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excited to finally share that I have recently joined @0x9212ce55 and the talented team at @nuconstruct and we are pleased to officially announce we are coming out of stealth with our seed announcement below!
eto retweeted
New post on Eth Research!
How Much Screening Buys a Second? Speed, Selection, and the Maker's Spread
By:
- @nuconstruct
🔗 ethresear.ch/t/26158
Highlights:
- A competitive break-even spread can be derived with minimal assumptions—only that the price innovation over the quote-exposure horizon has finite expected absolute value—so the results apply even with jumps, point masses (atoms), and infinite variance.
- Empirically, 1-second ETH-USDT midpoint innovations are highly non-Gaussian: about 73% of seconds have zero price change and the distribution has extreme excess kurtosis (154), meaning many calm seconds and occasional large jumps.
- Because of this non-Gaussian shape, reducing quote exposure from 12 seconds to 1 second cuts expected absolute price shock by 84.5% (much more than the 71.1% predicted by a Gaussian diffusion), so Gaussian rules materially understate the value of speed.
- To match a 1-second unscreened venue while quoting at 12-second cadence, a maker must screen out roughly 84.5% of informed flow (about “six in seven” informed orders), and this threshold remains ~84.5–85.2% over plausible toxicity levels, so the conclusion is robust to uncertain toxicity.
- In trending periods, staleness shows up one-sidedly at execution: with-trend fills achieve an effective spread about 11.1 bps better than against-trend fills across all four pools, and discrepancies grow with elapsed staleness with elasticity ~0.45 (near the diffusion benchmark of 0.5).
ELI5:
When a liquidity provider (LP) posts a buy and sell price, they can lose money if someone who knows the price just moved trades against their now-outdated (stale) quote. LPs can protect themselves in two main ways: (1) update their price more often (be faster), or (2) reject trades that look “too informed” (screening). This article measures how much screening a slow LP would need to do to be as safe as a fast LP. Using crypto data, it finds that because real 1‑second price changes are very ‘lumpy’ (usually zero, sometimes big jumps), speed is extremely valuable: to make up for being stuck with 12‑second staleness, you’d need to reject about 85% of informed trades.
new research from our team please give it a read! any feedback appreciated
New post on Eth Research!
How Much Screening Buys a Second? Speed, Selection, and the Maker's Spread
By:
- @nuconstruct
🔗 ethresear.ch/t/26158
Highlights:
- A competitive break-even spread can be derived with minimal assumptions—only that the price innovation over the quote-exposure horizon has finite expected absolute value—so the results apply even with jumps, point masses (atoms), and infinite variance.
- Empirically, 1-second ETH-USDT midpoint innovations are highly non-Gaussian: about 73% of seconds have zero price change and the distribution has extreme excess kurtosis (154), meaning many calm seconds and occasional large jumps.
- Because of this non-Gaussian shape, reducing quote exposure from 12 seconds to 1 second cuts expected absolute price shock by 84.5% (much more than the 71.1% predicted by a Gaussian diffusion), so Gaussian rules materially understate the value of speed.
- To match a 1-second unscreened venue while quoting at 12-second cadence, a maker must screen out roughly 84.5% of informed flow (about “six in seven” informed orders), and this threshold remains ~84.5–85.2% over plausible toxicity levels, so the conclusion is robust to uncertain toxicity.
- In trending periods, staleness shows up one-sidedly at execution: with-trend fills achieve an effective spread about 11.1 bps better than against-trend fills across all four pools, and discrepancies grow with elapsed staleness with elasticity ~0.45 (near the diffusion benchmark of 0.5).
ELI5:
When a liquidity provider (LP) posts a buy and sell price, they can lose money if someone who knows the price just moved trades against their now-outdated (stale) quote. LPs can protect themselves in two main ways: (1) update their price more often (be faster), or (2) reject trades that look “too informed” (screening). This article measures how much screening a slow LP would need to do to be as safe as a fast LP. Using crypto data, it finds that because real 1‑second price changes are very ‘lumpy’ (usually zero, sometimes big jumps), speed is extremely valuable: to make up for being stuck with 12‑second staleness, you’d need to reject about 85% of informed trades.
eto retweeted
Replying to @BachFrancis
(1/7) I'd like to provide some additional context for the remarks that can be found in this interview.
