David Reising

Founder @LotusFi_ | Prev Product Index Coop & Exodus | Defi microstructure, vaults, trade prophesies

[David Reising @Davidareising]

Better Vaults need better market structure.

With Resolv, a single issuer-side opsec failure was enough to create losses, illiquidity, or emergency actions across a web of downstream vaults, pools, and credit markets. Last year it was the $93m Stream Finance debacle due to a bad balance sheet.

LPs aren’t being compensated adequately for the opaque risk they’re taking on in many of these assets through diversified vault allocations.

@LotusFi_ doesn’t eliminate collateral risk, but we think our model eliminates much of the incentive to lend against riskier collateral. Lend against blue-chip collaterals like BTC and ETH. Keep liquidity connected. Price credit risk on a curve inside one market.

[David Reising @Davidareising]

@SuiNetwork Surely @RaoulGMI can show a chart of some kind

[David Reising @Davidareising]

@hantengri lol

[David Reising @Davidareising]

@theyoungcrews @LotusFi_ We have spirals, we also have dinosaur tracks if that works for fossils.

[David Reising @Davidareising]

@LotusFi_ US HQ

[Delicious Tacos @Delicious_Tacos]

“It’s my honor to announce that the true pope is working with us from Avignon”

[David Reising @Davidareising]

@nicoypei @DeanEigenmann I like the Fx call. Even more broadly I’d say anything that can generate scalable yield that meets their instant liquidity sensitivity.

[David Reising @Davidareising]

@HorinekPM ai-enabled tho!

[Ryan Rodenbaugh @ryanrodenbaugh]

We (@vaultsfyi) are now powering Earn in the Arbitrum Portal.

The Arbitrum and Offchain Labs teams have been great to build with. Earn is the first step. We're continuing the work across the broader Arbitrum and Orbit ecosystems.

[David Reising @Davidareising]

Nice look at different flavors of tranching from @0xyanshu and seeing @LotusFi_ contrasted with other applications of tranching. (we’re talking to a couple of these other teams for possible crossovers)

For Lotus, tranching - in combination with Cascading Supply - was our answer to creating differentiated risk levels without fragmenting liquidity.

[0xyanshu (d/acc) @0xyanshu]

https://t.co/uQP7R8m1Se

[David Reising @Davidareising]

@variational_io @dragonfly_xyz Let’s go

[Block Analitica @BlockAnalitica]

An overview of @LotusFi_ and its market tranching by LTV (higher LTV -> higher rate).

In risk-curated, isolated market models, the market-dominant LLTV for a specific collateral/debt pair often caters to the most risk-tolerant curators.

Innovation behind Lotus protocol brings better risk pricing by introducing LTV-tranched markets, allowing more conservative risk curators and senior lenders to earn sustainable yield, isolated from higher-risk tranches. 👇

[David Reising @Davidareising]

@L0m3z The worst! It’s literally insulting

[David Reising @Davidareising]

@theyoungcrews Go ahead man you been working hard. It’s past noon

[Lotus Protocol @LotusFi_]

Today marks six weeks since our first private testnet deployment

20+ moderated sessions with users from Alea, Offchain Labs, Uniswap Foundation, Coinbase, Summerfi, Superform, and other teams across DeFi

A few things stood out:

[David Reising @Davidareising]

@dara_venture 💯

thought about Airbnb when I read this too.

[David Reising @Davidareising]

This is gonna be good!

[IRIS @iris_credit]

IRIS website and docs are live.

Website : https://t.co/WSdvNXdOEd / Docs : https://t.co/tzNGMoSVa2

If you publish strong coverage of IRIS, you’ll be invited to the IRIS Club, with full access to all private articles on https://t.co/Ueh4w7VFSE.

Share your post in the comments or via a quote retweet.

[David Reising @Davidareising]

You can set them up as such - and some of have tried and they flopped. If it were easy (this was actually the first approach we experimented with) then you’d see this today, but you don’t.

In fact, your assumption you would naturally see higher rates for higher LTs is empirically untrue as we saw rate inversions when Spark attempted through their morpho vault.

The main issues are there is no shared rate information between markets and liquidity is disconnected meaning you would need N * min capital to stand up each isolated market.

In order to actually make it work we invented a new primitive (Cascading Supply) and we also wed to get two sided accounting ledgers.

TLDR; we tried it all before designing the protocol that was required.

[David Reising @Davidareising]

@theyoungcrews @jacqmelinek Shit I should have thought of that but I panicked.

[David Reising @Davidareising]

Enjoyed chatting with @jacqmelinek and I stand by my tokenized avocados comment.

[Jacquelyn Melinek @jacqmelinek]

If you missed Cafecitos at Consensus: @_TalkingTokens Live, an event @StrataMedia_ co-hosted with GSR and Alpaca...we've got you covered.

I interviewed 8 crypto leaders in a rapid-fire mini interview series.

Each guest was asked a similar set of questions: how they describe the state of the crypto market, if bearish sentiment is overhyped, what they would tokenize today and what else they're paying attention to.

Here's what they said:

TIMESTAMPS
00:00 – Intro
00:32 – @ashgoblue (CEO @evernorthxrp), on active XRP treasury management and tokenizing compute
05:48 – @Philfog (CEO and co-founder of @Corkprotocol), on risk infrastructure DeFi is still missing
12:08 – Neil Chopra, head of strategy and BD at @FireblocksHQ, on convergence of crypto native and traditional markets
18:10 – @chiefbuidl ( co-founder and CTO @SpaceandTimeDB) on its new institutional Virtual Vaults and decentralization after exploits
21:56 – @Davidareising (founder and CEO of @LotusFi_) on tranched lending and DeFi insurance
24:36 – @iyoshyoshi, co-founder and CEO of @AlpacaHQ, on tokenization infrastructure and the paradigm shift ahead
28:11 – @TomMurphyTweets, head of communications at @Securitize, on its new Jump and Jupiter partnership, Computershare announcement, and tokenized stocks
34:38 – @Jakob_GSR, president of @GSR_io, on market structure evolution and tokenized equities trading 24/7

Watch the full episode below or on X:

[David Reising @Davidareising]

@shitterr1x @DeFi_Dad @edge_pod @LotusFi_ This is slop but thanks for your interest!