@arjunbmohan

have some thoughts on the competitiveness and fungibility of deposits versus stablecoins re: clarity act it feels like either we accept a dumbed down version of programmable money or they actually are competitive with the current iteration of bank deposits and we should be ok with it https://t.co/6XnE57aYyV

One of the most frustrating parts about crypto is pricing. This is a non-trivial problem everywhere but particularly difficult in crypto with pervasive confounding variables: - TVL <> incentives - Large AUM <> Non-monetizable - Revenue <> Earnings We're seeing compression on mature assets—bluechip DeFi protocols trading at reasonable multiples while everything else faces sustained selling pressure. Maybe mispricing comes with the territory when you're the fastest capital formation substrate. Crypto's competitive advantage is speed of asset issuance, which may naturally create deeply mispriced markets until fundamentals catch up.

This is one of the strongest points for HIP-3. The XPL market along with hyperps generally were flawed upon release: fragile liquidity, dubious oracle robustness, and an adversarial market all resulted in a failed market. HIP-3's strongest argument isn't compounding liquidity for deployers or Hyperliquid itself, but risk externalization. The value proposition centers on strategic insulation: Hyperliquid maintains its core orderbook integrity while third parties absorb experimental market failures (and successes!). The analog is morpho blue.

using crypto as an alternative capital sourcing mechanism is the least interesting thing about crypto it ends in adverse selection, little recourse, and maintains none of the benefits of a verifiable ledger

I’m increasingly dubious about why DeFi matters in its current state. Stuff gets exciting when ownership and value transfer settle on the same rail unlocking: • atomicity • composability • ~0 opex Instead, most DeFi is highly focused on: • app-specific sequencing (breaks composability) • tokenized/levered HFs • sustained by a slow drip of ENA