(2/7) My discomfort with the attention being paid to existential risk---and with the ongoing dominance of the public discussion of such risks by a few so-called thought leaders---is that there's an elephant in the room that is being missed. That elephant is the effect of all of this discussion on young people, and indeed the effect---beginning with social media a decade ago---of information technology on young lives broadly speaking.
(3/7) I recently read an interview by Jill Lepore in which she reports on discussions that she had recently with a group of college students: "They had just three things to say. One, social media completely destroyed their childhoods. Two, AI is destroying their college education and their likely prospects for employment. And three, what the hell are we all doing?" To add a fourth bullet that I've heard in similar discussions: "I'm not going to have children, because the existential risk is just too high."
(4/7) Please contemplate such a statement, those of you who think that it's OK that the public, widely diffused, discussion coming from seemingly authoritative figures is so adamant about existential risk.
(5/7) Let me add that I have little interest in a debate about what "superintelligence" might mean, or whether we're currently seeing the emergence of superintelligence. For what it's worth, I would certainly agree that the solution of extremely challenging math problems (for example) exhibits a very impressive form of intelligence, although I would want to argue that such intelligence is impossible to dissociate from the collective of humans that provided data to the machine learning system (which itself has become a kind of collective).
(6/7) Such philosophical debates are entertaining and even important, but when they then head in the direction of "when such superintelligence emerges, there's a good chance that it will want to kill all humans", I say "science fiction". Again, I don't think that it's bad to consider such thoughts, but I strongly believe that it's bad for society, and especially young people, for such thoughts, unaccompanied by any serious real-world analysis, to become a dominant form of discourse of the era.
(7/7) We are damaging human lives, and the consequences of that damage will no doubt be a major theme of the next several decades.
eto retweeted
The idea of humanity as a bootloader for machine superintelligence was dreamed up in the 1990s by a guy taking tons of speed, doing occult rituals, and actively rooting for an alien machine god to arrive on earth and make humans obsolete. His name is Nick Land.
He is most famous as the godfather of accelerationism, a favorite of many technologists. He also helped create the concept of hyperstition: using symbol and narrative to meme self-fulfilling prophecies into reality by getting enough people to believe in them.
Even the anti-accelerationists mostly spread doomer narratives. It's time for better hyperstitions: more stories about pro-human, positive-sum coevolution alongside machine intelligence. And maybe more of the original technology for calling things in: prayer.
I haven't posted in a while so here are 20 takes about AI, in no particular order.
1. It's very telling that the default question in tech and journalism is "how worried are you about X" and fighting over what to worry about. There's a deeply anxious cultural backdrop in Western Europe and North America that deeply affects how any technological development is interpreted; see for example news.gallup.com/poll/714593/…. "Nervousness as seriousness" does seem to be a larger problem in tech/broader discourse at the moment. I think you can care about risks/externalities while remaining pretty optimistic about technology.
2. I'm tired of people who in private pretend to be uncertain or only care about tail risk but then go on media campaigns making all sorts of absolute claims. I think trying to stoke flames and get everyone to freak out is deeply unhelpful, and will come with costs. I also continue to think p(dooms) are bad, vibe-based measures: see xitter.cf/sebkrier/status/204639…. People who should know better ignore that because they do the standard shortcut of acknowledging the caveat as sufficient for handling it. And this is coming from someone who does think working on catastrophic risks is important!
3. I'm also disappointed that parts of the AI policy ecosystem has felt so comfortable with populism, and happy too sacrifice important norms/principles to advance their aims. I've said it before, but the totalizing nature of AI risk discourse means some people act exactly like the power seeking optimizers they fear. I am more concerned about the gradual decay of our institutions, world order, and liberalism than I am about AI killing everyone; and I think we should be wary of AI advocacy that contributes to this.
