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Permissionless and oracleless leverage on long-tail assets. | @metaDAOproject Futarchy | backed by @colosseum | https://t.co/GxTfMP19AC
Nov 26 7 tweets 2 min read
1/🧵The Solana ecosystem continues to focus on speed and scalability, generating $115B+ in 30d DEX volume.

Yet efficient lending markets don't exist for majority of that volume.

LPs, traders and builders still face the same issues DeFi promised to fix ↓ 2/ Start with LPs:

LPs now supply billions across AMMs like Raydium, Orca, Meteora, Phoenix.

Yet 70% of that capital sits still earning only swap fees, so they take the risk of a lending market participant while being in a passive AMM position.

Impermanent loss compounds the issue as even high-volume pools often see negative LP outcomes over time.