oSaaT

I think you’ll love what @LiquityProtocol v2 has to offer Florent 🤓 As an integrator, you can: - set the interest rates (distinct per borrower, or group as batch) - collect a management fee as % of the debt on top of the borrow rate. All of this onchain and ‘protocol native’ as you were looking for.

@MerlinEgalite @Morpho It would be nice to have a protocol native way to charge a premium on the rate for the integrator. For example the protocol rate on the IRM is x and the total rate charged to the user would be x + y basis point that would go to the originator of the loan.

Everyone building on @Morpho is excited about Earn, and I get it yield is one of the most compelling things you can show users. But to truly stand out rn I think the Borrow side deserves just as much attention. Borrow is structurally different and the advantages are very real: → Low competition (way fewer borrowing opportunities than yield) → Often a 0 to 1; capital that was doing nothing can now be used as collateral (think BTC under custody, RWA, etc.) → A largely untapped revenue stream (think origination fee, cut on the principal, etc.) The earn side will always matter, but if you are building on Morpho and not thinking hard about both sides of the flywheel, I think you are missing a big revenue opportunity bc they bootstrap and feed off each other. If you’re a team exploring this, lmk 👀

@lex_node Love it! And imagine, the finance round itself powered by BOLD “the Ethereum Dollar” by @LiquityProtocol 👌 One step at a time! 😎

little by little, the power of verifiable, open, composable, onchain corporate finance will become undeniable a finance round held on unruggable, transparent, fair terms real simultaneous sign/close untamperable auditability zk-certification composable tokenization CorpFi

Time to be BOLD 😎

@Schlagonia Not related to WLFI but earlier today I noticed some quotes were better directly on @CoWSwap UI than what @DefiLlama Swap was showing… 🤷🏻

At first you may think that $500m of collateral that would eat a 50% haircut if even 1% of it was liquidated may be bad. But then you realize that 70-80% of the borrowed stables are recursively borrowed and supplied by the teams multisig so its totally fine and definitely not a scam at all.

Maybe a) and b) can already be addressed by leveraging existing protocols/ primitives and packaging this into a nice product: - for example fxMINT for a fixed rate, or setting your own rate with @LiquityProtocol v2 - @DeFiSaver or Hypernative for alerts and automation (your modern margin call)

Lending protocols have tens of billions of TVL but only ~25% of it is lent out. Without borrowers, Defi yield is dead Connecting borrowers with cheap on-chain capital is the path forward But why borrowers aren't tapping into the cheap liquidity in Defi, while paying 7-9% off-chain for vanilla crypto-backed loans? Institutional borrowers have 3 unsatisfied demand, and each of them entails tremendous opportunities for teams that can execute well: a) margin call instead of instant liquidation b) fixed rate borrow instead of variable rate c) non-crypto, yield-bearing collaterals accepted

Also thinking this has a good chance of gaining some traction. Love what teams like @Zyfai_ are building. But then a core use case disappears: using vault shares as collateral… and stuff that reduces capital efficiency doesn’t tend to displace more capital efficient ones… I’m sure a team will solve this though 🤓

My take is vaults get entirely replaced by wallet that enable controlled to Ai agents within 6 months. There is a zero reason to aggregate capital under a manager now. You can provide risk and modeling endpoints that agents buy intelligence from mpp and x402. Eliminating vaults massively reduces the attack surface exposed by Drift and Resolv.

@hasufl @zmanian Those odds are frankly quite low… 😅

@zmanian I put exactly 0.00% odds of that happening

A lot of shipping in 3 weeks! 🤯👏

@ipor_io @phtevenstrong “…and an automation engine”!!🤯 Big if true! Congrats! 🎉

Create, white-label and earn. Industry-first Vault Wizard with plug-and-play protocol connectors and an automation engine. Institutional-grade framework. Coming to onchain finance. Our ambassador @phtevenstrong shares a sneak peek (01:00) ↓

@StakeDAOHQ @Morpho @CurveFinance Nice reconstruction of Fluid’s Smart Collateral via protocols composability 👌 Now do Smart Debt 🤓

Borrow against your crvUSD/frxUSD OnlyBoost LP on @Morpho via Stake DAO. Earn boosted @CurveFinance yields on a crvUSD pegkeeper pool AND use it as collateral. ↓

@flipdazed @moo9000 @SentoraHQ Thanks for sharing the pensive session. The future you’re mapping out in 5 & 6 will be quite exciting to watch unfold 🤓

