what's up, guys? Just waiting for Kyle here.
Pretty good. How about you?
I kind of curated a bunch of them, but
there's a lot of stuff that happened in
So I guess, I mean, we should just kick it off in no particular order. I can start to hit some of
these things and then maybe we answer some of the questions too. But I guess one of the biggest
things was the prison is live now. And the concept, we spoke about it last week, is pretty
innovative. The idea is that you can stake or lock in for a certain amount of time. And during that
period, you will earn the trading fees of the exchange. Well, soon, you will also be able to
use that as collateral to trade on the exchange. So anyone that stakes, you hit the bottom of your
prison locking page, a history, and you can see exactly how much you have in there. You can also
go to your balance in your wallet and see your xox. That's kind of the marker that shows how much
you have there, but that xox will actually have a collateral value in your account soon. And you
can use that to trade. You can't withdraw, obviously, because it's locked, but you can
use it as collateral to trade. And that's kind of a cool, cool concept. So the APYs are still
healthy. I mean, 8% for a week, up to 80% for a year kind of locking. I think there's a couple
hundred million xox or so locked in there right now. But yeah, there were a lot of products that
launched. That was one of the big ones. Yeah. And I think it's good to know, too, that
analytics stuff will be showing up pretty soon on that. So you'll see how much ox people are locked
for each center, for each bucket, and also how much is coming from bridges and how much is
coming from voluntary locks. I think, yeah, it's also important to note that right now you
can't actually use xox as collateral. The LTV is at 0%. However, in the month when we launched
multi-collateral and portfolio margin, xox will be around 50% LTV. So when you do lock your ox,
you do end up only be able to use, let's say, half the value of it as margin. And there are
reasons for that we can get into. But what you do get is you get a constant yield on it. So
think of it a bit like xsushi, except while you're in prison, not sushi. And then also,
it's, you can still use it. So I think that's a, it's an exchange tokenomics that I don't think
anyone's ever tried. So if nothing else, it'll be really interesting to see what happens.
Yeah. The bridge, the bridge closed. Do you want to hit that one up? Or you want me?
Maybe you start. Oh, I wanted to give it another point too, which is that on xox,
if you're a big volume trader on the platform already, actually makes a lot of sense to buy ox.
Well, you already have ox because you're a big trader on it, but it takes some of it in lock
for a year, right? Because then essentially you're getting back a lot of the fees that you're
trading, that you're paying yourself. So it's a way to get very low fees if you're a whale
on the platform. So we've seen people start to do that already. I think that'll only continue.
Yeah, for sure. Actually there's, I see 46 million ox locked for a year. So that's
a relatively high percentage of the ox that's been locked so far. And more or less the formula,
we'll release it a bit later, but more or less the formula is that all of the trading fees
on the exchange go to prison stakers. And proportionately, if you stake for a year,
you get 10 times the proportion of someone that would stake for a week. So a little,
it's weighted that way, but yeah, more on that soon. Cool. The bridge, the bridge has closed
or rather it's just gotten a lot harder basically. So now if anyone were to deposit ox one,
they will get auto locked in prison for two months and they, in order to get out,
need to buy three times their stake of ox on platform, on the buy ox function, and then
lock that for two months and then they would get out, right? And the result, kind of the thinking
here is a lot of people that follow this community very closely. I'm sure a lot of people
on this call and they are kind of wondering how to use the platform, how to use things.
They're integrated it, they've been trading the missions or things like that. Then there
are other people that are kind of like more passive. And I think it's very important that
people that pay attention do very well. So yeah, like this is an interesting next step.
Yeah. And I think to add there too is that it's not like the old ox doesn't have any value,
right? It has an intrinsic value from the fact that it can be converted into ox upon ox by anyone
who wants to, who wants to buy more ox, right? So essentially there's a, it's like a discount
coupon valuation or like a rights issue you could call it. So, you know, when the man for ox is
healthy, this will trade very, very close to ox price. You know, when there are sellers of the
ox one, then there'll be less close, but I think it'll trade anywhere between let's say
30% discount to maybe 70% discount. Sometimes it'll be actually as close to,
you know, 0% discount even. I'd also see that, I believe that Mark Lamb launched
the successor to OpenX, which is lamb. It's not that that was funny.
