Notes On Fantom Unchained ep. 37
Fantom Unchained Episode 37 is out. 👀
This was a technical one.
As usual I took some notes. 👇
Disclaimer: I made these notes for myself and I decided to share them. I make them because it helps me to really focus on what's being said. I noted what I found interesting. Not everything might be here. Nothing here is a financial advice.
Tether Fud
- Tether attestation released. 17% decrease in commercial paper holdings vs prior Q.
- Assets on hand $82bn.
- mha CAYMAN is Tether's auditor. Bebi's says that he doesn't know if he trusts mha CAYMAN.
Some useful links below:
PebbleDB update for go-opera
- Go-Opera - client software for Opera.
- Internal DB they use is LevelDB. LevelDB has a wrapper around, not the fastest.
- All the underlying data for Fantom is stored in it.
- PebbleDB is a newer version. You can process stuff faster.
- Over time this could affect every day users in a positive way. A step towards FVM.
Very tech heavy stuff, not sure I understood it correctly.
fUSD liquidations announced by the Foundation
- A potential stable coin, can be minted in the F wallet, using staked $FTM.
- Has never been pegged due to the fact that liquidations were never made active.
- Liquidation contracts are being audited currently, will be ready in a few weeks.
- The mechanism behind $fUSD is fundamentally different than the one for UST.
- It will be an overcollateralized stable coin, similar to $DAI and $MIM.
- A potential concern: If FTM is the only collateral being used. It puts us at some risk of very large cascading liquidations.
- It basically leverages the price of $FTM for everyone.
- Bebis addresses this concern. He also says that cascading liquidations are gonna happen no matter what.
- $fUSD is not overcollateralized at the moment. 22.9m $fUSD in circulation. Only 22.4m USD worth of $FTM.
- If $FTM price keeps going down, that's a big issue.
- There are 3 addresses that make up 90% of total supply of $fUSD.
- Needs better communication of what's going to happen with this. Twitter 280 characters is not enough.
- Seems like governance of this has been abandoned, nothing is reaching quorum, doing Twitter polls.
- People are scared $DEUS running this, given their own problems.
- Bebis said that it would be easier to just create a new protocol.
- A single address can mint $sFTM and use it as collateral for $fUSD.
- Only that same address can repay the debt and unlock the underlying $FTM.
- It's impossible for an external liquidator to liquidate the position. All of these contracts can be changed, however.
- Bebis is not sure it's going to be easy to update the contracts. Not sure technically speaking how they are going to be running the liquidations.
- Support for Stader would be cool, they have neat tech.
- A problem with a Stader is that you are handing over your governance. Not sure if they have a process set up for governance.
- If fUSD is worth $0.30, there are many projects that are worth nothing as a result of a failed project. Why care so much about it?
- A lot of cool tech on-chain that could accomplish the same thing without dealing with the technical difficulties of $fUSD.
- Bebis says that there are a lot of questions on how things are set up right now. No real ways of finding answers without intense data modeling.
- Bebis wouldn't compare $stETH to $sFTM. $stETH you can utilize anywhere, anyhow.
- With $fUSD the $FTM price is going to go up faster because people are going to use it to mint $fUSD and it's going to go down a lot faster because of the liquidations on the way down.
Scream insolvency issue, what happened?
- Revenant token was dedicated to getting $fUSD close to a dollar.
- To do that they added $fUSD as a collateral. With a cap. The cap was 2-3mil $fUSD.
- $fUSD limit was set to zero which means infinite.
- If you see a lending market that puts a stable coin in it with a high risk of potential de-pegging, buy it.
- Take a loan against it. If it does de-peg, you are going to make money on it.
- People are not making sure they are not taking on too much counter party risk, that they are maintaining a healthy debt ceiling.
- Users don't know what that is. Separate marketing from robust financial instruments / tech.
- Nodo38 minted a bunch of $fUSD, put it on SCREAM, it was hardcoded to a dollar and pulled out. Did he really exploit the protocol or he just did what he was allowed to do?
- Bebis says that it's better that it's done by a Nodo (@nodo38FTM) than anyone else.
- Mistakes done by the developers, exploiting inefficiencies in the software. Need to go slowly, simulate all your transactions.
- Do we need to slow down and pay more attention to detail? Do your testing, do your simulating.
Incentive changes, Gitcoin to deploy on Fantom mainnet
- Not all feedback has been heard.
- Doublesharp advocate for deploying for $FTM instead of ethereum mainnet.
- The gap in funding isn't addressed, funding is needed now. The actual timeline is 6 months.
- Fantom foundation has been talking to projects. Feedback from the projects is not positive (?).
- Out of all the options this probably is the best one.
- Gitcoin is awesome.
- Overall FTM is in a better position than it was last week.
What is needed:
- Communication on the execution
- Timing on integration need to be transparent
- Complete details on the matches
$DEI depeg! What it means for DEUS?
- They were taking on a lot of risk.
- Lengthy explanation from Bebis. I suggest you watch the video.
- When you are monitoring monetary policy. You only need to monitor two parameters.
All the DEI in existence and your backing.
- If they play their cards correctly they can get out of this situation.
- Lafa's principle is that the best monetary policy is governed by the Fed. That is done through US treasury bonds.
- His vision for stable coins to work is to be backed by a treasury system.
- Let's see how this plays out.
Gas price estimates being added to the SFC
- This has been implemented last night already.
- You can get an accurate estimate on the min gas price.
- Smoother curve for gas prices without huge spikes.
Transaction fees scheduled to be removed from the total supply
- It's done.
- Some technical stuff.
The future of bribes in a down market
- Bribes are indicative of where the overall market is.
- Bribes are very low.
- Yields are down by a lot when you look at the amount in USD.
I highly recommend watching the full episode.
My Twitter thread.
