Jack Longarzo Profile
Jack Longarzo

@JackLongarzo

2,538
Followers
2,518
Following
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722
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Joined April 2014
Don't wanna be here? Send us removal request.
@JackLongarzo
Jack Longarzo
3 years
Rari dev meetup in Utah
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@JackLongarzo
Jack Longarzo
2 years
My engineer just googled “how to graduate high school” right in front of me. We’re all going to jail.
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@JackLongarzo
Jack Longarzo
2 years
It looks like Fuse pool 136 managed by @ichifoundation pool has some bad debt so I decided to take a look at what went wrong. Below I look into what went wrong and how users should be thinking about navigating risk in Fuse.
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@JackLongarzo
Jack Longarzo
2 years
An update on the @RariCapital hack, what the team has done over the past 12 hours, which Fuse Pools and individual Markets (fTokens) were vulnerable, and what is next.
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@JackLongarzo
Jack Longarzo
2 years
Rari is aware of an exploit on various Fuse pools. Borrowing has been paused globally and no further funds are at risk. The Rari team, and the rest of the Tribe, are working mitigate the loss and recover exploited funds, and will provide updates as soon as they are available.
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@JackLongarzo
Jack Longarzo
2 years
The proposal to market buy $10m OHM is live on snapshot. @OlympusDAO 🤝 The Tribe
@joeysantoro_eth
Joey Santoro 💚🦇🔊
2 years
Olympus DAO just swapped 50m DAI into FEI Thanks to this and other protocol contractionary measures, the FEI peg is tighter than ever 💪 Protocol owned liquidity is so powerful. The Tribe and @OlympusDAO will make it through tough times stronger together 🤝
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@JackLongarzo
Jack Longarzo
2 years
With Tribe Turbo launching 4/20 it's time to highlight what problems it solves and who the numerous benefactors are. @BalancerLabs and @OlympusDAO will be the first to harness the power of Turbo, but there are so many more winners.
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@JackLongarzo
Jack Longarzo
2 years
While not the hot topic of this week, the post mortem on the recent Fuse exploit is live. It analyzes the nature of the vulnerability, the response from the team, the current proplems that need solutions, and additional security measures being taken.
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@JackLongarzo
Jack Longarzo
2 years
Recently security researchers including @samczsun @HRitzdorf , and @YSmaragdakis identified a vulnerability in the Fuse codebase. Immediate action was taken and no funds were lost. This article summarizes the incident and how Rari Capital is moving forward.
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@JackLongarzo
Jack Longarzo
3 years
Here are my thoughts on the most ambitious token merger in DeFi history. My thoughts on the intangible and tangible synergies of this merger as well as an outlook for the future in a 🧵 $RGT 🤝 $Tribe
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@JackLongarzo
Jack Longarzo
1 year
I’m excited to announce that I founded @chromaxyz . Today we are open sourcing Reflex, a framework for building and maintaining upgradeable smart contract applications.
@chromaxyz
Chroma
1 year
On-chain credit is inefficient and limited. We are building a novel lending protocol and are on a mission to change this. Today we are open sourcing one piece of that protocol; Reflex. Reflex is a framework for building and maintaining upgradeable Solidity applications.
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@JackLongarzo
Jack Longarzo
2 years
We love MakerDAO at Rari Capital, but we’ve got 'em beat on this one. Using Maker you’re getting short changed some yield. In the Tribe Convex Fuse pool you can earn even MORE yield on stETH-ETH LP. Let me walk you through how it works 👇 🧵 1/8
@w3g_io
Web3 Growth
2 years
💥 @CurveFinance 's stETH-ETH LP was just onboarded as collateral in @MakerDAO . 🤑 You can create a super leveraged and super secure strategy using @MakerDAO , @LidoFinance , and @CurveFinance together, the real OG top 3 of all DeFi protocols. How does it work? 👇🧵 1/14
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@JackLongarzo
Jack Longarzo
2 years
The Fuse exploit this Saturday has been devastating for many including myself. I'm optimistic that the community will come together and find a good outcome amidst these challenges. I'd like to welcome everyone's thoughts and opinions in the Tribe Forums.
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@JackLongarzo
Jack Longarzo
2 years
Once again @Uniswap is boldly moving this space forward. I don’t think anyone is better positioned than Uniswap Labs or more motivated than @haydenzadams to build the first app to onboard 100m users. In taking the next step for Uniswap, they are taking the next step for crypto.
