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.