aiz

Web3 & AI research

[aiz @aizverse]

My honour to have our favourite @cz_binance RT my random post. A tiny trophy after entering crypto for years.

[CZ 🔶 BNB @cz_binance]

Gossip tweet. Saw a couple of posts on this topic:

If you didn't know, Jeff (HL) was part of the YZiLabs (Binance Labs back then) incubation season 1 cohort in 2018. 🤣

Unfortunately, that project failed. YZiLabs did not recoup any of its investment. It happens.

I did not interact with Jeff much back then. I forgot about it. I only learned this from Ella early this year.

I was suppose to have a call with Jeff a few months back, but I missed it due to a schedule error on my part.🙏 And we never had a chance to reschedule it.

YZiLabs, to the best of my knowledge, was not given and does not own any investments (equity or token) in HL.

Regardless, we support all builders! 🤝

[aiz @aizverse]

@gayau_eth @saylor Yes It will flush when people thinks this is $mstr

https://t.co/LPrPkRNnNe

I don’t believe its mstr. it’s just other institutions twap selling

Not likely they will sell nor buy at this level

[aiz @aizverse]

not sure what btc og Garrett Lin wanna do with $币安人生 buying 60mil usd pump it from 0.04 to .85 for 20x with his cluster wallets …

[aiz @aizverse]

All $hype $zec $near $cards all pretty good from March.

But then you have lab:native ….

[aiz @aizverse]

Kind of a interesting meme for a while for $boutywork

Failed pumpfun bounty because of miss spelling . Indian man got his money

[aiz @aizverse]

All $hype $zec $near $cards all pretty good from March.

But then you have lab:native ….

[aiz @aizverse]

@meko_ethh @InsilicoTrading ?

[aiz @aizverse]

Hope the idiots keeping the comments

[𒐪 @SHL0MS]

i just generated an image in the style of a Monet painting using AI

please describe, in as much detail as possible, what makes this inferior to a real Monet painting

[aiz @aizverse]

@rootlets_nft haven't got any...

[aiz @aizverse]

> Meet Space $SPC
> rugged 15mil in ICO
>,airdrop farmers are still doing testnets

[Pranjal Bora 🧭 @Crypto_Pranjal]

New Free Testnet Project: Now Live on Open Beta

Meet @intodotspace

Space is the first Solana-based prediction market where you trade outcomes with leverage, similar to futures trading.

- Raised $23M total funding
- $3M seed + $20M public ICO

Space Open Beta is now live.

✅ Here’s how to join:

1. Go to: https://t.co/1B5yLdmttF
2. Connect your Solana wallet (Phantom works)
3. Enter referral code: JKVYGNYA
4. Open profile (top right) and connect X

Now head to the Faucet page and claim all available tokens (USDC, SPC, SOL). You can re-claim every 24 hours.

Then go to Markets and start trading predictions.

Note: It’s testnet, so expect bugs.

Currently facing some issues with X connection and faucet claims not going through properly. Should be fixed soon.

[aiz @aizverse]

@GBtradecoins @SuiPlay @PLAYTR0N @SuiNetwork Everyone knows it’s just the same chinese machine you can buy from china yet we all fall for the 5 dollars airdrop 🥀

[DiamondLe.sui🥼|💧 @GBtradecoins]

I paid $638 (X4) for @SuiPlay. Event attendees got it FREE. I never refunded. I held all 4 units. I defended this project. Now I'm sitting here feeling like the biggest fool in the room.

[aiz @aizverse]

Everyone is betting on Polymarket

>some people earn by vibe coding quant shit , didn’t work, write articles for fake views

>this guy manipulate temperature and the market with a fucking hair dryer

> problem solving using first principle

[@aaronjmars @aaronjmars]

holy fuck, a hair dryer at a Paris airport broke Polymarket weather markets & made someone $34,000 richer

- polymarket was settling Paris temperature bets on a single Météo France sensor sitting near the Charles de Gaulle runway perimeter - basically unguarded

- the guy bought the long-shot outcome (like "22°C" when everyone expected 18°C) for pennies, since nobody thought it'd hit

- then he walked up to the probe and briefly heated the air around it with a portable heat source, spiking the reading just long enough to register as the daily max

- temperature snapped back to normal in minutes, the market resolved in his favor, and he cashed out - twice, on April 6 and April 15, before Météo France caught on and filed charges

hyperstitions.

[aiz @aizverse]

@cryppimagic mine was never open in the box...
should have got another one for free

[aiz @aizverse]

Holders are growing.
People took profit
$Asteroid looks good here

Billion

[aiz @aizverse]

First it was crypto vape 2 earn.
Then it’s AI cannabis vape.

[prayingforexits 🏴‍☠️ @mrexits]

AGI is here it’s just not evenly distributed

[0xngmi @0xngmi]

The attack was
1. North Korea figured out which RPC providers LZ was using
2. They compromised two of the providers to make them return fake data
3. DDoSed other providers to shut them down, forcing LZ to use the bad ones

AFAIK I was the only one who actually called it

[Duo Nine ⚡ YCC @duonine]

🚨 I don't think people realize how bad things are at @aave right now.

All core markets are at 100% utilization, that includes $3 bil in USDT and $2 bil in USDC stuck!

That means you CAN'T WITHDRAW your money!

A long post on why and how we ended up here.

When the rsETH exploit happened and AAVE incurred bad debt, whales like Justin Sun, MEXC exchange, and others immediately withdrew billions from AAVE.

This instantly drained all available liquidity in key core markets like ETH, USDT, USDC and so on. Those first to withdraw got out, laggers got trapped.

