Lightspeed How To Improve Solana's Market Structure | Eugene Chen
Jul 5, 2025
Eugene Chen, co-founder of Ellipsis Labs, shares his insights on improving Solana's market structure. He discusses innovative projects like Atlas, Phoenix, and SolFi, emphasizing the need for quality product development. The conversation dives into the complexities of market dynamics, exploring market-making innovations and the impact of Miner Extractable Value (MEV) on retail investors. Eugene also highlights the strategic advantages of perpetual contracts and new automated market makers aimed at enhancing token launch efficiency. Tune in for fresh ideas on boosting user experience!
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Ellipsis Labs' Evolution
- Eugene Chen shared Ellipsis Labs' journey starting with Phoenix, an on-chain order book exchange on Solana with $75 billion traded.
- They built Atlas as a layer two for high-frequency trading, transitioning Phoenix as a flagship product on Atlas.
Multiple Leaders vs Sequencer Control
- Multiple concurrent leaders reduce but don't eliminate the proposer monopoly over transaction ordering on Solana.
- A centralized sequencer in a Layer 2 offers benevolent, application-optimized transaction ordering not possible on Layer 1.
Crypto Market Making Complexity
- On-chain market making is complex due to multiple actors and evolving infrastructure.
- Traditional centralized exchanges offer simplicity and efficiency absent in today's on-chain systems.