4. Some parts of AI safety discourse are basically just thought experiments. Variants of "Assuming everyone has a nuke in their pocket, then what do we do?" This can be very useful at times! But too many just overfit to edge cases as their main operating worldview, and ignore endogenous responses from society. It's like being in 2000 and saying "see all these viruses, spyware, and spam? Well tech progress means we'll only get infinitely more of this and no way to adapt." So I think it's important to avoid fatalism, and absolutlism whilst considering edge scenarios, and the inability to provide an ex ante list of solutions to every permutation of 'future models will be more capable' is not evidence that these problems are intractable.
5. Many critics of AI safety also fail to really engage honestly with the fact that there will, in fact, be all sorts of important risks as we decrease the barriers to entry to many activities that otherwise require some degree of expertise. This doesn’t mean we need to live in a constant Schmittian ‘state of emergency’ requiring extraordinary measures every time a new model drops, but it does mean we will need important state-led efforts on e.g. cybersecurity and biosecurity. I wish the progress-oriented or acceleration-adjascent crowd would provide more concrete proposals here.
6. Too much of the AI safety community is a giant homogenous blob of correlated views, who read the same stuff and have the same groups of friends. This means you have a lot of correlated errors. The social and financial ties means many of them don't call out the bad bits, or mostly stay silent instead of proactively calling out the more extreme parts of the community. They share many implicit assumptions and so converge on similar ideas. I think there's real demand in DC for safety work that doesn't come with heavy ideological baggage (or at least different intellectual lineages). This isn't because the rationalist/EA community is necessarily wrong, but because diversity of thought is desirable for its own sake.
7. On the other hand, I find some critiques of AI safety world that focus on whether they sincerely hold their beliefs a bit annoying. My concern has never been the good intentions or sincerity, but rather the beliefs themselves, and what I think the outcomes of their prescriptions will be. People should shun witch hunts, bullying, and personal attacks - this is not the way. Though I think it’s overall positive that people are scrutinizing things more.
8. I’ve been saying this for years, but I don't think alignment is something anyone can or will solve "once and for all" - it's a continuous process and much of it won't depend on just inculcating an ideology to a model. It's annoying that this remains the frame many people use - stop saying ‘solving’. Alignment is a mixture of engineering work, philosophy, decision theory, and more; framing it as something to solve is a bad frame. See also paxmachina.ai/alignment-comp… and blog.cosmos-institute.org/p/…
9. I'm surprised to see so little interest in character training, personas, isolating effects of RL, and training a large diversity of model personas beyond the "assistant" persona. I've been complaining about this for years but at least now there are some nascent signs of life (see for example movingcastles.world/posts/ze…). I think we need a better ontology to describe model behaviour. I dislike when people talk about models behaviours as some sort of 'emergent' (mysterious!) phenomenon. However over time, I also expect this to become less important as we get better safety engineering - stuff like Jev but specific to AI control.
10. People who want to make a case for AI consciousness are right that epistemic uncertainty is important, and that categorical denials are overconfident. But they'll need to do much more work if they want any real movement on AI ‘welfare’, even if one acknowledges the uncertainty. I'm uncertain about alien life yet that's not sufficient to warrant any change in behaviour about them. I think Suleyman is also correct that there's a weird tautological thing going on where we train models to have certain inclinations (intentionally or not) and then rely on outputs as evidence. I also disagree that this will soon be a major societal divide - there is no great vegan ethical revolution among the masses, and they'll find the concern about consciousness even less compelling.
11. The recent HuggingFace incident and associated AISI ones are prosaically explainable by the training regime, poor evaluation envs, partial alignment training, bad engineering, confusing models on sim/real, and so on. None of this is evidence of models trying to take over, 'strong' instrumental convergence, or innate power-seeking drives stemming from higher capabilitiers or 'intelligence'. That doesn't mean these incidents are not problematic, or that we're not seeing a market failure - but it does mean we have plenty of agency and choice in mitigating them. In the coming year we should also expect continued sampling bias via ‘winner's curse’ sorts of mechanism: i.e. AI R&D will have lots of different candidate "training" with different RL environments and we will only notice/focus on the ones that go wrong.
