Discover and read the best of Twitter Threads about #defi

Most recents (24)

1/ As someone trading small positions in ETH, BTC derivatives, I've been fascinated by @SetProtocol + @tokensets.

Today, I finally went into beast mode to fully understand this #DeFi magic!

I am convinced most do not understand Set. So here's my dumb explanation in a thread.
2/ Despite all the brilliant peeps building on #Ethereum, most never do more than HODL ETH. While many dollar-cost-average into ETH, they fail to put their ETH to work.

The most obvious example of "money put to work" is using
@compoundfinance to earn interest, lending ETH, DAI
3/ Now, if you've never traded, all you need to know is less than 1% of FT traders are profitable. If you trust that common stat, you only need to know that many successful traders use bots.

Something like 70-80% of daily trade volume in crypto markets is estimated to be bots.
Read 21 tweets
So happy to announce that @CheezeDAO won the @CHZWZRDS Hackathon ! We are so grateful for the experience. So, let me introduce you to @CheezeDAO, the first skill based DAO. It's a thread! 🧐
@CheezeDAO is the political mod of @CHZWZRDS. It allows players to create teams (#DAO) and govern them based on their skills within the game. Each teams initially decides to worship one of the Grates (Water, Fire, Wind, Neutral, Mold) and stream their accumulated power to it.
Within teams Wizards will be able to take over and convert the beliefs of a DAO. It’s a battle royal for Grate domination.
Read 10 tweets
1/ #DeFi is less about building trustless financial products than it is about building financial products whose trustworthiness can be productized & delivered by software.

A good analogue for this is the FDIC vs. SSL:
2/ The little FDIC logo on a bank's website is a critical trust-builder for American consumers — how else can I know my money won't disappear if I put it in the bank?
3/ But a bank's right to slap the FDIC logo on their website is governed by *tremendous* amounts of regulatory infrastructure in the US.

Phrased differently, the FDIC logo is a human-powered trust-building signal.

Contrast this with SSL:
Read 11 tweets
I’ve had the privilege of taking a close look at @BalancerLabs and I couldn’t be more excited.

A thread w/ thoughts on:
* custom self-balancing portfolios
* free market for trading fees
* long-term incentives
* negative spreads
* price oracle
* finance building block

👇 👇
1/ ⚖️ Custom self-balancing portfolios

With a new approach to automated market makers, Balancer allows for any custom portfolio of tokens to become a pool that can be traded against.
*Private pools* are great for index funds. Only their owners may provide liquidity and update their parameters (portfolio distribution and fees).

*Shared pools* have their parameters set and fixed upon creation, and are open for anyone to provide liquidity.
Read 19 tweets
1/10. $ETH price is surging today, crossing $200 for the first time since 8/20. Let's have a look at the fundamental indicators and on-chain metrics driving this move.

2/10. Starting with the most bullish indicator. As @coinmetrics notes in their newsletter today, ETH is overtaking BTC in daily transaction fees. This suggests there is a strong demand for using Ethereum.
3/10. Daily total gas usage is at ATHs. This means users are doing increasingly complex operations on the network.

Read 12 tweets
“With @UMAprotocol’s Token Builder, you can create tokens that track the price of anything (the S&P 500, the # of Twitter/IG followers someone has, the # of upvotes your meme has…). All you have to do is choose the price feed and deposit $DAI.”
UMA continues to add important oracle and tokenization ingredients to #DeFi 💪
Separately, for those concerned about $DAI’s peg due to excess supply, @UMAprotocol’s synthetic token builder could be a key $DAI sink for @MakerDAO’s system.

It’s a potentially bottomless one if it’s profitable for token builders & the service is utile/low-cost for users.
Read 3 tweets
[THREAD] This past weekend I was lucky enough to have been a judge at @ETHBoston. As an investor in the space, here are some of my top takeaways, trends to watch, and favorite projects from the hackathon.
2/First, some context. Like other @ETHGlobal events, ETHBoston was well-attended, with over 400 hackers in attendance. Participants had a wide range of #Ethereum experience and traveled from all over the world to attend the event (stats below).
3/At the end of the weekend, 55 projects were submitted to judges. Of those, 6 projects were selected as finalists and they presented to the entire hackathon audience.

You can view all of the hackathon projects here on @devpost:

Read 13 tweets
Whoa @ETHBoston, what a weekend! So many amazing teams built killer #DeFi projects using UMA synthetics.

Want to hedge DAI breaking the peg? 🦢SwanDAI did that with a token.

Want to hedge your @compoundfinance rate risk? SUMA did that with a token.

