Nomatic (@Nomaticcap) header
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Investor. Co-host of @edge_pod

Joined January 2021
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My chat with @josh_pwrk the CTO of @DeriveXYZ is live! We talked about how Derive got here, the challenges the team faced along the way and what users can expect from V3. Huge thanks to the Derive team for bringing me out to SF for this 👏
A closer look at our thinking behind V3. Our CTO @josh_pwrk sat down with @Nomaticcap to talk through how we got here, why we chose Ethereum and ZK, and where we think onchain finance is headed. We've spent five years building onchain options and learning from the traders who use them. Josh shares the lessons behind V3 and why we want to make it easier for others to build alongside us. Watch the full conversation below.
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Quantum computing poses a serious threat to the cryptography blockchains currently rely on, while advances in AI compress best estimates for the threat's timeline. That's why experts gathered in Cambridge to coordinate research upgrading our cryptography to be quantum-resistant.
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Crypto + Macro Stuff I'm Looking At Today ... - Binance hack (by DPRK) dominating headlines today - Tech stonks down bigly and existential angst over layoffs, economy, AI, etc all over the TL - Intel $INTC down 30% today - $COIN beats earnings for first time in 4 quarters but still down 15% - The SEO-apocalypse that has destroyed tens of thousands of once profitable websites and online businesses has finally reached the furthest heights of the online economy, with Reddit $RDDT down 42%, with co-founder and CEO Steve Huffman stating on their earnings call that "People still want Reddit. It is just Google is not sending them to Reddit the way they used to." - Total crypto market cap down to $2.69T (38.9% below ATH's) - $QQQ down to $685 (10% below recent ATH's) - Oil at $103.90 - Silver falls below $50/oz for first time in almost a year - Multifamily real estate (ie apartments) increasingly looking like its sliding into crisis territory - MEV bots apparently killed it over the last 24 hours, with TitanBuilder making $24.7M (h/t 0xngmi) - CZ and Elon battle on the TL - Jupiter has launched a new bridge aggregator - Tragic crypto home invasion in France where a clerical error made a man's 0.66 $BTC look like 660 $BTC on his taxes, criminals invade home, assault family as a result (whole thing is sickening beyond estimation - need to write about this topic soon) - Despite all the carnage lots of defi teams still doing well... $AERO been stacking W's... $ENA looking good... etc... - About start using/LP'ing/etc on MetricXYZ, first new opportunity I've really been excited about since pre 10/10 as far as airdrops go - Still accumulating as much $FXN as humanly possible and still geeking out hard on $TRUEO and $WALLET and some others - Just sold a bit of my $QQQ and replaced with $TQQQ to add leverage - Kamino now allowing borrowing against Backpack-tokenized stonks on Solana - Polymarket suffered a small hack/exploit yesterday as well - $UNI launches aggregator hooks - PredictFun announces $PREDICT token + airdrop - Top gainers among top 300 coins over last 24 hours include $BEAM at +33.0%, $Q at +16.1%, $HASH at +14.6%, $CAP at +5.7%, and $SOSO at +5.3%, - Stanley Druckenmiller makes first ever Twitter/X post, on Hyperliquid and TradeXYZ - Will Manidis mega-essay (145 pages apparently) 'The Commanding Heights' is generating a lot of discussion on here... is exceptionally well-written and worth a look for sure... - Also the Venkatesh Rao essay from a couple days ago 'Cognitive Mercantilism' was extremely good as well - US election coming on Tuesday, polls suggesting Democrats to do quite well, but some are skeptical of polling accuracy, we will see... Conclusion Is really a wild time lads... Feel like this is the first point at which existential fears over AI and the future have really completely permeated the online discourse... And for good reason too I think... I definitely have immense empathy for the tech worker with a family and high fixed monthly expenses who is in the middle of losing his job... Is gonna be bleak for a lot of people... With that said I remain an eternal optimist and think most of us here in this corner of the internet will be net beneficiaries of all the changes coming... As I said yesterday, think the key is just staying lean, keeping expenses low, and maintaing an attitude of excitement + curiosity vis a vis all the massive innovations happening... So yeah, keep getting after it lads... Make your ancestors and descendents proud ILY LFG 💪
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$6B+ hack and none of it was in $BNB?
