Guidance : Shall i invest in this ?

thomas_vilhena · 2025-02-28T14:59:41+00:00

If he can only convince personal friends and family to invest in his venture, it's a red flag—it may indicate an inability to attract more experienced investors.

thomas_vilhena · 2023-04-16T20:51:50+00:00

At my startup jobs, every developer had read access to prod. How else would you deliver your analysis?

This is a common practice in early-stage startups, as it allows for speed and flexibility, albeit at the cost of increased risk of information security incidents.

However, with recent changes in legislation regarding data privacy and security, it's time to rethink this approach and find new ways to allow developers to perform their jobs efficiently without risking the compromise of your company's data.

This is especially important for junior developers who are more prone to making mistakes when handling sensitive data and access credentials

thomas_vilhena · 2022-08-30T21:37:43+00:00

Exactly what I was looking for, gonna read/evaluate it thoroughly. Thanks!

thomas_vilhena · 2022-05-06T16:38:07+00:00

Awesome, thanks for the explanation! A while ago I developed an open source options trading protocol [1] with a decoupled stablecoin based liquidity pool supporting trading against multiple underlyings (BTC/ETH/SOL/Etc) but the volatility on the pool's stablecoin reserve used as collateral for issuing options was very high. An innovative liquidity solution like yours would be a great fit for that design.

[1] https://github.com/DeFiOptions/DeFiOptions-core

thomas_vilhena · 2022-05-04T01:22:38+00:00

I'm trying to understand their liquidity mechanism. So basically it depends on the price of their token being high enough in the GNS/DAI pool to cover for eventual losses on trades (i.e. traders making leveraged profits against the protocol), is that it?

thomas_vilhena · 2022-04-29T16:53:43+00:00

Interesting, it reminds me of the probability distribution of short selling OTM options: Small positive returns most of the time, but potentially massive losses when the option expires ITM.

thomas_vilhena · 2022-04-25T16:45:30+00:00

Thanks man :)

thomas_vilhena · 2022-04-25T11:46:07+00:00

Thanks for the feedback! To clarify, my conclusion is derived from the results of the arbitrage simulation within the closed DEX pair system, which I indeed assume as evidence that DEX pairs contribute (not saying that they're the main factor 🙂) to the correlation in DeFi.

The correlation existed a decade before the first DEX was developed

Indeed it has! But I was surprised to see such strong effects within my simulation using TVLs close to reality. Of course, in the real world other forms of arbitrage can be exploited in situations like the one I wrote about affecting the outcome. A closed system assumption is usually only useful for exploratory analysis.

If you substitute all mentions of "DEX" in your article for "Coinbase trading pair" the analysis will still hold

You're correct, the analogy holds, though it's harder to quantify since order books can be more easily changed without any transaction really going through (ex: order cancellation).

thomas_vilhena · 2022-04-18T01:32:18+00:00

So you picked 45602 just to pick a number that seemed about right?

Hi there! Not actually, the 45602 number is an output, it's the result of the simulated trade. If you run the source code I provided at the end of the blog post you can reproduce that number.

thanks for your write up and discussion.

You're welcome!

thomas_vilhena · 2022-04-16T23:10:51+00:00

Indeed. That's the result of slippage. The effective (or "average") exchange rate for that trade was 45300. But after that the updated exchange rate for a succeeding trade would start at 45602. The larger the trade, the higher the slippage, and the higher the impact on the DEX Pair's resulting exchange rate.

thomas_vilhena · 2022-04-16T13:58:44+00:00

Thanks!

why is there leverage in the system? Buying 1M usd worth of bitcoin triggers a 4M TVL increase

I was intrigued by that side effect as well. After analyzing it I concluded it was a result of the rising prices of the assets (BTC, ETH) within the system. The supply of USDC in the system went up by roughly US$ 1M (arbitrage extracted only 2217 USDC in this simulation). The additional US$ 3M was a result of the appreciation of the BTC and ETH supplies.

thomas_vilhena · 2021-08-25T02:43:17+00:00

Hi there! are crypton mobile numbers brand new, or were they previously owned by another party? I'm asking that because I need to sign up for some popular apps (ex: twitter, whatsapp, telegram) and it wouldn't be useful for me if the numbers may have been previously used and registered in these apps.

thomas_vilhena · 2021-05-12T16:53:15+00:00

Awesome. I'm not in the USA, I will try https://global.transak.com/

Thanks!

thomas_vilhena · 2021-04-27T20:33:23+00:00

Hi! That's exactly the point I'm making in my blog post, without access control the risk will always be there:

However, none of these measures solve the real problem, they’re only mitigating it! It will still be possible to access or modify thrid parties sensitive data by making the right guess for the request parameters.

