The SEC has sued to take down Coinbase. This will force us to confront the fact that US trading rules, written in 1934, need to be changed. The SEC has seems to have two motivations. One, they think that crypto is bad on average (speculation, scams, AML, not much economic…

The traditional securities system is amazing. It has volume, speed, and error correction. This article introduces deals where DeFi coordination and automation can make securities even better. I introduced DeFi-ready securities in a previous article. They will be useful for specific product categories. Collateral for stablecoins and money markets Private…

Securities are a tool for economic growth, and a huge asset class for fintech and DeFi automation. However, old trading rules are blocking DeFi from handling securities. This article shows how we can fit securities into DeFi, using a few simple shared services. DeFi-ready securities will bring benefits for issuers …

Crypto joins the move into US treasuries and cash yield — With the launch of “tokenized treasuries,” crypto has joined the dash for better cash management. Rising short term rates are pulling money from low rate accounts and stablecoins into money market securities yielding 5%. In this article we will show how Sweep Protocol supports tokenized treasuries, improves cash management, and…

Last week showed us that cash is exciting. It’s no longer the most boring entry in your balance sheet. Who has it? Where is it? Can I get it back on short notice? How much interest is it earning? …

Tl;dr — The US dollar is not a Ponzi scheme. Dollars go into the US bank system when the Federal Reserve lends them out. They retain value because borrowers have to buy them back to repay the loan. Our Sweep protocol works the same way. Sweep has a call mechanism…

DeFi TVL has declined from $200B to $60B. That is about 6% of crypto market cap, and 0.06% of bank assets. DeFi is either irrelevant, or it has a lot of upside. This article looks at four ways it might go: Die: Not worth the risk of technical loss Die…

What happens when everyone wants their money back? — DeFi brings us new tools to handle a 400-year old problem. In a “financial panic” everyone wants their money back at the same time. Summary DeFi handles surges in money demand with three tools: Variable interest rates Flexible pricing. Not fighting too hard to hold a $1.00 redemption value Transparency, with…

Linking savers with a universe of loans and investments — Andy note 1/12/2023- We posted documentation and code for a Stabilizer implementation at docs.maxos.finance. US banks reported $279B in profits for 2021. They earned this money with “waterfalls” that convert unstable investments into stable deposits. In a waterfall, a banker agrees to absorb losses in exchange for taking any extra…