1/ Today DFlow is officially on Solana mainnet, and we’re excited to introduce the first DFlow-powered app: @TsunamiExchange!

2/ Head here for a more in-depth overview of Tsunami or read on to find out more about DFlow.

3/ So what's DFlow, again?

DFlow is the protocol standard for open, provably-fair, and decentralized payment-for-order-flow (PFOF) in crypto. Open and fair PFOF brings significant improvements that are essential for well-functioning digital markets.
4/ As a reminder, PFOF refers to market makers purchasing retail orders from brokerage firms and filling their orders. What DFlow brings to crypto is a step away from the opaque system seen in traditional equities.
5/ Open and fair PFOF markets mean execution quality, price, and size improvements are measurable and verifiable by anyone.
6/ What does this all mean for retail traders and crypto-native brokerages like wallets and DeFi apps?

First, let's take a look at some common pain points retail traders experience.
7/ 🔼 High swapping fees. Popular swapping tools typically charge 20 to 85 basis points. Some hide this through clever UX and marketing, but end-users always end up paying them.
8/ 🏃‍♀️ MEV and front-running. MEV attacks are frequent on most popular swappers and are effectively hidden costs. These malicious actors take advantage of retail who aren't familiar with these concepts (e.g. slippage).
9/ 🥷 Poor and opaque price execution. Price slippage is another form of hidden cost carried by retail traders.
10/ DFlow is reinventing the retail trading experience for simplicity and savings 😎

🆓 Users pay 0 basis points on DFlow-powered apps
❌ Order encryption prevents front-running
💎 Guaranteed best-execution from institutional market makers
11/ On the other hand, wallets and crypto swapping apps can monetize their retail volume by routing to DFlow and receiving market maker rebates 🤑
12/ Now, how do market makers purchase order flow on DFlow?

Market makers, in fact, purchase the right to fill future order flow in parallel, sequential auctions held on-chain by DFlow.
13/ The right is granted to the owner of an order flow contract, a DeFi primitive native to DFlow that represents a batch of future order flow of a specific grade. Since orders don't exist yet, market makers can't delve into (or exploit) order details 😮‍💨
14/ In this process, market makers price order flow based on contract specs (e.g. token pairs, notional sizes) and the best-executing market maker purchases the contract at an auction-discovered price 🔍
15/ DFlow is designed to programmatically require market makers to fill within a governable threshold of the best price, as determined by a decentralized price oracle (@PythNetwork).
16/ DFlow is excited to contribute to the Solana ecosystem and shape, for the better, the way retail volume transacts on-chain.
17/ Okay, enough with the theory. Head over to @TsunamiExchange to see DFlow in practice 🤯

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More from @DFlowProtocol

Mar 3
We're excited to announce DFlow, the first order flow markets protocol on @Solana, built to replace legacy payment for order flow systems with new market mechanisms that provably safeguard retail traders, and enable new DeFi market making strategies

🧵 2/6: TradFi payment for order flow relies on the enforcement of regulation by governing agencies. Through DFlow, DeFi payment for order flow has trustless guarantees that trades are done at best prices with minimal latency
🧵 3/6: On the other side of the trade, market makers get access to high-resolution retail order flow at free-market rates. Order flow is purchased at fair market rates via batch auctions by market makers
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