George Austin

🚀 Reward Distribution is live on EigenLayer In July I penned a research report for Twinstake looking at how EigenLayer is currently placed for institutional requirements. https://lnkd.in/eyZbtk_g The TL;DR was that whilst it’s a very exciting project that has captured the interest of the retail market, there remains many open questions and updates for institutions to be ready to put their ticket sizes into restaking. One element I specifically noted was around the rewards distribution mechanism since, until very recently, any restaking activity on Eigenlayer was for points accrual only. However as of August 6th, EigenLayer is now live with their rewards distribution mechanism so that AVSs can provide rewards to restakers and operators. 🔎Let’s dive into the details of this …. As noted above, until this point, any restakers were accumulating points for staking their ETH to an AVS (or to multiple AVSs). There were some markets where these points could be traded (e.g Whale Market) however in general restakers were simply watching their points balance increase but with no immediate utility. With this upgrade AVSs can now set: 🕜 The time period for which rewards are valid (e.g this can be all the way back to the M2 upgrade to ensure that current AVS restakers do not move their stake to a live reward distributing AVS) 🪙 What rewards amount is paid out depending on what assets the restaker is delegating (e.g if a user is staking EIGEN they may get higher rewards than someone staking a liquid staking token) 🚀 The token the reward is paid out in. This can be any ERC20 token and is likely to be the native asset for the AVS in order to stimulate their ecosystem and to have funds to pay rewards from. Eventually this will be a multi-token payout structure. Rewards are calculated on a daily basis however they are visible 2 days later and there is a further 7 day activation delay for when the rewards can be claimed. There can also be up to 7 days for the ‘proof’ of the rewards to be submitted onchain - leading to a potential 16 day delay to claim rewards. Operators are capped at a flat 10% commission and will only have rewards distributed to them for each full day they have opted in to validate the AVS. It’s important to note that currently no AVSs have rewards distribution enabled. EigenDA is expected to be one of the first and others will likely switch this functionality on over the coming quarters. In addition to this protocol level upgrade, the EigenLayer UI now also shows restakers and operators the rewards they have accumulated and can claim. Interestingly, EigenLayer’s reward distribution notice on July 26th mentioned that they had ear marked 4% of the EIGEN supply as a ‘reward-boost’ to supplement AVS rewards and to pay out for AVSs who haven’t yet enabled reward distributions. Possibly this idea has been superseded by the retrospective rewards functionality or it will come later.

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The June 24 Expiry causing a dent in the recent rapid rise of open interest in ESTR Futures. ICE the outlier in terms of open interest. However, this week on the desk we received an order to sell a single month in good size across the exchanges to maximise liquidity (whilst not fungible they all settle into cash at the same time), interestingly we got filled on 50% via CME – not what you would think. I’m very interested to hear from anyone keen to trade the basis ESTR vs Euribor Futures, E/E. I believe there’s a way to increase liquidity and trading in these. #markets #futures #cme #eurex #ice

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https://lnkd.in/eY3-AmYM will MoF walk the walk!?.. #JPY strength to play through opts. A very decent chunk of 5s and 7s UST auctions coming up, #SPX500 nearly achieved ideal correction level 4800-4900 range, mega cap earnings and PCE coming up - #highfrolonger still in play, core inflation could actually end up closer to 4.5% towards q3 2024.. QQQ ideal correction more towards 16K, the growth vs value rotation only just started #assetmanagement #qualitybalancesheets

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interactive investor Launches Social Media Platform for Investors Interactive Investor (ii), one of the UK's largest DIY investing platforms, has launched ii Community, a new social media app aimed at transforming how its users discuss investments, stock picks, and portfolio strategies. With over 400,000 users and £55 billion AUA, ii is well-positioned to leverage the power of social interaction in driving its platform forward. Competitors such as eToro and Trading 212 already have similar platforms, with eToro’s Social Trading and Trading 212’s 212 Social allowing users to share trading ideas and follow others' strategies. However, ii Community goes a step further by enabling users to benchmark their portfolio performance, compare strategies, and engage in detailed discussions on market trends and global events. Lee Wild, Head of Equity Strategy at Interactive Investor, stated, “The ii Community app lets ii customers discuss market trends, investment ideas, and winning trades... it's about fostering open, transparent, and insightful conversations." Wild believes that by allowing users to anonymously ask questions and share tips, ii Community will make investing less intimidating for those who find the process complicated. Competitor landscape: Interactive Investor’s move mirrors trends from social trading pioneers like eToro, which has gained millions of users globally. But ii’s new approach could propel its business by offering a dedicated space for users focused on learning and investing, without distractions from unrelated content found on platforms like Reddit or X (formerly Twitter). As retail investors increasingly turn to social platforms for advice, ii is well-placed to capture market share, especially with research showing 16% of under-40s use social media as their primary investment resource. The platform also aims to combat concerns over unqualified advice on general platforms by providing a space for responsible financial discussions. With the addition of performance tracking and weekly reviews, ii Community could enhance user engagement, setting ii apart in a highly competitive sector. #Investing #Fintech #SocialTrading #InteractiveInvestor #ETFs #RetailInvesting #PortfolioManagement #InvestmentTips #ARKInvest

