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arndxt
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Slumbered into the depths of 🥩 | 🍄 | 🧠 Digging into alpha at Threading on the Edge 👉Find TG alpha: https://t.co/LZey0AcSFc
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arndxt
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my humble thoughts after @Eli5defi's article I've mentioned this to many that I'm not convinced any current RWA perps solution actually works at scale perpification of assets fails the industry terribly the core problem I see = spot tokenization fundamentally doesn't work at scale CME gold futures $20M trade = 3bps slippage tokenized gold perpetuals $4M trade = 150bps slippage 50x worse execution for tokeniztion innovation, makes no sense market makers won't provide depth because economics don't work: - mint fees 10-50bps - warehouse inventory T+1 to T+5 settlement - opportunity cost vs instant-settle crypto strategies death spiral. shallow liquidity → low volume → MM exits → worse liquidity funding rate erosion destroys long-term potential so we have contradiction: - spot tokenization: proper collateral but no liquidity - perp exposure: great liquidity but bleeding cost and no collateral use I'm positioned for perpification winning trading volume and spot tokenization staying niche for collateral use cases - but nobody's building the bridge between them - that's the opportunity - how do I get perp-level liquidity execution with spot-level composability and no funding bleed - whoever solves that captures entire RWA market perpification is future of trading exposure spot remains future of ownership. until then RWA remains broken regardless of perp numbers twitter.com/arndxt_xo/status/2...
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arndxt
01-26
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i found some really interesting for perp trading. what's breaking my brain is 98% of volume comes from RWAs. not crypto REAL WORLD ASSETS $XAU $XAG at all time high and @ostium did: - $25B cumulative vol - $200M OI - 2,600 weekly users people are trading Platinum perps onchain. hit $50M open interest. PLATINUM 65% APY for LPs in the USDC vault = there's REAL demand here on TradFi: lol good luck wait for NY to wake up on Ostium: already done, 50x leveraged, instant settlement the liquidity is still small. the oracle risk is real. I'm not saying this is perfect the concept of synthetic RWA perps vs tokenization, we might actually see it winning lower friction = faster adoption = actual usage NASDAQ opening 24/7 stocks soon the market's wants exposure, leverage, 24/7 access Ostium is giving them exactly that frontrunning tortise tradfi
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arndxt
01-16
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I visualized the current landscape based on @Eli5defi thesis my take here is the same, gen 1 lending is dead and 10/10 failed it spectacularly the old age lending ideology is dying (or rather dead now) if you need 150% collateral to borrow $100 its called negative credit creation. you're not accessing new capital, rather you're inefficiently unlocking existing capital while locking up more. this model serves exactly one use case and that is recursive leverage for speculation $17B liquidated in 24 hours. 1.6M accounts wiped. accepting this accelerates progress. in gen 2 defi we see 4 parallel evolutions happening simultaneously: 1) privacy layer: hedge funds can't operate when competitors see entire loan book liquidation points leverage ratios in real-time @Arcium building confidential computing on solana. @CantonNetwork created the network of networks for institutions. 2) cross-chain interoperability: abandoning wrapped assets for native messaging. @LayerZero_Core v2 and @chainlink CCIP replacing vulnerable multisig bridges @lifiprotocol aggregating 30+ dexs 15+ bridges. $55B lifetime volume. any lending protocol becomes cross-chain instantly. @SenjaLabs on kaia leveraging layerzero for omnichain lending. integrated into LINE mini dapps. defi lending inside web2 messaging app. 3) consumer abstraction: ERC-4337 account abstraction with passkeys. 70% consumer adoption. biometric wallet creation. gas sponsorship via paymasters. @allscaleio raised $5M from YZi Labs. invoice financing for SMEs. settled $5M invoices first month. @AviciMoney offering credit lines against crypto collateral. non-custodial visa card. spend against assets without selling @ether_fi cash lets you borrow USDC against weETH while collateral earns staking rewards. yield offsets borrowing cost. potentially self-repaying credit line 4) reputation-based undercollateralized lending: only way to achieve capital efficiency and displace tradfi. soulbound tokens as non-transferable reputation badges. verified credit scores loan repayment history. @ethos_network on base creating web of trust. vouching system where you stake reputation for others. social slashing if borrower defaults. credibility score unlocks undercollateralized loans because social cost of default acts as deterrent @fluentxyz connect creating portable "prints" aggregating behavior across chains. strong solana repayment history proves trustworthiness to ethereum protocol instantly. solves cold start problem @maplefinance $1B+ AUM in syrupUSDC. undercollateralized on-chain but secured by off-chain legal agreements. hybrid bridging code and law @goldfinch_fi connecting crypto capital to emerging market fintechs. post-defaults launched goldfinch prime focusing SEC-compliant private credit funds @0xfluid hit $3.4B TVL. combining lending vaults dex into single liquidity layer. enables higher LTV ratios through deeper instant liquidation liquidity twitter.com/arndxt_xo/status/2...
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