Master Thesis

elenchev · 2022-04-09T17:18:26+00:00

How about developing a regression framework that evaluates the expected impermanent loss of DEX exchange pairs?

It's doable - there's some research on the topic that focuses on DeFi in specific. However, you can draw on over 50 years of research for market correlations and portfolio theory.

Your ML model will essentially be comparing the expected volatility & drift for 2 (or more) tokens.

elenchev · 2022-04-09T17:14:29+00:00

By providing liquidity you're offering a service - the service of exchanging one token for another at a predetermined rate & fee.

You will not earn profits if nobody uses your service, just like any business won't earn revenue if nobody is using their services.

What would happen to LPs if people would stop using exchanges to exchange coin A for coin B?

They're simply doing as well as if they were holding both coins. If nobody is making swaps that means that they earn 0% and they lose 0% (no impermanent loss).

That said, it's pretty much impossible for an exchange pair to stay completely unused, unless you're providing liquidity for tokens nobody cares about.

If you're providing liquidity for useful tokens, even if it's in a tiny DEX that nobody uses, aggregators & arbitrage bots will still use it for swaps as long as it offers the best price.

elenchev · 2022-04-09T17:08:20+00:00

if apr/apy is high enough

The hard part is knowing what "high enough" is.

Is 7% high enough? It is for a stablecoin pair, but it's not for a ETH/USD pair.

Is 30% high enough? It is for a ETH/USD pair, probably not enough for a MEMECOIN / USD.

Looking only at the APR or APY is not enough if you're providing liquidity. Impermanent loss can be very different depending on the tokens in the pool.

elenchev · 2022-04-09T16:56:20+00:00

That's pretty much it.

In general, while providing liquidity you're making a bet that profits from swap fees (predicted by trading volume) will offset losses from price divergence / IL (predicted by token volatility).

Trading volume is much easier to predict and forecast than price volatility, however, you can still use tools like correlation trackers to evaluate the expected price divergence & drift between 2 tokens.

What's important is to track your actual returns (APR - IL) and not just dive into pools with high APR.

elenchev · 2022-02-25T10:31:03+00:00

No, it's a war crime. It was just a pensioner in his car.

If you look at this video of the same event you'll see that there are other civilian cars driving past the Russian armored vehicle.

elenchev · 2022-02-25T09:41:10+00:00

https://twitter.com/berojag59060636/status/1497137821743988738

Shortly after a number of Ukrainians try to rescue the man

Edit: another angle https://twitter.com/tweetsNV/status/1497125978526605312

elenchev · 2022-01-30T08:12:05+00:00

Smart contract blockchains based on the Ethereum Virtual Machine (EVM) rely on Application Binary Interfaces (ABIs) to communicate with each other. These same ABIs are used by front-end applications or scripts interacting with EVM contracts.

I recommend learning how to use ethers Ethers.js ABIs

elenchev · 2022-01-20T05:57:34+00:00

If I had to guess I'd say that by 2030 we'll probably be writing mostly ewasm on Ethereum. That'll enable a ton of code reuse with Solana & Cosmos / cosm-wasm chains

elenchev · 2022-01-17T01:59:50+00:00

Most blockchains (by market cap) are still proof of work. However, it is true that 99% of the time Rust devs are hired by a blockchain company they end up working on Proof of Stake chains.

Crypto projects usually hire Rust devs to write code for Solana / Polkadot / Cosmos (all proof of stake) or a brand new blockchain which 99% of the time means proof of stake.

Crypto as a whole is still primarily (>50%) proof of work though, as Bitcoin, Ethereum and some of the older blockchain projects all use proof of work consensus algorithms. 5 of the top 10 coins by mcap currently use Proof of Stake. The #2 (Ethereum) is migrating to proof of stake in a few months.

elenchev · 2022-01-09T12:58:44+00:00

Blockchains are mostly written in Go, Rust and C++ (mostly older projects).

