Speaker 3
For some reason, like that's been that specific mechanism has been what's been like, I've seen some amount of exploration, actually even that not that much, but let's say claim exploration. It's actually shockingly difficult to understand. But kind of on the deck side, there really hasn't been that much more. I haven't really seen that much personally. I
Speaker 2
don't know exactly why, but I mean, it's fine. I wonder, well, I mean, tornado happened and it might have maybe made some people a little bit more cautious to explore that right now.
Speaker 3
Yeah. I don't know. It's just kind of a funny thing because it's like, it's a cool open problem. I mean, you know, maybe if you think that like, Penumbra is the end state of private decentralized exchanges, then in that case, surely like that, you know, go work for number or something instead of making your own. But I, there is an open question of whether there are more interesting mechanisms. I think there are.
Speaker 1
I mean, the place I think that's in between these two is sort of like mechanisms that involve sort of like many auctions that are involved. Right. You know, actually I'm writing this kind of short paper on this right now, but I was actually trying to study this like a gradual Dutch auction thing. This like this, the whatever. I mean, art goblers gross disgusting, whatever that I could never, never imagine liking the art or game like kind of gross. But I think that the mechanism that kind of interesting, if you try to like understand when it's sort of incentive compatible or not, the current version that, you know, the one that our goblers uses and sort of like Dan et al made is technically not incentive compatible, but there's a way to basically modify it. And like, I think once this, the space of things that are like continuous repeated auctions that you can join and leave whenever you want, and there's sort of some, some like supply, it's sort of like a middle ground between the pure RFQ, which is like lots of back and forth to do anything versus like the Uniswap like, Hey, there's just like continuous trading. And I think that space is actually a place where you can make things a lot more private. But I think you first need to actually flesh out the design space of that. Like here are mechanisms that could work not privately. Here's how they work. Like original exponential gradual Dutch auctions is like right idea sort of, but like wrong parameterization and wrong model for like the curve. It's sort of like, so if I do the Uniswap curve that was linear when Uniswap started and it didn't really like it wasn't able to take off. I kind of think that GDA has that problem right now, but yeah, systematically setting that I think will lead to some private routes. And like there's some sense in which, you know, the real north star for private decks should be that there should be some mechanism where trading liquid tokens and NFTs should be the same. You just like parameterize it differently for both in some way. And you can kind of interpolate between the two so that you do this kind of like one type of trading vehicle that lets you do everything. And right now we you see like the vespers of that, right? It's like Uniswap bought that aggregator and like further NFT exchange, just like mainly an aggregation mechanism. But there's some clear thing where there's like a design space like prior to making it private that unify is trading these like non-fungible type of things with liquid tokens. And then you try to make that thing private. So that's sort of if I were to give you the two year vision of this, that would be what I would say is like missing. And you know, I think part of it is like people aren't that interested in building those things when there's not much trading volume. So like there's certainly that aspect that you can't ignore. But maybe, you know, like Uniswap, like someone will in the bear market be bored and interested. And I think like that's more likely the thing to look out for. But again, I think that design space needs to be fleshed out. Like, I think there is some sense in which the north star shouldn't just be private decks or like private RFQ, it should be like, I want to trade NFTs and to liquid tokens almost in the same way. And that thing, if it works, should be able to be made
Speaker 1
But that might be a lofty goal, right? Like you have to have like kind of the hotspot and believe that that thing can be built and whatever.
Speaker 2
It sounds actually a little bit like a Nomas pitch. But actually, I want to know in the larger DeFi ecosystem, are there any other places where ZK's being incorporated, even like maybe on the MEV front? Like, is there any sort of place that you do see some sort of incorporation that we haven't seen yet? Or you could see?