Bell Curve

The Evolution of Crypto Exchanges | Austin Adams & Jesse Walden

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Feb 12, 2025
Austin Adams, founder of Whetstone Research, and Jesse Walden, founder of Variant, share their insights on the booming decentralized exchange (DEX) landscape. They discuss the evolution of automated market makers like Uniswap, emphasizing vertical integration to improve liquidity. The duo dives into the design of Doppler and its role in the market, highlighting challenges in token issuance and pricing dynamics. Additionally, they touch on innovative pricing mechanisms and the importance of security in DeFi, particularly with Uniswap's $15.5 million bug bounty.
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INSIGHT

DEX Evolution

  • DEXs evolved from one-size-fits-all to specialized solutions.
  • This evolution allows for platforms where developers can build customized solutions on top.
INSIGHT

Tokenization and DEXs

  • Tokenization of real-world assets is driving the need for diverse DEX solutions.
  • This diversification includes both platformization and vertical integration.
INSIGHT

Vertical Integration in DeFi

  • Uniswap's early success was partly due to its vertical integration, combining protocol and user experience.
  • This approach bootstrapped liquidity and set a precedent for other DeFi projects.
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