Building Better On-chain Trading Infrastructure With Jarry Xiao

Welcome back to The Gwart Show! Today, Jarry Xiao, co-founder and engineering lead at Ellipsis Labs, joins to chat tradfi to crypto infrastructure. Jarry dives deep into Phoenix, their central limit order book on Solana, and introduces Atlas - their purpose-built blockchain for financial applications. The conversation touches blockchain trading challenges, the economics of validator networks, and why truly effective trading systems require opinionated design.

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Notes:

- Phoenix did $70B+ in organic trading volume

- Solana's 400ms blocks still too slow for HFT

- Atlas uses single verifiable sequencer model

- Market makers need priority cancellations

- Blockchain revenue sustainability questionable

- MEV/sandwiching not sustainable for finance

Timestamps:

00:00 Start

00:33 Who is Jarray?

01:09 TradFi experience

01:50 What was Jarry trading?

03:23 Phoenix order book

06:45 Aggregators

10:31 Open validator set blockchain

13:15 Market making on SOL

17:05 Atlas

20:57 Limitations of SOL

25:02 Rejecting SOL base assumptions

28:09 What does Atlas unlock?

34:46 Purpose built?

36:31 Opinion sequencing

37:53 Multiple use cases

42:37 Stock market on-chain

46:53 Why L2 sequencer design?

54:11 Memecoins here to stay

1:04:39 Why did it take so long?

👋 The Gwart Show is sponsored by Ellipsis Labs. Ellipsis Labs is building Atlas, the blockchain purpose-built for verifiable finance. You may know of Ellipsis Labs by their first product Phoenix, a fully on-chain orderbook DEX that’s done over 50 billion dollars in unincentivized volume. They are one of the strongest teams I know in crypto. If you’re interested in working for a mission-driven company, Ellipsis Labs is hiring engineers passionate about crypto and finance to work on Atlas. You can learn more and apply on Ellipsis Labs’ Twitter “at Ellipsis_Labs”. Don’t forget to check out Atlas too, @atlasxyz on Twitter.

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