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Illya Gerasymchuk
Entrepreneur / Engineer

โฌ‡๏ธ My Thoughts โฌ‡๏ธ

User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿ‡ฏ๐Ÿ‡ตโš ๏ธ Current risks: โ€ข Heavy reliance on debt โ€ข Large US Dollar & Securities exposure โ€ข Currency devaluation, leading to inflation These could trigger a 90s-style crisis 2.0 ๐Ÿ“‰

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๐Ÿšจ The system faced its biggest test during the 90s banking crisis: โ€ข 110 financial institutions resolved โ€ข Full deposit protection implemented โ€ข Massive debt-based interventions DICJ has met its insurance obligations, but at what cost? ๐Ÿค”

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User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿšจ The system faced its biggest test during the 90s banking crisis: โ€ข 110 financial institutions resolved โ€ข Full deposit protection implemented โ€ข Massive debt-based interventions DICJ has met its insurance obligations, but at what cost? ๐Ÿค”

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๐Ÿ‡ฏ๐Ÿ‡ต๐Ÿ†š๐Ÿ‡ช๐Ÿ‡บ Japan's & EU's deposit guarantee schemes differโฌ‡๏ธ ๐Ÿ‡ฏ๐Ÿ‡ต DICJ: Active crisis manager (Act 34 of 1971) ๐Ÿ‡ช๐Ÿ‡บ DGS: Mainly deposit protection (Directive 2014/49/EU) Japan's approach = more intervention power & broader mandate EU's approach = more focused mandate

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User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿ‡ฏ๐Ÿ‡ต๐Ÿ†š๐Ÿ‡ช๐Ÿ‡บ Japan's & EU's deposit guarantee schemes differโฌ‡๏ธ ๐Ÿ‡ฏ๐Ÿ‡ต DICJ: Active crisis manager (Act 34 of 1971) ๐Ÿ‡ช๐Ÿ‡บ DGS: Mainly deposit protection (Directive 2014/49/EU) Japan's approach = more intervention power & broader mandate EU's approach = more focused mandate

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๐Ÿ’ฐ DICJ's funding comes from: โ€ข Self-issued bonds โ€ข Insurance premiums paid by banks โ€ข Borrowed funds from financial institutions & public In practice, operation financing is heavily relied on debt, making it risky long-term ๐Ÿ“ˆ

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User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿ’ฐ DICJ's funding comes from: โ€ข Self-issued bonds โ€ข Insurance premiums paid by banks โ€ข Borrowed funds from financial institutions & public In practice, operation financing is heavily relied on debt, making it risky long-term ๐Ÿ“ˆ

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๐Ÿš€ How fast do you get your deposits back? The Incubator Bank case (2010) shows DICJ timeline in practice: โ€ข Bank failed on Friday โ€ข Deposits returned by Monday 3 days/by next working day to have insured deposits available ๐Ÿค

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User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿš€ How fast do you get your deposits back? The Incubator Bank case (2010) shows DICJ timeline in practice: โ€ข Bank failed on Friday โ€ข Deposits returned by Monday 3 days/by next working day to have insured deposits available ๐Ÿค

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๐Ÿ’ด Coverage limits: โ€ข Regular deposits: Up to ยฅ10M (~$65k/โ‚ฌ60k) โ€ข Payment & settlement accounts: 100% covered ๐Ÿ’กFun fact: During the 90s crisis, ALL deposits were fully protected. Japan gradually reduced this to ยฅ10M by 2005

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User Illya Gerasymchuk -

2024-10-27 15:51

๐Ÿ’ด Coverage limits: โ€ข Regular deposits: Up to ยฅ10M (~$65k/โ‚ฌ60k) โ€ข Payment & settlement accounts: 100% covered ๐Ÿ’กFun fact: During the 90s crisis, ALL deposits were fully protected. Japan gradually reduced this to ยฅ10M by 2005

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๐Ÿฆ The Deposit Insurance Corporation of Japan (DICJ), provisioned in the Deposit Insurance Act (DIA) defines as its goals: โ€ข Deposit insurance โ€ข Financial system stability โ€ข Troubled financial institution resolution Deposits guarantee is just one of responsibilities

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User Illya Gerasymchuk -

2024-10-27 15:50

๐Ÿฆ The Deposit Insurance Corporation of Japan (DICJ), provisioned in the Deposit Insurance Act (DIA) defines as its goals: โ€ข Deposit insurance โ€ข Financial system stability โ€ข Troubled financial institution resolution Deposits guarantee is just one of responsibilities

