CaliVeins ⛓️⊹

Vertical inference

[thiccy @thiccyth0t]

it feels like we are accelerating towards multiple singularities at once, not just technological, but capital, cultural, and political singularities also

tech -> agi
capital -> multipolar reserve assets
political -> dissolution of hegemony
cultural -> algorithmic NPCification

[KoolKrypto @koolkrypto223]

I would be shocked if this wasn't eventually reverted back in the future.

This does not end with $500m TVL worth of LLP buying $175m $LIT, it ends with a massive liquidity drain of LLP. This concept has been tried and failed before.

They even admit, "This will lead to a greater alignment between LIT holders and LLP holders and the LLP risk-adjusted returns will be enhanced as a result."

This is code for "we expect TVL to massively drop but volume to hopefully stay the same".

It's worth remembering that LLP still takes on a very important role in @Lighter_xyz liquidity, unlike HLP for @HyperliquidX. Combined with higher fees for MM/paid accounts, I think we're going to see noticeably worse tcost/execution and spreads coming with this change. In their defense, they were the best all in spread+fees in the industry, so this is likely just normalizing to the rest of the industry.

With @extendedapp and @etherealdex offering much more attractive yield bearing vaults (that can also be used as collateral), I don't see an angle where @Lighter_xyz TVL isn't halved soon after this change. The main reason I traded on @Lighter_xyz still was because I had excess margin for my LLP requirement. There is a 0% chance I'll be buying more $LIT to keep my money in LLP, I'll simply pull everything.

These changes make me meaningfully less bullish $LIT, and I now assume that this news was being front run in the recent dump, which is also disheartening. Objectively bullish for $HYPE and @extendedapp, @variational_io etc though.

Huge unforced error imo.

[venture anthropologist @0xBalloonLover]

the reason it took so long for the dual entity structure to become troublesome in crypto is because the vast majority of projects never intended to have a business

the misalignment only shows up once there is value beyond dumping tokens on retail

[venture anthropologist @0xBalloonLover]

there's another perps exchange where the team and other professional liquidity providers got the largest airdrops

but we're not ready for that conversation yet

[steven.hl @_stevenhl]

Portfolio margin is now live on mainnet! BLP is also accessible in the Earn page (deposit USDC for yield).

Keep in mind the borrow and lend limits are very small to start. You will need to make a new sub-account with at most $1000 USDC and 200 HYPE to test it.

Hyperliquid

[Ethereum @ethereum]

Today @jpmorgan, the world's largest bank by market cap per @WSJ, announced they're launching their first ever tokenized money market fund—MONY—on Ethereum.

The firm is seeding the fund with $100M of its own capital before opening to outside investors on Tuesday.

[Polymarket @Polymarket]

JUST IN: NASDAQ moving forward with 24/7 stock trading, expected to have 24h trading on weekdays by Q2.

[Alex @alex_hunter20]

Yeah my bad subtlety is that in isolated margin funding is added to the position’s margin, while in cross it’s added to the overall balance/equity.

That said, in our case it doesn’t change anything economically the impact is the same.

Even more bullish, don't have to close / reopen positions to compound

[ZachXBT @zachxbt]

@aaalexhl edgeX is linked to the MEXC cartel

also is my working theory on who attacked HL via Jelly Jelly / Zerebro

[Austin King @AustinKing]

Hyperliquid just announced Portfolio Margining

But I don't think most people understand how important this is

When it was introduced in TradFi it added $7,200,000,000,000 to the derivatives market in just a few years

The Historical Context:
This used to be illegal. In 1934 the government mandated margin minimums (downstream of people getting insanely levered during the 1929 crash).

Like with many regulations, this was well intentioned but it was oversimplified and ultimately choked liquidity causing even more volatility in the future.

Why?

Because you can't run delta neutral strategies in a capital efficient manner. It doesn't matter if you're hedged, you need a huge lump of margin for each leg.

