SBF Profile picture
20 Mar, 12 tweets, 2 min read
1) The CFTC fines Coinbase $6.5m.

This might be bullish for Coinbase.…
3) On its surface, this looks, well...

I mean idk how bad it is, but it's not _good_.

"Coinbase recklessly delivered false, misleading, or inaccurate reports concerning transactions in digital assets, including Bitcoin, on the GDAX electronic trading platform it operated."
4) But sometimes...

idk, something about an onion.
5) First, the actual accusations aren't that bad.

a) they had two bots which traded against each other, but "Hedger and Replicator had independent purposes"

b) "The GDAX Trading Rules specifically disclosed that Coinbase was trading on GDAX"

c) The actual manipulative behavior came from an ex employee, not the company, and given the lack of cited magnitudes, I'm guessing it wasn't that big.
7) But beyond that, this isn't the type of notice the CFTC publishes if they're gearing up for war.

This is what they publish when things are settled. Not just this charge, but probably most charges.
8) I don't have any background information here!

But this seems most consistent with, roughly, "Coinbase had to do 200 things to go public. One was settling all disputes with US regulators. They just checked that one off."
9) In addition, there's no disclosure here about what "hedger" or "replicator" are, which I'm guessing Coinbase is happy about.

My guesses?

Hedger: retail buys 1 BTC on the Coinbase mobile app (paying 5%!). Coinbase internalizes, then "hedger" slowly buys back on the Coinbase orderbook.
11) Replicator: retail buys 1 BTC on the Coinbase mobile app (paying 5!). "Replicator" buys 1 BTC immediately on the Coinbase orderbook.

Hedger would trade with Replicator if retail had been net buying but then someone sold, and one of the two (hedger, probably) was providing.
12) Anyway, TL;DR: think about what Coinbase would be valued at if it had someone like @elonmusk as its public face!

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More from @SBF_Alameda

18 Mar
1) A few notes about referrals:

For a while there's been something annoying about FTX referral accounting.

All of the ref fees are paid out, but it often takes a day to do so.

That means that they will sometimes show up in the next day's bucket.
2) Going forward, this should be cleaner; each day's referral fees should correspond exactly to trades that happened on that (previous) day.

This should make it easier to track what's going on.

We're also considering changing the interaction of FTT with fee tier 6.
3) Fee tier is is capped at 3bps taker post-referral; this means if someone was fee tier 6, and had $5k of FTT making their actual fees ~3.5bps, then they would only give ~0.5bps of ref fees.

We're considering changing this to be a 3bp min pre-FTT.
Read 5 tweets
16 Mar
1) What is Oxygen?
2) I guess I should start by saying what it's not.

@Oxygen_protocol isn't an attempt to make a simple, clean margin trading interface as soon as possible. (@mangomarkets sorta is!)

Oxygen is going down a different route:

what is the most powerful borrow/lending product?
3) And what do we have to do to get there?

It's an approach that mirror's @FTX_Official's launch in some ways.

And perhaps some parts of the design will seem familiar.
Read 14 tweets
16 Mar
1) A graph of latency on FTX over time:
2) As the exchange has grown, latency has too.

Which sucks. Latency is higher than it was 6 months ago.

So, a few weeks ago, we started working on reducing it.
3) We've successfully gotten it down by around 30% from where it was, though still slightly higher than in the summer.

There's more work to go.

We could probably get a factor of ~1.5 improvement over the next month.
Read 4 tweets
15 Mar
1) listening to….

Some thoughts:
2) It paints a really compelling picture for primaries mattering, in terms of campaigns/funding/dynamics.

And that things can be random and contingent.
3) around 20 mins in, they talk about people miss-predicting the primary.

I think what they forgot: 2020 wasn't a random election. It was the election of Trump and COVID.
Read 16 tweets
8 Mar
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.
Read 16 tweets
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

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