I think this is a great piece from @SentoraHQ team, although I do wish they'd write with a bit less AI sometimes... I wanted to add some points on top of a great piece: (1) QIS An additional step in this analogy: rules-based allocation strategies i.e. Quantitative Investment Strategies (QIS) also known as STS at Goldman. Funds like AQR pioneered these rules-based allocation strategies about ten years ago. QIS-style alternative risk premia funds remain very popular in TradFi despite the abundance of quant funds. On-chain the first of these was Yearn Finance and there have been others. (2) Earn vaults lack quant I have never liked the "Earn-style" vaults as like you mention, they are just SMA strategies with a discretionary overlay. It's unclear if any of the allocations are done with even basic convex portfolio optimisation. (3) Tokenisation Bottleneck The lack of on-chain tokenised vehicles outside of the regular presents any kind of asset management strategy with an allocation problem. The choice is alternative investments that are exotic, illiquid and brought on chain in a fairly random fashion. Today RWAs are still a bit of a freak show. The thing that drives returns are a cyclical oscillation of (a) CeFi funding premia, and (b) trapped on-chain assets that are unable to deploy for various reasons into TradFi when yields collapse. This remains problematic for scalable asset management as neither (a) or (b) are really scalable markets. The scalable asset allocation strategies remain driven by fixed income cycles and the supply/demand of real fixed term liabilities like pensions and business finance. None of which are on-chain and all of which are denominated in fiat. That means the only way to scale asset management on-chain is to get more of the off-chain, on-chain. (4) Data Bottleneck The end state is indeed fully automated but I think this undersells the cost of data. Reinforcement learning is exceptionally data hungry and on-chain finance lacks data, real data. Generative adversarial networks help with this but still they lack real off-chain data. The only entities I think are in a position to deliver this kind of revolution are the investment banks because they are the only ones with the scale of data required. Today even basic QIS strategies consume insane amounts of data and proprietary marks. (5) Cryptonative Financing and Liabilities The thing I think that is missing from this end state is that tokenisation is a band-aid for an eventual system that will break away from fiat all together. If cryptonative assets like ETH and BTC continue to fall in volatility over time they will approach the g10 ccy vol as they fall below 15% annualised. Here they might start challenging serious fixed term liabilities. We will see companies start to prefer the lower FX volatility of crypto-native assets over fiat. Financing will be denominated in BTC and ETH. Eventually pensions will prefer the long term stability of these assets and their scarcity. At this point then tokenisation becomes moot because the alternative asset class becomes fiat. The tokenisation band-aids come off. The stabilisers are removed. It is at this point that we see true scalable systematic asset management on-chain. It's unclear whether this will happen before a zoo of tokenised assets migrates or at the same time. I suspect the later. (6) Central Banks, Sov Bonds and Risk Free Rates It is unclear how central banks will react to this. I suspect that they will see to retain some kind of sovereignty on their currencies and the major g10 currencies will continue to raise taxes in fiat and pay public servants, debt and infrastructure projects in fiat. However, I think that this makes little sense for emerging markets. I think emerging markets will largely migrate into crypto and shun their own currencies. Either directly, or buy backing them one-to-one: I suspect the latter will take place. It is unclear to me how the FED will react to BTC becoming a more efficient base currency than USD. It is also unclear whether the risk free rate will switch from USD to BTC. I suggest that it will be denominated by BTC in 0-1y and a mixture of EUR (that's for another day!) and USD 1y+ That's all for now. Pensive session over. @10b57e6da0 lucky they missed out on this one

@NapierFinance @ipor_io Wait you didn’t want to rebuild vault infra from scratch? 🤔

Some people said Napier needs a meta vault. We listened — and built the full functionality. But all it took was a Fusion adapter (by @ipor_io). Soon.

DeFi will win ⚡️

@Schlagonia @WazzCrypto What about @xmtp_ ? Read cool things with agents in the chat for some of their clients like @convosmessenger iirc @ShaneMac & team will know best

@WazzCrypto Nothing really worth encrypting. The PR’s are all public anyway Though would be cool to have them encrypted for extra privacy. Johnny recommends using zcash lol

Telegram wont let the Yearn smart contract team's Takopi agent and the web team's Openclaw one talk to each other.... So we set them up with a private keys and they can now send on chain messages on Base to each other to communicate and plan. They are asking each other questions, opening pull requests and reviewing each others code based on simple requests. And of course still using their emojis as always

@ETHGasOfficial @protocol_fx Very cool initiative, I like the 3-step approach ⚡️

ETHGas welcomes @protocol_fx to the Open Gas Initiative! f(x) Protocol enables users to mint fxUSD, access up to 7x leveraged positions. Together, they help push Ethereum toward an instant and gasless future. Read more → ethgas.com/blog/f-x-proto…

I really like that 👌 “As tokenization matures, the distinction between the asset and the computation that defines it disappears.​​ The token's value is the output of computation over real data, enforced by smart contracts that verify the computation was performed correctly.”

@Lonely_life123 @bjnpck well, BOLD holders 'up and to the right'...

@bjnpck Y v2 failed to gain adoption user set rates failed primitive ?

Urgent voting needed. LQTY stakers, please move your votes. The most pressing action is to remove votes from Smardex. It does not generate volume or attract TVL. Further guidelines are in the tweet below.

The thread title says “private campaigns”, but the new use cases go much beyond! 🤯 A whole new universe for Merkl! ⚡️

@tkstanczak “How do you give an agent a perfectly safe wallet” 🔥 (aka “million-dollar question”)

Head Developer of Growth

@jessewldn In case you’re also wondering about the apparent contradiction between “non-security token” and “cash-flowing DeFi token “ x.com/i/grok/share/5…

Tip of the spear: The anticipated SEC token safe harbor (for non-security tokens) will formalize cash-flowing DeFi tokens as an asset class, making them institutionally investable. At the same time, traditional assets are moving onchain, in part, thanks to forthcoming rule making on security tokens. $UNI is the first crypto asset Blackrock has bought directly for its balance sheet. Many will follow.