The Owl Explains Hootenanny
Ava Labs x CBER Ep 3: Just-In-Time Liquidity At Decentralized Exchanges
This episode discusses a phenomenon known as Just-In-Time Liquidity at Decentralized Exchanges. Agostino Capponi (Columbia University) explains that, while this phenomenon is generally viewed as positive for liquidity demanders, it can actually undermine liquidity provision. More specifically, JIT liquidity providers can pick-and-choose the best trades, which reduces the incentive for passive liquidity providers to offer liquidity. The consequent reduction in passive liquidity can lead to lower overall liquidity. Paper: The Paradox Of Just-In-Time Liquidity In Decentralized Exchanges: More Can Sometimes Mean Less
Ava Labs x CBER Ep 2: Governance of Decentralized Autonomous Organizations
Brett Falk (University of Pennsylvania) and Gerry Tsoukalas (Boston University) discuss voting protocols in Decentralized Autonomous Organizations. Brett Falk (University of Pennsylvania) and Gerry Tsoukalas (Boston University) highlight weaknesses in existing voting protocols. An important point is that many voting protocols weight votes based on token holdings but a voter’s token holdings does not, in general, reflect the level of information that the voter has with regard to a voting proposal. The consequence of this misalignment between a voter’s weight and a voter’s information is suboptimal welfare outcomes. Paper: Token-Weighted Crowdsourcing and Balancing Power in Decentralized Governance
Ava Labs x CBER Ep 1: Are Cryptoassets Securities?
Lewis Cohen (DLx Law) discusses whether cryptoassets are securities from the perspective of US law. Lewis Cohen (DLx Law) explains the relevant US securities laws and then highlights how cryptoassets can differ from traditional securities. A key point is that many cryptoassets do not confer rights in the manner of traditional securities, instead conferring abilities. Cryptoassets thus might require a novel regulatory framework. Paper: The Ineluctable Modality of Securities Law