Alex Nezlobin @0x94305 Twitter profile

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Alex Nezlobin

10 months

So it begins. How do we cut the losses of LPs to arbitrageurs by 95%? Let's start with a simple trick that should give us 10-15% right away... 1/

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Alex Nezlobin

@0x94305

1 year

1/ The new Curve stablecoin whitepaper is not an easy read, but I think I got through it. Let me share my first thoughts; caveat emptor applies. At the center of the mechanism lies a new AMM called LLAMMA. I'll discuss only this component for now...

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Alex Nezlobin

@0x94305

1 year

1/ What is the optimal way to extract MEV from a large uninformed swap? I'll show you three strategies with different returns and of different levels of ungodliness. The best one will surprise you! So, let's say Ben wants to buy six units of liquidity as in the picture below..

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Alex Nezlobin

@0x94305

1 year

Pro tip: to get street cred in the DeFI community, you can start flaunting words like “martingale”, “risk-neutral measure”, and “Radon–Nikodym derivative”. If you encounter a finance bro calling your bluff, immediately switch topic to MEV in ZK rollups.

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Alex Nezlobin

@0x94305

1 year

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Alex Nezlobin

@0x94305

1 year

1/ Frequent batch auctions (FBAs) are a perfect nerd-snipe. They almost don't exist irl, yet smart people can argue for hours if they can solve hft. In this 🧵, I'll explain why 1. the original FBA argument is likely flawed 2. their application in crypto is also problematic

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Alex Nezlobin

@0x94305

2 years

Ok frens, I promised big ideas this week - time to lay them bare. Let's talk about multiblock MEV, but not the usual kind. Instead I'll focus on something I believe is new and unexplored. I'll call it *lazy* multiblock MEV... [1/n]

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Alex Nezlobin

@0x94305

1 year

I am told that Vitalik is refusing to tweet in 2023 until I post a thread of my best 2022 threads. Childish behavior really, but if that what it takes, here you go. My top 2022 🧵🧵 + bonus

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Alex Nezlobin

@0x94305

1 year

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Alex Nezlobin

@0x94305

1 year

You may have heard that MEV Blocker refunds users for the MEV of their of transactions. I have looked at these refunds and here is what I learned. (Spicy questions for CoWSwap and Co included)🧵 1/

CoW DAO | MEV Blocker & CoW Swap

@CoWSwap

1 year

CoW Swap, in collaboration with @beaverbuild and Agnostic Relayer, is proud to announce MEV Blocker. ⛱️ MEV Blocker is a free RPC endpoint that *pays users* to protect themselves from MEV across a wide variety of use cases in DeFi, NFTs, and dApps.

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Alex Nezlobin

@0x94305

1 year

You may not like to hear, but CitSec is absolutely, mathematically correct on this one. Government bureaucrats shouldn't be allowed to larp as market designers unless they can show clear, massive and immediate benefits to doing so. I looked at the SEC data and it's pure mess 1/

Citadel Securities

@citsecurities

1 year

The SEC suggests that its Order Competition proposal could save retail investors $1.5B a year. We analyzed the data and determined that retail investors would actually lose $2.4B. See the full interview at

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Alex Nezlobin

@0x94305

1 year

1/ A few thoughts on the optimal extraction of stat arb MEV. Feels like this topic is crucial for many discussions happening on CT - from SUAVE to order flow auctions to LP profitability - but is still relatively underexplored. So here is my "MEV microstructure" thread

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Alex Nezlobin

@0x94305

7 months

Minimum viable enshrinement (MVE) is the new talk in Ethereum town. MVE of MEV on the EVM. The war on dyslexic degens continues.

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Alex Nezlobin

@0x94305

8 months

Intents aren’t “just limit orders.” Soon you‘ll be signing messages like “I want to sandwich some also-ran for $20” or “I want to hack a protocol for $2M.” No other details - the best searchers will step up to fill your intent and return the MEV to you in a competitive auction.

