@AerodromeFi introduced dynamic fees to concentrated liquidity AMMs. We examined 90 days of flow on Base to understand how it performs across market conditions and what it means for LPs and protocol designers. Our findings 👇
1/ On @base WETH/USDC, the 1bps pool wins calm-market flow. The 30bps pool wins flow in volatility spikes. Neither wins both.
@AerodromeFi 's dynamic-fee pool, which moves block-by-block with realized volatility, is competitive in every regime in 90 days of data 🧵
DeFi vaults are one of the cleanest signals in crypto,but not all vault capital is the same.
Some sectors attract sticky, long-term allocators. Others ride the wave and quietly unwind.
The patterns are becoming hard to ignore 👇
1/ Minor differences in swap fees can be a driving factor of volume across not just protocols and pools, but across different chains.
Our findings show that trade volume on major EVM L2s are indeed sensitive to changes in effective volume-weighted swap fees across DEXes.
A New Horizon: Tech Panel
Joining us on Nov 12th to unveil the future of our tech:
Stas Sușcov, CTO of Dromos Labs
Jean-Luc Shorey, Co-Founder of Vending Machine
Matias Nisenson, CEO & Co-Founder of Wonderland
Nam Chu Hoai, CTO & Co-Founder of Hyperlane
Bios👇
A New Horizon: Tech Panel Highlight
Introducing @JeanLuc_VM, Co-founder of @vm_economics
Over the past 6 months, Vending Machine has worked with @DromosLabs on dynamic fee optimizations, protocol design, and simulation modeling to enhance protocol efficiency & sustainability
Join us on Nov 12 as Jean-Luc and others explore our future tech, protocol designs, and more
AMM liquidity provision dynamics can be substantially influenced by tickSpacing parameter set when the pool is initialised.
We, at @vm_economics , explored this topic in this awesome thread 🧵
1/ tickSpacing is one of the more overlooked design parameters in concentrated liquidity AMMs.
It has material implications for protocol performance, influencing:
- Liquidity Distribution
- Expected LP Net Returns
- Trade Execution
Below we highlight some key findings from our analysis 🧵
1/ Clarifying things here - boost APR on validators is an important metric, although I think figure quoted by @InfraredFinance is slightly different.
They're comparing LSTs of BGT (i.e. iBGT, LBGT, stBGT) that earn staking rewards, which are sourced from BGT delegation rewards.
Science is a long-term game, so maybe the incentives should be too?
We've been brainstorming ideas with @bioprotocol around potential incentive flows to align stakeholders.
In the name of science.
https://t.co/GE5Hy6Zwzz
@InfraredFinance 's products, iBGT and iBERA, promise to take @berachain PoL to the next level, providing a combination of optimised consensus rewards and liquid BGT usage.
Check our article to find more about these amazing derivatives!
We've been cooking with @InfraredFinance on their economic system.
To celebrate the launch of @berachain PoL, we want to share what's going on under the hood.
If you like DeFi games, you will love this write up on Infrared's flywheels and benefits.
https://t.co/cGi2ZFDHvS
@berachain's $BGT emission formula (based on relative $BGT boost) is increasing concave down — the more boost you add, less each additional unit contributes.
Therefore one might ask, is it suboptimal to maximise $BGT boost on a single validator?
The answer might surprise you...
I’m generally of the opinion that locked tokens can be staked as long as the rewards from staking follow the same vesting schedule. Net benefit for the chain (higher economic security) and for the locked user (rewards from otherwise idle capital)
Brother @SmokeyTheBera come on, allowing VCs & early investors to stake locked tokens is the whole reason why I fought against other cosmos chains, I thought it would be different. Lived long enough to become the villain :/
At @VM_TokenDesign, we explore a new token launchpad for @bioprotocol BioDAOs tackling early-stage liquidity, fair distribution & capital efficiency. It offers flexible fundraising via live bonding curves & threshold auctions - giving BioDAOs tailored funding solutions.
.@VM_TokenDesign published a new report exploring funding models in Bio's new token launchpad.
Benefits to $BIO holders include:
🌱 Early access to new tokens
🧪 Token sink locked in liquidity positions
⚙️ Launchpad fees earned by the protocol
Live in Q1 ⌛️
Learn more ↓
1/ Bio Protocol is introducing a new approach to token launchpads. Existing models often struggle with early-stage liquidity, fair distribution, and capital efficiency. BIO’s launchpad provides the option of live bonding curves and threshold auctions to support new BioDAOs.
More info on the launchpad design here!
If you have thoughts or ideas, definitely share them in the discussion board (found in the quote tweet)
We are taking ALL community ideas onboard and keen to discuss
A new BioDAO funding mechanism is proposed for Bio's launchpad by @VM_TokenDesign
Designed to be more permissionless & autonomous vs. the current auction design, the new model is aimed at enabling:
> more BioDAOs
> more launchpad fees
> Bio treasury growth
Discussion below ↓