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TraderJoe: a Snapshot!

What is TraderJoe? 

TraderJoe is a DeFi protocol and a DEX on the Avalanche blockchain, major competitor to Pangolin – “We combine DEX services with DeFi lending to offer leveraged trading. Our products are community driven which allows us to give fees collected from liquidation and swaps back to the users via our JOE/xJOE staking mechanism. JOE is a governance token that also rewards its holders with a share of exchange revenues”, as their CoinMarketCap bio says. 

TraderJoe has already flipped Pangolin, another avalanche DeFi protocol and DEX in terms of Liquidity – the two occupy the same position in the ecosystem.

 LiquidityTrading Volume 
Pangolin329,960,21058,503,557 (24h)
TraderJoe545,298,13734,819,333 (Calendar Day cut-off)

TraderJoe’s vision, is  “to make Trader Joe an R&D-focused platform for new DeFi primitives not yet seen on any blockchain — not just Avalanche.”

What's the Dev Team?

The two major core developers are Cryptofishx and 0xMurloc. 

Cryptofishx: @cryptofishx is a full-stack and smart contract engineer with multiple projects histories in Avalanche: @throwsnowballs, @Pandaswapex and @sherpa_cash. He most recently worked at FAANG and a crypto derivatives CEX. He also holds a master’s in computer science from a top US university. He has been in crypto since 2017 and got into Avalanche when it was introduced to him by a friend. 

0xMurloc: @0xmurloc is also a full-stack developer and product manager. Recently, he was Head of Product at a leading unicorn startup that went IPO recently. He holds an electrical engineering degree from a top US university. He has been a bitcoin holder since 2014, got into DeFi earlier this year and has been hooked ever since.

A full list of its development team can be found here.

The UI - It's so beautiful!

First of all, there’s a chart on trade function – you can see the latest price movements of the token you’re trading in the form of candlestick charts – unlike older DeFi platforms like Yearn. 

There’s also an auto switch chain functionality. If you try to connect to the platform with the wrong chain in your Metamask wallet, it tells you you’re on the wrong chain and automatically switches the chain for you – unlike older DeFi programmes like where you had to do it manually. Pangolin seemed to have copied this to their own UI as well. 

Live farms – harvestable yields are immediately reflected in real time, just like Raydium.

Functionalities on the platform

Right now, you can trade, farm, and stake on TraderJoe. In the future, you would be able to lend and borrow. See TraderJoe Thesis and Roadmap

The trading (exchange) and farming functions should be familiar to the seasoned DeFi user. What warrants more attention is the staking function and the role it plays in the TraderJoe platform. Farming rewards on TraderJoe are in JOE. 

What is JOE? Aside from being the farming reward on TraderJoe, it is the governance token that will allow holders to vote on community proposals. This, is a major reason why JOE can be very attractive, and why influx into the TraderJoe DeFi protocol is so staggering.

Furthermore, on TraderJoe, you can stake your JOE for XJOE to maximise to earn even more JOE. For every swap on JOE, 0.05% of fees are collected to the XJOE pool and used to buy back JOE tokens. When lending (BankerJoe) is launched, there will also be platform fees shared to xJOE participants. Currently, buybacks occur every 2 days. When you unstake you will receive all the originally deposited JOE and additional from fees. Over time, you’ll always earn more JOE by holding xJOE tokens.

You might wonder, why is Staking better than Auto-compounders? For example, an Auto-compounder for the AVAX-USDT LP that rewards you with JOE rewards auto-compounds your yield by selling your JOE rewards from yield farming to increase your LP positions. But this means you miss out on profits if JOE tokens increase price. 

For individuals who are interested in playing a role in the future governance of the TraderJoe DeFi protocol, this staking mechanism, which maximises their JOE holdings, and therefore their governance power, is also far more attractive than an Auto-compounder route. 


The Tokenomics of the JOE token gives one even more reason to be hyped.

The token distribution follows a fixed supply of 5 billion (deflationary!), decaying emission model. 

There are no pre-sales, private sales or pre-listing allocations of the JOE token. (!)

All tokens are distributed according to the emission schedule. That means that the team funds and treasury funds are distributed at the same pace as the LP farms. This encourages decentralisation, and rewards early participation, which is why its adoption speed is so staggering.

The token distribution and token emission schedules can be referenced in the two diagrams below. Further details can be seen here.


The emission schedule is somewhat related to the roadmap of the project, which also tells us about the sustainability of the Platform. The roadmap is roughly as follows: 

  1. Phase 1: Taking the traditional AMM model but adding many small improvements. This phase is all about learning to get the fundamentals right.
  2. Phase 2: Offering lending, which combined with trading results in leveraged trading. This phase is about offering products still new to Avalanche.
  3. Phase 3: Serious research phase and our long-term vision for Trader Joe – to become an R&D hub for DeFi innovation. Some areas we’re looking at are limit orders and derivatives. 

The TraderJoe platform aims to become a R&D hub for DeFi innovation with a DAO governance structure. Votes are determined by JOE holdings. The risk of influence by whales and flashloan attacks are reduced by the requirement that voting power is granted only to those who are holding JOE tokens at the start of the vote.


Commentary and Forward Looking Analysis

As of 15th Sept, the trading volume of Pangolin is 51.21mm; and that of TraderJoe is 21.6mm. Joe-pairs also account for some 22% of all trading volume on TraderJoe. TVL: Pangolin: 321.64mm, TraderJoe: 542.84mm. TV/TVL for Pangolin = 0.159 and for TraderJoe = 0.0397.  

These figures support the hypothesis that “the dichotomy between trading volume and TVL change is that people are coming to TraderJoe for yield farming but not swapping. This is extremely bad because the difference between a farm token and a DEX token is its ability to generate volume, not necessarily its ability to increase TVL. Having a higher TVL is nice because you can enable users to trade better, but if TraderJoe’s TVL increases and volume stangates, the increase in TVL is useless” – as taken from an analysis doc from 0xkydo.

The fact that 22% of all trading volume is with a Joe-pair supports this unwelcoming hypothesis even more strongly – People are right now rushing in to farm JOE. If trading volume does not pick up, TraderJoe risks becoming a farm token, which is the familiar ending to a lot of new DEXs. They start as a DEX but because no one uses them as a swapping tool, they turn into a farm and slowly bleeds out. 