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Alex Nezlobin

@0x94305

1 year

Now that you know about jaredfromsubway's strengths, let me tell you about its weakness. This bot is not as sophisticated as you might think. How do I know this? Because it regularly leaves money on the table. And by "money" I mean risk-free, atomic opportunities. 1/

@bertcmiller ⚡️🤖

@bertcmiller

1 year

jaredfromsubway.eth's alpha and how to stop him

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Alex Nezlobin

@0x94305

2 years

1/ While Uniswap Research is working on fixing their LP returns study (I hope they are!), let me do a bit of explanatory journalism. What is the *realized* spread, how is it related to LVR, and why should you always use it in LP decisions instead of IL+fees?

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Alex Nezlobin

@0x94305

2 years

1/ Stat arb is the most significant threat to Ethereum decentralization under PoS. And PBS is unlikely to solve the problem. We already discussed one reason for this: multiblock MEV creates increasing returns to scale, which benefit large proposers. There are two more...

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Alex Nezlobin

@0x94305

1 year

1/ This is a big topic and I actually know little about it, but such little things never stopped me. Today, let's take a critical look at SUAVE, the future of MEV according to Flashbots.

Hasu⚡️🤖

@hasufl

1 year

We are excited to make our biggest announcement to date. After successfully isolating the centralizing effects of MEV to the block builder role, we are turning toward a new challenge: To decentralize block building itself.

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Alex Nezlobin

@0x94305

11 months

My kids are allowed one hour of video games per day. A while ago, they asked me if Roblox counts towards the limit - technically, they are not playing but developing their own games in it. I immediately told them that the rules are clear and left the room. My wife and I are…

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Alex Nezlobin

@0x94305

1 year

1/ I promised a while ago a thread on how the losses of Uniswap LPs to arbs depend on fees, volatility and block times. But then got distracted - first with markouts, then Curve stablecoin, then FBAs, and then a Twitter space on AMMs. Time to return to the topic eternal...

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Alex Nezlobin

@0x94305

7 months

BREAKING: Cointelegraph successfully tests the first hook that improves LP profitability

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Alex Nezlobin

@0x94305

1 year

1/ Let's take a closer look at that ENS DAO transaction on CoWSwap. Background: The DAO decided to yolo 10,000 ETH ->USDC in a single trade. Got filled on CoWSwap, no 🥪. How efficient was the execution? Has CoWSwap solved MEV? What are the big remaining mysteries?

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Alex Nezlobin

@0x94305

10 months

Over the next few days, I will: 1. Share a simple trick that can reduce the losses of LPs to arbitrageurs by 10-15%. Every DEX will want to do it. (ETD is tomorrow 12 noon Pacific). 2. Drop a new LVR formula. But the real goal should be to cut the losses by 95%. I think there…

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Alex Nezlobin

@0x94305

1 year

We are receiving reports that Citadel has generated a profit for its clients this year. Profitable Uniswap LPs could not be reached for comment by press time.

Guillaume Lambert

@guil_lambert

1 year

Citadel returns are only 44% of their overall profit this year. Guess where the rest is going? In other news: Uniswap expects to return 100% of its profits to its LPs. Or maybe its 90% if the fee switch is enabled, with the 10% balance going towards public goods funding.

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Alex Nezlobin

@0x94305

1 year

1/ It's very simple. Integrated searcher-builders who get private order flow are risking ending up (unknowingly) insider trading. Tools that promise front-running protection or privacy shouldn't send transactions to such builders. Other builders should publicly commit not to..

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Alex Nezlobin

@0x94305

1 year

A new study of Uniswap LP returns by @charliemktplace made a splash on CT. So I poured a glass of red and dived in. Here is what I dived out with. Two main points. 1. I always get very suspicious when the main result is stated in terms of some awkward metric.

charlie marketplace

@charliemktplace

1 year

Uniswap Alpha leak 🧵 - The most in depth divergent loss analysis *on real data* ever done. - Every closed position from inception to 2022-09-20 - Block level market price for ETH & BTC - Calculated PnL, HODL value, Strategy value of every closed position - Found ELITE LPers.

