Mathias

$15 million in 24-hour volume on Architect’s traditional asset perpetuals exchange. We reached this milestone 2.5 months after launch. Still early.

We’ll be at ETHDenver next week 🇺🇸 If you’re attending and want to connect in person to talk markets, liquidity provision, or what you’re seeing being built across the Ethereum ecosystem, reach out and let’s connect. Our BD team, led by Matt Engel @Mhecrypto, will be attending — feel free to shoot him a message if you’d like to connect! Telegram: @MATTHEWHE

Van gamevrienden naar cryptotoppers: ‘Plots sloten we deals met formule 1-teams’ #Echobox=1763184043" target="_blank" rel="nofollow noopener">tijd.be/dossiers/crypt…

@hosseeb @CryptoHayes Agreed.

Did Ethena Really Depeg? I’ve seen a lot of chatter about the Ethena depeg during the market mayhem this weekend. The story is that USDe briefly depegged to ~68c before recovering. Here’s the Binance chart everyone is quoting: But digging into the data and talking to a bunch of folks over last couple days, it's now clear this story is not correct. USDe did *not* depeg. First thing to understand about USDe: its most liquid venue is actually not on exchanges, it’s on Curve. There’s hundreds of millions of dollars of standing liquidity on Curve, while only tens of millions on any given exchange, including Binance. So if you just look at that chart of USDe on Binance, it looks like USDe depegged. But if you superimpose the other liquid venues for USDe, you get a different picture: We see here that while USDe wicked down on every CEX, it did not do so uniformly. Bybit briefly hit $0.95 then quickly recovered, yet Binance depegged a crazy amount and took forever to regain the peg. Curve meanwhile dipped a mere 0.3%. What explains this difference? Remember, every single exchange was under immense load on that day—it was the single largest liquidation event in crypto history. Binance was extremely unstable during this period, causing MMs to be unable to shift inventory because APIs were failing and withdrawals and deposits were bricked. Nobody was able to step in and arb. It’s like a fire broke out on Binance, but all of the roads were blocked and firefighters couldn’t make their way in. This caused a wildfire to break out on Binance, but pretty much everywhere else, that fire was immediately put out by bridging liquidity. (As Guy shows in his post, USDC also depegged a few cents temporarily on Binance due to the same general instability issues—liquidity just couldn’t get ferried in, but this wasn’t a depeg event for USDC either.) So OK. Unsurprising that while there’s API instability, prices on exchanges are wildly different because nobody can get inventory in. But why did it decline so much deeper on Binance than on Bybit? The answer is twofold—first, Binance did not have any primary dealer relationship with Ethena to be able to directly mint and redeem on-platform (Bybit and other exchanges have this integrated) which allows MMs to stay on-platform and still perform peg arbitrage. This is huge, as otherwise an MM has to take their money *out* of Binance, go do the Ethena peg arb, and then bring back their inventory. Nobody was doing that in a moment of crisis when APIs were failing (plus so many other coins were cratering). Second, Binance had their oracle poorly implemented and started liquidating positions they shouldn’t have—good liquidation mechanisms don’t trigger on flash crashes. If you are not the primary venue for an asset (which Binance is not for USDe) then you should look at the price on the primary venue. If you are only looking at your own order book, you will liquidate too aggressively. This caused Binance to start liquidating USDe as though it was worth $0.80 or whatever, which caused a cascade. This is a big part of the reason why Binance is refunding people who were liquidated on USDe (other exchanges AFAIK are not doing so)—they messed up by only looking at their own price instead of the true external price. So this was a Binance-specific flash crash, which better market structure could’ve prevented. USDe on its primary venue, Curve, was actually trading at a tight peg the entire day. This is really different from what you’d describe as a depeg. If you remember USDC in 2023 during the banking crisis, this is what an actual depeg looks like: During the banking crisis, USDC traded down on every single venue. There was *no* place where you could buy USDC for $1. Redemptions were literally halted, so $0.87 was the *true* price. That’s what a depeg means. This instead was a Binance-specific dislocation. It’s a big lesson for market infra, but critical to understand the nuance here if you are trying to draw inferences about USDe’s mechanism from this weekend. USDe was fully collateralized and worth $1 on its primary venue through the entire episode and actually increased its backing collateral over the weekend due to the price action. That said, this kind of market instability is ultimately good because it exposes lessons for the whole industry. Guy’s post below lays out how any exchange, including Binance, can avoid this kind of issue in the future. TL;DR: USDe did not depeg, Binance did.

🎙️On the Crypto Conversation podcast, we're with Jens Willemen, Co-Founder @KaironLabs, an advisor and crypto market maker for digital asset issuers 🎧 bravenewcoin.com/insights/kairo…

@MilaLovesJoe Rolls Royce != Rolls Royce Motor Cars

BREAKING: Rolls Royce will shift production to the United States and will hire American workers to avoid the tariffs. More WINNING for the USA.

