There is an inverse correlation between technical difficulty and economic value. Many crypto teams fall into this trap bc so much of the industry is just based on ego-fueled research.

Fun day to be a risk manager or curator of ETH pools. We need more war room livestreams.

Ranking DeFi liquidation mechanisms: 1. Euler: dutch auctions are best at finding the correct spread to offer liquidators, but can be slow. 2. Fluid: gas-optimization definitely helps, but less of a factor when large loans are concentrated by user; offering liquidations as swaps may be powerful but there are issues in practice with integrating liquidations into aggregators, and in practice any market maker via RFQs can offer the same coincidence of wants execution for liquidations. 3. Aave: Chaos risk oracles help optimize the liquidation bonuses, but this is not as accurate as auctions. 4. Morpho: Pre-Liquidations help users control their own liquidation flow, although this modular construction is a worse UX for users, and less impactful for the protocol as a whole.

Update: Gauntlet stepped in with some liquidity to bring the rates down, followed by a sizeable borrower exiting. Rates are stable now under the interest curve kink at 6%.

In a sense DeFi enables faster innovation. But the risk of SCs also dis-incentivizes innovation. Morpho is a beautiful protocol, but it’s also depressing that 500 LOC is so dominant, and it had created somewhat of a risk-off environment for developers.

Feels like dark AMMs will smoke CLOBs on L1s.

Remember that the RedStone OEV product has: @MarcinRedStone – hardest grinding founder in crypto @0xdoge_bull – Wrote the first-ever OEV whitepaper Me – Launched the first ever OEV product @mkmassari – Ex-Chainlink BD director

We all misunderstood OEV. Solving OEV means improving how we conduct liquidations. It means building an oracle that makes lending protocols better. Coming soon.

OEV design that works. Finally. What are better ways to handle MEV? Part 1 👇

Coming back from Cannes and @rwasummit , I feel really energized to build even more. It might not be much visible on the surface, but a big shift is coming.