Collected writing and research from the Paradigm team

Everlasting Options

5.11.2021 | Dave White, Sam Bankman-Fried

Introduction This paper introduces a new type of derivative, the everlasting option. Everlasting options give traders long-term options exposure without the effort, risk, or expense of rolling positions. We derive [→]

Understanding Automated Market-Makers, Part 1: Price Impact

4.19.2021 | Hasu

Every day, thousands of people use a decentralized exchange (DEX) for the first time. However, the idiosyncrasies of a public blockchain routinely catch newcomers off-guard, even those familiar with trading on more traditional [→]

Uncovering a Four Year Old Bug

4.19.2021 | samczsun

Every adventure requires a first step - The Cheshire Cat What does it take to find a bug? What about one in a contract that's survived the test of time? [→]

A Cosmos Thesis

4.8.2021 | Charlie Noyes, Dan Robinson

On Ethereum, all applications run on a shared state machine. In Cosmos, many application-specific blockchains pass assets and other messages between one another. If Ethereum is a mainframe computer, Cosmos [→]

The Block Mined In January, 584942419325

3.30.2021 | samczsun

This is the first in a series of blog posts about the bugs I've found in go-ethereum (Geth), the official Golang implementation of the Ethereum protocol. While you don't need a deep [→]

Ethereum Blockspace – Who Gets What and Why

3.25.2021 | Georgios Konstantopoulos

“Market that can operate freely is like a wheel that can turn freely: it needs an axle and well-oiled bearings. How to provide that axle and keep those bearings well [→]

The Cartoon Guide to Perps

3.8.2021 | Dave White

Illustrations by: Chelsea Myers About a month ago, I realized I didn’t understand perps. For the cost of $1, a 100x bitcoin perp (short for “perpetual swap”) behaves like $100 of [→]

Establishing Bounds for Miner Revenue in EIP-1559

2.26.2021 | Hasu, Georgios Konstantopoulos

Goal of the analysis Establish lower, middle and upper bounds for how much miner revenue will be burned Analysis We believe that the impact of EIP-1559 on both miner revenue [→]

Miners will accept EIP-1559, here is why

2.22.2021 | Hasu, Georgios Konstantopoulos

EIP-1559 is one of the most highly-anticipated Ethereum upgrades of all time, radically changing how users bid for transactions, among other major benefits. EIP-1559 has overwhelming community support and is technically [→]

MEV and me

2.5.2021 | Charlie Noyes

Ethereum’s core insight was that flexible smart contracts allow developers to explore a new frontier of permissionless applications. The explosive growth of decentralized financial protocols built on Ethereum (“DeFi”) is [→]