In finance we sometimes talk about a “risk free rate”. It’s a mythical investment with no risk, paying with 100% certainty according to some defined schedule. As any real investment with actual risks should compensate for those, real investments then must pay an appropriate risk premium above the risk free rate. Often, investors will use… Continue reading Risk free rate going technical
Tag: blockchain
Bridging is an anti-pattern
As soon as we started having multiple blockchains, be that numerous L1s or L2s, public or private, and any mix of these, the question of how they interact with each other was asked. There are numerous types of interactions between blockchains, but a typical example is that of “the bridge”. In short, a bridge allows… Continue reading Bridging is an anti-pattern
Distinguished stablecoins
Stablecoins are on the up. If we look at stablepulse, at the time of writing, we’re at over 200B in circulating supply. Volumes are also up, both metrics at all time highs. And while the big actors dominate, their models are by no means decentralized. There’s either an element of cash in a bank, or… Continue reading Distinguished stablecoins
What about L3?
Like I mentioned on LinkedIn a couple of weeks back, Dencun/4844 was Ethereum’s broadband moment. The blob transactions enabled by that hardfork network upgrade enabled a new type of storage space for unstructured data. Very soon after this change, we saw transaction prices on Layer 2s, like Arbitrum, Base, and Optimism drop significantly, often over… Continue reading What about L3?
Delta neutral yield
I’ve wanted to write a post on decentralized delta neutral yield strategies for a while, and with the Shapella fork behind us, it finally compelled me to get going. If you don’t know, the Shapella fork enable staking withdrawals on Ethereum mainnet, and it makes the case for LSDs more compelling as their market dynamics… Continue reading Delta neutral yield