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Point Systems: Are Point Programs Working?

Carolina Goldstein
26 min read

Are point programs working? In this article we go over the different approaches that different protocols utilized in their point programs.

Transient Storage: Revolutionizing Data Handling

25 min read

In this article, we will delve into Transient Storage (EIP-1153), the new, long-awaited feature at the EVM level that introduces another data location.

ERC404: The Experimental Semi-Fungible Standard

15 min read

ERC404: The Experimental Semi-Fungible Standard has generated significant interest due to its novel approach to semi-fungible tokens.

Abracadabra Money Exploit - The Vulnerability that turns 1 Ether into $6.49 million

11 min read

Abracadabra Money Exploit

Exploring the DeFi Tokenomics Landscape

Carolina Goldstein & Tiago Fernandes
20 min read

In this article, we will delve into the most relevant token mechanisms driving DeFi and how they are used by different protocols.

Option Series Part IV - Economic Incentives for LPs

Pablo Bartol
17 min read

This article analyzes liquidity, trading volume, capital efficiency, tokenomics, fees, and structured product performance and more.

Exploring the DeFi Perpetual Futures Landscape - Part I

Pablo Bartol
18 min read

DeFi Perpetuals Landscape 2023

Arithmetization in STARKs Series Part III - Degree Bounds and Computational Complexity

João Farinha & Tiago Martins
11 min read

This report compares the low-degree bounds of AIR and PAIR, specifically with proximity testing in mind.

Insurance Series Part III - Unwrapping Different Claim Assessment Types

Catarina Urgueira
13 min read

This report deconstructs the existing claim assessment processes used in the DeFi Insurance space.

Arithmetization in STARKs Series Part II - Preprocessed AIR

João Farinha & Tiago Martins
12 min read

In Part II of our Series on Arithmetization Methods for STARKs, we describe the construction of PAIR in the general case of multiple disjoint constraints.

Insurance Series Part II - Exploring Premium Pricing and Risk Models for Insurance

Catarina Urgueira
20 min read

This article looks at the inner workings of the pricing models and risk used by the different protocols.

Arithmetization in STARKs Series Part I - An Introduction to AIR

João Farinha & Tiago Martins
12 min read

Arithmetization of computational integrity statements into polynomial constraints with known degree bounds, for use in STARKs with low-degree proximity testing.

Insurance Series Part I - An Introduction to DeFi Insurance

Catarina Urgueira
20 min read

This report provides a historical overview of the DeFi Insurance space, compares the sources for underwriting capital, and explores the existing cover types.

Deriving Impermanent Loss Formula in Balancer

Rúben do Reis
14 min read

Decentralized exchanges, specifically automated market makers (AMMs), play a crucial role in the DeFi ecosystem.

Volatility Series Part II - Applying GARCH Models to Crypto Assets

Carolina Goldstein & Joana Gomes
14 min read

In the first part of our article, we explored the nature of volatility and its importance in the context of cryptocurrency markets. We also emphasized the

Volatility Series Part I - Modeling Volatility in Crypto Assets

Carolina Goldstein & Joana Gomes
16 min read

The crypto market has been subject to significant turbulence, as evidenced by events like the market crash in May 2021, which caused its market cap to drop

Neferpitou: Three Sigma’s Agent-Based Simulation Framework

Carolina Goldstein & Andreia Pereira
10 min read

Diving into the world of agent-based modeling since early 2022, we at Three Sigma have been working to address a crucial gap in the blockchain industry.

Option Series Part III - Navigating Through Options Collateralization

Pablo Bartol
16 min read

In this third article we will look at option collateralization, specifically the margin and liquidation engines of the protocols that allow leverage option

On Tokenomics Series Part II - The Game of Supply and Demand: The Demand

Carolina Goldstein & Joana Gomes
12 min read

This is the second part of a two-part blog post about how supply and demand affect token design. The first part explained how to match the project's goals

Options Series Part II - Exploring Different Pricing Approaches and Tokenomics

Pablo Bartol
15 min read

This second article will look at the inner workings of pricing, especially the violations of the Black-Scholes Model (BSM), which is the most commonly used

On Tokenomics Series Part I - The Game of Supply and Demand: The Supply

Carolina Goldstein & Joana Gomes
14 min read

Tokenomics, or the study of how tokens are created, distributed, and used within blockchain protocols, is a crucial aspect of the cryptocurrency and blockchain

Options Series Part I - An Overview of the DeFi Options Landscape

Pablo Bartol
20 min read

DeFi Options have become a highly sought-after product. However, compared to centralized counterparties, DeFi remains a small

Challenging Periods Reimagined Part II - The Key Role of Sequencer Decentralization

Daniel Fonseca & André Pereira
20 min read

Challenging Periods Reimagined Series: Part II proposes decentralized sequencers with adjusted governance and incentives for improved Optimistic Rollups.

Distributed Automated Market Makers (dAMMs)

Tiago Fernandes
15 min read

Capital efficiency has become a major concern for L2 solutions as DeFi continues to grow since liquidity is divided between L1 and multiple L2s.

The SVB Collapse: A Wake Up Call for Better Risk Management

Carolina Goldstein & Joana Gomes
5 min read

Circle, the company behind the USDC stablecoin, acknowledged on Friday to having a $3.3 billion exposure to the now collapsed Silicon Valley Bank (SVB).

Challenging Periods Reimagined Series Part I - Road to a Dynamic Challenging Period

Daniel Fonseca & André Pereira
25 min read

This article proposes a dynamic model for optimistic rollups' challenging period, having a minimum of 23h to minimize risks.

Investment Thesis: Arrakis Finance

Pablo Bartol
12 min read

Arrakis acts as a decentralized market-maker where users have their liquidity managed through Arrakis, and projects can create deep liquidity for their native

Working with Three Sigma: A Q&A with the Yeti Finance Team

Pedro Santos & Carolina Goldstein
5 min read

Yeti Finance was one of the first projects Three Sigma worked with, and we are very fond of the long-term partnership that developed over the duration of the

The Hitchhiker's Guide to DeFi Insurance

Carolina Goldstein & Catarina Urgueira & Tomás Thor Palmeirim
120 min read

Since the early days, the DeFi market has been severely shaken by hacks, bugs, exploits, rug-pulls, flash loan attacks, and a long list of attack vectors,

Investment Thesis: Insrt Finance

Tomás Thor Palmeirim
7 min read

Insrt Finance is building a layer of simplification and abstraction for NFT finance, aggregating yield-generating strategies into Yearn-like user accessible

Introducing: Three Sigma

Afonso Oliveira & Tiago Barbosa & Eduardo Morgado
6 min read

The crypto/web3 industry has demonstrated how much it benefits from technical expertise and how far it still is from reaching its full potential.