Lots of controversy surrounding the $ETH views, so thought I'd counter just a bit.
First, just want to say that the first 75% of the podcast is filled with awesome trading alpha. Asymmetric payoffs, risk management, inability to dump bad trades (or, worse, doubling down), bad trades turning into investments. Basically, everything that makes you a bad trader.
Last 30 minutes is the ETH discussion. Su starts off by saying that BTC is the reserve currency, especially for bigger players such as miners and exchanges. I think it's funny that those are two of the biggest groups to be disintermediated by ETH (with PoS + DEXes).
2) I used to trade Treasuries, and Tsy futures. And trading the "basis" for a particular maturity was a very popular trade. Similar to how BTC on Bitmex tracks BTC on Coinbase pretty closely due to arbitrage, so too would, say, the 7yr bond track the futures contract for that...
3) ...maturity (CME product known as the ZN). As a basis trader, the 7yr/ZN was WILDLY popular and profitable. The single most levered up trade in the treasury market due to the liquidity and volume of the ZN. For whatever reason, this trade was my entire firm's bread and...
Super interesting technical discussions on both sides of the AMM debate tonight(@SBF_Alameda and @KyleSamani vs @danrobinson). There are also plenty of practical reasons for Uniswap's strong PMF, though. Here's the bottom line for me, as an active Uniswap LP:
For starters, where am I going to get my own personal on-chain algo trading firm with a single transaction? I don't have time or resources to build a bespoke AMM strategy.
I also just don't really care about any of the inefficiencies. I have no other options, and I'm pretty confident that I'm going to make money off the trading fees blindly fading some of these pairs both ways.
THREAD: DeFi is at risk due to ProgPOW. If you care about collateral-based systems such as Maker / Dai, Compound, dYdX, and more, please consider taking a stance on ProgPOW. My number one priority is to prevent a contentious split, not to approve / reject ProgPOW (PP). 1/10
Setup: If PP is pushed through, and there is a contentious split such that the non-PP chain carries sufficient economic weight **even temporarily**, then an enormous amount of collateral will instantly be liquidated. 2/10
For example, if the marketcap split of $ETH is 60/40, (which we saw in the case of ETH/ETC, and BTC/BCH), then a large number of Vaults and other positions will be liquidated since the average Maker collateralization ratio is currently ~300% and the threshold is 150%. 3/10
A thread on social media platforms regarding the @5chdn drama. I mainly want to highlight that various social media platforms have vastly different characteristics, and that most people aren't aware of this. 1/10
Many crypto reddits used to be small, with high signal. The communities were awesome. r/ethereum, r/ethtrader were markedly different. I imagine r/bitcoin was the same once upon a time. As these communities grew, the quality of discourse objectively declined. 2/10
Many prominent members of the community slowly left reddit and joined other platforms such as discord and Telegram. By far the most dominant crypto platform became Twitter. There's a very simple explanation for this: social scalability 3/10
A (very bad) history of key events for smart contracts on Ethereum and why they're exciting: 1. Create a digital token (ERC-20) 2. Create an atomic swap contract to trustlessly exchange these ERC-20 tokens 2.5 Realize that all the tokens we've created so far are worthless
3. Create a token that's actually worth something, and test out your new swapper contracts 4. Fuck up and have your application drained of 12 million Eth. 4.5 Fork Ethereum
5. Create better swappers and concatenate them into an order book to create a decentralized exchange. 6. Realize that all digital tokens are still pretty worthless. 7. Finally, create first valuable ERC-20 token by using smart contracts to lock up collateral
Liquidity is just **one** aspect of investing. A crucial, often overlooked aspect, for sure. But fundamentals still matter. And finding solid innovations in the crypto space can be hugely profitable and worth it despite less liquidity. Nascent coins are on a different time scale.
In particular, liquidity crunches hit hardest for massively premined, manipulated, or otherwise completely hot-air coins. I don't want to re-name names, but there are obviously common ones that come to mind. In any case, in the end technology and innovation reign supreme
0/ 61 markets and $16,000 of open interest so far within 12 hours of Augur's launch. In case you're wondering "what's the big deal," let's go over some of the markets that have been created so far.
1/ The most popular market was "Will France Defeat Belgium in the 2018 FIFA World Cup Semifinals?" The odds updated as goals were scored, and trustless sports betting will likely be a killer feature.
2/ Obviously, politics is a huge area of interest. "Will Donald J. Trump be elected AND inaugurated as President of the United States for the 2021-2025 presidential term?" will also likely be a huge market.
1/ The goal of crypto isn't to redistribute the wealth in some sort of socialist sense (we're not airdropping coins to everyone so we can all be happy together). The point of crypto is to wrest undue power away from those who have honestly earned their wealth.
2/ For example, fiat wealth brings extra advantages that are undeniably unfair and abusive towards the rest of society. With fiat wealth comes political power and control over the money supply, leading to unchecked power and control.