solved. On the demand issue, the most widely used applications on Ethereum are DeFi applications and the economic value of those applications depend on widespread usage. For example, when a given DEX has high liquidity provision, it generates low trading costs and can thereby sustain high trading volume. At the same time, the same DEX could generate low trading volume and low liquidity provision because low liquidity provision implies high trading costs which implies low trading volume that then re-enforces the low liquidity provision. This is known as multiple equilibria and it is a common feature in platforms. Crucially, platforms do not drift into the good equilibrium on their own. Someone has to build the user base that gets you there, which means actively engaging outside the crypto community. The Ethereum community has shown no sign of doing this: over one year after the end of the Gensler SEC, Ethereum remains largely unknown beyond the crypto community and that is a horrible sign. On the value capture issue, there is a gap between Ethereum the blockchain and ETH the asset. If stablecoins are widely traded on the Ethereum blockchain but the gas fees generated are too low, that does not imply meaningful ETH demand. Here, again, the Ethereum community has been largely obtuse about understanding this point and trying to resolve it. Ethereum was an excellent idea with the potential to be transformative. However, transformative ideas can fail without effective execution. In this context, effective execution means resolving the two core issues rather than pretending they do not exist.

Okay chicccc @doodles @privy_io

Talking tomorrow at the Crypto and Blockchain Economics Research Forum about MEV taxes for UniswapX on PGA chains @MaxResnick from Anza is also presenting on prop AMMs Two different DEX designs. Should be a good one. Tap in at 11 AM ET on Zoom: cber-forum.org

Tomorrow at 11 AM ET, @MaxResnick @anza_xyz and Alan Wu @Uniswap explain propAMMs and MEV Tax. Register at columbiauniversity.zoom.us/webinar/regist…

As tokenization of traditional financial assets gains regulatory attention, a fundamental question demands rigorous analysis: Can blockchain technology provide secure settlement? In a new paper with @camharvey (@DukeU) and Kose John (@NYUStern), we develop an economic model to address this question. Our analysis yields two main insights. First: blockchain security is tied to blockchain productivity. A blockchain generating more economic value for users can share that value with validators through higher staking rewards. In turn, higher rewards attract more staked capital, raising the cost for any adversary seeking to disrupt settlement. Second: under reasonable conditions, a PoS blockchain can be secured against arbitrarily large attack incentives. This may seem surprising, but it follows from a familiar financial phenomenon that prior blockchain literature has overlooked: price impact. To disrupt settlement, an attacker must acquire a large fraction of the blockchain's native asset. However, staked assets are subject to withdrawal delays and cannot be traded immediately, so a higher staking ratio translates directly into a smaller circulating float of the blockchain's native asset. In particular, the attacker must acquire what they need from unstaked assets, and buying a large share of a small supply drives up the price. This is where the economics become powerful. Higher staking rewards attract more capital into staking, which shrinks circulating supply, amplifying the price impact an attacker would face. Because staking responds to incentives, the staking ratio can be engineered to achieve a desired level of security. Our model shows that, by setting staking rewards appropriately, price impact can be made arbitrarily large, rendering attacks unprofitable regardless of potential gains. A concrete illustration: Ethereum currently has roughly 30% of ether staked. A majority attack would require purchasing another 30% from the 70% in circulation. Our model shows this generates a price impact of approximately 75%, a cost prior literature has failed to incorporate. Importantly, 75% reflects current staking levels. By increasing staking incentives to raise the staking ratio, price impact can be made larger. This is precisely how a blockchain can be secured against arbitrarily large attack incentives. 📄 Paper: papers.ssrn.com/sol3/papers.cf…

@henryksarat love this!