Eventually the CME introduced Portfolio Margining in 1988 which substantially lowered margin requirements based on an actual analysis of the total risk of one's combined positions (so hedged positions net one another out risk wise).

The messed up part? This was gate kept only to broker-dealers and market makers with exchange seats for nearly 30 years until finally in 2006 retail customers got access.

So what does all this mean for Hyperliquid?

The impact on liquidity growth:
They key thing here to understand is simple: you get far more Open Interest and Volume per $ of margin in the system.

Basically with this live, we get a substantial liquidity multiplier for every new $ of margin entering Hyperliquid.

But even more importantly:
Portfolio margining is an essential tool used by any large scale liquidity provider in traditional finance.

Without this, it simply would be uneconomical for larger scale TradFi players to provide liquidity on Hyperliquid because the returns per $ of margin would be so much lower than alternative traditional exchanges that allowed portfolio margining.

Basically all I've done for the past 6 months at @Nomina is hop on calls with people who are interested in using perp DEXs for user research and when I've talked with larger TradFi funds one of the most obvious roadblocks was inefficient margining systems.

There is more work to be done, but with this rollout one of the biggest issues I repeatedly heard cited will no longer be a blocker.

Higherliquid

[B @itswithinme_]

To insulate yourself from AI risk you need to position yourself into a heavily relationship driven role. This will quickly become the new meta. Success will be determined by the depth of your relationships.

Anything functional will be delegated to a select few individuals who manage AI driven processes internally.

This always mattered for career advancement but it matters even more now.

[Ethereum @ethereum]

Ethereum is for shipping.

Here are 29 things the Ethereum ecosystem launched, upgraded, and announced over the past month.

0/ Fusaka, Ethereum’s latest upgrade, went live on December 3rd. Fusaka included 13 Ethereum Improvement Proposals (EIPs) that boost blob capacity, improve user experience, and introduce data availability sampling to securely scale the network and set the stage for future L1 upgrades.

Ethereum is securely scaling.

1/ @aave introduced the new Aave App, a smarter interface for saving and interacting with the protocol.

Better UX and clearer pathways into DeFi help bring more users onchain and strengthen the financial layer built on Ethereum.

2/ Devconnect (@EFDevcon), the largest Ethereum gathering of the year, occurred in Buenos Aires, Argentina. It marked the ‘First Ethereum World’s Fair’ with 75+ projects demoing on site and 20k+ registrants, making it the largest Devconnect ever.

3/ @Amundi_ENG, Europe’s largest asset manager, launched the first tokenized share class of an existing euro-denominated money market fund on Ethereum.

4/ @AbstractChain announced that @Disney coming to @Cryptoys, bringing iconic brands and their millions of fans onchain.

5/ @jpmorgan's USD deposit token JPMD is now live on @base. Institutional settlement on Ethereum L2s demonstrates real-world adoption and builds bridges between traditional finance and public infrastructure.

6/ @ElizaEcoFund, an open-source framework for deploying AI agents, migrated its native $ELIZAOS token to Ethereum. Teams choosing Ethereum for AI-agent infrastructure highlights Ethereum’s strength as a programmable base layer.

7/ The @EthereumFndn @EFDevcon team announced that Devcon 2026 will be hosted in Mumbai, India.

8/ The Ethereum Protocol Advocacy Alliance launched as a coordinated policy effort by @aave, @AragonProject, @CurveFinance, @LidoFinance, @sparkfinance, @graphprotocol, & @UniswapFND. The Alliance aims to protect Ethereum’s neutrality and ensure global regulation supports open, permissionless innovation.

9/ @Starknet activated S-two, a high-speed prover now securing every Starknet block. Faster proofs strengthen the rollup ecosystem and advance Ethereum’s ZK future.

10/ @aztecnetwork released Ignition, a fully decentralized L2 consensus layer that advances private, programmable onchain activity on Ethereum.