Initially, the ETH market hit 100% utilization, meaning you could not withdraw your ETH from AAVE.

Worse, this also means the protocol can't process ETH liquidations should ETH price fall/crash. If you can't sell any ETH, you can't liquidate to cover debt obligations.

That means the risk of more bad debt incurred by AAVE is increasing the longer its markets remain stuck.

Nevertheless, users can still sell at a minor loss the aETHwETH tokens on Uniswap or similar aggregators. That exit door is the last one remaining for ETH depositors on AAVE.

The same cannot be said by depositors of USDT and USDC. They are stuck.

That's because AAVE lost over $6 billion in liquidity in the past 24h. As whales took out their money, USDT and USDC also hit 100% utilization.

These markets are now also stuck with money locked. Panic is spreading and desperate times call for desperate measures.

Some users decided to borrow against USDT/USDC and exit via other markets at a 10-25% loss (90-75% LTV). Basically you borrow GHO/DAI/USDe against your locked USDT/C.

But as more liquidity leaves AAVE, more markets get to 100% utilization and get locked/stuck due to low liquidity. This is quickly cascading across all available markets.

Luckily the crypto market was rather flat today so liquidation risks were marginal, but if things change there are billions in stablecoins and other assets locked on AAVE that can't process liquidations = more bad debt for AAVE.

If users or related protocols that are stuck need access to their money to prevent liquidations or other critical function, they have a huge problem on their hands.

Plus, nobody wants to deposit (or provide liquidity) in these markets now since your ETH, BTC, USDC/T could be stuck there for who know how long.

As soon as any available liquidity is made available, it is instantly taken out by bots fighting to get out. As I wrote this I saw 250k in liquidity on USDC vanish in seconds.

Then there is the bad debt question.

There's over $200 mil in bad debt incurred by AAVE via rsETH that's like a hot potato. Nobody knows who will eventually pay this bill.

If you didn't remove your assets from AAVE, you risk receiving at least part of that bill in some form. Not having access to your money is part of that risk too.

Contagion is also extremely high.

Many protocols and apps rely on AAVE for their earn mechanics. These protocols and their users are stuck too and may be forced to incur bad debt with no fault of their own.

October 10th was a CEX driven crash, this is a DeFi risk mitigation failure of epic proportions.

AAVE should have never onboarded rsETH as a collateral asset, at least not to the size of hundreds of millions that allowed the hacker to walk away (i.e. borrow) over $200M in ETH after posting fake collateral.

Rumors on X are saying rsETH was onboarded by AAVE due to a conflict of interest (lobbying) by a given service provider. If true, this is a major failure of its governance structure (nothing new).

The folks at @KelpDAO who manage rsETH also have a tough decision to make on who will actually pay for the $200M exploit. AAVE users? L2 rsETH users? Everyone affected gets a haircut to account for the loss?

The AAVE team and its founder, Stani, have been quiet for over 20h since the exploit after initially announcing the rsETH market freeze.

They have a pretty big problem on their hands since the whole protocol is at risk right now. Trust is already lost as AAVE is bleeding billions in TVL to the level of hitting 100% utilization on all core markets.

Maybe some key actors in the space will step in to provide liquidity to stabilize the markets on AAVE before this gets even worse.

I got lucky to get out of AAVE early when I first saw this. I also removed all assets from DeFi and will not touch any protocol in the next few weeks. Too much risk for a few percentage points in yield.

If you found this informative, like, share, and follow @duonine

[monetsupply.eth @MonetSupply]

with stablecoin markets beginning to become illiquid, the situation is now entering a more dangerous stage imo

to break down the driving factors:

the ETH market is ~16.5% backed by rsETH, and rsETH backed loans could see up to 10-15% haircut in emode if losses are socialized equally on mainnet & external chains, leaving 2-3% residual haircut for ETH suppliers after wiping out umbrella

ETH suppliers are naturally incentivized to get out ASAP to avoid this, so utilization is pinned at 100%, and borrow rates are not high enough to incentivized repayment of unrelated LST loops (wstETH, weETH) to free up liquidity

because it is impossible to withdraw ETH, users borrowing stables like USDT against ETH collateral cant unwind their position even when the rates for stablecoin borrowing start to spike, which severs the typical incentives scheme keeping these markets healthy

now we have 2 unhealthy incentives based on the markets becoming locked at 100% utilization

1) ETH holders cannot unwind their positions to maintain healthy LTVs, and liquidators cant withdraw/sell collateral to close positions atomically, meaning that ETHUSD price drop could potentially cause bad debt

2) users supplying USDT have a perverse incentive to max-borrow other stablecoins as a way of exiting, the position has positive carry (for now) so the optionality has low cost, while if conditions worsen they can get at least 75% of their position value out of the market

bottom line is, for these pooled/rehypothecated lending markets to function properly, liquidity must be preserved AT ALL COSTS. recent slope2 changes nerfing Aave's max borrow rates are having a negative effect and significantly increasing the risk of cascading market failure

[aiz @aizverse]

You cannot retire with $1M

- deposit $1M into DeFi
- earn around $7k-$8k per month
- move to Thailand or some shit...
- spend max $5k per month
- live peacefully like a king
- off-ramp through neobanks
- live off the yield tax-free

> until exploits came

Kim’s stopping you

[Usopp @Usoppu]

You could retire with $1M

- deposit $1M into DeFi
- earn around $7k-$8k per month
- move to Thailand or some shit...
- spend max $5k per month
- live peacefully like a king
- off-ramp through neobanks
- live off the yield tax-free

What's stopping you?

[aiz @aizverse]

@CryptoTomYT Free