3Jane is now open to the public Mint USD3 to earn $JANE Liquidity mining details below

One of the things we do at Dragonfly that I recommend to all teams that manage crypto custody/multisigs: Randomized fault injection! Basically once every {N} days, somebody involved in our custody setup becomes designed the hacker. Their job is to get a "malicious" transaction past our custody processes (sending the money to a safe address we control). They are allowed to do anything to accomplish this. Lie, cheat, fabricate documents, impersonate other people. If they successfully get the assets past our custody process into the safe address, they get $500. If they are successfully defended against, the defenders split the money. Fear of being embarrassed by their peers has probably leveled up our team's situational awareness more than anything else we've done. Sharing this tip for others!

The real win is getting every CEX to launch a DEX

Above all

My biggest wins in Defi from the last 2 years happened because I was looking at new stuff that few people were looking at: -OHM at backing price, which will never happen again because now people have too many eyes on it and understand it. I found it simply cause I was curious and did research on my own on something I wasn't familiar with and was genuinely curious about. One of my favorite plays ever (even if i could have made multiples more) -JLP arb, the best arbitrage I've ever made, consecutive 3-7% arbitrages 1-2 times week across several weeks (on unlimited size!!), simply because I was farming that shit and very close to all the JUP/JLP eco and really understanding its mechanics when very few people was paying attention. -TNSR prob payed 400% on the SOL i had deposited farming it for 3 months I was farming it (even though tnsr team rugged me 1/3 of my rewards, it would've been even bigger APR). Nobody wanted to farm tensor cause it wasn't easy (it was, but required some manual work). -PTs in january-febryary this year, at that time people were still not paying too much attention. Now it feels almost impossible to find a PT for 2-3 months that will pay 100% . -ETHFI looping when almost nobody was doing it back in may 2024. 250% super safu APR for over 2 months again because was something new at the time and no one was looking (my only regret was not having sized bigger) -Extra Finance, with 300-400% DN APRs for 3 months (even though when I got to it it was certainly not early, but at least it was still not a bot fest and you could be a manual warrior and get rewarded). -Scroll loops. Here it was a lot more looked into, but the alpha was in botting your way into getting some space. Different kind of friction I could go on and on. All those share some commonalities. They were either relatively new and unknown, barely understood (like ohm cooler loans, extra finance, Pendle even recently) or had a big friction (manual labor, bot fest). The reflection is: -The biggest wins, the true alpha that pays oversized returns is most likely in the new; in the novel niche, the new shit that almost no one understands well. The chances of finding alpha are much greater in NEW niches. For example, I doubt we're gonna find outsized returns farming loops points anymore, it's simply too known and farmed (about loops, i think they're still ok, cause people still lend money prob too cheap, but extremely unlikely you get 200% APR looping PTs on Morpho). Or LPing stablecoins: it's too well known, too low risk, and even if you find a niche/new farm, odds are its APR will get normalized sooner than later. Stable LPing is simply too well known. Or another one: even if Lighter's points farm was ridiculously good 3-4 months ago, it is not anymore. If you farmed 200% APRs is because you got there early. Alpha always gets diluted. -Also, not only the alpha is in novel stuff that no one cares enough to study, but on friction. Stuff that even if people really understands it, nobody wants to do it, cause you need to get your hands dirty or some sort of risk exposure no one wants to have (tensor/magic eden shit nft markets, hyperliquid spot shitcoins in '24). -Curiosity pays. Recently, hyperevm bros were curious in a new shitty ecosystem when almost nobody was looking at it. They got early and got hugely rewarded so far (and prob will continue to do so in future airdrops). Same as with the hypercore spot trenches back in summer 24, they did the shitty thing nobody else wanted to do and got rewarded inmensely. -To finish, it's also ok to have periods when you outperform massively, and are "on the trenches" but it's also good and healthy to have periods of lower activity when you simply enjoy life more and make peace with the fact you're gonna get average returns. But imo if you want to find true alpha you gotta be in places where most people is not watching or is too lazy or uncomfortable to do the required work/effort. Enjoy the summer :)

Be careful providing liquidity on @KittenswapHype. Their newly deployed gauges to farm $KITTEN emissions are proxied. The proxy owner is a wallet, not a multisig. There is no timelock. This applies to most of the contracts (Voter, RebaseReward, Minter, CL Gauge Beacon, etc. etc.) If the admin key were to be compromised, the gauge contracts could be instantly upgraded, and you'd lose all your money staked in the gauge. Factory: hyperscan.com/address/0xb4E6… Example gauge: hyperscan.com/address/0x4C52… Owner: debank.com/profile/0xb6Ff1af… While the gauges themselves are not verified, their CL Gauge beacon reveals the gauge code - it is 1:1 forked from @AerodromeFi, breaking the BUSL licence. KittenSwap has been audited twice. Both audits found many issues. First audit had 2 criticals, 7 highs, 16 mediums, 30 lows: github.com/pashov/audits/blo… Second audit had 3 criticals, 1 high, 3 mediums, 12 lows: github.com/pashov/audits/blo… They also just announced: 'We are updating the UI for merging to resolve some issues -> don't merge in the UI until we give the go ahead or deactivate any of your veKITTEN.' While we're don't think the KittenSwap team has any bad intentions, to us, their developer team seems inexperienced, and you should be careful interacting with their protocol.

To the class of '24/'25: There's a famous line from @pmarca when he moved to Silicon Valley in 1994. The Internet boom was already under way. He came from a small town in Iowa, and seeing these growing giants like AOL and Cisco, he was worried that he was already too late. That by 1994, he worried the whole Internet thing was basically done. I felt the same when I first got into crypto VC in 2018. Polychain, Pantera, a16z, DCG, and others were already legendary. Was there really space for another crypto VC? Seemed like maybe it was already too late, and the industry had consolidated. Don't worry. Barely anything has happened yet. BTC is still 1/10 of gold. Less than 1% of the world is on-chain. There hasn't been a single law passed in the US about crypto. And there's not a single major central bank in the world owning any of this stuff. You're not late. Crypto is still tiny compared to what it's going to be in 20 years. So welcome to the crypto—a lot is going to change from here. Come make your mark.

