sam.rise

building my millisecond dream at @risechain, @risextrade, co-founder. perps enjoyoor

[sam.rise @sam_battenally]

We did it fellas!!!

RISE is now using more gas than Ethereum and all L2s combined

All from one app, @risextrade.

Yes, on mainnet. And no, we’re not spamming transactions for engagement. This is what fully onchain orderbooks demand

[sam.rise @sam_battenally]

@Quantzilla34 Great start

[sam.rise @sam_battenally]

Within #3, directional whales are particularly valuable. For every $1 of fees they pay, they’re generating 3x+ that in value through downstream activity (ballpark)

- They eat slippage on the take which attracts makers
- They imbalance the MMs exposure which either gets offloaded on that same venue through skew or hedged elsewhere

[sam.rise @sam_battenally]

@puterw0rld @iwantlambo

[puter 𓆏 @puterw0rld]

not interested in trading today with spacey ipo so here is pnl update from 10x challange on risex. they are adding pairs and seeing steady inflow of traders and liquidity in organic way which we like to see.

as they are still private mainnet, if you'd like an access code hmu and come join me in the books.

have a great weekend and don't rekt yourself silly

[RISEx @risextrade]

$VVV and $LIT are live on RISEx.

Trade with up to 3x leverage.

https://t.co/nR4pG4EPqD

[sam.rise @sam_battenally]

Yeah, so my distinction isn't regarding execution. In fact, there's a strong argument that the Lighter model has scope for better pricing.

However, if you're a large trader holding upnl, you're safer on Vari. Vari's model just biases the traders under stress. You're not getting ADLd. OLP holders absorb that risk

[sam.rise @sam_battenally]

One concern I do have with Lighter's style of RFQ is that it gives a false sense of security that the books can handle these larger sizes during volatility.

Lighters RFQ is very different to Variationals broker.

Lighters RFQ relies on the standard lighter risk engine, which relies on the liquidity in the book during volatility, and ultimately ADLs in the worst-case.

Variational is different. The variational risk engine has collateral with each individual user, they're essentially 1-to-1 p2p collateralised positions with OLP as the sole counterpart.

Why does this matter? Well, the failure mode for users is different.

On Variational, the worst-case is your winning position is auto-closed because Omni is unable to top up the collateral in your pool fast enough or OLP is insolvent.

On Lighter, the worst-case scenario is that your winning position is zeroed out because you've been ADLd in order to keep the protocol solvent.

However, this isn't the whole picture, there's no free lunch. It's essentially a game of shifting who holds the bag when shit hits the fan.

Orderbooks have many distinct benefits compared to brokers that I'm not highlighting here (we built @risextrade after all!). There are many trade-offs and broadly a very, very interesting design space right now.

[jez (equity perps era) @izebel_eth]

i've found lighter rfq works very well for chunking into positions, i opened up 5% of the oi for 0.3% slippage

[sam.rise @sam_battenally]

@yungtesh not sure what you mean, my post was in support of a broker model

[sam.rise @sam_battenally]

this sounds like such a valley wank, but day-to-day it actually matters quite a bit for a good product team

building an engine that can ship fast is as hard as building the product itself

[sam.rise @sam_battenally]

At RISE we're not frightened of making mistakes

We're frightened of moving too slow

[sam.rise @sam_battenally]

@BIT755 @chameleon_jeff @vnovakovski probably good advice tbh, but I'm a technologist at heart, this is my passion

[sam.rise @sam_battenally]

@hamanh_hl @risextrade cheers man!

[sam.rise @sam_battenally]

@confugen Isolated margin? Hmm, I'm surprised. I can't think why that would be challenging. Must be missing something

[sam.rise @sam_battenally]

@macdegods less is more imo

[sam.rise @sam_battenally]

@litocoen @seanlippel I think they're all competing honestly, just coming at it from different angles

But re lighter and vari, their models are very different
https://t.co/OhgqClxX3O

[sam.rise @sam_battenally]

One concern I do have with Lighter's style of RFQ is that it gives a false sense of security that the books can handle these larger sizes during volatility.

Lighters RFQ is very different to Variationals broker.

Lighters RFQ relies on the standard lighter risk engine, which relies on the liquidity in the book during volatility, and ultimately ADLs in the worst-case.

Variational is different. The variational risk engine has collateral with each individual user, they're essentially 1-to-1 p2p collateralised positions with OLP as the sole counterpart.

Why does this matter? Well, the failure mode for users is different.

On Variational, the worst-case is your winning position is auto-closed because Omni is unable to top up the collateral in your pool fast enough or OLP is insolvent.

On Lighter, the worst-case scenario is that your winning position is zeroed out because you've been ADLd in order to keep the protocol solvent.

However, this isn't the whole picture, there's no free lunch. It's essentially a game of shifting who holds the bag when shit hits the fan.

Orderbooks have many distinct benefits compared to brokers that I'm not highlighting here (we built @risextrade after all!). There are many trade-offs and broadly a very, very interesting design space right now.

[sam.rise @sam_battenally]

One big trade-off in the comparison here worth mentioning is that when trading on Vari, you're trading against a sole counterparty. That's a lot to trust.

Yes, your position is collateralised but you're at the whim of their pricing when you want to exit the position. It's not a free market of makers bidding for your flows with limit orders in an open book

[sam.rise @sam_battenally]

At RISE we're not frightened of making mistakes

We're frightened of moving too slow

[sam.rise @sam_battenally]

@puterw0rld pretty much what I imagined

[sam.rise @sam_battenally]

@0xBebis_ From the depths of a bear market? not a bad setup tbh

[sam.rise @sam_battenally]

Really feels like we are past the heyday of crypto podcasts

[sam.rise @sam_battenally]

@ideacasino @ngmi_xyz Well I do have a face for radio

[sam.rise @sam_battenally]

@MariaElenaRuiz9 A bit of selection bias there, yes