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I would love to have recorded something on the Binance hack today and the market reaction, but honestly who cares. It's gonna be the main topic on every other channel, and it will dominate headlines for weeks, but inevitably not much changed overnight. We're still here. I think the market likely bottomed too if a $6B hack can't shake us, which means we have precious time to position ourselves and capitalize on what's ahead. Study up on how to use powerful DeFi tools like @DeriveXYZ to compound returns for your major holdings. This convo is just that--deep in the trenches with a DeFi professional investor and builder (@mbaril010) on how he's been capitalizing on tokenized stock trading LPs with RHC, onchain options, and the recent launch of @tacticallsXYZ, a kind of FOMO app for options. Enjoy! 👊
🎙️ New @Edge_Pod 💡 Octav Founder Shares His DeFi Playbook: Options, Uniswap LPs, and Tokenized Stocks 0:00 - Intro 2:11 - From BTC mining to DeFi Summer 6:34 - How Octav offers early signal 8:53 - What new DeFi is most exciting? 16:41 - Huge LP returns on RHC 20:57 - Robinhood using USDG 22:32 - Hedging Uniswap LPs with options 27:02 - Why he moved from Base to RHC 28:13 - HL, Kinetiq, and why Elysium 32:19 - Ideas for managing longs next year 40:23 - Are crypto FDV multiples out of line? 42:22 - Why ETH is a SoV, plus top 3 liquid bags 46:46 - Shopping list: VVV, DIME 48:36 - DIME/Paradex bull thesis 52:38 - What is @tacticallsXYZ? 57:06 - Tacticalls demo, FOMO for options 1:03:13 - Octav demo, tracking any wallet 1:11:00 - Closing 🙏 Thanks to @OctavFi Labs CoFounder and CEO @mbaril010 for joining us!
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New @Edge_Pod! @mbaril010 tests every app integrated by @OctavFi, a customizable DeFi portfolio tracker and data provider. So what is he investing his money into? We dig into his DeFi playbook, from tokenized stock LPs to options, plus a demo of @tacticallsXYZ, "a newer FOMO app for options."
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[🌲] TETHER FREEZES $971M USDT IN LIKELY BINANCE HACK, WITH NO UPDATE FROM BINANCE STILL
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October again, we almost got out of this month...
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Replying to @elonmusk
Hi Elon, I would love to find a way to get our perpetual futures integrated into X. It would be a killer product.
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a few weeks ago i mentioned that the first phase of robinhood chain gave us a lot of "toys" and that the next one would take these experiments a step forward, making them more mature and elegantly designed believe we're about to see this now (@standard_rsv being a great example of this)
"imagine you take a stock token and make it programmable, like software, what can you do?" - vlad i discuss in the paper below what i believe is a genuinely new financial primitive that is now only possible because of stock tokenization i present, Isolated Exposure Tokens
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Strap in and consider this my official update on the kinetiq:native thesis, specifically regarding @Enter_Elysium. Best way to do this is to refute some arguments I've seen: 1. "L2's are parasitic" It's very lazy to compare Elysium to other L2s from the past. Robinhood Chain has generated a little over $50m in fees, of which $5m went to Arbitrum, and a whopping...$70k went to $ETH blob fees. HyperEVM hyperliquid:native fees are burnt, whereas sequencer fees on Elysium go to kinetiq:native buys and builders (more on this later), but HyperEVM fees only account less than 1% of Hyperliquid total revenue. Papertrade is actually much more directly parasitic to hyperliquid:native; HyperEVM fees are peanuts even if Elysium vamped them entirely. An under appreciated dynamic that a lot of people don't know is that HyperEVM USDC applies to AQAv2 hyperliquid:native revenue too, and USDC on Elysium will as well. Assuming the HyperEVM burns around $25k of hyperliquid:native a day, every additional $1b USDC that Elysium onboards in TVL would burn 4x that same amount due to AQAv2. For reference, Solana has ~$7.5bn USDC and Base has $5b. Robinhood chain is predominantly USDG, which they monetize on, and ETH obviously gets nothing from. Imagine if Base contributed to $175m (3.5% of $5b) of value accrual to $ETH via their USDC TVL...maybe my $5k/7k $ETH calls would