
Nikolai Moreau
1.3K posts

Nikolai Moreau
@nikmoreau
Capitalizing on market inefficiencies through advanced funding arbitrage in crypto. Founder @bendbasis








Checked the data just to make sure, but yes this is true. No ADLs on Variational for $ARIA. Can't say the same for CEXes. This is an instructive moment to explain how the Variational risk model works. Remember, you're effectively trading bilateral perpetual swaps on Variational, not trading on an exchange. In tradfi, this might be analogous to a hedge fund having swaps with JP Morgan. The first benefit is that the user never touches the exchange, so there is an additional protection layer against ADL. To be transparent, ADL is possible on Variational, but the number of occurrences are an order of magnitude lower due to the p2p model. The second benefit is that the user's funds remain on-chain in a segregated smart contract. You can check your on-chain balance at any time, or withdraw funds in under 5 seconds. Any hedging trades placed by OLP onto CEXes are collateralized by OLP's own funds, not the user's funds.



























