Ayush

@avon_xyz previously research @isro engineer @0xPolygon

[Ayush @serayush]

update opus 4.8 didn't find anything major either but it covered more cases vs 5.5

[Ayush @serayush]

opus 4.8 max has been running pr review for 60 mins got derailed once initially. Codex gpt 5.5 reviewed the same pr in 10mins tho it didn't find any issues

[Ayush @serayush]

@hthieblot prolly cos the upside is easy to see while the future costs tradeoffs are harder to anticipate

[Avon @avon_xyz]

Dear Avon community, thank you for your continued support.

We’ve made the difficult decision not to proceed with our MegaETH deployment.

MegaVault will be wound down in an orderly manner. If you have funds deposited, please withdraw at your earliest convenience. There is no lock up and no penalty.

More updates to come soon.

[Ayush @serayush]

We already know monolithic money markets are as safe as their worst asset. The contagion is real. It’s hard to scale this in terms of different collaterals. Isolated lending markets are better suited for this. But sacrifice capital efficiency and fragment liquidity. By building vaults on top of lending markets (managed by curators) this is solved to an extent but this now reintroduces contagion risk at vault layer. So the lender’s risk profile is essentially the same if not worst. In the worst case they now trust a curator instead of DAO.

We designed avon considering these limitations. We built isolated lending markets on top of orderbook for aggregation. This design takes the right tradeoffs at each layer. Keeping risk isolated at the markets layer to avoid contagion while avoiding liquidity fragmentation with matching layer/orderbook. The only downside is that lenders now have to express their risk preference directly.

[Aave @aave]

Update on rsETH incident:

@LlamaRisk has published a report outlining the rsETH incident, the immediate actions taken, its impact on Aave, and potential paths forward.

All service providers have been working to assess the two potential bad debt scenarios on the Aave protocol.

Aave DAO service providers are also leading an effort with ecosystem participants to address any bad debt. This effort already has several indicative commitments from various parties and we are grateful for the strong support we have received so far.

We will share further updates as we have them.

In the meantime, the full report can be read here: https://t.co/jy3BHZCa7b

[Prince @0xPrince]

https://t.co/bn52saIyWd

[ddimitrov22 @ddimitrovv22]

❗️Important note to Solidity devs and auditors:

If you are using/reviewing Solidity versions 0.8.28 - 0.8.33, you can't trust `delete` on transient storage.

> The compiler has a Yul helper name collision - storage_set_to_zero_t_{type} doesn't distinguish persistent vs transient.

> Whichever `delete` the compiler encounters first poisons the cache for all subsequent ones of the same type.

> This is a high-severity solc bug, not an application bug. The Solidity looks correct. The generated Yul doesn't.

Check your compiler versions.

[Mark Worrall @infinitehumanai]

Reminds me of Peter Naur's classic 1985 essay "Programming as Theory Building" which argues that a program is not its source code. A program is a shared mental construct (he uses the word theory) that lives in the minds of the people who work on it.

If you lose the people, you lose the program. The code is merely a written representation of the program, and it's lossy, so you can't reconstruct a program from its code.

If you think of total software debt as technical debt + cognitive debt, then previously, we mostly had technical debt. Now with AI we have both.

Previously, when you built something, you accumulated technical debt but relatively little cognitive debt because you had to understand what you were building in order to build it.

In other words: the theory came for free as a byproduct of the work.

AI breaks that coupling. Now you can produce code without building the theory.

So you're now able to accumulate both kinds of debt simultaneously - technical debt in the code and cognitive debt in yourself. And cognitive debt is arguably worse because you can fool yourself into believing it doesn't exist.

Technical debt tends to show up in semi-obvious ways that we understand well as an industry.

Cognitive debt is more insidious - it means you're unable to even reason about the program (because you possess no theory of it) - which is what Naur describes as the "death" of a program.

[Ayush @serayush]

@trq212 this feature would be more effective in open code or something

[Ayush @serayush]

Fixed rate loans become attractive during a bear market but there is not enough borrowing demand onchain cos there is not much to do onchain. This is the reason why fixed rate onchain loans haven't taken off till now.

Fixed rate loans can work during a bear market if we get offchain borrowing demand.