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Alex Nezlobin

@0x94305

1 year

1/ For true option lovers, there is a nice problem in @thiccythot_ 's thread: Can you convert IV and other parameters to the implied probability of retesting the strike price without simulations? That is, can you calculate it directly?

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Alex Nezlobin

@0x94305

5 months

Here is a simple trick to keep your engagement low: post research on topics only when they have started leaving the public agenda. Today's installment: who actually pays for events emitted by Uniswap? Some of the cost is paid for by arbitrageurs. But LPs suffer as well... 1/

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Alex Nezlobin

@0x94305

11 months

1/ Now that some of you are beginning to trust this account, let me demystify the biggest problem faced by DEXes these days - the LVR. Why do gains of arbitrageurs (or LPs' losses) behave as they do? What would it mean to "solve LVR"? And are there any simple solutions?

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Alex Nezlobin

@0x94305

3 months

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Alex Nezlobin

@0x94305

10 months

1/ When you think about AMMs, fees, and arbitrage, it is useful to have a rough model of how much value LPs should expect to lose to arbitrageurs in a given pool. Let ARB be the rate of LPs' losses per unit of full-range liquidity. What do we know about ARB?

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Alex Nezlobin

@0x94305

7 months

I was holding my eight month old son on a walk moments ago and for the first time out of nowhere he said, “Daddy, LVR is the difference between Stratonovich and Ito integrals.” I started to quietly tear up. He couldn’t see my face and I didn’t make a sound, but he said, “Don’t…

laurence

@functi0nZer0

7 months

I was holding my eight month old daughter on a walk moments ago and for the first time out of nowhere she said, “Daddy, you are where the yield comes from.” I started to quietly tear up. She couldn’t see my face and I didn’t make a sound, but she said, “Don’t cry. It’s okay.”

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Alex Nezlobin

@0x94305

1 year

1/ A bit of game theory. When you see a dominant strategy, you play it, right? If you do, here is a story for you. A few years ago, I was a teaching assistant in an MBA class. The professor had a game to teach students a variant of the VCG mechanism tailored to

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Alex Nezlobin

@0x94305

8 months

I told my friend that I really wanted to go to that intents event. He promised to “source a ticket” for me. One day later he said that they are fully booked and offered to sell one of the tickets he “already had”for $100. Ended up going to a transactions event instead.

frankie

@FrankieIsLost

8 months

I’m at an intents event today, determined to find out if anyone here actually knows what an intent is or if it’s all a huge psyop

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Alex Nezlobin

@0x94305

1 year

1/ Time for one final thread on @thiccythot_ 's chart of Uniswap LP returns. The chart has many lines - for markouts ranging from 1h to 21 days. Depending on which line you choose, LPs' losses range from $20 mil to $115 mil. So which number is it?...

Uniswap V3 Toxicity Report

Blockchain ecosystem analytics by and for the community. Explore and share data from Ethereum, Bitcoin, Polygon, BNB Chain, Solana, Arbitrum, Avalanche, Optimism, Fantom and Gnosis Chain for free.

dune.com

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Alex Nezlobin

@0x94305

1 year

1/ Three half-baked thoughts on the explosion in sandwich attacks over the past couple of days. Three questions: 1. Why so many of them all of a sudden? 2. Why don't PEPE traders use MEV protection? 3. How much value is extracted? Will we ever know?

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Alex Nezlobin

@0x94305

1 year

On Uniswap, traders get the best execution, arbitrageurs make profits, and LPs earn the highest fees. That's the news from Lake Wobegon, where all the women are strong, all the men are good-looking, and all the children are above average.

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Alex Nezlobin

@0x94305

1 year

Thank you, CT - solid advice! Just tendered my resignation letter. Sorry I couldn't respond to all comments and DMs - been camping without Internet access over the past couple of days. Will now catch up on the news and reply to everyone!