11/ The @ethereumfndn introduced the Ethereum Interop Layer (EIL). EIL aims to make Ethereum’s L2 ecosystem feel like one unified chain, without new trust assumptions.

12/ @usxcapital, a privacy-preserving stablecoin on Scroll and LayerZero, went live. It brings gasless, private transfers and new stablecoin rails to Ethereum L2s.

13/ @aplus introduced a turnkey solution for banks to issue GENIUS-compliant stablecoins on Ethereum. This makes it easier for smaller institutions to issue stablecoins and compete collectively with larger players in the market.

14/ @nillion is extending its Blind Computer infrastructure to Ethereum, unlocking new possibilities for decentralized computation without revealing underlying data. As Ethereum becomes an ecosystem of many chains that settle on the L1, Nillion provides shared, decentralized, private computation compatible with both L1 and every L2.

15/ @StartaleGroup released the Startale App, a SuperApp for @soneium's rapidly growing network on Ethereum. With 10M+ weekly transactions and 90K+ daily users, it offers a clean, secure way to explore the ecosystem.

16/ wARS, a new Argentine peso–pegged stablecoin, launched on Ethereum, @Base, and @world_chain_, making it easier to move local value in Argentina and latAm to the blockchain.

17/ @1inch launched 1inch Aqua, a new liquidity protocol designed to defragment liquidity for market makers and improve execution across the DeFi ecosystem.

18/ @renegade_fi went live on @arbitrum. Renegade aims to make DeFi more private. Trade privately with dark pools, zero MEV, slippage, or price impact.

19/ @RobinhoodApp_EU tokenized nearly 1,000 stocks on @Arbitrum, for their EU app.

20/ Japan's largest idol & fashion festival @idolrunwaycolle is going onchain via IRC APP—developed by @YOAKEofficialEN, powered by @record_protocol on @soneium.

21/ Ethereum hit 34,000+ TPS, a new all-time high, showing that rollups are scaling Ethereum in practice and proving the network can support global, real-world demand.

22/ The @sharexyz app launched on @base and Ethereum. It’s an easy way to share transactions, follow any wallet, and earn rewards for trades.

23/ @eigencloud launched EigenZero with @LayerZero_Labs, bringing a decentralized verifier network backed by cryptoeconomic guarantees.

24/ @Celo and @ensdomains introduced Celonames: human-readable identities make it easier for everyday users to engage with Ethereum applications on Celo.

25/ @Uniswap launched Continuous Clearing Auctions, enabling permissionless token auctions with automatic liquidity bootstrapping, designed to curb unfair launches.

26/ @Spire_Labs launched Full Send, a free RPC with MEV protection and safe inclusion guarantees. Better user protection improves trust and reduces hidden costs for Ethereum users.

27/ @graphprotocol announced Amp, a blockchain-native database for building and remixing smart-contract datasets locally. This improves data access for developers and expands Ethereum’s data tooling ecosystem.

28/ @DefiLlama shipped LlamaAI, enabling prompts to generate charts, analysis, and insights. Better analytics deepen transparency and understanding of onchain financial activity.

[sysls @systematicls]

If you strip all the algebra away, the key points are:

1. Sharpe decomposes:
a. Sharpe ≈ IC × √N
b. IC = skill
c. √N = number of unrelated bets

2. IC is correlation:
a. Between your predictions and what actually happens, after adjusting for how volatile each stock is.
b. It’s a clean, scale-free measure of forecasting skill.

3. IC is intensive:
a. It doesn’t care how many stocks you trade.
b. It’s “how good is each bet”.

4. √N is extensive:
a. More independent names -> higher Sharpe, but with diminishing returns (square root, not linear).

5. Research program:
a. Clean the returns with a factor model to get idiosyncratic returns.
b. Normalize predictions.
c. Regress risk-adjusted returns on risk-adjusted predictions → slope = IC.
d. Build models to maximize IC over time.

