Considered.Finance

DeFi Risk Management Systems Design, Optimisation and Analytics.

[Craig Le Riche @craigleriche]

Risk Management is about maximising the average outcome while containing the worst case.

[Considered.Finance @ConsideredFin]

Our study of how to set the interest rate component goes into detail of how we think about setting this parameter to optimise perp price tracking.

https://t.co/B0JHuaamhJ

[Considered.Finance @ConsideredFin]

Despite being around for a decade crypto perpetual futures as a product are still crude.

The absence of a token specific cost of carry in any of the major exchange implementations is the clearest sign of this.

The next cycle will see innovation in the interest rate component.

[Considered.Finance @ConsideredFin]

Currently exchanges either ignore this or set it to the same level for all tokens. This creates inefficient biases and skews in the distribution of the divergence between perp price and underlying price (Premium)

[Considered.Finance @ConsideredFin]

For more details read our full report on all the ins and outs of perp funding rate convergence.
https://t.co/zTDy0mtGlI

[Considered.Finance @ConsideredFin]

The complex incentives that make perpetual futures track their underlying prices is poorly understood.

There is far more to this that simply arbitrage.

[Considered.Finance @ConsideredFin]

The way this happens is well explained in this classic paradigm piece.
https://t.co/yTheiY0hhn

[Considered.Finance @ConsideredFin]

We've created a dashboard tracking the new decentralised stablecoin from @AaveAave GHO 👻.

https://t.co/J1ejJfN3ws

GHO launched on Saturday 15 July and has 286 holders of its current $3.1m supply.

1/7

[Considered.Finance @ConsideredFin]

If following the evolution of GHO interests you check out our dashboard.

https://t.co/J1ejJfN3ws

@DuneAnalytics
@AaveAave
@0xMC2

7/7

[Considered.Finance @ConsideredFin]

We've created a dashboard tracking the new decentralised stablecoin from @AaveAave GHO 👻.

https://t.co/J1ejJfN3ws

GHO launched on Saturday 15 July and has 286 holders of its current $3.1m supply.

1/7

[Considered.Finance @ConsideredFin]

Most DEX liquidity for GHO is on Uniswap v3. It is becoming more efficient to trade now as liquidity begins to migrate to the 5bp pools. Wen 1bp?

6/7