Alex Nezlobin

@0x94305

1 year

Finding it increasingly difficult to juggle a day job and brypto things. Should I resign from the day job to focus exclusively on crypto? I will abide by the results of this poll.

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Alex Nezlobin

@0x94305

4 months

Wife tells me I absolutely have to talk to this guy since he’s an experienced tech founder. I ask him at dinner if he restakes inscriptions on parallelized EVMs, and he only mumbles that he’s not “into crypto”. What are we supposed to talk about now, horse carriages?

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Alex Nezlobin

@0x94305

1 year

When my first wife married me, my net worth was zero. When she divorced me, my net worth was zero. I have always admired her eye for crab markets. Today I showed her how to LP on Uniswap

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Alex Nezlobin

@0x94305

4 months

1/ A bit of graduate level finance theory. You hear a lot these days that investors shouldn't have easy access to volatile assets. But is volatility really bad for investors? The answer will surprise you.

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Alex Nezlobin

@0x94305

1 year

By popular demand, here is the code for my simulations from the last thread. I was going to offer a $3,000,000 bug bounty, but then just decided to release it with a "use at your own risk" disclaimer instead. Have mean comments on the code? Post them here

GitHub - alexnezlobin/simulations

Contribute to alexnezlobin/simulations development by creating an account on GitHub.

github.com

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Alex Nezlobin

@0x94305

10 months

For immediate release, three thoughts on 🦄❌. (1) Frontends must route as optimally as they can. You know that traditional exchanges route out orders to competitors all the time when they have better prices? 1/n

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Alex Nezlobin

@0x94305

3 months

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Alex Nezlobin

@0x94305

11 months

I have to grant it to Uniswap Labs: they always keep thinking about ways to provide better, more useful information to the LPs. What is FLAIR and how does it solve the problems inherent in the existing measures of LP performance? 1/n

Uniswap Labs 🦄

@Uniswap

11 months

1/ Introducing FLAIR —a new metric to measure intra-pool LP competitiveness in AMMs ✨ LPs strive to benchmark their performance accurately. This research enhances the reliability of such calculations.

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Alex Nezlobin

@0x94305

6 months

"I do my data analysis in Rust" I whisper to myself as I import polars in a Jupyter notebook

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Alex Nezlobin

@0x94305

6 months

Here are the two most important things I taught my kids: 1. In an earthquake, stop, drop, and roll. 2. The best way to trade size is by broadcasting your intent, so that you can get the best fill in a competitive auction.

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Alex Nezlobin

@0x94305

1 year

Unpopular opinion but one I hold strongly: For retail users and from a decentralization perspective - latency races and FCFS are good, - all deviations from FCFS are bad. If you are retail, HFT is your bro. Mechanisms that allow deviations from it are not your bro. Film at 11.

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Alex Nezlobin

@0x94305

1 year

1/ Theorizing about what went wrong at FTX is fun, even this feed has succumbed to this fad. But now let me get back to calling out questionable economic theories that popped up on CT over the past few days...

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Alex Nezlobin

@0x94305

1 year

Take a Brownian bridge. Move it 5'' back. You'll also get a wedding cake with a finite volume but infinite surface area. But unlike this Gabriel's cake, you can carry bring it to the wedding in a finite box

Martin Bauer

@martinmbauer

1 year

When anyone tells me they consider geometry in 3D intuitive but not higher dimensional objects I always show them Gabriels horn (Torricelli's trumpet) obtained by rotating 1/x around the x-axis. Gabriels horn has a finite volume but infinite surface area. 1/4

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Alex Nezlobin

@0x94305

1 year

Was explaining to my normie co-worker how fascinating the progress in crypto has been over the past years. “Once EIP-4337 is deployed, users will be able to pay gas fees in WETH.” Unfortunately, she realized that she forgot to log out on her computer and had to run back to office

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Alex Nezlobin

@0x94305

4 months

Using free() after malloc() is a myth You literally don’t have to do it Just quit; nothing different happens

