PaperImperium

I’m updating my Rolodex. Who are the small-to-medium sized shops I wouldn’t know? The ones risking $5m to $25m in individual positions?

I find it odd that on the same timeline you can see funds uneasy about owning an asset (BTC) that’s ~3.5% supply controlled by Strategy, while central banks push to diversify away from USD by owning an asset (gold) that’s ~23% supply controlled by the US.

Reminder that today is April Fools Day. Wear your skeptical spectacles 🤓

If banks are worried about stablecoins with yield, wait until they learn about depositing into DeFi vaults.

You calculate your PnL and off-ramp in what currency?

One of the challenges faced by borrow-lend protocols is that depositor a borrower granularity is low. But rate sensitivity tends to be quite high at the margins.
This creates conditions where a single depositor like His Excellency or large borrower like Abraxas can unwind, moving rates substantially in the short term.
While rates often normalize quickly as new “hot money” figures out ways to capitalize on some new equilibrium of rates, it does mean there is a bullwhip effect where small (relative to the entire system) changes in deposit supply or borrow demand create significant volatility in

Can someone check on Saylor? He seems not ok

For non-fiction, I still passionately believe physical books to be a superior UI. It is simply faster to flip between half a dozen open books on my desk for research than it is handle pdfs, e-readers, browser tabs, etc.
For reference material it also secures your supply chain from the whims of publishers or distributors - you self-custody the knowledge in your home or at worst a university library.
I will admit that lack of CTRL-F hurts, though.

Most consumer and much commercial lending is structured as a stream of payments - either interest only or amortizing. When you miss a payment this serves as default, regardless of collateral.
I’ve yet to see much in DeFi structured around using periodic payments to flag distress. Does anyone have an example of this that they’ve seen?

People are overthinking the CLARITY rumors. Stablecoins never have and never will compete head to head with US bank deposits.
US bank deposits have a structural advantage - they accrue yield at higher rates than tbills + are FDIC insured.
A tokenized deposit is going to beat a stablecoin most of the time, even if there’s no rent-seeking shenanigans about prohibiting yield.
But not everyone can have access to US bank deposits. Stablecoins meet demand for US dollar assets in jurisdictions and geographies where USD denominations are hard to source or low quality.
Tether doesn’t compete with BOA

Governments that are serious about increasing fertility should try giving a free Honda Odyssey or Toyota Sienna to anyone about to have a 3rd kid.
Big working capital infusion into the family, and hard for even a government bureaucracy to screw up sending a standard minivan.

I’ve written plenty on it in the past so won’t spend an essay on it today, but when it comes to stablecoins (including those for ETH or other reference assets), hard-coded oracles are brittle. They work until they catastrophically don’t.
In contrast, live oracles allow for real-time risk mitigation, but at the cost of punishing users for false positives if liquidity dries up.
Both are a legitimate design choice, but need to follow different underwriting processes. Only hard code if you diligence the underlying asset and are confident in its ability to meet redemptions as designed.
Both the te

I’ve written plenty on it in the past so won’t spend an essay on it today, but when it comes to stablecoins (including those for ETH or other reference assets), hard-coded oracles are brittle. They work until they catastrophically don’t.
In contrast, live oracles allow for real-time risk mitigation, but at the cost of punishing users for false positives if liquidity dries up.
Both are a legitimate design choice, but need to follow different underwriting processes. Only hard code if you diligence the underlying asset and are confident in its ability to need redemptions as designed.
Both the te

Three different L2s. Three different lending protocols. Stablecoin borrowing free or paid to borrow. Unfilled capacity. Dollars on the sidewalk.
What accounts for this? I’d actually prefer responses from #econtwitter.
CC: @ATabarrok @arpitrage @alz_zyd_