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17 May, 4 tweets, 2 min read
#Flashbot: What are the Vulnerabilities?

Arbitrage bots front-running the transactions.

What? I tell the Ethereum network that I want to make a transaction. i.e. buying 100 ETH on #Uniswap. This action will take some time to confirm.

#smartcontracts #ethereumblockchain
During this period, it goes into this pool called Mempool. There, everyone can see that "hey, Lisa is going to buy 100 ETH. It is not executed yet."
The risk? Because this is public, bots can come in to pre-trade. They are called flashbots. The basically front-run your trade. They execute the trade before you.
How? By paying more fees to prioritise their transactions before yours.

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More from @EconsDesign

Economics Design Profile picture
18 May
How does #NFT work?

First of all, we need to understand that NFT is essential items that can be collected. Like a painting, rather than a typical token which has lots of incentives associated with it to increase buyer demand.

#NFTCommunity #NFTartist #blockchain #Crypto
Therefore, valuing NFT is like valuing a real-life precious item; whoever feels it has a price, will pay that price.
Example: There are a lot of abstract paintings that are worth a few thousand dollars. Very few people understand what they mean, for example, but people still buy them.
Read 6 tweets
Economics Design Profile picture
18 May
You've heard of no-loss lottery. Now, get ready for no-loss stable coins! This week, we discussed $ALCX, @AlchemixFi, ft interview with @scupytrooples!

#stablecoin $alUSD $ALCX
How does #Alchemix work?

Deposit DAI into the system to borrow alUSD
Borrow up to 50% of the DAI collateral
Deposited DAI is used to generate yield
The yield is used to pay off the 50% alUSD borrowed
Why is it a no-loss stable coin?

Both assets are correlated
You can always trade alUSD for DAI
And they move in the same direction
Read 7 tweets
Economics Design Profile picture
22 Feb
How @HegicOptions works

In general think of it as something similar to Uniswap. In Uniswap your pool will be something like let's say ETH and USDC for example.

#HEGIC #Options #DeFi #Crypto #blockchain #economics
In HEGIC you just have one asset let's say ETH. You add liquidity into the pool and what we want to do is to get all these little smaller guys with some capital put them all together.
With Uniswap people can trade and exchange so if I have ETH and I want to change it for USDC or if I’ve USDC and want to change it to ETH.
Read 7 tweets
Economics Design Profile picture
23 Aug 20
A long episode this week on What is @AmpleforthOrg and the Economics* Design of .

*because it's the analysis of the entire economics, not just the token design mechanism 👇🏼
The first episode of S2. Season 1 was all the fundamentals of token economics and economics design. Now is where the serious and fun things begin.

Grab your headlights. We're going deep.
Covering

- AMPL vs / (Which @BanklessHQ 100% got it wrong)
- AMPL vs USD
- What is Synthetic commodity money
- Economics utility vs financial utility
- Monetary policy
- Graph analysis
- Valuation model
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Read 9 tweets

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