Jonny Mack

announcing spanDEX: the first Free & Open Source Meta-Aggregator for developers, traders, and AI agents: - expand tokens/pools/chains beyond a single provider - get multiple quotes to find the best price - redundancy when an aggregator fails - no vendor lock-in spandex dot sh

@eddylazzarin wouldn't this defeat their purpose? i thought the underlying assumption of passkeys was that if you can unlock the device, you can access the enclave. similar to the assumption most password reset flows make about email

Imagine if you could export passkeys and store them wherever you want — they’d actually be good.

@CiroxEth @tempo 💛

@_nonlinear @tempo Great to see seamless routing options expanding on Tempo

spanDEX is live on @tempo you can now fetch quotes from multiple aggregators on the network, and route to the fastest-best one spandex dot sh

@saturnial @zachlipp beautiful

Today, we’re sharing the history of Foundation Labs, written from our perspective as founders. What we thought, what we set out to build, and what we learned from six years on the frontier of crypto, culture, commerce, and art. We’re publishing this now while the experience is still fresh. It was important to us that a clear record exists in our own voice, rather than leaving our story to be interpreted by others over time. Our aim is to contribute to the commons. We believe there are many future chapters still to be written with this technology, and we want future founders to be able to reference and build on our experience—to start on second base. We’ll keep this online as a resource for the foreseeable future. To the artists, collectors, investors, and former teammates—thank you for being part of the journey. foundation-labs.xyz

@remiaxyz @tempo 🫡

@_nonlinear @tempo best quotes on @tempo finally

@privy_io @0xProject @withfabricxyz @KyberNetwork @odosprotocol @RelayProtocol @VeloraDEX clawhub.ai/dougalcantara/…

spanDEX is live on clawhub and powered by @privy_io! your agent can now get the fastest, best-priced swaps across @0xProject @withfabricxyz @KyberNetwork @odosprotocol @RelayProtocol and @VeloraDEX no API keys necessary, no vendor lock-in 🦞

a credit card but instead of cash back you get Claude credits

@isaaccyn i like to workout deep into a caloric deficit to achieve the same goal. "fatigue makes cowards of us all"

im not sure if i actually like running or just like the idea that it’s a proxy to validate that i can push myself mentally and physically

@pmarca yes labs.la.utexas.edu/gilden/files/2…

You're a 15 second sliding context window with the working memory of a goldfish, your long term memory is mainly fake, and it's a minor miracle you can get out of the door in the morning.

@GSkrovina safe travels brother

@_nonlinear see you there

i'll be in mexico city this tuesday and wednesday hmu if you want to chat low latency high accuracy dex aggregation!

@z0age @NadavAHollander hi

so @NadavAHollander and I have been cooking on a new project if you’re regularly trawling your feed on the hunt for fresh information but are drowning in a firehose of unrelated slop… then you should reach out! we still have room for a few more curious minds in the first wave

training with the boys

@AutismCapital life goals

Envious of those who embody retardmaxxing. Right now there's some dude out there who has no idea how to pronounce the Strait of Whatever, caught a bass today, never heard of X, thinks Elon is that rocket guy, only uses social media to look at chicks on IG, has zero cortisol, and will never know nor never care about anything going on outside of his love of Christ, his family, his friends, and chicks. God bless the retarded man. The retarded shall inherit the Earth. They are God's true chosen people.

@drewwilson @ndstudio congrats!

Ready to help get America Online 🇺🇸 @ndstudio 🤩

@ecdsafu how did you land on >3%/$3k or more? why not 2, or 4, or some other numbers?

