This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue or trade derivatives, and should not be used in the evaluation of the merits of making any financial or investment decision.

TL; DR

  • The x5 leveraged token is designed as an intuitive way to take on leveraged exposure to anything, as long as it has a price feed on Ethereum.
  • Starting with ETHx5 and BTCx5, backed by USDC collateral. More instruments to come.
  • All CompliFi derivatives come in long-short pairs, and the…

This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue or trade derivatives, and should not be used in the evaluation of the merits of making any financial or investment decision.

TL; DR

  • We started off with a derivatives issuance protocol – a “synthetic risk factory” that can mint a wide variety of ERC20 derivatives.
  • We are now combining it with a novel AMM focused on handling extremely volatile assets. Derivative issuance goes under the hood, users get the familiar AMM interface.

A popular narrative against Automatic Market Makers (AMMs) like Uniswap has been that their liquidity providers (LPs) are constantly getting arbitraged and suffer “impermanent losses” — both unnecessary evils that can be avoided by switching to a limit order book (LOB) protocol. I started this post as an attempt at a defensive counter-narrative. Having finished, I feel like limit order book protocols, whether on- or off-chain, will soon struggle to hold on to users.

TL;DR

  • AMM strategies can be replicated “manually” in limit order book environments, hence they are not a separate beast from regular market making strategies.
  • If AMM…

This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue derivatives, and should not be used in the evaluation of the merits of making any financial or investment decision.

Automated market makers like Uniswap and Balancer provide a simple way for liquidity providers to put their portfolios to work – just place your tokens into liquidity pools, sit back and observe the eternal battle between trading fees and impermanent losses. The key decisions you have to make revolve around picking tokens that…


This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue derivatives, and should not be used in the evaluation of the merits of making any financial or investment decision.

TL;DR

  • CompliFi (compli.fi) is an issuance protocol on Ethereum for derivatives that do not default. There are no collateral calls, no liquidations, no counterparty risk.
  • Derivatives are just the start. Complex synthetic investment strategies, insurance contracts and much more is possible. We aim to build a universal contingent value transfer protocol.
  • Send collateral to…

Where they come from and what can be done about them

Liquidity providers to the Uniswap exchange and other Constant Function Market Makers such as Curve.fi and Balancer.io are known to suffer from “impermanent losses” — a phenomenon where certain trading patterns result in a loss of value of the liquidity pool, despite its growth from trading fee income. In this article, we try to look at the nature of impermanent losses from an intuitive perspective, and investigate the possibility of designing a fee mechanism that would eliminate them.

For an introduction to Uniswap and an additional point of view on impermanent losses, we refer the reader to this insightful article


Blockchain technology is set to challenge the State for control over money

Since the first coin left the mints of Lydia in the 7th century BC, issuance of money has remained squarely within the purview of the state. The power to unilaterally redistribute society’s claim on economic resources has become an indispensable tool of government, whether deployed towards a positive social outcome or to extend the life of a failing regime.

Dmitri S

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