This worry might be overblown, since we could expect trading volume on TraderJoe to shoot up once BankerJoe (lending and margin functions) are released, ceteris paribus. In comparison, Pangolin does not have lending services, nor does it seem to be part of their roadmap. Discussions on lending on the Pangolin discussion forum didn’t seem to be going anywhere either. It doesn’t help  when one of the search results on Pangolin’s discussion forum for lending is a big fat question of “Is it over for Pangolin?”

Also note: 74% of USDC.e is on TraderJoe, Pangolin has 26%. That’s surely a strong indication of activity on the TraderJoe platform.

However, one should note that lending is extremely competitive and difficult to do, and oftentimes making a DEX an attractive target for attacks as much for trading.

On the other hand, “We can see that TraderJoe’s TVL is not inflated with its native token pool and therefore provides deeper liquidity for Avalanche’s ecosystem – A bullish sign. This has its drawbacks since the price of Joe is more susceptible to sharp price movements.” 

Furthermore, single side staking for Pangolin is going to dry up a lot of its liquidity. Currently, out of its 234m liquidity, 77m is in its PNG-AVAX pair (32%). Staking will take away a lot of this liquidity, further decreasing its TVL and increasing slippage for traders.

Some further notes on the PGN and Joe tokens: 

  PGN (Token) JOE (Token)
Price 2.00 1.96
Market Cap 99mm 157mm
FDV 1,077mm 977mm
Circulating Supply 49.9mm 80.6mm
last 24h trading volume 4.6mm 15mm
Total Supply 538mm 150.7mm
Max Supply 538mm 500mm
TVL (automated) 330mm 538.2mm
MCap/TVL 0.302711 0.292956
FDV/TVL 3.263659 1.816635

Note that JOE’s circulating supply is far from its total supply. If we assume price to be linearly correlated with circulating supply, at full emission, we could be looking at $3.66 for JOE. The maturing of the TraderJoe platform vis-a-vis BankerJoe, coupled with Pangolin development inaction could push interest in holding JOE even higher.

If you like this essay, follow @noctemn2021

Waterfall DeFi Front-end Developer

What You Will Do:

Frontend software development and continuous support and improvement of client-side architecture for frontend web applications
Define frontend development framework for different projects
Work closely with UI/UX designers and other developers to create best-in-class responsive websites and applications
API integration with backend systems
Ensure and help maintain the performance, code quality, organization, automatization and responsiveness of the applications.
Utilize latest and exciting technologies, frameworks, libraries, and development tools, especially in blockchain, cryptocurrency and NFT related technologies and products
Design, build and maintain reusable component libraries for design patterns.

Who You Are:

Bachelor’s degree or above in Computer Science or other relevant fields
Web3 experience is required
2+ years of web development experience working with HTML, CSS, JavaScript, JQuery, React Native and React.js.
GitHub for development tools.
Proficient understanding of versioning tools, such as Git.
Experience in responsive design and animation

Position Incentives:

Immediate strong exposure to cutting edge technologies, DeFi and NFT products
Direct mentorship and training with fast moving, challenging and unique business problems
Non-hierarchical culture – Flat and transparent structure with plenty of opportunities to grow
Flexible working hours, Casual work attire
An attractive bonus is open for negotiation

Application Front-end Dev.

Max. file size: 128 MB.

Memeification: Creating a meme driven culture

“The most powerful person in the world is the storyteller.“

I still remember there was so much emphasis during my post-grad classes on storytelling, particularly the consulting ones!


Consultants often need to deal with many complex real-world cases that involve numbers, analysis, interview recordings, and presentations. They do this as part of the finding process in order to form the final strategic recommendations to solve a particular business problem. Different people communicate differently on specific matters. Thus miscommunication often arises when there is a misalignment of explicit and implicit meaning between the sender and receiver. 


When a group of consultants communicates their thoughts and recommendations to a group of decision-makers. They often need to think about what are the most effective ways to bring the most important message(s) across. To ensure the target audiences have both interest and engagement. Memes must articulate the messages and format into something pretty, engaging, and easy to comprehend.

What Makes A Good Meme?

Does this meme tell you well enough that there is a serious misunderstanding of concept between the client and consultants?


Storyboarding is one of the techniques that helps create an outline, flow, and key messages that will contain in the consulting final deliverable. People often do this at the beginning of the projects to flush out ideas, organize thoughts and align understanding within the team and sometimes between the client and the consulting team.

So how does storyboard or storytelling relates to memes? Meme is a great storytelling tool where it uses graphical content to attract the audience’s attention which often tells some unique stories that only those who have experienced it will truly understand the meaning behind it.


Memes if done right can create a unique culture that promotes meaningfulness around a particular subject or matter, and the culture can be even further crystallized to become a meme-driven organization. The culture of the organization can create a sense of belonging for those people who are within the group and attract people who are outside of the group to become a member.

Memes in crypto

One of the most famous memes in the cryptocurrency industry is #DOGE. The meme keeps growing and has become the dogecoin movement where Elon musk has also shit-posted on DOGE.

When Zeus capital was publicly shorting $LINK back in 2020, LINK marine united together with memes to fight back the FUD. The big short report by Zeus Capital also uses memes to fight back the LINK marine.

Link marine, WAGMI

When the DeFi summer hits in mid-2020, aping culture was on the rise. So we came up with this meme to differentiate degen farmers and virgin farmers. YOLO in:

When BoringDAO enters a strategic partnership with Alpha Finance and supporting liquidity mining on Sushiswap. The creation of this beautiful meme was to celebrate the partnership.

When launched oBTC on the Polygon network:

Memes & Game Theory

Memes can also be super powerful to explain the game theory. The community at OlympusDAO has turned a classic prisoner’s dilemma problem into memes that can be understood in a simpler way with (3,3) diamond hands culture.


Great memes not only form a meaningful culture but also significantly strengthen it in a way that makes you proud of being part of the community and enjoying the journey. Memes are part of our everyday life, these in-jokes between friends, families, or an interest group can often be considered as in-memes (memes that do not become widespread through the internet).


For anyone building projects, I strongly recommend that have a chief meme officer position in order to build that meme culture to support the community growth. Meme is an important element in this game and meme-driven organization is inevitable.


Life is a meme in a way, meme is also a life in a way. When each individual is constantly searching for the purpose of life. Why not try your way into meme-driven life where you can meme for life. 😀


Thanks for reading “Memeification: Creating a meme driven culture”. If you liked this article be sure to follow our Master of Ape 0xminion.eth

The Rise of On-Chain Tokenized Risk Protocols

“The fear of the unknown is possibly the most fundamental fear of human beings.”

