The future holds a million stablecoins. Today's infra isn't ready.

Introducing Orbital, an automated market maker for pools of 2, 3, or 10,000 stablecoins.

Orbital unlocks capital efficiency by bringing concentrated liquidity to higher dimensions.

w/ @danrobinson @ciamac

1/8 Here's a graph of the reserves of an automated market maker (AMM) between USDC and USDT.

Traders can put in USDC to take out USDT, and vice versa.

In the middle, where reserves are equal, the coins have the same price. At the edges, one is worthless compared to the other.

2/8

Prediction markets let you bet on outcomes, but so much more is possible.

This paper introduces Multiverse Finance, which splits the financial system into parallel universes so you can short the market today, but only if your candidate is going to lose the next election.

1/ Let's say you don't think Trump will fire Jerome Powell in 2025.

You can go to Polymarket today and buy a notFiredUSD token for 89 cents which will be worth $1 in 2026 if Powell isn't fired by then.

2/

thought i'd try something new and do some of my sense-making around o3 in public

to start, it's been quite a shock. every conversation i had yesterday revolved around it. it affected my sleep.

probably some anomalies in oura data for certain SF neighborhoods last night.

1/ i think this @nickcammarata tweet was my first exposure to the news, so that colored the rest of my impressions

nick is obviously plugged into the community and has made good calls in the past, but loves to make bold claims, so it's worth tempering



2/

https://x.com/nickcammarata/status/1870174680247873888

Art Gobblers is a decentralized art factory owned by aliens.

As artists make cool art, Gobblers gains cultural relevance, making collectors want the art more, incentivizing artists to make cooler art.

It's also an on-chain game.

w @FrankieIsLost @transmissions11 @JustinRoiland Art Gobblers are called Art Gobblers because they gobble art.

In particular, they eat art that artists draw using our draw tool and turn into 1/1 NFTs using in-game resources.

All the artworks a Gobbler eats belong to it on-chain and are displayed in its belly gallery forever.

When NFT projects have a fungible token, the communities holding the NFT and the token often diverge over time.

@FrankieIsLost, @transmissions11 and I built a mechanism for @artgobblers to disincentivize this divergence and fix it when it happens anyway.

paradigm.xyz/2022/09/goo Art Gobblers, from our upcoming NFT project @artgobblers, are NFTs that produce an Ethereum token called Goo, which they squirt out of hoses in the middle of their backs.

https://twitter.com/artgobblers/status/1542649180354535425?s=20&t=Xuyz7dgpdSx-t-WW-1zlkA

I've been working on a new ecosystem growth engine with @owocki.

@gitcoin Aqueduct incentivizes ecosystem development for your project with a single line of Solidity, and unbundles the work of protocol creation from the work of ecosystem support.

gov.gitcoin.co/t/gitcoin-aque… To fill your Aqueduct, you transfer in some of your project’s revenue or inflation.

Initially, it will distribute these tokens to developers on your ecosystem automatically, creating and running quadratic funding rounds with no human intervention.

vitalik.ca/general/2019/1…

If you liked Squid Game, I've got great news for you 🦑

There's a whole "people forced to play high stakes games" genre, and it is AMAZING.

In this 🧵, I'll introduce you to my favorites and briefly analyze a game from each.

1/ First up: "Red light, Green Light" from Squid Game.

The rules of this game are simple: if you move while the robot is looking, you die.

No particular skill or intelligence is required to win. On the other hand, anything short of perfection is fatal.

2/

I've been working on a new NFT primitive with @andy8052 and @danrobinson: RICKS (Recurrently Issued Collectively Kept Shards).

When you fractionalize an NFT into RICKS, the protocol mints and sells new RICKS every day.

All proceeds go to RICKS stakers.

paradigm.xyz/2021/10/ricks/ RICKS solve the reconstitution problem:

If you want to sell 25% of a plate of eight cookies, you can sell two of the cookies and still eat the remaining six.

On the other hand, owning 99.99% of an in-game asset may not entitle you to use even part of that asset in a given game.

I've been working on a highly speculative new NFT primitive: Martingale shares, or "Mortys."

Mortys represent fractional ownership of classes of NFTs.

They do not require buyouts or oracles, but instead rely on a random Martingale settlement process.

paradigm.xyz/2021/09/martin… Imagine Alice owns an Ocelot from the Awful Hot Ocelots project.

The project has taken off, and she wants to get liquidity and reduce her price exposure.

Her Ocelot is special to her, and she doesn't want to sell it outright.

Ideally, she could sell 50%.

I've been working on a new NFT derivative: the floor perpetual.

Floor perps are synthetic NFTs that track the floor price of a given project and can be minted by locking up NFTs from that project.

paradigm.xyz/2021/08/floor-… Imagine you own some Ocelots from the wildly popular Awful Hot Ocelots project (thanks, @tinyatticart).

You love your Ocelots dearly and refuse to sell a single one of them.

However, they now make up a significant portion of your net worth, and you would like some liquidity.

I've been working on a new financial product with @danrobinson and the team @opyn_: the power perpetual.

If the price of ETH doubles, the ETH^2 power perp 4Xs, the ETH^3 power perp 8Xs, and the ETH^5 power perp 32Xs.

paradigm.xyz/2021/08/power-… Power perpetuals provide global options-like exposure without the need for either strikes or expiries, giving them the potential to consolidate much of options market liquidity into a single instrument.

They can be thought of as offering pure convexity.

https://twitter.com/_Dave__White_/status/1423740205874302976?s=20

a quick 🧵 on convexity in options

consider the $70-strike $HOOD call

if $HOOD is worth $100 at expiry, we can exercise the call for $70 and sell the stock for $100, netting a profit of $30

the payoff diagram below show's the call's value at expiry for all $HOOD prices imagine our call isn't due to expire until next month, and the price of $HOOD is currently $70

if we were to exercise the option now, we would make $0, so the option's payoff is $0

however, the option's value is going to be a lot more than $0

I've been working on a new type of automated market maker with @danrobinson and @haydenzadams.

The Time-Weighted Average Market Maker, or TWAMM (pronounced "tee-wham"), helps traders on Ethereum efficiently execute large orders.

paradigm.xyz/2021/07/twamm/ If I wanted to buy $100 million of $GME over the next 8 hours, I would send an order to an algorithmic broker like @Citadel.

They would execute it at a price close to an agreed-upon benchmark, like the time-weighted average price (TWAP) of $GME over that period.

i've been working on a new financial product: everlasting options

perps give traders never-ending futures exposure without the effort, risk, or cost of rolling

now, we can do the same for options... and @SBF_Alameda and I have a simple pricing model

paradigm.xyz/2021/05/everla… because regular options expire, if you want to use them long-term to protect yourself from sudden drops in the price of ETH, you need to continually buy new ones (NOT FINANCIAL ADVICE)

this takes time, introduces risk, and costs money in the form of spreads paid to market makers

The Cartoon Guide to Perps

retweet + follow for a chance to win an adorable perp NFT

mega thread 👇 NOT FINANCIAL ADVICE

full text: research.paradigm.xyz/cartoon-guide-…