@Uniswap
Uniswap Labs 🦄
2 years
1/ We’re proud to announce that we’ve raised $165 million in Series B funding to bring the powerful simplicity of Uniswap to even more people across the world 🦄🍾
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@JackLongarzo
Jack Longarzo
2 years
@eulerfinance 's deferred liquidity checking is beautiful. In DeFi it’s exceedingly difficult to improve the UX of an existing protocol as small improvements can require significant architectural changes. They clearly studied their competition and came up with something better.
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@JackLongarzo
Jack Longarzo
2 years
@joey__santoro Yea and 0 women
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@JackLongarzo
Jack Longarzo
2 years
There’s been a lack of clarity around what’s going on with Fuse lately. Here’s what happened with the vote yesterday and the next steps for the Fuse hack repayment. A quick thread on what happened and how governance is moving forward here. 👇🧵
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@JackLongarzo
Jack Longarzo
1 year
The early DeFi lending winners won because they captured demand for very specific trades. Token emissions make the data blurry but it was the trades that had product market fit, not the protocols.
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@JackLongarzo
Jack Longarzo
2 years
Only respect for @hasufl , being conservative led Maker to survive and to thrive. I believe @MakerDAO is uniquely positioned to do more and to be the financial bedrock of DeFi. My thoughts on this proposal and why it is revolutionary.👇👇 $FEI 🤝 $DAI
@hasufl
Hasu⚡️🤖
2 years
Why I voted “NO” on adding $FEI as collateral in @MakerDAO and encourage other holders+delegates to do the same
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@JackLongarzo
Jack Longarzo
2 years
Fortunately the Tribe DAO is well positioned to support a backstop. Ultimately the community will make this decision on how to move forward and provide assurances to those who may have lost funds. While this is painful today we will survive, grow, and move forward stronger.
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@JackLongarzo
Jack Longarzo
2 years
Thank you for to everyone for your patience. This is a difficult time and I am confident the core teams and community will do what is best given these difficult circumstances. The Tribe will grow to become stronger than ever.
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@JackLongarzo
Jack Longarzo
2 years
Great thread on how bad debt works in lending markets, but I wholeheartedly disagree on the effectiveness of @compoundfinance 's reserve mechanism. A while ago I took a dive into this mechanism and found that it was extremely impractical. Let me explain why. 👇 👇 👇
@euler_mab
Michael Bentley
2 years
The bad debt issues and bank run on Rari pool #136 are a timely reminder of just why the reserve mechanism pioneered by Compound is so important for the security of over-collateralised lending protocols. What is bad debt? What is a bank run? How do reserves protect lenders? 👇
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@JackLongarzo
Jack Longarzo
3 years
Just cooked up a spicy 12 page research paper on stablecoins. Hopefully my professor with a PHD in finance can understand why people in DeFi care about decentralization... and how MakerDAO works.
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@JackLongarzo
Jack Longarzo
10 months
@Blockanalia This is probably because people are withdrawing funds due to the recent AAVE bug disclosure and not due to increased demand for leverage. It’s a decrease in the supply side affecting rates, not an increase the demand side.
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@JackLongarzo
Jack Longarzo
3 years
@jillrgunter Which Rari Dev was this?
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@JackLongarzo
Jack Longarzo
1 year
My heart goes out to the Euler team and everyone affected. The Euler lending protocol is one of the most innovative pieces of software on Ethereum. I know the team that built this is capable of exceptional things and am confident the community will recover from this.
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@JackLongarzo
Jack Longarzo
2 years
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@JackLongarzo
Jack Longarzo
3 years
With Fei and Rari working together, making a DAO and launching a token will take only a few clicks. We will become the backbone of infrastructure for DAOs and enable them to spend more time building and less time worrying if their token is sufficiently liquid.
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@JackLongarzo
Jack Longarzo
2 years
I'm always willing to help people navigate the Fuse ecosystem. If you have a question about tuning the paremeters of your own pool or are hesitant to use a managed pool don't hesitate to reach out to me direclty or in the Rari Capital Discord server.
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@JackLongarzo
Jack Longarzo
3 years
Anyone or any DAO can do liquidity mining in Fuse with a few clicks of a button. Fei is the first of many to have a suite of incentivized tokens in their pool. DMs open to anyone that wants help setting this up.