Yeah. So I believe that you can also convert your ox. I mean, if you're, let's say, you know,
you're more of an OpenX loyalist and a lamb loyalist, you can just follow that community
and then put your ox to lamb, I guess. That's also an option for you, right? So I think
lots of options for people, really. It's pretty hilarious. If you want to enjoy yourself,
go take a look at the site. But yeah, so ox one, ox two, people now kind of like bridging over,
staking in prison or locking in prison, we're calling it. And one of the, you know, the next
thing that we talked about was multi collateral end of the month. That's also goes by the way,
hand in hand with multi Vioxx convert. But the general idea there is that you will be able to,
so right now you can use ox as collateral and you have ox P&L, right? Everything's powered by ox.
But end of the month, you actually be able to deposit anything. Well, not Bitcoin,
ETH, stablecoins, a bunch of other coins, hopefully some mean coins in there too,
and use those still ox P&L. So if you have negative P&L, you know, that would be, you'd
have to buy that back. If you get liquidated, you get liquidated to ox. So that could result
potentially in like a, you know, a like upward spiral and ox if the market tanks and a bunch
of people get liquidated on their other kinds of collateral. But in terms of ease of platform use,
this will be kind of harkening back to like FTX days where you could deposit anything to
trade anything. And that is like an early vision for ox fun as well.
Yeah, and I think to add on that too, is that I believe we're the only model,
the only economic model that will allow for this cycle. If you think about last cycle, right,
you had proliferation, really a portfolio margin by FTX, and it created this notion that you can
put sort of all your coins on the exchange, and it would all be usable as margins to trade
perps with. I think what's, what's happened in this cycle is that there has been a reactionary
move against it or let's say you can only use USD collateral, right. So if you think about
hyper liquid, it's only arbitrary from USDC. If you think about Avo, it's you know, you can use
ETH and Bitcoin a bit, but you know, it's still mainly USD. Same goes for pretty much all the
other ones, they're they're pretty much at most Bitcoin and Ether, plus USD. And I think that
that's, I think the idea obviously is USD as well. And then some of them have some innovation around
like, you know, whether it's yield bearing stablecoins or non yield bearing, I don't think
anyone has yield bearing ETH yet. But that's stuff we can all do, right? That's the power
of this model that we come up with. Because basically, almost any coin can be used as
a margin in an AUX powered system. And if the user makes money, they simply just make AUX,
right? And then they can sell it for their coin that they want, if they feel like it,
or they can hold the AUX, they can do whatever they want, right? And when they lose, they
become, they have a debit in AUX. And the system will convert them, their collateral into AUX
if they, you know, if they lose. And of course, they can also be liquidated into AUX if they
lose fully. So I think that, I think that this model, you know, if you think about FTX, right,
they basically had clients trading with Sol and FTT Colat. And when the price goes down,
they have to pay out dollars for that money. So that those coins get sold into dollars.
But here, it's almost like an FTT was the currency. So here, you know, coins, non,
non-AUX coins get sold into AUX when people get liquidated. So I think this is like hyper
experimental stuff that, you know, hasn't been tried, could be really cool. And I think that
this will allow us to use, you know, MOG as Colat, this will allow us to use, you know,
in the future, SPL tokens as Colat, and really anything that we can get, kind of, our heads
around in terms of how it moves. So that I think is very much the next month or so vision.
Yeah. All right. The next cool stuff going on here was the battle. And you don't need to go
into the details too much here. But let's say, actually, people can, you know what is cool?
People can look into your positions. They can look into trades. They can, actually,
on the analytics page, kind of a cool thing. People can even look into liquidation prices per asset. I
don't know if many people realize that, but you scroll down to the bottom of the AUX homepage.