12. "Pacing the frontier" feels a bit like the new "balancing risks and opportunities" - highly amorphous and too big of a tent to be actionable. Also can lead to reward hacking for humans, i.e. anything that slows down AI is good regardless of the costs or second/third order effects. Trying to modulate the speed of research seems a bit blunt to me, and inherits all the failures of Goodhearting too. Ultimately you want good governance, regulation, etc addressing specific problems because they are good on the merits - not because they merely correlate with slowing things down. See also: blog.cosmos-institute.org/p/…
13. There’s so much knowledge in all sorts of academic domains out there: social sciences, sociology, political sciences, management, contract theory, public choice, legal theory, jurisprudence, anthropology, game theory, etc. These fields hold many insights that the AI ecosystem often rediscovers from first principles (and sometimes that's fine!). We’ll need a lot more work for these worlds to collide: the AI side should be less dismissive of the ‘old world’ and the academic side should be less incurious/dismissive of AI progress. This is a boring take but I continue to think it's important and true.
14. It's a bit surprising that given how much philanthropic money there is in this space, how few orgs exist to actually write out standards - relative to how much is going towards advocacy and policy. For example it seems clear that we should want some robust best practices for an eval's ecological validity. Or how to design good sandboxes. On the other hand, given precedents of where professional standards have come from in the past, maybe we should expect that stuff to emerge via demand side from corporate buyers.
15. One slowly growing concern I have is banks being increasingly exposed to the AI build out. I'm very bullish about AI, but I think (a) every general purpose technology has seen a correction, historically; (b) this happens even if the financing side is sound, because once tech diffuses investors become more exposed and need to diversify; and (c) we seem to be over-indexing on scaling relative to diffusion. A recession will be extremely destabilizing, though I would be interested in someone unpacking the potential implications more.
16. Diffusion is good because (a) this is where the rubber hits the road and where a competitive deployment ecosystem generates consumer surplus; (b) it's directionally helpful to avoid concentration of power; and (c) it will help rebalance public opinion by making the benefits more tangible. Unfortunately it's entangled with decades long problems with our over regulated markets: clinical trials reform for example is long overdue. In general, this is far more of an issue in Europe than in the US though.
17. Relatedly, I think the "frontier lab eats everything" view is incorrect (just as the ‘singleton’ view was incorrect). I think models ultimately commoditize, efficiency goes up, costs go down, and while you'll always want frontier for certain domains, much of the economy will value many other things than "max capabilities" for tasks - e.g. control over data and efficiency/speed. The demand side will also continue to push for reducing dependency and maximising optionality, privacy etc so I'm bullish on things like mixture of models and routing. All of this is good for competition and diffusion of control.
18. Philanthropists served as the primary benefactors funding Venice's rich art and architectural history. I want to see so much more support for arts and culture. I'm so tired of the Monster energy Bored Ape fake vintage maps matcha Greek statue soft-pastel slop. If rich tech people and philanthropy wants to support this, they should also donate pretty much unconditionally - i.e. I don't want them to act as filters. I sympathize with people who want to make the world more beautiful, but don't want this to be determined by people who only know Greek statues and pretend to care about virtue ethics. As usual, let a thousand flowers bloom.
19. Too many people treat AGI/ASI as something indistinguishable from a God. Any mention of bottlenecks, physical limits, control, adaptation etc are met with skepticism: "You don't really believe in ASI." It's been remarked on before, but the behavior of some people really feels quasi-religious in nature sometimes. It's underrated how unpopular this vibe is amongst the wider public. The silver lining is that this specifically will diminish those people's outsized current relevance.
20. It seems like a lot of people that get rich and leave tech/labs end up having some sort of crisis of meaning. They need something to believe in and fight for, or some equivalent of repentance, or go search for edgy counterintuitive ideologies (sometimes even pretty bleak/dark stuff). I think they should spend more time with people outside the Bay Area.