New Feature Launch: Advanced Alerts for Morpho Vaults are live 🔔 One of the biggest risks in DeFi vaults isn’t volatility, it’s silent change. Today, if a Morpho vault curator updates underlying market allocations, most depositors won’t notice unless they manually check and remember the original setup. A vault you deposited into for cbBTC or wstETH or PYUSD exposure can quietly shift into assets outside your risk controls. With VaultAutomation Advanced Alerts, that changes. You now get real-time alerts whenever a Morpho vault’s market allocations change, including: • New markets added • Existing markets removed • Major allocation shifts between markets with customizable thresholds Plus, two big platform updates: 🔐Account creation and login with Google (no more crypto wallet friction) 🔗Arbitrum support, expanding beyond Ethereum, Base, HyperEVM Setup takes just a few clicks, and alerts can be tuned to your personal risk thresholds. 🔔 Monitor allocation changes in real time 🛡️ Stay aligned with your risk controls 📊 One place to monitor all your Morpho vaults 👉 Start receiving real-time Morpho vault alerts, sign up for free at VaultAutomation .xyz [Link in bio] We’re building this closely with users and actively want to understand your pain points. * What keeps you from deploying more capital into DeFi? * What risks are hardest to monitor today? * Which chains or DeFi protocols matter most? * How do you want alerts delivered? * What should be automated next? Drop a comment or DM me, your feedback directly shapes what we build.

@abmisx0 @Tiza4ThePeople What you are looking at in this data is not the full set of trades. This data only shows the trades that went through Classic. Do you know what selection bias is?

@BradBachu @Tiza4ThePeople That’s not what’s happening atm, I’d ask your product team to look into it

swap fees on wallets base app → 100 bps metamask → 87.5 bps phantom → 85 bps rabby → 25 bps uniswap wallet → 0 bps do with that information what you will

@ianlapham I read "Body by Science: A Research Based Program to Get the Results You Want in 12 Minutes a Week" which kinda takes your philosophy to the extreme, and agrees with the "to failure"

I’m becoming increasingly convinced low volume high intensity is the optimal approach to lifting if your goal is hypertrophy Assuming your hormones are optimized, youd be very surprised how much muscle you can build with just 3-4x days lifting per week Key is actually going to failure, and real failure on working sets Most people I see in the gym are literally not trying at all, maybe putting in 30% effort Just go harder, less often, it works

@sha256n I have to wait that long :(

The 2027 Apple AI glasses will change how we use technology forever

Good markets aren’t accidents - they’re designed. The Continuous Clearing Auction (CCA) shows how careful mechanism design can align incentives and bring price discovery for token distribution fully and transparently onchain.

📣DeFi researchers: submit your work to the 5th Decentralized Finance Workshop @IFCA_Conference Important Dates: Round 1: Nov 15 (notify Dec 5) Round 2: Dec 1 (notify Jan 15) All deadlines AoE Easychair link available Nov 1 fc26.ifca.ai/defi/

I sat down with @BradBachu and @cryptoeconprof to discuss topics about blockchain economics and a bit beyond: youtube.com/watch?v=FPc1_Z…. In particular, we discussed multi-dimensional transaction fee mechanism, TimeBoost and transaction ordering policies, L1-L2 tradeoffs, etc.

gm data enjoyooors 📊 I’m hiring an Analytics Engineer @UniswapFND! If dbt / subgraphs / Llama adapters are your love language, come join me and the team building Uniswap Foundation’s analytics backbone (and having way too much fun doing it) 🧙🧙‍♂️🪄 🔗 Link below 👇

Fluid boasts capital efficiency - integrating borrowing, LPing, leveraging, etc But does it actually perform? Looking at one high-volume stable-stable pool, Fluid appears to generate less P&L than simple LPing on Uniswap, even with 9x leverage…

@BradBachu @Uniswap and I recently launched a new podcast on cryptoeconomics. The purpose is to provide context regarding recent crypto events with some rigor. Our first guest was @barnabemonnot @ethereumfndn, who joined us to discuss the Ethereum Foundation reorg, its priorities, the pectra upgrade, and what’s next. 🧵coming with some highlights from the episode