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Engineer contributing to Public Goods and Open Systems.
Core | @MembraneFinance 🧬 Fren | @ApolloDAO 🏹

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So excited to finally unveil Membrane, it’s been in the works for a long while, thank you to everyone who has been involved in the process. Feel free to check out the article! More information will be on its way soon.

[The Membrane | CDT 🌐 @saneinthembrn]

Introducing Membrane, a new protocol that powers native margin for DEXs, robust liquidity for derivatives, and credit services for users. Read our litepaper below: https://t.co/VjKuPLTcNA

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@zkdragon @sunnya97 @MembraneFinance For Membrane however, I actually am most excited about the Cross-collateral system. (Essentially a margin account a la Mars Rovers, but native to the protocol) This enables hedged or low-delta positions to be maintained as a net position, preventing siloed liquidations.

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@zkdragon @sunnya97 @MembraneFinance So Membrane does use a Reflex Index like RAI, however just to clarify a bit what I meant by denomination: When we say “reduced volatility token”, we reducing vol with respect to a base unit, (for RAI, it would be ETH->USD).

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@zkdragon @sunnya97 @MembraneFinance The denomination is what you are dampening with respect to.

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@EthosVentures @lex_node Oh for sure. My (albeit naive) take was that if the SEC is perceived as using weak targets to expand the interpretation of Howey (as some believe). It may be possible to go after strong targets to try and have exclusionary precedent also well defined (for better or worse).

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@EthosVentures @lex_node Agree 100% that the law needs to change, however in the absence of that change I do think that cases like Topshots help defined the nuance here. For example, MMORPGs sell items on primary and secondary markets, with item/currency sales propping up a centralized server.

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@EthosVentures @lex_node That’s actually what I was referring to. Topshots is an interesting case because if they end up losing the case, then things like MTG, Pokemon, Baseball cards etc. become much easier targets. If that happens, the endgame gets super interesting. Is Amazon a securities exchange?

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@zmanian IMO they’ll make it a perk of the Coinbase Wallet. Removes systemic USDC risk from the L2 and makes their wallet the ideal way to transact on Base.

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@MonetSupply @pythianism Would take a look at @MembraneFinance as well, has a few decent innovations on the typical CDP model.

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@cryptomuf @mark0baricevic @DonCryptonium @GoldenStaking Isn’t this the logical conclusion of that viewpoint though? If one believes CHub is deceptive and therefore steals value from genuine innovation in Cosmos, then it would follow that CHub should redistribute that value to the innovators pushing the ecosystem forward.

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@thiccythot_ @InfPools @0x94305 @OneTrueKirk @GammaSwapLabs Either way, shows that the 'DeFi sector' for manipulations of the AMM model (crvUSD, gammaswap, Infpool) is full of new experiments which is encouraging. We'll see which ones stick in the data as always, I don't exactly feel qualified to make those predictions on new protocols

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@thiccythot_ @InfPools @0x94305 @OneTrueKirk @GammaSwapLabs I think "same" is stretching it. Gammaswap uses CFMMs and holds the token in amm pools I believe, distributing "gAMM" tokens. Haven't seen anything from them describing either leverage or Univ3. seems as different as CDP vs LLAMMA imo but i dont follow gamma too closely.

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@OneTrueKirk @0xGeeGee @0x94305 @InfPools I think the only math you'd need to consider (if you are already LPed) is whether the LP APR exceeds the InfPool APR. These will inevitably diverge as demand comes from different sources. As for those comparing it to conventional single-asset lending, the math is more complex.

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@0x94305 @InfPools @OneTrueKirk In both cases the 'making' risk is identical, the markets are just different (perp vs spot).

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@0x94305 @InfPools @OneTrueKirk Ahh, you're right V3LPs don't compound fees into the position value. So in this case the expected funding rate would have to exceed expected fees for you to make the market. Very solid point.
In any case I think it should be seen as an alternative to LPing, not to lending.

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@0x94305 @InfPools @OneTrueKirk Ah, but if you want to LP for the yield and you believe it to be profitable (2.5b of assets there rn), Aave won't permit you to lend that (to my knowledge).

The old "to LP or not to LP" debate is a long one, was operating under the assumption that one was in a LP already.

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@0x94305 @InfPools @OneTrueKirk At least this was my understanding based on the WP. Cool stuff for sure, only concern would be scaling difficulties due to limited lending supply causing crazy rates.

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@0x94305 @InfPools @OneTrueKirk There is no "Credit risk" because the borrower balance mathematically cant decline below the requisite collateral deposited.
Back to your example, you have $1000 of Luna-USDC LP and lend it. Borrower buys $1000 Luna with it. Luna goes to zero, but the LP is 100% comprised of Luna