interno

So it's clear from the debates and discussion on this post that crypto derivatives (mainly perps) product design and market structure that surrounding it remain the biggest problem the industry need to tackle before it can grow to the next level in a sustainable manner. The industry simply cannot go through this level of wealth destruction event every once in a while and we pretend things are fine without fixing the structural problems. That said there is a hope that we can hopefully build a better product looking at the history. The March 2020 market meltdown where BTC fall 50% to 70% in hours are very similar to 10th Oct for altcoins where system outage on leading price discovery venue exacerbate the downward movement, however what make things worse were the fact that those perps were quanto perps which means BTC perps are collateralized by BTC not stablecoins thus you get the extreme reflexivity on the downside and there's just very little way you can hedge this quanto perp exposure. Most market participants recognize this product design flaw and combined with the fact that stablecoins been growing in usage, the market share of quanto perps on Bitmex move from >80% to less than 20% in one year and by the mid of 2021, most people are using USDT margined BTC perps and not BTC margined quanto perps anymore. The collective decision for the industry to use USDT margined perps have definitely improve the resilience of market structure significantly and we get less volatility for BTC as time goes by. I am looking forward to a new product design to emerge that is significantly better than the current iteration of crypto perps.

A proposal for the next chapter of 🦄 UNIfication is a joint proposal from Uniswap Labs and the Uniswap Foundation that turns on protocol fees and aligns incentives across the Uniswap ecosystem Positioning the Uniswap protocol to win as the default decentralized exchange

Ethena sits between CeFi and DeFi, having reached scale across both markets with a ~$15B TVL through USDe and USDtb — the latter backed by BlackRock’s BUIDL tokenized fund. Terminal aims to expand alongside Ethena by exporting USDe in a format that TradFi can consume. A year ago, sUSDe yielded over 20% in CeFi while DeFi rates stayed near 10%. More than $1B flowed into Aave within days to capture the spread. In TradFi, capital can often be sourced at SOFR +100 bps, while sUSDe can offer returns above 10%. This spread represents an even larger opportunity as institutional capital moves on-chain. Terminal is building the exchange for institutional asset trading powered by USDe, where yield-bearing assets serve as core pairs — launching later this year.

Incase you're too slow to realize, this is a true 0 to 1 moment for Global Finance. There is no other venue in the world where you can trade equities onchain, on a CLOB, permissionlessly, 24/7. This is the only relevant equity market in the world open through the weekend. There are hundreds of millions of households around the world that would like access to equities but cannot, and this will be the only way they can get exposure. Given that this is included in the native front end, we should see a massive rerating of both buy backs and fees over the rest of the year. I've rebought back all my exposure. I suggest you do the same.

perpetual swaps are actually pretty interesting instruments. if you could access SPY/QQQ, i bet the funding rate would be a lot more positive for being short than the risk free rate.

this god candle on ALPACA will happen to ENA too btw

Circle IPO did a 5x on launch. XPL is the biggest token of the year. Cloudflare CEO announced their stablecoin this week. USDH went live this past week. ZeroHash just raised $104M to build a stablecoin. USAT announced by Tether this month. Stripe is rumored to be launching a stablecoin early next year. Ethena’s USDe crossed $14B+ in outstanding supply. MegaETH announced their USDm stablecoin. Frax is gearing up to launch FraxNet. Tether is raising at $500B valuation. Korean Won stablecoin is coming via Avalanche. GENIUS act passed over summer and US Treasury Secretary Bessent is aiming for $3T total stablecoin supply by 2028. The demand for stablecoin exposure is practically infinite at this point in time. All big banks are thinking deeply about their digital asset strategy. Couldn’t be more obvious. Welcome to the Stablecoin Supercycle.

Apparently, if you exclude stablecoins and L1s, most of the revenue is generated on Solana now

Pendle handles the time-splitting of tokenized stocks Terminal provides a venue to trade them while isolating the yield and using it productively a mechanism traditional markets haven’t unlocked you must not be afraid to dream a little bigger, darling