T.An

DeFi Purist
Building @ammplify_xyz and @burve_fi
Prev: HRT

[T.An @1xTerence]

Just got an appearance on Monad in the Morning for making a clown of myself at their UGC workshop.
Can't wait to cringe watching it back

[T.An @1xTerence]

@lordjorx @tulipacapital @yieldbasis So the AMM designed to not have impermanent loss has impermanent loss.

[T.An @1xTerence]

Whys my entire feed people posting fake stories of Clawd printing money off of Polymarket. What do they have to gain from this? Are they just trying to get people to place stupid bets?

[Capricorn @CapricornDEX]

Capricorn Day 1 Liquidity Stack:
Data:
@trycodex

Trade:
@KyberNetwork
@KuruExchange
@mace_ag
@0xProject
@monorail_xyz
@OpenOceanGlobal
[Redacted]

Earn:
@ammplify_xyz

[T.An @1xTerence]

For AMM users, any thoughts about viewing "IL" this way?
First it's tracked just as PnL in USDC terms, and second it's graphed over a range of prices so you don't have to punch it into any calculator.

[Gio @giovignone]

Usually when you DM your account manager it’s for a refund – not an upgrade.

Pull up a seat with @1xTerence or just shoot me a message if you want to find a shit ton of bugs.

[T.An @1xTerence]

I don't bullpost Monad often cuz community leeches are hella gross, but the airdrop has really outted how many people hopped on the Monad bandwagon cuz they're bullish on the tech and the people, and how many are just bullshitting to farm and was disappointed they got caught.

Ammplify literally can't be built on any other chain (except maybe Solana?) cuz of our gas demands and we're just one protocol. Building a scalable blockchain is the first step in onboarding more advanced, feature-rich, compute intensive protocols to Web3. And this is just the current specs. James and Keone aren't going anywhere, the chain will improve, builders will realize new primitives to build, and if you lose sight of that ask yourself how much do you actually believe in Monad? in DeFi? in Web3?

[T.An @1xTerence]

This is heartbreaking. Bunni was a competitor but I had nothing but respect for their ingenuity. Best wishes to their team members and all their future endeavors.

[Bunni @bunni_xyz]

Hello everyone, it is with saddened hearts that we announce the shutdown of Bunni.

The recent exploit has forced Bunni's growth to a halt, and in order to securely relaunch we'd need to pay 6-7 figures in audit & monitoring expenses alone – requiring capital that we simply don't have. It'd also take months of development & BD effort just to get Bunni back to where it was before the exploit, which we cannot afford. Thus, we have decided it's best to shut down Bunni.

Here's what will happen:
- Bunni users will still be able to withdraw assets via the Bunni website until further notice.
- We intend to distribute the remaining treasury assets to BUNNI, LIT, and veBUNNI holders based on a snapshot. However, the validation of the legal process is ongoing, and the exact details of the distribution will be shared at a later date once the legal process is finalized. Team members will be excluded from the snapshot.
- The Bunni v2 smart contracts have been relicensed from BUSL to MIT, enabling everyone to utilize our innovations such as LDFs, surge fees, and autonomous rebalancing. We have pushed the AMM space forward by a generation, and it would be a shame if our efforts went to waste.
- We will continue working with law enforcement to recover the stolen funds from the exploiter.

Thank you to everyone who has supported us throughout our journey to push DeFi forward.

[T.An @1xTerence]

@funderbrker Sorry i shoulda clarified. Street food. Like what you’d find at a night market. The sauce on fried chicken, the buns, the drinks, etc

[T.An @1xTerence]

Taiwanese food is so friggin sweet I suspect the only reason everyone doesn't have heart disease is because the entire country is a literal sauna 9 months of the year.

[T.An @1xTerence]

It's happening

[T.An @1xTerence]

Note that yesterday's scenario might have triggered a halt instead of LULD by NYSE's rules, and we'll need to redesign rules for cryptos idiosyncratic correlations and volatility, but I'm sure it can be done, and periods of uni-directional bid/asks are still useful.

[T.An @1xTerence]

In all the conversations around ADL I've yet to see someone mention NYSE's Limit Up and Limit Down rules. It was specifically made to handle scenarios like this.

If a single ticker drops unexpectedly, market participants can only post bids. They might not, but that's fine. It still prevents the dramatically goes-to-zero-wicks that wiped everyone out. Ultimately exchanges are made for people, and we need to slow down liquidations so people can re-collateralize and adjust their priors. This not only helps actual users but the exchange itself. We could have avoided ADL entirely had LULD rules been in place.

When I advocate for circuit breakers and LULD rules, some people might contest that other exchanges will keep trading. That's entirely fine. The point is a large exchange like Binance halting removes enough price discovery that other markets will stall on volume and have less reliable quotes as well. Think of how wide aftermarket spreads are. This is a good thing. It gives actual humans the chance to step in instead of just letting the algos roll over everyone.

Having said that, after some good conversations and threads, I'm open to changing my mind on ADL, but two things still stick out to me.

1. HLP having their best day ever obviously leaves a bad taste in lots of people's mouths. IMO they should share in the socialized losses or at least take more modest profits. Is HLP there to make money from HL users or to act as an insurance fund? A bit of both no? Jeff calls it a "social good" for users. It's understood to provide non-toxic liquidity but to turn around and opportunistically pull liquidity breaks said social contract.

2. Protocols should be their own buyers of last resort. Without clear fundamentals like tradfi, we rely on protocols signaling their own health. Idk what honest founder wouldn't buy back their own equity at a steep discount. I hope the industry can institute a standard where we measure a protocol's worthiness by their willingness to bid for their own token.

Putting 1 and 2 together makes me question if HYPE should be also used as a deep bidder on HL.

But anyways, in short
1. Limit Up Limit Down is good.
2. Circuit breakers are also good and it doesn't matter if other venues keep running if the big ones halt.
3. We should be designing exchanges around humans.
4. Protocols should be buyers-of-last-resort for their own tokens.
5. HLP cannot be both a "social good" and opportunistically antagonize users.

[T.An @1xTerence]

@markus_ Definitely not across the board, but I'm hoping more mature markets like Binance would start looking into it.

[T.An @1xTerence]

@markus_ Yeah I think that tradeoff depends on on who you want to prioritize. IMO the former’s bid is mostly uninformed retail and the latter protects them from whats no different than a scam wick. I do think the former is better for the exchange though

[T.An @1xTerence]

How the heck is auto-deleveraging acceptable? Really exposes how much defi lipstick we’ve put on the pig.

[T.An @1xTerence]

@markus_ Cuz that’s precisely what happened with so many alts. It doesn’t matter if it keeps trading on other exchanges. That level of volatility doesn’t help anyone except the HFTs that can snipe. Better to let the dust settle and then resume clearing if necessary

[T.An @1xTerence]

@markus_ It’s not the gapping that’s the reason they halt books. The purpose is to give time for market makers to reposition so you won’t end up with scenarios where it gaps down 60%, blows up positions, cascades more liquidations, and then bounces again to something reasonable.

[T.An @1xTerence]

@markus_ So as far as i know, that’s not how tradfi adl works for exactly the problem you’re mentioning. The approach is to let the positions stand, halt the market, wait for stability and let the clearing house socialize losses. Which doesn’t blow up anyone in particular.

[T.An @1xTerence]

If yesterday didn’t explain why DeFi needs options, idk what will

[T.An @1xTerence]

@markus_ If you’re long short tho, your broker knows to close both if they need margin back. HL closing half a leg (the profitable leg) is pretty unacceptable