Max_S
0 Following
9 Followers
12 Liked
1 Shared
Posts
See original
PINNED
A good DEX will not allow retail investors to directly become the liquidity source for institutional investors
Introduction: The underlying logic of liquidity game
In the financial market, retail investors are often seen as the "buyers" of institutional investors when they exit liquidity - when institutions need to sell off on a large scale, retail investors often passively take over assets with falling prices. This asymmetry is further amplified in the field of cryptocurrency, and the market maker mechanism and dark pool trading of centralized exchanges (CEX) have exacerbated this information gap. However, with the evolution of decentralized exchanges (DEX), new order book DEXs represented by dYdX and Antarctic are reconstructing the distribution of liquidity power through mechanism innovation. This article will take technical architecture, incentive mechanism and governance model as the entry point to analyze how excellent DEXs can achieve physical isolation between retail and institutional liquidity.
In the financial market, retail investors are often seen as the "buyers" of institutional investors when they exit liquidity - when institutions need to sell off on a large scale, retail investors often passively take over assets with falling prices. This asymmetry is further amplified in the field of cryptocurrency, and the market maker mechanism and dark pool trading of centralized exchanges (CEX) have exacerbated this information gap. However, with the evolution of decentralized exchanges (DEX), new order book DEXs represented by dYdX and Antarctic are reconstructing the distribution of liquidity power through mechanism innovation. This article will take technical architecture, incentive mechanism and governance model as the entry point to analyze how excellent DEXs can achieve physical isolation between retail and institutional liquidity.
See original
Clarifying the Three Major Concepts of DeFAI, DeSci, and DePIN in One Article
'Concepts emerge in bull markets'. With last November's bull market kicking off and BTC breaking 100,000, the rapid advancement of technology has led to a plethora of AI + Web3 concepts that leave us dazzled. The speed of iteration of related concepts and the breadth of ideas have made sleep gradually a luxury. Recently, my good friend Renée released a video about the influx of hot money into DeSci: Is it the beginning of a revolution and breaking the mold, or just another fleeting trend? This motivated me to explain DePIN, DeSci, and DeFAI in the simplest possible language.
First, let me introduce the big brother 'DePIN'.
The big brother's full name is 'Decentralized Physical Infrastructure Networks', representing decentralized physical infrastructure networks. As early as 2021, IoTeX proposed the concept of MachineFi, which combines 'Machine' and 'DeFi' to represent the financialization of machines and the data they generate. After continuous development and evolution of the ecosystem, the concept of DePIN was ultimately proposed by Messari, representing a way to establish and maintain infrastructure in the real world.
First, let me introduce the big brother 'DePIN'.
The big brother's full name is 'Decentralized Physical Infrastructure Networks', representing decentralized physical infrastructure networks. As early as 2021, IoTeX proposed the concept of MachineFi, which combines 'Machine' and 'DeFi' to represent the financialization of machines and the data they generate. After continuous development and evolution of the ecosystem, the concept of DePIN was ultimately proposed by Messari, representing a way to establish and maintain infrastructure in the real world.
Login to explore more contents