defi-research

defi-research

A place for talking about DeFi and ZK research papers — some academic, some less academic, but all involving math

Monteluna pfp

Spent a decent amount of time skimming through the first chapters of this book. I feel like a lot of people in the defi space want to try to apply Game Theory to mechanism design, but I caution this since the entire point Nash was proving mixed game equilibrium in finite games. The key point is crypto is continuous, and open in a sense that your utility that you designed within your own protocol is *not* what rational users are using. This was the entire failure of OHM and the (3, 3) strategy as people defected, since they believed their expected utility by just leaving was higher than 3.

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brad.base.eth pfp

I have a novel idea for a better DeFi ecosystem... Don't invest in crap... ... that has already been built 24 times with "revolutionary" variations that aren't revolutionary ...that humans don't need or won't eventually want because it makes their financial life better ...that doesn't provide composability so that the core engine of what it offers can be used by others to enrich and enlarge the ecosystem and adoption

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tom.base.eth pfp

some recent bangers I picked up. would love a way to stream any creator earnings from this content to the authors/publishers.

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Kyu pfp

@uniswap outsources routing to solvers via Uniswap X. Uniswap X doesn't work when sell token is native ETH, however. It's kind of interesting to see that pricing is worse on native ETH as result. 👀

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Kyu pfp

I find CoW Swap's "Order Surplus" concept pretty misleading—maybe even deceptive. When calculating "surplus," CoW Swap compares the final trade execution against the limit price—which is just the minimum amount you're willing to accept (quoted amount * (1 - slippage tolerance)). Example: you're quoted 10,000 USDC for selling 1 token A, with a 0.5% slippage tolerance. Your minimum buy amount becomes 9,950 USDC. If the trade executes at 9,975 USDC, CoW Swap claims you got a 25 USDC "surplus". But in reality, you received 25 USDC less than what you were quoted. That's not a win—it's just better than the worst-case fallback. Calling that a "surplus" feels like spin.

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Kyu pfp

Ironically, Uniswap V4 could be creating a playing field that favors aggregators like @matchaxyz and @1inchnetwork from swap routing perspective. 🧵

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Shutter pfp

On Tue we announced the white paper "The Road Towards a Distributed Encrypted Mempool on Ethereum" It provides a roadmap for implementing a threshold-encrypted mempool using proposer commitments, aimed at integrating with Ethereum's PBS transaction supply chain https://blog.shutter.network/unveiling-the-road-towards-a-distributed-encrypted-mempool-on-ethereum/

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Ishika pfp

what are the current blockers for trading platform to bring NASDAQ prediction markets on chain

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kbc pfp

Chance to win 1:1 DeFi Masterclass with TokenBrice https://www.paddlebattle.auction/tokenbrice

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jackanorak pfp

Dromos posted this on sustainability in dex emissions. it's a little audacious tl;dr: emissions are not short-term incentives. they're not just structurally sustainable but necessary for outcompeting in the DEX space https://paragraph.xyz/@dromos/sustainability

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chinmay.eth pfp

I still don't understand why someone would borrow from Moonpay at an APY of 18% when they can do the same from Aave at <10%. What am I missing?

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Quintus pfp

I don't know if many in the crypto space have really thought through the tension at the heart of permissionless money There are real downsides to permissionless, private money. Perhaps (I believe) they are outweighed by the upsides, but most of us don't really think about the downsides. I'm from South Africa, but live in NYC. When I sit in NYC, it makes complete sense that you'd want to build a financial system to which access cannot be denied and surveillance of which is not possible. Canadian truckers, Navalny and Operation Chokepoint are motivating examples. Headlines telling about dirty russian money or iranians using crypto payment rails to avoid sanctions feel like vague points at best and boogiemen from power hungry governments with hammer-nail-like regulatory appetites. Currently I'm in SA. Here the biggest problem is corruption by far. I happen to know some people who are involved in the investigations that go after corrupt state officials... 1/2

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Dara Khan pfp

@spookyaction-btc

Sankeys are s tier data viz

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Gökhan Turhan pfp

i mean how do you even separate an ass from its head? is the base layer just a well-formed ass? can devs do the KneesOverToesGuy moves? I've been working on knee, shin and back ability 0 for two weeks and have not felt this better for ages.

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Dara Khan pfp

@spookyaction-btc

https://warpcast.com/spookyaction-btc/0x70c1e423

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