Do Just-In-Time (JIT) liquidity or Miner Extractable Value (MEV) strategies materially affect trading in Avalanche’s largest pool (wAVAX/USDC)?

We compare central bankers to 'Protoplasmic Jellies' and then derive a basic quant risk model for crypto-native assets.

At its core, the emerging DeFi lending market is built around a simple but powerful mechanism:Depositors in DeFi provide USD liquidity.Borrowers use that liquidity to fund leveraged crypto basis trades — typically the difference between perpetual swaps and spot prices across exchanges.This means that DeFi borrow rates are determined by two supply/demand dynamics:The demand for crypto leverage (e.g. via perps), andThe availability of capital from DeFi depositors.Compliance and InsuranceFor DeF...