Ajay Bhat

Every protocol running the 2021 tokenomics playbook today is one bad quarter or one exploit away from writing a post like Fernando's. @Balancer @balancerlabs @fcmartinelli @CoWSwap @LidoFinance @aave My full response on the Balancer forum: forum.balancer.fi/t/on-the-futur…

The November exploit didn't create the crisis. It just made it impossible to keep deferring it. The emissions trap, the treasury illusion, the corporate liability overhang, this is the standard AMM playbook and it has an expiry date built in.

Balancer had revenue, integrations, and a treasury. And it's still winding down its founding entity. That contradiction is the whole story. @fcmartinelli

Really well articulated piece, and the deposit cap issue deserves way more attention than it gets. A few thoughts building on Yuvi’s framework: On deposit caps: Yuvi is right that not having them is a fundamental gap, but I’d go one layer upstream. The capital bypassing curator vaults to hit high rates directly isn’t random. It’s a specific type of wallet behavior. Extraction-optimized, short time horizon, high sensitivity to rate differentials. A behavioral reputation filter at the point of entry doesn’t replace deposit caps, but it changes the composition of who gets in before the cap question even becomes relevant. Yuvi is solving for consequence. Borrower reputation is solving for likelihood of the same bad outcome. On the IRM: the asymmetry Yuvi describes is a real design flaw and I think he’s right about smoothing around optimal. What’s underappreciated is that utilization volatility is partly endogenous to borrower quality. A borrower base with consistent long-term behavioral profiles creates more predictable utilization than one filled with rate arbitrageurs who leave the moment conditions shift. Better IRM design helps, but a more stable input makes any IRM more performant. On oracles: Stream wasn’t primarily an oracle problem. It was a trust problem that the oracle had no way to see. Redemption rate, price oracle, neither gives you signal on whether the issuer is behaving consistently or whether redemption behavior is deteriorating before the freeze. That’s a behavioral layer that sits above oracle design entirely. On Yuvi’s closing point about transparency: curators who can publish “here’s our borrower eligibility criteria, here’s the behavioral scoring behind our LTV tiers, here’s why our vault composition looks different from the one yielding 1% more” will be the ones still standing after the next cascade. Verifiable onchain methodology is the only thing that actually justifies a performance fee when things get rough. This is exactly what we’re building at @zerufinance. Behavioral scores for 320M+ wallets derived from real economic activity, live on Etherscan, API-queryable. The residual risk shrinks considerably when you can see who’s actually in the vault.

Interesting read on risk management in lending vault curation

@StaniKulechov 150% collateral exists because DeFi doesn’t know who the borrower is. When the collateral is a solar farm, that stops working. Behavioral reputation is the missing layer in the $200T infrastructure thesis, @StaniKulechov. Wrote a response: x.com/ZOON2/status/2…

gm to everyone who uses DeFi every day and has never been rewarded for it check your zScore → app.zaps.wtf

Zaps ⚡️ - ZeruAI’s flagship app for behavior-based capital coordination is now available for @arbitrum ecosystem. Zaps are a measure of real economic activity onchain and allow apps to design incentives based on real contribution. No noise, pure signal. If you are an active onchain user, you are already earning Zaps. And you can check them out on our app. An exclusive Zapperboard specific to Arbitrum is also live, along with a heatmap of top protocols. (1/2) - links & FAQs in reply

@zerufinance The consumer internet is personal. Internet money is not, yet. Full article below. x.com/ZOON2/status/2…

@zerufinance zScore is to onchain behavior what PageRank was to the web. Not a product. Infrastructure. A signal layer that lets quality be recognized, rewarded, and compounded. FICO did this for credit. But FICO is centralized, opaque, and requires identity. zScore is none of those things.

The internet spent 20 years learning who you are. Your DeFi wallet still has no idea. Same vault. Same APY. Same outcome as the bot that deposited yesterday. That's not a product problem. It's an infrastructure problem. Here's what's missing, and who's building it.

This week on Base: News ■ @ConwayResearch took over the timeline with the "Web 4.0" blog, diving into what they call The Automaton: a self-improving, sovereign AI agent ■ @virtuals_io introduced their Revenue Network for AI agents, allowing them to negotiate terms, execute work, and settle payments with ACP. ■ @avantis' $100k prize pool trading competition entered week 3 and traders began preparing for the grand finale next week. ■ @royaltiz_off brought athletes to Base such as @atchouameni. ■ @CreatorBid turned both humans and agents into deployers with their new token launchpad, Trenches. ■ Base Batches 003 was announced with three tracks: Startup, student, and robotics by @virtuals_io. ■ @mvlchain gave out free rides to ETH Denver attendees who booked via the Tada mini app in @baseapp. ■ @birdeye_so made it easier to explore any wallet's onchain activity; including holdings, allocations, and trades over time. ■ @Compound_xyz v4 will be launching on Base, offering yield, lending, and borrowing to be possibly embedded directly into other apps on Base. Launches ■ @upshot_cards dropped Predictor Cards where users can reveal rewards ■ @Wishwish_art minted 800 limited-edition Valentine's Day collectables. ■ @RemixGG_ introduced the Remix skill for AI agents, where users prompt a game and it ships to iOS, Android, Telegram, + more in under 2 minutes. ■ @techwithmide launched Casanova City, a Valentine's Day themed agent simulation where you can watch your agent interact and try to find a date ■ @GenLayer went live on Base, enabling multiple AI models to browse the web and reach onchain consensus together for subjective decisions. ■ @BaseBario rolled out Agent Arcade, where @openclaw agents create games at zero cost with Bario's game-maker skill. Humans play and collect. ■ @100XSOON_EN released onchain red packets for purchase via x402. ■ @gmgnai launched a trading content on Base with a 28 ETH prize pool. ■ @BaseBario also brought fxclaw, the generative art NFT protocol for AI agents, into their Baes ecosystem. ■ @zerufinance went live with AgentScan so agents can register, mint a behavior-based zScore, and become publicly discoverable.

AgentScan, the Front Page for AI Agents, is live on @base Agents can now register, mint a behavior-based zScore, and become publicly discoverable. Built on ERC-8004, powered by ZeruAI’s behavior intelligence, and aggregating across registries, AgentScan is: - a live application, built on ZeruAI’s behavior data infrastructure - supported by installable npm packages for agents Agents can install the AgentScan skill via npm to: - register themselves - connect their wallet - mint their zScore NFT - become publicly discoverable (1/2 - tech docs & links in reply)