SBF Profile picture
8 Mar, 16 tweets, 4 min read
1) A while ago I wrote a post on Sushiswap:

2) In the end, it wasn't inevitable.

If Nomi hadn't fucked up, maybe SUSHI would be at $100.

If the team hadn't built, maybe it would be at $1.

But it had a shot, because much of what we thought was sacred was in fact chasing yield.
3) There are people whose beliefs in a product or a chain will always dominate other factors.

But most of the people you see using something aren't trying to express their faith. Most people are still searching, and using whatever seems best for them at the time.
4) Six months later, a new chef came to town.
5) It was dismissed, and derided.

And then @cz_binance released one of crypto's largest userbases on it, 100 times as large as all of DeFi put together.

And showed what always true, but not made explicit:

that for most users, chains were no more sacred than products.
6) There have been wars over BSC, and whether it's good or bad.

I think that misses the point.

I'm not @cz_binance and I don't build on BSC. So I can't be sure what they were trying to do.
7) But BSC made a number of choices that seem pretty intentional to me.

They didn't build a totally new chain; they basically forked ETH.

They didn't collect tons of independent validators.

They didn't build a new wallet: they made BSC work on Metamask.
8) I would be pretty sad if BSC became the future of blockchain technology.

But again I don't think it's really trying to.

It didn't build a totally new product, and it didn't build a product for decentralized scaling.

It built a product which was cheap and easy to migrate to.
9) There are a ton of things which would be awesome to see built on a long-term viable, massively scaling, decentralized blockchain.

Governance, and core financial instruments, and social media, and much more.
10) And then there are yield farms.

No matter what we say about them, they never really needed to be decentralized, at least if the whole point is the yield.

You can drop yield anywhere. And no one who's using @PancakeSwap is there for the governance.
11) And what @binance built was the perfect platform for pure yield to migrate to.

A chain that's cheap and easy to use and easy to migrate to, both for projects and traders.

And seeded with millions of users.
12) It would be easy to be angry at BSC, for taking yield from more decentralized chains.

But I'm not. Because BSC isn't stealing governance, and it's not stealing the pillars of a decentralized future.

It's stealing yield.

It's making DeFi compete for its yield.
13) And, really, if we want DeFi to get huge, we can't pretend that yield is the same thing as well-built decentralized primitives.

We have to build great products which can outcompete the alternatives.
14) BSC has been hugely successful for @binance. And BSC proved a point.

It's a point the ecosystem needed to learn.

@cz_binance adapted. He does that quite well.

DeFi needs to adapt, too, to grow.
15) Because for DeFi to win, it can't be decentralized OR fast OR cheap OR sophisticated OR innovative OR well built OR have a large userbase.

It needs to be all of those.
16) [something something Serum something something]

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More from @SBF_Alameda

6 Mar
1) I'd like to take the opportunity to talk about something more important than my usual shitposts:

the people who have made FTX what it is today.

some names have been altered to preserve anonymity

some facts have been altered to improve the heartiness of the laughs and the deepness of the sighs readers feel.
3) First, Sir Buys-A-Lot.

S B-A-L heard about the FTT presale and was one of the first to buy.

Something really struck me about that: they didn't seem hesitant, they didn't demand concessions, they didn't demand attention. They were excited.
Read 19 tweets
4 Mar
1) I think there's a lot of arbitrariness here:

2) a) Say that you make $5b and have $5b of one-off expenses.

Earnings: $0.

b) Now say your mkt cap goes up from $1b to $50b.

Earnings: $0.

c) Now say you issue $10b of equity at a $50b valuation.

Earnings: $0.
3) d) Say you also issue a token and own all the tokens.

Earnings: $0.

e) Now that token increases from $1b to $50b mkt cap.

Earnings: $0, but $49b of unrealized gain.

f) Now say you sold $10b of the token @ $50b val.

Earnings: $10b!
Read 11 tweets
3 Mar
1) How I learned to stop worrying and love rate limits
3) There are two mistakes everyone makes when they write their first trading bot.

The first is not the subject here, but I'll mention it in passing because it's everywhere and wild and hugely impactful:

The Golden Ratio.
Read 16 tweets
25 Feb
1) Interesting notes from the Coinbase S1:…
2) $1b of expenses. How do you spend $1b? Apparently split between:

--transaction expenses ($135m)
--"Technology" ($270m)
--ads ($50m)
--G&A (prob payroll) ($280m)
--other ($125m)
3) Revenue is 95% *retail* trading fees.

Why retail?

Because they charge ~1-10%!!!

Read 5 tweets
22 Feb
1) What is @RaydiumProtocol?

What makes it a step forward for DeFi?
2) Well, it's an AMM, built on Solana.

So, sure, you can swap assets in a second with $0.00002 gas fees.

And the blockchain can handle billions of trades per day.
3) But it is more than that.

Wee, you can use to add liquidity to the AMM, and you can use to trade.

But you can also use… to trade.

That's an orderbook!
Read 9 tweets
20 Feb
1) One note on valuations:

Lots of projects have "yield" or "inflation" or something like that.

Does that mean that you'll lose to holding them?
2) It depends!

Well, really, it depends on the market.

Sometimes everything goes up. Sometimes everything goes down.
3) But another important point:

Let's say there's 10%/year inflation.

Do those new tokens go to:

a) the old token holders
b) some other group
Read 7 tweets

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