armaniferrante

One reason why the centralized sequencer conversation is so contentious is that for years people were criticized and ridiculed for anything remotely centralized. Those same people took the punches and dedicated themselves to solving really hard problems most gave up on. And now that those problems have compelling solutions, it feels like the goal posts have shifted. Apparently sequencing is an exception to the decentralization dogma. How poetic that the roles have reversed. Maybe it's important. Maybe it's not. In reality, there's no virtue in any of this. We should all love each other. We should all compete with each other. And we should all just go get users and grow the pie.

If the majority of your throughput takes place on a centralized sequencer, you're not the World Computer. You're just a computer.

People misunderstand why trust minimized custodial products are important complements to self custody. Stablecoins, ETFs, RWAs--everything that allows crypto to eat traditional finance--requires high integrity custody because most of the world's value is natively off chain.

Privileged sequencing is equivalent to custody because you have a million ways to steal money by creating systemic unfairness in trading. That’s why markets regulation is separate from clearing houses, brokers, custodians, etc. It’s about risk, and you still have all the same risk with a centralized sequencers as you do in traditional markets, which are already verifiable and continuously surveilled. Separating execution from custody isn’t a new thing. It’s existed for decades. Single sequencer layer 2s solve the custody problem. They don’t solve the market integrity problem. You need to solve both by decentralizing the sequencer.

People dunk on Ethereum project management but the rollup stages, the social expectations around them, and the collective priority to decentralize is really impressive. Would be good to see it applied to other things like upgrade authorities in DeFi, proof of reserves in CEXs, and other single points of failure.

People dunk on Ethereum project management but the rollup stages, the social expectations around them, and the collective priority to decentralize is really impressive. Would be good to see it applied to other things like upgrade authorities in DeFi, proof of reserves in CEXs, and other single points of failure.

What centralized exchange has the best proof of reserves?

Would you pay a monthly subscription fee to an external party (e.g. a respected auditor) to fully validate the ledger of a centralized exchange?

Rule number one of crypto: don't threaten people's bags.

Feels like people are sleeping on @BNBCHAIN a bit. If CZ ends up dedicating all his time to it now that he's not running Binance, then it's going to grow into a monster.

How do you unilaterally exit a perps position from an L2?

Assume

- Centralized sequencer
- It's censoring you and only you
- The perps market is orderbook based

You can't unilaterally exit a position without getting filled, but you can't get filled without being sequenced.

Closed source, centralized sequencer L2s are literally just centralized exchanges with a different custody setup. Even if FTX was an L2, it still would have stolen everyone's money. If the code's not public, you're completely at the mercy of the operator.

The @Backpack deposit/withdrawal modal has got to be one of the most powerful crypto components ever built.

- Transfer tokens on any chain.
- Transfer tokens between your trading accounts, instantly.
- Bridge tokens (USDC, USDT, BTC) cross chain.
- On/off ramp directly to/from cards/bank accounts around the world.
- Exchange stablecoins one to one at par value.
- Directly connect your self custodial wallet (no manually entering addresses).
- Borrow and withdraw assets against your entire portfolio as collateral.
- Verify when and if you last sent to the address.
- Access your address book and recent addresses by just clicking on the form.
- Add memos to transfers.

All in one modal!

The @Backpack deposit/withdrawal modal has got to be one of the most powerful crypto components ever built.

- Transfer tokens on any chain.
- Transfer tokens between your trading accounts, instantly.
- Bridge tokens (usdc, usdt, btc) cross chain.
- On/off ramps directly to cards/bank accounts around the world.
- Directly connect your self custodial wallet (no manually entering addresses).
- Borrow and withdrawal assets you don't have against your entire portfolio as collateral.
- Verify when and if you last sent to the address.
- Access your address book and recent addresses by just clicking on the form.

All in one modal.

USD perps collateral earns 6.07% on @Backpack.

L1s shouldn't airdrop tokens to users.

Your customers are founders, not consumers. You need to build startups, not takers. You'd be better off giving large quantities of tokens to native unicorns on the network, and let them use those tokens to figure out growth.

🤔

Can someone define onchain?

Your SOL and USD collateral is earning 9.95% and 4.96% on @Backpack right now. With lend TVL climbing, it's time to

A C C E L E R A T E

Why is @Backpack is so conservative? Folks want bigger position sizes, larger position limits, more borrows, and higher leverage.

I do too. We'll get there--but with zero tolerance for taking unnecessary risk. If there's one thing I want to be known for, it's for being boring, slow, and safe.

One only needs to look at one of the many examples of irresponsible risk management to understand why. Risk doesn't matter until it's too late. You don't earn brownie points for being boring, but you do earn points for staying alive.

In this business, only the paranoid survive.