Conversation

SBF
@SBF_FTX
Replying to
@SBF_FTX
4) This story ends in DeFi, but it starts at a centralized exchange in 2016. One of the strongest and most influential forces in crypto is disloyal employees. This might be obvious to some, but it was shocking to me at first. It no longer is.
1
16
SBF
@SBF_FTX
5) I've had the undeserved privileged of never hating my boss. I lucked out with my parents, and after graduating my first boss was one of the people I admire most in the world. And the last few years--well, I guess I've had my moments of disappointment in our CEO :P
1
23
SBF
@SBF_FTX
6) But a lot of people I know _do_ hate their boss, and feel as much loyalty to those who have helped them without any incentives as they do with the company that mostly just gets in their way. Most places in crypto are like this. Most, but not Bitfinex.
2
27
SBF
@SBF_FTX
7) Say what you will with Bitfinex--they have one of the best teams in the industry. The entire c-suite is devoted and sincere, and the whole company can tell. They don't get out too much--Bitfinex does way less marketing than comparable exchanges (and way more tech).
2
33
SBF
@SBF_FTX
8) They have some fire in their eyes, and I've wondered sometimes whether it was forged in the depths of 2016 as they fought through their shitstorm. They keep going, and keep building, and work extremely hard (I'm sure we've woken them up more times than they can count).
1
23
SBF
@SBF_FTX
9) Anyway their dedication stands out because most teams don't have it. Instead most have about as much drive as you'd expect when you send a market order for 500 more employees, settling tomorrow. The newer employees just don't really have that much agency at their job.
1
23
SBF
@SBF_FTX
10) And as the younger employees grow frustrated, the core team starts to slow down. The company becomes "corporate". Missions change--not to market demand, but to whatever you can still do with a large, unweidly group that's torn between being bored and tired.
1
25
SBF
@SBF_FTX
11) And it shows. Most projects have bugs they never bother fixing because they just don't really care, and hard but rewarding pathways that "aren't a good fit for their strategic vision". Sometimes they die out. But sometimes they make a lot of money. Such is life.
1
24
SBF
@SBF_FTX
12) Nothing in the above paragraphs sounds like DeFi. Say what you will about YFI--it's _definitely_ not slow or boring or corporate. It's new and exciting and scary and weird and rough around the edges. DeFi is glowing with enthusiasm right now.
1
37
SBF
@SBF_FTX
13) But a lot of it doesn't really feel to me like Paolo staying up late to finish processing transactions for the day. It feels more like 2017, and it actually feels surprising that the mascot for Yield Farming isn't Doge.
1
36
SBF
@SBF_FTX
Replying to
@SBF_FTX
15) What will remain-and endure-will be in some ways frustratingly random. But in others it will make total sense. True yield can be a business model, but inflation isn't, and most of the current growth of DeFi traces back to buying usage of your platform by giving away tokens.
2
49
SBF
@SBF_FTX
16) Some of those will be around for a while but most will die off as soon as they stop giving away their tokens for marketing--or as soon as people stop paying for them. And what will be left, more often than not, are the teams gave it everything.
1
23
SBF
@SBF_FTX
17) I've written a fair bit about Compound. Partially it's because COMP is hot! But also I've known some of the team for a while. And for more years than most projects last, they've been grinding. And it shows.
1
33
SBF
@SBF_FTX
18) For one thing, they know their shit. But also their platform speaks of a vision and drive to build a damn good product. Who knows how much value the governance will bring in the end, but it's implemented beautifully, cleanly, and powerfully.
1
28
SBF
@SBF_FTX
19) Which is important, because the truth is that it takes about 2 weeks to build a functional DeFi borrow-lending platform. The fact that they have one, and minted an ERC20 token, and were around for the DeFi explosion, doesn't really say much about them. The details do.
1
26
SBF
@SBF_FTX
20) I don't know how Compound will evolve. Maybe it will die out for another platform with more Yield. I would be sad. But sometimes that's how the world works. Or maybe they will keep grinding, and keep reaching further, and be the project people admire.
1
18
SBF
@SBF_FTX
21) I'm not going to shit on any particular projects here. The truth is most of my targets have done quite well for themselves this year! Joke's on me, I guess. But most projects in DeFi are stupid. They're half-assed and overconfident and lack much real utility.
1
42
SBF
@SBF_FTX
22) Anyway, people often tell me that I need to slow down, and rest more, and make sure to maintain work life balance. I smile and nod, because I think it (usually) comes from genuine care and worry. I draw that fire away from my colleagues, but the truth is many are as guilty.
1
28
SBF
@SBF_FTX
23) It's 3:40am as I write this, and I'm not the only one here. Slack pings, machines beep, keys clack, and we keep moving forward. I know I've stressed out lots of coworkers; you can see it in their eyes sometimes as they fight to stay awake until they finish their project.
1
43
SBF
@SBF_FTX
24) Facebook pings, and unlike Slack it gets ignored. That can wait. Anyway, I smile and nod, and say I'll try to catch up on sleep soon, but I know I won't. Nishad sits next to me, eyes blurry; he can't go to sleep until we list a new market. If he stays up for it, so will I.
1
41
SBF
@SBF_FTX
25) But more than that, I don't _want_ to slow down. Because the truth is that sometimes those sayings about moderation and just doing your fair share are bullshit. There's always more you can do, and usually more is better, whether it's more features or more stability.
3
56
SBF
@SBF_FTX
26) And for most of the people I’m fortunate enough to work with, this isn’t just a job, a thing you do to buy food and shelter. It’s our goal and our passion, or at least a stop along that path.
1
42
SBF
@SBF_FTX
27) We want to bring it as far as it can go, and we want to do it right. Otherwise there’s no way anyone would wake up at 3am for a phone call, or settle balances from their bed before turning it.
1
26
SBF
@SBF_FTX
28) And there’s now way Gary would have gotten on a plane across the country for a company that didn’t exist yet if ‘good enough’ were the goal. Sometimes we see that in another project, and hope we can find a way to be on the same side.
1
23
SBF
@SBF_FTX
29) They might not make it. But they’ve given themselves a fighting shot, and more than that they’ve given themselves a chance to do more than just ‘well enough’. It happens, now and then. It happened when we talked with Swipe, and felt like ‘oh, yeah, they really care'.
3
23
SBF
@SBF_FTX
30) It happened when we talked with Transfero, and when QCP took us out to dinner the first time we met them. It’s happened sometimes in DeFi, too, but not as much as it should.
1
26
SBF
@SBF_FTX
31) And that’s a Big Deal, because right now DeFi has a lot of hype. It has a huge opening. It’s future will depend on what it makes of that. Because if the space never gets faster or more powerful or better designed, it will go the way of 2017.
1
30