On-Chain Basis Trading Evolves with New Token Options
On-Chain Basis Trading Evolves with New Token Options
馃幆 Basis Trading Gets Naked
On-chain basis trading is evolving through individual tokens, offering alternatives to traditional approaches. Two notable examples:
- Ethena's USDe: A centralized but popular implementation
- 0xflatmoney's UNIT: An emerging decentralized alternative
These tokens simplify delta-neutral basis trading into a straightforward token purchase, while maintaining high yield potential. The key innovation is the removal of centralization barriers while preserving the benefits of perpetual basis trading.
Key benefit: Simplified access to basis trading strategies through single token exposure.
This onchain basis trade exists today in the form of individual tokens. One popular but centralized version being Ethena's USDe. An up and coming version being @0xflatmoney's UNIT. All the benefits of high yield perp basis trade, but striping away centralization
Even within delta neutral, many types of delta neutral exist. One being the basis trade. In a basis trade, yield is earned by arbitraging futures exchanges. In bullish cases, futures markets may pay users to leverage short. Delta neutral yield goes short and hedges long
Derive Protocol Acquisition by Synthetix Raises Community Concerns
The acquisition of Derive Protocol by Synthetix has sparked controversy due to its lack of transparency and community involvement. Drawing parallels with mStable's previous acquisition by dHedge, critics highlight how mStable handled their transition with full community participation and transparency. Key differences in approach: - mStable announced financial challenges early - Explored multiple acquisition offers openly - Gave token holders voting rights - Founders abstained from voting The situation raises important questions about DeFi governance and token holder rights. Two proposed solutions for Derive: 1. Sunset protocol and distribute treasury 2. Open acquisition talks to multiple parties with community input *This case highlights the growing tension between centralized decision-making and DeFi's core values of transparency and community governance.*
mUSD Deprecation Announcement
mUSD and imUSD are entering deprecation phase with immediate effect. Key changes: - New minting of mUSD and imUSD tokens is now disabled - Existing holders can claim their underlying assets - Legacy support application will be updated to facilitate withdrawals This follows similar deprecation patterns seen in the ecosystem, such as the recent rUSD platform shutdown. Users should take action to withdraw their assets through the updated legacy support interface.