This is a free preview of a paid episode. To hear more, visit davidzmorris.substack.com

In today's show, we dive into the risks of two major new DeFi products: The restaking protocol Eigenlayer and the yield-producing stablecoin Ethena.

We get insights from a top-tier degen: Bloq CSO Zane Huffman. Huffman walks us through the time a restaking protocol blew up on BNB, and its consequences.

But Zane also thinks worries about these protocols may be getting amplified because of recency bias - specifically, the memory of the collaps of the TerraUSD stablecoin. But Terra, he argues, has almost nothing in common with the way Ethena, or Eigenlayer, work.

Finally, premium Dark Markets subscribers get a bonus section, with Zane discussing his take on crypto trading strategies - and which ones are more reliable than mere gambling.

Read Vitalik Buterin's thoughts on Restaking: https://vitalik.eth.limo/general/2023/05/21/dont_overload.html

Zane Huffman can be found on Twitter at @jeffthedunker.

His portfolio at Bloq includes Vesper (@vesperfi) and Metronome (@metronomedao).

His substack can be found at https://greenjeff.substack.com/

Dark Markets is hosted by David Z. Morris, @davidzmorris.

Dark Markets is edited by Eleanor Pahl.

Music is by Altus Noumena.