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๐Ÿ‡ฏ๐Ÿ‡ต How does Japan protect bank deposits when banks fail? ๐Ÿคฏ Their deposit insurance system handled 180+ financial institution failures, including the massive 90's banking crisis ๐Ÿ‘‰ Here's how Japan's ยฅ10M deposit guarantee scheme works: https://illya.sh/blog/posts/deposit-guarantee-scheme-japan-dia-dicj/ ๐Ÿงต

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User Illya Gerasymchuk -

2024-10-27 15:50

๐Ÿ‡ฏ๐Ÿ‡ต How does Japan protect bank deposits when banks fail? ๐Ÿคฏ Their deposit insurance system handled 180+ financial institution failures, including the massive 90's banking crisis ๐Ÿ‘‰ Here's how Japan's ยฅ10M deposit guarantee scheme works: https://illya.sh/blog/posts/deposit-guarantee-scheme-japan-dia-dicj/ ๐Ÿงต

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User Illya Gerasymchuk -

2024-10-22 09:25

Something tells me this will be an interesting session ๐Ÿ‘€

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User Illya Gerasymchuk -

2024-10-19 12:52

๐Ÿ‘€ Tried out the BRICS Pay demo. Gold/#XAU is one of the supported currencies (the only real money in the list!) ๐ŸŒ To be supported cross-border, within every member nation ๐Ÿ’ณ You can use VISA/Mastercard to load up your account ๐Ÿ‡ช๐Ÿ‡บWe urgently need an akin system in the #EU

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User Illya Gerasymchuk -

2024-07-27 00:46

proof of everything.

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User Illya Gerasymchuk -

2024-07-03 15:42

Public petition to call them MinaFTs ๐Ÿ˜„

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User Illya Gerasymchuk -

2024-07-01 22:00

In summary, blockchain-based Tokenized Liquid Futures: - Eliminate intermediaries - Increase transparency - Enhance liquidity - Automate risk management - Provide flexible capital deployment Thus enabling a disruptive #DeFi use-case over its #TradFi equivalent

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The smart contract automates risk management on-chain by: 1๏ธโƒฃ Enforcing margin requirements 2๏ธโƒฃ Handling liquidations 3๏ธโƒฃ Ensuring contract settlement Removing the need for trusted third parties and ensuring transparency ๐Ÿ›ก๏ธ

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User Illya Gerasymchuk -

2024-07-01 22:00

The smart contract automates risk management on-chain by: 1๏ธโƒฃ Enforcing margin requirements 2๏ธโƒฃ Handling liquidations 3๏ธโƒฃ Ensuring contract settlement Removing the need for trusted third parties and ensuring transparency ๐Ÿ›ก๏ธ

User

The tokenization of the long and the short positions of the futures contact allows for trading of the positions in a fully decentralized manner, without the need for need for a clearing house This means no trusted entity or oracles are required, ensuring full decentralization

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User Illya Gerasymchuk -

2024-07-01 22:00

The tokenization of the long and the short positions of the futures contact allows for trading of the positions in a fully decentralized manner, without the need for need for a clearing house This means no trusted entity or oracles are required, ensuring full decentralization

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๐Ÿ•‘ The later this default occurs, the higher this loss is to the offending party This aligns with the principle of the time value of money

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User Illya Gerasymchuk -

2024-07-01 22:00

๐Ÿ•‘ The later this default occurs, the higher this loss is to the offending party This aligns with the principle of the time value of money

User

๐Ÿ›Ÿ The liquidation logic makes the initial required margin a collateral for all of the parties Failure to meet the obligations means a loss of the deposited margin/collateral, either in full or in part

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User Illya Gerasymchuk -

2024-07-01 22:00

๐Ÿ›Ÿ The liquidation logic makes the initial required margin a collateral for all of the parties Failure to meet the obligations means a loss of the deposited margin/collateral, either in full or in part

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If a party fails to meet margin requirements, the smart contract: 1๏ธโƒฃ Terminates the agreement 2๏ธโƒฃ Transfers deposited assets to the compliant party 3๏ธโƒฃ Applies penalties to the defaulting party This liquidation process is executed automatically on-chain ๐Ÿค–

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User Illya Gerasymchuk -

2024-07-01 22:00

If a party fails to meet margin requirements, the smart contract: 1๏ธโƒฃ Terminates the agreement 2๏ธโƒฃ Transfers deposited assets to the compliant party 3๏ธโƒฃ Applies penalties to the defaulting party This liquidation process is executed automatically on-chain ๐Ÿค–

