Will start this thread with a disclaimer. I have never invested a rupee in cryptos 😀

But I have studied bull and bear cycles and financial bubbles extensively. Saw 1992, 2000, 2008 with own eyes. The first one as a novice, the next two when I knew to analyze

The amount of chatter I am seeing in friends, family and social media about cryptos has gone through the roof. For everyone, it's a dream to make 100x or even 1000x easily. Basically, become stinking rich easily
( it never happens )
In any financial bubble, the top is made in extreme speed and violence. The distribution happens on the way down. Unless one saw the rates of 65k on bitcoin, one wouldn't buy at 30-35k or 20k. That 65k is an anchor point which leads to greed
During the tulipmania, a single piece of tulip reached a price of $750,000 in today's money. When we see that history, we think "what idiots". But consider this, as of now meme coins generated by someone in their garage are being traded at absurd prices
Then there is this joke called NFT. A piece of "digital art" basically made by someone on their computer ( who is not even a known artist) are being sold for millions of dollars
Whatever logic crypto fanatics throw at me to justify these prices or that they will go higher fails to convince me that the future generation will not call us "what idiots". We are in a manic bubble like tulipmania or even bigger
----end ---
I leave you with this chart of HFCL, the most darling stock of the 2000 bull run. I knew quite a few "smart " traders who got in at 1400-1600 range and could never sell
What I think will happen. During distribution also, there is huge volatility with price going up and down to "lure". Remember, at any bubble the prices are #always justified by logic ( which are new and against convention). Like Harshad Mehta's "replacement cost theory"

More from Subhadip Nandy

IV - A thread

In financial mathematics, implied volatility of an option contract is
that value of the volatility of the underlying instrument which, when
input in an option pricing model ) will return a theoretical value equal to the current market price of the option (1/n)

Implied volatility, a forward-looking and subjective measure, differs
from historical volatility because the latter is calculated from known
past returns of a security. .
https://t.co/iC5wVf7kvj (2/n)

To understand where Implied Volatility stands in terms of the underlying, implied volatility rank is used to understand its implied volatility from a one year high and low IV.
https://t.co/NFPOidRRcH

https://t.co/qNqinEqaKY

(3/n)

Options traders are always looking at the IV and IVR/IVP. For option
buyers, a low IV environment is best to initiate positions as the
subsequent rise in IV actually helps their positions . Even if the IV
remains flat, the position is not hurt by volatility (4/n)

Option sellers on the other hand are looking for high IV scenarios, where
the subsequent fall in IV ( known a vol crush , most often seen after
earnings/events) helps their positions. Here also, if the IV does not
rise, it does not hurt a seller's positions (5/n)

More from Crypto

I'm sure someone else has explained this, but it is just so cool and I want to explain how this works.


So Curve is awesome for swaps between similar assets, right? The fact that they trade very close to each other is a key part about how Curve works, using it's custom swap invariant function.

That's step 1

Step 2 is that Synthetix is awesome for creating "synthetic assets" (aka synths) which are assets that trade like other assets, that are backed by another, entirely different asset. Basically, a plastic banana that I can buy and sell like a real banana.

Synthetix has a feature that lets you swap between any two synths with zero slippage and a flat fee. That's because it is simply converting the sythentic asset into another synthetic asset, the backing for the synth doesn't change it just uses a different price oracle now.

This is important. Absolutely no slippage, at any size

Swap $1m sUSD for $1m sBTC? flat 0.3% fee

Swap $10m sUSD for $10m sBTC? flat 0.3% fee

swap $100m sUSD for $100m sBTC? Well, there isn't that many synths in Curve, yet but you get the point. The only limit is the pool depth
1/ @MIT discussing the need for blockchain gateways to achieve interoperability across different blockchain networks, and to support the cross-blockchain mobility of virtual assets

https://t.co/PbjQkSlTT3

@quant_network are collaborating with MIT in the creation of ODAP

$QNT

2/ "In order for blockchain-based services to scale globally, blockchain networks must be able to interoperate with one another following a standardized protocol and interfaces (APIs)"

Gilbert founded ISO TC307 which 60 countries are working towards standardizing the interfaces


3/ "We believe that a blockchain gateway is needed for blockchain networks to interoperate in a manner similar
to border gateway routers in IP networks. Just as border gateway routers use the BGPv4 protocol to interact with one another in a peered fashion we believe that a...

4/ blockchain gateway protocol will be needed to permit the movement of virtual assets and related information across blockchain networks in a secure and privacy-preserving manner"

You can read more about the gateway protocol ODAP in this 21 tweet


5/
"We motivate the need for blockchain gateways and blockchain gateway protocols in the following summary:

✅Enables blockchain interoperability:
Blockchain gateways provide an interface for the interoperability between blockchain/DLT systems that operate distinct consensus...

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