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decentralized finance

civilization and politicsDAOsdecentralized financegenerational changeMetaverse / xR
·Oct. 10, 2022

The Roaring Twenties of Populism, Institutionalism, and Technology’s Meaning

It must have been hard for those early Internet dot com founders to watch their ideas burn up like kindling. What was yesterday a song of genius and risk-taking became a caricature of hubris and bubbles. Pets.com, lol, they said.

Of course all the Internet people were right, just not at the right time. Being in the moment, you really can’t tell when the right time is. You might only be able to tell when it’s over, and the music ain’t playing no more.


It’s the roaring twenties, people say about the start of this decade. Like, that’s a good thing? Of course the 1920s ended with the Great Depression, a restructuring of the social order, and a political path to the worst war in human history. But you know, some people had fun in the stock market! Even Keynes — for all his economist words — lost his shirt. Only political power and the gun mattered in the end. It was Kafka who was right.

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central bank / CBDCdecentralized financeexchanges / cap mkts
·Nov. 17, 2021

The role of Alameda and Cumberland as USDT market makers

We look at a recent report from Protos that traces the issuance of USDT to the institutional players in the centralized crypto capital markets. The data reveals the market share of players like Alameda, Cumberland, Jump, and others in powering trading in exchanges. We try to contextualize this market structure with what exists both in (1) investment banking and (2) decentralized finance. The analogies are helpful to de-sensationalize the information and calculate some rough economics.

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Cryptodecentralized financeregulation & compliance
·Jul. 6, 2020

The Soviet Pyramid Scheme eating 10% of Ethereum and 50% of Paxos Stablecoin

Let me introduce you to MMM. While decentralized finance and digital asset companies bend over backwards to be customer centric and reform financial services (each in their own way), MMM is a pretender. It is a pretender that has stolen the language of the crypto economy to create a cancer in its body.

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DAOsdecentralized financeInvestingIPO / SPAC
·Dec. 15, 2021

The State of Decentralized network M&A in 2021, with Polygon’s $650MM of acquisitions

We look at the state of M&A in decentralized protocols, and the particular challenges and opportunities they present. Our analysis starts with Polygon, which has just spent $400 million on Mir, after committing $250 million to Hermez Network, in order to build out privacy and scalability technology. We then revisit several examples of acquisitions and mergers of various networks and business models, highlighting the strange problems that arise in combining corporations with tokens. We end with a few examples that seem more authentic, highlighting how they echo familiar legal rights, like tag alongs and drag alongs, from corporate law.

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Chinacovid pandemicdecentralized financemacroeconomicsphilosophy
·Aug. 3, 2020

The symbolic battle over TikTok, intellectual property, and blockchain-based finance

This week, we look at:

The 10% collapse in GDP across the US & Eurozone, and how it compares with China's second quarter

The geopolitical battle over TikTok, its alleged spying, and understanding the winners and losers of the Microsoft deal

A framework for how to win in open source competition, explaining both Shenzhen manufacturing success and decentralized finance growth to $4 billion

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central bank / CBDCCryptodecentralized financedigital securities / STOICO / IEOstablecoins
·Dec. 23, 2019

Top 5 Decentralized Finance predictions for 2020 and beyond

In the long take this week, I revisit decentralized finance, providing both an overview and 2019 update. The meat of the writing is the following long-range predictions for the space in the next decade -- (1) the role of Fintech champions like Revolut and Robinhood as it relates to DeFi, (2) increasing systemic correlation and self-reference in the space, which requires emerging metrics for risk and transparency, and (3) the potential for national services like Social Security and student lending to run on DeFi infrastucture, (4) the promise of pulling real assets into DeFi smart contracts and earning staking rewards, and (5) continued importance of trying to bridge into Bitcoin. Here's to an outlandish 2020!

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decentralized finance
·Mar. 26, 2021

Uniswap’s V3 upgrade, the future of Automated Market Makers, and the financial compression algorithm

The most popular AMM, Uniswap, is annualizing to $1 billion in fees. That’s a chunky amount of value for its users.

The team has just released the third version of its protocol, and it is an innovation in the structure of the AMM logic. Instead of providing liquidity across the entire price curve, users are now able to specify pricing ranges for which they are participating in the curve. This protects market makers from the extreme price fluctuations which they may prefer not to fund. Because most trading also happens in narrower price bands, it is possible that capital is much more actively used in those bands, and generates higher fee returns comparatively.

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decentralized financedigital transformationMetaverse / xRNFTs and digital objects
·Oct. 16, 2020

Virtual communities and digital worlds are the difference between Finance Incumbents, Fintech, and DeFi

This week, we look at:

  • How the medical reality is accelerating remote work and digital commerce, including the success of buy-now-pay-later companies like Affirm and Klarna

  • The emergence of virtual worlds and video game environments that generate $ billions in revenue and have millions of participants, with examples of Zwift, Fortnite, Tomorrowland, Roblox, Genshin Impact

  • How to connect digital environments to digital communities and their economic activity, including through mechanisms like non-fungible-tokens in Rarible and Async Art

  • Advice for shifting thinking from manufacturing financial product, to starting with the customer, to leveraging the community

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Cryptodecentralized financemacroeconomics
·Jun. 20, 2021

What the market misses about Bitcoin and Ethereum in 2021

This week, we cover these ideas:

  • Crypto prices show increasing correlation in market swings, which hides the large substantive differences between projects

  • The core narrative of Bitcoin, and its fundamental indicators

  • The core narrative of Ethereum and Web3, and its fundamental indicators

  • A sanity check on potential market caps relative to gold, equities, and other assets

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CryptoDAOsdecentralized financeMetaverse / xRNFTs and digital objects
·Sep. 24, 2021

What’s next in Web3? Tachyon Accelerator’s MD Gabriel Anderson on early stage in NFTs, DeFi, & Crypto

In this conversation, we chat with Gabriel Anderson – Managing Director at Tachyon, Head of Market Strategy & Business Intelligence at ConsenSys Labs. Former Head of VaynerMedia. Alumnus of Merrill Lynch.

More specifically, we touch on what Tachyon is, how it works, and who it’s for, the growth of crypto, and what needs to come next to allow the widespread adoption of crypto by mainstream society. Gabriel talks about the best projects he has seen so far that combine NFTs with other elements of DeFi and crypto, and what he’d like to see more of in the future.

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