The State of DeFi Derivatives
In this Twitter space, host Jib of Rysk Finance is joined by Devin of GammaSwap, 0xWenMoon and degeneral to discuss DeFi derivatives.
Read our notes below to learn more.
About Jib
One of the founders of Rysk Finance.
Mainly work on the protocol development side of things.
About 0xWenMoon
Treasury management at Umami Finance.
Also work on product strategy.
About Devin
One of the co-founders at Gamma Swap.
Works on the growth and operation side.
Helping with marketing and partnerships for structured products and other things.
About degeneral
Works on the quantitative stuff from hedging, pricing, slippage and other stuff in Rysk Finance.
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The biggest challenge in the current market
Many of the hedging instruments and derivatives that they use don't have liquidity available to them.
Deep liquidity and less slippage.
Incentivizing the right things in a sustainable way.
Real world assets are never going to become a thing in DeFi until there’s more regulatory clarity.
The market for capital isn’t as big as everyone likes to think.
Degeneral
He thinks that the concept of trust and creditworthiness is an important thing to monetize, to have and to be able to use.
0xWenMoon
He thinks the industry is too young to be assigning someone full credit worthiness.
Devin
The infrastructure is lacking as well. There’s a lot of interesting things that could happen like ZK technology and doing things more trustlessly but also having private information onchain.
Current state of DeFi
It is easy to audit in DeFi because of transparency.
Applying credit ratings on bridges.
Narratives of DeFi in 2023
Instead of trying to compete for liquidity individually, they should focus on getting more people into the space.
Seeing the option space growing.
There’s a lot of innovation happening that is going to push DeFi to compete with CeFi.
DeFi is following in the footsteps of TradFi.
The level of consensus needs to come higher into the scoring of protocols.
Composability being a desired trend.
Unpopular opinion of DeFi
DeFi can easily fall into the same traps as CeFi does.
The irony is that protocols need to be run like the corporations they hate in order to replace them.
$ETH, $BTC and friends are nothing more than gas tokens. They should be worth little more than the pennies it would cost to run the chain from AWS.
DYOR or Do Your Own Research is arrogant and patronizing.
The capital efficiency narrative is kind of dumb because it’s not bad by itself but there’s just a lot of people are optimizing for capital efficiency.
Degeneral
Conflating risk with capital efficiency is the bad thing.
Devin
Composability can also be described as capital efficiency and in that way, he thinks that’s super important.
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Using a hardware wallet on the go is difficult and cumbersome - until now.
Ledger’s latest innovation, the Ledger Stax, is a credit card-sized hardware wallet complete with touchscreen and Bluetooth capabilities. Did we mention it’s designed by Tony Fadell, the creator of Apple’s original iPod?
Act now, click the link below and preorder the Ledger Stax.