We are seeing the rise of on-chain tokenized risk protocols. Interest rates are both a barometer of the economy and an instrument for its control. In the traditional financial market, it is a vital input into the valuation of many financial products. In the DeFi world, money market protocols such as MakerDAO, Compound, and Aave were the first attempts at creating a decentralized money market. These decentralized money market protocols facilitate one of the basic financial needs – lending and borrowing in the DeFi world.


Traditionally, the money market is an extremely important element in the global financial system that provides short-term liquidity to facilitate the flow of the global financial market worth trillions of dollars today. 

Table of Contents

The DeFi Landscape

DeFi has experienced tremendous growth over the past year. With a total value locked of more than $100 Billion at its peak across all chains, growing from just over $ 1 Billion TVL roughly a year ago. With such massive growth in value, an influx of innovative DeFi protocols such as lending protocols, DEXs, Oracles, On-Chain perpetual swaps & options protocols, synthetic assets, and insurance protocols have formed an open, permissionless financial universe on the blockchain. As the industry continues innovating and building momentum, DeFi protocols are becoming increasingly sophisticated with their design and mechanisms. Hoping to bring structured products like risk hedging products, financial derivatives, credit/under-collateralized loans to the decentralized financial sector.


Without a doubt, there are significant risks in the DeFi world, as we are just beginning to form a structure of understanding for how the future decentralized finance could play out. In the traditional market, appropriate management of risk is an important part of the day-to-day function of a financial institution. However, much of this is missing in the DeFi world where the market participants can not hedge risks such as interest rate movements since there is no financial instrument to facilitate such activities. 


When we look from the traditional debt market perspective, the majority of debt markets are driven by fixed-rate lending. This is where it offers certainty to relevant market participants, resulting in a simplified process in managing. However, existing DeFi lending protocols can only facilitate variable rate lending and borrowing activities. These rates can fluctuate significantly according to the market conditions and external factors. For example, the USDC borrowing rate on Aave experienced 2 significant hikes in the past year. In this case the rate was as high as 25% at one point during the first hike.

Figure 1: Historical interest rate for major DeFi lending protocols

DeFi vs CeFi

The DeFi world is different in comparison to the traditional financial market. Where we have “yield incentives” in the form of governance token rewards. These reward users who contribute to the protocol by providing liquidity. As a result, some of the DeFi users don’t mind having variable rate exposure as long as the yield incentives can cover the variable costs. However, we should also recognize that other types of individuals seek stable returns or institutions seeking to deploy in size. Thus, for DeFi to capture the full spectrum of the debt market and attract traditional capital into the game. DeFi lending protocols need to come up with fixed interest rate strategies to expand the “future of france” further to reach mass adoptions.


The fixed interest rate aspect in the DeFi lending protocol started with AAVE. AAVE parametrized the stable interest rate model to offer a fixed rate in the short term. However this can be re-balanced in the long- term in response to changes in market conditions. It offers a way for users to gain short-term fixed interest rate exposure, it is never a true fixed interest rate design. But it opens the door for the continuous experiment on interest rate protocols.


With the fast iteration of the DeFi industry, we are seeing various on-chain tokenized risk protocols such as fixed interest rate protocol. This surfaced on the market to offer market participants to off-load some of the risks to other participants. Although We are still a long way from seeing a proper DeFi yield curve and interest rate standard, current experiments on risk hedging protocols can form the cornerstone of the future DeFi risk market.

Tokenized Risk Protocols

In traditional financial markets, the Treasury bond yield curve is the benchmark for the pricing of all fixed-income products (Incuba Alpha, 2021). 

  1. A benchmark yield curve forms through zero-coupon treasury bonds with different maturities.
  2. Yield curves form through various fixed-income products deriving from benchmark yield curves and risk spreads.
  3. Deriving from the spot interest rate yield curve, we calculate the forward interest rate curve, and then the swap yield curve takes form, which provides a pricing benchmark for interest rate derivatives such as forward, futures, and swaps. Finally, the entire CDO product issuance process can be realized in the DeFi market, and the whole interest rate market system can be perfected.


The DeFi sector is still experimenting with how fixed-income products can be built and what the structure should be. Naturally, the DeFi sector will start imitating the structure of traditional fixed-income products. The below section will dive into some of the tokenized risk protocols in the market.

Figure 2: Tokenized risk protocols sector landscape

Future Cash Flow

Pendle Finance

Pendle enables the trading of tokenized future yield on an AMM system, it exists on top of first-degree protocols, supporting such as Aave and Compound. There are 3 components in the Pendle system that enables the trading of tokenized future yield:

  1. Yield tokenization
  2. Pendle’s Automated Market Maker (AMM)
  3. Governance

The yield tokenization part splits the deposited yield-bearing tokens into two separate parts, the Ownership token (OT) and a yield token (YT). 

Figure 3: Illustration of Pendle yield tokenization process

Users can trade the yield token via the Pendle AMM to long or short the future interest rates without owning a capital heavy asset directly.


Pendle’s design reminds me a lot of interest rate derivatives in the traditional market. Where the valuation of these financial instruments needs to incorporate the time value of money. Thus, Pendle creates a unique type of AMM that caters to all assets with time-decaying properties, since the value of a yield token is time-dependent where yield token holders entitlement to less yield as time passes and the token becomes worthless upon expiration. The Pendle AMM curve will shift at the equilibrium point and adjust itself to account for the time decay.

Figure 4: The changing weights of X and Y cause changes in the shape of the curve

Pendle’s yield token AMM could also become the oracle in the interest rate space for other tokenized risk protocols such as 88mph to be used as the fixed interest rate oracle, such that 88mph can offer the market rate “without needing to maintain a market”. Just like how Uniswap’s AMM uses by various DeFi protocols for different purposes. Pendle’s yield token AMM could pioneer the evolution of the tokenized risk protocols sector.

Element Finance

Element Finance is targeting to create a fixed rate, capital-efficient yield protocol for users. It emphasizes its principal token rather than the yield token to enable fixed yield products to be offered in the DeFi market. It expands the fixed-variable component in the lending interest rate world to include e.g. farming yield, ETH 2.0 yield, etc.


