Is Uniswap the best model for decentralized exchanges?
Some notes from my discussion with @hosseeb & @GandalfTheBr0wn π
Some notes from my discussion with @hosseeb & @GandalfTheBr0wn π
1/ There's a few dozen decentralized exchanges today.
Most of them can be grouped by how makers and takers interact. See below:
Most of them can be grouped by how makers and takers interact. See below:
2/ In @Uniswap, liquidity providers and market makers are one and the same (less so with vaults on top of v3).
Those who provide capital are basically market makers who employ the same strategy: the simple but effective "x*y=k"
Those who provide capital are basically market makers who employ the same strategy: the simple but effective "x*y=k"
3/ But what if you're more sophisticated than a passive LP?
That's where @hashflownetwork comes in.
Hashflow is building a RFQ system where market makers can offer quotes in whatever manner they like.
That's where @hashflownetwork comes in.
Hashflow is building a RFQ system where market makers can offer quotes in whatever manner they like.
4/ This comes with two key benefits:
a) Gas savings: Price computation happens offchain, so gas is significantly cheaper for users!
b) MEV resilient: Because quotes are fed directly to takers who place a request, sandwich attacks are avoided.
a) Gas savings: Price computation happens offchain, so gas is significantly cheaper for users!
b) MEV resilient: Because quotes are fed directly to takers who place a request, sandwich attacks are avoided.
5/ "But wait, isn't this what @0xProject worked on with its v4 RFQ?"
The difference lies in the fact that market makers don't actually need to hold inventory in Hashflow.
Instead, anyone can deposit their capital to any market maker they want.
The difference lies in the fact that market makers don't actually need to hold inventory in Hashflow.
Instead, anyone can deposit their capital to any market maker they want.
6/ For instance, I can offer my ETH and USDT to Alameda, who then uses it to market make, then we split the fee!
Overtime, it will become easier for people to have others put their capital to work, all thanks to DeFi.
Overtime, it will become easier for people to have others put their capital to work, all thanks to DeFi.
7/ Some examples:
> I can have others trade for me on @dHedgeOrg
> Have the @goldfinch_fi team lend my capital out to markets I can't reach
> Have pro MMs earn fees for me on @hashflownetwork
> I can have others trade for me on @dHedgeOrg
> Have the @goldfinch_fi team lend my capital out to markets I can't reach
> Have pro MMs earn fees for me on @hashflownetwork
7/ So does that mean RFQs will replace AMMs? π€¨
5 years from now, will dex's be a winner takes all space?
@hosseeb and @GandalfTheBr0wn joins me in discussing on this week's @theBlockcrunch:
apple.co/3k9xhcU
spoti.fi/2UzPm9b
5 years from now, will dex's be a winner takes all space?
@hosseeb and @GandalfTheBr0wn joins me in discussing on this week's @theBlockcrunch:
apple.co/3k9xhcU
spoti.fi/2UzPm9b
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