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Have you taken our 4 mins trader test? Today I'll be personally going through the scores to see if any of you have got what it takes to be a part of a major Futures desk. This will end by end of play today - Wednesday 14th August at 5pm London time Follow the 1,2,3 and change your life. 1. Take the 4 mins test and get a score and assessment 2. Book me in for a discovery call in the link in the comments 3. Start your journey to create the real currency of value. More TIME. https://lnkd.in/eAgpZcgy

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The reliably interesting Joachim Klement covers MiFID2 in his excellent Substack today. For a suite of regulation that cost tens of billions to implement, I have never heard one positive thing said about MiFID2. Unfortunately, Joachim doesn't buck that trend and instead points out the research showing how it has led to increased costs and reduced liquidity. Perhaps someone can explain how MiFID has improved my life. https://lnkd.in/dTVUKZqb

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The Bank of England (BoE) proactively supports innovation in financial markets, particularly in the post-trade environment where new technologies like distributed ledger technology (DLT) are being explored. To achieve this, they have launched the Digital Securities Sandbox (DSS), a "test" regulatory environment allowing firms to experiment with DLT in issuing, trading, and settling securities. Key points: Balancing Innovation and Stability: The BoE recognises the need to balance fostering innovation with maintaining financial stability. Digital Securities Sandbox (DSS): The DSS will provide a controlled environment for firms to test DLT-based solutions live. Flexible and Proportionate Rules: The DSS will have a more flexible rulebook that is initially more straightforward for new entrants and gradually increases complexity as activity grows. Financial Stability Safeguards: Limits on the value of securities in the sandbox and firm-specific limits will help manage financial stability risks. Collaboration with Industry: The BoE encourages industry engagement to help shape the future regulatory framework for digital securities. Implications for Firms: Opportunity for Innovation: Firms can use the DSS to test and refine their DLT-based solutions in a live market environment. Reduced Regulatory Barriers: The DSS offers a less burdensome regulatory framework, especially for new entrants and smaller firms. Collaboration: Firms can collaborate with the BoE and FCA to shape the development of a permanent regulatory framework for digital securities. Access to New Markets: Successful participation in the DSS could open access to new markets and potential business opportunities. Risk Management: Firms must still demonstrate robust risk management practices and comply with evolving regulatory requirements. Next Steps for Firms: Evaluate the DSS: Assess whether participation in the DSS aligns with your firm's strategic goals and risk appetite. Submit Feedback: Engage in the consultation process to provide feedback on the proposed DSS framework. Prepare for Participation: If interested, start preparing for the DSS by developing a comprehensive business plan and ensuring your DLT solution meets the required standards. Stay Informed: Keep abreast of the latest developments in digital securities and regulatory guidance to adapt your business strategy accordingly. Overall, the Digital Securities Sandbox presents a unique opportunity for firms to participate in the next frontier of innovation in financial markets. By embracing this initiative, firms can contribute to the evolution of the economic system and unlock the potential benefits of DLT while adhering to a robust regulatory framework. #boe #digitalsecuritiessandbox #dlt https://lnkd.in/eGni7jFD

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Many people locked in energy rates before October's 10% price cap hike due to information and guidance. So why are 65% of UK SMEs still not using hedging tools for currency risk? Well, the short answer is a lack of information and guidance from their FX provider. Imagine if nobody was told there would be a price increase in energy for variable tariff holders. Imagine the shock you'd have when your anticipated monthly budget is now out the window as your new invoice costs more than you planned for. This is a problem many businesses face when it comes to currency fluctuations. Let's face it, most finance teams are stretched as it is and 'time poor' is an understatement for them. Staying abreast with market news, trying to figure out a currency risk strategy, looking at a currency chart to try and understand candlesticks. For many business owners and finance team leaders, it's all Greek to them. A lot of businesses simply don't have the knowledge, experience or time to even begin to tackle this issue. So why stay with a currency provider that offers a transaction service and that's it? Find a provider that you like dealing with, that offers advice when you need it, and that answers quickly to your requests. One that listens to the plans you have and helps to design a strategy to support you and your business. If you're using a traditional high street bank and you're getting little to no support. Or you're with one of the online Neobanks who take ages to respond to a simple request. Look for someone smaller but capable of managing your FX needs. It's like buying your meat from a supermarket or a local butcher. Both in theory offer the same thing, but you know deep down everything is better with the smaller, specialised firm. Reach out if you're ready for a change of FX providers that will make an actual difference. #ForeignCurrency #InternationalPayments #FXProviders