There are 3 components in the Element Finance system that enables the protocol to offer fixed yield products to users:

  1. Yield tokenization including Principal token and Yield token
  2. Element Finance Automated Market Maker (AMM) 
  3. Governance
Figure 5: Illustration of Element Finance yield tokenization process

Similar to many other future cash flow tokenized risk protocols, the yield tokenization part of the protocol also splits the yield generating base asset into two separate parts called the Principal token (PT) and a yield token(YT) which forms the backbone of Element Finance. Additionally, Element Finance focuses on usability, enabling the creation of fixed-rate vault strategies on top of its infrastructure. It can potentially integrate with existing DeFi protocols such as MakerDAO, Compound, AAVE, Yearn to structure fixed rate products. Furthermore, there are potentials for tranche lending protocols to leverage Element Finance’s fixed-rate products as the backstop for senior tranche. It also introduces the De- Collateralize concept to improve capital efficiency in the DeFi market which is in essence a fixed-term loan that pays the borrow fees upfront while being backed by a yield position.


APWine is focusing on building its protocol for future yield tokenization. It does not offer fixed interest rates but enables the market to trade future yields. The protocol is to target farmers, traders, and liquidity providers who wish to lock in their future yields.

Figure 6: Illustration of APWine’s future yield tokenization process

The protocol splits the deposited yield-bearing tokens into two separate parts,

  • Principal Tokens (PTs)
  • Future Yield Tokens (FYTs)

 APWine currently features an order-book-based exchange for trading FYTs, however, the protocol is working on a custom AMM design that is tailored for trading future yield.

Swivel Finance

Swivel Finance also leverages two token designs, termed Notional Tokens (nTokens) which is the interest coupon and zero-coupon token (zcToken). However, the protocol implements an orderbook rather than using the AMM model like Pendle and Element Finance which aims to provide capital efficiency enhancement and customizability.

There are 3 major components in its implementation:

  1. High throughput off-chain orderbook & libp2p network
  2. Siloed & censorship resistant on-chain orderbook
  3. A ledger to track active lending agreements
Figure 7: Key differences of Pendle, Element Finance, APWine, and Swivel Finance.

Tranche Lending


BarnBridge on the high level achieves risk hedging by pooling users’ funds and depositing into respective underlying markets and disproportionately distributing the outcome via “seniors” or “juniors” tranches. It borrows the idea of collateralized debt obligation (CDO) from the traditional market. The SMART Yield bonds allow DeFi users to gain access to fixed yield via the “senior” tranche where the “junior” tranche takes up the variable-rate risks in return for a higher yield.


The protocol itself can further expand to include such as tranches for volatility derivatives. We can use such a product to mitigate market price risk by segregating the risk/reward to fit various risk appetites.

Figure 8: Illustration of BarnBridge future yield tokenization process

Saffron Finance

Saffron Finance focuses on customizable risk and returns profiles for liquidity providers. It separates the future earning stream and the NPV of utilized principal in each tranche based on the concept of payback waterfall. 

The payback waterfall is split between two primary tranches.

  • A yield enhanced “A” tranche
  • A risk mitigated super-senior “AA” tranche


88mph allows you to lend your crypto assets at a fixed interest rate. There are 4 main products in the 88mph system:


Fixed-interest rate bond (FIRB)

  • The protocol uses a linear model for determining the fixed interest rate offered to the FIRB holders. The protocol keeps track of 30 Day EMA variable rates on the yield protocols and offers 50% of the EMA as the fixed rate.

Floating-Rate Bond (FRB)

  • The FRB allows users to step in and fund these debts created by the FIRB. FRB users essentially act as the guarantor for FIRB users to get a fixed rate determined by 50% of the EMA. The FRB users then eat up the variable-rate risks and receive compensation by a higher rate if the underlying variable interest rate increases.

Zero-Coupon Bond (ZCB)

  • The ZCB is a product built on top of the FIRB which opens the door for tradable FIRB on the secondary market.

Structured products

  • With the introduction of a new per-deposit variable rate bond system in 88mph v3, structured products such as perpetual yield futures can be built on top of the existing infrastructure.


The protocol also offers 2 main derisking mechanisms in order to stay solvent in different market conditions:

  1. Pooling the deposits together to form a pool to protect the protocol against catastrophic risks.
  2. Funding the system’s debt via the floating-rate bonds.

Zero Coupon Bond

Inspired by Dan Robinson and Allan Niemerg in their paper “The Yield Protocol: On-Chain Lending With Interest Rate Discovery”.There are a few implementations of the Yield Protocol with certain tweaks by the UMA project (Yield Dollar), Hifi Finance, and Notional Finance.


On a high level, the Yield Protocol introduces the concept of fyTokens, a fungible token similar to a zero-coupon bond that allows fixed-rate borrowing and lending. The fyTokens work quite similar to the traditional zero-coupon bond market where the price of the bond floats freely before maturity, but trades at discounts and offers full face value (par) profits at maturity. The fixed interest rate can be calculated by the difference between the purchase price and the par value.


Notional is a protocol that facilitates fixed-rate, fixed-term crypto-asset lending and borrowing through a financial instrument called fCash.


fCash tokens are the building blocks of the protocol, they always generate in pairs: assets and liabilities, and always net to zero across the protocol. It leverages the accounting equation concept where assets=liabilities+equities

Figure 9: The building blocks of the Notional system- fCash tokens

What’s more interesting for Notional Finance is the Notional AMM, which introduces Dynamic Curve Sensitivity. Notional Finance believes that the optimal liquidity curve sensitivity will vary vastly as a function of time to maturity. In addition, the static curve sensitivity will only be appropriate for a narrow window of time. 

Figure 10: Problems with static sensitivity

Due to the time value of money (TVM) concept when fCash approaches maturity. The interest rate will drift in the absence of any trading which presents a problematic nature in traders extracting value from liquidity providers over time. The Notional AMM prevents this by updating the anchor upon each trade such that the pre-trade interest rate equals the interest rate immediately after the last trade occurred. This mechanism preserves consistent interest rates over time in the absence of trading.

Figure 11: Notional’s dynamic sensitivity design

Interest Rate Swap

Horizon Finance

Horizon Finance allows participants to swap between variable and fixed interest rates through a game-theoretic approach to form decentralized interest rate markets. The protocol currently supports yyCRV and xSushi markets.


On a high level, Horizon Finance deposits a pool of money P which consists of money from multiple participants to the target yield protocols over a period of time (Payout time), say 1 day. 