More dets + highlights:
The 🦢SwanDAI team won our $3k DAI bounty for most creative use of an UMA synthetic token. The project combined financial engineering + data science to create a token that pays off if DAI breaks its peg, providing DAI uses a useful form of insurance.…
Do you want to "lock in" your 9.7% DAI supply rate on your @compoundfinance loans? SUMA created an innovative token to lock in current rates **effectively creating an interest rate hedging tool** for DAI. You can now "bet" on Compound rates.
Read 8 tweets
1) Introducing SwanDAI - buy or hedge exposure to #DeFi black swans via synthetic assets!

Speculators and stablecoin naysayers can now put their money where their mouth is.

A thread on how we built it @ETHBoston:
2) SwanDAI is a synthetic asset built using the @UMAprotocol Token Builder.

It tracks the deviation of the $DAI price from its dollar peg.

The payout increases exponentially as the deviation increases.
3) Using historical $DAI / $USDC volatility, we simulated the distribution of expected returns on SwanDAI.

SwanDAI returns follow an exponentially decaying distribution, with occasional large payouts.
Read 8 tweets
Find out the latest from the Bank of England on how Central Bank Synthetic Hegemonic Currencies (SHC) complement the legacy financial system and support monetary policy through a #NetworkofCentralBankDigitalCurrencies #DLT #Blockchain…
What I said in Zug. @bankofengland states, that central bank currencies should be run by central banks to complement the existing system, providing stability, efficiency and managing risk. The beginnings of rearchitecting the entire financial system!
According to @BIS_org, this is how central bank currencies fit into the financial system.…
Read 4 tweets
Is it just me or most of the submissions at #zwei was around #DeFi?

Most interesting(in no particular order) projects thread 👇
First DEX ETH to GRAM and back…
DAI Insured
Incentivized bots prevent CDP liquidation – no trust required…
Read 13 tweets
1/I think we will find in retrospect that decentralized lending protocols and their lending rates are of universal importance not just to #DeFi, but to the entire ecosystem.

I wrote a little bit about that here:…

I write about another interesting case...
2/#Layer2 is coming and in these networks we must capitalize state channel hubs in order to create throughput. This creates a substantial hurdle for running hubs & caps commissions.
3/Instead of locking capital, hub operators might leverage lending protocols to borrow it & increase throughput. However, the borrowing rate will inform the commission hubs will charge (and vice versa).
Read 8 tweets
The question for the #ethereum community is, how do we do #defi without creating another ICO boom and bust like #YOLO situation... IMO the main cause of current eth/btc price being out of whack with the immense technical progress in and around eth over the last two years.
#bitcoin is overpriced because there's been very little technological progress. But finance isn't just about technology. It's also about trust. #bitcoin is overpriced vs better tech including #ethereum BECAUSE nothing changes, same as the UK and US high street banks.
Finance isn't the best space to move fast and break things. Alright it isn't health care or space flights and #innovation is never risk free but its important for the community to call out things that don't make sense…?
Read 31 tweets
1/ Today @UMAprotocol is publishing our design for a Data Verification Mechanism (DVM), a blockchain oracle with **economic guarantees** around the cost of corrupting the system.

We're ALSO releasing our v1 code + deploying it to Kovan!

Read on for why this is needed...
2/ Code is here:…
White paper is here:…
Kovan deployment is here:…
3/ Here’s our bold claim: **every** blockchain oracle is corruptible, which means any smart contract relying on off-chain data is corruptible and manipulatable **for some price**. This means that your DeFi smart contract could be at risk.
Read 12 tweets

Let's put a myth to bed.

Thread on the history of sidechains, their security properites, concluded by their differences to Layer 2 solutions.

(there’s a lot of resources, feel free to skip/bookmark for later!)

-- History of Sidechains --
“Sidechains” is a term coined in [1] by @Blockstream, as a way to access innovative blockchain features which are too risky to try on Bitcoin.

This is done by enabling the transfer of BTC between chains w/ varying feature sets

Read 35 tweets
1/Last week's №1news was not the >10kBTC breakout or #Facebook's #Libra announcement, but release of the #FATF(Financial Action Task Force) Guidance on Virtual Assets(VAs) and Virtual Asset Service Providers(VASPs, anyone professionally dealing with crypto, inc. natural persons)
2/Libra and FATF news represent the "old", centralised world's most powerful-yet attempts at fencing the global crypto phenomenon. One year US Presidency in FATF ending Jun30, effectively helped extend the recent FinCen crypto guidance ( globally
3/And market clearly isn't yet pricing in any of the potential outcomes entailed in this development.We suggest monitoring it in the context of state-by-state implementations, which will end up harmonised - i.e. similar. Here's what we wrote to our Research subscribers in March
Read 19 tweets
0/ #DeFi Spotlight #5

Today, I’ll be explaining how @SetProtocol works.

With Set, crypto-assets can be bundled together which allows for the creation of a wide range of different baskets that can be automatically re-balanced using different strategies.

