Centralization caused the FTX fiasco, not DeFi. Regulators must make sure not to conflate the two. My OpEd in the
@WSJ
@WSJopinion
with
@VivekGRamaswamy
Australia puts forth a common sense proposal; if you custody user assets, you should be regulated. Kudos to them for not conflating CeFi with DeFi and remembering the reasons regulations exist in the first place - to protect user funds.
DeFi is dying and DEXs are to blame. To rescue the system we need to return to first principles.
#1
LPs have to profit, without them the value of DeFi is moot.
#2
Traders need up-to-the-second price info w/ minimal transaction friction. Here’s how we do it. 🧵👇🏽
Elizabeth Warren thinks crypto is for money laundering, but as law enforcement becomes more sophisticated it is turning into an effective tool to fight crime, including terrorism. My latest in
@ForbesCrypto
.
The biggest impact of DeFi may be forcing TradFi to innovate and become more customer friendly. Just as the biggest impact of Napster/filesharing was forcing record labels to allow Spotify.
The first drop from the most interesting initiative to change digital art market structure I've seen yet. All proceeds regranted to emerging artists. Bids taxx deductible. Bid starting in 1 hour!
DeFi PSA: Imagine if you gave your money to a hedge fund manager who pocketed a % of every trade they made with your money, instead of a % of the gains they earned for you.
They are going to make lots of $ losing trades.
This is the same as LP'ing in Uniswap/Sushi/Pancake
Shipyard is offering our collective expertise to support the Sushi leadership + community with a transparent report to help reestablish credibility. We feel it is important to ensure Sushi's story is a successful one.
There is $12B in DAO treasuries and 1.7m voters, but many haven’t even incorporated. With unlimited liability, that’s crazy!
In the latest “WTF, Crypto” ep, I chat with Adam Miller (
@TheThriller_
) of
@MIDAODS
about why and how to incorporate your DAO:
Shipyard is offering our collective expertise to support the Sushi leadership + community with a transparent report to reestablish credibility (updated link!)
Crypto founders are flush with capital and want to move fast, but the biggest bottleneck to speed is people, because people do the actual moving.
@veradittakit
(partner at
@panteracapital
) and I dig into crypto hiring in the latest
#wtfcrypto
podcast ep:
The FTX saga will inevitably bring about increased regulatory scrutiny. Which is ironic because a centralized review will not be as scalable as a crowdsourced audit that’s offered by DeFi.
As I shared with
@Coindesk
, DeFi crypto ≠ CeFi crypto.
I spent a few weeks this quarter hosting 1:1 calls with LPs from across DeFi. As I connected with more people I realized that their experiences signaled broader trends in the ecosystem.
What started out as product due diligence turned into Shipyard's 2023 LP Report. Hope you
Data is showing that NFTs are retaining value just as much as Modern Art. And investors are betting on enduring value, including a 3 year (!) loan on a Squiggle on
@gondixyz
. Read my latest in
@ForbesCrypto
@squiggleDAO
Madoff.
MFGlobal.
Enron.
History is littered with financial intermediaries that began as regulated entities and ended in devastating losses because well meaning regulators couldn’t keep up. DeFi is the solution that removes trust. Magic thinking won’t.
Penny stocks.
Subprime mortgages.
Credit-default swaps.
History is littered with financial schemes that began with dazzling rewards & ended with devastating losses because they had flourished in regulatory gaps. Crypto is following a well-worn path, & consumers need protection.
Bottom line. A DeFi that puts fees > profits will slowly bleed the entire ecosystem of liquidity, then users, then its game over. DEXs have to put users ahead of topline revenues and design so that every user gains. It's possible. It just takes some spine. 🏋️
An open call to
#opbadgeholders
to allocate their OP votes to
@Clipper_DEX
and add Clipper to lists. Real Yields attract Real Users, which drives Real Impact to Optimism! Here's a more comprehensive writeup .
@Clipper_DEX
has achieved quorum, now lets
Keep transaction costs low. Gas, slippage, and transaction fees add friction to trades. DEXs can reduce costs of all three by being more efficient stewards of LP capital, executing only beneficial trades, and eliminating the need for arb bots. 🏎️
Proud of the
@ShipyardSW
team for the work poured into
@Clipper_DEX
these past 2 years.