Since the current DeFi protocols only offer a variable rate. Users do not know how the lifetime interest rate could be. However, the protocol allows them to submit fixed interest rate “bids” which they think is a fair rate. If they choose not to submit a bid, the protocol will offer a variable rate to the participants.


For each payout round, the protocol will distribute the income of P preferentially. This is done in order from the lowest to highest bids in the fixed interest rate space. Any leftover income will distribute to the variable rate participants.


This game-theoretic approach assumes the market will collectively act rationally. In an attempt to maximize their individual utility according to their risk preferences.

  • If over time weighted interest rate of fixed IR bids is higher than average realized rate of underlying income stream. Fixed IR bids soak up greater income than they otherwise would receive. They do this at the cost of participants still willing to accept the variable rate.
  • If over time the weighted interest rate of the fixed IR bids is lower than the average realized rate of the underlying income stream. Participants still sitting in the ‘variable’ pool effectively receive an income boost.

Final Thoughts

Any financial market fundamentally exposes participants to risks. Financial instruments such as interest (yield) rate instruments made available to relevant participants to off-load these risks to counterparties. These counterparties have the abilities to take on these risks in exchange for earning a higher compensation. In the traditional market, a significant portion of the financial products is fixed rather than variable. On the other hand, DeFi lending protocols are currently 100% under the variable rate regime. Which lacks the environment for DeFi to cross over with the traditional market. And bring the money into this open, permissionless financial world on the blockchain.


Not everyone has the ability to take every risk; We are in the early stage of the “future of france” where the market does not have the necessary tools for DeFi users to hedge certain risks such as yield risk. However, these tokenized risk protocols are the beginning of a new chapter in the DeFi world.


Although these protocols have a degree of sophistication as financial instruments which not every user will understand. However, we believe the unprecedented creativities will happen via protocol-to-protocol layer where we leverage the nature of DeFi lego compatibilities. In order to create both standardized and exotic decentralized financial instruments to drive further growth.


We believe the rise of on-chain tokenized risk protocols will play an increasingly pivotal role in the ecosystem. Helping DeFi to evolve and creating the next-level financial instruments for a diverse group of players to enter the space.


Don’t trust, verify. The sky’s the limit.


Thanks for reading The Rise of On-Chain Tokenized Risk Protocols written by 0xminion.eth. If you enjoyed his writing don’t forget to like and follow him!

TraderJoe: a Snapshot!

What is TraderJoe?  TraderJoe is a DeFi protocol and a DEX on the Avalanche blockchain, major competitor to Pangolin – “We combine DEX services with

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Waterfall DeFi Front-end Developer

What You Will Do: Frontend software development and continuous support and improvement of client-side architecture for frontend web applications Define frontend development framework for different

Read More »

Navigating the chaotic world of the multichain universe


In this article, we discuss navigating the chaotic world of the multichain universe. Due to the transaction limitations in the Ethereum world, ecosystems in the multichain universe such as Fantom (FTM), Binance Smart Chain (BSC), Huobi Eco Chain (HECO), Near Protocol (NEAR), etc have quickly gained popularity in the industry in order to achieve scalability. We have seen some major DeFi protocols in the process of deploying and shifting some of their liquidity to alternative ecosystems in order to offer additional choices to the crypto community. 

Figure 1: The Multichain Universe

There is a lack of tools to easily manage crypto portfolios in the multichain universe. Users interact with various ecosystems, token standards, and technical structures. Moreover, a cross-chain swap is necessary to move tokens from one ecosystem (i.e. Ethereum) to an alternative ecosystem (i.e. Solana) via a bridge.


As part of this analysis, we will delve into different cross-chain bridges to shed light on the current market solutions:

Figure 2: Metamask Multichain Universe

Multi-directional cross-chain swap solutions are still limited, existing solutions leverage Ethereum as the settlement layer. The current bridging solutions are fragmented in a way that each ecosystem has its own natively supported cross-chain bridge solution with Ethereum. For example, when a user swaps tokens from Polygon to Fantom, he/she needs to bridge the tokens on Polygon to Ethereum, and Ethereum to Fantom, leveraging Ethereum as the settlement layer.

Bridging solutions existing in the following ecosystems:

Polygon (Matic)

There are two main bridge solutions (PoS vs Plasma) in the Polygon ecosystem that differs based on their structure and security features.

Figure 3: Polygon Bridges Comparison

Due to the expensive Ethereum gas fee, many DeFi users have shifted to the Polygon ecosystem in early April 2021, with a total of nearly $8 billion locked in the ecosystem at its peak.

Figure 4: Total Value Locked (USD) in Polygon ecosystem

Binance Smart Chain (BSC)

The BSC ecosystem gained significant market traction in early 2021 from adoption in key projects such as Pancakeswap and Dodo due to lower transaction costs. The rapid growth in the BSC community resulted in Binance Smart Chain Bridge becoming the most adopted bridge to migrate tokens from Ethereum to BSC.

Figure 5: Total Value Locked (USD) in BSC ecosystem

Solana (SOL)

The Wormhole project by Certus One is the first bidirectional decentralized ERC-20 to SPL token bridge between Ethereum and Solana.

One of the most important elements in the bridge is called “guardians” which are decentralized cross-chain oracles utilized by a set of node operators to certify token lockups and burns

Figure 6: Wormhole Bridge

NEAR Rainbow Bridge (NEAR)

NEAR rainbow bridge opens the gate for ERC20 tokens to flow into the NEAR ecosystem. So the “prover” listens and validates a specific event on a monitored chain to enable cross-chain communication.

Figure 7: NEAR Rainbow Bridge

At the time of writing the piece, NEAR rainbow bridge has more than USD 3mn worth of tokens from nearly 400 unique users. The NEAR token has been the largest bridged token between the NEAR and Ethereum ecosystem. 

Figure 8: Total Value Locked in NEAR Rainbow Bridge

We have provided a brief overview of some of the key bridges on the market. Many additional bridges offer different technical flexibility and security to the ones that we mentioned above. Moreover, we have summarized these in the below section. Generally speaking, there are mainly five categories of bridges:

Figure 9: Bridges in the Multichain Universe

L1- L2


Non-EVM to EVM

Multidirectional Bridges

Final thoughts

As users continue to interact with multiple blockchains, we believe Ethereum will remain the industry’s dominant Layer 1 DeFi ecosystem. So alternative ecosystems will complement the Ethereum ecosystem by creating a specialized user experience to target specific sectors or use cases.

