Despite the prevailing sentiment in the cryptocurrency ecosystem that “code is law” and all is fair game, most crypto systems also rely on some amount of social consensus and good citizenship in order to maintain a good overall user experience. Miners could make the network unusable in order to make more money, but they’d make it unusable in doing so. Binance could incentivize a chain rollback to save a hack, but would greatly undermine the value of Bitcoin in doing so.

Transaction ordering faces a similar social consensus dilemma. While Ethereum and most other blockchains specify transaction correctness, they don’t…

Today, we’re excited to announce Dragonfly’s leading investment in Dune Analytics’ seed round.

Dune Analytics is building a global, real-time platform for on-chain and DeFi data. Today, there are many companies that offer blockchain data, but Dune has broken through in this market with one key revelation: Dune’s data is open and remixable. Instead of relying on the employees of these data companies to choose which new project they want to prepare data for, Dune users can build complex queries of on-chain data directly through Dune’s built-in editor. This allows Dune to have faster, more up-to-date information than any of…


Everyone: we did it. DeFi hit $10B TVL. We’re in Bloomberg, WSJ, FT. Everyone’s pivoting to DeFi. We nailed it, right?

Maybe the sarcasm is a bit much, but I think it’s clear to most people that DeFi is still in the early stages. Whether looking at user numbers, or comparing DEX volumes to CEXs, or looking for real flows and non-speculative use cases, DeFi is here, but it still needs to grow up. Let’s ignore for a minute the numerous technical and product barriers that are preventing DeFi from reaching a mainstream audience. Let’s instead pretend we can wave…

It’s a common myth that startups begin with a eureka moment — a single stroke of genius. It’s a tempting story, but it sells short the grit and determination an entrepreneur truly needs to navigate the idea maze. Many of the best teams we’ve backed have come to us with a wild initial idea, and gradually iterated their way to product-market fit.

There are so many companies and products that we want to see built in the crypto industry. So we put together this request for startups. This is not to say that we know exactly which companies ought to…

Today, we’re excited to announce that Dragonfly Capital is leading investment into Opyn’s seed round.

Opyn is solving one of the largest problems facing the decentralized finance ecosystem today: the problem of risk. Risk is endemic to DeFi, from technical risk of smart contract hacks, to volatility risk in the assets that act as collateral. Everyone knows that DeFi is still in its infancy, and for it to make it to the next stage of adoption, it needs a way for users to hedge against these risks.

Opyn is building a universal options protocol that allows DeFi risk to be…

On March 12th, MakerDAO faced its single worst day in history. Against a global cascading monetary crisis, the value of ETH plummeted over 50%. This tipped off a cascade of liquidations across trading venues, DeFi protocols, and resulted in massive network congestion. MakerDAO, most of whose collateral is in ETH, had the unbelievable task of somehow having to liquidate 10x more loans in 24 hours than it had seen in its entire lifetime.

To understand how Maker made it through this crucible, we must first walk through this series of events and peel apart each layer of the stack.

1 AM PT, March 12th. ETH @ $171. Liquidations begin.

Brother, Can You Spare a Gwei?

“There’s not a repo bot alive that doesn’t use gas tokens, kid”

Liquidators are underexamined actors in the DeFi space, working, like miners and validators, behind the scenes to keep the entire system functioning and being handsomely rewarded for doing so. Unlike miners and validators, however, liquidators require effectively no upfront capital investment, creating an ecosystem of professionals operating from potentially anywhere in the world, entirely anonymously, getting paid to keep markets solvent.

What are Liquidations?

Over the past two years, a number of decentralized lending protocols, including MakerDAO, Compound, dYdX, and others, have launched on Ethereum, allowing anyone to trustlessly lend or borrow cryptoassets. While these protocols vary…

The first DeFi liquidity solution that can support competitive prices

Key Points

  • A Coordinator is a service that enforces rules over trade execution for a specific pool of 0x liquidity. They may be operated as independent services or bundled together with a relayer.
  • Coordinators combine the best characteristics of Order Matching and Open Orderbook relayer models: market makers can perform free, instant order cancellations and users/devs can leverage contract-fillable liquidity (CFL) to power independent Ethereum applications.
  • The first Coordinator demo implementation is live on Bamboo Relay, where you can find the best prices for DAI and WBTC across all DEXs. Try it out now!


0x relayers have typically chosen between the Order…

We’re thrilled to announce that 0x V2 is now deployed on the Kovan test network and is available to all developers. Below are the deployed contract addresses:

We’ve also prepared a ganache snapshot for easier local development before testing on Kovan. If you’re interested in using it, simply follow the instructions below:

  1. Download the snapshot. Unzip it into your directory of choice.
  2. Install Ganache-cli

npm install -g ganache-cli

3. Start Ganache with the 0x contracts pre-deployed and ready to go

ganache-cli \
-p 8545 \
--networkId 50 \
-m "concert load couple harbor equip island argue ramp…

The protocol for trading everything

V2 Key Points

  • New smart contract architecture; seamlessly support new token standards. Support for ERC-721 at launch
  • More efficient order matching and cross-relayer arbitrage
  • Support for new signature types and custom verification logic
  • Open source framework for “forwarding contracts.” Easy user on-boarding, abstraction of WETH, and trade widget support.
  • Ability to create “filter contracts” for permissioned liquidity pools
  • Bulk order cancellations with a fixed sized transaction
  • Projected launch: late July, 2018

Ecosystem Development To Date

The first versions of the smart contracts that implement the 0x protocol were deployed to the Ethereum mainnet in August 2017. Since then, the 0x core team has been shocked by the…

Tom Schmidt

Investing @dragonfly_cap. Previously Product @0xproject, @facebook and @instagram, engineering @Apple.

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