actually hit then 🙃 Beyond this, the entire selling point of Elysium is that it sits adjacent to HyperCore. propAMM's are functionally impossible on HyperEVM now due to the 1s block time (amongst other reasons). Additionally, on the HyperEVM, you can only read Hypercore price, not order book depth. As a result, Solana does 25-50x the spot trading volume that Hypercore/HyperEVM handle. If Elysium can eat even a moderate chunk of on chain spot volume from Solana, especially in tokenized RWAs, the implications for corresponding hedging flows to Hyperliquid are enormous. Elysium explicity enables net new flow and TVL to Hyperliquid, both of which are very accretive to hyperliquid:native itself. I would not be surprised if Elysium directly contributes an additional low 9 figure ARR for hyperliquid:native in 2027. 2. "L2's are bad investments and down only tokens" As stated above, $ARB made about $5m so far from Robinhood Chain. Of that amount, a whopping...zero dollars made it to tokenholders. No buybacks, no burns, nothing. 50% of Elysium sequencer fees are directed at kinetiq:native buybacks. Even if you assume that Elysium only generates half the current sequencer fees of the current ghost town that is the HyperEVM, that'd still more than double their current revenue. Currently, kinetiq:native buybacks as a % of market cap are about 1.5%, compared to 4-5% for hyperliquid:native. If Elysium generates only half of the sequencer fees of the current HyperEVM ($5m/yr), they'd be retiring token off the market at the same rate that hyperliquid:native does relative to market cap. If Elysium can do closer to 50-75% of Base annualized sequencer fees ($30m), they'd be doing kinetiq:native buybacks at double the rate of hyperliquid:native as a % of market cap. This is completely negating a likely increase in kHYPE TVL and other revenue streams (which there are numerous), like from launchpads like @AscendLaunch. Ascend actually deserves their own section because they've commited to doing 30% of gross revenue as kinetiq:native buy/burns (50% to buys, 60% of that to burn). $PONS has generated $200m revenue in the last 2 months, but is currently only annualizing about $125m revenue, so we'll use a very conservative ~10% of the more conservative number. That'd add another $4m of kinetiq:native buybacks, which brings buyback yield/mcap well into the double digit %, over double hyperliquid:native. 3. "Why would there be activity on Elysium if there wasn't on the HyperEVM?" Probably because the HyperEVM operates at the speed of smoke signals and has 0 support from Hyperliquid. You have @Uniswap, @fomo, @Pumpfun etc all announcing integrations and deployments on Elysium day 1 after ignoring the HyperEVM all this time. @0xOmnia and the @Kinetiq_xyz team is putting on a master class in distribution, and you're seeing it play out this week. Jeff and company are focusing on building the best perps platform in the world, and that's great, but this hands off approach has come at the expense of any support or curation of an on chain ecosystem. That's left a massive gap that other chains have filled, but Elysium can bring all that activity back into the "house of all finance". Having a team that's fully dedicated to making this a reality will look nothing like the lack of attention the HyperEVM received. 4. "It'll be a flash in the pan memecoin chain and die out just like RHC activity has" This is more speculative and it's hard to say. Elysium could have an epic and unsustainable PvElysium memecoin season by inheriting some of the wealth effect from both hyperliquid:native and kinetiq:native. Obviously this would absolutely moon kinetiq:native from sequencer fees/Ascend revenue, but that's shortlived. Lively trenches aren't mutually exclusive with a real and innovative DeFi ecosystem though. As I mentioned before, Elysium will be uniquely able to plug in with, leverage, and read Hyperliquid orderbooks and liquidity. DeFi applications that couldn't be built anywhere else are made possible here. A performant general purpose blockchain adjacent to HyperCore is the natural home to propAMM and HFT arbitrage against HIP3, which incentivizes deeply liquid spot RWA markets, which enables much higher LTV lending, which enables unique structured products and DeFi primitives to be built. I do imagine that the trenches are built before more serious innovation comes about, but an important note here is that builders are getting 25% of sequencer