Understanding the Economics of Market Makers in Cryptocurrency

In this episode of Validated, host Austin talks with Chaofan Shou about building Solayer, high-performance side chain for Solana. Chaofan describes the specifics of Solayer's hybrid model, which sits between a traditional Layer 1 and Layer 2, offering faster execution environments for market makers and reducing high priority fees. They get into its technical architecture, including the use of specialized hardware like FPGA and SDN for optimized transaction processing and state management. The conversation also touches on their plans for ecosystem development, particularly within the DeFi and gaming sectors, and addresses the balance between scalability and decentralization.