Even more excited for the Clipper Community who are taking the helm. Clipper was built for its community Today marks a milestone for decentralizing DeFi. I've got my
#proofofpirate
AdmiralDAO, the DAO behind Clipper, has just launched its governance token – SAIL.
Repeat.
🔊SAIL TOKEN IS NOW LIVE! 🔊🏴☠️
Hoist the Jolly Roger to show your
#proofofpirate
This week,
@Karl
(
@HomeCoinFinance
) shares on the long-standing unfairness of traditional home mortgages, & how he is bringing real-world assets on-chain to tackle this issue.👇
Developer marketing has been demystified, thanks to
@adelynzhou
from
@chainlink
.
Get her insights on how projects can attract developers + her take on projects with impressive developer communities.
Join us on this episode of 'WTF Crypto'.
Join us for the
@CodexProtocol
@rareartlabs
and
@ConsenSys
crypto-art auction on Saturday! We'll be auctioning an exclusive cryptokitty and demoing Codex Protocol for the first time.
We're thrilled to reveal the CryptoKitty available for bid online in the Live Art Auction
@EtherealSummit
. Learn about the celestial one of a kind licensed digital collectible and the
#blockchain
inspired
#art
by
@CryptoKitties
, Guilherme Twardowski
@VivekGRamaswamy
Im sympathetic to the point. But equity and bond holders do seem to be getting wiped out. Doesn’t that deal with moral hazard to some extent?
Alliance works with founders to build world-changing companies of the future — and we'd love to work with you.
The deadline to apply for ALL11 2023 is June 14th.
Submit your application at
Now that AdmirdalDAO is in charge of Clipper I expect a variety of interesting proposals for the design of SAIL staking, starting with the below. The benefit of a sustainable economic model is that it enables
#realyield
for DAO participants instead of ponzinomics, if that's what
Unless DAOs incorporate, members are subject to unlimited liability! Read more in my newest OpEd - Why DAOs should register as Legal Entities in
@DefiantNews
Why will DAOs have such a massive impact? Why is it a bad idea for DAOs not to incorporate as a legal entity? What are the hurdles that we need to overcome?
All that and more in
@MarkLurie
's latest oped in
@DefiantNews
👀
There is a wave of specialized defi exchanges coming that will replace the current incumbents. Listen to my conversation with
@APompliano
here! Thanks for a great conversation.
If LPs gain tokens but lose money then DeFi is on a path to brain death. IL is a design choice! Rather than compete around phony APY figures, DEXs must reorient around LP returns. It’s simple. LPs gain → DeFi attracts capital → the ecosystem thrives. 🧠
Design around users, not DEX revenues. Most DEXs report inflated APYs boosted by token incentives doled out to LPs. What these top-line figures mask is the impermanent loss (IL) LPs experience leaving their capital in the DEX pool. 💸
People think the Fed is threatened by stablecoins, but nothing could be further from the truth. USD is 99% of onchain stablecoin activity and nowhere near that level in the real economy globally. USD stablecoins actually increase global dollar dominance.
@circle
@jerallaire
Today, we're proud to announce our $21M raise for the first
#DEX
that caters to retail traders.
Excited to be working with our lead investor
@Polychain
and other world-class supporters!
1/
@kethcode
Please consider
@Clipper_DEX
for your ballot! Here is a metrics-oriented overview of its contribution to Optimism: . Let mw know if you have any questions.
#crypto
helps us govern ourselves better. Watch my interview with Presidential Candidate
@VivekGRamaswamy
about crypto and legal frameworks. The next election will be critical for crypto.
Old World Europe believed that citizens couldn’t be trusted to govern themselves and that enlightened elites had to settle the answers to normative questions. We rejected that vision in 1776. We need to dissolve the managerial bureaucracy that pervades the administrative state
🧵1) We have taken a close look at the 'Coincidence of Wants' concept in DeFi swaps. Analyzing 25 random blocks (19063173 - 19063198), we aimed to understand its effectiveness with the current trading volumes. Spoiler alert: it is feasible to save nearly $1.5 million in token
NOW TRADING: $SAIL 🏴☠️
Eligible users can now buy, sell, and trade $SAIL, the native token of
@Clipper_DEX
, directly on CoinList.
