@0xTindorr Not putting @CurveFinance in here shows it’s not a serious article.
Pendle, Curve, UniSwap, and Morpho are the winners.
English
CloudLlama
200 posts
CloudLlama retweetledi
There will be a lot of pressure to choose between aero and curve , or curve and aave , or x & y & z in the coming days . The obvious assets to own are the ones we keep talking about . Don’t make it hard
English
@DromesLaw The way I read it is it can only touch the intermediaries, not the protocol if it falls under title 6.
It’s probably broad enough where if you have a CFTC they could try and regulate but good luck.
English
"Fraud and manipulation" is the entire CFTC enforcement toolkit... read what I wrote. I'm not worried about Aero being able to comply with Title III - it does. I'm concerned that CFTC will take jurisdiction over DeFi markets enforcing Phantom type compliance where the SEC only touches traditional intermediaries.
English
Lol. This is a horrible take.
Clarity is great for true DeFi. Not good for Dromes who don’t comply and would need to be regulated. Bad for $AERO
For a protocol that genuinely meets the decentralization test, the CFTC’s authority shrinks to fraud and manipulation enforcement over conduct and assets, plus risk-management supervision of any registered intermediary whose order flow touches the protocol. The protocol itself, and the developers, validators, and self-custodial users interacting with it, are largely outside the CFTC’s direct regulatory reach.
Jim@DromesLaw
With the upcoming markup of Clarity in the Senate things are reaching a boiling point with both sides unsure of whether the bill will pass. Here is why I think Clarity FAILING would be good news for DeFi (and maybe the rest of crypto too)
English
CloudLlama retweetledi
At this point it’s undeniable that there is a good faith, pro consumer side and a bad faith, anti consumer side to this debate
Sander Lutz@sander_lutz
Banking policy leaders now signaling that if they lose on stablecoin yield at Thursday's Clarity markup, they will ramp up their fight for changes on the Senate floor. "Thursday is Thursday, and there are 24 members who will opine, and we still have 76 members left to go before this thing is finished," one banking leader told me today. Alsobrooks + Tillis seem poised to stay put with their new yield compromise, however, even though banks don't like it. After banking trades released proposed changes to the deal Friday, an Alsobrooks spox told me the senator stands by her + Tillis' earlier statement that they "respectfully agree to disagree" w/ banks on yield. "It can't be a compromise if both sides don't agree to it," a frustrated banking trade leader also told me today. The trade leader also threw some shade at crypto for how they've navigated the process. "We don't debate this on X," they said. "We're very professional. X is really not, you know, the proper place to negotiate this."
English
We should not forget @yieldbasis is also CLARITY compliant.
Which means BTC treasury companies can earn yield passively and compliantly.
Even adjusted for risk, this gives BTC treasury companies the ability to earn yield that they didn’t have before and use that to pay dividends.
English
CloudLlama retweetledi
Formal verification is going to be game changing with immutable DeFi
Vyper@vyperlang
Vyper now has a public, machine-checked formal semantics 🔥 The first complete, precise, executable definition of what every Vyper program actually means, written in HOL4. This builds on @Verifereum’s EVM semantics, which already comes with a growing library of proven properties about the EVM itself (gas monotonicity, storage isolation, etc.).
English
@lex_node Not Aave, not Aero, not Spark.
Only @CurveFinance meets these criteria that is a fully permissionless, immutable, vertical DeFi protocol.
Few understand the re-pricing that will occur now that the decisions basically only prioritized by Curve are the de facto requirements.
English
U.S. Congress is officially more cypherpunk than most of you on here
the new CLARITY Act is better than ever on respecting 'decentralization' (loosely speaking) & gets rid of the 'we didn't promise anything so now we're unregulated' loophole many of us were worried about
it replaces the corporate style 'common control' test with 'coordinated control', which in theory will be a harder standard to meet (up to the SEC to ultimately define it, but the criteria it must consider are quite robust)..
corpochains will struggle to meet this standard...this doesn't mean they're illegal but it will mean sales of the token by insiders etc. are much more regulated and more disclosure is required
L2s will have to make sure their security councils are quite narrowly scoped
English
CloudLlama retweetledi
In hindsight it will be obvious that $CRV & $CVX is the trade with Clarity going online.
Aero@0xAero8
What in the 🤯 $CRV $CVX
English
CloudLlama retweetledi
Clarity act is coming and so is $CRV
Fasten your seatbelts
$CVX 🤝🏽 $CRV
English
CloudLlama retweetledi
@jing0_ @3cardtrickHT Agree with this post and love $PENDLE here. I still think $CRV is the biggest Clarity Act winner long term.
English
CloudLlama retweetledi
CloudLlama retweetledi
$CRV is showing real promise. $.26 is the level we want to break and hold. I want ideally to see a run to .28 - .30 with retest at $.26. We shall see.
English
@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
English
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.
English
CloudLlama retweetledi
Clarity act is a done deal
Kalshi@Kalshi
JUST IN: JPMorgan, Morgan Stanley and BlackRock are now hiring for dozens of crypto jobs
English
English
The llamas are the best community in crypto. Hands down.
I applaud @Raacfi for being truly at the cutting edge of DeFi.
However, #pmusd is just way too confusing and I don’t get why it’s a stablecoin. The collateral takes a lot of expertise to understand its value.
Dealing with peg keeping just seems like more trouble than it’s worth. I get maybe wanting to have a basket of RWAs backing it, but still…
It’s really really hard to build that and unfortunately, distribution will be next to impossible.
The things that work in DeFi are the simple things that scale.
English
CloudLlama retweetledi
CloudLlama retweetledi
crvUSD just had the most aggressive supply expansion in its history.
In 14 days, circulating supply went from $234M to $327M. That is a 40% increase in two weeks. On one day alone, $58M was minted. The supply has since settled at $319M, still up over 36% from where it was a month ago.
I wanted to understand what drove this. The answer is simpler than I expected.
@llamalend is winning the wholesale borrow market. As of April 24, three wallets held over $26M in crvUSD debt on LlamaLend at 0.4 to 1.1% APY, choosing it over Spark USDS on rate alone. Those rates have held.
Right now, the WBTC market sits at 1.10% APR with $178M still available. wstETH at 1.10% with $129M available. sreUSD at 0.48%. The whales got in early. The capacity for a lot more has barely been touched.
When borrowing is this cheap, more people borrow. When more people borrow crvUSD, supply grows. As of May 5, @llamalend confirmed that credit usage has tripled in just two weeks.
This is not a spike. This is a market forming.
Here is the part most people are sleeping on. Everything happening with crvUSD eventually flows back to @CurveFinance gauge incentives, which flow back to @ConvexFinance CRV weight, which flows back to $CVX holders.
Stablecoin issuers who want cost-effective liquidity use Curve. The ones who want to grow TVL without burning their own treasury use Convex's gauge system to amplify those incentives. $CVX, locked for 16 weeks and 5 days, sits at the center of that entire flywheel.
crvUSD supply is growing. Credit demand is tripling. $307M in borrowing capacity sits barely touched at sub-1.1% APR. Whales are already inside.
The cleanest expression of all of this is not CRV. It is $CVX.
English