Another Difficult Personal Decision We’ve made the difficult personal decision…to stay miles away from every FAKE stablecoins out there and continue trading on @HyperliquidX, where we can literally reverse exposure in minutes with minimal market impact. 🤣 Not because @PacmanBlur, @SmokeyTheBera, or @pauliepunt’s ex–best friend 🤣have been calling this BS out — but because if most of your assets sit off-chain, you should NOT be called a stablecoin, and you definitely shouldn’t be looping leverage on top of something that is illiquid by definition. @pythianism called it “RWA looping” (conveniently aligned with @hiFramework’s latest investments — we understand it’s easy to sell LPs on a pivot to AI infra during AI-mania kek), but if Buffett called derivatives WMD back in 2008, then looping on illiquid assets with dubious transparency and spreads that clearly can’t outlast on-chain borrow costs is just the tokenized version of WMD. ⸻ Why D2 Doesn’t Touch That Stuff At D2, we made very conservative design choices since December 2023, and we never marketed our stablecoin-deposit strategy as a “stablecoin.” Even without a single down epoch (yet 🙏💚), calling it that would have been misleading — that’s exactly why we named it ETH++ and now HYPE++, so users wouldn’t get confused. Our triple-audited architecture guarantees that all users can withdraw at the same time, under the same conditions, during the withdrawal/deposit window: This is why even @StreamDefi could withdraw their entire position in one transaction without affecting any other user. (Receipts attached 👇) And — broken clock or not, right twice a day 🤣 — Caleb invested in both d2HYPE and HYPE++, and made money in both. ⸻ With the Premise (as @GearboxProtocol correctly pointed out) That Looping is Broken…Curious to See How Others Try to Fix It I’m genuinely curious how @sonyasunkim, @3f_romeo, @3FLabs @MikeIppolito_ try to solve this fundamental mismatch, as they discussed on @thebellcurvepod: But when your last hedge-fund employer is — the largest private lender in Asia with $50B AUM — forgive us for being skeptical that it’s “good” to tokenize and loop leverage on private credit, or anything with the liquidity profile of private credit. Private credit is a lawyers-and-paranoid-people game. You negotiate covenants line-by-line, and you need a very specific skillset — the one my ex-colleagues at had. That skillset is nothing like what Vance learned at Framework. Sorry, mate. VC is a home-run business.Private credit is precision-risk management. And definitely completely different than the ‘skill set’ @Re7Labs @MEVCapital @hyperithm @TelosConsilium showed ( or lack of, kek) ⸻ And One Last Funny Note… Sonia referenced @FasanaraDigital MF1as an example of illiquid private credit ( we like the flowcharts 💚) The stablecoin that Stream Finance used to repay the loan against MF1? It came from their withdrawal of HYPE++ in one transaction, without any impact on other users. So to anyone exposed to @StreamDefi: you’re welcome. 💚 Hyperliquid