The idea behind vesting contracts is a actually a good one: we want the people building to have a vested interest in continuing to build, even though they have large upside
When you're investing with a project, you want long-term alignment from the contributors to that project
Aug 11, 2021 • 6 tweets • 2 min read
You know what? I just figured it out
The people focused on regulations see the parallels between DeFi and TradFi because they both share complexity (all finance is layered complexity)
Complexity isn't what caused systemic issues like the 2008 crash, the lack of transparency is.
We have *no idea* if TradFi financial products we are offered are what they say they are, because their composition is considered proprietary business info, so we have regulations there to force us to read through reams of incomprehensible paperwork to make sure asses are covered
Aug 11, 2021 • 17 tweets • 10 min read
@angela_walch Glad you asked! I have devoted the entire 4 years of my career to solving these problems, every since the day of the 2nd Parity msig hack in 2017 when I realized there was an extreme lack of software security processes like the ones I was used to at the companies I've worked for.
@angela_walch #1: Improving transparency and security processes of development teams through open source, common sense process checklists - @DefiSafety
#2: We created a TG and Discord community for Security engineers to communicate and learn from each other in 2018 #ETHSecurity
Aug 10, 2021 • 4 tweets • 1 min read
I got angry with people constantly saying "but the rich get richer!" so I wrote this: link.medium.com/OxzRW4C8Aib
btw, if you mined with only one Antminer S17 Pro over 18 months, you'd be at a net loss of 2% annualized
Aug 8, 2021 • 11 tweets • 3 min read
I think I've figured out why no one wants to give up potentially classifying devs as brokers, no matter how much they say they won't prosecute: They think DeFi devs are the critical piece to implement 1099 reporting in DeFi dapps
I don't think this is a completely unreasonable request (while it is an unreasonable demand IMO), because right now figuring cost basis for tax reporting is a ridiculously hard problem.
NFT idea: 1. develop a trait/attribute model for your NFT collectibles 2. Allow "tokenizing" the NFT and issuing N (fungible) tokens based on M attributes 3. Allow buying and selling in "attribute markets" 4. Can only unwrap if you have 1:1 of each attribute of the target NFT
Bonus points if the attribute model is scalable to account for underpriced or missing attributes
NFTs themselves will never be 1:1 swapable, but their underlying attributes can be decomposed (according to a model) and made swapable to establish more efficient pricing
Jan 16, 2021 • 18 tweets • 4 min read
I'm sure someone else has explained this, but it is just so cool and I want to explain how this works.
So Curve is awesome for swaps between similar assets, right? The fact that they trade very close to each other is a key part about how Curve works, using it's custom swap invariant function.
That's step 1
Jan 14, 2021 • 12 tweets • 3 min read
Whoa, this is actually kind of nuts
So this psuedo-cartel of US miners only processes "compliant" transactions, meaning that they use their hashrate to exclude transactions from countries on the US financial sanctions list
But they only have 8% hashrate, so what's the big deal?
Well, that's all good and fine. That means 92% of Bitcoin hashrate should, in theory, process the remaining transactions, because it is economically profitable to do so. This mining cartel even says it themselves, they take a 0.35% hit to profits to provide this service
Dec 23, 2020 • 12 tweets • 3 min read
This is excellent:
The EIP repo is seen as a place where EIPs are drafted and kept as records. The hard-fork coordination process now is a separate process that passes EIPs “into law.”
Some background: past EIP-related "governance blowups" (such as ProgPoW) stemmed from a mis-use/mis-consideration of the EIP process by most. An EIP being moved to Accepted signaled to some that it was "official", where the reality is anything but.
Oct 29, 2020 • 8 tweets • 2 min read
Let's say you have a protocol token that earns dividends.
It earns $20m in fees per year (on average). Those fees are split evenly among it's holders.
Let's say there are 20k tokens. That means each token earns $1k per year (this is called earnings)
What should the price be?
Well, if you're naive about it, then the price could be $1k per token. That means if you held it for a year, it would effectively pay for itself. Almost no asset trades at a price to earnings ratio (P/E) of 1:1. No one is that conservative!
Typical P/E ratio is more like 5-30
Oct 8, 2020 • 7 tweets • 2 min read
When you are investing in a token, you are *not* investing in the software it runs on.
Not in the technical community members who pour their energy into new creative ideas.
You are not investing in someone else, you are *asking* to join a community and build value for yourself.
The software? It's meaningless. Just bits and lost ether.
Technical community members can add a lot of value through their creativity, but that value ultimately doesn't matter without a community that cares enough to use it (and use it correctly).
A token isn't just a meme.
Oct 8, 2020 • 4 tweets • 1 min read
And sometimes you just need someone chad enough to stick themselves into that probe. Our job is to keep those brave souls as safe as possible while exploring the new frontiers of DeFi!
This is my personal design philosophy I bring when I contribute to yearn.