Announcement 👉
Trade on CoinList 👉
*Not available in US & CA
@RossjournoClark
How sad would it be to have lived in 1920s Harlem without realizing the Renaissance was around you? Jazz wasn't just a fad for musicians who can't read music, and crypto isn't 'clearly a pyramid scheme' just b/c you aren't aware of the other 'attractions'.
Ok. Time to get smart on
#Stablecoins
. This increasingly critical asset class has climbed to $123B globally. Governments around the world are taking notice. But why do they matter to you? Because stablecoins are becoming an important source for global dollar flows. 👇
Need a comprehensive OFAC list?
@ShipyardSW
provides an open-source developer-friendly Github repo at .
@Clipper_DEX
prevents OFAC-blocked addresses from trading on Clipper to avoid tainting the pool.
READ THIS THREAD OR GO TO JAIL FOR 30 YEARS (sorry not kidding)
Tornado Cash added to US sanctions list - $437m of assets blocked.
What is OFAC, what are sanctions, and what does this mean for DeFi 👇
@nncrypto_1
@Clipper_DEX
@QwQiao
@polychain
If a big pool set lower fees just for small trades, big trades could just take advantage by splitting into many little trades. Clipper doesn't set a cap on trade size; rather its small pool means high slippage for large trades or a similar batch of small ones.
📣 Clipper will open up $3M of LP to its community on Tuesday, October 5 📣
📙 Read all about it below.
🧐 Still have questions? Join our Discord for an AMA this Friday at 11 AM ET / 3 PM UTC.
Are You Falling for The Bot Game?🤖
Uncover the hidden truth behind DEX success metrics and how the Bot Game is skewing the picture. Learn how to measure REAL value and ensure sustainability in the DeFi seas with this insightful blog👇
@SenWarren
catch-all regulations just play into the hands of scammers.
@SBF_FTX
was asking for them! Don't fall for his tricks - rethink the rules from first principles for DeFi. My response with
@VivekGRamaswamy
in the
@WSJopinion
. What say you? …
FTX’s collapse should be a wake-up call.
@SECGov
,
@TheJusticeDept
&
@USTreasury
should use their expansive authority to crack down hard on crypto fraud. Congress must close loopholes & back up these financial cops on the beat with more resources.
My oped:
13/ Q5: KYT, KYT, KYT, especially at the application layer. That will substantially reduce the usefulness of tainted funds in perpetuity. But self-executing code can't really be stopped, so it's probably not worth trying to regulate it; the only result will be embarassment.
Is MiCA's fear of stablecoins a knee-jerk reaction to Facebook's attempted Libra and the dominance of USD-backed coins?
Meanwhile, the US flaunts its confidence in the mighty dollar.
Whose approach will prevail?
My 2 cents in
@DLNewsInfo
's piece.
🔗
@0xThriller
from MIDAO and
@MarkLurie
from Shipyard Software are sharing their perspectives on incorporating a DAO. They’re hitting on the pros, the cons and the weird sh*t no one tells you about 😎
#Day2
at
#ETHDenver
’s
#DAOTown
As a DeFi founder, the
@Ripple
ruling is perhaps the most important crypto regulatory event in years. This paragraph provides all the clarity that token issuers need and have been seeking.
Pretty impressed with Optimism’s approach to retroPGF and governance!
The quality of discourse within Citizen House, the passionate group of builders submitting proposals, and the OP team (special kudos to
@lalalavendr
@JonasSFT
) managing this complex endeavor has been an
Clipper's goal is to bring you the best prices on trades under $10k.
In its first 30 days, Clipper processed more trades under $10k from
@1inch
than any other DEX.
That means Clipper officially has better prices than Uniswap!
Read more here:
This is an example of two biases: (1) snapshot bias - evaluating law enforcement on their capabilities now instead of what they could be if they invested more in enforcement technology, and (2) benchmark bias; crypto must be compared to illicit use of the banking system, not to
An Industry of Terror and Crime: How Terrorists and Criminals Use Crypto Cloaking Devices to Evade Detection
Crypto crime has many faces: Hamas terrorists, Chinese fentanyl distributors, the ayatollahs of Iran and other bad actors. Panicked that terrorists’ embrace of crypto
The law is largely based around honesty and adherence to stated rules. If there isn't a terms of use, then the code is its own terms and any use should be legal - "code is law". If there is a terms of use by the license-holder, then violating those terms should be against the
In less than a month, there have been over 18k trades on Clipper. ⛵📈
Check out this new real-time dashboard, which gives a bird’s eye view of Clipper’s on-chain activity:
@ArbitrumNewsDAO
First we all know clipper have AdmiralDAO!
