Our team is cranking away at launching new features and markets into the year-end. Next up are equity futures, starting with $COIN and $HOOD. Fun fact: both are investors in Lighter.
https://t.co/ofQAmWm7jK
10% of Bitcoin seems to be a reasonable lower bound target for ZEC
that sounds a bit crazy until you realize XRP/BNB are already close to that
the memeability is there, the ecosystem/community is there, and the tech and utility are there
will take work but will be fun
1. My original tweet referenced the cost of holding positions. Many understood this to refer to the cost of longs specifically. I was referring to short positions. I could have been clearer in my language, but it didn’t occur to me that this would be misinterpreted.
2. Others, while understanding my point, criticized the spirit of it, claiming (1) it is unfair to extrapolate an annual cost that only persisted for a short period of time, and (2) open interest was capped, leading to limits on arbitrage capacity. (2) is fair. (1) is (in my view) a moot point: extremely volatile funding in either direction is undesirable from a trader’s perspective. I’d never suggest that +365% is a steady state rate; the problem rather is the fact that that value swings so high/low in the first place.
3. Since my post (3h ago), funding has flipped from -365% to +170%. This further goes to show that FRs on these markets are extremely volatile, and are likely to remain so for the foreseeable future with this market structure. This is a different game than crypto perps given the alternatives in TradFi and I would not expect web2 traders to tolerate this level of unpredictability in holding costs.
4. I’ve been quite vocal about this for a long time, but think it bears repeating that HL is a great product. It works great for crypto. I just don’t think it’s the right architecture to bring TradFi assets onchain. I believe the right model is to quote directly from the underlying market, more akin to a decentralized broker, than try to natively recreate limited orderbook liquidity from scratch onchain at the exchange layer. I am confident the market will eventually prove this thesis correct.
@Lighter_xyz Think the Lighter team did a great job communicating what transpired and how it was handled given chaotic events. The insane upside of points based on all Lighter’s hard work doesn’t come w/o risk. Looking forward to new products and innovations.
On Monday, we will announce the details of the mass compensation event based on that data and reported issues, likely a combination of stablecoins and points distributed in a fair manner. A smaller part of that compensation will also go to those affected by the unrelated LLP drop (post mortem on that tomorrow).
We are excited to be attending Token 2049 in Singapore and announcing the public mainnet launch of Lighter!
Read all the details of how our tech works and what the launch means for early and new customers:
https://t.co/fXcvfybIzk
As a Lighter user since day one, I have constantly been impressed with the team’s vision and execution.
Congrats to @vnovakovski, @manud_p, & Co. Grateful to be here for the ride.
gLighter
For far too long, poor user experience has been a friction to user growth and adoption. Layer3 team continuing to push the boundaries forward. Excited to use their Wallet product, which should usher in a new era of usability in crypto.