indigo (b/acc)

@ind-igo

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151 Followers

indigo (b/acc) pfp

Very kind of you, thank you!

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I think this current turmoil will increasingly drive demand for BTC as a global reserve asset, one that countries and individuals alike will see as a safe haven.

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Adjacent to this, countries used to rely on USD as relatively credibly neutral reserves. But with bidens freezing of Russian assets and now these tariffs, the US has effectively flipped its stance on the triffin dilemma, and has lost credibility towards being the global reserve. But what else would the world use? BRICs doesn't sound too neutral to me. As the world becomes more isolationist, the two options that the globe will demand are gold, and our favorite, BTC.

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My very reductionist hot take: This is when BTC truly becomes global digital gold. Higher tariffs (or even the threat of them) lead to increased isolationism and self-reliance for all countries. This means countries which used to rely heavily on US now have to invest in their own economies. Each of these governments must now increase deficit spending to fund these initiatives. Money printing across the globe in order to fuel it. And what does the avg person buy when their local currency is inflating?

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Had my account reported for spam awhile ago. You have to keep trying with support, there's no other way. I've been told that paying for premium helps expedite things but I really don't know.

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indigo (b/acc) pfp

Correct. The BMM automatically manages this internally. It will make use of whatever is available to it, just like a market maker would. The spreads would be adjusted as well

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↑langchain 🎩 pfp

↑langchain 🎩

Once again, I don’t think people really understand liquidity at all. Deep liquidity or thin realistically doesn’t matter bc the MMs will pull when the music stops. The death spirals are inevitable & no real size can play unless it’s coordinated with an MM. Anyway, @baselinemarkets

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indigo (b/acc) pfp

Hey just got around to answering these, had a busy week. Thank you so much for the shoutout. https://warpcast.com/ind-igo/0x4e72c28b Happy to answer any other questions!

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The fundamental insight for Baseline is that a smart contract given protocol-owned liquidity can behave more like a central bank for a token than a traditional market maker or a pool2 LP. Its incentives are completely flipped from what we know; It can act selflessly to support the traders and holders of the market. What we've built so far is all in service of exploring this space, to find a better alternative to the toxic dynamic of most crypto markets. Follow along at @baselinemarkets

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4. Not yet. Can work on putting this out some time in the future. We're a small team though with a lot to do. 5. Funny you mention this. We started this project as a toy during the 2023 bear market, as something called Jimbo protocol, that was built on Trader Joe's liquidity book (a CSMM). The system got hacked, and due to various reasons, we decided to port the system to Uniswap. This is how Baseline was born. Your intuition is correct, the system works a bit simpler in a CSMM, but uniswap also has its unique advantages. Just tradeoffs in the end.

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1: there is no IL to the protocol. The entire token supply originates in the BMM, it calculates a BLV based on the reserves it has at any moment, which it deems as its price that it is willing to buyback the entire supply at. Any selling of the token above BLV is "profitable" to the system, no matter what. It will also willingly hold on to the tokens forever, until someone buys it at a price it sets on its own. There's more nuance here but this is the simplest way to look at it. 2. There are bounds of when the BMM is willing to rebalance. If the rebalance causes us to be in a state we do not like, then we simply do not rebalance. Again, there's no inventory risk, so BMM is totally fine waiting. 3. Nope. However, we are making improvements to the system constantly to make it more profitable. Its not perfect but we get closer with each iteration.

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A user asked some great questions about @baselinemarkets and wanted to take the time to answer publicly. I think Baseline is one of the coolest systems being built in crypto, but I don't think many understand wtf we're doing. So I'll start with a bit of context. The concept of IL is a bit incomplete on its own. You have to look at it as "inventory risk", how much risk are you taking on for holding this position vs holding spot. Further, it is a very profit-seeking human way of looking at LPing. In context of the BMM, is not only a market maker, it is also the issuer and originator of the asset. It is *completely fine* holding the token forever, therefore, 0 inventory risk. Its a smart contract, with its sole job to ensure the health of the market, via providing liquidity in the pool, lending, and supporting price. so to answer the questions:

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@baselinemarkets

🚨 First stress test for Baseline's V3 Market Maker 🚨 The results: 💰 $2.3M sell-off 📉 Price dropped just -15% 📉 Market cap $61M -> $51M How did our market maker handle it? And how does this liquidity compare to a basic XY=K AMM? Let's break it down 👇

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indigo (b/acc) pfp

Having so much fun with claude code. I'm finally building things I never had the time to do, in literally hours. Made a little game thats been stuck in my head for years. Im absolutely dumbfounded how good this tool is. Feels like a whole new world has opened up.

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Havent tried, but I foresee dealing with gitmodules being your biggest hurdle, unfortunately. Its sad evm community cannot agree on a single package management system.

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gresham's law is just entropy for money

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indigo (b/acc) pfp

Interesting that coinbase wallet is integrating farcaster, and warpcast making their own wallet. Whats the theory here? Isn't it better to collaborate if you're already working this closely together? cc @v @dwr.eth

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indigo (b/acc) pfp

Remember Ichi finance?

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indigo (b/acc) pfp

(complete data noob here) I've been curious about this. My impression was usually that indexed data is more or less read-only, and an OLAP db might fit well as a data source. Can you explain more what you mean by the OLTP-ness of indexing workloads?

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indigo (b/acc) pfp

Its sad. The fragmentation of liquidity and experience has killed evm UX. One click swaps are another example. I'm trying something to solve this for our own app, having AA wallet creation and management be done on the backend, controlled by a signer, and swapping/bridging completely abstracted.

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