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0) Anatomy of the $MKR market impact of a large CDP closure

CDP #18917, formerly a top 15 CDP, decided to wipe it's 1.2M SAI debt yesterday
1) For the wipe, he paid over 100 MKR in fees.

He didn't pay via MKR directly, but rather through SAI, which buys MKR on behalf of the CDP owner through Oasis DEX.
2) For wipes of this size, this is not a very efficient way to liquidate given Oasis doesn't have a huge amount of liquidity and has large spreads.

The buyer on some orders paid ~756 SAI / MKR, when MKR was trading around $500 at the time... ouch

etherscan.io/tx/0xe9a0a6c6c…
3) This buying pressure rippled out to Uniswap as well as centralized exchanges.

The black arrow denotes when the wipe occured. You can see that for the next few hours, market makers slowly bid the price from 3.3 ETH/MKR to 3.6 ETH/MKR where it sustained.

That's a 9% increase.
4) Right now CDP closures are bottlenecked by SAI supply which is frequently trading above the $1 peg.
5) There is a potential for an uptick in CDP closures on and immediately after December 2nd as @sendwyre and @CoinbasePro transition user balances from Sai to Dai and therefore increase the available Sai on the market (or close their own CDPs)
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Andrew Kang
@Rewkang
@NTmoney posted a short case for $BNB. I agree that everyone should be careful shorting crypto right now, but especially careful shorting $BNB.

Here's the tweet by tweet rebuttal:
Regulatory arbitrage has been their advantage and will continue to be their advantage for as long as countries have regulations barriers for crypto exchanges

It's commonly stated that DEX's failed to take off because of poor UI/UX, but friction heavy UX is an inherent result of DEX's self-custody feature. CEXs will always have the huge advantage of not requiring hardware wallet/Metamask to trade.

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Andrew Kang
@Rewkang
0) To understand MKR value accrual, you need to understand its economic underpinnings.

I just published Maker (MKR) Valuation Fundamentals - The case for Trillion Dollar Maker

I will summarize in this thread 👇

medium.com/@Rewkang/maker…
1) An undoubtedly top project in the space. Maker has achieved actual product market fit in a sea of userless projects. Yet we still seem to lack an understanding of how value accrual actually works in the MakerDAO system - and what MKR stands to be worth in the long run.
2) As humans, we tend to find analogs when trying to understand new concepts. While equities/stocks are a commonly referenced analog, MKR best fits the characteristics of a commodity - it is used as a resource - both to pay fees and to recapitalize CDP liquidations
Read 29 tweets
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Andrew Kang
@Rewkang
0/ There has been a lot of controversy and confusion around $BNB (Binance Coin) recently. This isn't unwarranted considering it doesn't look like traditional tokens/financial instruments. In this thread, I will attempt to elucidate 👇
1/ The main source of confusion stems from the fact that when encountering something new, humans like to find analogs. For BNB, it's commonly a dividend stock. Unfortunately, any analog from the non-crypto world would be a poor point of comparison. @nic__carter summarizes:
2) People equate $BNB to a dividend stock because cash flows play a market role for both assets: a portion of Binance's profits are used to burn a proportional amount of $BNB every quarter. This also sounds similar to a stock buyback where stock supply is similarly reduced.
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1/ Ergodicity seems like one of the most important investing (and life) concepts that few people understand.

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Ritvik Carvalho 📉
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Mike Pence’s brother, Ed Pence, is (was) an executive at Cummins Inc., a company that manufactures engines for the Russian military and has also used lobbying firms connected with Paul Manafort 1/
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Julius Goat (Read Pinned Tweet!)
@JuliusGoat
Your Space Force ID No is your total amount of student debt + the amount of money you paid into social security that was taken to pay for Space Force*.

*private contractors who are friends of high-ranking Republicans, who will have no oversight for their $100b contracts
Like, there can't be a Space Force. We all realize that, right? A military branch in space. In space. Military branch. Space. What why how and also What.

They may as well have said it was for the Narnia Marines.

Any funding for "Space Force" is a cash grab.
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You can't stay a dimension unless you secure your portals.

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