As we've seen a lot of discussion around the depeg, let us summarize exactly what caused the movement in the deUSD @chainlink oracle. First off, the deUSD oracle uses volume-weighted average price (VWAP) methodology. In simpler terms, the oracle assigns prices to the asset based on the price where most of the volume happens. While highly reliable for uncorrelated assets, the VWAP algorithm is evidently poorly suited for pricing low-liquidity correlated assets. As seen yesterday, a single sandwich trade in a single block accounted for 50% of daily volume, and spiked Chainlink’s reported price. MEV buy: etherscan.io/tx/0x0d42ca8922… Victim buy: etherscan.io/tx/0xdf8b0deccd… MEV sell: etherscan.io/tx/0x85c56500f3… In reality, that price was located on a single, smaller DEX pool and lasted for less than a block. Others argued that low-liquidity was the cause, but deUSD is sufficiently liquid, with close to $10M in the top pools. Furthermore, only the single sandwiched user experienced the price dislocation and reserve ratios returned to parity after the backrun was executed, as is standard with sandwich attacks. The observed inflated price was simply an abberation and not a real event outside of the sandwich. To summarize, deUSD's "immaturity" or "illiquidity" (not true) was not the cause. Only using a VWAP oracle is just not a good setup for low-volume correlated DeFi assets. Finally, it is entirely possible sophisticated actors might manipulate low-volume assets VWAP oracles' prices just by trading large volume in the smallest tracked liquidity pool in one block, only losing the trading fees, in order to profit from subsequent liquidations. We therefore urge curators to consider using different methodologies for stablecoin oracles. We realize that choosing an appropriate oracle for low-volume correlated assets is not easy. In the very least, we would like to see @aave's price cap adapter used more across DeFi. Non-yield bearing stablecoins shouldn't fundamentally trade above 1$, so adding an upper cap just makes sense. Shoutout @totomanov, as we took a lot of context from your tweets, and thanks to everyone who contributed in the discussion and did not use it as means to promote their own protocol.:)

This is what Shatner had to say about his experience. It’s pretty haunting.

As DeFi bear, it's oddly not the pure DeFi / LP / Lending use-cases of PoL that I'm most excited for (although those are great!) It's the unlock that PoL gives applications through the use of minting receipt tokens that proxy user actions that drive value (identify CAC). Effectively, applications & the chain become intertwined at the unit economic level. E.g.: 1. This user action drives $0.30 of revenue for my application. 2. It costs me $0.20 to incentivize a marginal user to do this action via PoL 3. I create a receipt token that proxies that user action, and stake it on behalf of the user (they don't knkow it's there) 4. I can take 2/3 of the revenue from that action to onboard a user 5. I can internalize/pass through the remaining 1/3 to token stakers 6. Repeat This allows Berachain to grow as a direct result of the success (fees) of its applications, and allows application beyond DeFi (consumer, gaming, DePIN, RWA, etc) to utilize Proof of Liquidity to drive real usership for their products.

It was previously assumed, but now it's becoming crystal clear: the DOJ's stance on crypto enforcement has changed from the last administration - it's officially "not a 'digital assets regulator'". Big shift in enforcement priorities. (Source: sidley.com/en/insights/newsu…)

A few bullet points summarizing my conversations in DC regarding crypto legislation: -Stablecoin legislation AND market structure targeted for August 1. Staffers confident in achieving both by this deadline. -Bitcoin strategic purchases still on the table. Some individuals confident we can get it done through the national security angle. Some big names will speak to Congress re the security issue in the coming months -Huge "book" of new rules and guidance coming out of the Trump admin targeted for late July. Agencies can fall in line or EO will force them to. -The push by more centralized L1s in DC is very very real. This needs to be checked by the industry. -Consistent and vocal support for onshoring crypto businesses. Incentives are on the table.

Join us for an AMA with @StreamDefi 🎙️ We’ll explore the best onchain yield strategies, how to scale farming positions with size, Stream’s points program, & more. 📅 3.28.25 🕛 6PM EST x.com/i/spaces/1MnxnwOkYZMKO

Join us for an AMA with @MidasRWA, an issuer of liquid yield tokens designed to optimize on-chain asset management 🎙️ 📆 Tuesday March 25th 🕕 7AM PST x.com/i/spaces/1YqKDZaeekzJV

Join us tomorrow for an AMA with @DinariGlobal 🎙️ We'll discuss trading equities onchain, farming equity/stable pairs & the future of tokenized equity 🕛 Thursday March 20th, 4PM UTC x.com/i/spaces/1dRKZYvqyRgxB

Join us this Tuesday for an AMA with the @HandofGodSonic team 🎙️ HOG is a DeFi experiment that uses AI to govern the stability of its seigniorage system. 📅 Tuesday March 18th ⏰ 8PM UTC

Nillion is making bold moves that affect the airdrop meta - uniquely detecting sybil/airdrop farmers through their social messaging and weighing value generated by community members through thoughtful categories.

Can’t wait for this one!

These results are pretty incredible - smashing the daily volume of Hyperliquid and Berachain. Besides the interesting tokenomics and burn strategy with Shadow (discussed by others at length), I think it's underrated how smooth and functional the UX is. It's a joy to use it -- and that's saying something when dealing with concentrated liquidity DEXs.

Note that Uni will have an exclusive license to its v4 until June 2027. Looking forward to trying this out.