There's a little tab here that says analytics. And if you click on any coin, it will show all
basically all positions aggregated, so anonymized, but all positions and the liquidation prices,
which is kind of a cool idea for people to take a look at. The idea behind radical transparency,
you know, provable solvency, all these kind of core concepts that AUX bond was. But to that,
we can all see your positions. So you are balls long. You're bullish.
I would say, I would say yes, but I would say I'm also wrong so far. But I think that Solana,
I think we both bought Solana. That's up a lot. I thought that the ETH upgrade wouldn't be as
bearish as it is. I think it's trading more like the Constantinople fork from years ago
than it is from other ones, where it's just like absolutely nukes afterward. I think that,
I don't know, maybe this means there's no ETF. But I think, like, I bought more Bitcoin than
either anyway. But I think that, yeah, if I hadn't done that, I think I would be probably the same as
you. I think that was a mistake. But I think, you know, life is long, a month is long, still have time,
still in the game. Hopefully funding comes down a bit. I think that at some point,
right, like, there needs to be a, like, look, I don't think this Bitcoin dump is really that
warranted. I think that it'll go above all time high within this month. I feel fairly high conviction
about that. And I think that, you know, EtherBDC looks like it wants to go to 05 again, maybe has
to triple tap it. But yeah, I don't think it's like, I don't think it's particularly,
particularly super long. I mean, the account can become longer as well.
Cool. Yeah. This is just so everyone knows this is a one month trading competition. So it's not,
it's a little bit tricky to have, like, short term views and a long term market
and all that kind of stuff. But everyone can see these positions and we are trading them real time.
So no fees on the account. There is a prize pool, million ox at the end for whichever
lockers or stakers, you know, are in the right pool. Yeah, I don't know. I mean, I feel pretty
constructive bullish here too, but I just, like, ETH scared me. I actually started short ETH.
Yeah, I saw that. I saw that. And like, Lucas was making fun of it. He's like,
how could anyone short ETH at 39.50? That seems crazy.
My plan was basically asking along a bunch of meme coins. ETH funding is through the roof.
And so I was like mid short ETH. It wasn't like a crazy high conviction short. But then I saw you
were long, like literally everything. And I was just thinking, if the market just goes up like
20%, I'm just screwed in this competition. So I just can't be, I can't have anything.
I can't have any shorts, basically. And then I just got lucky when I wasn't as long on the way
down. I feel like tempo wise, because I opened my account earlier and I just put on all these
positions. I think I set the tone of the vault. Because imagine if I had been short everything,
you would have been also short everything probably. It's almost like you have to just be
better than your neighbor. Well, yes. And I mean, if I really wanted to ruin the spirit here,
I would just mirror your positions and then I'd win. But we're trying not to do that. We're trying
to have fun here. So yeah. I haven't even thought about actually that very devious.
Oh, there's like, I've thought about all the angles here.
But how would you mirror my positions? Let's say I put on new ones. You would have to watch
it all day and immediately mirror it. There's a good timeline. This is a very important competition.
If I stare at this all day long, I can do that. Or I could close all my positions and prison lock
the whole thing for like week on week for the next couple of weeks. Can you prison lock from the
vault? We said we weren't going to, but I just wanted to see if it will work. So I prison locked
10K just for the hell of it. You absolutely can. Just so everyone knows, normal copy trading,
you cannot because there is a master account and then there are the staker accounts and those are
two separate accounts. So anytime the master trades, the stakers copy. But in the case of
the Sue and the Kyle vaults, those are actually set up a little bit differently. It's just one pool
of capital. So first of all, we can't redeem. We're just locked in for the competition. But second
of all, there's no copying per se. It's just trading one pool of capital each. So yes,
indeed you can prison lock. And I have done so with a very small percentage of what we have here.
What do you think is the optimal strategy for the next few weeks?
