Liquity is Broken, Long Live Liquity w/ Colin Platt
DeFi Mogul Colin Platt from Liquity comes on the episode to discuss the announcement of Liquity v2. We talked about the challenges faced by the Liquidity V1 protocol due to changing interest rates and the need for a new design. Liquity V2 introduces an interest rate model that allows users to set their own rates and borrow at a fee they find reasonable. The redemption mechanism is redesigned to create an internal market, where borrowers paying the least for their debt are redeemed first. The revenue generated from interest rates is split between the redemption pool and protocol incentivized liquidity pools. The protocol aims to target users who value decentralization and need stablecoins backed without links to the fiat world. Liquity V2 announcement: https://www.liquity.org/blog/introducing-the-next-evolution-of-cdps Chapters 00:00 Introduction and Background 01:02 Challenges of Immutable DeFi Protocols 02:24 Impact of Changing Interest Rates on Liquidity V1 03:20 Decline of Liquidity V1 and Need for Liquidity V2 04:18 Overview of Liquidity V2 05:12 Issues with the Peg Defense Mechanism 06:09 Importance of Immutability and Decentralization 07:38 Flexibility and Adaptability of DeFi Protocols 08:07 The Price of Money and Interest Rates 09:33 Total Collateralization and Cost of Capital 10:30 Importance of Access to Interest Rates 11:29 Positive Reception of Liquidity V1 and Need for Improvement 11:58 Redemption Mechanism in Liquidity V2 13:27 Decentralized Interest Rate Models 14:22 Incentivized Liquidity Pools and Market Dynamics 16:19 Redemption Mechanism and Borrowing Costs 17:18 Valuing LUSD in Bond Terms 19:14 Managing Interest Rates and Borrowing Costs 20:32 Allocation of Interest Rate Revenue 21:31 Evolution of Liquidity V2 Design 23:27 Challenges of Leverage Token Model 25:20 Importance of Decentralization in Stablecoins 27:47 Interest Rate Market Dynamics and Future Potential 28:44 Protocol Incentivized Liquidity and Liquidity Pools 30:35 Target Audience and Use Cases 32:54 New Protocol and Existing Liquidity Token 35:08 Market Positioning and Product Market Fit 36:26 Liquidation Thresholds and Multi-Collateral Approach 37:20 Decentralization and Collateral Types 38:47 L2 Support and Partnerships 43:40 Future Market Cap and Product Differentiation 49:13 Front-end Runners and Value Addition 50:39 Expanding Front-end Delivery Options 51:09 DeFi Collective and Liquidity Building 51:40 Skipping LRTs for Risk Mitigation 53:07 Uncertainty in the LRT Market 54:35 Innovation and Launch Plans 🦞Want to Support Leviathan? Use our Referral links: ————————————————— 🎯 CVI | https://cvi.finance/#/?ref=leviathan_news 🦗 Grass | https://cvi.finance/#/?ref=leviathan_news 📐 Vertex | https://app.vertexprotocol.com/?referral=3Yznlglxbb 🤵 Alfred | https://t.me/AlfredTradesBot?start=PYEaQRV 🔱 KelpDao | https://kelpdao.xyz/restake/?utm_source=0x81f9B40Dee106a4C5822aED7641D5C1e2B40F92 Donate to Leviathan News: https://arbiscan.io/address/0x110d68F5DFA414E943181Dec3346D4CA0d6DE37F Telegram: https://t.me/leviathan_news Twitter: https://twitter.com/leviathan_news Discord: https://discord.gg/7WtnhqJ7za YouTube: https://www.youtube.com/@Leviathan_News Spotify: https://open.spotify.com/show/69yxNKomUIbdNMFoTjp49K
The Fastest Growing Lending Market on Arbitrum w/ Teddy Woodward of Notional