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Smart contract on the blockchain tracks: 1๏ธโƒฃ Deposited amounts for each party 2๏ธโƒฃ Required deposits at each checkpoint 3๏ธโƒฃ Maturity date It uses this data to automatically enforce the increasing margin schedule ๐Ÿ”

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User Illya Gerasymchuk -

2024-07-01 22:00

Smart contract on the blockchain tracks: 1๏ธโƒฃ Deposited amounts for each party 2๏ธโƒฃ Required deposits at each checkpoint 3๏ธโƒฃ Maturity date It uses this data to automatically enforce the increasing margin schedule ๐Ÿ”

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The margin in DeFi futures acts as: 1๏ธโƒฃ Traditional margin, as in TradFi 2๏ธโƒฃ Collateral hedging the counterparty risk 3๏ธโƒฃ Under-collateralized assurance for a futures contract delivery Daily/periodic settlement can be incorporated into the dynamic margin requirements

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User Illya Gerasymchuk -

2024-07-01 22:00

The margin in DeFi futures acts as: 1๏ธโƒฃ Traditional margin, as in TradFi 2๏ธโƒฃ Collateral hedging the counterparty risk 3๏ธโƒฃ Under-collateralized assurance for a futures contract delivery Daily/periodic settlement can be incorporated into the dynamic margin requirements

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Example of gradually increasing margin: - Day 1: 10% deposit required - Month 1: 25% required - Month 2: 50% required - Month 3 (Maturity): 100% required This flexibility allows parties to structure payments based on future cash flows ๐Ÿ’ฐ

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User Illya Gerasymchuk -

2024-07-01 22:00

Example of gradually increasing margin: - Day 1: 10% deposit required - Month 1: 25% required - Month 2: 50% required - Month 3 (Maturity): 100% required This flexibility allows parties to structure payments based on future cash flows ๐Ÿ’ฐ

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๐Ÿ“ˆ The margin requirements increase algorithmically over the contract's lifespan This ensurer both parties deposit their obligation in full by maturity, while allowing for partial collaterization Thus leveraging the time value of money, without the need for a trusted party

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User Illya Gerasymchuk -

2024-07-01 22:00

๐Ÿ“ˆ The margin requirements increase algorithmically over the contract's lifespan This ensurer both parties deposit their obligation in full by maturity, while allowing for partial collaterization Thus leveraging the time value of money, without the need for a trusted party

User

The DeFi margin for futures contracts differs from TradFi margins, by: 1๏ธโƒฃ Gradually increasing over time 2๏ธโƒฃ Ensuring full collateralization by maturity 3๏ธโƒฃ Delaying full payment TradFi margin's main goal is to cover daily settlement gains/losses of the futures position

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User Illya Gerasymchuk -

2024-07-01 22:00

The DeFi margin for futures contracts differs from TradFi margins, by: 1๏ธโƒฃ Gradually increasing over time 2๏ธโƒฃ Ensuring full collateralization by maturity 3๏ธโƒฃ Delaying full payment TradFi margin's main goal is to cover daily settlement gains/losses of the futures position

User

Each position (long and short) is subdivided into several fungible tokens, which can be traded independently The native token support of Mina Protocol blockchain means that a smart contract encodes both: the futures agreement, and its tokenization ๐Ÿช™

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User Illya Gerasymchuk -

2024-07-01 22:00

Each position (long and short) is subdivided into several fungible tokens, which can be traded independently The native token support of Mina Protocol blockchain means that a smart contract encodes both: the futures agreement, and its tokenization ๐Ÿช™

User

๐Ÿ” Smart contracts on the blockchain enable full tokenization of futures contracts ๐Ÿ“ˆ Both long and short positions become tokens, representing a "promise of future asset or money" This allows partial selling of positions, increasing liquidity, flexibility and reducing risk ๐Ÿ’ง

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User Illya Gerasymchuk -

2024-07-01 22:00

๐Ÿ” Smart contracts on the blockchain enable full tokenization of futures contracts ๐Ÿ“ˆ Both long and short positions become tokens, representing a "promise of future asset or money" This allows partial selling of positions, increasing liquidity, flexibility and reducing risk ๐Ÿ’ง

User

Futures pricing is deterministic, and its main goal is to prevent arbitrage: ๐Ÿ’ฐ Futures Price = Spot Price * e^(rT) - r: risk-free rate (e.g., $MINA staking yield) - T: time to maturity This formula approximates pricing at maturity in both TradFi and DeFi ๐Ÿงฎ

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