The Owl Explains Podcast

Tune into our regular podcasts where we talk to blockchain experts, policymakers and Web3 innovators working to build a better internet.

AVALABS x CBER

Owl Explains by Ava Labs and the Crypto and Blockchain Economic Research (CBER) Forum are proud to announce the Crafting the Crypto Economy podcast series. Episodes feature deep dives into notable research subjects such as lending platform economics, DEX design, DAO governance, and much more. By highlighting major research efforts, the series aims to unveil useful learning, explain complex topics, and educate a wide range of listeners, from beginners to professionals. Most of all, the podcast will equip lawmakers and regulators with the additional tools and knowledge they need to effectively and sensibly shape workable blockchain policies that maximally benefit all parties.

Ava Labs x CBER Ep 5
AVALABS x CBER
Nov 29, 2023
112 minutes

Ava Labs x CBER Ep 5: Loss-Versus-Rebalancing (LVR) at Decentralized Exchanges

This episode discusses the costs of liquidity provision at Decentralized Exchanges. Ciamac Moallemi (Columbia University) explains that liquidity providers at a Decentralized Exchange always face a loss relative to an asset portfolio that actively rebalances to match the asset weighting of the Decentralized Exchange at all times. This loss, known as Loss-Versus-Rebalancing (LVR, pronounced 'Lever'), is the primary cost of liquidity provision. Design refinements to mitigate this cost are discussed. Paper: Automated Market Making and Loss-Versus-Rebalancing

Finance
Ava Labs x CBER Ep 4
AVALABS x CBER
Nov 22, 2023
82 minutes

Ava Labs x CBER Ep 4: Economics of Lending Platforms

This episode discusses lending platforms on blockchains. Thomas Rivera (McGill University) and Quentin Vandeweyer (University of Chicago) explain that lending platforms generate sub-optimal welfare due to under-utilization of funds that are lent to the platform. To provide more context, lending platforms are specified in such a way that the level of borrowing (relative to lending) necessarily fluctuates with market conditions, resulting in instances where borrowing is significantly below lending. Importantly, when borrowing is significantly below lending, the total interest accrued from borrowers (relative to lending volume) is necessarily low, yielding low interest rates for lenders and thereby discouraging lending. Potential improvements for lending platforms are discussed. Paper: Equilibrium in a DeFi Lending Market

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