Collected writing and research from the Paradigm team

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 [→]

(Almost) Everything you need to know about Optimistic Rollup

1.27.2021 | Georgios Konstantopoulos

One of the biggest challenges in the Ethereum ecosystem is having low latency and high throughput under tight resource constraints (e.g. CPU, bandwidth, memory, disk space). The decentralization of a [→]

So you want to use a price oracle

11.9.2020 | samczsun

In late 2019, I published a post titled “Taking undercollateralized loans for fun and for profit”. In it, I described an economic attack on Ethereum dApps that rely on accurate [→]

Escaping the Dark Forest

9.24.2020 | samczsun

I was about to wrap up for the night when I decided to take another look at some smart contracts. I wasn’t expecting anything interesting, of course. Over the past [→]

Analysis of EIP-1559

6.10.2020 | Georgios Konstantopoulos, Hasu

If implemented, Ethereum improvement proposal (EIP) 1559 will be the largest change to how users bid for blockspace in any of the major blockchains. While the proposed rules are relatively simple, the [→]

The Yield Protocol: On-Chain Lending With Interest Rate Discovery

4.1.2020 | Dan Robinson

Read the paper here: PDF Abstract This paper presents a sketch of a new building block for decentralized finance: yTokens. yTokens are like zero-coupon bonds: on-chain obligations that settle on [→]

An analysis of Uniswap markets

11.1.2019 | Guillermo Angeris, Hsien-Tang Kao, Rei Chiang, Charlie Noyes, Tarun Chitra

Read the paper here: PDF Abstract Uniswap -- and other constant product markets -- appear to work well in practice despite their simplicity. In this paper, we give a simple [→]