To achieve a multichain universe, we envision a one-stop bridging tool to emerge that enables DeFi users to easily migrate tokens across multiple ecosystems with minimal steps. Thanks for reading Navigating the chaotic world of the multichain universe. Written by 0xminion.eth, 0xProductGal, and 0xLight. So if you found this content helpful be sure to follow them!

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Best Crypto Wallet – Top 8 Wallets Review


This review examines the following major cryptocurrency wallets (in no particular order) in five dimensions: Features, Interaction, User Guide, UI & Visual, Account Management & Security. 

Existing crypto wallets available in the market vary in product positioning, features they offer, as well as the UI complexity. Thus, the comparison would be more intuitive with respect to the user’s habits and needs.

What kind of users are you?

Table of Contents

Top 8 Cryptocurrency Wallets Review

Hierarchical Deterministic (HD) Wallet has become a standard among almost all cryptocurrency wallets.

HD Wallet Structure:

Benefits of HD Wallets: 

  1. Easy back-up: You can retrieve the private keys of all associated wallets, on all chains, with the seed phrase.
  2. Multiple-level user permission: Say in Metamask, you can create multiple accounts, each of which can be managed independently.
  3. Easy bookkeeping: You can quickly look up all the assets associated with a private key.

You should always beware not to lose the seed phrase of your crypto wallet, or all your assets on the associated blockchain networks may be lost.

1. MetaMask

Product Positioning: Ethereum-based wallet with a built-in browser, allowing users to enter the decentralized world of Ethereum, anytime and anywhere.

Wallet Type: HD wallet

Wallet Features: Single interface and seed phrase. Users can customize and add any tokens of EVM-compatible networks. They can swiftly switch and view their tokens on different networks.

Same address will be used for all tokens on networks compatible with EVM – convenient for receiving tokens. 

You may check the list of EVM-compatible networks on Chainlist to add tokens on MetaMask.

Supporting Platforms: Browser, iOS, Android

Overall Score: 🧡🧡🧡🧡

2. imToken

Product Positioning: Smart digital wallet, safe and secure, simple to use, with strong functionalities.

Wallet Type: HD wallet

Wallet Features: Structure based on main chains. Supporting 12 main chains including ETH, BTC, ATOM, EOS, TRX, CKB, BCH, LTC, KSM, DOT, FIL, and XTZ. In imToken wallet, BSC, HECO, and other EVM-compatible chains, are categorized as “branch chains” under ETH. If you need to add tokens on these chains, you need to customize the RPC by [My→ Use Settings→ Node Settings→ ETHEREUM→ Add Node].

(This design makes sense from a technical perspective. We can see that linked to the same seed phrase, wallet addresses on these chains are the same as that on the Ethereum network. However, from the users’ point of view, this design is sort of inconsistent with the perception, pretty hard for users to get used to this.)

Supporting Platforms: iOS, Android

Overall Score: 🧡🧡🧡🧡

3. Trust Wallet

Product Positioning: The most secure and reliable cryptocurrency wallet for fast crypto purchase, trading and NFT holding management.

Wallet Type: HD wallet

Wallet Features: Trust is an Ethereum-based, multi-currency wallet by default. Users can access all assets based on EVM-compatible chains with a single seed phrase. It supports integration and token deposit from 37 other chains including Solana, FIL, XRP, Tron, Polkadot, etc. Perfect for users with asset holding on multiple chains.

Supporting Platforms: iOS, Android

Overall Score: 🧡🧡🧡🧡🧡

4. TokenPocket

Product Positioning: Make Blockchain happen everywhere, multi-chain, security and convenience, the portal of DApp.

Wallet Type: HD wallet

Wallet Features: Structure based on main chains, such as Bitcoin, Ethereum, EOS, Polkadot, TRON, BSC, HECO, IOST, Cosmos, BCH, BOS, MOAC and Jingtum – 14 networks in total. But different from imToken, TokenPocket categorizes several EVM-compatible chains as independent main chains – more in line with the users’ perceptions and easier to understand.

Supporting Platforms: iOS, Android, Website

Overall Score: 🧡🧡🧡🧡

5. Rainbow

Product Positioning: Fun Ethereum wallet. 

Wallet Type: HD wallet

Wallet Features: Supporting Ethereum main chain and four testnets only. Similar structure to MetaMask. Single seed phrase. You can create multiple accounts with separate private keys.

Supporting Platforms: iOS, Android (Beta)

Overall Score: 🧡🧡🧡

*But 🧡🧡🧡🧡🧡  strongly recommend if you are an Ethereum-focused user.

6. Coinbase

Product Positioning: One-stop application to manage all your cryptocurrencies and NFTs, and trade without an exchange account.

Wallet Type: HD wallet

Wallet Features: Structure based on seed phrase. Fast wallet switching is not available – You need to log out before getting into another wallet. 

Supporting Platforms: iOS, Android, Website

Overall Score: 🧡🧡🧡

*But 🧡🧡🧡🧡  recommend if you are a Coinbase exchange user – as it supports direct access to Coinbase accounts.

7. Coin98

Product Positioning: Multi-chain, multi-source wallet to manage all your crypto assets together in one single application.

Wallet Type: HD wallet

Wallet Features: Structure based on seed phrase, multi-currency wallet by default. Users can manage multi-chain digital assets in one single wallet. Supporting 12 networks including Bitcoin, Ethereum, Solana, BSC, BCH, HECO, TomaChain, Tron, Polkadot, Kusama, Avalanche, C-Chain, Celo. Using API connection to users’ accounts on popular CEX for portfolio management.

Supporting Platforms: iOS, Android

Overall Score: 🧡🧡🧡

8. Phantom

Product Positioning: A crypto wallet reimagined for DeFi and NFT trading.

Wallet Type: HD wallet

Wallet Features: Structure based on seed phrase, similar to MetaMask. But it only supports the Solana blockchain for now.

Supporting Platform: Website Browser.

Overall Score: 🧡🧡🧡🧡  recommend if you are a Solana blockchain user.


With the development of the multi-chain ecosystem in the blockchain space, users will be increasingly inclined to wallets with highly-aggregated features. From the user’s perspective, it is best to be able to manage all multi-chain assets within one single application, while keeping it simple to use.

For website browser-based wallets, MetaMask clearly stands out with its  access with the enormous Ethereum ecosystem, as well as the seamless access and interaction to Dapps.

