cooked

[cooked @de3pfried]

i got wiped out on 10/10 as many of my friends did so im building @hznfi to fix this

we need leverage without liquidations

a new kind of defi primitive im calling "optionals"

leverage built on options instead of debt

[cooked @de3pfried]

nice

[Vlad Tenev @vladtenev]

Somewhere beyond the horizon, an idea is becoming a destination.

[cooked @de3pfried]

@hznfi premiums > margins

[cooked @de3pfried]

@0xmikedee @hznfi P + N = 1

[cooked @de3pfried]

@hznfi P + N = 1

[cooked @de3pfried]

@kyle definitely interested in building out pair trading in the future on @hznfi

lets cook

[cooked @de3pfried]

perps = perpetrators

predatory by nature

[cooked @de3pfried]

the entire perps industry is based on fucking you over and over until you are homeless and bleeding in the streets

it doesnt have to be this way

[vitalik.eth @VitalikButerin]

Building index-tracking assets on top of options instead of debt

https://t.co/gFNEvCbHct

What if the use options as the base of defi, instead of CDPs and liquidations? So instead of extreme price movements creating a sharp and global "you get liquidated" effect, instead your exposure to the index diverges quadratically from your preferred exposure in a smoother way?

A key benefit is getting rid of the need for instant oracles, and instead making everything work on top of "slow oracles" (ie. the type that prediction markets use)

This design has a significant downside - the need to do regular rebalancing - and an open question of whether and how this rebalancing can be made slippage-resistant enough. But it's worth considering and trying IMO. I would feel much safer holding algostables inside something like this, than in something that depends on an oracle that has to give real-time answers (and therefore could be tricked into giving wrong real-time answers with no time for human recourse).

[cooked @de3pfried]

2023 ordinals
2026 optionals

[cooked @de3pfried]

(3,3^3)3