6. Separation of concerns:
a. Signals: maximize IC.
b. Portfolio & execution: maximize TC, i.e., how much of that IC you actually turn into PnL.

[smartestmoney.hl @smartestmoney]

Every billionaire in the world calling @chameleon_jeff and I to get their companies listed on the House of Finance @HyperliquidX

24/7/365 Internet capital markets baby!

Hyperliquid.

[zipper @0xlykt]

Why am I so bullish on farming @tradexyz ?

- No points program (yet). People are much less confident burning fees to farm something without a points program

- I strongly believe that equity perps are a superior instrument compared to 0DTE options. Retail wants to slam high delta, they don't care about IV or the rest of the greeks. I share similar views to @izebel_eth on this

- @unitxyz team has had massive success so far in bringing spot to Hyperliquid. I believe they are capable of bringing the same success to HIP-3 pairs.

- I believe HIP-3 will be a major criteria for the next Hyperliquid airdrop, similar to how spot trading (HIP-2) was massively rewarded in the first airdrop.

[Grail.eth @graildoteth]

18x oversubscribed @megaeth sale. Looks like it's going to be > 20x by the end of the day. Haven't seen 1B+ commitments into ICOs since the OG days of the 2017 wave! What a narrative win by the team who have managed to pull this off.

Of course I put in my own max bid of $186,282 with the 12 month lock option.

Picture proof of commitment:

If I get some size in, I'll be one of the long term community members joining the ecosystem. I don't think you have a snowballs chance in hell of getting any allocation without committing to a 12 month lock.

Bullish on the long term hold and what applications a working real time blockchain is going to unlock. No brainer to show commitment with a 12 month lock for those who want a chance to get in.

Will also soak up some MegaETH nfts. Won't be a factor in allocation now alas (snapshot already taken and I never had any), but I suspect going into the TGE this will count for something.

Seeing how things are playing out, I feel good betting on this entire ecosystem over 2026 and getting involved there.

Will see what sort of innovative applications I can back as an investor over the next year.

I see the MegaETH eco as the ecosystem worth focusing on.

[shadow @0xmev]

What we are trying to do (whether we succeed or fail) is a small but true step function evolution in finance.

Perpetual equity futures are a novel financial instrument. One which, we believe, have the potential to disrupt capital markets as stablecoins did to the payments space, or as prediction markets did for binary events, notably politics.

Yesterday we witnessed a glimpse of what this could become.

Toward the end of the weekend, XYZ100 persisted a small move to the upside. Smart traders bid (above the oracle price), willing to pay the funding over several hours which they bet (correctly) would be exceeded by the returns of a higher fair after external markets opened.

Friday closed ~$25,360. On Sunday 4pm est, the most accurately priced venue in the world may have been XYZ100 on @HyperliquidX at ~$25,460.

CME was the first traditional venue with a correlated asset to open 1-2 hr later. It opened +80 bps from prev close, confirming the direction and extending the move discovered over the weekend.

Obviously this discovery has been minuscule thus far - not yet significant to affect other markets in any real sense - but it's exciting to see the direction of something so highly anticipated @tradexyz There's a long road ahead.

Perpetual Renaissance.

Hyperliquid.

[thiccy @thiccyth0t]

https://t.co/pDxfCm70rE

[octra @octra]

oh btw, we recently did an oversubbed $2m echo sale, bringing the total raised to $8m

no need for fancy designed announcements, thanks to our friends @z00m3rf13d, @comfycapital_, @gametheorizing, @devops199fan and of course @cobie

check your emails if you participated
gmonad

[sysls @systematicls]

Nothing really happens: Polymarket edition.

You could probably earn a nice stack by just buying NO across the board; of course if you do so with markets that already have expensive NO, you introduce more variance to your strategies, but that's the idea of a statistical edge; AND that's where its the most discounted.

It's not a sure thing, but if you can apply across all markets, and as N gets bigger your sharpe will increase.