THE STATE OF CRYPTO (4 minute read)
This Twitter thread looks at the state of crypto after the events of this year. These events have caused many major players to die out. The thread looks at how progress with bitcoin, stablecoins, distributed computing, scalability, onchain financial primitives, and governance will make crypto inevitable. Tens of billions in cash is still being deployed into crypto's development.
Curve launched their stablecoin whitepaper today (3 minute read)
A problem with current lending markets is that people can pump the spot price of an illiquid collateral, borrow against these manipulated prices, and then let their positions be liquidated, leaving the protocol with bad, illiquid debt. Curve's lending-liquidating AMM algorithm, or LLAMMA, automatically sells collateral and buys USD as the collateral token price goes down, and it sells USD to buy back the token when the token price rises. This results in a smooth transition and leaves the liquidity pool with enough USD to pay back the debt.