Dryden Brown

@drydenwtbrown

4 months

Checking out of hotels is a myth You literally don’t have to do it Just leave; nothing different happens

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Alex Nezlobin

@0x94305

8 months

Look who else uses sandwich + JIT combos since a few weeks ago. tx, one the first ones I believe: 0x951638c6381877598018ccda6a7cec41e5494968dddbcec3a36dddefbd5a6b53

Alex Nezlobin

@0x94305

8 months

Remember I told you how to extract the maximum value from a large uninformed swap? (Recap: you need to sandwich it AND provide JIT liquidity at the same time.) At least one 🤖 is now applying this strategy in real life 1/

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Alex Nezlobin

@0x94305

1 year

1/ Here is another blockbuster study by @0xfbifemboy in case you missed it. To me, the most interesting are the results that go against my priors. In this installment, the honor goes to the plot comparing markout PnLs of LPs on Ethereum mainnet and Polygon...

ambient

@ambient_finance

1 year

Continuing on from our prior analysis on the usage of markout to calculate LP profitability, @0xfbifemboy dives deeper and addresses several finer points in the discussion:

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Alex Nezlobin

@0x94305

8 months

Remember I told you how to extract the maximum value from a large uninformed swap? (Recap: you need to sandwich it AND provide JIT liquidity at the same time.) At least one 🤖 is now applying this strategy in real life 1/

Alex Nezlobin

@0x94305

1 year

1/ What is the optimal way to extract MEV from a large uninformed swap? I'll show you three strategies with different returns and of different levels of ungodliness. The best one will surprise you! So, let's say Ben wants to buy six units of liquidity as in the picture below..

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Alex Nezlobin

@0x94305

10 months

@aeyakovenko Fwiw, according to the SEC data, the average markout on internalized orders is .7 bps. Retail swaps in the deepest pool on Uni have an average markout of >5 bps before gas. So I’d say DeFi loses by about an order of magnitude, maybe a bit more

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Alex Nezlobin

@0x94305

1 year

Two things: 1. @MaxResnick1 will host a space tomorrow (Tue) with @guil_lambert and yours duly at 12pm PT/3pm ET. We'll be discussing whether AMMs are the future of finance. If you follow both Guillaume and me, you know that we are at opposite poles on this one, so it'll be lively

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Alex Nezlobin

@0x94305

1 month

Managed to get on this podcast before Gwart hired a due diligence team. One of my proudest achievements so far! And be sure to check out past episodes - some real legends in there.

Gwart

@GwartyGwart

1 month

Truly one of the smartest, nicest people in crypto. Listen to @0x94305 explain markets and DEXs to me from first principles (this is something I’m saying now that I’m a podcaster).

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Alex Nezlobin

@0x94305

10 months

Let's start with a couple of basic observations about uninformed flow. Even without diving too deep, you will see why 🦄 might need to rethink their 🪝 policy. We have two pools - with 4 and 5 bps fees. How will they split the uninformed order flow? 1/

Alex Nezlobin

@0x94305

10 months

Arbitrageurs this, arbitrageurs that. We also need to understand the uninformed flow. Let’s say we have two very deep pools, with 4 and 5 bps fees, block times are short, and uninformed trades are small and routed optimally. How will the pools split the uninformed flow?

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Alex Nezlobin

@0x94305

11 months

1/ My ex-wife asked me what I think about Uni v4. Since I was the one who got her hooked on LPing, I feel responsible. And if I'm already doing it, why not share with everyone? Here is my definite ranking of the new features.

Alex Nezlobin

@0x94305

1 year

When my first wife married me, my net worth was zero. When she divorced me, my net worth was zero. I have always admired her eye for crab markets. Today I showed her how to LP on Uniswap

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Alex Nezlobin

@0x94305

10 months

now that fbifemboy is banned, i feel safe to come forward.. i often lp in the eth-usdc 5 bps pair without any delta hedging.. i'm sorry if anyone was under the impression i took the idea of il seriously (or possibly even lvr).. i hope i'm still welcome in your bookmarks..

indy 🏴

@1NDi60

10 months

now that fbifemboy is banned, i feel safe to come forward.. my iq is not actually above 145.. i'm sorry if anyone was under the impression it was 145 (or higher, possibly even nearing the 200's).. i hope i'm still welcome in your spaces..