Summary In this episode we are joined by Teddy Woodward, CEO of Notional Finance. We explored the Notional's growth using the STIP and the strategies employed by Notional to attract borrowing demand. We also talked about the differentiation between leverage liquidity and leverage vaults is explained, along with the focus on offering leveraged yield strategies. The conversation also touches on the growth of fixed rate vaults and the opportunities they provide. Later in the episode Sam talks about the FPIS to FXS merger for Frax. Chapters 00:00 Introduction and Overview 00:30 The Growth of Notional on Arbitrum 04:20 Transitioning from STIP to LTIP 05:18 Leverage Liquidity Strategy vs. Leverage Vaults 07:17 Impact of STIP on Notional's Exposure and Growth 08:16 Improvements for Future Incentive Programs 09:15 Difference Between Leverage Liquidity and Leverage Vaults 10:14 Setting Notional Apart from Incumbents 11:40 Notional's Growth and Milestones 13:24 Growth of Fixed Rate Vaults vs. Variable Rate Vaults 15:23 Opportunities for Yield Generation with Fixed Rate Borrowing 17:39 Focus on DeFi-Native Institutions 19:11 Growth of DeFi from DeFi-Native Users 20:57 Insights into Hedge Funds and DeFi-Native Institutions 23:19 Notional's Future Plans and L2 Landscape 24:46 Deploying Notional V3 on Mainnet 30:32 Gauntlet's Departure from Aave 34:22 Introduction and Background 35:10 The Rift over CRV 36:09 Proposal to Merge FPIS into FXS 39:33 Frax Price Index (FPI) and FPIS Revenue 43:47 Proposal Details and Community Response 48:07 FXS and FPIS Supply and Valuation 52:54 Incentives and Conflicts of Interest 58:46 Discussion and Decision-Making Process 01:06:20 Implications for Voting Structure 01:07:49 Conclusion and Future Discussions 🦞Want to Support Leviathan? Use our Referral links: ————————————————— 🎯 CVI | https://cvi.finance/#/?ref=leviathan_news 🦗 Grass | https://cvi.finance/#/?ref=leviathan_news 📐 Vertex | https://app.vertexprotocol.com/?referral=3Yznlglxbb 🤵 Alfred | https://t.me/AlfredTradesBot?start=PYEaQRV 🔱 KelpDao | https://kelpdao.xyz/restake/?utm_source=0x81f9B40Dee106a4C5822aED7641D5C1e2B40F92 Donate to Leviathan News: https://arbiscan.io/address/0x110d68F5DFA414E943181Dec3346D4CA0d6DE37F Telegram: https://t.me/leviathan_news Twitter: https://twitter.com/leviathan_news Discord: https://discord.gg/7WtnhqJ7za YouTube: https://www.youtube.com/@Leviathan_News Spotify: https://open.spotify.com/show/69yxNKomUIbdNMFoTjp49K
Gearbox Enters the Points Meta w/ Amplice
In this episode Amplice comes on the show to discuss the recent launch of leveraged points accumulation on Gearbox. Leveraged Restaking: How and Point Math: https://blog.gearbox.fi/leveraged-restaking-how-and-point-math/ Leverage Restaking and… Leveraged Points?!: https://blog.gearbox.fi/leverage-restaking-and-leverage-points/ 🦞Want to Support Leviathan? Use our Referral links: ————————————————— 🎯 CVI | https://cvi.finance/#/?ref=leviathan_news 🦗 Grass | https://cvi.finance/#/?ref=leviathan_news 📐 Vertex | https://app.vertexprotocol.com/?referral=3Yznlglxbb 🤵 Alfred | https://t.me/AlfredTradesBot?start=PYEaQRV 🔱 KelpDao | https://kelpdao.xyz/restake/?utm_source=0x81f9B40Dee106a4C5822aED7641D5C1e2B40F92 Donate to Leviathan News: https://arbiscan.io/address/0x110d68F5DFA414E943181Dec3346D4CA0d6DE37F Telegram: https://t.me/leviathan_news Twitter: https://twitter.com/leviathan_news Discord: https://discord.gg/7WtnhqJ7za YouTube: https://www.youtube.com/@Leviathan_News Spotify: https://open.spotify.com/show/69yxNKomUIbdNMFoTjp49K
Llama Party feat. 0xMai of Curvance
Gerrit interviews Mai from Curvance. They discuss the evolution of Curvance, its vision as a unified DeFi solution, and its approach to addressing liquidity fragmentation. They also explore the potential of the Polygon aggregation layer and other ecosystems. Additionally, they touch on the recent Uniswap fee mechanism proposal and its impact on the market. The conversation covers various topics related to the Uni token, fees, bad debt, MEV, stablecoins, and the future of DeFi. The drama between Aave and Gauntlet is also discussed. Chapters 00:00 Introduction and Catching Up 01:31 Evolution of Curvance 06:05 Vision of Curvance as a Unified DeFi Solution 