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STRIP MALL DEAL UPDATE 🏬🏪🍕 Here's an update on the latest non-performing loan we acquired in our fund (numbers are rounded for readability) We acquired this loan in May and will have title next week I underwrote a more conservative 9 months so we're beating the base case nicely We could have taken title sooner, but didn't I'm going to explain our strategy below: I bought this loan knowing that the payoff was considerably more than the asset value Post-close we sharpened our pencils and arrived at a payoff over 8mm after a thorough review of the loan docs We sent the borrower a letter advising them of their default and the total amount due The borrower offered us title we could've done a deed-in-lieu of foreclosure in a month but We pursued a stipulated foreclosure (a friendly court process) instead for 2 reasons: 1. conveyance tax 2. future tax appeal 1. CONVEYANCE TAX 💸 conveyance tax is the tax paid on the transfer of property different jurisdictions treat conveyance to creditors differently in terms of levying conveyance tax going foreclosure saved us 60-75k 2. TAX APPEAL 📄 One reason the asset struggled is property taxes are 50% higher than neighbors tenants are NNN, but higher property tax means we need a lower base rent to compete a foreclosure judgment will help us show the taxes are too high that's why we went with a stipulated foreclosure instead of just taking the deeds We also got the contents of the operating account which was around 100k What did the borrower get out of it? The borrower was released from their obligations under the note which may have included personal responsibility for the deficiency A deficiency is the difference between the debt and the collateral value the debt was 8.5mm and the collateral value only 5.5mm; a 3mm deficiency Before getting into the real estate game plan, let's review the numbers: We're stepping into about 1.25mm of equity above our basis (note purchase price + legal - account surrender) This is a great start and we're running ahead of schedule, but we believe there is even more juice in the real estate play THE REAL ESTATE PLAY With a little capex and leasing, the center could be worth closer to 7.5mm let's dig in: Current rents of 19 PSF NNN are below market, but the existing leases don't roll off soon we have two vacancies 1,300 sqft standalone 8,500 sqft at the end of the center we signed an LOI for a ground lease with a coffee franchisee to demolish the existing 1,300 sqft space for their own multi-lane drive thru Despite being a fraction of the sqft, this increases base rental revenue by 20% Assuming we can fill the other vacant 8,500 sqft at 17 psf, the stabilized value at an 8 cap is ~7.5mm - If you like this kind of deep dive into CRE debt, give me a like/follow - if you know someone who needs 8,500 sqft in CT on a prime retail corridor shoot me a DM - If you want to learn about our fund click the link below https://shorturl.at/bLqk7

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<EC Morning Brief> - 21Jun Cost of Trading EC ! The new EC2506 contract will be introduced to the market next Tue, with an IM of 18% and trading fee of 0.06% of the contract value. Interestingly, the table shows the EC IM/Fee history and current IM/Fee of other commodities. The EC IM ratio is 2x > crude oil, 4x > gold. Notably, the EC fee is now 60x higher since its launch and around 20x higher than its competitors.

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New Trader TV This Week - Phil Milburn at Liontrust Asset Management PLC warns of major political volatility ahead and the need for de-risking portfolios over the next few weeks. While the fund manager spoke to Trader TV ahead of Biden’s announcement to withdraw from the election race late on July 21, in this episode, he unpacks how he sees politics and economics driving trading activity this year and dissects what a Trump presidency could mean for markets. In this episode: 📈 Economics Vs Politics – how they will drive market activity 🏛 What a potential Trump presidency could mean for markets? ⚠ Preparing for election volatility and risks 📊 The US Stock rotation – a blip or a trend? 🌍 Europe and the UK –where are they in their interest rate cycle? In the extended show, available to our audience that signs up to Trader TV’s mailing list and available on Tradertv.net, Milburn also his concerns on broader market liquidity and why he fears a potential “liquidity-based accident” sometime this year. If you didn’t sign up to Trader TV’s newsletters and wish to have the full interview sent to your inbox each week reach out to [email protected]. The show is supported by Cabrera Capital Markets and MTS Markets. #trading #fixedincome #equities #electionvolatility #Trump #Biden #markets

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Do not debtonate? Banks are the main targets here. But private lending, which has blossomed recently and is expected to account for around a third of the leveraged loan market, is also coming under fire. The next wave of refinancing and the potential resurgence of deal activity will mean even closer scrutiny? LPs' appetite for this asset class appears to remain positive 