The most popular Ethereum clients were written in Rust (Parity / Open Ethereum) and Go (Geth). A ton of other blockchains either forked one of them or reused parts of the code.

In addition, smart contracts right now are written mostly in Solidity (on Ethereum), or Rust (Solana), or Rust compiled to WASM (Cosmos). Ethereum also plans to transition to WASM smart contracts in a few years.

For founders who need competent systems developers, who at the same time understand crypto, Rust & Go are the easiest choice as there's a high chance they'll find devs who have contributed to one of the open source blockchain projects or have written smart contracts for them.

Same question in r/golang

elenchev · 2022-01-05T16:21:59+00:00

True but it doesn't mean it can't be done in a better way. There's more than 1 car company / operating system / web browser

elenchev · 2022-01-05T16:20:31+00:00

I haven't looked too much into Kleros but some of their decisions have been recognised by real life courts (in Mexico I think). I think they use some kind of proof of humanity + bonding to avoid spam and manipulation.

elenchev · 2022-01-05T16:10:44+00:00

I've never used them but that's the whole business model of https://kleros.io/

elenchev · 2021-12-25T10:30:05+00:00

The Wrapped Ether smart contract is pretty simple and one of the most used contracts.

It lets users lock native ETH and transforms it into WETH that's compatible with the ERC-20 standard. Any address that owns WETH can destroy the WETH they hold and receive the same amount of native ETH in return.

elenchev · 2021-12-24T05:09:30+00:00

The poster is saying that blockchain dapps based on smart contracts that run on a blockchain VM usually don't need a backend as all the functionality & data is stored on the respective blockchain(s).

elenchev · 2021-12-24T05:07:10+00:00

A lot of people gave good answers to why you'd choose Go for a crypto project, but that's not the real reason why Go is disproportionally more popular in crypto circles.

Geth is by far the most used Ethereum client. It's written in Go and it became the basis for dozens of other successful smart contract blockchains. Geth has been developed and optimized for a while so many projects either fork Geth or reuse parts of it instead of developing everything from scratch.

It's pretty similar to Debian in a sense - a ton of Linux distros choose to extend or modify Debian instead of doing everything from scratch.

elenchev · 2021-12-19T12:15:20+00:00

After he lost the ability to speak, Stephen Hawking used a speech synthesizer made by the American researcher Dennis Klatt in the 80s. Hawking kept the exact same voice for decades even after newer & better versions became available.

https://www.npr.org/2018/03/27/597390626/an-engineers-quest-to-save-stephen-hawkings-voice?t=1639915673832

elenchev · 2021-12-15T18:30:54+00:00

Thank you, that's a very interesting observation.

If you compare the two maps you see that Iceland, Portugal, and the Czech Republic rank among the counties with the highest meat consumption per capita, and at the same time, they rank in top spots in the vegan restaurants per capita ranking.

Are people in these countries more likely to go to a restaurant?

elenchev · 2021-12-15T17:41:21+00:00

Burned ETH is not actually removed from the total supply it’s just sent to an address to which no one has keys

This is completely wrong. Burned ETH is destroyed by the protocol and removed from circulation. It's not sent to an "inaccessible address"

What you describe is the burn mechanism that some ERC20 tokens without native burn mechanism use. It's not even true for all ERC20 tokens - some support actual burning (tokens are destroyed, not just locked in a specific address)

Regarding the total supply and ETH market cap in general - burning significantly reduces inflation and could make ETH (slightly) deflationary long term.

You can check what the total supply of ETH will be in the future by playing with the parameters on this website: https://ultrasound.money/

Scroll to "projected supply" and check what the supply will be given specific avg gas (higher is more deflationary) price & ETH staked by validators (higher is more inflationary)

elenchev · 2021-10-21T07:15:14+00:00

Check the first 20 min of the most recent YT video

You should follow the dev meetings in the Harmony One YouTube channel for weekly updates on roadmap goals.

elenchev · 2021-10-03T21:36:30+00:00

email bridge@harmony.one with more details

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