0xArmin 🌊 Profile picture
Learn crypto with me. L1s, defi and DAOs. I turn complex concepts into the simplest 🧡. Follow me for insights into building/investing in crypto.
Jun 18 β€’ 32 tweets β€’ 28 min read
The largest decentralised stablecoin. The OG dapp on @ethereum.

@MakerDAO and DAI are one of the most successful #DeFi stories, but how do they work?

Understand Maker Protocol, assess DAI risk & alphas for you.

This is part 4 of #stablecoinwar series. Let's dive in. 🧡 1/n @ethereum @MakerDAO A/ Mechanics of @MakerDAO

A quick refresher on types of #stablecoins- there are
1) fiat-backed
2) crypto-backed
3) algorithmic

DAI is a crypto-backed stablecoin, which means that all of its assets live on the blockchain! How do we make that happen? 2/n
Jun 11 β€’ 28 tweets β€’ 36 min read
USDC- safe alternative to USDT. Most people think so.

Wait, there's more. I believe #USDC is the McDonald's of #stablecoins.

My thesis on why USDC is a sleeping giant, risk assessment, and possible alphas.

This is part 3 of the #stablecoinwar series. Let's dive in. 🧢 1/n I'm going to get to what I mean by McDonald's of stablecoins. Ngl, I was blown away while reading @centre_io's whitepaper.

So let us run through how #USDC works, and I'll tell you about Centre's audacious vision. 2/n
May 18 β€’ 16 tweets β€’ 9 min read
.@a16z released their annual #crypto report.

I've read the 56 slides so you don't have to. πŸ™ƒ

A summary of the actual use cases, trends, and what's next. 🧢 1/n A) Actual use cases

A common criticism of #web3 is the lack of actual use cases. Let's see if that's true. 2/n
May 17 β€’ 14 tweets β€’ 8 min read
.@stablekwon has proposed to fork #Terra_Luna blockchain. This is a momentous decision.

Before voting on it, let's first look at 2 notable blockchain forks. Why we needed those forks, who proposed them, and how it ended.

Let's dive in. πŸ‘‡ 1/n 1. The infamous DAO hack.

In 2016, a group of @ethereum users launched a DAO- an investment fund that allowed members to vote on and fund future Ethereum-related projects. They raised more than $160 million worth of #ETH from about 11k investors.

Then came the hackers. πŸ₯² 2/n
May 11 β€’ 23 tweets β€’ 13 min read
#UST depeg explained. What started it, why the safety mechanisms failed and where we are rn.

Nuff said, let's dive in. πŸ‘‡1/n #UST is an algorithmic stablecoin. In other words, it is not meant to be backed by reserves. Instead, it uses an algorithm to maintain the peg.

We have talked about this mechanism in this thread.

Extra precautionary steps were also taken. 2/n
May 11 β€’ 7 tweets β€’ 3 min read
Now that I've a (very) small amount of following here, I thought it'll be only fair of me to disclose my #LUNA position.

I've liquidated around 90% of my LUNA positions at a price of $17.2 just a few hours earlier. This is at a loss of ~50% when I minted LUNA yesterday.

Why?1/n This is the second day (or night, depending on where you are in the world) when the #UST dropped significantly in value.

Throughout the past 24 hours, Do Kwon has been very quiet. 2/n
May 10 β€’ 20 tweets β€’ 8 min read
#UST tanked like shit. #Terra is in a crisis. But do you know the initial plan for long-term #LUNA growth?

Here's part 2 of the breakdown on Terra Luna whitepaper. 10x your #crypto understanding in 5 minutes.

Let's dive in. 🧢 1/n In our last breakdown, we talked about how maintaining #stablecoins liquidity and stablecoins peg are key to preserving global purchasing power.

We have discussed the magic mechanisms that preserve liquidity and peg. However, we stopped at a key problem. 2/n
May 9 β€’ 4 tweets β€’ 2 min read
The #crypto wars will diverge into 2 parallel paths-
1) the war for #stablecoin supremacy
2) the war for digital ownership supremacy The first will be competing for ease and reliability of daily transactions. It will face competition and pressure from its #fiat counterparts.
May 9 β€’ 5 tweets β€’ 4 min read
This is centralisation, but centralisation is not inherently bad in itself.

The summary: @LFG_org puts 1.5B in #BTC and #UST into hands of traders. Why?

If UST << 1 UST, sell the BTC to buy UST (push up UST price).
If UST >> 1 UST, use UST to buy BTC (push down UST price). What’s the controversy about?

This decision was decided on by 7 people (@KanavKariya, @nickplatias, @madcapslaugh, @Remi_Tetot, @TaiPanich_, @ZeMariaMacedo, @stablekwon).

Not exactly decentralisation.

But I don’t think we should make a big fuss. Why?