DeFiGod Profile picture
17 Oct, 14 tweets, 4 min read
1/ Bancor and Andre Cronje have been completely in lock-step developing various AMM designs/models. No one knows except Bancor, Andre, and myself. I was blessed with autism, the others…well.
2/ Anyway they are so much in sync at this point I don’t think Andre is South African, but actually Jewish. Holy shit CT relax it was just a joke. Bancor created one of the first AMM models that uses single-sided liquidity with Bancor v2. They segregated the pools by assets, made
3/ two separate pool tokens (instead of one), and essentially treated them as distinct entities. Unfortunately v2 did not work out well and it has to do with the oracles being too slow updating prices in the pool, arbitragers are still able to extract value and rekt LPs before
4/ the oracle can update the prices. DODO is experiencing this same exact thing. Don’t fall for the VCs shilling their bags as the best thing around. As always, I call it how it is. Andre borrowed and built off this concept in his ySwap protoype.
5/ The difference is he introduced a new token aUSD that was minted during deposit. This token was used as a conduit transferring value between other pools in the system. For example, everytime aLINK is deposited by a LP an equal amount of aUSD (determined by the dollar amount)
6/ was also minted. Similar actions would occur in a aLEND pool. When someone wanted to trade aLINK for aLEND, the value transfer between pools would occur via the aUSD token. There was some design flaws with ySwap and I might be the only person who used it besides Andre.
7/ I got totally rekt, or should I say “rugged”. But like @pythianism I too invest in production. Sometimes you farm and sometimes you get farmed. This was taken a step further with the StableCredit prototype: when a user deposits collateral, StableCredit USD is minted for the
8/ $ amount of the collateral. That user can then buy other assets in the pool based on utilization ratios similar to how Compound works.
9/ This post has nothing to do with the thread. It is merely an Asian girl holding chainlink cubes. Imagine the smell.
10/ Bancor took all these updates in from Andre and revamped their model in their v2.1 launch. Now when someone deposits a token to be a LP, they too mint the other side. But it is in the form of BNT, and like ySwap and StableCredit, BNT is the conduit token used to transfer
11/ value between the pools. Bancor has taken it a step further with v2.1, now they are claiming the solved IL by adding insurance to the mix. Older LPs will be compensated for any IL (100 days in the pool). This comes from trading fees from the pool set aside for older LPs,
12/ and also BNT minted that will cover any residual IL. I won’t comment on the specifics of v2.1 right now, but that is the crux of how insurance is involved. Now since Andre is indeed Israeli, he posted this yesterday on Githhub.

github.com/iearn-finance/…
13/ It appears he too is now working towards an insurance component to eliminate or mitigate IL. It is fascinating to see how this is playing out in real-time. This all leads to why open-source development is a net positive for the crypto space.
14/ We are seeing different development teams building off each other to make an overall better end product. Constant reiteration and building on top of each other will lead to innovation. So what did we learn from all this? Well Andre is Mossad, and IL is a meme.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with DeFiGod

DeFiGod Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @DeFiGod1

14 Oct
1/ I’m going to talk about @chainlink because people still don’t get it, and I finally have time to smoke a blunt with you to explain it. The thesis on chainlink can be summarized into: decentralized smart contracts ($ETH) are useless without a decentralized oracle network Image
2/ ($LINK), accurately and trustlessly feeding data into those contracts. If you have a centralized oracle it is a central point of failure nearly eliminating any benefit a decentralized smart contract network provides. You are better off using a centralized database.
3/ The value of the oracle network represents an insurance on the base layer protocol, and the value of this network could very well equal or exceed the value of the base layer. This is due to the insane amount of value the oracle network will be securing. DeFi is really only the Image
Read 24 tweets
11 Oct
1/ Q4 is going to be all about macro bluechips. Always has been. March crisis and resulting irresponsible fiscal policy money printing set the stage for the most bullish scenario for Bitcoin, and as a derivative all crypto. This is literally the purpose of Bitcoin. Image
2/ Paul Tudor Jones publicly expressed support and allocation for , very bullish news. Numerous large companies and prominent tech investors have publicly announced investments. BitMex is in existential crises (very good news).
3/ Price already bounced off the lows and is trending back up. The stage has been set for crypto. Bitcoin with the macro-economic environment is inevitably going to pump, with a fundamental upgrade 5 years in the making will finally launch in Q1/Q4.
Read 5 tweets
4 Oct
1/ By the way the show goes on. The developers will continue building, I've been in translucent contact with the elusive Andre he is doing what I occasionally do: disappear to fuck god-tier Telemundas. Fuck the haters. He will return.
2/ We are going to add more vaults, starting with UNI. More revenue, more fees, more automation, more yield for end-users.

Tokyo is officially cancelled. We are now getting a fucking Yacht. If you didn't get your invitation yet, well sorry fuck off we're full.
Read 4 tweets
30 Sep
1/ Never a dull day in DeFi. just so everyone is clear was never a released Yearn product, it was a set of preliminary contracts deployed and under testing. The Yearn: Deployer tag on etherscan was never authorized by Andre. Etherscan put it there themselves. I don’t believe
2/ he envisioned that $15m in DAI would be sent to this contract before he went to sleep. But I trust Andre’s integrity and his long term vision. Another thing to bring up is that you could only buy by calling functions on the smart contract. Anyone who bought it was a
3/ sophisticated DeFi user this was not Grandma Sue degening her pension. If you didn’t understand the risks, that’s on you, maybe a CD at Charles Schwab is better suited. People should take ownership over their actions.
Read 11 tweets
26 Sep
1/ If you have a $50k portfolio and your goal is to “make it” to $2-5m. You can’t go 2-5k into 25-10 projects. You need to make concentrated bets and unfortunately will have to flip 2-3 of those winners into something that wins again.
2/ Sounds hard? That’s because it is, if it was easy everyone would be a millionaire. The smaller the portfolio the more concentrated. Just make sure you’re right.
3/ If you have a total fuck you fund you can throw 100-500k at 20 projects (with less conviction) and see what sticks. But largely diversification is a meme especially in crypto. Concentrated, high conviction picks.
Read 4 tweets
26 Sep
1/ $NXM currently has a MCR mechanism that increases daily and ultimately impacts current price. This is merely a short-term bootstrapping tactic to increase the capital pool. Long-term they will be shifting towards a more sustainable formula using a Gearing Factor, where cover
2/ demand will dictate the capital pool size. But more interestingly, they will roll out shield mining very soon (< 4 weeks in my estimate). $SAFE showed the insane demand for staking $NXM yield, which unfortunately tied up a ton of NXM. Stakers will be able to provide cover,
3/ while earning the underlying tokens as compensation (i.e., provide coverage for an AAVE contract and earn $LEND). Combine this with 5-10 partnerships giving $NXM stakers additional yield, and it should reduce overall insurance cost to end users.
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!