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@TheTIEIO

Jul 21

1/ Due to concerns about the overall liquidity of the company, Tesla reveals that the company has sold 75% of its Bitcoin, adding $936 million in cash to its balance sheet.

Potentially bullish information? Let's discuss

2/ First, let's talk about liquidity in markets. Liquidity refers to the degree to which an asset can be quickly exchanged at a price near intrinsic value. For every buyer, there must be a seller.

What happens if there isn't enough on one side to fill an order? Slippage.

3/ Over the past few months we've seen
- Tesla sell 75% of its BTC holdings ($936m)
- Celsius - $4b loss
- Numerous hedgefunds and other market participants at enormous losses (i.e, 3ac)

It's important to note that there's a difference between 'selling' and 'sold'.

Read 6 tweets

The TIE

@TheTIEIO

Jul 21

This week has given us an explosion of development on the ZK-rollup front, but what kind of improvements do zero-knowledge rollups really offer, and what exactly is the difference between a SNARK, STARK, and a zkEVM?

Here's a comparative analysis on the different means of scalability. Dark green represents favorable outcomes, while dark red represents unfavorable outcomes. When considering security, economics, & usability, zk-rollups provide a route to sustainable scaling.

@0xPolygon

With the introduction of @0xPolygon's zkEVM and zkScrolls' zkEVM alpha testnet, it’s clear that zk systems are not going anywhere.

But, not all zk-rollups are the same. Polygon Zero and Scroll both use a recursive SNARK system, while other zk platforms elect to use STARKs.

Read 6 tweets

The TIE

@TheTIEIO

Jun 3

1/ Where is the sustainable yield in DeFi?

In contractionary markets, understanding the sustainability of asset yields is crucial. In 'The Hitchhiker's Guide to Yield', we identify baseline rates, and evaluate future sustainability of yield, relative to traditional finance.

2/ To start, it’s helpful to understand what unsustainable yield generation looks like in DeFi.

Bootstrapping liquidity remains a largely unsolved problem, with protocols often caught in the middle of a Catch-22: Either incentivize & bleed out, or never get off the ground.

3/ So, what makes other sources of yield sustainable? Once stratified, most returns in DeFi stem from a few core opportunities:

1. Proof of Stake / Proof of Work Inflation
2. Real World Interest Rates
3. Borrowing / Lending
4. Non-Incentivized Liquidity Provision

Read 4 tweets

The TIE

@TheTIEIO

Apr 22

1/ ZK Proofs for Anon Airdrops

After the Uniswap retroactive airdrop in 2020, the industry was flooded with people looking for the next hot thing, and matured as a result. This led to a dramatic rise in the increasingly complex nature of airdrop infrastructure and strategy.

Given the rising complexity, mistakes are bound to occur. Combine that with airdrops commonly exposing information about the token’s recipient, and the present state of airdrop infrastructure, security, and strategy doesn’t seem too great.

theblockcrypto.com/post/130350/a-…

In this piece, we show a system that incorporates use of zero knowledge proofs in airdrops. This combination of cryptography allows users to interact and participate in projects, get rewarded via airdrops, and not have to worry about whether their personal information was exposed

Read 14 tweets

The TIE

@TheTIEIO

Apr 21

@SandclockOrg

@SandclockOrg aims to revolutionize philanthropy by incentivizing charitable donations- crafting yield opportunities that are sustainable, scalable, and accessible

To do this, they drew on crypto-native primitives like mining, yield-farming, and creating a new token, $QUARTZ:

@WWolfCrypto

The TIE, through @WWolfCrypto, had a chance to sit down with Sandclock's founder, Christiano, and hear about some of the team's vision for the project & where they they are innovating.

Three things stood out: Charity Mining, Optimized Taxes, and Optimized Yield Re-Direction.

Charity mining is an innovative mechanism that uses a portion of token distribution to incentivize donations.

This system is non-inflationary, non-dilutive, and is directly in line with Sandclock’s mission-striving to make an impact by incentivizing others to give.

Read 20 tweets

The TIE

@TheTIEIO

Apr 18

@GMX_IO

The DeFi derivative market is currently 30x smaller than its Centralized counterpart. As regulation increases, and protocols grow, that gap will shrink.

$dYdX remains the one to beat, but @GMX_IO is closing the gap. We sat down with the team to help you understand why:

@dopex_io

When $GMX launched on 9/6, it was in tandem with Arbitrum & @dopex_io. The goal was to serve as a centralized execution hub for the L2 & later take their unique 0-fee perp trading experience and deploy cross-chain, which has started to happen with their move onto @avalancheavax.

With a number of synthetic & perpetual trading protocols available on-chain, differentiating between their long term value propositions becomes increasingly important.

Read 21 tweets

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