Daytime VC - Nighttime Cat
Joined August 2014
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Makato.eth ≽ܫ≼ retweeted
Let's talk Robinhood Chain. If you're building something, show me what you're working on. Drop your questions here. I'll be answering for the next 45 minutes. AMA.
Makato.eth ≽ܫ≼ retweeted
“Onchain is the warehouse. Banks, private credit funds and insurers are the permanent home.”
Megadeals now hinge on county boards and utility commissions.
The Compute Middle Market, on the other hand, is made up of smaller GPU deployments in existing data centers with power in place and customers under contract.
Once seasoned, those financings may be sold to institutions, so onchain capital stays liquid and keeps moving into new deployments.
USDai provides GPU-backed loans to companies, denominated in $USDai. The protocol recently executed a $1 million buyback of its governance token, $CHIP, and introduced programmatic buybacks from revenue.
To better understand what the team is targeting and how they see the category evolving in a few years, we interviewed @0xZergs, the CEO and Co-Founder of @USDai_Official.
The USDai model depends on borrowing demand, as it's a lending protocol, and that demand is constantly evolving. The demand sits in the “compute middle market”, and “power is the binding constraint, so deployments are getting smaller: 250-megawatt sites are becoming 2- to 5-megawatt modular builds. That means more borrowers needing $5M to $100M, not a few needing billions.”
While the demand is there, what makes USDai special and separates them from traditional lenders is that they can do small deals economically.
This is exactly what onchain capital unlocks: USDai can “fund a standard loan quickly, hold it while it builds a payment history, and then sell it to the institutions that wouldn’t underwrite it from scratch”.
USDai calls this model “season-and-sell”, and they do this because crypto users “prioritise liquidity above all else, while credit funds are less duration-sensitive”. The team has completed their first season-and-sell: a $106 million GPU financing sold to Silver Point and Victory Park.
Through this model, USDai doesn’t really compete with traditional capital; instead, it “delivers finished loans”.
“Onchain is the warehouse. Banks, private credit funds and insurers are the permanent home.”
One of USDai's major announcements is its focus on token alignment, but we asked the team why they felt this is the right moment to introduce programmatic buybacks. They added, “Now is the moment because we’ve proven the loop. We originated a loan, seasoned it and sold it. That turns the protocol from a balance sheet into a volume/origination engine.”
Additionally, “as the protocol scales, the source of purchases shifts. Today it is sUSDai’s net interest margin. As USDai outstanding grows, CHIP holders can switch on revenue from USDai itself for the stablecoin as settlement, which is the North Star of our protocol”
We ended our questions by asking what USDai looks like in its final form, and they added that it will be “the settlement dollar for compute”.
If USDai finance the next 10k neoclouds, “they all end up holding the same dollar, and they will transact in it.”
Makato.eth ≽ܫ≼ retweeted
Matt's message makes me think exactly about Phala and the work of the Phala Foundation in capturing value towards the PHA token. 👀
Makato.eth ≽ܫ≼ retweeted
It looks like @PhalaNetwork will once again surpass the 100B tokens processed on OpenRouter!
The next few months will be quite exciting when $PHA begins capturing the value generated by the cloud according to the roadmap published by the foundation.
Makato.eth ≽ܫ≼ retweeted
The "Compute Middle Market" refers to independent compute deployments typically <10 MW or <$500 million in CapEx.
These deployments commonly support inference workloads, operate within colocation facilities, and serve a diversified mix of users, including customers with dedicated, self-owned infrastructure.
Their smaller power requirements provide access to a broader range of sites and generally reduce exposure to the siting & political constraints associated with larger developments.
Despite their scale & demand for institutional capital, these deployments remain difficult for traditional credit funds to finance economically, given the fixed costs of sourcing, underwriting and closing individual transactions.
GOLDMAN SACHS: DEMOCRATIC WINS COULD THREATEN 45% OF US DATA CENTER EXPANSION
Goldman Sachs warns that Democratic victories at state and local levels could trigger temporary data-center construction moratoria.
🔸 45% of planned US data-center capacity could be affected.
🔸 Texas alone accounts for roughly 25% of planned capacity.
🔸 Texas, Georgia and Michigan could introduce restrictions on tax breaks, electricity, water and environmental permits.
However, Goldman expects any moratoria to be short-lived, with political pressure easing over time.
Makato.eth ≽ܫ≼ retweeted
After DOGE, Elon came to a conclusion most people missed.
He tried to reform the state from the inside. He failed. And he said it plainly: the government can't fix its own deficit. Nobody in power actually wants to cut. The machine protects itself.
So he drew the only logical conclusion. If the state can't be reformed, there are only two ways this ends.
Either global bankruptcy. Debt keeps compounding, interest payments eat the budget, and the system collapses under its own weight.
Or robots. AI and robotics grow the economy so fast that the debt becomes manageable, and abundance makes the old fights over scarcity irrelevant.
Here's the part almost nobody sees.
For two centuries, capitalism has had a marketing problem. Its gains are real but slow and invisible. 2% growth a year doesn't feel like anything. Your life gets better over 30 years and you never connect it to the system that did it. Meanwhile, the left's promises feel immediate and concrete: a check, a subsidy, a benefit. That's why the left wins on promises even when it can't deliver them. Capitalism produces the wealth, socialism takes the credit.
Robots break that asymmetry.
When productivity doubles in a few years instead of a few decades, people will see it. Things get cheaper, services get better, opportunities appear, in real time. For the first time in history, people will connect capitalism and their rising standard of living directly, almost instantly. The causal chain becomes visible.
And that changes everything politically.
So there are two scenarios.
