Founder @LotusFi_ | Prev Product Index Coop & Exodus | Defi microstructure, vaults, trade prophesies
Joined May 2023
- Tweets 741
- Following 1,348
- Followers 328
- Likes 3,896
35 Photos and videos
Pinned Tweet
Mar 23
Better Vaults need better market structure.
With Resolv, a single issuer-side opsec failure was enough to create losses, illiquidity, or emergency actions across a web of downstream vaults, pools, and credit markets. Last year it was the $93m Stream Finance debacle due to a bad balance sheet.
LPs aren’t being compensated adequately for the opaque risk they’re taking on in many of these assets through diversified vault allocations.
@LotusFi_ doesn’t eliminate collateral risk, but we think our model eliminates much of the incentive to lend against riskier collateral. Lend against blue-chip collaterals like BTC and ETH. Keep liquidity connected. Price credit risk on a curve inside one market.
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David Reising retweeted
Jun 9
Vaults meet the moment because they make onchain yield investable at scale.
They turn complex onchain opportunity sets into products that can be diligenced, managed by a curator that is accountable, and held with confidence.
Q&A write-up full interview below ✍🏼
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David Reising retweeted
May 25
“It’s my honor to announce that the true pope is working with us from Avignon”
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David Reising retweeted
May 21
We (@vaultsfyi) are now powering Earn in the Arbitrum Portal.
The Arbitrum and Offchain Labs teams have been great to build with. Earn is the first step. We're continuing the work across the broader Arbitrum and Orbit ecosystems.
We'd also like to give a special thanks to @vaultsfyi, our core infrastructure partner powering Arbitrum Earn.
We are leveraging vaults.fyi to power Earn data, transactions, and portfolio tracking, allowing us to simplify offering onchain yield to our users.
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May 22
Nice look at different flavors of tranching from @0xyanshu and seeing @LotusFi_ contrasted with other applications of tranching. (we’re talking to a couple of these other teams for possible crossovers)
For Lotus, tranching - in combination with Cascading Supply - was our answer to creating differentiated risk levels without fragmenting liquidity.
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David Reising retweeted
May 18
An overview of @LotusFi_ and its market tranching by LTV (higher LTV -> higher rate).
In risk-curated, isolated market models, the market-dominant LLTV for a specific collateral/debt pair often caters to the most risk-tolerant curators.
Innovation behind Lotus protocol brings better risk pricing by introducing LTV-tranched markets, allowing more conservative risk curators and senior lenders to earn sustainable yield, isolated from higher-risk tranches. 👇
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David Reising retweeted
May 14
Today marks six weeks since our first private testnet deployment
20 moderated sessions with users from Alea, Offchain Labs, Uniswap Foundation, Coinbase, Summerfi, Superform, and other teams across DeFi
A few things stood out:
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May 13
This is gonna be good!
May 13
IRIS website and docs are live.
Website : iris.credit/ / Docs : docs.iris.credit/
If you publish strong coverage of IRIS, you’ll be invited to the IRIS Club, with full access to all private articles on lens.iris.credit.
Share your post in the comments or via a quote retweet.
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May 12
Enjoyed chatting with @jacqmelinek and I stand by my tokenized avocados comment.
May 12
If you missed Cafecitos at Consensus: @_TalkingTokens Live, an event @StrataMedia_ co-hosted with GSR and Alpaca...we've got you covered.
I interviewed 8 crypto leaders in a rapid-fire mini interview series.
Each guest was asked a similar set of questions: how they describe the state of the crypto market, if bearish sentiment is overhyped, what they would tokenize today and what else they're paying attention to.
Here's what they said:
TIMESTAMPS
00:00 – Intro
00:32 – @ashgoblue (CEO @evernorthxrp), on active XRP treasury management and tokenizing compute
05:48 – @Philfog (CEO and co-founder of @Corkprotocol), on risk infrastructure DeFi is still missing
12:08 – Neil Chopra, head of strategy and BD at @FireblocksHQ, on convergence of crypto native and traditional markets
18:10 – @chiefbuidl ( co-founder and CTO @SpaceandTimeDB) on its new institutional Virtual Vaults and decentralization after exploits
21:56 – @Davidareising (founder and CEO of @LotusFi_) on tranched lending and DeFi insurance
24:36 – @iyoshyoshi, co-founder and CEO of @AlpacaHQ, on tokenization infrastructure and the paradigm shift ahead
28:11 – @TomMurphyTweets, head of communications at @Securitize, on its new Jump and Jupiter partnership, Computershare announcement, and tokenized stocks
34:38 – @Jakob_GSR, president of @GSR_io, on market structure evolution and tokenized equities trading 24/7
Watch the full episode below or on X:
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May 11
Thanks dad!
May 11
We’ve begun a new sub-series of The @Edge_Pod dedicated to coverage of newer, less known, up-and-coming DeFi protocols.
