Julian

@julianma

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147 Followers

Barnabé Monnot pfp

Barnabé Monnot

Insane levels of alpha this week on the Berlin office whiteboards! Expect a lot more not-hackmd's...

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caspar pfp

thanks for having us on and the productive back and forth @hasu @joncharbonneau! staking economics is a super important topic and hopefully this convo helps to give more context on the intentions of our proposals and how we see things :)

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Julian pfp

Find the post here:https://ethresear.ch/t/initial-analysis-of-stake-distribution/19014

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Julian pfp

We model an investor deciding how to stake its ETH with a simple linear programming problem. The model is simplified and not meant to be holistic. Rather, we want it to base the conversation around staking economics in addressable models and encourage others to iterate!

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Julian pfp

New post exploring the impact of issuance on Ethereum staking! A decentralized distribution of stake is important. Our analysis shows that stake distribution remains unaffected by the level of issuance.

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Julian pfp

Thanks for the suggestion, definitely something we will look into. Different but related. The authors of this paper use a sequential model to model the adverse selection costs of JIT LPs on passive LPs https://arxiv.org/abs/2311.18164

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Julian pfp

This paper shows the cost of permissionless liquidity provision in AMMs, check the full thread here 😀

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Julian pfp

For the full paper, see https://arxiv.org/abs/2402.18256

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Julian pfp

The intuition is that as the arbitrage intensity per unit of liquidity decreases, more liquidity flows in, so the total amount of arbitrage may not decrease proportionally.

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Julian pfp

Finally, we show that clever AMM design may reduce the arbitrage intensity per unit of liquidity but that this does not lead to a proportional decrease in the total amount of arbitrage and, under some circumstances, even an increase.

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Julian pfp

Our main result is that the price of anarchy, defined over the liquidity provider performance, is O(N), meaning that the welfare loss to LPs scales linearly with the number of passive LPs

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Julian pfp

These two effects are not aligned because the marginal LP tries to get some of the fee revenue obtained in the AMM without this additional liquidity. This means that LPs deposit liquidity beyond the optimal point: where fee revenues equals adverse selection and opportunity costs

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Julian pfp

Passive LPs have two reasons to deposit liquidity. More liquidity induces more trading demand, and leads to a greater share of total fee revenue, since fee revenues are distributed proportional to the fraction of liquidity provided. The liquidity and competition effect

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Julian pfp

Excited to release a new paper with @davidecrapis! We present a game theoretic model of simultaneous liquidity provision by passive LPs. We show that competition between liquidity providers causes a loss in total LP welfare that grows linearly with the number of passive LPs.

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Julian pfp

Really exciting work from @barnabe !

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Julian pfp

Congratulations!

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soispoke pfp

🚨New post: The price is right: Realigning builder-proposer incentives with predictive MEV-burn tldr: efficiently burning MEV on a single-slot basis is hard, but here are some thoughts :-) https://ethresear.ch/t/the-price-is-right-realigning-proposer-builder-incentives-with-predictive-mev-burn/18656

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Barnabé Monnot pfp

Barnabé Monnot

A new academic grants round was released today! Find a bucket list of ideas in the wishlist, and let your favourite academics know they can apply to work on these problems 🧑‍🏫 https://esp.ethereum.foundation/academic-grants

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Barnabé Monnot pfp

Barnabé Monnot

Here is a new RIG Open Problem on the specification of a Multiplicity gadget in the context of Ethereum’s Gasper consensus. Good problem for a consensus researcher interested in censorship-resistance! https://efdn.notion.site/ROP-9-Multiplicity-gadgets-for-censorship-resistance-7def9d354f8a4ed5a0722f4eb04ca73b

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Barnabé Monnot pfp

Barnabé Monnot

Check out the latest post by @anderselowsson on ethresearch: "Properties of issuance level: consensus incentives and variability across potential reward curves" https://ethresear.ch/t/properties-of-issuance-level-consensus-incentives-and-variability-across-potential-reward-curves/18448?u=barnabe

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