For mobile-based wallets, imToken and TokenPocket have boasted a huge user base respectively, with the multi-chain support and strong Dapp browser. With a similar positioning, Trust Wallet is developing the built-in Dapp browser- It would be my pick once its Dapp browser is live.

On the other hand, there are other mobile-based wallets exploring vertical expansion. 

Take Rainbow for example. Focusing on the Ethereum blockchain ecosystem, Rainbow targets frequent Uniswap users with the instant access to liquidity pools on Uniswap. 

Coin98 has a niche user market of crypto veterans and experienced traders who manage portfolios on both CEXes and DEXes. It successfully caters to the needs of traders to manage all their crypto assets in a single application, swiftly and comprehensively, with an aim to improve their capital efficiency. 

For newly-launched wallets like Phantom, it might make sense for them to position as MetaMask for Solana or other chains. In the case of Phantom, that ambition will require a close partnership and collaboration between Solana and Phantom. Additionally, for Phantom wallet so far, it seems that there is still a lot of room for improvement in its interaction UX and information layout design.

There are numerous crypto wallet applications —75 according to Fei Xiao Hao Wallet Review, many more not included— available in the market. Only some of the most popular wallets are listed in this review, and we will continue to examine many more soon. 

We have examined some of the most popular wallets in this review, and we are adding many more, e.g. Solana-based, and Solong, on our watch list for sure. 

This article was written by @0xProductGal, if you like her content be sure to follow her on Twitter!

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Fei Xiao Hao Wallet Review:  (Much information and data is not updated for reference only.)

Crypto Wallet Recommendation:

The AMM Universe in the On-Chain World

The AMM Universe in the On-Chain World is a completely different world compared to off-chain due to its limited size and transaction speed naturally presented in the decentralized blockchain world. I’m a firm believer that an on-chain order book doesn’t work due to its complexity involved in making a market. Significant transaction costs for constantly shifting orders, and the speed of matching orders where centralized matching engines can do a way better job then the decentralized counterpart.

Constant Function Market Makers: DeFi’s “Zero to One” Innovation. With Uniswap V3 launched, we are now entering the capital efficiency era in the #DeFi world. Now, let’s talk about the various AMM models on the market; starting with the most intuitive one that has formed the cornerstone of today’s DeFi industry.

On-Chain Spot Market

A constant product market maker, first implemented by Uniswap. This is often simplified in the form of x*y=k, where x and y are the reserves of each asset.

Don’t reinvent the wheel, once said. The AMM model has been so effective that we’ve seen a lot of DEX protocols built based on this formula. Some of the protocols that have implemented this model are Uniswap, Sushiswap, Quickswap, Pangolin, Pancakeswap, Raydium, MDEX, Honeyswap, Spiritswap, Spookyswap, and many more. An innovative yet simple solution for liquidity providers (LPs) to step in passively. By providing an easy way for assets to bootstrap the liquidity, especially the long tail assets.


However, due to the nature of the design, LPs will suffer impermanent loss (IL) where we have seen the industry has divided into two segments. 1: IL is a bug rather than a feature, 2: IL is a feature rather than a bug.


So Balancer came up with a variation AMM model which allows the pool to consist of multiple tokens. Anywhere between 2 and 8, each token with a different arbitrary share of the pool (from 2% to 98%). This design allows users to experiences different, varying impermanent loss schemes and capital efficiency according to the specific use case.


CoFiX on the other hand trying to introduce risk management and computable risk concepts into the AMM world. The design introduces several new components including compensation factors. Compensation factors ensure market makers are sufficiently incentivized to continuing making the market. The design is trying to mimic the centralized world where market makers are compensated by negative fee rebates. This eats away the arbitrage opportunities across different exchanges, trading pairs, and assets. 


Curve Finance focuses on stable asset swaps. They felt that the basic constant product market maker does not fit into its specific use case. So they came up with the stableswap invariant in order to provide the best liquidity and the lowest slippage for swapping stable asset like USDT/USDC/DAI.

There are so many protocols that are trying hard to eliminate the IL. However, there is no one size fits all solutions and there are always risks with making a market in the financial world. So IL can not be eliminated but can be shifted or hedged through different ways.


Bancor’s V2 introduces single-sided exposure, allowing LPs to contribute and maintain 100% exposure in a single token. By doing so, it introduces a concept called impermanent loss insurance whereby BNT token holders can stake BNT token into the insurance pool to earn rewards and providing impermanent loss insurance to the LPs, essentially shifting the IL risk from LPs to token stakers.


Dodo’s Proactive Market Making Algorithm (PMM) design focuses on improving capital efficiency and single-sided LP. AMMs are “Lazy” Algorithms. When a trade occurs, PMM dynamically adjusts the price by encouraging arbitrage trading to minimize price risks and counterparty risks for LPs. This mitigates the notorious issue of impermanent loss inherent to AMMs.

On-Chain Derivatives Market

Entering into the on-chain derivatives space, although I’m still questioning the needs for on-chain derivatives from a user perspective. As market price discovery always happens off-chain in CLOB where the matching engines have done this so efficiently. So this is why traders/liquidity providers wish to be on-chain apart from trading in a decentralized, trustless environment. Of course, you can also argue that these on-chain derivatives protocols can use the protocol to the protocol layer. However, I believe that we have yet to identify the “ones”. Nevertheless, let’s dive into the AMM models for on-chain derivatives protocol, whether you are talking about futures, options, swap.


Perpetual Protocol’s Virtual AMM (vAMM) looks interesting, it strips away the role of liquidity providers, so no one can suffer impermeant loss. The underlying design of vAMM uses the same x*y=k constant product formula as Uniswap. As the “virtual” part of vAMM implies, it uses the formula for price discovery purposes and there is no need for LPs to pool assets to provide liquidity. However, the asset prices internally defined by vAMM might be incorrect where this requires arbitrageurs to step in to return the market equilibrium price.


Sakeperp’s vAMM+oracle price discovery design improves and limits the cases where the price in the internal book might be very different compared to the rest of the market. If there were LPs, LPs suffer less IL but help with the accuracy of the asset prices on Sakeperp. If there were no LPs, the system uses vAMM for price discovery purposes. So the vAMM+ oracle price discovery design takes off some market-making risks by referring price to vAMM but lets the LPs focus on the price differences between the vAMM price and the oracle price.