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Alex Nezlobin

@0x94305

10 months

@therobotjames Didn’t have such a group. But here are three things I learned in my 30s that I wish I knew in my 20s👇

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Alex Nezlobin

@0x94305

1 year

Slovene. With about three million speakers worldwide, it’s a rather safe choice. If this fails as well, pretend that you are getting an urgent phone call, or simply run - you’ll explain later.

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Alex Nezlobin

@0x94305

6 months

First they started burning the base fee, and I did not speak out—because I don’t transact on chain. Then they started talking about burning MEV, and I did not speak out—because I don’t do MEV. Now they want to burn the restaking yield—and there is no one left to speak for me.

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Alex Nezlobin

@0x94305

8 months

How much did Vitalik end up paying for the MKR trade? I'll skip the careful analysis this time, only a couple of quick thoughts and back-of-the-envelope calculations. tl;dr: It's complicated! 1/

CoW DAO | MEV Blocker & CoW Swap

@CoWSwap

8 months

CoW Swap is the only exchange designed to give traders more than they ask for. And it works. This anon got 2.75 ETH in surplus from their trade -- and a final price 0.28% better than what they saw in the UI. Mooo. 🐮

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Alex Nezlobin

@0x94305

1 year

Few people are comfortable with both topics. If the person you are talking to is, you may have encountered [name redacted] or [name redacted]. Then, it’s time to cut your losses. I usually fall back on “English is not my native language”. But what language do you speak?

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Alex Nezlobin

@0x94305

1 year

@AgustinLebron3 Or, just hear me out...

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Alex Nezlobin

@0x94305

4 months

Not everything is lost if we fail to convince Ethereum core developers to cut block times to 6s. The International Committee for Weights and Measures can also cut seconds in half at its 113th meeting. Let’s hope they are receptive to the MEV concerns at the application layer.

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Alex Nezlobin

@0x94305

10 months

12/ We will have to implement six or more tricks like this one to make LPing sustainable. Some will be less popular than others. Some will require infrastructure. But I think we can get there. This is a sneak preview of our highly classified Project Guidestar.

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Alex Nezlobin

@0x94305

1 year

Hey look, a pdf of Paul Milgrom’s auction theory book on UCLA’s website:

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Alex Nezlobin

@0x94305

5 months

Unfollowed, muted, blocked and reported

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Alex Nezlobin

@0x94305

1 year

Swap functions on DEXs should have a bool parameter called isArb. For swaps with isArb==true, available liquidity is temporarily reduced by 99%. Passing a wrong value for this parameter is market manipulation and shall be dealt with by the SDNY Attorney’s office.

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Alex Nezlobin

@0x94305

1 year

My first ever week as a NEET is almost over. Time to share plans for the future and drop a bit of alpha (a secret project) 👇 1/n

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Alex Nezlobin

@0x94305

10 months

Good thoughts in this thread. Let me throw in two points that I think don't get enough attention. Can AMMs co-exist with order books in markets with fast and cheap transactions? And if they can (say as an order type), should they? 1/

Jarry Xiao 🔥🦅

@jarxiao

10 months

Markets are like classical mechanics—trades are forces on price that change its position. Liquidity is analogous to friction. But markets aren't theoretical, they're dynamic and random. AMMs define rigid laws of market physics. LOBs empower traders to create their own. 🔥🦅

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150

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Alex Nezlobin

@0x94305

1 year

There are many ways to work around the 16 variable stack limit in Solidity

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Alex Nezlobin

@0x94305

1 year

Let's hear what the *opponents* of latency races have to say on this. Here is the paper that caught my eye and inspired the poll. According to it, the tax that latency arbitrage imposes on trading is 0.5 bp. Or, in absolute terms, $5B/year in the global equity markets. 1/

Alex Nezlobin

@0x94305

1 year

In equity markets, liquidity providers risk losing money to latency arbitrageurs who snipe their stale quotes. Without googling, what’s your best guess of the additional cost that latency arbitrage imposes on trading as a share of volume?