@feiprotocol
Fei Protocol
3 years
We are moving ALL $TRIBE liquidity mining rewards to Fuse over the next month 🤯 This is the first of many tight integrations between Fei and Rari to expect after the merger 👀 Here are all the benefits of this move 👇
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@JackLongarzo
Jack Longarzo
2 years
I am strongly in favor of a full repayment. I think this path is the best decision strategically for the Tribe. I'm confident this investment will pay dividends in brand value and partnerships as we move forward. I also believe that it promotes the right values for the Tribe.
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@JackLongarzo
Jack Longarzo
2 years
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@JackLongarzo
Jack Longarzo
2 years
@fraxfinance , @feiprotocol , and @terra_money have each deposited into the @RariCapital Convex pool. Crazy to see DeFi's top algo stables working together. United we are stronger 💪
@RariCapital
Rari Capital
2 years
The Tribe Convex Fuse Pool ( #156 ) has been seeded with $10M $FRAX from @fraxfinance This liquidity deployment is part of Frax's AMO (Algorithmic Market Operations) that deploys $FRAX into various Fuse pools Thank you to our friends at Frax 😃
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@JackLongarzo
Jack Longarzo
2 years
DAOs are not better than companies, they are different. They are better in some roles and worse in others. I expect most of web3 to be built by companies, but if the infrastructure layer is thoughtfully decentralized, the new web will be far more equitable than the last.
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@JackLongarzo
Jack Longarzo
2 years
As a user of Fuse, if you see collateral in a pool significantly in excess of what can be liquidated this is a red flag. Cascading liquidations can cause the price to decline quickly, dry up the liquidity, and leave the pool with bad debt.
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@JackLongarzo
Jack Longarzo
1 year
A lot is going wrong in the decentralized lending space right now. Some thoughts on how we got here, the dynamics at play, and one solution with serious tradeoffs.
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@JackLongarzo
Jack Longarzo
2 years
A collateral factor of 85% is extremely high. Additionally, the team didn't use supply caps and allowed an infinite amount of $ICHI to be used as collateral. This allowed $ICHI holders to borrow extensively against uncapped collateral.
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@JackLongarzo
Jack Longarzo
2 years
In this situation there were plenty of red flags. The Ichi team set an aggressive collateral factor of 85% on $ICHI and allowed 100s of millions of dollars to be used as collateral. When the price began to decline, there was insufficient DEX liquidity to support liquidations.
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@JackLongarzo
Jack Longarzo
2 years
DeFi money markets will never be the same when Fuse v2 launches
@KentonPrescott
kenton.eth
2 years
Got the inside scope on Fuse v2 from @JetJadeja , and it's going to melt faces. If v1 is a taste of p.less infra, v2 will be a builder's feast
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@JackLongarzo
Jack Longarzo
2 years
@RariCapital and @FeiProtocol have merged their respective @immunefi bug bounties into one joint Tribe DAO bug bounty. Any valid bug bounty on this page reported within the next two weeks will receive three times the current reward for the next two weeks.
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@JackLongarzo
Jack Longarzo
2 years
Fuse is a permissionless protocol. Pool operators are responsible for following best practices to avoid situations like this one. Rari Capital and the Tribe DAO are proud to build permissionless protocols and will continue to do so.
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@JackLongarzo
Jack Longarzo
3 years
After watching all 5 hours of crypto CEOs testifying before congress I'm exceedingly bullish on crypto regulation. It's great to see so many in congress looking to enable the crypto as a technology to thrive. The US is behind but not lost in this race.
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@JackLongarzo
Jack Longarzo
2 years
There will be a Twitter Spaces Monday at 5pm PT where the community will discuss paths forward.
@RariCapital
Rari Capital
2 years
Set a reminder for the Fuse Exploit Post-Mortem call at 5pm PT on Monday
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@JackLongarzo
Jack Longarzo
2 years
Thank you to everyone in the Tribe community and all our partners for your patience and support. I've personally been inspired by this unwavering support and am more motivated than ever to rebuild and to build. We will champion this challenge and move forward stonger than ever.
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@JackLongarzo
Jack Longarzo
3 years
In the next week we will see how @TokenReactor will change the way liquidity works in DeFi. IMO @TracerDAO 's reactor will be the most interesting to watch over the coming weeks as it will demonstrate how Tokemak can efficiently bootstrap liquidity for smaller market cap tokens.
