David Reising

Better Vaults need better market structure. With Resolv, a single issuer-side opsec failure was enough to create losses, illiquidity, or emergency actions across a web of downstream vaults, pools, and credit markets. Last year it was the $93m Stream Finance debacle due to a bad balance sheet. LPs aren’t being compensated adequately for the opaque risk they’re taking on in many of these assets through diversified vault allocations. @LotusFi_ doesn’t eliminate collateral risk, but we think our model eliminates much of the incentive to lend against riskier collateral. Lend against blue-chip collaterals like BTC and ETH. Keep liquidity connected. Price credit risk on a curve inside one market.

@Spectromachina @WhiteHouse I love that

@Davidareising @WhiteHouse Based. I’m actually planning to merge with AI, robotics, and cybernetics to live for up to 10,000 years.

@Spectromachina @WhiteHouse I’m gonna use AI and peptides and transmogrify into an eternal sandworm, don’t listen to these guys. Unreal.

@WhiteHouse we're all gonna die aren't we. :-(

@scupytrooples I’m just unimpressed by trades becoming entire businesses. Hopefully it’s bitchin.

if this takes off and the 15% doesn’t compress towards the market rates, that is your que to run and gtfo

Good on you guys. This costs people way more money than people would imagine. Had similar issue at Exodus a few years ago w/ RFQ. We ultimately rechecked the quote a 2nd time prior to execution (after quote was ostensibly locked) and rerouted away from gamers. it was amazing to see the behavior change in a couple weeks.

We've observed a variety of PropAMM shenanigans in the past months. This post covers two aggregator spoofing techniques that systematically deliver worse execution than quoted, backed by empirical data across thousands of fills. 0x monitors execution quality because we believe it’s important for our customers and their users to be able to trust the quotes shown to them.

The conversation we’re having at DAS and it’s resonating.

@MacroMate8 @Amystreet @SolanaFndn

big personal news: first off, Ethereum is dead second, i am now Special Situations at @SolanaFndn. my mandate is mega deals that will drive max value why solana? > the most engaged userbase in crypto with the highest take rate per volume (more than hype coinbase binance) > foundation is very lean and full of killers > other chains dont need me. ethereum is fucked (stuck in communism) and hype’s perp game is mature. solana is perfect for me to have fun and get shit done what will i do at solana: > bring 10B TVL to solana i’ve brokered 1-2B before and wanna up my game. if you are a large TVL provider, we have super scalable fixed yield products at 7-8% in a tradfi setup dm me > help grow RWA perps on solana hype done a great job with oil, gold, nasdaq perps and we will take it further if you are a serious crypto/tradfi market maker in rwa, we have the distribution and open to deals dm me what motivates me personally: first off, I am doing this for glory. I want to come in and be instrumental in growing trading activity and onchain tvl. second, I want to be relevant again. I miss pissing people off while being unavoidable. its fun thirdly, learn how to acquire trading distribution. almost no one in crypto knows how to do but thats where billion usd opportunities lie and they belong on solana.

@shortsqueeznews Weaponized ‘tism doesn’t always land on a pitch.

BREAKING: VC firm Hummingbird is raising $800 million to back "unemployable founders" who are too intense and may be overlooked by other investors. Hummingbird was an early backer of Kraken and Lovable, and all of their funds have returned 10x (solid VC performance is 3x).

@pythianism Hope so. If ceasefire comes through I actually like some of the gold miners where there’s more exposure to diesel and rates.

If Kushner and Witkoff can land it, this would be the largest wall of worry the market has ever climbed On the other side of would be a global order that is more stable than ever, with Hormuz risk completely gone from energy markets Gold looking bad here

@theyoungcrews Lol

this would've sent ETH up +30% in 1 day in 2021

I'm @blockworksDAS NYC with @Davidareising @jordantonani meeting LPs, vault managers, borrowers, researchers & investors. If you're interested in the next phase of DeFi lending we're building @LotusFi_ DM me.

What we’ve learned from speaking with risk managers as we’ve built @LotusFi_ They want to manage risk, not just play musical chairs with collateral. Tight competition in a compressed yield regime further nudges managers towards collateral with opaque tail risk because that’s where the premium yield shows up. This is in part, symptomatic of the one rate, one risk level market structure that most vaults are allocating to. If you're a serious risk manager who wants to manage a defined profile on @LotusFi_ get in touch, we’re at DAS and ETHcc.

@emilylai x.com/davidareising/… We think so too

it feels safer to just earn 3% on your stables via kyc and fdic insured venues like coinbase or kraken …in which case you might as well just buy t-bills on treasury direct i had some funds deposited into a yield aggregator and it took some digging to know how exposed they were to RLP/USR there’s multiple fall points between smart contract, key management, and curator risk that doesn’t really make 6-8%+ yield ready for masses we’d need some forms of tranching, protocol safety modules, or external insurance, all which would eat into yields or require rates large enough for first loss positions to assume risk curious who is building here

A problem with lending against correlated assets is that recovery rates are really low. Which means that when things go wrong, the lender loses a lot of money and they were taking a big haircut on the yield for "protection".

🎯 Right now we have two approaches: Morpho parameters are immutable. Aave parameters are governed. @LotusFi_ let's the lenders (risk managers) choose the parameters they are willing to lend at without fragmenting liquidity.

Probabilistic vs. Binary Risk Probabilistic: Drawdowns you can model and size. Binary: Tail events where liquidity disappears and positions unwind violently. You’re managing catastrophe, not volatility. Most “high yield” vaults are binary risk in disguise.

@WazzCrypto Need better market structure powering lending vaults and transparency around risk. Should be able to earn a healthy yield on blue chip assets by taking defined credit risk rather than capturing risk premium from tail collateral risk whether that’s its backing or its security.

The Defi dream is dead I can get 3.14% APY basically risk free on one of the best tradfi brokers Or I can risk 100% to make 2.13%-3.5% on some of the "most secure" Defi protocols You're not even getting paid for the risk anymore on the yield ur just being retarded

@RyanJTopps @chaseposts @RampCapitalLLC Yes. slop posting getting out of control.

@chaseposts @RampCapitalLLC Yields go down in that case. Right now this signals that people are selling treasuries

The fuck is going on here

DeFi has $9B sitting in rated vaults and $500B in rated assets. The next capital allocator checking those ratings might not be human. Credora's real-time risk ratings are built for both.

@nd_77777 @Timccopeland 😂

@Timccopeland why do they look like the rich people from the hunger games

'“They’re all pussies,” says Meltem Demirors, an early crypto investor who now runs her own firm, Crucible Capital, of her panicked peers. She is layered in diamond crosses and wearing a black sweatsuit with her firm’s slogan—“Believe in Something”—bedazzled across the ass. For the first time in years, she is buying Bitcoin again.'