1/6 If you want to skip my Tokemak v2 novel read this summary:

Liquidity Management Pools (LMPs) - core building block configured with assets (e.g. stETH, rETH, etc), and pools/DEXs (e.g. Balancer, Curve, Maverick); 2/ Autopilot - pool allocator that optimizes yield across all assets and DEXs present in an LMP - no need to monitor yields or hop between pools, let Autopilot do the heavy lifting without worrying about gas costs;

1) Lock it up Pilots

DeFi is converging to a schelling point that will power a new meta, those who abandon the PvP mindset and embrace collaboration will thrive. Let's look at our strategy for Curve/Convex and the aligned interests that will fuel this flywheel. 2) Both extremes of the bell curve understand that the goal is for Tokemak to become DeFi's LP governed by TOKE. As a decentralized market maker, Tokemak is a dual-sided system (Token & Pair Reactors) that aggregates liquidity with single-sided exposure and mitigated IL risks.

1) Token & Pair Reactors are the duality that powers Tokemak's liquidity engine. This thread is focused on Pair Reactors and it provides a comprehensive view of Tokemak's value proposition for Pair Assets. The article below explores this topic in-depth.

medium.com/tokemak/tokema… 2) Deep liquidity on Curve is a synonym of peg stability for stablecoins. The minimized slippage that is possible due to Curve’s Stableswap invariant incentivizes arbitrage opportunities whenever the price slips off peg. This arbitrage process restores the stablecoin to its peg.

1) Thread: DeFi beyond Liquidity Mining - Tokemak

Adapt, evolve and overcome. Antifragility is the quintessence of DeFi, leveraging its flaws, vulnerabilities become strengths. The paradigm shift is here, is it sustainable? Not yet, but we will get there. 2) This overview on the future of DeFi will cover a short and long-term horizon on the next major topic in this space, sustainable liquidity. Let's start with the obvious first order implications, pool 2 bootstrapping, liquidity mining (LM), and the current solutions.

1) At its core MEV is nothing but a speed and information asymmetry issue, if you know in advance a future action you can exploit it. There's a historical short that illustrates my favorite "MEV" exploit. Let me take you back to the American Civil War. 2) In 1865 the Confederate army was on the brink of defeat. Where some saw despair James Fisk saw an opportunity. Knowing that Confederate bonds were traded on the London market, James conceived a plan to short them at the right moment.

1) Using idle treasury assets to deploy liquidity to pool 2s is a valid solution to improve capital efficiency, regardless, Tokemak provides a better option: use idle treasury assets to buy/borrow TOKE and leverage the protocol's assets as a Liquidity Director.

https://twitter.com/wvaeu/status/1425696889345744898

2) Instead of directly buying TOKE, protocols are empowered with a "borrow to bootstrap" model. As long as borrow interest rates are lower than the reactor's LD TOKE yield, the protocol is able to increase its treasury while simultaneously directing liquidity to its pools.

1) Thread: Tokemak, the next chapter of DeFi

DeFi is recent, this apparent oxymoron summons dark memories of EtherDelta's orderbook-based UX that were permanently erased by Bancor's AMM innovation. 2) AMM-based DEXs quickly grew to become the building block that sustains DeFi's composability stack. Catalyzed by open and permissionless development, new DeFi primitives were created and combined. Supported by AMMs, the application layer thrived.

1) There's an obvious risk on Ethereum's DeFi ecosystem that most people are either ignoring or they're simply unaware. Take MakerDAO for example, their Maker token is supposed to increase in value through the buy back and burn generated through DAI's interest. 2) With a shrinking supply the investor logically expects positive returns. Does this remotely resemble an utility token? Many might argue that this is a legal grey area but to me it seems fairly obvious that from a regulatory point of view this is a security token.