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@JackLongarzo
Jack Longarzo
2 years
@RariCapital Fuse pools are permissionless. The teams that create pools tune the parameters of the pool themselves and each pool has an isolated set of risks. This can make it difficult to navigate risk but effectively doing so can be very profitable.
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@JackLongarzo
Jack Longarzo
2 years
Borrowing remains paused. Eth redemptions on attacked pools (8, 18, 27, 127, 144, 146, 156) have been temporarily paused as the attacker has a significant amount of fEth that could be redeemed for any deposits. We are working on a fix to the internal accounting to resolve this.
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@JackLongarzo
Jack Longarzo
2 years
The $ICHI team had a few options to prevent this outcome. First, they could have set a safer collateral factor. 85% on a volatile asset is almost unprecedented. This allowed users to borrow a very significant amount against their collateral.
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@JackLongarzo
Jack Longarzo
2 years
Thank you to the community and everyone involved for your continued patience and support. The vote to move forward from the recent Fuse exploit is now live.
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@JackLongarzo
Jack Longarzo
3 years
🚨 TRIBE LAUNCH 🚨 NGMI if you weren’t here
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@JackLongarzo
Jack Longarzo
3 years
@FrankieIsLost @transmissions11 You get used to lunch time meetings with t11s, don’t worry
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@JackLongarzo
Jack Longarzo
2 years
Thank you to all who attended and contributed to the Twitter Spaces yesterday. Here is the recording if you missed it and want to catch up on the discussions. Tomorrow I'll be posting to the forums so the community can continue these discussions.
@RariCapital
Rari Capital
2 years
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@JackLongarzo
Jack Longarzo
2 years
With 100s of millions of dollars as collateral and tens of millions borrowed, when the price began to decline there wasn't enough DEX liquidity to foster liquidations. Thus, highly levered positions couldn't be closed. Thus, the pool was left with bad debt.
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@JackLongarzo
Jack Longarzo
2 years
Markets with bad debt are as follows: Pool 8: Fei, Dai Pool 18: Dai, USDC, Frax, Fei, Rai Pool 27: Frax, Fei Pool 127: USDC, Dai, Frax Pool 144: Fei, Frax, Dai Pool 156: Fei, Frax, Dai, USDC
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@JackLongarzo
Jack Longarzo
2 years
@theyoungcrews @RariCapital @indexcoop Or you could borrow eth against $icETH in a Fuse pool and loop to get 15-20% 👀
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@JackLongarzo
Jack Longarzo
3 years
@twobitidiot What if you work nights and weekends in your 20s AND are early in crypto 🤔
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@JackLongarzo
Jack Longarzo
3 years
In the future the merged DAO will be hub of innovation and enable new products and technologies to thrive within the Tribe ecosystem that otherwise could not. We will be what we have been in the past but bigger and better; a place for people with good ideas to build freely.
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@JackLongarzo
Jack Longarzo
2 years
Today builders are the bottleneck of any blockchain ecosystem. There will be no need to scale throughput if more useful things are not built. Also they obviously need transient storage for Uni v4 so please just ship eip-1153.
@saraareynolds
sarareynolds.eth
2 years
yesterday, core devs agreed that eip1153 is not important enough to prioritize for shanghai. pretty bummed but I understand that prioritization is hard. i do think though that we can learn some things from this decision.
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@JackLongarzo
Jack Longarzo
3 years
Following the FeiRari merge we've been discussing a comprehensive overhaul of governance at the Tribe DAO. Governance has become a weakness of many DeFi projets and we want to make it a strength of the Tribe.
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@JackLongarzo
Jack Longarzo
2 years
Too many builders in crypto are looking to compete with each other. Projects who catalyze new on-chain activity and "compete" with the real world will be the winners of this bear market. They will be harder to spot as they won't create the narratives that won in the bull.
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@JackLongarzo
Jack Longarzo
3 years
You will also see us building better infrastructure for new DAOs. @feiprotocol and @OndoFinance LaaS will drive liquidity to AMMs and build oracle infrastructure. Then any DAO can spin up a Fuse pool, do THEIR OWN liquidity mining within Fuse, and have the pool seeded with Fei.