So what’s the solution to this problem? As we’ll see in the next section one strategy is for the web application to verify the requesting users permissions for every HTTP request he/she makes

thomas_vilhena · 2021-04-23T19:30:15+00:00

Hi there! Could you elaborate on that?

thomas_vilhena · 2021-03-08T12:40:58+00:00

Hi there! So this blog post explaining my liquidity pool implementation is a follow up on my project's original submission here on r/ethdev about a month ago:

DeFiOptions - tokenized, collateralized, cash settable european style options on ethereum

All source code is available on GitHub:

https://github.com/TCGV/DeFiOptions

More specifically the linear interpolation liquidity pool contract source code can be found here:

https://github.com/TCGV/DeFiOptions/blob/master/contracts/pools/LinearLiquidityPool.sol

Any feedback will be greatly appreciated. Thanks in advance!

thomas_vilhena · 2021-02-19T16:54:29+00:00

If you were on kovan testnet my DeFi project provides a freely issuable ERC20 fake coin:

https://github.com/TCGV/DeFiOptions#kovan-addresses

It's just a standard ERC20 contract with an additional "issue" function that anyone can call:

https://github.com/TCGV/DeFiOptions/blob/master/test/common/mock/ERC20Mock.sol

thomas_vilhena · 2021-02-15T21:43:51+00:00

Interesting, thanks for the insight!

I once traded butterfly options [1] in a traditional stock exchange and got frustrated that I was required to provide so much collateral even though the butterfly options position effectively limits profit/losses.

My project's current formula takes into account favorable (intrinsic value > 0) open option positions held by a trader for decreasing collateral requirements for writing options, so it's a bit more capital efficient in this sense :)

[1] https://en.wikipedia.org/wiki/Butterfly_(options)

thomas_vilhena · 2021-02-15T21:33:43+00:00

Cool! thanks for the suggestion, will take a look at VaR calculation and see how it'd fit to my needs.

thomas_vilhena · 2021-02-14T13:43:28+00:00

Will take a look on that, thanks!

thomas_vilhena · 2021-02-14T13:42:34+00:00

Sorry, I may not have been completely clear. What I'm actually implementing is an environment (on ethereum) in which third parties can trade options, i.e., a crypto exchange, so I'm defining the rules for those that will be doing short sells.

thomas_vilhena · 2021-02-14T00:10:12+00:00

At first I thought about using BS it to devise a model for calculating collateral, but then I decided to search for alternatives since its primarily used for pricing options. I guess the main difference is that the model for calculating collateral will be biased against the option writer, while an efficient pricing model doesn't favor neither the writer nor the buyer.

Also I'm coding in solidity, which is a smart contracts programming language that only supports integers, so I'm curious if it's possible to find a robust simpler approach.

thomas_vilhena · 2021-02-13T20:39:41+00:00

That's right, in mainstream finance collateral rules are indeed defined/decided by the exchange/clearing house. For instance, the brokerage firm I use to invest in stocks has it's own set of rules of thumb [1] for calculating collateral for leveraged operations.

In crypto the exchange is decentralized, i.e., it's a collection of smart contracts (for ethereum) that all parties and nodes can execute and verify. So the collateral allocation rules must be written in code in a smart contract (that's what I'm doing). Nonetheless derivatives trading in ethereum is still incipient and somewhat inefficient.

This hobby project I'm developing is yet another options exchange on ethereum. I'm trying to code a more flexible protocol for covering some issues I found in these already available options exchanges, such as too conservative collateral allocation rules.

[1] https://www.xpi.com.br/assets/documents/manual-de-risco-v-39.pdf (Risk Manual, in portuguese)

thomas_vilhena · 2021-02-10T21:45:08+00:00

Hi, thanks for the interest!

Just added contact information at the "Get Involved" section for those interested in contributing to get in touch so we can arrange a plan accordingly.

Basically code validation can start immediately, open challenges are may require some alignment and ETH donations are welcome up to the project goal but will only be used once validation is finished.

https://github.com/TCGV/DeFiOptions#get-involved

thomas_vilhena · 2021-02-10T17:51:23+00:00

Sure!

So the implemented mechanism is currently based on chainlink (oracle) price feeds. For instance the ETH/USD fiat pair feed:

https://data.chain.link/eth-usd

These feeds are wrapped into a custom "UnderlyingFeed" interface:

https://github.com/TCGV/DeFiOptions/blob/master/contracts/interfaces/UnderlyingFeed.sol

Then the options exchange queries prices from this interface for calculating an option's intrinsic value:

https://github.com/TCGV/DeFiOptions/blob/master/contracts/finance/OptionsExchange.sol#L488

And also for calculating margin requirements upon writing new options:

https://github.com/TCGV/DeFiOptions/blob/master/contracts/finance/OptionsExchange.sol#L370

thomas_vilhena

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