SebVentures

1/ Introducing the Crypto Banking System, a roadmap to bring DeFi to be a challenger to TradFi cryptobanking.network/the-crypto-ban…

@hexonaut singleness of money

The Stablecoin FX Layer already accounts for 35% of Uniswap's stable-stable volume, with only 150m in TVL. With the deployment of the DualPool rehypothecation hook and integration of USDG pools, we expect this to become the dominant venue for stablecoin swaps across all crypto.

Very nice to see that @SteakhouseFi has crossed one billion USDC on @base . The three comma club is where you can start funding the real economy.

The valuable information for DeFi: - tokenized equities-backed lending might increase the borrow rate against other collateral (regardless of isolated vs monolithic design) - it will also be used to arbitrage the perp rates. Which I doubt will happen while spot trading is costly

The @zama confidential USDC vault from @SteakhouseFi is now in the top 10 largest USDC vault across all chains on @Morpho and top 20 across all assets and all chains

And most of those on @SteakhouseFi vaults.

Interesting spike pattern on Aave around midnight. Probably someone exploiting some reward campaign I guess or wanting to pump numbers at each EoD Also interesting to see that the borrow rate was arbitraged between the two venues.

@sealaunch_ But then you don't surface when there are incentives on the borrow side. Transparency has gone down since DeFi summer. I'm the first being annoyed. I really doubt caring about donations tracking (risk free in a way and also permissionless) is the #1 problem.

Maybe an UI notice if the yield is not directly from market allocations. Eventually most yield sources will be abstracted away from users and a lot of users probably don’t care but the industry will need to find ways to make this transparent. To be fair, a lot of yield bearing tokens have low transparency on yield source and underlying strategy.

Steakhouse's EURCV Prime vault is intriguing. UI shows 4% APY, 0% incentives, but ~78% of the $100M deposits are sitting idle. The remaining allocation earns closer to ~1.3-1.4%. Blended organic yield is actually ~0.3%. So where does the yield come from? The vault's holding address has received ~546,100 EURCV across 22 transfers since Feb, roughly weekly, all from the same sender. Mechanically, it's a straight ERC-4626 donation: sending assets directly into the vault raises totalAssets without minting new shares, so every depositor's share value rises. The address donating also manages Merkl incentives on Steakhouse x AUSD vaults, suggesting this is Steakhouse related address and this likely reads as SG-Forge/Steakhouse incentivising yield to bootstrap the markets while there is no EURCV borrow demand, which is a normal practice. The issue isn't the incentive, it's not disclosing it in the UI. Two things matter for depositors: - The advertised 4% isn't organic, it's incentivised, with no visible schedule or end date. If transfers stop, APY reverts toward the ~0.3% blended rate. - It's invisible on every dashboard depositors actually check, so new entrants can't price the risk. This doesn't seem malicious, Steakhouse are a serious, established player in the space. But the mechanism itself could be used maliciously by less scrupulous curators/protocols, and undisclosed direct-transfer subsidies aren't great practice regardless of intent.

Crossing 5000 users on the @RobinhoodApp vault.

Singleness of Money

@cryptographicas @deepitreal @luigidemeo That can be done.

@SebVentures @deepitreal @luigidemeo Or better yet a steakhouse spoke

Interesting debate between @luigidemeo and @SebVentures here. I think Luigi makes a great point because the thing you want to isolate is the collateral state. A tokenised stock posted as margin and a tokenised stock opted into stock borrow are not economically the same and even though isolation can stop rehypothecation it also fragments the exact thing securities lending depends on which is inventory discovery. So imho the cleaner primitive is shared liquidity with explicit borrowability states where you can separate the risks via accounting without unnecessarily splitting the market .

@deepitreal @luigidemeo @cryptographicas Well, we are deploying and operating isolated markets at scale and are quite happy with flexibility it provides.

@SebVentures @luigidemeo @cryptographicas Isolated markets mostly make sense for long tailed assets. They're by definition and design not flexible imo Smart contract complexity does go up in a shared liquidity setting but that is the right tradeoff to make if the underlying assets are high quality

@luigidemeo @cryptographicas I'm in the view that isolated market provides flexibility. A monolithic is heavy on smart contract code that is hard to change, you have more out of the box but then it's hard to change. On an isolated, you can add new features within hours. Sure happy to jam. It's still early.

@cryptographicas @SebVentures Yeh the single market isolation just provides no flexibility where credit inherently needs this. Happy to jam with you and the team @SebVentures on cool market structures we can create

@SebVentures i would encourage you to look into the AEZ to see how that turned out

I think people will be pretty stunned by the incremental growth Robinhood chain delivers. The good news is it's real growth, and will provide DeFi founders with a roadmap for where to build. The bad news is it'll move assets off Ethereum and threaten to erode its last remaining moat (liquidity). Hard to see what makes this trend reverse on a 12-18 month time horizon.

@luigidemeo There will be stock borrow demand only when markets makers/dealers will be more advanced RWA-wise. Which is not tomorrow. But if you remove rehypothecation , then I don't see the problem of isolated markets at all.

Why is it a very narrow demand? Also, to be clear, I'm not proposing rehypothecation. Collateral posted for margin can be flagged non-borrowable. Borrowable supply can come only from holders who opt in to lend, same as TradFi sec lending programs. The point is one market should support both buckets, not that they get commingled. v4 spokes make this nice.

I thought the same, i.e. that rehypothecation is key. It is a very narrow demand but a significant risk. The stock would get shorted while getting down, leading to illiquidity, failed liquidations and bad debt. Nevertheless, building it on top of an isolated lending is not that hard and provides more control.

@block_stories Amazing event

@SebVentures we liked it as well

OH:

The @SteakhouseFi EURCV vault is crossing $100M . Borrow rate is consistently at 1.5% due to the supply/demand imbalance.