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@JackLongarzo
Jack Longarzo
1 year
Uni v4 introduces a theme of "software as bedrock". People are free to build innovative and more complicated smart contract systems on top of a (soon to be) audited and battle tested base layer protocol. This reduces technial risk and development time but comes with tradeoffs.
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@JackLongarzo
Jack Longarzo
1 year
The exploit to DeFi doomer arc remains undefeated
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@JackLongarzo
Jack Longarzo
2 years
The team is reviewing a fix to the vulnerability and the erroneous internal accounting of these pools as a result of the exploit. We are working with internal and external security engineers on these fixes including engineers from @compoundfinance on these fixes.
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@JackLongarzo
Jack Longarzo
2 years
All Tribe DAO managed pools (8, 146, 156) have had the interest rate curves of markets with bad debt fixed to a low rate. Fodl Finance (127) and OlympusDAO (18) have elected to do the same and the team woriking with the remaining two pool operators about how to move forward.
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@JackLongarzo
Jack Longarzo
2 years
Second, they could have added supply caps to limit the amount of collateral in the pool. Finally, they could have increased the liquidity in the market for $ICHI to reflect the significant activity in the pool.
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@JackLongarzo
Jack Longarzo
3 years
You will see Fei and Rari charging forward as a united force bootstrapping L2s and scaling Ethereum together. We will be tackling Ethereum's scaling issues head on, driving liquidity to L2s, and leaving any doubters of Ethereum's scaling capabilities with their jaws on the floor.
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@JackLongarzo
Jack Longarzo
3 years
@joey__santoro Add intimidates child developers
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@JackLongarzo
Jack Longarzo
2 years
@The3D_ In a lending market you have exposure to every collateral asset. In an AMM you have exposure to every asset in the pool. Not sure how this argument holds.
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@JackLongarzo
Jack Longarzo
2 years
@jordanalexmeyer @Twitter This is a simple mixup. They meant to ban @RariCapital for this
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@JackLongarzo
Jack Longarzo
2 years
@Elliot0x @feiprotocol Huge congrats man. Great to have you in the Tribe taking on an even bigger role.
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@JackLongarzo
Jack Longarzo
2 years
There are many important questions and various paths forward from here. The community will decide what happens next. As I've said many times now and continue to believe, the lessons learned from this will enable us to move forward more stronger and more focused than ever.
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@JackLongarzo
Jack Longarzo
3 years
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@JackLongarzo
Jack Longarzo
2 years
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@JackLongarzo
Jack Longarzo
2 years
@ajbeal Hey, feel free to dm me
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@JackLongarzo
Jack Longarzo
10 months
Llama is a great product for anyone looking to manage access control, roles, and permissions on-chain. I'd recommend teams actively managing smart contract systems look into it.
@llama
Llama
10 months
Llama is excited to announce our $6 million seed round led by @foundersfund and @ElectricCapital to streamline access management for smart contracts.
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@JackLongarzo
Jack Longarzo
3 years
A merger would enable a fusion of talent and innovators. It would bring some of the best crypto engineers and creative forces together with the sole goal of building a better DeFi ecosystem, coming up with new great ideas, and building products that make people's lives better.
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@JackLongarzo
Jack Longarzo
3 years
@transmissions11 SMH at least take a job at @SlingshotCrypto if you want to go to a DEX aggregator
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@JackLongarzo
Jack Longarzo
2 years
There's two categories of crypto vertical integrators fighting to distinguish themselves as they build largely indefensible things. There are parties like @fraxfinance integrating the handful of useful DeFi primitives and those like @Uniswap Labs and now @coinbase integrating
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@JackLongarzo
Jack Longarzo
3 years
So, what do great minds do when faced with a steep barrier to entry and formidable challenge? They innovate. Thats exactly why @feiprotocol and @OndoFinance built their Liquidity as a Service (LaaS) product. They built a way to service DAOs and inject Fei parings into DEXes.
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@JackLongarzo
Jack Longarzo
3 years
Likewise at Fei, the founding team executed a bold vision for a stablecoin and continues to build on these ideas and make the necessary changes to position themselves for the future. The Fei team is already building on top of Fuse and coming closer to the Rari team every day.
