Autodeleveraging, Hyperliquid, and the $653m Debate
Tarun Chitra’s ADL paper triggered a big argument around Hyperliquid’s October 10–11 event1234.
Who’s right about what, and what actually needs fixing?
The ADL debate around Hyperliquid’s October 10–11 event has three main characters:
Hyperliquid, whose ADL is implemented in contracts and described only briefly in docs5.
Tarun’s paper, w...
Can Your AI Agent Be Forced to Drain the Wallet? The Structural Risks of AI in DeFi
When a Transformer controls a $100M DeFi vault, can it be jailbroken into draining funds? When an AI oracle publishes “anonymized” embeddings on-chain, can adversaries recover the private data? These aren’t hypothetical questions, they’re architectural constraints imposed by two recent theorems about the functional properties of deep neural netw...
A Control-Theoretic View of Arbitrum’s Constraint Ladder Gas Pricer
The Arbitrum post proposes replacing a single, exponential “backlog” pricer with a multi-constraint version and, further, a constraint ladder that inserts intermediate time scales between long-horizon and short-horizon resource constraints1. Short-horizon constraints (keeping executors from falling behind) should prompt fast fee responses, while...
The Bitter Lesson and the Old Philosophers
Richard Sutton’s weariness was palpable in his conversation with Dwarkesh Patel. After fifty years in AI, the lesson he delivered was a “bitter” one: intelligence built on human intuition consistently fails, while systems that learn from experience ultimately prevail. Computation and feedback win; imitation and intuition lose.
Aristotle, who gr...
Variance-Locked Fees - A Game-Theoretic Deep Dive into Monad’s Base-Fee Mechanism
Overview
Monad’s base-fee controller, inspired by adaptive optimizers like RMSprop, aims for responsiveness without twitchiness by making the fee step size inversely proportional to short-horizon variance in gas usage. However, in a permissionless blockchain, block producers control the very signal, gas usage $g_k$, that drives this variance es...
Equivocation Detection & Slashing in MonadBFT - Game Theory & Mechanism Design Analysis - PART 1
One-round confirmation (speculative finality) in MonadBFT is only honest if equivocation is economically self-defeating. If a client can act after a single QC (Quorum Certificate), then any attempt to sign two conflicting histories must be so expensive that no rational validator tries. That’s a mechanism-design statement, not just a protocol cla...
MonadBFT Deep Dive - A Mechanism-Design Foundation for High-Performance Consensus - Part 1
Overview
Consensus protocols live inside economies. Validators carry stake, pay operating costs, chase or defend against MEV, and sometimes collude. If we describe MonadBFT as only a message-passing algorithm, we miss the forces that drive real outcomes. In this series we treat MonadBFT as a mechanism: a rule system played by strategic agents. O...
LayerZero - The Journey of a Cross-Chain Message (V2) — “Universal Postal Service”
Overview
This is a short presentation that explains the journey of a message using LayerZero’s cross-chain messaging protocol. It’s structured like a presentation with accompanying notes.
Learning Intentions & Success Criteria
Learning Intentions
Understand how LayerZero V2 moves a message across chains—securely and reliably
Trace th...
82 post articles, 11 pages.