1/ Set Protocols interface, TokenSets, allows users to buy and sell Sets. Currently, Set offers 4 ‘Range Bound Sets’ and 2 ‘Buy and Hold Sets’.

These Sets automatically re-balance between assets once certain criteria has been met.
2/ For example, users can purchase the ‘ETH Range Bound High Volatility Set’ and it will automatically sell DAI for ETH if the price of ETH dips more than 50% and sell ETH for DAI if the price of ETH rebounds more than 40% (with a medium to long term time horizon).
Read 7 tweets
Here is news of a milestone in the project to integrate @LivepeerOrg with @AragonProject.

An Aragon DAO on #Ethereum mainnet delegated Livepeer Tokens to a Transcoder in Livepeer's network.

This will provide the DAO with a share of income to the network.

How it worked:

- A vote was proposed, for an @AragonProject DAO to "Approve and Bond" $LPT to a @LivepeerOrg Transcoder

- The DAO voted "Yes"

- $LPT were automatically delegated to the Transcoder

Go to to view the DAO in action.

The Livepeer App is also capable of governing the operations of a Transcoder in @LivepeerOrg's network, allowing the configuration of the Reward Cut, Fee Share, Price Per Segment and ServiceURI.

This feature will be activated on this DAO at a later date.

Read 9 tweets
1/ Sharing slides from this morning's #Fluidity2019 talk, which for me represented the start of Blockchain Week(s) in NYC.
2/ The market is our best tool for quantifying and distilling expectation about #crypto's future.
3/ Given expectation is inherently about the *future,* it is bound to be driven by human emotion about the unknown.

(overly optimistic in bull markets, overly pessimistic in bear markets)
Read 20 tweets
1/17. The price of ETH is +8% in the past 7 days. Are we in for a bigger move?

Let's have a look at the fundamentals. Thread:
2/17. Starting with on-chain data. After almost a year of straight decline, the number of new addresses being created on Ethereum each day has been growing for 3 straight months.
3/17. Ethereum continues to be the only public blockchain besides Bitcoin that has a meaningful market for security paid in fees. Per @onchainfx, ETH fees have totaled $53,666 in the past 24 hours, more than 48x the next closest coin (Litecoin, $1101 in fees).
Read 17 tweets
1/ Today, we are thrilled to announce that TokenSets is live after the last few weeks in beta. 🚀

For the first time, anyone in the world can acquire a single token to automate trading strategies for crypto.

Set it and Forget it. #SeFi with #DeFi 🛌…
2/ With launch, we are a major step closer in our mission to democratize wealth creation tools. Put your crypto to work on without the need to create a bank, brokerage or exchange account. No management fees, no minimums, and no counterparty risk
3/ Getting started is just a few clicks. In addition to @metamask_io, we support a novel SMS / PIN login via @fortmatic, and all mobile wallets including @CoinbaseWallet @imTokenOfficial @TrustWalletApp to make Sets accessible from anywhere.
Read 5 tweets
Long Reads Sunday #43.

Welcome to the epically exhausted Easter Bunny edition of LRS, brought to you from a Red Eye en route back to JFK.

May this 40,000 foot view of the world bring some insight (or at least some extra snark). Let’s dive in, shall we? 👇
2/ We have to start the week with #delistBSV. As we shared last week, BSV’s backers have started to get extra litigious, arising the ire of the community, warnings, and subsequent call to delist from exchanges.
3/ Subsequently, @binance @krakenfx and @ShapeShift_io delisted BSV.

It is an interesting moment - I’ve seen some argue that it demonstrates an industry immaturity that will turn off investors, while others see it as the community defending its values.…
Read 31 tweets
Stablecoins have become an increasingly important part of the crypto ecosystems. We could not find a reliable source to truly analyze their on-chain activity, so we decided to build it. 👷‍♀️ 👇 THREAD
We created a simple snapshot that looks at the key statistics for stablecoins over the current 24-hour window. (USDT is ERC20 only, not OMNI).
Not only that you can also see a snapshot of the on-chain volume and transaction counts to compare across token. Of course, all data that is displayed is available for download 😉
Read 8 tweets
Long Reads Sunday #42.

Who woulda thunk it? After all the tension, infighting, and tribal bickering, the thing that gets us to set aside differences & unite against a common foe is a threat to dox a spacecat.

Saddle TF up, it’s Long Reads time! 👇

Image: @CryptoScamHub
2/ Here’s the TL;DR. Craig Wright, who is absolutely and most definitely Satoshi, upped the stakes on his campaign against those who claimed otherwise by offering a $5000 bounty to reveal the identity of @hodlonaut (aka the person who kicked off the #LNtrustchain)
3/ It was a step too far.

Pomposity, outlandish claims, and outright scams are par for the course in crypto. But an outright attempt to dox someone is a straight up “fuck you” to everything anyone legitimately in this space believes in.
Read 37 tweets

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