liebauda
3.9K posts
liebauda
@liebauda
Finance Pracademic
Central Region, Singapore Katılım Mart 2011
1.3K Takip Edilen1.4K Takipçiler
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@luigidemeo You get liquidity network effects if all credit markets share the same type of unit of account your credit is denominated in.
You can have the markets be isolated then.
This is how the tradfi works now. Banks are isolated balance sheets on the global euro dollar credit system
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If onchain credit markets are ever to rival traditional ones, they need to have superior network effects.
You get virtually no network effects in complete isolation.
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Strategic implications for platforms and businesses
• Direct network effects: More diverse participants (from Nigeria, Japan, Brazil, etc.) mean richer discussions, better memes, faster information spread, and higher engagement for all.
• Indirect/cross-side effects: Advertisers, creators, and businesses gain access to a truly global audience without localization costs. Companies can market, sell, or recruit talent worldwide more easily.
• Scalability and competitive advantage: Platforms that nail universal translation build massive defensibility. Users multi-home less when the network feels truly borderless. This drives explosive user growth (social media has already scaled to billions of users) and higher platform value.
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I've long thought the best way to compete with Youtube given the monolithic network effects is to start with a browser plugin that gives better recommendations and cleans your homepage from garbage (shorts).
saila@sailaunderscore
The youtube algorithm has gotten really bad. Noticeably bad. It's just grasping at straws now, I'll click into a video just to confirm it was bad, and then -- BAM -- that genre of video is now 1/3 of my homepage. Not helping that shorts are a huge part of the real estate.
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@RaphaelSignal @DefiLlama You do great work- I really appreciate it.
My general thesis is that the application layer will command more network effects than L1s / 2s / side chains. Sushi ecosystem spans across all.. and the cross chain functionality will happen on the backend.
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1/ $SUSHI on $MATIC activity collapsed across all metrics last week.
TVL -30.68%
Volume -81.73%
Liquidity turnover -74%
This thread attempts to explore what happened. We first look at the data, explore possible exogenous factors, and conclude with predictions. Let's begin!
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3 questions can tell you how network interactions drive value for platform companies
☑️ Are there cross-side network effects?
☑️ Are there local network effects?
☑️ Are there informational or “meta” network effects?
Free read mitsmr.com/2ArRmTY
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@andrewchen Data moats are almost always asymptotic and as a result, usually overrated - not only vs SOTA models but also vs. competitors. cross-side and direct network effects are really the only things that tend to accelerate over time
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much discussion about proprietary data as the moat in AI
Interesting to watch AI startups create proprietary data by being simply earlier to market. Then find a wedge, get momentum, then get proprietary interaction data. These are all the edge cases, corrections, and human-in-the-loop decisions your competitors never see. The theory is to build new models, UX, and capabilities around that
The question is if these moats are enough versus the upgrades in the SOTA models
I am still interested to see how folks get network effects going. Openclaw a recent example of a dev community spawning around a framework and people picking it bc the functionality will be richest. That’s the natural moat but others will be found too
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3 questions can tell you how network interactions drive value for platform companies
☑️ Are there cross-side network effects?
☑️ Are there local network effects?
☑️ Are there informational or “meta” network effects?
Free read mitsmr.com/2ArRmTY
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Really fascinated by the growth playbooks in web3 - they look very different than web2 in some ways, yet all rely on deep understanding of cross-side network effects.
Going to be fun watching this evolve.
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cross-side networks are harder to displace than direct networks at all but the most tam saturated states
Even then direct network effects strongest when expanding scope of users included, which might as well be a cross-side network effect, or at least burning the bridge strat
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In 1971, money changed from a natural system (gold) to a socialist system (fiat).
Crypto is tech to replace socialist money with a free-market system.
Market systems are inherently competitive and as tech evolves, new monies will continue to emerge to challenge existing ones.
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For Midas Newcomers, VC Network Effect Led To Big Gains trib.al/6A8DjSk #ForbesMidas
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In a period of crazy rate of change we keep getting hit with reminders that the fundamentals haven’t changed: network effects are still the most important path to long term defensibility.
Michael Mignano@mignano
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Judge: will you specify what would have happened absent this conduct? (BA: good but for question)
FTC: often not possible to quantify total effect bc of network effects
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I’ll be live tweeting this (once we get to economics)
Brian Albrecht@BrianCAlbrecht
I’ll be at “Economics Day” tomorrow for FTC v Amazon. If you’re also following that or going to be there, here’s a primer on the disputes about conduct from @geoffmanne and me truthonthemarket.com/2025/03/06/bey…
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1/ What is a two-sided network?
A two-sided network connects consumers and merchants. As more merchants accept PayPal, more consumers use it—creating a flywheel effect that boosts transaction volume and platform utility.
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@colludingnode @llamaonthebrink I'd say yes because it builds network effect and user habits in the right place (onchain), making it much easier for users to swap to something else later.
As an individual, I can even make a personal choice to hold only ETH, and do real-time swaps to other people who want USDC
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I watched the recent SteadyLads episode with Kain and I have to admit I had no idea that vitamin and the EF dislike DeFi…
It almost feels hard to believe in a sense.
The overwhelming majority of ETH’s value comes from its use as collateral in DeFi, why on earth would you want to see fewer DeFi protocols being built?
I honestly hope it’s not true. I would feel a bit jaded tbh since I see vitamin praising USDC all the time which I find to be a very unimpressive use of crypto.
It’s almost ironic to shill something like USDC (which literally undermines ETH as an SoV and the neutrality of the chain) and ask for less DeFi (the thing that lends the most value to ETH) in the same breath.
If I had to sympathize with the view I would say maybe vitamin is a purist who thinks much of our defi isn’t really defi due to the reliance on trusted oracles and multisigs (which to be fair is a valid criticism) and that he would encourage more “pure defi” with no external dependencies like Uniswap.
But I can’t read Vitalik’s mind so I don’t know what he really thinks. I just find it hard to believe that his views of defi are really that pitiful, if so, that would be very discouraging to all of us who are defending ETH on the timeline and using the chain while attention migrates else where.
If you have a line to vitamin I request that you send him this, I still don’t really believe the assertion that he doesn’t like defi but I’d prefer to hear it from the horse’s mouth.
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Is the stablecoin world winner-take-most?
Cathie Wood and CZ were discussing this exact question recently.
The network effect says yes - and ironically, delays in the GENIUS Act and CLARITY Act gave Tether and Circle more runway to lock in that advantage.
"Ironically, regulations which should spur more stablecoins - the delay in those regulations have allowed for more of the network effect than otherwise might have happened."
FT @therollupco @andyyy @robbieklages @CathieDWood
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Sean Strickland apologized to Khamzat Chimaev before the decision 😳
“Hey Chimaev, whatever happens, I wanna apologize. I went too far and I’m sorry.”
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My new working paper is out, the title is: "Network Effects on Zero-Take-Rate Protocols: Evidence from Decentralized Stablecoin Markets"
Link: papers.ssrn.com/sol3/papers.cf…
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