fees as well. What builder wouldn't want to deploy on a new ecosystem, adjacent to the most successful app in crypto history, with a built in rev share agreement with the chain itself? Based on my conversations with Ascend and Montra, lots of serious teams want to build, not just memecoin deployers. TLDR: It's not that complicated guys. kinetiq:native is a $120m mcap token that has a very clear path to buyback % yields multiples higher than hyperliquid:native, with an unprecedented ecosystem flywheel. It's both beta to hyperliquid:native and enhances the hyperliquid:native bull case. It might be the most asymmetric bet in crypto right now, and it's not conditional on some long shot thesis, just that there will be a large on chain ecosystem for the most important app in crypto. Maybe it's a flop and a sell the news event on launch...or maybe it's all the best parts of Base/Hood sequencer fees combined with the revenue streams of $PUMP, $CAKE, solana:jtojtomepa8beP8AuQc6eXt5FriJwfFMwQx2v2f9mCL, ethereum:0x5a98fcbea516cf06857215779fd812ca3bef1b32 etc and heads towards billions of TVL and 9 figure annual revenue. If you pattern match too hard to "L2 bad" or "HyperEVM sucks", it's from a place of being too 🏳️‍🌈🐻-pilled and/or lazy research.
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The post from @0xbeans was the first thing I read this morning and it's kind of breaking my brain. This is absolutely wild to me!
We're about to enter the most insane period of speculative innovation as all of finance comes onchain. Isolated Exposure Tokens are just one example. Here's a chart showing how this would work for $NVDA Nvidia normal trading hours return: -79% Nvidia overnight return: +106%
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Really great read below from Tindorr on APEX 1 from @ApexQuants, which just wrapped up on @Infinit_Labs. The vault reported roughly 41% annualized returns, with a 3.7% maximum drawdown. We only started following it in the final few weeks, but the performance caught our attention. Now, INFINIT’s two new vaults are open for deposits. I’ve deposited into both so I can track and verify the returns myself and share updates in The Edge Newsletter. Disclosure: INFINIT is now a sponsor of @edge_pod.
APEX Multi-Strategy Vault on @Infinit_Labs is wrapping up its first phase with some impressive results. • 41% annualized return • 3.7% maximum drawdown Now APEX 2 is opening for deposits from October 28 to November 11. For context, INFINIT reported that APEX 1 returned 6.9% during a period when the S&P 500 fell 1.3%, with lower reported volatility (6.6% vs. 9.3%). What makes this interesting to me isn't just the returns, but how they're generated. APEX uses a systematic momentum strategy to trade long and short across crypto and traditional markets. I've been tracking their trading signals for a while, and some positions have looked pretty counterintuitive. For example: • Short gold from Oct 19, ahead of its recent decline • Long Brent from Oct 1, benefiting from the oil rally • Short HYPE, XRP, SOL and ETH during periods of market uncertainty Many of these trades turned out to be profitable, even when the positioning seemed to go against the prevailing narrative. I think this highlights an interesting advantage of systematic trading. As discretionary traders, we're often influenced by emotions, headlines, and market sentiment. A systematic strategy instead follows predefined signals and risk rules, even when those signals feel uncomfortable. The team has also been publicly sharing trading signals, position changes, and performance updates throughout the vault's first phase. This gives depositors a live trading record to evaluate rather than relying solely on backtested results. Of course, a few months of strong performance don't guarantee similar results in the future. But I like the idea of accessing this type of professionally managed strategy through DeFi, where investors can follow reported positions and assess performance. It will be managed by the same team, using the same underlying strategy with refinements informed by their experience from APEX 1. I will allocate some capital to APEX 2 myself, because I find the strategy and its approach to risk management interesting enough to follow with real capital. For me, the real test is whether the team can maintain attractive risk-adjusted returns across different market environments, not just one successful vault cycle. NFA. DYOR.
