cs361
836 posts

cs361
@0xcs361
I write threads from time to time

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Bullish: On-chain Perps I started "trading" cryptocurrencies in late 2017 right before the first bull market. Back then, my investment framework was following big Twitter accounts and buying into every token on my timeline (No wonder I gave back all gains in the following months)... Back in those days, there wasn't a better place to trade than Binance. Although the exchange was relatively new, it had all of the hyped coins, good enough UX and (presumably) a decent affiliate system. Over the course of the 2017/18 bull, Binance grew tremendously. Fast forward to 2020. The DeFi sector and ERC-20 changed the users interacted with crypto assets. DeFi Summer. AMMs, Lending protocols, liquidity mining, food farms, memecoins... @Uniswap was the gateway into this new hot sector. It allowed protocols to create on-chain markets with little liquidity. Users flooded on-chain to bid up tokens. CEXs couldn't compete. Over the course of the 2020/21 bull, Uniswap grew tremendously. Fast forward to today. After a 1.5-year bear, BTC made a new yearly high. For the first time in a while, the timeline seems bullish. CEX and on-chain volumes are spiking. Of course, it's too early to say what this cycle's kingmaker trades will be. What we can predict, however, is that the exchange that lists these assets the quickest will garner a ton of attention and capital. There will be an exchange that grew like Binance in 2017 and like Uniswap in 2020. How is it possible to list an asset before an AMM? After all, they are the birthplace of tokens. The answer is pre-launch Perps. Speculation markets on unlaunched tokens. Just look at the impact $TIA has had on @HyperliquidX and @aevoxyz. But decentralized perp exchanges can offer a lot more: 1. On-chain markets can compete with CEXs! 2. Index perps allow for exotic assets like $FRIEND 3. DeFi composability: vaults + protocols built on top 4. Decentralization wins* *a growing on-chain exchange sector will create competition and ultimately leave us with a fully decentralized implementation of an efficient exchange This was a slightly different approach to my usual threads. Just started writing out my thoughts. Of course, this leads to simplifications but you understand the gist of my thesis. Hope you enjoyed this.



Irrational exuberance sparked a wave of algorithmic, unbacked stablecoin experimentation. This led us down a dark path into the UST debacle and regulatory troubles. A smaller competitor had the potential to change the markets fate. 🟩Beanstalk: Past, Present & Future



