@LotusFi_ offers a novel design for tranched credit markets, allowing more capital efficient “cascading liquidity.”
Different from Aave or Morpho.
Lenders earn more, as borrowers can pay higher or lower interest rates for safer or more risky LLTVs.
In the end, we don’t turn tail to run from the risk of bad debt, instead we allow markets to price and meet the needs of these lenders and borrowers.
Lotus is not fully launched yet (early beta access) so it’s a great time to explore this new design by some of the giga-brains behind @indexcoop’s pioneering DeFi product suite.
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David Reising retweeted
May 8
0/ First external piece on Lens, written by @AnthonyBowman43 from @LotusFi_ .
Fixed-rate loan does not get solved by fixed-rate products alone.
It depends on better variable-rate markets underneath, and better liability management for borrowers above them.
lens.iris.credit/posts/good_…
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David Reising retweeted
May 7
3/ Lotus Protocol Introduces Risk Segmentation
@LotusFi_ addresses these structural constraints by introducing credit tranches.
Lenders choose the risk level they are willing to back, while borrowers select their collateral terms.
This segments risk into senior and junior tranches within a single market.
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May 6
Let’s go, stoked for @iris_credit
May 6
0/ Introducing IRIS.
A fixed-rate origination layer built on top of DeFi’s deepest lending markets.
Built from the work behind 246 Club.
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May 6
🎙️ New @Edge_Pod
🪷 The Next Battle In DeFi Lending Is What's Inside Your Vault | DeFi Frontier
0:00 - Intro
2:22 - The team behind Lotus
3:45 - The problem with shared pool design
7:23 - The “missing middle” in DeFi lending
9:31 - The problem with isolated markets
11:17 - What does Lotus aim to solve?
13:40 - The elevator pitch for Lotus
19:54 - How tranching plays a role in Lotus
24:00 - Demo of Lotus and how it works
28:56 - @CredoraNetwork ratings in Lotus
33:19 - Earning more with productive debt
37:52 - Productive debt dampens rate volatility
42:13 - How Lotus differs handling bad debt
45:08 - Who will use Lotus?
48:04 - What uses could Lotus unlock?
50:49 - Security, audits, and lessons from rsETH
57:02 - Closing Lotus launch
🙏 Thanks to @LotusFi_ Founder @Davidareising for joining us!
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David Reising retweeted
May 4
@circle shares surged more than 19% after lawmakers resolved a major dispute on stablecoin yield, clearing a significant hurdle for the CLARITY Act in the Senate. The compromise allows activity-based rewards but bans returns on idle balances.
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Apr 30
You can’t have real risk expression if the credit system has a fundamental aversion to bad debt.
Today we basically see pooled risk or isolated risk. @LotusFi_ will clear risk. Bad debt’s just a thing that needs to be priced like all the other things.
And that lets us clear risk up to 20x spot leverage which should create the first serious spot competitor for perps. (Builders hmu!)
Apr 30
that's @LotusFi_
Choose your LLTV and get a rate that matches your risk
x.com/LotusFi_/status/204987…
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Apr 30
RT @Re7Labs: If you've ever built a keeper bot at 2am to rebalance a vault before a rate flip, this one's for you.
Re7 Labs is hiring an A…
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Apr 28
Stable borrower rates are a real need onchain. But duration risk doesn’t disappear because it’s routed through a vault.
DeFi needs benchmark funding curves for collateralized credit: observable surfaces borrowers can route to, lenders can underwrite, and vaults can price around.
That’s the scalable foundation structure Lotus is building.
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Apr 25
global defi hurdle rate reminds me when a consultant asked if I “could wade across a river w 3 ft average depth”. It’s been fun to follow.
few thoughts on this -
IRMs turn pool liquidity into nonlinear liability repricing risk, so viable leverage gets haircut or borrowing just goes away. big part of why utilization stays low. lenders coming and going, borrowers experiencing this as rate volatility and exiting.
for lenders (incl vaults), prevailing mono risk/rate market structures naturally funnel risk appetite along a collateral quality corridor, which is interesting and I doesn’t seem ideal.
@LotusFi_ changes rate construction to base rate credit spread on a connected curve which means less of the rate is fast-moving, directly reducing borrow-rate volatility.
Apr 25
I agree that DeFi lenders seem to be underpricing risk. Most blue-chip yields are lower than the risk-free rate you can earn from money market funds! Even for lenders who don’t have access to Treasury yields, it surprises me that they take those risks to earn ~3% on stablecoins
But that doesn’t mean rates “should” be higher. You have to take demand into account. There is already limited borrow demand; if rates were >10% there would be almost no borrowing
Unfortunately the equilibrium might just be a low quantity supplied in DeFi
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Apr 26
Regulated yield meets DeFi lending: @LotusFi_ has selected WisdomTree's tokenized money market fund as a reserve asset in their protocol.
Lenders earn yield even when no one is borrowing, first integration of its kind.
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