The hottest Liquidity Substack posts right now

And their main takeaways
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Top Finance Topics

How to Exit

The Generalist • 520 implied HN points • 10 Dec 24
💰 Finance Venture Capital Investing Market Trends Liquidity Regulations
  1. Exiting from investments is just as important as entering them. Investors need to remember that cashing out is a key part of the venture capital game.
  2. Secondary transactions are becoming more common and important. Investors must learn how to handle these types of deals to benefit from changing market conditions.
  3. Understanding when and how to sell in the secondary market is crucial. Knowing the right timing can help investors meet their targets and provide returns to their supporters.

💥Bed Bath & Bagholders💥

PETITION • 569 implied HN points • 02 Apr 23
💰 Finance Investing Stocks Markets Bankruptcy Liquidity
  1. Hudson Bay Capital and BBBY structured a deal involving convertible preferred stock, benefiting Hudson Bay financially.
  2. BBBY raised $225mm to address credit issues and pay vendors, but needed more liquidity for a turnaround.
  3. The deal with Hudson Bay also included warrants to buy $800mm of preferred stock, with conditions to protect Hudson Bay's downside.

Gresham’s Law: Bad Money Drives Out Good

DeFi Education • 1159 implied HN points • 15 May 22
🔮 Crypto Blockchain DeFi Stablecoins Liquidity Finance
  1. Gresham's Law shows that bad money tends to push out good money from the market. When people have a choice, they'll use the less valuable currency to keep the better one for themselves.
  2. In the context of decentralized finance (DeFi), imbalances in pools can affect liquidity and price stability. For instance, if one stablecoin in a pool loses its value, it can lead to issues for the whole pool.
  3. Using AMMs (Automated Market Makers) like Curve for swapping stablecoins is crucial for providing on-chain liquidity. Efficient liquidity helps maintain fair prices and trading in the crypto market.
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The 4 Problems of Airdrops

DeFi Weekly • 235 implied HN points • 26 Apr 23
🔮 Crypto Liquidity Valuations Data
  1. Decentralisation theatrics don't necessarily protect against legal issues with airdrops.
  2. Airdrops can lead to early liquidity for team members and investors, impacting valuations.
  3. Inflated user counts from airdrops may not reflect genuine user ownership or value creation.

The Katana V3 Upgrade is LIVE!

Ronin’s Newsletter • 86 implied HN points • 02 Dec 24
🔮 Crypto Decentralization Liquidity Trading Security Market Making
  1. The Katana V3 upgrade is now available, helping liquidity providers manage their capital better and earn more rewards. Traders can look forward to more efficient trade execution and lower slippage fees.
  2. Liquidity providers can create concentrated liquidity positions at specific price ranges, which helps reduce the risk of impermanent loss and lets them earn more from their tokens.
  3. New features like customizable fees and the Smart Order Router improve trading options, encouraging deeper liquidity and minimizing slippage during trades.

Running on Empty

The Last Bear Standing • 32 implied HN points • 14 Feb 25
💰 Finance Monetary Policy Banking Liquidity Interest Rates Economic Trends
  1. The Federal Reserve's balance sheet reduction is mostly just moving money around rather than actually reducing the money supply. This means the impact on inflation might not be as significant as it seems.
  2. The Reverse Repo Facility, which helps maintain liquidity in financial markets, is running low. As it decreases, there could be less stability in short-term funding.
  3. While some people say the situation is either a disaster or not a problem at all, it's more complex. We might see tighter banking conditions and more market volatility as the Fed continues its quantitative tightening efforts.

Yield Farming Model v1.0

DeFi Education • 999 implied HN points • 21 Apr 22
🔮 Crypto DeFi Investing Finance Risk management Liquidity
  1. Providing liquidity is not just free money; it's an investment. You need to know the risks and possible rewards before jumping in.
  2. To really get into yield farming, it's helpful to understand liquidity providing first. It's good to have some hands-on experience with it.
  3. This discussion builds on previous knowledge, so it's a bit more advanced. Make sure you're comfortable with the basics before diving deeper.

Is the Fed Financing the FDIC?

Without Warning • 176 implied HN points • 04 Sep 23
💰 Finance Federal Reserve Insurance Banking Liquidity
  1. The FDIC is primarily funded by banking industry fees, not congressional appropriation.
  2. During the Global Financial Crisis, the FDIC did not borrow money from the Fed but instead used clever financial maneuvers like prepayments to maintain liquidity.
  3. The FDIC may be utilizing the Fed's loans as a form of financing, with evidence suggesting that FDIC guarantees are used to back these loans, allowing for liquidity creation.

The Repo Market Rewire

Concoda • 264 implied HN points • 11 Mar 24
💰 Finance Monetary Policy Market structure Liquidity
  1. The Repo Market is undergoing significant changes, with a shift to a secured monetary standard and challenges in the system prompting new adaptations.
  2. The Repo Market has become more systemic and fragmented, with different regions defined by various participants, securities, and settlement methods.
  3. The presence of triparty and interdealer markets within the Repo Market highlights the importance of central clearing in reducing risks and enhancing liquidity among major financial players.