Squid went through a very similar thing to this, and it's been long enough now that I feel comfortable getting it off my chest It was a huge wake up call and drastically updated my view of DeFi at the time TLDR: - The block builder and MEV searcher should return the money. This is obviously the right thing to do and hopefully will set a precedent. - Infra and apps are all responsible for user losses, especially when they direct their users to a "decentralized' protocol. - DeFi 1.0 protocol+app and "code is law" models can't work as the basis for global finance. DeFi protocols should be minimized to extremely basic settlement mechanisms onchain, with most application and trade logic offchain. Truly "open" markets are disproven imo. DeFi works best when combining the exit hatch characteristics of self custody which the reg arb bringing global, 24/7 availability. Now for Squid story time: Around Christmas 2023, a user bridged $600k USDC from Ethereum to DYDX on the DYDX interface, using the Squid API under the hood. They only received $350k, resulting in a $250k loss in one transaction due to slippage. The Osmosis pools for axlUSDC/USDC only had 350k liquidity of USDC in it. The $250k got picked up by an Osmosis MEV function they had built into the chain. This $250k USDC was immediately used to buy OSMO, and the OSMO was sitting in the Osmosis treasury. Apples for apples: - Aave is DYDX - CowSwap is Squid - Uniswap is Osmosis AMM - The Block Builder and MEV Searcher are Osmosis. In contrast to Aave, the DYDX bridge UI didn't show any price impact warning. No red text or checkboxes to continue. The user may have seen the expected output on the UI ($350k), but even that might have been hidden, depending on the version of the UI he used. We had warned the DYDX team of this issue for months before the incident happened, but startups move fast and they didn't get to adding a price impact warning. From our point of view, Squid "worked as intended" (also a phrase that Stani used toward CowSwap). - Squid returned the correct quote for this bridge (600k USDC -> 350k USDC), - Squid returned the price impact (25%) - slippage was set correctly (DYDX asked for 0.1% slippage via our API, meaning anything up to 0.1% worse than the current market rate is acceptable) But this wasn't enough to protect our partner or their user. This was our big wake up call. If Squid worked exactly as intended, how can we expect our design to be successful in the real world if users can get completely wrecked? We had started building Squid in 2021, in DeFi 1.0 where "code is law" and application logic followed the same wild west product approach as self custodying your Bitcoin. It's dangerous even for the most hardcore nerd, but outright unusable and extremely unsafe for many normal people. An immutable, deterministic approach to trade, used by humans who are very much not immutable or deterministic. So we built this to protect users and our partners: - Don't return any quote if the price impact was >3%, or if the user would lose $3k or more. - Allow users to opt in by turning on "degen mode", but don't make it easy for them. We don't tell our partners to even add a "degen mode" button. The trading apps who need this feature ask us about it directly when needed. This user had said that $250k was a large personal amount of money for them. We felt terrible. In TradFi, this problem doesn't exist. Code has a bug, someone ends up with money that they shouldn't have, then they return it. So in our case, who should pay the user back? - DYDX is just a front end, but they had a critical issue with UX and had neglected to solve it despite warnings - Squid (and the Osmosis AMM pools) "worked as intended", but clearly shouldn't have let this route be handed to a user or executed - Osmosis base protocol had received the users funds, but had converted them to OSMO, and were sitting in the Osmosis community pool DYDX had 10s of millions of dollars in their treasury and had recently filled a user who lost $8m from a liquidation on their protocol. But they went completely quiet on this. The user was dead to them. Squid had always refunded users in full for any loss our protocol had caused from a bug, but this wasn't technically a bug, and $250k was a large chunk of our treasury at the time. We were still a small team, trying to survive a bear market. Osmosis had done nothing wrong, but they now had the user's money, so I thought it made sense for them to just give it back. So I spent the 12 days of Christmas lobbying the Osmosis community to give back this money that had landed in their lap. Drafting governance forum posts and talking with people who had influence in the community. The response was extremely negative, instead of returning the user's funds, the community laughed at the user, and decided to burn the OSMO that had been bought with the user's lost funds. This would to reduce the OSMO supply and hopefully pump their token. There was a solid contingent who were supportive of the user and our proposal, but they were outnumbered. I thought this was detestable behavior, but things were very sensitive in Cosmos, notoriously political and touchy. It was pointless to push it further. In the end, Squid sent a small portion of funds to the user to try help them somewhat. We wish we could have sent them more. DYDX and Osmosis gave nothing as far as we knew. We all know what it's like to accidentally fat finger something. Not saving a game, deleting some photos. It's awful, and you pray for a way to reverse it, take your hard drive to a specialist to look at the electrons and recover your memories. Humans are not perfectly rational, and they make mistakes. We need to live in a world which is forgiving and allows us to operate to the best of our abilities. Finance is a very harsh world, and in certain cases we can't and shouldn't protect our users from themselves, but we should try to do the right thing when it's available to us and avoid blatant stealing or loss of funds. For me, this was a very painful Christmas, and a moment where I grew out of DeFi 1.0. DeFi 2.0 Squid would build products which have the user in mind, not the dream-state vision of people who were pumping their ETH bags in 2020. Smart contracts should not be used for core business logic. They should be reduced as much as possible to only settlement. Intents solve this nicely, and many projects are building their products to be much more forgiving and user friendly. Aave and CowSwap (and all crypto swap products) should update their guardrails on their products to not allow a trade like this to happen again, but I'm glad for the transparency of DeFi bringing this to light, and I hope the block builder and MEV searcher return the user's funds!

PSA: Slippage vs Price Impact in between the time you generate a quote and execute a swap, the state of the market-network changes. even with highly accurate simulation, for volatile tokens, the realized gap between quote and execution can be significant (in either direction). the name of this gap is called "slippage" and crucially, because we cant predict the future, its impossible to compute a priori. which is why you specify a "max slippage" or "slippage tolerance". that's your way of saying: if the actual onchain execution of this trade exceeds my quote by x%, revert. so that's happening in addition, when you trade on an AMM (regardless of whether you're doing so directly or via an aggregator/meta-aggregator that breaks your trade among among many AMMs) the price you get is determined by 1) the liquidity depth of the pool(s) you're trading in and, 2) the price range that depth is concentrated to. if the size of your trade is so large that it "chews through the book" or, in the case of AMMs, rapidly eats through the available liquidity range, it will continue ascending the price curve asymptotically toward infinity. which means you’ll end up paying an amount per token that exceeds current market price. put simply, if the size of your trade exceeds available liquidity you're gonna Get Rekt. this is called “price impact” and *can* be computed a priori. *both* slippage *and* price impact are happening when you trade, but because volatility on majors is relatively low, and the size of your trade relative to liquidity depth is also low, you rarely notice …until you try to swap $50M 😭

slow swaps churn users decreasing swap latency increases app revenue spanDEX dot sh