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Alex Nezlobin

@0x94305

11 months

1/ In the spirit of building in public, let me suggest a few improvements to the hooks in Uni v4. Going forward, you'll hear a lot about LVR mitigation. How can the hooks be improved to facilitate some of the future solutions? Four things come to mind.

Uniswap Labs 🦄

@Uniswap

11 months

1/ In v4, we’re introducing hooks 🎣 Let’s look at what they are and some hooks we’re excited about. What ideas do you have?!

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Alex Nezlobin

@0x94305

2 years

Had dinner with Citadel people yesterday. Tried to sell them a highly profitable market-making strategy that generates passive returns even with 12s-stale prices. Threw in the word “invariant” and drew hyperbolas. They didn’t buy it. Surprised they don’t understand the hyperbola

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Alex Nezlobin

@0x94305

9 months

@0xfoobar What foobar is saying here is that there are basically two levels of writing clarity: 1 - you convince the reader 2 - the reader can turn around and convince someone else While 1 is rare, 2 is almost never seen in the wild

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Alex Nezlobin

@0x94305

1 year

The year is 2029. All private mempools run on SGX. Intel Crypto is the top MEV searcher on most chains. FT quotes Intel CEO:“We started our Crypto Division on the premise that engineers can be good at trading. But it was our investments in AI and ESG that propelled us to the top”

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Alex Nezlobin

@0x94305

1 year

There is a fine line between intents and free options. And it's called price discovery. (Pro tip: You do not even need clickbait lead-ins for your threads if you use words like "intents", "options", and "price discovery" in a semicoherent way.) Let me explain... 1/

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Alex Nezlobin

@0x94305

5 months

Ok, I solved LVR, but so far under the assumption that longer block times are good for trading. It's a beforeSwap hook: require(block.number % 2 == 0); The problem appears to be more difficult if you assume that shorter block times are better. Interestingly, the following…

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Alex Nezlobin

@0x94305

1 year

Ok, let me guess! A mempool solution to simplify JIT liquidity provision, right? If true, retail LPs should start drafting their thank you letters to the Labs…

Uniswap Labs 🦄

@Uniswap

1 year

🦄✨🌿

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Alex Nezlobin

@0x94305

4 months

Btw, I think “Geth” is a conspiracy. The most difficult EVM transactions are likely checked by hand by Vitalik and EF, in Excel. Explains the reluctance to lower the block times and the cost of storage ops (they make you switch Excel tabs). All good things run on Excel.

Tim Meggs

@TimMeggs

4 months

I've worked in a bank (10yrs), a hedge fund (6yrs) and in HFTs (4yrs). Two things: 1. Yes, I'm old 2. You be amazed - stunned - by the number of premium name counterparties whose polished branding and external image belies a myriad of internal 'systems' that are held together…

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Alex Nezlobin

@0x94305

1 year

Lots of MEV in the chairlift lines this morning 🏂 By afternoon, they put in a centralized sequencer, problem solved

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Alex Nezlobin

@0x94305

1 year

1/ Let me now try with pure math, no F1 stuff. Max and Charles are block builders with private sources of order flow. Private orders arrive according to Poisson processes. For Max - 5 orders/second, For Charles - 1 order/second. Whoever has more orders over a period of time

Alex Nezlobin

@0x94305

1 year

Over the past five F1 seasons, twelve distinct drivers won at least one Grand Prix. Yet there were only two distinct champions. Two questions: 1. Are shorter or longer block times more centralizing? 2. Who wins Bahrain GP tomorrow?