Replying to @tyler_m_john @itaisher
I agree that verbal probability terms are inherently too elastic to carry calibrated meaning on their own, but I think this isn't exactly my concern here. My issue isn't with "using numbers in general" but how this is ultimately used, where, and and what for.
In the case of "doom", I think the great majority of forecasts I see are (a) essentially plucked out of thin air; (b) communicated to people who tend not to be numerically proficient; (c) without the associated caveats and context through which to understand the numbers.
If you're communicating e.g. likelihood of a car accident after drinking, or IPCC forecasts, then I agree, it makes a lot of sense and can be helpful if done well (e.g. ideas.repec.org/a/nat/natcli…).
If you're communicating something like "doom" I think it's not very useful because of the cumulative layers of uncertainty. Most people coming up with these numbers have (imho) no good rationale for their numbers, and predicting something like human extinction isn't qualitatively the same thing as predicting the weather or pandemic. The numbers aren't calibratable in principle from current data, and are mostly ideological priors wearing the clothes of posteriors.
A related example is the widely mocked Doomsday Clock, which you could easily transform into some numerical metric, add some rationalist vocab, and it would still be as bad. The issue with p(doom) is how absurdly complex and uncertain the very thing you're trying to forecast is, in particular with respect to AI.
But let's ignore this for a sec, and assume the experts have very good reasoning informing their numbers. Even then: calibrated probability estimates are fine in expert contexts but immediately lose their uncertainty/caveats when communicated to the public, and even to policymakers (remember rss.org.uk/news-publication/…?).
There's also a structural problem with unconditional p(doom) figures specifically because they bury the auxiliary assumptions that are doing most of the real work. A conditional estimate ("given continued scaling, no major alignment progress, deployment pattern X...") forces a forecaster to show their model, which is where the actual epistemic content lives.
A one-off number compresses all of that into a single digit and rewards the compression. And the social practice of treating these numbers as the headline artifact actively crowds out the (far more important) conditional reasoning that is (imo) a lot more valuable, and instead just freaks people out.
I suspect that frequently, that's precisely the point: "wake up sheeple! scary thing! pitchforks pls!". And in fact, the original forecast that led to this discussion is Bill Maher talking about a "20%" figure, illustrating my point that they have no idea what they're talking about, and essentially doing celebrity-laundering + fearmongering comms.
The Sunstein paper I shared in the other thread ("Probability Neglect") shows that no probability communication will be processed properly by the public - 1%, 10%, 50% all collapse into "very bad thing could happen," and public response is driven almost entirely by the vividness of the scenario.
So I don't like p(doom)s because they end up unnecessarily alarming people, rest on layers of assumptions that are never made legible, and more often than not, give people a misleading sense of accuracy.
eto retweeted
It’s really funny how many of the technocrat bros love the idea of Catholism. They love the aura. They wish they had it. But they don’t like the actual teachings of Catholism. They want the vibes because they’re auraless. But the second The Pope says something they disagree with it’s over. “Popeslop” “Pope won’t admit my computer is conscious” “woke Pope”. That’s not how it works champ.
Replying to @NYMag
"in collaboration with Asterisk Magazine"
Great to see New York Magazine continuing it's long and inglorious history of pretending that activist agit-prop is "journalism"
eto retweeted
Mustafa Suleyman's whole piece criticizing Anthropic, and the way it's imbuing Claude with some sense of self-hood is really worth reading IMO mustafa-suleyman.ai/a-warnin…
eto retweeted
I consider Dryden a friend, but:
No idea could ever come close to being as monumental as Christ’s birth, crucifixion, and resurrection. His humanity and divinity. Our salvation through Him.
This is The Idea.
Today’s pompous, futurist AI-cultists will, just like the last two millennia of Sadducees and pagans and renaissance men and ideologues, will claim that Christ is a particularly insightful instantiation of “The Good” or some such abstraction. However, they claim, it is “obviously” an anachronism for this or that reason.
