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Brian Omondo

@briando

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Brian Omondo
@briando
How geeky must one be to come up with this generalization...
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Brian Omondo
@briando
The AMM function barely moves with large positions, until the very end.
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Brian Omondo
@briando
Someone even pushed the idea further with an ultra-stable variation, called black-hole swap.
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Brian Omondo
@briando
The invention of stable swap AMM formula looks like a geek's work indeed.
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Brian Omondo
@briando
Heard the founder of Curve is a physics PhD.
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Brian Omondo
@briando
That gives its native token CRV lots of value and support.
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Brian Omondo
@briando
So the only way any stablecoin gets serious liquidity and attention, is to bribe or buy itself into Curve's stable swap.
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Brian Omondo
@briando
And so many projects issued stablecoins of their own.
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Brian Omondo
@briando
Their stableswap is the best in Web3 with deepest liquidity.
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Brian Omondo
@briando
The Curve ecosystem runs exactly that way.
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Brian Omondo
@briando
Or, to bribe the token holders to vote for them, if such option exists.
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Brian Omondo
@briando
So the project has strong motivation to buy and hold such tokens.
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Brian Omondo
@briando
And the votes are carried out with the native token of the lending protocol.
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Brian Omondo
@briando
If the lending protocol adopts a DAO model, majority votes in a quorum would be desired to take a new collateral in.
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Brian Omondo
@briando
The protocol, and its token holder will bear huge risk in this scenario.
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Brian Omondo
@briando
What if some big stakeholders of that coin use it as collateral and borrow stablecoin out?
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Brian Omondo
@briando
I'd say giving them a chance to serve as collateral is already a big deal.
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Brian Omondo
@briando
This is to protect borrowers from extreme volatility of alts.
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Brian Omondo
@briando
Altcoins? 30% LTV is high enough. 10-30% usually.
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Brian Omondo
@briando
The LTV allowed for a L1 crypto is usually 60%-80%.
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