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Dan Robinson Profile picture
Dan Robinson
@danrobinson
coder / lawyer. research at @paradigm. priority ordering reply guy
Go Profile picture 1 subscribed
Jun 4 • 7 tweets • 2 min read
New mechanism with @_Dave__White_!

We present MEV taxes, a technique that:

* Lets arbitrary apps capture their MEV
* Preserves composeability
* Would work today on OP Stack L2s like @Optimism @base @Blast_L2

The secret? The surprising power of priority ordering 🧵 Image To implement MEV taxes, smart contracts charge a fee as a function of the priority fee of the transaction.

We show that if a smart contract charges searchers a MEV tax of (say) $99 for every $1 of priority fee, it can capture 99% of the competitive MEV for that transaction. Image
Mar 7 • 8 tweets • 2 min read
Introducing the auction-managed AMM!

A new AMM design that:

⚖️ Reduces LVR
⚙️ Optimizes swap fees
📈 Smooths LP returns
🌊 Should attract higher liquidity than any fixed-fee AMM

New paper with @ciamac (@paradigm / @Columbia_Biz) and @AustinAdams10 @saraareynolds (@Uniswap) Image Two of the most important challenges in AMM research are:

* Minimizing losses to informed flow (i.e. reducing loss-vs-rebalancing)
* Maximizing revenue from uninformed flow (i.e. optimizing fees)

The am-AMM targets both of these problems with one mechanism.
Jul 17, 2023 • 10 tweets • 2 min read
Five reasons I think UniswapX changes the game for decentralized exchange, MEV, and interoperability 🧵

https://t.co/dapv2tRxrUuniswap.org/whitepaper-uni…
Image 1. The architecture opens up a vast design space for DEX.

Signed orders (or “intents,” to use the parlance of our times) can be more efficient, more flexible, and ultimately more powerful than transactions.
May 1, 2023 • 7 tweets • 3 min read
Introducing Blend!

@blur_io wanted a lending protocol with:

* Arbitrary collateral, including NFTs
* No oracles
* No expiries
* Market-set interest rates

So @transmissions11 and I worked with them to design a new mechanism

Here’s how it works 🧵

In Blend, lenders are matched peer-to-peer with borrowers

Lenders sign off-chain offers that specify an interest rate and a collection they're willing to lend against

Borrowers can select the best available offer to instantly borrow against their NFT on-chain
Dec 4, 2022 • 6 tweets • 2 min read
It looks like ChatGPT doesn’t distinguish between questions and answers, so you can train it to give whatever kind of answer you want by giving it the first few words of the desired response
Jul 19, 2022 • 4 tweets • 1 min read
One fun thing about being in Europe is clicking “I accept” on a GDPR popup six hundred times a day If you use private browsing it’s even worse because it shows up every time

So GDPR actively deters people from protecting their own privacy
Jun 27, 2022 • 5 tweets • 1 min read
Suppose you have a protocol that lets you split 1 USDC into two tokens, 1 of token A and 1 of token B.

Anyone can redeem 1 A + 1 B to get 1 USDC, at any time.

What price will these tokens trade at? Suppose A is trading at 0.75 USDC and B is trading at 0.25 USDC

Is there an arbitrage?
Jan 11, 2022 • 4 tweets • 3 min read
Squeeth is live.

This is one of the most elegant mechanisms I've seen come out of DeFi, and further proof that web3 enables innovation and iteration at an unprecedented pace

Now it's in production, thanks to a Herculean effort from the @opyn_ team

1/ Squeeth is based on an idea @_Dave__White_ had during an @opyn_ research retreat

His prior work on "everlasting options" was a simplification of options that removed expiries

This went further by removing strikes as well!



2/
Mar 23, 2021 • 5 tweets • 2 min read
Uniswap v3 is now public, after eighteen months of research and development: uniswap.org/whitepaper-v3.…

I think it’s the best DEX design on the planet.

If you've heard me cryptically address a problem by saying that "Uniswap v3 fixes this," now I can finally explain why.

1/ By improving capital-efficiency and the usability of the oracle, Uniswap v3 leaps miles ahead of the competition.

But that doesn’t mean it puts custom AMM designers like me out of business.

In fact, it could become one of the most powerful tools in the AMM design toolbox.

2/
Oct 15, 2020 • 7 tweets • 3 min read
This thread is the purest instance I’ve seen of a very common misunderstanding of how AMMs work.

It’s just wrong. The math in it is wrong, the mechanics are wrong, and as a result, the conclusion is wrong. There are actually a few common fallacies highlighted in this thread. For example the idea that the exact same trade is better for LPs if it comes from an non-arbitrage trader rather than an arbitrageur.

(see also tweet 8 twitter.com/kylesamani/sta…)
May 7, 2020 • 9 tweets • 8 min read
Yield is @paradigm's first incubation, and I am thrilled that @niemerg is building out the @yieldprotocol.

The Yield Protocol is a design for a DeFi platform supporting fixed-rate lending/borrowing as well as interest rate speculation, using "yTokens." Soon after I published the original Yield whitepaper, Allan reached out to me with some ingenious new ideas that convinced me he was the right person to build yTokens, starting with yDAI.

Today, we released a revised version of the paper with those ideas: research.paradigm.xyz/Yield.pdf