<Quentin Tarentino voice>

Let me tell you what stablecoins are about Ok there's three things you really gotta know, what is the mechanism, what is the collateral at the bottom and what is the denomination. Mechanism is, secured loan (Maker, BitShares, Zero) or derivatives (Variabl, TradeLayer, FlexUSD) or legal redemption (Circle et al.).

The latest 3AC drama wrinkle, that Su and Kyle are keeping somewhere between let's say 100M and 300M in assets and are gone fugitive with them, has got me thinking.

We live in a time where a rules-based world order is being challenged on all sides.

Also: key use case for crypto Legalists are playing fast and loose with technicalities while getting away with false testimony and various forms of graft to win politically against high-roaders, people taking to the street enacting vigilante justice, capital buildings stormed in USA and Sri Lanka, why not Su?

Now let's do a thread of key American Shadow Government people in business who are also dah-dah-dah part of the same Knights Templar bloodlines such as the House of Calverley.

JP Morgan married into it!

getyarn.io/yarn-clip/1d43…

Lady Diana is my 11th cousin once removed. Just once! Queen Elizabeth is also my 11th cousin once removed.

The Weston descendant married Captain Thomas Stocket IV whose kid married a West, which is the house that puts me 11th cousins with Diana.

Reading up on IRS provision 6050I inserted into the Infra. bill set to pass in the house on Friday.

In July we made a huge fuss about the broker thing. This is 100x worse. Criminal felonies, includes all individuals and all tokens, all mixing, all custody. Taproot mixing? You're hosed, you become a felon for using Wasabi. Mining pools that aren't doxxed? Felony. NFTs >10k, you go to jail. Programming payments in installments to keep sums <10k, also a felony. *Writing software* even some .js app logic in a wallet to assist, jail.

Now here's a thread about the novels I started but did not finish in college ranked from least favorite to most. Nobodies Understand You was my Fight Club take. It was about an office worker in New York who sees a staged fight between homeless people and gets radicalized, ends up joining a group of faux superhero vigilantes and it goes badly.

Cover photo: homeless guy on shopping cart.

I imagine some of my audience enjoys the bespoke content so here is a list of my short stories from college ranked from worst to best - no you can't read them, I have no access, they live only in memory and now twitter. But anyway here's the Buzzfeed listicle: Desymposium - Freshman year

I guess I was trying to do Plato's Symposium around my friend's divorce and a story he told me about characters who he had Thanksgiving with. Meh.

Therefore all banks that have big scale and big M2 deposit cycling are like Facebook or a mutual credit network: they're graphs with a certain velocity. Facebook has retargeting to reduce churn and drive ad interactions, banks have account velocity, mutual credit has the same. If the next Facebook (improving the utility of online advertising, massive B2C interface) were to apply what works about fractional reserve banking it could create a mutual credit network between the small/.med. sized biz using it.

Large corps+banks have done it for centuries!

A lot of the things about the BitMex swap that came to be copied widely were based on historical accidents. The Bitfinex hack caused them to adopt the round number of 1 bps per 8 hrs. Before they had a formula. They simply chose +/- 5 as well, it was a round number bias. Now I don't dispute that those were good product design moves in 2016. This was first in class. But now there is a whole industry of perp. arbers. We're smart and we like edges. So I wanted to give people edges structurally the way Deribit did, but from a new angle.

Newcoiners:

1) you have enough fiat from your career/business to buy in a HODL stake like 0.1337 BTC or more (currently almost 7k USD)

2) you risk your $1000 accumulated over years of savings buying 6x lvg. futures - can lose on a pullback

3) Call spreads

Here's the problem: 0.1 min. size on Deribit means you have to shell out fully $400 to buy 1 contract ATM for March.

That's not an advisable bet unless you're planning on catching a move fast - theta is very high - higher than many people's daily wage.

Need 25k to get portfolio margin on Deribit.

Listening to these Saylor podcasts, first off:

1) This man is having a manic episode

2) He's not wrong

3) Tracy Alloway could barely get a word in edgewise and it's funny

4) Saylor has invented Bitcoin Volization, it's beautiful let's explore the process: Step 1) Put Corporate EBIT History in a box

Step 2) Cut a low-interest coupon out of that box

Step 3) Put a 5 year call option in that coupon

Everyone wants to arb off 5 years of low theta volatility

Seeing the massive success of Yearn I can't help but contemplate on the eve of the war, what the right ratio of liquidity reward inflation vs. founder reward is. Obviously its a question laden with sunk costs. But here is my scientific approach to really learning from this: 1) The RC build we're releasing is tokens trading + KYC whitelists, featuring Trade Channel LTC trades for tokens that are fast. Vesting Tokens of Founder Reward begin accruing past 1000 LTC, the first ALLs are going to my trading desk and early investors, hmm. LTC/USD spot arb.

Had an important insight into BTC funding and the path through Bitcoin Dollarization to Bitcoinization.

But to get to it, you must brave this thread: If you're running a fund, LP money is very expensive, you pay them 80%. People make a big deal of the performance fee, but consider it like you'd pay the bank 80% if you make money and repay the principal less 2% if you don't. For arb, it's expensive. Wholesale finance is debt.

Ok so on this feed I've talked at length about:

Synth. cash position (swaps hedge) vs. synth bills (futures hedge)

Long/short futures curve

Calendar and Vertical option spreads

The merits of simply HODLing

But one position I haven't delved into, is secure borrow combos... I should charge a company in the space a few hundred bucks to write them a nice blog post, but, here's a mini-thread:

Borrow + buy synth. cash - Interest arb. Lenders charging Fed+1-4% make this viable.

Borrow + buy coin - simple margin spot deal with tighter liq. price.

A thought exp. on this swaps vs. options thing.

I want to risk 2% of my account. I'm bad I know. I think there's a good level for where I'd put a stop. I either:

Go long Perp. place stop risking 2%

Spend 3% of equity on calls. (Knowing gamma pads my fall and I can tap-out). This is sort of a riddle so take a Tweet to pause and try to imagine for yourself what the resulting leverage and cost-of-capital per-day is for these two positions...

<Jeopardy Music plays, people scribbling notes on Etch-a-Sketches>

Let's talk about Mutualism and Mutual Credit.

Mutualism is the grandpa of the Libertarianism many Bitcoiners share, from Proudhon to Rothbard, and its also the honorary name of Libertarianism's kid, who will succeed it.

Mutual Credit Clearing is the #3 killer app on Bitcoin. Mutualism came from Proudhon, a Frenchman and contemporary of Marx, who once famously trolled his book "The Philosophy of Poverty" with "The Poverty of Philosophy". Sick burn. Proudhon had similar sympathies but a different economic model. Both believed in a Labor Theory of Value

Derivative relationships 101:

Swap vs. Future

You have N USD, you buy Y BTC at, you sell N USD worth of contracts at the trade price with notional = -Y BTC. Synthetic cash. With a future there's a bond-like fixed maturity, it's a longer term rate, with swaps there's payments. There are a few positions one can take:

Swap Cash Carry

Future Cash Carry

Long Curve (Short Swap/Long Future)

Short Curve (Long Swap/Short Future)

Cash carry means collateral is all hedged into USD, like cash, and you carry it, for the swap payments for the premium decay.