Jetty

@0xyanshu @AnthonyBowman43 But more importantly - you are correct that the IRS layer is key and allows current lending markets to remain while offering the ability to express the fixed rate trade as a derivative rather than a competing market structure

Both belong on the map, and IRS protocols might be the most underrated lane in the entire fixed-rate conversation. @AnthonyBowman43 compressed it cleanly: "the rate risk has to live somewhere." If not with the lender (fixed-rate origination breaks vault liquidity) and not with the borrower (variable spikes), it needs a third party to underwrite it. That's the IRS layer. TradFi already runs on this. IRS notional outstanding sits at ~$500T, with about $8T traded daily (BIS). It's the largest single derivative class on earth, roughly 10x global GDP. Every fixed-rate mortgage, corporate bond, and long-duration loan in the legacy system exists because banks can swap the rate exposure away. The IRS desk is the structural enabler. Without it, fixed-rate lending hits a ceiling fast. DeFi has been trying to build fixed-rate credit without the underlying IRS layer. That's why Bowman's MTM critique bites and why @term_labs hit the cold-start wall, building the visible product without the invisible infrastructure (x.com/dionchu/status…). The two protocols building that layer now (there are also others that tried or kinda adjacent to IRS but for simplicity let's take these): @KairosSwap: AMM-based IRS pools, $300M notional in beta, designed to let lenders on Aave/Morpho offer fixed rates by hedging the variable side @SupernovaLabs_: orderbook-style, millisecond-latency, extends to FX and crypto cross-rates too. Closer to how TradFi IRS desks actually operate. Interestingly, the pool-vs-orderbook architectural debate playing out in fixed-rate lending (@CentuariLabs/ @Loopscale vs. @Morpho-style) is mirroring at the IRS layer (Supernova orderbook vs. Kairos AMM). Same primitive split, one layer up. Once IRS markets compound real depth onchain, fixed-rate origination stops competing with variable-rate markets and starts being layered on top of them. I believe that's the unlock and @aave scale follows from this, not the other way around. Would love to hear more for the builders themselves (comments and DMs open).

@0xyanshu @AnthonyBowman43 Kairoswap fractures liquidity and doesn’t support multiple tenors, permissionless amm won’t scale like it did for spot swaps. Supernova is well connected but orderbooks don’t do early capital formation well and again can’t support multiple tenors without fracturing liquidity

A few alpha invites going out today...

@0xyanshu Totally agree - but question is how does one naturally develop from traders expressing that view through a trade. It’s one aspect that our interest rate swap markets make possible and interested to see more approaches on how to solve this too!

Great time presenting at consumer day @SolanaEvents

I’ll be in Miami next week for @solana Accelerate and talking about @JettyFi at Consumer day Monday! s/o @SuperteamUSA for having me

Crypto needs fixed rates! Proud to be part of Superteam USA See you in Miami next week 🫡

Crypto needs fixed rates and that's exactly what Jack & JSB are doing with @JettyFi. These Superteam USA members are back to building!

@AnthonyBowman43 Jetty fixes this

@henryksarat @ryanconnor the credible benchmark rate needs to be expressed from the information generated by traders This hasn't materialized because IRS couldn't offer more than 1 or 2 tenor markets at a time (and offer a deep enough book to trade) We can fix that and when we do... the curve emerges

Rate swaps need deep liquidity and standardized reference rates, both of which crypto still lacks. Most yields are too volatile and venue-fragmented for clean fixed/floating pricing. Yield stripping (Pendle-style) won because it sidesteps that problem: it tokenizes the cashflow directly instead of trying to bootstrap a swap curve. Synthetic IRS will probably stay niche until there’s a credible on-chain benchmark rate everyone agrees on.

Why haven't rate swaps taken off in crypto? Seems obvious to me.

@0xMerp For hyperliquid yes but not on hl

can someone build funding rate swaps on hyperliquid pls

@HecoChain @phtevenstrong @tradexyz

@JettyFi @phtevenstrong @tradexyz WEN?

Everything is an IQ test. Low IQ: 1) Don't understand the @tradexyz oracle rollover mechanism. 2) Long rates on Boros without understanding the oracle rollover. 3) High leverage pair trade with USO or OIL without considering rollover, beta, or the fact that all these markets are isolate margin. Medium IQ: 1) Pair Trade USOIL/WTI to collect funding; white knuckle the CME oracle price rollover and hope to be able to hold this trade until May 19th (when oracle price should be close to spot again). 2) Long May CME, short OIL on HL. Collect ~85% annualized return from backwardation while shorting an asset that performs roughly 20% better annually. High IQ: 1) Already passed, but: Long WTI on HL / Short May CME contract, collect insane funding while being mostly neutral -- Exit before rollover starts (today) after collecting ~350% APR for a few days. 2) Short Boros rate above 200% and collect an average of -350% funding without being exposed to CME rollover oracle price change. Higher IQ: 1) Already Passed, but: Reverse engineer the likely funding curve leading into rollover last week, and pile into @boros_fi shorts while they were still above -30% (congrats to those who nailed this). 2) Using that funding curve, determine the minimum possible funding rate (most negative) the last hour before each rollover, and short if funding payment will not exceed the %1.5 price decline or long if funding will exceed the price decline. Hedge using CME.

@phtevenstrong @tradexyz you can count on it 🫡

@JettyFi @tradexyz ELI5 when it's ready

super interesting to see if this develops in prediction markets, but very much agree about the need for this type of market... its what we're betting on actually we're not set up to target this exact market, but doing so would uniquely work on our market architecture if we had a rate oracle to work with

soon prediction markets will be moving beyond yes or no "will inflation exceed 3.5%" throws away everything the market actually thinks about where inflation will land (very bad) the next version, whether it's polymarket v2 or someone new will let you trade the full distribution and not a single threshold but the entire curve of possible outcomes. instead of buying yes at 65 cents on one number, you trade a range: "i think inflation lands between 2.8% and 3.2%" your payout depends on where reality falls on the curve. close but not exact? you still earn something this is how options surfaces already work for stocks but prediction markets just haven't caught up yet the liquidity improvement alone makes this worth building . right now a platform needs ten separate markets for ten different inflation thresholds and each with its own fragmented liquidity pool. a continuous distribution puts all of that into one market, one pool, one source of depth. market makers provide liquidity once across the full outcome space instead of spreading thin across a dozen binary markets. it also produces fundamentally better information and that's a very rich signal for anyone making real decisions this makes the current binary model look like prediction markets V1

@AndyRewNFT 🫡

learned about a cool product from a team I trust today. Going to be following this one.

Oh yeah? 👀

@fintechfrank @ventuals @alvinhsia @GSR_io And Jetty will be there to support those rate markets

NYSE is building a new ATS for tokenized stocks + ETFs, trading 24/7. Huge validation and bullish for DeFi perps. It also helps solve "the weekend pricing oracle problem." @ventuals' @alvinhsia breaks it down on @GSR_io’s The Crypto Tape

Seeing a lot of sharp accounts follow us recently 🛟👀

@jsblair Bullish Friday night traders

Peak worst time for farming engagement - only the real sikkos are still trading the 24/7 365 crypto markets - exactly our kind of people. Bonus points if you DM me too