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I’ve held $FLUID since it was INST, 3 years ago. Am I just stubborn? Is this textbook bag bias? DEX V2 is finally going live after a long wait. And there’s much more to @0xfluid now than when I first bought. Here’s why I’m still bullish: the-edge.xyz/p/why-i-m-still…
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I'm not sure how many ppl are still looping in today's DeFi economy, but if you are, I noticed some serious merkl rewards on Arc + Morpho + Syrup USDC just now 👀 See below:
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KNTQ is now trading at 5% below its ATH. When we interviewed @koolkrypto223 in early September it was just above $0.20. @Enter_Elysium, their HyperEVM L2 launches Nov 9th. Here’s Kool's full bull thesis for kinetiq:native on The @Edge_Pod and one more reason to hit subscribe 🫡
🎙️ New @Edge_Pod 🐂 Kool Krypto: The Story Behind The Anon DeFi Investor & Trader | What He's Betting On This Cycle 0:00 - Intro 2:25 - From mining BTC at 13 to fund manager 5:25 - Early to ETHLend and DeFi 7:38 - The poker game that led to a fund 10:26 - Is TradFi “in the arena” with DeFi? 14:17 - Early to onchain perps like GMX, HL 20:13 - Liquid fund, yield gen, and a little VC 23:28 - Why Kool doesn’t trade memecoins 28:01 - The DRV bull thesis 41:14 - Kool’s winning BTC call spread 45:58 - Pros/cons of Derive’s RFQ trading 50:14 - AI agents, a tailwind for options 52:50 - His onchain options trading tools 56:29 - Pros/cons of options vs perps 1:02:37 - Managing risk and closing trades 1:05:35 - Why Opulent October makes sense 1:11:12 - His viral ETH call spread on Derive 1:17:38 - Bull thesis for KNTQ 1:25:07 - Derive V3’s ability to list new markets 1:28:31 - What if HL/Lighter launch options? 1:34:19 - Why Kool remains bullish on LIT 1:38:24 - Closing 🙏 Thanks to @koolkrypto223 for joining us!
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Are your shielded zcash:native quantum safe today? According to @zmanian, if you have a @zodl_app wallet, your coins should be safe. Full deep dive on all things Zcash in a new @Edge_Pod below with the Zaki and @sudo_ml from @sovright_ 👇
🎙️ New @Edge_Pod 📈 The Zcash Comeback: Why Insiders Say ZEC’s Price Run Isn’t A Fluke — And Just The Beginning 0:00 - Intro 2:46 - Zaki and Sudo’s background 7:04 - What drew Zaki and Sudo to Zcash full time 12:52 - What triggered the price run for ZEC 19:02 - Two phases of Zcash’s redemption 22:04 - Why Zcash is special vs other chains 25:10 - The privacy toggle in Zodl 29:40 - How to buy ZEC privately 32:55 - The Orchard pool vulnerability 43:09 - Will shielded ZEC be safe in a PQ-world? 45:19 - Could minted ZEC be hiding in Orchard? 48:17 - The ecosystem map for Zcash 51:32 - Cypherpunk’s role (CYPH) in Zcash 54:50 - PoW vs PoS debate in Zcash 57:09 - How Zcash governance actually works 1:03:54 - What is Sovright building for Zcash? 1:08:37 - What DeFi's possible for ZEC in the future? 1:13:57 - Why Zcash is the "middle thing" 1:17:03 - Closing 🙏 Thanks to @sovright_ Project Lead @sudo_ml and Head of Engineering @zmanian for joining us!