The AdmiralDAO Fleet :
Clipper_DEX | Longship | galley
, we know that Clipper was one of the first and biggest supporters of the Arbitrum network and added it!
Seeing these, why wasn't Clipper among the top 100 projects receiving ARB?
Blockchain has broken the existing software development paradigms like agile. It's only when old paradigms fail that new ones emerge. The community needs to completely rethink it's approach.
If we treat exploits like failed experiments rather than process problems, we risk meeting Einstein’s definition of insanity - doing the same thing over and over and expecting different results.
In other words, crypto needs a new development paradigm:
I'm glad we're finally talking about real yield. It is high time traders scrutinize the protocol and ask themselves - where exactly is the yield coming from?
I share more with
@Cointelegraph
.
1) 📢 Announcing Alliance DAO 📢
DeFi Alliance and hundreds of other top builders are coming together to form Alliance, the world's first digital startup nation, to accelerate the best Web3 startups.
Wow.
@WSJ
doubles down on slandering crypto despite previously publishing a correction about these debunked numbers. Newsflash: Crypto is a bad way to finance terrorism. The article itself makes it clear - it literally says cash is the primary funding mechanism through hawala
So, now that the startup-verse has all its money back from SVB, how do we feel about the new precedent? Basically, deposits are now 100% FDIC insured in perpetuity. In the event of a bankrun, equity/bondholders get wiped out. Is that model sustainable? I'm legit not sure.
There are no winners here.
There is more than just financial loss in this debacle.
The loss of regulatory trust and DeFi’s credibility as a whole will have lasting effects in the long run.
I share my thoughts with
@gridnews
This is a great podcast explaining why AI is so far from general intelligence that it’s laughable to call it an existential threat. LLMs are optimized for pretending to be intelligent, not actually being intelligent. In other words, it’s a phenomenal bullshitter. Don’t get me
The reason this doesnt make sense is that new capital flows into btc/eth/bluechips first and then the wealth effect on cryptonatives encourages them to rotate into altcoins. And I dont think weve seen the top of btc.
One of my hottest hot takes is that we may have already seen the top for token prices.
It is entirely possible new capital never shows up in the way described here but instead people build into blockchain from outside and the gains are not mostly to token prices.
We have created an OP token distribution plan designed to reward active community members while prioritizing the long-term growth of both
@Clipper_Dex
and
@OptimismFND
.
In-depth breakdown right here👇
⛵Ahoy! Clipper is a DEX built to offer the lowest prices for trades under $10k.
🐞 bug bounty June 22 - July 6
🔜 alpha coming June 29
check us out:
join our discord:
read more:
#intents
is interesting but one you get beyond simple swaps, you run into the Genie problem - making wishes you think you want, but turns out were formed poorly. This seems harder than monopolistic wish fulfillment, but Isn't discussed.
@0xquintus
@gakonst
Stop "experimenting" with ponzis, algostables, yield farming and other unsustainable nonsense.
Start experimenting with public goods funding, governance/DAOs, decentralized identity/reputation, regenerative finance and privacy tools.
This is the gwei.
The weirdest thing about securities law is that the Howey's test is like Schrödinger's cat. Whether an asset is a security can have nothing to do with the issuer, but rather hinge on how uninformed third parties choose to view the asset. That's odd.
🗳️Republican presidential candidate
@VivekGRamaswamy
joins the Chopping Block to discuss:
⚠️ Why he’s so against overregulation of the crypto industry
🧑⚖️ Whether “code is law” is an appropriate framework for crypto regulation
🤑 Why he sees Bitcoin as a check on the Fed
🔊 Full
Policy debate was an important and formative experience for me. It makes me very sad to see it taken over by political posturing. Many young people will miss out on something very positive.
Contrarian take: RWAs aren’t coming on-chain this cycle. People don’t appreciate how expensive crypto capital is. Its chasing 100x’s not a respectable low-yielding real estate yield. Tradfi thinks it can get more demand from crypto buyers, but will just find its not there. Prob
5/5 The fact that tether hasn't gone legit means they lost money, which means on top of dishonesty their team may go down as perhaps the most worst money managers of all time.