Business
Haseeb Qureshi, managing partner at Dragonfly Capital, and Dan Robinson, research partner at Paradigm, discuss the explosion in decentralized exchange activity on automated market makers from $1 billion earlier this year to more than $10 billion in August. Why trading in automated market makers has 8xed in a few months how automated market makers work, and how specific dexes can specialize for the assets being traded on them why traders would prefer to trade on a dex vs. a centralized exchange how incentivized pools have drawn traders and liquidity why trading on a dex seems can be more appealing than on a centralized exchange why trading on dexes now mirrors trading on Binance in 2017 how "DeFi is the hottest coolest place where people are making a lot of money" the difference between the metrics of liquidity, trading volume and total value locked for a dex why AMMs are capital inefficient what it means that fees paid on Uniswap are about half of those paid on Bitcoin what the purpose of liquidity mining is why Haseeb doesn't think that dexes have network effects and that once professional market makers come in the space, Uniswap will lose market share whether users will use DeFi directly through the dexes or through another interface why Dan thinks that DeFi is now comparable to financial investment in the 1970s whether or not yield aggregators like yEarn make it harder for AMMs to compete what happened with the CRV token launch initial dex offerings or initial DeFi offerings, like the UMA token launch whether, because of the high fees on Ethereum and the how long its transition to Ethereum 2.0 will take, DeFi activity could move to another blockchain such as Solana where DeFi will go over the next few years Thank you to our sponsor! Crypto.com: http://crypto.com Episode links: Haseeb Qureshi: https://twitter.com/hosseeb Dan Robinson: https://twitter.com/danrobinson Haseeb’s post on the rise of AMMs: https://medium.com/dragonfly-research/what-explains-the-rise-of-amms-7d008af1c399 Haseeb's post on how Uniswap could be un-bundled: https://medium.com/dragonfly-research/unbundling-uniswap-the-future-of-on-chain-market-making-1c7d6948d570 Dex volume: https://defiprime.com/dex-volume Trading volume on centralized exchanges: https://www.theblockcrypto.com/genesis/74539/july-by-the-numbers-a-look-at-crypto-exchange-volumes-open-interest-and-miner-revenue Incentivized pools: https://pools.fyi/#/?tag=incentivized Top dexes by trading volume: https://www.coingecko.com/en/dex Ethereum transaction fees: https://bitinfocharts.com/comparison/ethereum-transactionfees.html Uniswap website visits 15x in July: https://messari.io/article/uniswap-total-website-visits-grew-15x-in-july Website traffic to DeFi platforms explodes in July: https://www.theblockcrypto.com/post/74231/defi-platforms-web-traffic-july Fees paid to various crypto projects: https://cryptofees.info Curve reaches $1 billion in TVL: https://www.theblockcrypto.com/linked/75014/curve-becomes-third-defi-protocol-to-hit-1-billion-in-total-value-locked The Block on dex aggregators: https://www.theblockcrypto.com/genesis/69468/dex-aggregators-user-experience Delphi Digital on aggregators and why dexes will be like airlines: https://www.delphidigital.io/reports/dex-wars-and-aggregation-theory/ https://www.delphidigital.io/reports/are-amms-the-airlines-of-crypto/ https://twitter.com/ZeMariaMacedo/status/1298589417855168518?s=20 Mooniswap: https://www.theblockcrypto.com/linked/74454/1inch-launches-automated-market-maker-mooniswap Yield aggregators: https://www.theblockcrypto.com/genesis/75189/defis-yield-aggregator-dao-yearn-finance How DeFi is affecting OTC desks: https://www.theblockcrypto.com/daily/75870/defi-otc-desks-lunch Serum on Solana: https://www.theblockcrypto.com/daily/72924/ftx-dex-serum-solana-blockchain CRV launch: https://www.theblockcrypto.com/genesis/74921/the-story-of-the-botched-crv-launch UMA token launch: https://www.theblockcrypto.com/genesis/63611/uma-token-sale-retrospective Serum on Solana: https://medium.com/solana-labs/ftx-chooses-solana-for-serum-a-high-speed-non-custodial-decentralized-derivatives-exchange-c346a27c1f2b https://www.coindesk.com/uniswap-ftx-perpetual-futures