Great to join and share my perspective on vaults with @TokenRelations. TLDR the value sits in the finance, not the infrastructure, *but* operating both offers a durable advantage. A curator embedded in the underlying primitives can onboard new assets quickly, keep rates consistent with the broader market, and shape the venues their strategies run on. Beyond that, the advantage comes from relationships with asset issuers and with the platforms that hold distribution to allocators. Full survey below 🔥

Most of the value in financial infrastructure sits in the finance, not the infrastructure. Especially in the age of AI, code is a commodity. The moat is pricing and managing risk. Most of DeFi is the inverse, with maximally permissionless systems that take no view on risk or delegate it to curators. This week, because an oracle was configured to price collateral based on the pool, a ~$320K trade in a thin PT pool led to ~$36M in liquidations. On Loopscale, oracle configuration is the responsibility of the infrastructure itself. For PTs, the pool price is excluded by design. A PT is a fixed claim on one unit of underlying at maturity, so we mark it at the underlying's first-party oracle price, discounted for time to expiry at a governed rate. By doing so, there is no pool or price to manipulate. As code gets cheaper, the infrastructure that endures will be the infrastructure that owns its risk decisions.

Luke and I were drawn to the ecosystem in 2021 by the promise of onchain infrastructure making tradfi assets & capital markets radically more accessible and efficient.  But back then, tokenized RWAs were so nascent I'm not sure the term even existed. Today, Loopscale powers credit markets for those very assets with Securitize, one of the biggest players in the space, alongside one of our first ecosystem friends @grahamfergs. The NYSE listing is a huge milestone for the whole space. Congrats to the @Securitize team, and tokenize the world indeed.

Loopscale Earn is one of the biggest products we've shipped since launch and the first vault has hit $8M in deposits in three weeks. Excited to roll out more vaults!! We are just getting started 💃