Scenario one: we stay in the current inertia. No breakthrough, or a breakthrough we regulate to death. The debt wins. Living standards stagnate, then fall. A frustrated electorate turns to whoever promises the most, and that pushes toward a hard collectivist left. But collectivism fails, as it always does. And when it fails, the most organized, most disciplined collectivist force left standing isn't the old left. It's radical Islamism. Bankruptcy, then communism, then something worse.
Scenario two: robots win. Abundance arrives, and it arrives visibly. The link between free enterprise and prosperity becomes obvious to everyone. And this is the key point: it becomes obvious to everyone, including the minorities the left was counting on. Because their long-term incentive is the same as everyone else's. A kid in the suburbs gains infinitely more from a booming, abundant West than from a bankrupt state handing out promises it can't keep. Abundance is the most powerful integration machine ever built.
That's the Western renaissance.
The West doesn't need to win the culture war by arguing. It needs to win it by delivering. And for the first time, it has the technology to deliver fast enough for people to notice.
The race isn't left vs right anymore. It's robots vs bankruptcy.
Makato.eth ≽ܫ≼ retweeted
The midterms won’t stop the AI buildout, but they will shift who gets financed.
Political risk for gigawatt GPU megadeals just went up. Oracle’s roughly 2.5 GW Project Jupiter has faced lawsuits and two state rejections of its gas pipeline. The roughly $18B of debt tied to it was reported trading at stressed levels.
The best risk-adjusted opportunity is now the Compute Middle Market: $25M to $500M deals.
Makato.eth ≽ܫ≼ retweeted
USDai provides GPU-backed loans to companies, denominated in $USDai. The protocol recently executed a $1 million buyback of its governance token, $CHIP, and introduced programmatic buybacks from revenue.
To better understand what the team is targeting and how they see the category evolving in a few years, we interviewed @0xZergs, the CEO and Co-Founder of @USDai_Official.
The USDai model depends on borrowing demand, as it's a lending protocol, and that demand is constantly evolving. The demand sits in the “compute middle market”, and “power is the binding constraint, so deployments are getting smaller: 250-megawatt sites are becoming 2- to 5-megawatt modular builds. That means more borrowers needing $5M to $100M, not a few needing billions.”
While the demand is there, what makes USDai special and separates them from traditional lenders is that they can do small deals economically.
This is exactly what onchain capital unlocks: USDai can “fund a standard loan quickly, hold it while it builds a payment history, and then sell it to the institutions that wouldn’t underwrite it from scratch”.
USDai calls this model “season-and-sell”, and they do this because crypto users “prioritise liquidity above all else, while credit funds are less duration-sensitive”. The team has completed their first season-and-sell: a $106 million GPU financing sold to Silver Point and Victory Park.
Through this model, USDai doesn’t really compete with traditional capital; instead, it “delivers finished loans”.
“Onchain is the warehouse. Banks, private credit funds and insurers are the permanent home.”
One of USDai's major announcements is its focus on token alignment, but we asked the team why they felt this is the right moment to introduce programmatic buybacks. They added, “Now is the moment because we’ve proven the loop. We originated a loan, seasoned it and sold it. That turns the protocol from a balance sheet into a volume/origination engine.”
Additionally, “as the protocol scales, the source of purchases shifts. Today it is sUSDai’s net interest margin. As USDai outstanding grows, CHIP holders can switch on revenue from USDai itself for the stablecoin as settlement, which is the North Star of our protocol”
We ended our questions by asking what USDai looks like in its final form, and they added that it will be “the settlement dollar for compute”.
If USDai finance the next 10k neoclouds, “they all end up holding the same dollar, and they will transact in it.”
Makato.eth ≽ܫ≼ retweeted
Everyone will own their own compute
BREAKING: Revolut moved ~2,000 engineers onto self-hosted GLM for coding and pushed Claude Code and Codex to the exception list.
Per David Abitbol, who leads AI ops there: 56 Nvidia B200s, a blended 30 cents per million tokens, roughly a tenth of what they paid Anthropic and OpenAI. Engineering lead time improved 70%.
Here's the part that matters: the gains showed up when tokens stopped being rationed. Engineers quit saving AI for the hard tickets and pointed it at everything.
Frontier models become the exception, open weights become the default. That's a pricing problem for every lab heading to IPO.
h/t @OliverMolander
Would you move your team off frontier APIs if the bill dropped 90%?
Makato.eth ≽ܫ≼ retweeted
GLX launched in October.
It started with the $98.1M Duos Edge AI season-and-sell, then a $106M facility for @CloudNexgen with Silver Point and Victory Park in the lender group.
Also in October:
- $1M of CHIP bought back
- Introduced the CHIP Hurdle Rate: when sUSDai yield falls below 7%, @Chip_foundation tops it up from the Yield Reserve
- CHIP governance went live.
Makato.eth ≽ܫ≼ retweeted
The CFTC continues to blaze the path of innovation - expanding the opportunity set for builders in the USA.
xitter.gq/ChairmanSelig/status/2…
Today, equity perps can begin trading for the first time on @CFTC registered exchanges.
This move reflects my commitment to ensuring that America’s markets remain the most innovative, liquid, and well-regulated in the world. Instead of being forced to turn to offshore, unregulated venues to access equity perpetual futures, Americans may now access equity perps on CFTC-regulated markets subject to robust safeguards.
I appreciate the continued partnership of @SECGov and @SECPaulSAtkins as we work to further harmonize our agencies' regulatory initiatives.
Makato.eth ≽ܫ≼ retweeted
The CHIP Foundation (@Chip_foundation) is now on X.
Follow for @USDai_Official's onchain yield, $CHIP and governance updates.