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Crypto + Macro Stuff I'm Looking At Today ... - $QQQ at $713.38 - Total crypto market cap at $2.782T - FOMC Meeting (Fed interest rate decision) coming on Wednesday - Polymarket odds around 95% that they leave rates unchanged - CZ rings opening bell at Nasdaq stock exchange (just two years after being in prison) - ritualnet mainnet goes live today (h/t @redphone) - metricxyz continuing to generate a lot of excitement in defi/airdrop circles (see below!) - Copy trading goes live on Pear Protocol - DefiLlama x Trueo predictions partnership is very interesting (link below) - Extended App TGE/airdrop $XTEN continues catalyzing discussion, apparently coming in November - Aave is apparently releasing a new Aavenomics 3.0 proposal including token buybacks/staking/etc - Robinhood and Coinbase both reporting Q3 results this week (the 27th and 29th, respectively) - $MSFT and $GOOGL earnings reports on Wednesday the 28th and $AMZN Thursday the 29th - Full page ad in the WSJ taken out against tokenized equities - If every SaaS is constantly cloning its competitors and every AI can instantly build its own SaaS, does all the value ultimately just accrue to the big players at the very top? Fascinating discussion on the TL the last few days... - $FLUID dex v2 launching - Brazil markets upended by surprise election results - $PUMP $2.5M 'Squads' competition started today - NBA apparently just announced partnerships with both Polymarket and Kalshi - Solana trading bot 'Bloom' was apparently exploited for just under $1M - Interesting stat that Reddit demographics have been trending more female and more older over the last five years - Also seeing lots of debate about wallets on the TL the last few days, am currently in process of geeking out on Ambire ($WALLET) - Negative premium on French vs German 10 year bonds hits highest level since early 2010's during the GFC/Eurozone crisis - Median return of the last 16 big TGE's we've had is -27%, with 4 of the 16 profitable (link below) - IRS apparently overhauling its 'voluntary disclosure program', including reducing penalties and accelerating resolutions, so if you are a Burgerstani who has never paid taxes and you want to come clean this is apparently your big opportunity (NFA DYOR) :) - As included in @thedailydegenhq yesterday, the % of 30 year olds who are married + homeowners has fallen to 12% in the US... compared to previous ATH of 52% in 1960... (and we thought the $ETH chart was bad!) - Also for another insane US stat... the average American family is now paying $28k per year for health insurance (that's higher than the median income in most countries on earth... absolutely nuts) - Top gainers among top 300 tokens over last 24 hours include $CHIP at +25.1%, $BEAM at +16.3%, $Q at +10.5%, and $BR at +10.4% Conclusion Lots of blackpills lads but we keep getting after it! Indeed... just hit a new personal best in my one mile time btw! 6:59! Not too impressive overall but for a giant lumbering troll like myself who has never been good at running its not bad :) Primarily just doing it to get my cardio better for combat sports, but still- nice to see an improvement! Also should come in handy when the proverbial zombie apocalypse cracks off 💪 Hope you all have an exquisite day and stack lots of magic internet coins my friends! Much love and esteem as always 🫡
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It looks like $BMNR bought more of itself than ETH last week. About $46M in share buybacks versus another 10,452 ETH, worth roughly $25M. When shares trade below NAV, buying them back increases the net assets backing each remaining share. In Bitmine’s case, most of those assets are ETH. The latest update: • 4.95% of ETH supply held • 5.23M ETH staked • Nearly $400M in buybacks this year ( 👀 ) Staking ETH, collecting income and reducing the share count. I think this is part of what makes the better DATs interesting. There are several ways to grow what each share owns. I care much more about what each share owns than how big the treasury gets.
🧵 1/ BitMine provided its latest holdings update for October 26, 2026 $15.0 billion in total crypto + "moonshots": - 6,051,933 ETH at $2,356 per ETH (per @coinbase) - 215 Bitcoin (BTC) - $180 million stake in Beast Industries @MrBeast - $76 million stake in Eightco Holdings (NASDAQ:$ORBS) (“moonshots”) and - total cash and marketable securities of $514 million. Ticker: $BMNR common equity $BMNP 9.5% perpetual preferred, dividends paid weekly Chairman: Tom Lee @fundstrat Link ⛓️ prnewswire.co.uk/news-releas…
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Zillions @sudo_ml and I talk though the @zcash thesis and @sovright_ with Defi Dad
New @Edge_Pod! A few years ago, Zcash looked almost dead. A lot changed: price is up 40x, zcash:native wallets work, and there's huge flows into ZEC. These Zcash builders say the price run is no fluke. "It's not like we did the year of Zcash and it's over now. It's just the start."
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