cozy

| one must imagine oneself cozy
| contributing to:
@premialabs | @edenaesthetix | @tomedocs |

[cozy @vec0zy]

made a portfolio site to show everything ive built/contributed to. this one was fun

[Kyan @KyanExchange]

On-chain perps moved $X trillion last year

Options are trading about 1% of that, which most of the timeline takes as evidence that options are a small cousin to perps.

The same ratio used to describe perps versus spot back in 2017, and that framing didn't age well.

[cozy @vec0zy]

Kyan coded

[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).

[cozy @vec0zy]

@Oluwaphilemon1 this literally isn’t your video

[Lumyo @LumyoDev]

Krystal farming is live.
Every trade counts.

[cozy @vec0zy]

@uttamsangwan we might have a winner

[cozy @vec0zy]

what do i name her ?

[cozy @vec0zy]

@lzminsky @Kalshi

[cozy @vec0zy]

@SilvXBT @hellojintao

[cozy @vec0zy]

@hellojintao everything rivian wishes it could be before it goes bankrupt

[cozy @vec0zy]

@sonishalendra61 so good

[Kyan @KyanExchange]

Delta on perps = 1.

Delta on an option = how much the price moves per $ of underlying:
A 0.5 delta call moves $0.50 when BTC moves $1, all else equal.

If you've been "long BTC" via perps, you've been at delta 1 the whole time. Options let you pick the delta you actually want.

[Lumyo @LumyoDev]

Anthropic added to Claude a new "ultracode" effort level to help you speedrunning your way back to Codex by one shotting your usage limit in one prompt 😄

[cozy @vec0zy]

@LumyoDev lmfaoooo

[Zoomer Oracle @ZoomerOracle]

Time to buy some puts on @KyanExchange

Try it out if you like options (small size for now)

[DeFi Dad ⟠ defidad.eth @DeFi_Dad]

Cofounder who left 7 years ago in 2019 prior to DeFi Summer makes hyperbolic statement about DeFi security and everyone screams fire because we are not serious people.

[cozy @vec0zy]

kyan coded

[weka @wekaaxyz]

My take is that options are inherently a sophisticated product.

They are undisputedly the best instrument for hedging, capital management, yield, and speculation, as proven by TradFi volumes.

Until about a year and a half ago, there were no onchain options toolkits sufficient enough for sophisticated traders.

Portfolio margin is an essential piece of the puzzle alongside things like execution and settlement on par with CEXs. That just didn’t exist before.

And while they can be a directional instrument, purely directional crypto-native retail traders lack the incentive to switch from perps to options.

Now that we have the tools that players with actual size need, it’s up to spreads and orderbook depth. We have the latency and risk engines to match CEXs.

It’s also about tenure and building institutional trust over time, but we’re closer to a giant leap in adoption than ever before.

If you’re interested in more stats to contextualize my comment, I wrote a piece on this topic that’s pinned on my profile.