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GBP   Following some hawkish comments by BoE Chief Economist Huw Pill and decent UK PMI data, GBP recovered some of its losses against a slightly weaker USD and, to a lesser extent, against the EUR. Huw Pill said nothing new indicates an improvement in the divide between the MPC member's opinion on monetary easing and stressed that there is a “reasonable way to go” before he is convinced that underlying price pressures are under control. There was positive movement in the UK service sector, carrying the composite index to a one-year high. Still, these broadly positive signals for growth must be considered, with the manufacturing PMI survey dropping below 50.0 in April and the UK budget deficit exceeding expectations. There is not much in the UK economic calendar over the next few days, and GBP is expected to stay within a tight range in the short term despite recent data undermining any GBP strength.   EUR   Today’s IFO index gives more optimism for an improvement in the German economy. This doesn’t necessarily mean a strong recovery is imminent, as structural weaknesses remain in Germany. The US-eurozone divergence in data has benefited EUR/USD, although it has not managed to stay above 1.0700 so far today. Investors are still pricing 75bp of easing by year-end, and ECB members appear to be converging around this view, and the recent upbeat Eurozone data is unlikely to change this. There needs to be a sustained positive risk sentiment environment to keep EUR/USD above 1.0700, and if the ECB continues to suggest that there will be rate cuts as inflation declines, EUR will remain under pressure.   USD   Yesterday, the dollar dropped as US S&P Global PMIs came in weaker than expected. Markets seemed to be surprised by the diverging patterns with eurozone PMIs. The eurozone composite PMI is higher than the US for the first time in 12 months. Tomorrow, we will see how much GDP growth has slowed in the first quarter, which could cause some moves in the currency markets. Any major repricing in Fed expectations can only be triggered by lower inflation, soft employment figures, or Fed communication. All eyes will be on PCE inflation on Friday, the Fed meeting on 1 May, and jobs data on 3 May. Investors seemed to be considering a risk-on, dollar-off narrative even before the US PMI data was published. There is not much happening that will move USD until GDP and, more importantly, PCE figures are released later this week. There may be some short-term pressure on the dollar, but resilient GDP and PCE data could favour USD by the end of the week.

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📈 InvestEngine: Fastest-Growing UK Investment Platform in 2024 InvestEngine has been recognized as the fastest-growing investment platform in the UK for 2024, with a remarkable 117.6% growth year-to-date. The demand for ETFs continues to rise, and InvestEngine’s focus on low-cost, diversified investing options has positioned it ahead of competitors. In Q2 alone, the platform saw a 53% increase in assets, with total assets under management (AUM) reaching GBP 674 million. According to Andrew Prosser, Head of Investments, the platform’s user-friendly experience, low fees, and the growing popularity of ETFs have been key drivers of this impressive growth. With both DIY portfolios and professionally managed portfolios, InvestEngine meets the needs of both novice and experienced investors. As the Autumn Budget approaches, changes to ISAs and pension investments may present big decisions for investors. InvestEngine continues to advocate for simplifying the ISA system, ensuring investors have the information they need to make informed decisions. #ETFInvesting #UKFinance #InvestEngine #ARKInvest #WealthManagement #FinancialGrowth

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Revo Capital's June 2024 Newsletter is out 🎯 Exciting fundraising news from our #fintech portfolio companies 🙌 Midas raised $45 million led by Portage , Bumper UK secured £42 million led by Shell Ventures with participation from notable #CVCs, and TransferGo raised $10 million from Taiwania Capital, doubling its valuation and reaching profitability 📈 In Q1 2024, Türkiye's startup ecosystem attracted $111 million in a quarterly record of 161 deals 😍 ranking 2nd in Europe for #seed funding, supported by over 300 #VC funds and offering early-stage valuations significantly lower than Europe and the US 🌎 You can read more about these exciting updates from Revo Capital's portfolio companies and the #startup ecosystem across #Türkiye and #CEE from the link 👉 https://lnkd.in/djsMS4rB To subscribe to our newsletter 🔗 https://lnkd.in/dJ_eR4j5

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Big changes at Kraken today. With Arjun Sethi joining us as co-CEO, we’re doubling down on speed and execution to accelerate crypto adoption. We’re making shifts to simplify our structure, removing layers and refocusing on what matters most—building the best possible experience for our clients. The result is a new structure that prioritizes builders and building. Changes like these are bittersweet. Saying goodbye to talented colleagues is tough, and we deeply appreciate their contributions. At the same time, there’s real excitement about what’s next and the mission ahead. The next chapter of Kraken starts today. https://lnkd.in/gnFEjFGP

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