[Ayush @serayush]

during bull market crypto natives prefer floating rate over fixed rate to earn higher yield. degens don't want to cap their upside.

during bear market crypto yields are not attractive so capital leaves to earn more offchain

[Ayush @serayush]

during bull market crypto natives prefer floating rate over fixed rate to earn higher yield. degens don't want to cap their upside.

during bear market crypto yields are not attractive so capital leaves to earn more offchain

[Ayush @serayush]

RWAs are already onchain, but the existing lending infrastructure doesn't handle the fact that RWAs have different risks, rules, and exit paths

[Prince @0xPrince]

https://t.co/PsjERaGdwK

[Avon @avon_xyz]

MegaVault crossed $1M in deposits within hours of launch.

Thank you for trusting Avon as the home of $USDm liquidity on @megaeth.

Early validation that the market wants a real-time credit layer and liquidity infrastructure.

[Ayush @serayush]

the fast chain is live!

[MegaETH @megaeth]

Introducing The Rabbithole — your MegaETH ecosystem frontend

Mainnet is now fully open to the public.

Rabbithole is how users:
→ Discover live and upcoming apps
→ Bridge and swap assets
→ Get notified of ecosystem events
→ More

Live now. Features and link below.

[Ayush @serayush]

onchain lending needs to evolve into a free market which can house all of finance this is the next obvious step for crypto

it started with speculation but lending will be the next frontier. We're already witnessing the growth of tokenisation next is lending infra optimised for rwa

[Avon @avon_xyz]

Avon is going live on @MegaETH.

RWAs are coming onchain, and most of the discussion still focuses on tokenization.

But tokenization isn’t what’s missing anymore.

What’s missing is the onchain credit market.

We built money markets. We still haven’t built credit markets.

[Ayush @serayush]

RWAs are great for passive exposure and yield farming but stocks/commodity perps are a better product for degens

[Prince @0xPrince]

Many people think vault-based lending is just a vault wrapper on top of a lending market.

It’s not. When a few allocators control the flow, they become part of the market itself.

They shape where liquidity sits, how rates clear, for better or worse.

That’s not underwriting. That’s discretion you have to trust.

xUSD was a reminder of how fast that can go wrong.

[Ayush @serayush]

Amazing article! does a great job at explaining the demand dynamic and the pain points in onchain lending

[Noah @TraderNoah]

https://t.co/0JVdN72sFU

[vitalik.eth @VitalikButerin]

In 2026, I plan to be fully back to decentralized social.

If we want a better society, we need better mass communication tools. We need mass communication tools that surface the best information and arguments and help people find points of agreement. We need mass communication tools that serve the user's long-term interest, not maximize short-term engagement. There is no simple trick that solves these problems. But there is one important place to start: more competition. Decentralization is the way to enable that: a shared data layer, with anyone being able to build their own client on top.

In fact, since the start of the year I've been back to decentralized social already. Every post I've made this year, or read this year, I made or read with https://t.co/BJ3J4TvNNu, a multi-client that covers reading and posting to X, Lens, Farcaster and Bluesky (though bluesky has a 300 char limit, so they don't get to see my beautiful long rants).

But crypto social projects has often gone the wrong way. Too often, we in crypto think that if you insert a speculative coin into something, that counts as "innovating", and moves the world forward. Mixing money and social is not inherently wrong: Substack shows that it's possible to create an economy that supports very high-quality content. But Substack is about _subscribing to creators_, not _creating price bubbles around them_. Over the past decade, we have seen many many attempts at incentivizing creators by creating price bubbles around them, and all fail by (i) rewarding not content quality, but pre-existing social capital, and (ii) the tokens all going to zero after one or two years anyway.

Too many people make galaxy-brained arguments that creating new markets and new assets is automatically good because it "elicits information", when the rest of their product development actions clearly betray that they're not actually interested in maximizing people's ability to benefit from that information. That is not Hayekian info-utopia, that is corposlop.

Hence, decentralized social should be run by people who deeply believe in the "social" part, and are motivated first and foremost by solving the problems of social.

The Aave team has done a great job stewarding Lens up to this point. I'm excited about what will happen to Lens over the next year, because I think the new team coming in are people who actually are interested in the "social": even back when the decentralized social space barely existed, they were trying to figure out how to do encrypted tweets.

I plan to post more there this year.

I encourage everyone to spend more time in Lens, Farcaster and the broader decentralized social world this year. We need to move beyond everyone constantly tweeting inside a single global info warzone, and into a reopened frontier, where new and better forms of interaction become possible.

[Ayush @serayush]

@0xPrince many such cases