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Alex Nezlobin

@0x94305

10 months

My wife (a Uni LP) saw tabs with 🐄swap and 1’’ open in my browser. Asked me if I have even heard of the adverse selection that LPs face from aggregators. How do you guys know if you are supposed to pick up kids from summer camp when your spouse isn’t talking to you?

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Alex Nezlobin

@0x94305

1 year

1/ Ok, I'll bite. I checked Binance, and unless I got timing completely wrong, the price there at the time of the trade was ~$1634. So was the trade executed about 65bps above Binance mid? That's about $100K of U.S. dollarinos in execution cost...

Martin Köppelmann 🦉💳

@koeppelmann

1 year

Can a DAO sell 10k ETH without trusting a market maker or getting rekt by sandwich bots? The answer is yes! Just ~15m ago @ENS_DAO sold 10k ETH for $16.226m via @CoWSwap . With a slippage tolerance of 0.5% $80k could have been stolen via MEV but it was fully protected!

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Alex Nezlobin

@0x94305

1 year

Problem: AMM LPs make big losses when they provide liquidity to DEXs. Status: Solved ✅

hayden.eth 🦄

@haydenzadams

1 year

So from now on please call: swap, add liquidity, and remove liquidity: hop, bop, and drop AMM, LP, DEX: wham, bam, tram Thank you

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Alex Nezlobin

@0x94305

5 months

And if you still believe that it's the arbitrageurs who bear the cost of events, here is an old Soviet joke for you: Dad comes home and tells his son: Vodka is now 20% more expensive Does this mean that you'll drink less? No, this means YOU will eat less

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Alex Nezlobin

@0x94305

7 months

Spot ETF is the real-life use case we’ve been searching for all along

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Alex Nezlobin

@0x94305

7 months

@GwartyGwart With intents, you can ask for a cure for cancer and big pharma will provide it at cost in a competitive auction. A cure for cancer, on the other hand, doesn’t really help you buy HAY at zero slippage.

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Alex Nezlobin

@0x94305

3 months

A mini-thread to remind everyone to be careful trading into thin books on chain. (You will get MEVved.) And books can quickly get thin in unexpected places! Look at this transaction: a user is paying 21bps (~$1,063) for a $500K stablecoin (!) swap. 1/

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Alex Nezlobin

@0x94305

1 year

@therobotjames Don’t think I agree. Members of Congress make massive amounts of money in the stock market, and the only plausible explanation appears to be their very deep math knowledge

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Alex Nezlobin

@0x94305

1 year

95%+ of crypto bros and broettes are not primed to write socially acceptable song lyrics or sing in tune at opening ceremonies. Best you can do is heavily constrain their possible song choices through regulation, and nudge them heavily into instrumentals + Tay Tay covers

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Alex Nezlobin

@0x94305

11 months

I’m beginning to doubt the usefulness of hooks. Say Uni v4 didn’t have the before and after hooks. You could still write a contract with a swap function, which would do something, then invoke Uniswap’s swap, and then do something else. Note that that would be one cross contract…

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Alex Nezlobin

@0x94305

11 months

Here are the two most important things I taught my kids: 1. Always lift with your back, not your legs. 2. Never use oracles in your DeFi protocols.

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Alex Nezlobin

@0x94305

2 years

1/ One of the main differences between atomic and stat arb is that the former is perfectly observable whereas the latter is not. One can't really tell if a transaction is part of a stat arb play without seeing its other legs, which take place elsewhere, eg on CEXes...

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Alex Nezlobin

@0x94305

3 months

My friend is an EF researcher. He is insanely gifted. I asked him how long it would take to design this but for partial blocks. I will never forget his answer…

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Alex Nezlobin

@0x94305

2 years

1/ Let's have a poll. Look at these 2 papers, both by crypto gigabrains. Both study continuous-time models, ignore gas fees, and define the loss of AMM LPs as the gain of arbs. one (Evans et al. 2021): two (Milionis et al. 2022):

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