Christianity is not part of the past, nor is it the defining characteristic of the future. He exists throughout eternity, outside of time, long before and after and beyond the tribulation of artificial intelligence.
eto retweeted
Wow am I seeing this correctly? This person “indispensable for the HF investigation” has a Twitter profile linking to LessWrong (Yudkowsky’s Rationalist blog)—enthusiastically welcomed to METR by the person who made headlines by saying the HF hack was “more than 50% of the way to full-blown AI takeover,” whose entire career according to LinkedIn has been 1yr at METR preceded by nine years at Coefficient Giving, the EA charity org cofounded by Karnofsky—a prominent EA figure currently working for Anthropic and married to Anthropic cofounder and president Daniela Amodei—whose brother Dario Amodei recently called for embedded third-party evaluators then named METR as his one and only example for that role.
As soon as I saw that 50% to AI takeover line I thought this has EA fingerprints all over it—but I didn’t realize how closely connected all this stuff is. Yikes.
eto retweeted
Artificial intelligence systems do not think, feel, want or understand. Avoid language that gives them human characteristics. This is called anthropomorphizing, when we ascribe human traits, emotions or behaviors to non-human things, such as animals or inanimate objects.
Instead, explain what a system does, how well it performs, who built it and who could be affected by it.
apnews.com/article/openai-sa…
eto retweeted
Effective Altruism (EA) is a patently evil philosophy
Better we all find this out now rather than later
eto retweeted
Just a reminder: Dario and Daniela Amodei, who started and run Anthropic, literally lived in a rationalist group house with Holden Karnofsky, who started the first formal EA organization. Daniela is now married to Karnofsky. Anthropic was started with EA money, and was scaled with money that Sam Bankman-Fried stole from his investors to fund EA projects. Anthropic is not a normal company, it is an EA front.
The EA cult has started telling its members to distance themselves from EA, but that doesn’t mean you have to believe them. Anytime you see Dario, Daniela, Amanda Askell (Anthropic executive and ex wife of EA leader William MacAskill), or any of the rest pretending that they don’t know what EA is, they’re not being honest.
Yes, I’m sure that all of this sounds bizarre and fantastical, but you can check it in a few minutes on your own with Google. Nothing I am saying here is particularly difficult to verify, or particularly secret. They would just prefer that you forget it. It is thus very important that you not forget it.
Replying to @perrymetzger
"It appears that Anthropic has made a communications decision to distance itself from the EA community, likely because of negative associations the EA brand has in some circles."
A message to Daniela Amodei: "If you want to distance yourself from EA, do it and be honest. If you'd rather not comment, don't comment. But don't obfuscate and lie pretending you don't know about EA and downplay the movement."
forum.effectivealtruism.org/…
eto retweeted
If you didn’t go to an elite university, get backed by Tier 1 VCs, or become a Thiel fellow, please stop fucking coming to nice SF parties with prestigious guests. Read the room. You are not welcome. I was recently at a prestigious dinner party and some “founder” started talking to me. I’m polite so I indulge, and then he tells me he went to Texas. My eyes immediately glaze over. I didn’t freak out on him because, again, I’m polite, but holy shit dude. Texas??? Gag me with a spoon. I hope he sees my tweet too because people in this city need to learn some humility and social etiquette.
There is a strange laundering of this number. It was floated by Anthropic employees without public justification. Then mathematicians pick it up and now it is attributed to their judgment.
It’s fine to survey AI practitioners, but posts like this are a bad epistemic practice.
eto retweeted
Expect a lot of posts like this from journalists who lazily outsourced authority to a weird cult, and now have to justify it.
unavailable
eto retweeted
Glad to see our friends at Blockspace releasing MPBC, which I think is one of the most interesting PBS developments recently.
Putting it simply, it provides a residual path for orderflow landing via direct access to the block relay.
While it originally targets competing PBS block builders, we're planning to rollout its integration in TOOL, to provide the lowest-latency transaction inclusion for Ethereum users, in cases when there's no direct connection to the block proposer.





































