freemartian.VAR

Thanks to @koolkrypto223 for his comments, I do not see his post as FUD at all but rather constructive discourse. On single dealer I think we've been quite transparent about being a broker-like model rather than an exchange. This actually necessitates the use of a single dealer: unlike spot assets, derivatives in crypto cannot be transferred between different exchanges. If we were to route your order split across 5 exchanges, you would not want to see 5 different positions displayed in your account. You want a sophisticated counterparty to do the liquidity aggregation. We've achieved the benefits you describe: ✅ more listings than any other DEX ✅ best in class liquidity on any asset class even as a new entrant ✅ liquidity aggregation of the best primary venues; no need to open 20 different exchange accounts and keep switching between them On the moat Bringing all of TradFi onchain will take years, if not decades. Swaps, for example, are a fundamentally bilateral contract that cannot be replicated by DEXes, and I don't even think any are trying. This is the first time we've seen direct TradFi liquidity ported onchain with stable funding rates (the routing actually doesn't touch a single crypto venue). Getting the partnerships in place for this was not easy; I think we'll see the same type of consolidation into a few winners as we see with CEXes, DEXes, and TradFi brokerages. On price discovery Our opinionated take: a) You do not give a flying fuck as a user where price discovery is happening b) In fact most users should not touch exchanges directly at all Currently, no price discovery happens on any DEX, except in very niche scenarios. To say otherwise is massive cope. To build a venue for price discovery means catering to the very fastest HFTs: wake me up when DEXes have matching engine latency on the order of nanoseconds. Do a lead-lag analysis on prices between DEXes and CEXes, or DEXes vs CME, and it's obvious where price discovery originates. The only question is do you want a shallow clone of TradFi liquidity or direct access? As a user, you primarily care about best execution, and that's what we optimize for. Additionally, the reason why brokerages exist in TradFi is to add another layer of protection between the user and the exchange. ▶️ When 10/10 occurred and billions of dollars of ADL were forced upon users at other venues, Variational came out squeaky clean. ▶️ When Binance was hacked for billions, we immediately put out a statement that said that user funds are safe in self-custodied smart contracts and not moved to offchain hedging venues. OLP puts up its own capital for that. Variational Pro Variational Pro will be multi-dealer: you will be able to request a quote and dealers will bid for your flow. This increases the complexity of the product but will have massive unlocks for institutions, including allowing for subnetworks of markets where OLP is not involved. If two parties want to trade swaps or other derivatives peer-to-peer at infinite size we will facilitate the infrastructure for order matching, clearing, and margining for that. Reminder that the tech for this has already been built; it's the same underlying protocol that clears billions every day for Omni! I hope you will see our vision to bring TradFi onchain is a multi-year one and cannot be cleanly segmented into "oh it's just a DEX" or "oh it's just a CFD broker". It's so much more than that and we encourage everyone to follow our roadmap which we publicize on our docs page.