Thread by @KyleSamani

0/ We recently led a round in @StripsFinance

Been thinking a lot about the evolution of DeFi derivatives markets, and we think the time is now for interest rates (IR) derivatives

Specifically: perpetual contracts!

multicoin.capital/2021/10/06/exp…

1/ Back in July, @_Dave__White_ asked the question

"What is the most mathematically elegant financial product you know?"

And I responded:

https://twitter.com/KyleSamani/status/1413451658135105541?s=20

2/ In that time, Dave has invented a handful of perpetual swap contracts for new kinds of instruments

3/ Moreover, we have been investing aggressively in DeFi teams that are focusing on perps, including Perpetual Protocol, Mango, and at least one other that's not yet disclosed

4/ The perpetual swap is the 1st-order correct construction for trading synthetic assets, and we are super bullish on the construction

5/ So when the Strips team approached us and said they wanted to build IR derivatives using perps, we were immediately intrigued

6/ With ~$20B in outstanding loans on Ethereum loan that are paying interest, the market is ready for a capital efficient, flexible, simple tool for hedging IR risk

7/ We are excited to back the Strips team in their quest to build out the future of IR derivs, starting on Ethereum

{fin}