The hottest Liquidity Substack posts right now

And their main takeaways
Category
Top Finance Topics

The Katana V3 Upgrade is Coming Soon!

Ronin’s Newsletter • 12 implied HN points • 12 Nov 24
đź”® Crypto Liquidity
  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.

Understanding startup stock options: Part 1

Brick by Brick • 18 implied HN points • 19 Feb 24
đź’° Finance 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.

The long-term damage done by MiFID II

Klement on Investing • 1 implied HN point • 12 Aug 25
đź’° Finance Liquidity
  1. MiFID II, a rule from the EU, hurt brokerage firms by making them separate research costs from trading fees. This led to big drops in research revenue, which affected the quality of market analysis.
  2. The number of analysts covering stocks went down, especially in continental Europe. This means there are fewer experts to provide insights, which makes the market less informed.
  3. Lower analyst coverage has led to less trading activity and reduced market liquidity, making it harder for investors to buy or sell stocks efficiently.

Much ado about liquidity? Lockup expirations and stock prices

Musings on Markets • 0 implied HN points • 19 Nov 12
đź’° Finance Liquidity
  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.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Making money off illiquidity: Two Strategies

Musings on Markets • 0 implied HN points • 27 Dec 10
đź’° Finance Liquidity
  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.

Inside dYdX: On-Chain Perpetual Futures

Coin Metrics' State of the Network • 0 implied HN points • 01 Jul 25
đź”® Crypto Liquidity
  1. The DYDX token is important for the dYdX platform, allowing users to vote on decisions, earn rewards, and help secure the blockchain. This means that holding and using the token is beneficial for both the platform and its users.
  2. dYdX has added a lot of new markets for trading, with 267 options available. This gives traders access to a wide variety of assets, making it easier to find new opportunities in the market.
  3. Despite strong interest in BTC and ETH trading, liquidity on dYdX can fluctuate. This means there are times when it's harder to trade efficiently compared to traditional exchanges, highlighting different behaviors among traders.

Capital Concentration in an Expanding Crypto Universe

Coin Metrics' State of the Network • 0 implied HN points • 20 Jan 26
đź”® Crypto Liquidity
  1. Capital is concentrating in major crypto assets, with Bitcoin dominance rising and stablecoins and on‑chain derivatives taking a larger share of total market value.
  2. The altcoin universe is narrowing and becoming top‑heavy, as the top 10 altcoins now make up about 82% of altcoin value and fewer tokens remain above $1 billion market cap.
  3. Large‑cap tokens have decisively outperformed mid and small caps since 2023, signaling investors favor more liquid, established assets and that the market is maturing and consolidating.

A $50M DEX Swap With a $36K Outcome

Coin Metrics' State of the Network • 0 implied HN points • 17 Mar 26
đź”® Crypto Liquidity
  1. Huge single-block orders can catastrophically fail when routed into very shallow liquidity, turning a $50M swap into a roughly $36K outcome.
  2. Routing and aggregator failures, like stale quote‑verification, sent the trade into an illiquid pool. MEV bots and block builders then captured the bulk of the value instead of the trader.
  3. Better pre‑trade data and smarter execution—splitting large orders across time and venues (TWAP/algorithms), plus protocol guardrails or protected execution channels—are needed to reduce extreme price impact and limit MEV exposure.

Improving valuations through better governance

Klement on Investing • 0 implied HN points • 19 Feb 24
đź’Ľ Business Liquidity
  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.

Introducing the RON/PIXEL Liquidity Pool on Katana!

Ronin’s Newsletter • 0 implied HN points • 19 Feb 24
đź”® Crypto Liquidity
  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.

Market Dynamics and Risks of Liquid Staking Derivatives

Coin Metrics' State of the Network • 0 implied HN points • 12 Mar 24
đź’° Finance Liquidity
  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.