Diving Deeper on Liquidity Providing

DeFi Education • 879 implied HN points • 17 Jan 22
🔮 Crypto DeFi Liquidity Yield Farming Risk management
  1. Liquidity providing can be complex, and many people don’t fully understand how changing markets can impact their investments. Knowing how to react to market movements is important.
  2. There are strategies to maximize gains and minimize risks when liquidity providing. Understanding the direction of coin movements can help you make better decisions.
  3. It's essential for investors to educate themselves continually about liquidity and market dynamics. Staying knowledgeable can lead to more successful outcomes in yield farming.

The Great Curve Wars

DeFi Education • 959 implied HN points • 23 Nov 21
🔮 Crypto DeFi Tokens Governance Liquidity Market Analysis
  1. Curve Finance is a key player in decentralized finance, focusing on stable asset trading which helps keep stablecoin prices steady. It does this by incentivizing people to provide liquidity through its governance token, CRV.
  2. The governance of Curve is heavily influenced by veCRV holders who can vote on important decisions. Accumulating these tokens has led to a competitive scene, called the Curve Wars, where different protocols try to gain the most influence.
  3. Convex Finance is a major player in this competition, letting CRV holders stake their tokens for rewards while giving up governance rights. This strategy has shifted the balance of power in the Curve ecosystem, making CVX a valuable asset.

The Fed's Hidden Put

Concoda • 437 implied HN points • 18 Jun 23
💰 Finance Markets Liquidity Funding Monetary Policy Banking
  1. The repo market plays a crucial role in providing liquidity to the financial system globally.
  2. The repo market structure involves lenders like money market funds connecting with borrowers like hedge funds through various intermediaries.
  3. Recent changes in the repo market dynamics may lead to the Fed utilizing it as a tool for market stimulation.

Demystifying Liquidity

DeFi Education • 659 implied HN points • 01 Mar 22
🔮 Crypto DeFi Liquidity Assets Trading Economics
  1. Liquidity means how easily you can buy or sell something without changing its price too much. Cash is the most liquid because it can be used right away.
  2. In crypto, anyone can provide liquidity by pooling two assets for others to trade against. This is not something you can do in regular finance.
  3. Measuring liquidity is important because it helps understand how quickly you can make transactions. If an asset has low liquidity, selling it can be harder and may hurt the price.

Tokemak (Part 2/2)

DeFi Education • 739 implied HN points • 23 Oct 21
🔮 Crypto DeFi NFTs Blockchain Liquidity Finance
  1. Tokemak offers a service called Liquidity as a Service, making it easier for liquidity providers to rent liquidity on demand. This means that people can access funds without having to hold them long-term.
  2. The post hints that there will be more updates about NFTX, suggesting that new and exciting topics related to decentralized finance are coming soon. Keeping an eye on updates will be beneficial.
  3. Tokemak is part of a bigger conversation about DeFi trends and services, including others like Olympus Pro. These platforms work together to enhance financial services in a decentralized manner.

What SVB really means for climate tech

Climate Money • 78 implied HN points • 29 Mar 23
💰 Finance Capital Markets Climate tech Liquidity Startup Financing Investment Risk
  1. SVB's collapse impacts capital markets, leading to fear and hesitation in committing funds.
  2. Climate tech companies are disproportionately affected by the liquidity crunch due to their capital needs and revenue profiles.
  3. Founders in the climate tech space should be prepared for higher financing risk and seek alternative forms of capital.

💥New Chapter 11 Bankruptcy Filing - GOL Linhas Aéreas Inteligentes S.A.💥

PETITION • 19 implied HN points • 01 Feb 24
💰 Finance Bankruptcy Airlines Debt Liquidity Investment
  1. GOL Linhas Aéreas Inteligentes S.A. filed for chapter 11 bankruptcy with a $950 million DIP commitment.
  2. The airline's growth played a significant role in Brazil's air travel expansion but faced challenges with its fleet, especially with Boeing 737 models.
  3. To address financial struggles, GOL made efforts to secure liquidity, negotiate leases, and handle outstanding obligations.

Too Big To Fail

The Last Bear Standing • 160 implied HN points • 10 Mar 23
💰 Finance Banking Bonds Liquidity Regulation Risk management
  1. In the mid-2000s, banks faced a significant problem with growing leverage and inadequate cash reserves.
  2. The 2008 financial crisis led to emergency bailouts to address liquidity issues in the banking sector.
  3. While regulations and liquidity injections have reduced the risk of widespread liquidity crises in large U.S. banks, the 'too-big-to-fail' problem persists in the broader financial system.

The Katana V3 Upgrade is Coming Soon!

Ronin’s Newsletter • 12 implied HN points • 12 Nov 24
🔮 Crypto Blockchain Decentralization Liquidity Exchanges Smart Contracts
  1. The Katana V3 Upgrade will let users have more control over fees and reduce slippage. This is expected to happen by the end of November after a final review.
  2. Liquidity providers will be able to set specific price ranges for their assets in the new upgrade. This gives them better chances to earn rewards and helps traders get better prices.
  3. The upgrade aims to make the trading experience smoother and more efficient. It will also help support more token listings in the future.

