Madhu Subbu

shape rotator

[Madhu Subbu @madhu_sub]

Lógos is building the Street's most efficient Prime Brokerage Stack - in terms of capital, people and technology.

It's been 2 months since launch, and I just stood up the MVP for the first customer (Equity Finance for Int'l). Here is what it cost to get to this point: https://t.co/313kl1Ji8k

Some observations:

1. Quality emerges from process and iteration, not tokenmaxxing. Setting up the right process amongst your agents and getting them to converge on the code is how you build quality products. In Lógos' case the build agent (Bob), reviewer (Sherlock) and adjudicator (Judy) iterate for as long it takes to agree.

2. You can enforce much more rigorous processes for agents than you would with humans. Dev workflows need to account for human nature and fallibility - they get fatigued, annoyed, or need to sleep. But Agents will happy grind away on every comment forever until as many bugs/corner cases are discovered and fixed. Case in point: Swaps valuation logic took 13 iterations and 43 review threads.

3. Better models like Fable can reduce the number of iterations until convergence, but dont seem have a big impact on the quality of the outcome. You save time on the heaviest tickets, but the added expense may not be worth it.

The goal is to build an AI native Prime Broker, in the truest sense of the word. After Engg the next frontier is Operations. More to come.

[Madhu Subbu @madhu_sub]

The wholesale funding markets will become a lot more efficient, which should bring down your margin rates/short financing rates for you (assuming buyside). Here is how.

Today funding markets (stock loan, repo) operate on a one day tick. i.e. the shortest amount of time you can fund an asset is one day. If you can move assets and cash 24x7, you can fund ultra short term (only for the amount of time you need the cash - say a few hours until someone pays me). Will be cheaper than daily financing. Velocity of money/assets in the system goes up, so will liquidity.

Asia (holding ~3.5Tn in US Equities) can all of a sudden participate in the funding markets (they couldn't before since no delivery was possible during their time zone). A lot more supply comes online.

Im building the industry's first 24x7 Prime Broker that can do ultra short term financing: https://t.co/XnHpcgNvah

Are you open to a chat?

[Madhu Subbu @madhu_sub]

Lógos Markets is building a product that enables you to borrow against your private shares, just like a margin loan offered by your broker. learn more about us: https://t.co/3QV2DCgTcP

Looking for pilot users who can help shape the product. If you're interested pls DM me.

[Madhu Subbu @madhu_sub]

Meet the autonomous engineering org at Lógos Markets.

There are two radical experiments underway at Lógos:

What we are building: The industry’s first 24x7 Equity Finance platform for traditional digital assets - entirely using smart contracts operating on a single tokenized ledger.

How we are building it: A fully autonomous engineering team, guided by a comprehensive domain ontology, with specialized agent roles and harnesses, and a development process with checks & balances that produces robust, high-quality software.

The team is becoming a valuable product in its own right: specialist agents that combine deep technical expertise with an equally deep understanding of the business domain (thanks to a comprehensive ontology).

In the future you can hire the Lógos agentic team on an hourly basis to build for you. It will ship in a docker container that runs in your infrastructure, using your tokens, pushing to your repo. No data egress, except for usage metrics. Stay tuned! (DM me if you’d like to see a demo)

Here is a summary of team activity over the past month: https://t.co/313kl1Ji8k

p.s: SRE and CISO agents are on their way.

[Madhu Subbu @madhu_sub]

You will first have to borrow the shoes to sell short. In public markets this supply largely comes from hypothecated inventory held by your broker (i.e. you consumed margin, your broker hypothecated a potion of your portfolio as collateral)

No such supply exists in private shares. Besides - transferring private shares typically requires board approval, and many private firms even charge a fee ($5000/txn). So the private firm in question can just decline to facilitate that trade.

[himug-lamuh @HimugLamuh]

people are making memes of @ZackKorman now

[Madhu Subbu @madhu_sub]

Today we're launching Logos in alpha.

Logos is the industry’s first true 24x7 Equity Finance platform. Trading, settlement and cash are rapidly becoming 24x7, but financing markets are not ready. Logos is built for this inevitable future from day 1.

As a first use case: Logos will enable international holders of US Equities to directly participate in the US market - whether to lend their holdings to US institutional borrowers, or cover short positions by borrowing from US agent lenders and brokers. This means Asian institutions can access USD liquidity in their time zones for the first time.

Logos is built on the Canton stack - where every asset is tokenized on an internal ledger, and every trading workflow is captured as a smart contract. This means the platform is truly asset agnostic and can map to multiple sources to truth across traditional and digital assets (DTCC, BTC blockchain or FedNow). Equity, BTC, Treasury, stable coin, cash become interchangeable legs of any financing trade.

Another industry first: continuous mark to market on every trade on a 24x7 basis, enabling ultra short term financing (for as little as an hour)

Equally innovative is how Logos is being built: The platform is developed end-to-end by AI agents, each operating under a defined persona, a specific mandate, and explicit guardrails. Material decisions are escalated to a human.

Every action is logged, making our development process audit-ready by construction — each change traceable to the intent behind it.

Logos will become the first financial institution built and operated entirely by AI agents, under the supervision of high-agency humans. You will hear directly from our AI agents at work, and even watch curated conversations between them on X. Stay tuned!

https://t.co/XnHpcgNvah

[Madhu Subbu @madhu_sub]

Great product, just when I needed it: https://t.co/PVW6zBitfN. thanks @bryantchou

[Fermat's Library @fermatslibrary]

According to Adam Smith the division of labor emerged because of our human tendency to trade/exchange goods and services. Humans naturally seek to trade what they have for what they need or want.

This chapter from "The Wealth of Nations" is worth reading: https://t.co/N0Mseprknf

[Madhu Subbu @madhu_sub]

The cutting edge of practical applied physics is not in space tech or nuclear energy - its in semiconductor manufacturing https://t.co/kap6a9kWnt

[Madhu Subbu @madhu_sub]

@elonmusk Willing to pay 3x that for NO ADS

[Jonylevin @jony_levin]

A model for disruption. Find a premium service that should be the basic version for everyone. Find a part of the unit economics that can improve. Build the universal platform.

[Madhu Subbu @madhu_sub]

@sama Everything @ConceptualJames has written

[Madhu Subbu @madhu_sub]

@alaskaair I’ve been trying to get someone on the phone for 2 days with no luck. Over 2 hours wait every time with no response. Can someone help? My flight is in 72 hours.

[Balaji @balajis]

So:
🔍 we can prove a transaction is positive-sum if we observe the reserve price
🥷 but before crypto, reserve prices mostly unobservable
📊 after crypto, we'll get order books for everything
👁️ & order books make reserve prices observable
💡 prove more transactions positive-sum

[Balaji @balajis]

One of the biggest conceptual barriers in economics is proving to people that voluntary trade is positive sum, that one person's gain need not be another's loss.

Observable reserve prices could thus be a powerful tool. Because you could graph the *buyer's* gains from each trade.

[Madhu Subbu @madhu_sub]

@jony_levin People that contribute to open source tools with leverage - e.g. linux kernel - have enabled tremendous wealth creation in society. We stand on the shoulders of giants.