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@JackLongarzo
Jack Longarzo
2 years
People are too easily convinced that mediocrity is excellence
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@JackLongarzo
Jack Longarzo
2 years
If you are a user and want real insurance on lending markets your best bet today is to take a look at an independent DeFi insurance provider like @NexusMutual , @riskharbor , @SolaceFi , or others.
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@JackLongarzo
Jack Longarzo
3 years
Also if @TokenReactor is incentivizing reactors with a flat 700 Toke daily and $TCR is the smallest market cap BY FAR, how high will the APY be for depositors of $TCR. This yield will certainly bring more utility to the token in the short term and put more eyes on @TracerDAO .
@JackLongarzo
Jack Longarzo
3 years
In the next week we will see how @TokenReactor will change the way liquidity works in DeFi. IMO @TracerDAO 's reactor will be the most interesting to watch over the coming weeks as it will demonstrate how Tokemak can efficiently bootstrap liquidity for smaller market cap tokens.
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@JackLongarzo
Jack Longarzo
11 months
Morpho Blue is a big step in the right direction for a lending industry that needs a lot of work. @PaulFrambot and the Morpho team are thinking from first principles and I’m excited to see their vision play out.
@MorphoLabs
Morpho Labs 🦋
11 months
1/ Today, we unveil Morpho Blue 🟦 A trustless lending primitive that offers unparalleled efficiency and flexibility. It will serve as a new base layer for decentralized lending.
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@JackLongarzo
Jack Longarzo
1 year
Until now Solidity developers have relied exclusively on libraries and forking. Reflex introduces the first comprehensive Solidity framework. It lays out a scalable architecture for building large applications and abstracts away the implementation details of upgradeability.
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@JackLongarzo
Jack Longarzo
3 years
On the Rari side, we have always been a hub for innovation and have relied on creating good ideas, building products, and executing a bold vision. Our team is thrilled to be working with Fei and looking forward to building the future of finance together.
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@JackLongarzo
Jack Longarzo
2 years
Combine deferred liquidity checking with their transaction builder, swap module, and batch requests and you have some very powerful features. Shoutout to @euler_mab and the @euler_xyz team for building something innovative and improving DeFi UX. I’m taking notes.
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@JackLongarzo
Jack Longarzo
2 years
First a quick overview of how the utilization ratio works in variable rate markets and then I'll why this creates problems bootstrapping Fuse pools. Utilization = Assets Borrowed / Assets Lent Its quite simply a measurement of the available liquidity in any given market.
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@JackLongarzo
Jack Longarzo
3 years
Better lineup than Coachella right here
@BanklessHQ
Bankless
3 years
#DeFi 2.0 Summit! LIVESTREAM TODAY 1pm PST 4pm EST @jai_bhavnani of @RariCapital @pat_mcnab from @TracerDAO @scupytrooples of @AlchemixFi @LiquidityWizard from @Tokemak @ohmzeus from @OlympusDAO Come listen to the Bull Case For DeFi 2.0!
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@JackLongarzo
Jack Longarzo
2 years
Maker guarantees the yield from the stETH, CRV rewards, and LDO rewards, BUT they cant give you the Convex yield. Without the convex rewards, you're getting short changed a whole .45% apr.
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@JackLongarzo
Jack Longarzo
2 years
@dcfgod @functi0nZer0 finish up your degree already, some people need to go to jail
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@JackLongarzo
Jack Longarzo
2 years
@jeiwan7 This is a conscious design choice to an unfortunate limitation of the EVM. Please stop FUD.
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@JackLongarzo
Jack Longarzo
1 year
@Elliot0x Testing in modern solidity codebases looks way better than those that came out only 1-2 years ago. I expect we will see the bar continue to rise. @ajnafi and @PrimitiveFi ’s Portfolio are two repos that are really quite impressive
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@JackLongarzo
Jack Longarzo
2 years
Application layer MEV resistance/redirection will become an increasingly necessary part of staying competitive. I don't think any protocols really do a good job yet. The first movers here will have a huge advantage as they are essentially creating value out of thin air.
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@JackLongarzo
Jack Longarzo
2 years
🔁 Whats Flywheel? Flywheel is what distributes these rewards to depositors in the pool. So now you're assets are earning yield and you're earning the rewards.
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@JackLongarzo
Jack Longarzo
3 years
Now for the tangibles. This is the part where I talk about what will happen in the next few months and what the crypto community will see built. This is only the tip of the iceberg, but here is a taste of what is coming.
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