Defensible NFT Bazaars: How NFT Marketplaces Capture Value

Unsyndicated by Mason Nystrom • 19 implied HN points • 05 Apr 23
🕹 Technology NFTs Marketplaces Liquidity Experiences Brand
  1. NFT marketplaces need to find ways to have unique liquidity to attract and retain users.
  2. Marketplaces can build defensibility through proprietary liquidity, enhanced NFT discovery experiences, and establishing strong branding.
  3. Creating unique NFT experiences, offering loyalty programs, and emphasizing trust and safety are key strategies for marketplace success.

Banking on Pressure

The Last Bear Standing • 70 implied HN points • 12 May 23
💰 Finance Banking Policy Liquidity Deposits
  1. Both cash liquidity and solvency are crucial for banks. If customers or investors worry about either, they may withdraw funds or sell stock.
  2. Bank liquidity has been fluctuating, impacted by events like the pandemic and quantitative easing/tightening, leading to concerns about insolvency and the need for temporary borrowings.
  3. Deposit fluctuations in banks are tied to the Federal Reserve's actions like quantitative easing and tightening, with large banks experiencing the fastest decline in deposits.

Understanding startup stock options: Part 1

Brick by Brick • 18 implied HN points • 19 Feb 24
💰 Finance Stock Options Taxation Valuation Liquidity
  1. Stock options are a key part of startup employee compensation, involving vesting schedules and the opportunity to buy company shares at a set price.
  2. 409A valuations determine the fair market value of a company's stock, influencing employee stock option prices and taxation.
  3. The 90-day window after leaving a company requires employees to decide whether to exercise their vested stock options or lose them, potentially facing significant financial implications.

Introducing the RON/PIXEL Liquidity Pool on Katana!

Ronin’s Newsletter • 0 implied HN points • 19 Feb 24
🔮 Crypto Liquidity Gaming Market
  1. RON/PIXEL Liquidity Pool is introduced on Katana DEX for swapping using Ronin Wallet, making it convenient for users.
  2. For those preferring RON | RONIN for trading over Binance, the RON/PIXEL pool offers an alternative trading option.
  3. $PIXEL, the in-game digital asset for Pixels.xyz, is now available for trading with a total supply of 5 billion tokens.

Much ado about liquidity? Lockup expirations and stock prices

Musings on Markets • 0 implied HN points • 19 Nov 12
💰 Finance Stock Market Investing Liquidity Public Companies Market Analysis
  1. Lockup periods prevent insiders from selling their shares right away after an IPO. This helps keep the stock price stable and shows that insiders are committed to the company's future.
  2. When the lockup expires, insiders can choose to sell their shares for various reasons like needing cash or wanting to diversify their investments. Their selling decisions can signal how they view the company's stock price.
  3. Stock prices often drop when lockup periods end because more shares are available for trading. However, the overall impact can vary, especially for larger companies like Facebook, which may not see dramatic price changes.

Market Dynamics and Risks of Liquid Staking Derivatives

Coin Metrics' State of the Network • 0 implied HN points • 12 Mar 24
💰 Finance Cryptocurrency Market Dynamics Liquidity Risks
  1. Staking on the Ethereum network has seen significant growth, with 31M ETH staked on the Beacon chain, representing 26% of the supply.
  2. Liquid Staking Tokens (LST's) like Lido's stETH & wstETH have become a dominant form of collateral, with $9.5B in collateral across DeFi lending markets.
  3. Market risks associated with Liquid Staking Tokens include de-pegging, liquidity risk, and potential market instability during significant events like the Terra Luna collapse.

Improving valuations through better governance

Klement on Investing • 0 implied HN points • 19 Feb 24
💼 Business Governance Valuation Liquidity Corporate Governance
  1. Improving share liquidity may not be the best way to increase company valuations. Focus on improving corporate governance instead.
  2. Increasing share liquidity by reducing the bid-ask spread can lead to a significant increase in company valuation, compared to measures like larger boards or institutional ownership.
  3. Improving corporate governance, measured by indices like ISS Board Quality scores, can have a more significant impact on increasing company valuations than just focusing on liquidity.

Making money off illiquidity: Two Strategies

Musings on Markets • 0 implied HN points • 27 Dec 10
💰 Finance Investing Liquidity Risk management Investing Market Trends Risk management Financial Strategies Economic Theory
  1. You can take advantage of illiquidity by buying assets when their prices are low due to a lack of buyer interest. This strategy allows you to sell them later when prices recover, potentially making a profit.
  2. Using leverage can help increase your possible returns when investing in illiquid assets, but it also raises your need for liquidity, so you must be careful and patient.
  3. Being good at predicting when markets will become more or less liquid can help you shift your investments smartly. This means keeping an eye on market trends and changes in trading volume to make better decisions.