A difference between Tom Lee and Saylor is that Tom has low debt.
Another is that Tom is getting involved and invested in Ethereum's app layer and core dev. Whereas if you own BTC, you can't do much to help your own investment, besides cheerlead.
Alchemy of 5%, 8%, LFG BMNR
Recording an idiots guide to formal verification today with @dhsorens at the @ethereumfndn.
AI is writing more code than ever, formal verification is how we trust what it writes, and Ethereum could serve as an openly verifiable attestation layer for all
important code.
This Vitalik's 2016 Reddit post gave core idea for Uniswap:
'Let's run on-chain decentralized exchanges the way we run prediction markets'.
Hayden then built it and DEXs became core infra of DeFi where price discovery happens, LPs farm, and ppl can trade without KYC.
What if the new idea by Vitalik becomes a new Uniswap? Or in this case Aave?
He proposes DeFi without liquidations, built on options instead of debt.
How it works in practice:
Today on Aave you deposit 1 ETH at $1.5k and borrow $1k USDC.
If ETH dumps too much (likely lol), a bot sells your ETH with a penalty.
The whole system depends on real-time oracles being correct every second. Late liquidations incur bad debt.
In Vitalik's design your 1 ETH splits into two tokens: a 'stable dollars' token and an 'ETH upside' token.
- Borrowing: sell the stable token for cash, keep the upside token.
If ETH dumps you just lose the upside. No liquidation bot and no penalty
- Stablecoin: hold the stable token.
Worst case it slowly turns back into ETH rather than depegging overnight
- Leverage: buy the upside token. Max loss is what you paid and you can't get liquidated
It works like buying a call option: you pay once upfront, that payment is the most you can ever lose, and a temporary price wick can't liquidate you since only the price at expiry counts.
The two tokens always add up to 1 ETH, so the protocol can't end up with bad debt.
And the price oracle is only checked once at expiry so slow prediction-market style oracles are enough, no real time price feeds.
Since positions expire you have to roll them. But this creates new DeFi products like Pendle-ish vaults that automate the rolling for a fee.
This design removes cascading liquidations from DeFi lending.
Gotta keep an eye on it.
the rate of idea to production in crypto is faster then ever, what used to take months now takes days and what used to need PHDs now just needs determination.
it’s been cool to see (and even use) things like https://t.co/BDC0Um5hc8 by @austingriffith that assist with that
excited for more ai dev tooling like it so that we can all one shot vitalik ideas
agency (+ safe tooling + ai driven audits/simulations + good feedback loops with users + love) is all you need
FIDD is live on the Ethereum mainnet at smart contract address: 0x7C135549504245B5eAe64fc0E99Fa5ebabb8e35D.
Other developer resources can be found here: https://t.co/AhEjh2PcTJ
Looks like the options thing is happening already!
See also: various people thinking through and building different versions of the idea in the thread: https://t.co/gFNEvCbHct
Though I do strongly urge that if any of these get on mainnet quickly, we formally verify it first. I hope @vyperlang and/or https://t.co/OMFlWRqJda folks ( @Fricoben) can help!
(Also, now is a good time to be thinking about robustness-optimized oracles)
https://t.co/j1dxLV4Pn4
New post: a history of account abstraction in Ethereum, from EIP-86 to Frame Transactions. The trade-offs, how the thinking evolved, and why we're still talking about it.
https://t.co/Z7uRVQXGYQ
I got asked about Arc's "privacy" proposal:
1)its not private and I hope they don't say it is. A private zone is a TEE, ran by an admin, who sees and controls everything.
2) These ideas aren't knew, but a promising integration of them is great.
3) We can get better privacy.
EIP-8182: Private ETH and ERC-20 Transfers is now officially Proposed for Inclusion (PFI) in Hegotá!
If you support privacy on the L1, write your favorite ACD a letter! (And in the letter say that they should consider EIP-8182!)