Pinned

Valuing Bitcoin and Eth

Some ways to think about pricing BTC and ETH — Summary A “market” allocation to crypto would be about 0.1% of net worth. Above that and you’re bullish on crypto. High Bitcoin holdings (e.g. 10–20%) imply even higher (e.g. 50%+) confidence in Bitcoin reaching the valuation of gold. [this is true even if you are valuing Bitcoin on some use…

Bitcoin

7 min read

Pinned

FARMers losing sight of selling shovels

This post is kept up to date here. Summary: We are in the growth stage of DeFi where new protocols are showering participants, and themselves, with governance tokens. Rewards from one protocol are re-invested in another protocol to earn more rewards, and so on. The system is multi-layered. The value…

Defi

8 min read

Jul 20

I underestimated impermanent loss

Summary For some reason, I thought uniswap v3 and curve v2 addressed impermanent loss. That’s wrong. Current AMM designs are inherently much more expensive for liquidity providers than order books. Most liquidity providers are losing money before rewards. Protocols aiming to grow liquidity for their tokens should be thinking deeply about…

4 min read

Published in Coinmonks

·Jul 16

(Mis)Understanding Economies of Scale and Centralisation in Proof of Stake

Summary: The argument from this week’s Bankless Podcast Framing centralising forces in Proof of Stake Economies of scale of staking providers like Lido Economies of scale in Bitcoin Solutions from here Thanks for reading Hype or Hodl! Subscribe at Pinotio.com for free to receive new posts and support my work. …

5 min read

Published in Coinmonks

·Jul 15

Is USDC in Trouble? Not obviously so.

Summary: Allegations on Circle collapsing Does Circle lend out its reserves? (No) Are Circle’s reserves indirectly being lent out? Is Circle paying Silvergate/Signature 5% on deposits? (Almost certainly not) Overall assessment of Circle’s USDC Allegations on Circle collapsing @CoinInsider recently raised some strong allegations about USDC in a Twitter thread: Geralt Davidson @CryptoInsider23

7 min read

Published in Coinmonks

·Jun 30

What the F(?TX)

Howdy folks, let’s get started with a graph of FTT (the FTX token) charted, not against USD, but, against ETH (a hip way to chart tokens on Pinotio.com!): There aren’t many tokens that have gone up versus Ether in the last 180 days, aside from Bitcoin and Ethereum Classic (ETC)…

6 min read

Jun 30

An interesting graph

Here’s an interesting graph, it’s the price of Ethereum Classic (ETC) compared to Ether over the past 180 days: There is some strengthening of Ethereum Classic very recently. Granted, Ethereum Classic has mostly just gone down since the fork with Ethereum back in 2016. However, it’s interesting — giving the…

1 min read

An interesting graph

Here’s an interesting graph, it’s the price of Ethereum Classic (ETC) compared to Ether over the past 180 days:

There is some strengthening of Ethereum Classic very recently. Granted, Ethereum Classic has mostly just gone down since the fork with Ethereum back in 2016. However, it’s interesting — giving the…

Published in Coinmonks

·Jun 28

Future of Ethereum: What I’ve been reading

Hi folks, I haven’t written in a bit, so here are some links to what I’ve been reading. Future of Ethereum One thing I care about is the robustness of Ethereum — because I think Ethereum is the most secure of all smart contract chains at present and I’m currently…

4 min read

Future of Ethereum: What I’ve been reading

Jun 11

Security: Ethereum’s weak LINK?

Summary: — Off-chain versus on-chain oracles Oracle risks to Ethereum protocols How high is the likelihood and impact of incorrect oracle prices? Alternative to Chainlink: Tellor On-chain Oracles — Where to from here? Oracle Risks — continuing the discussion Off-chain versus on-chain oracles An oracle is a price feed used to determine asset prices and values. …

12 min read

Jun 5

The less DAO the better

The hype of DAOs A DAO allows decision making to be tokenized — typically in a one-token-one-vote kind of way. The common, but inaccurate, portrayal of this approach is that DAOs allow for community involvement and “democratize” decision making. The truth is that DAOs take the same one-share-one-vote approach that…

3 min read