Bitcoin hashrate at an all-time high
BOOM! #Bitcoin hash rate all time high
— Dylan LeClairpic.twitter.com/4LEnzts82T
(@DylanLeClair_) September 12, 2022
16 months after the China mining ban which saw hash rate drop by ~50%, followed by a ~70% market correction in $BTC, hash rate is pushing new highs.
— Dylan LeClair
Miner revenue per TeraHash is approximately down 80% from its 2021 highs and headed for new all time lows.
(Note: chart in log) pic.twitter.com/rOpImlxzj5
What does this mean for bitcoin?
— Dylan LeClair
1) Miner margins are squeezing hard
2) The marginal production cost of $BTC has never been higher (although being impossible to exactly measure) $BTC is the only commodity in the world that becomes harder to produce as more people try.
Fifty Gateway to power Starbucks Odyssey
We are excited to announce that we have been chosen to power Starbucks Odyssey – a web3 and NFT-based evolution of the @Starbucks loyalty program
— Nifty Gateway(@niftygateway) September 12, 2022
Through the Starbucks Odyssey experience, @Starbucks is aiming to onboard their members into web3 in an authentic and easy way. This is a monumental moment in web3 history.
— Nifty Gateway
.@NiftyGateway was chosen to make the experience accessible for anyone. Nifty Gateway offers secure NFT storage, credit card payment options, and customer support; making it super easy for anyone to get started with NFTs (even if you always forget your password
— Nifty Gateway).
.@Starbucks is a pioneer in the loyalty and rewards space and we are so excited to partner with them to introduce the next chapter of Web3 utility and accelerate mainstream adoption of NFTs.
— Nifty Gateway
Thread on Liquidity Book
Liquidity Book Learning
— Trader Joe#6
Price Impact is something all DEX users deal with on a regular basis. It refers to a price change occurring during a swap and can sometimes lead to unexpected losses.
But why exactly does it occur? pic.twitter.com/tKhGLhHYM8| New AMM Soon
(@traderjoe_xyz) September 11, 2022
Many decentralised exchanges use the x*y=k formula, where x and y are reserves of two tokens and k is constant, to price assets in their pools.
— Trader Joe
To find a relative price of a token in a pair, we simply need to divide x by y or vice versa.
Let's say there is an AVAX-USDC pool with 1000 USDC and 50 AVAX in it. In this case, x is 1000, y is 50, k is 50000, and the implied price of AVAX is 1000/50=20 USDC.
— Trader Joe
Alice wants to buy 100 USDC worth of AVAX and expects to get five tokens back.
In reality, however, she gets much less. Because Alice deposited 100 USDC, the x is now 1100 (was 1000), and y is 50000/1100=~45.45.
— Trader Joe
Instead of getting the 5 AVAX that she expected, Alice only received 4.55 (50-45.45).
The new price of AVAX is, therefore, 1100/45.45=~24.2 USDC.
So Alice paid almost $22 compared to the quoted price of $20, resulting in a price impact of ~9.8%.
— Trader Joe
If price impact didn't exist, Alice could have bought all 50 AVAX in a pool for a total of 1000 USDC, leaving no more AVAX for future traders. This isn't ideal. pic.twitter.com/ztQuyRe3vf
However, such a significant price impact isn't ideal either. So was there something Alice could have done differently?
— Trader Joe
Her swap was 5% of the size of the pool, so she would have gotten a better price by either finding a pool with more liquidity or by performing a smaller swap.
Alternatively, she could have used a DEX with a function different from the traditional xyk. For example, there are exchanges tailored towards stablecoins with reduced price impact.
— Trader Joe
Concentrated liquidity can also help, due to its capital efficiency, enter Liquidity Book (LB)… pic.twitter.com/HVqJsKQAae
LB introduces Discretized Liquidity. Liquidity is separated into constant sum price bins with their own bonding curve.
— Trader Joe
Because each bin has a fixed price, price impact while swapping only occurs during bin changes. Therefore swaps within 1 bin will incur 0 price impact. pic.twitter.com/aTjXmBEfSN
Overall, price impact remains one of the biggest topics in #DeFi and #DEX design.
— Trader Joe
There are various different ways to minimise it, but traders must still stay vigilant when performing swaps, lest they want to end up overpaying for their tokens.