@EvgenyGaevoy @martypartymusic @krakenfx @binance @Bybit_Official People really are clueless 😅😅

@martypartymusic @krakenfx @binance @Bybit_Official Bybit ran out of eth lately, maybe that would be a good place to park crypto with all these horrible cartel exchanges conspiring together

MM Update: @krakenfx also sending $SOL $SUI and $ETH to #Wintermute - this behavior will not be forgotten. Remove all crypto off exchanges - @krakenfx @binance @Bybit_Official all not to be trusted. Full analysis of my investigation into these centralized cartels coming out soon. You wont believe the evidence Ive acculated showing the corruption in the CEX domain.

@ThinkingBitmex x.com/ethena_labs/st…

You want proof the market is controlled by market makers? Look no further than Bybit Open Interest Systematically going lower and lower If this was retail - it would be front loaded and the bleed would slow down Instead its just going down in a straight line Probably one of the biggest MMs on Bybit just ejecting everything for security reasons

@hosseeb @benbybit Pretty good job indeed! Good communication also for institutions. From our POV we see they are prioritising smaller accounts first. We are trying to rebalance our funds but our txs are congested. Also one of the reasons why you see a price diff between ByBit and eg. Binance

Bybit has seen ~$1.7B in withdrawals, which is about 11% of their assets. According to @benbybit's livestream, they've already processed 70% of the pending withdrawals. Significant outflow but nowhere near an FTX. Seems like they've done a good job so far to calm the market.

27DEC24 showing 25% APR on Deribit — that's a data point far on the right tail. For reference, here's its distribution for 2024.

@Damian_Web @PixOnChain Make money to drive around in Rolls Royces and taking jets was indeed more what they focused on.

This is RTFKT They made $168M from their NFTs Now, they are shutting down Here’s the untold story of their rise and fall: 1/10

With a perpetual, the more you're directionally right, the more you'll pay funding to carry that position. A future can give you the opposite — Long delta, long funding. You can think of a future's premium as reflecting an implied average funding rate until maturity. When you buy the future, you lock in this implied rate. The graph shows the cost to carry a BTC-PERPETUAL (pink) versus BTC-27DEC24 (blue) since the start of 2024. Towards end of Q1, BTC rallied, funding rates rose, and spilled over into higher future premia — Future holders were paid to carry a profitable delta position. This makes perpetual-future spreads interesting. They allow you to trade implied vs realized funding.

10/12 🔥 Bitcoin marktinzichten met Bitvavo met @remyvdn , @m4thje en @NicolasDB7 youtube.com/watch?v=1xpmyn…

Mathias Beke (@m4thje) recently joined a panel with @bitvavocom at the Future of Bitcoin Conference 2024 (@Start2Bitcoin). Set in Antwerp's historic Handelsbeurs 🇧🇪, the panel talked about what’s in store for $BTC based on recent market insights and how #liquidity plays a role in it.

🎙️On the Crypto Conversation we're with @m4thje, co-founder @KaironLabs to chat ethical market-making, Kairon Labs trading services for cryptocurrencies and token projects, and much more. 🎧 bravenewcoin.com/insights/kairo…

WATCH: Matthew Engel (@Mhecrypto), Head of Sales at Kairon Labs, joins a panel of industry experts to discuss Liquidity Solutions for Token Issuers on V4 & Beyond. "Our role is to be a steward and an advocate to bringing tokens to secondary trading... give token issuers guidance, expertise, the education on what life's gonna be like once you have a token that's actively being traded." This #Token2049 Singapore side event, Hooks 2049, was hosted by @ArrakisFinance, @UniswapFND, and @Panoptic_xyz. #cryptomarketmaking @token2049

1/5 Join the team at Kairon Labs! Our strength comes from our driven and dynamic team. If you're excited about pushing boundaries in #crypto and #web3, we’d love to have you on board. Elevate your career with us; start here: kaironlabs.com/careers

Mathias Beke (@m4thje), Co-founder and CTO of Kairon Labs, participated in @mpost_io and @CryptomeriaCap's Hack Seasons Conference Brussels. ⚡️ Here are the highlights of his keynote and panel: kaironlabs.com/blog/mathias-b…

The panel discussion "Seeking the Most Profitable Investment in the Current Market" has already started! Join us: lu.ma/hack_brussels Moderator: Terry Culver, Executive Director at @DFG__Official . Speakers: Gabriele Zennaro, Partnership Lead at @OVioHQ . Jenny Cheng (@jennyqcheng), VP of Investment at @AnimocaVentures . Mathias Beke (@m4thje), Co-founder of @KaironLabs. Ray Xiao (@_RayXiao), Senior Director at @IOSGVC

Only a few slots left! @bitvavocom and @kaironlabs are hosting a gathering at Brussels’ best-kept speakeasy, just a few minutes walk from #ETHCC2024. Savor the best of Belgium 🇧🇪 with premium drinks and a chance to network with fellow industry founders. Secure your spot now: lu.ma/s7izyt06 Only for those in the know. #ethcc #ethccbrussels