Capital efficiency is extremely important in the financial market, especially in derivatives trading, Mai Protocol by MCDEX introduces the shared liquidity concept and uses a price function to provide more liquidity near the index price. The V3 AMM function flattens the price curve near the index price. While it improves user experience, capital efficiency is also maximized so that the funds provided by LP could be concentrated to fulfill the trading demand near the index price.

Pendle Protocol on the other hand focuses on enabling the trading of tokenized future yield on an AMM system. It shifts the underlying asset from the asset itself to the interest rate space. However, it enters into a whole new world here where the underlying asset-interest rate faces time decay. The Pendle AMM aims to minimize the time-dependent impermanent loss that arises from the provision of liquidity using tokens with time decay.

I haven’t covered so many other types of AMM models in this piece, which I yet to dive into these. For example, CharmFinance is working on the AMM model for options trading. It leverages the logarithmic market scoring rule (LMSR) model, commonly seen in the prediction market AMMs to let users buy and sell these options when we have a pair of options whose payoffs sum to one in a certain currency.


“Algorithm liquidity, the blockchain native approach” @Diane_0320 AMMs are everywhere and eating the DeFi world, excited to see the different design of the AMM models for various specific use cases.


This article was written by by 0xminion.eth

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What does ATH mean in Crypto?

What does ATH mean in Crypto? ATH is short for “All-Time High”, which refers to the highest record price that an asset has ever reached in its history.

Example: Ethereum broke through the $1500 barrier and set a new ATH!


As an example, at the time of writing, the highest ever-record all-time high (ATH) of Bitcoin’s price is $48,025, on 9 February, 2021. That means this was the highest price that Bitcoin ever reached, i.e. the highest price that it was traded for on the market. 


In the 2020 bull run, many cryptocurrencies set new All-Time High records, with Bitcoin surging by 300% and refreshing new ATHs in December of the year. 

Difference in ATHs Among Exchanges

You may also notice that each cryptocurrency exchange has a different ATH value for Bitcoin. When Bitcoin hit the ATH on 9 February, Bitcoin was trading above the mark of $48,025 in some markets. But many consider that Bitcoin’s ATH was approximately $48,025, according to crypto market data providers such as CoinGecko. 


Whenever a cryptocurrency price passes its ATH, things can get crazy. Investors should always do research to ensure that there is reasoning behind the value of the coin or token reaching an ATH.


Having mentioned ATH, the opposite of that is the ATL (“All-Time Low”) which refers to the lowest price point an asset has traded at. Similar to breaking an ATH, breaking an ATL also has similar effects but in the other direction. Without any logical evidence or points or an asset to stop, it can just keep going down. Reaching an ATL creates uncertainty for what the future may behold for the asset.

Other Key Terms

What does Sats mean in Crypto?

What does Sats mean in Crypto? Sats in Crypto, is short for Satoshis, is the smallest unit of Bitcoin (BTC). One Sats/Satoshi equals one-hundred-millionth of a Bitcoin or 0.00000001 BTC. 

Example: If Bitcoin’s price ever goes to the moon, then every Sat you own matters!


At the time of writing, Bitcoin is trading at about $48,000 per BTC, thus, one Sats/Satoshi is equivalent to $0.00048. If Bitcoin hits the $1 million mark, one Sats/Satoshi will be worth $0.01.


Sats/Satoshi takes its name from Bitcoin’s pseudonymous creator, Satoshi Nakamoto. It is the smallest fraction of a Bitcoin that we can send.


Just as the existing fiat currencies, Bitcoin, as well as other cryptocurrencies, can also be divided into smaller units. But unlike the physical version of global currencies such as the US dollar, which can be divided into 2 decimal places, a Bitcoin is divisible into 100 million units called Sats/Satoshi.


In fact, all amounts on the Bitcoin blockchain are denominated in Satoshi, but they are typically converted to Bitcoin by most trading platforms for easy readability. 

Bitcoin Divisibility for Micropayments

To become a global medium of exchange, a currency needs to be divisible into smaller units. For Bitcoin, among other cryptocurrencies, smaller fractions are vital to ease and facilitate transactions for very specific amounts, such as transaction fee payments and micropayments. 


If the protocol restricts it to just two decimal places, that would make Bitcoin impractical for everyday transactions – 0.01 BTC can be worth thousands of dollars. 


Also, Bitcoin’s divisibility is crucial for it to accurately reflect the value of every good or service available in the economy, providing Bitcoin a high amount of liquidity if Bitcoin’s price rises. For example, investors can begin investing in Bitcoin, or other cryptocurrencies, with fractional amounts. Purchasing $1,000 worth of Bitcoin is just as easily as purchasing an entire coin.


Other units of denomination of a Bitcoin also exist, such as millibitcoins (mBTC), and microbitcoins (μBTC). So, 1 Bitcoin is equivalent to 1,000 mBTC, 1,000,000 μBTC, or 100,000,000 Satoshis.


As a side note, different coins use different terms to describe fractions of a coin. For Ether (ETH), the native token of the Ethereum blockchain, the smallest unit is a wei. Every ETH is 1,000,000,000,000,000,000 wei. To simplify, amounts in fractions of ETH typically deal with in Gwei (1,000,000,000 wei, or 0.000000001 ETH).

Other Key Terms

What does Rekt mean in Crypto?

What does Rekt mean in Crypto? Rekt is the distortion of “wrecked”, coming from online gaming slang. To define something that got completely destroyed or a person that experienced a catastrophic failure.

Example: Are you new to crypto or tired of getting rekt? This space can empty your wallet fast! 


In the context of crypto trading, rekt refers to financial ruin – suffering a heavy financial loss from a coin or token that has dropped significantly in its value, caused by a bad trade or investment.


You might say that a crypto investor got “rekt” when he/she is losing big time with a trade, for example, selling their bitcoin right before the price skyrocketed. The term can also refer to the cryptocurrency itself that nosedived in price, or a market that dropped significantly, e.g. “the market is rekt.” 

Tired of Getting ‘Rekt’

The term is usually used among the online gaming community describing a player (or team) that was defeated in an embarrassing or silly way. In the crypto community, rekt often refers to margin traders that have a liquidation for making a bad trade. 


For example, Alice is trading on margin and opens big leverage on a long position. If the market goes down and she gets liquidated, we may say “Alice got rekt.”


In some cases, being “rekt” does not mean truly losing money, since “rekt” assets can still bounce back.

Other Key Terms

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