Wittgenstein

Rating the orthodox while chasing the fools

"If you are so smart, why aren't you rich? Turns out you are f***ing stupid"

[Wittgenstein @stocastico7]

@adcv_ pravi Uskrs je za nedelju dana

[Wittgenstein @stocastico7]

@__paleologo Two folks out in Balyasny + this post…correlation is not causation(?)

[Wittgenstein @stocastico7]

@__paleologo “The world belongs to the obsessed” (soprattutto quelli con un cognome strano)

[Wittgenstein @stocastico7]

@mert banger

[Wittgenstein @stocastico7]

@definikola contrarian view: fixed maturity loans would be a game changer

few

[Wittgenstein @stocastico7]

@ImperiumPaper @mediumfrequency The problem with independent ratings is:
- challenger rating agencies like Credora or Particula need to make money and are overindulgent in ratings
- S&P/Moody's are on the other end: limited upside in rating DeFi but huge reputational risk if they fuck up

[Wittgenstein @stocastico7]

@ImperiumPaper Yeah but you would need two separate tokens (one that you can only lend and not use as collateral, Euler does that IIRC) to avoid rehypothecation of the already pledged one. Also, there is no 2ndary market and you can redeem only if utilization allows that

[Wittgenstein @stocastico7]

@0xd1namit Ser there is literally only a couple hundred bucks of liquidity...not even at Christmas bingo stakes are that low

[Wittgenstein @stocastico7]

@ImperiumPaper @SkyEcosystem Please help me make it make sense: how on Earth can you spend $164m in 12 months? It can't be all for the "rebrand"

[Wittgenstein @stocastico7]

@Walter_Su11ivan @curiouscamilo @Kalshi @TroyTeslike Explain this then

[Wittgenstein @stocastico7]

@Walter_Su11ivan @curiouscamilo @Kalshi @TroyTeslike I'm saying it's disingenous to claim that "prediction markets are frontrunning Wall Street". It is much more lilely that Wall Street itself is trading on prediction markets to monetize what they know. Nothing to see here, 99% of tokens out there are moved by insiders.

[Wittgenstein @stocastico7]

@defiance_cr House edge is already there. Literally every market has the sum of all bet quotes > 1. Unlike casinos, the edge is captured by MMs, not Polymarket.

[Wittgenstein @stocastico7]

@ImperiumPaper Rating agencies do not have neither the knowledge not the interest in learning how DeFi really works.

Market is smol , there are at best 5 ratable protocols. No money to be made but huge reputational risk if you fuck up.

Hence, they overly penalize what they don’t understand.

[Wittgenstein @stocastico7]

@ImperiumPaper @nagakingg you gotta multiply those weights by 8% cuz they are calibrated on banking regulatory requirements (min 8% as per Basel rules). So 1250% x 8% = 100% capital to set aside to cover USDE exposure

[Wittgenstein @stocastico7]

@SebVentures @SkyEcosystem 75% x 8% is 6% reserve for crypto-backed loans. This is extremely low so either S&P considers that such loans are already overcollateralized or there is no reason to justify such a low value

[Wittgenstein @stocastico7]

@ImperiumPaper From a rating standpoint, the ability to invest reserves without incurring in losses is a crucial element to evaluate stablecoins.

If you are delegating buying and selling Treasuries to two nerds in a garage, the money you save will eventually come back to bite you.

[Wittgenstein @stocastico7]

@ImperiumPaper What report is that?

[Wittgenstein @stocastico7]

@stablewatchHQ I want it