09:24 Addressing Liquidity Fragmentation 14:30 Cross-Chain Actions and Fee Distributions 20:12 Grant from Wormhole Foundation 24:58 Addressing Liquidity and Building the Logic Layer 30:37 Hot Takes: Uniswap Fee Mechanism Proposal 31:44 Uni Token and Fees 36:11 Token Value and Integration 37:08 Compound V2 and Bad Debt 38:52 MEV and Stealing 39:49 Oracle Extractable Value 42:44 Aave and Gauntlet Drama 51:38 Y Combinator and Stablecoins 55:46 Stablecoins and Adoption 59:34 The Future of DeFi 01:02:54 Breaking News: Mitch's Deployments 01:03:22 Introduction to LamaLend and CurveUSD 01:04:16 Soft Liquidation Mechanism 01:05:10 Assessing the Risk of Soft Liquidation 01:06:09 Comparison with Silo Finance 01:07:04 Upcoming Llama Party in Denver 01:07:34 Impermanent Loss and Soft Liquidation 01:08:02 Different Approaches to Soft Liquidation 01:09:27 Similarities with Instadap and Frax 01:11:47 Exposure to Impermanent Loss for Lenders 01:12:45 Understanding the Borrowing and Lending Models 01:13:12 Differentiating CurveUSD and LamaLend 01:14:05 Mitch's Unique Approach to Building 01:15:34 Focus on Partner Meetings at ETH Denver 01:18:40 Curvance's Marketing Strategy 01:19:19 Borrowing Against LP Positions 01:20:18 Borrowing Against Single Assets 01:21:09 Borrowing CurveUSD Against FXS 01:22:40 Earning Curve Emissions through Lending 01:23:38 Emissions for Borrowing and Lending 01:25:04 Opportunities at ETH Denver 01:26:30 The Importance of In-Person Meetings 01:28:26 Curvance's Testnet and Points System 01:30:28 The Story behind CurveAnts 01:31:52 The Floppy Icon and Tetris Game 01:34:21 Shoutouts and Conclusion 🦞Want to Support Leviathan? Use our Referral links: ————————————————— 🎯 CVI | https://cvi.finance/#/?ref=leviathan_news 🦗 Grass | https://cvi.finance/#/?ref=leviathan_news 📐 Vertex | https://app.vertexprotocol.com/?referral=3Yznlglxbb 🤵 Alfred | https://t.me/AlfredTradesBot?start=PYEaQRV 🔱 KelpDao | https://kelpdao.xyz/restake/?utm_source=0x81f9B40Dee106a4C5822aED7641D5C1e2B40F92 Donate to Leviathan News: https://arbiscan.io/address/0x110d68F5DFA414E943181Dec3346D4CA0d6DE37F Telegram: https://t.me/leviathan_news Twitter: https://twitter.com/leviathan_news Discord: https://discord.gg/7WtnhqJ7za YouTube: https://www.youtube.com/@Leviathan_News Spotify: https://open.spotify.com/show/69yxNKomUIbdNMFoTjp49K
QiDAO Reclaims Peg, Ends Bad Debt w/ Benjiman
In this conversation, Samuel McCulloch and DeFi Advisoor are joined by Benjamin from QiDAO to discuss the recent good news of repaying all bad debt on Polygon. They delve into the impact of the multi-chain hack on Fantom and the challenges faced by stablecoins in a cross-chain ecosystem. They also explore the legal issues surrounding the hack and the actions taken by various companies. The conversation touches on the importance of native stablecoins and the selection process for cross-chain ecosystems. They discuss the management of treasury and TVL, market perception, and the potential for airdrops. The conversation concludes with a look at the future of Polygon and upcoming announcements at ETH Denver. 🦞Want to Support Leviathan? Use our Referral links: ————————————————— 🎯 CVI | https://cvi.finance/#/?ref=leviathan_news 🦗 Grass | https://cvi.finance/#/?ref=leviathan_news 📐 Vertex | https://app.vertexprotocol.com/?referral=3Yznlglxbb 🤵 Alfred | https://t.me/AlfredTradesBot?start=PYEaQRV 🔱 KelpDao | https://kelpdao.xyz/restake/?utm_source=0x81f9B40Dee106a4C5822aED7641D5C1e2B40F92 Donate to Leviathan News: https://arbiscan.io/address/0x110d68F5DFA414E943181Dec3346D4CA0d6DE37F Telegram: https://t.me/leviathan_news Twitter: https://twitter.com/leviathan_news Discord: https://discord.gg/7WtnhqJ7za YouTube: https://www.youtube.com/@Leviathan_News Spotify: https://open.spotify.com/show/69yxNKomUIbdNMFoTjp49K