Like if you were trading, like give me some trading advice. Like if you have my portfolio,
it's down, I think what, like 5% drawdown anywhere from 5% to 10% people are making fun of it. But
again, it's a 5% drawdown, guys. It's not something in the world. And there's some stuff
that's going up still in that portfolio. But like what would be your advice to me?
It has to be different than mine, basically. And so I am scared to have massive amounts of
leverage right now. If you put on more leverage and the market rips, you will either blow up your
account or you will make a lot of money, but you will outperform me. And the other way would be to
run some like very large spread trades. Like you could, yeah, I mean, actually the way that
leverage is calculated on this platform, if you're like, it counts like gross leverage, right?
So if you put on like a massive long short, that would also scare the hell out of me.
So I'm trying to play conservative because I'm in the lead. You have to play aggressive to catch up
basically, right? And so there's a couple of moves. But the thing is, you also have like more than
twice the capital that I do. And on this liquidity on our accounts, it basically means that I can
trade some meme coins and you cannot in the same way. On the dip, I lifted the first two
levels in MoG. And then I lifted one level in Pepe. And for my account size, that is reasonable
because I can get in and out of those positions. But like you, for example, really can't make any
money on MoG, given your account size. So yeah, that's pretty much what I realized here. And
I also realized that like the sizing is like I didn't like sizing relative to my portfolio. But
if you just size like the same percentage sizing, and then if the market goes down,
then I'll be down more dollars than you. I mean, I'll be down more than you, basically.
I don't know. But you know that the team is going to calculate the art is an ROI competition,
obviously. Otherwise, you'd have I think we said it as I think we said it as a pure
actually, originally, because we think we talked about it, we're like, it's going to be too
complicated. Unless I missed this part, like it is beyond unfair. Okay, well, then I feel really
good that I'm in the lead, because you would have a huge advantage over me.
That's true. Well, we'll have to check the notes on that. I'm like 75% sure that
we said it as pure XP, you know. And that's why I was so excited. I was like, okay,
I'm gonna go along, you're gonna go along with but I have more capital than you. So it'll be easy.
So you just thought it was like, well, I just thought you're gonna go along. So I'll just go
the same percentage long, and then we'll be fine. But uh, and then you started six hours early. So
early bird catches the worm, right? I went here, I went there. Early worm, early worm eats the bird.
Yeah. So yeah. Anyway, what else do we have to cover today? I think that's it, man. This week,
there's not a ton of new stuff coming out. It's a lot of explainers, actually, because
it's enabling all different kinds of collateral, making the UX a little bit more seamless,
there's gonna be a full redesign of the aesthetics on the site, similar to more like the AI generated
aux pitchers that people seem to like. So that'll be in a couple weeks. So that but it's all kind
of UX aesthetic, like improving the UX, not like core product stuff for the next two weeks
until multicollat that that'll be a core product. Nice, nice. Oh, I guess I should announce to
I think I've tweeted them already, but I'll be at 2049 in Dubai. If any of you guys are around,
definitely come up and say hi. Aux loyalists, I assume are the main
guys in this chat right now. And then I'll be a blog show in Hong Kong as well. That's in
early May. That that'll be like a fireside chat kind of thing. It'll be quite, it'll be quite
it's almost like the keynote, I think. So both Yeah, if you guys see me, if you guys see me
at either one, just come up and talk. Awesome. Yeah, they both look good. The token 2049 one
is all about meme coins. And I think Ron Nooner is hosting. There'll be a couple. I think it's I
think they haven't officially haven't officially announced all the panel yet. So yeah, but it'll
be a fun one. Okay, well, it'll be fun. It'll be a lot of fun. You better, you better make aux
one of the meme coins, by the way. Yeah, I mean, that's one thing I keep telling people
like aux is a meme coin. And they're like, but but isn't it an exchange token? And then I'll be
like, Yeah, but why can't it be both? I think that I think that I'm gonna tell people is a meme coin
at meme coin things. For sure. Yeah, I mean, cool. All right. All right. Everyone will try to
keep this short every week, about a half hour or so. But we're going to do this regularly. So
see you next week. All right.