The Hidden Cost of Zero-Fee DEX's

Ruslan Fakhrutdinov from Extended Perp Exchange talks about building a unified margin across perps, vaults & yield, spot, and an integrated lending market. He explains critical components for a trustless perp DEX such as self-custody and on-chain solvency checks. Ruslan shares his experience with user acquisition programs, the total cost of execution vs. zero fees, and Extended's transparent fee model. We also discuss gauging sustainable product market fit in a post-airdrop environment and the roadmap for cross-asset collateral.

Subscribe to the newsletter! https://newsletter.blockspacemedia.com

Notes:
* Perp DEX market share grew 15-20%
* Vault earns up to 1% in liquidations
* Using 90% of vault shares as collateral

Timestamps:
00:00 Start
00:03 Ruslan's background
01:12 What is Extended?
03:14 What must be on-chain?
05:55 Perp DEX liquidity
07:09 Calculating price of execution
09:06 Zero fees, good or bad?
13:22 Promotions vs regular users
18:32 UX design
21:35 Mobile trading apps
23:43 Perp DEX aggregators?
27:51 Vault system
29:50 Estimating Vault risk
34:28 End stage Vault design?
38:10 Spot market plans?
42:46 Validators
43:34 Next 5 years
46:10 RWA on DEXs
47:53 Wrapping assets vs native
49:06 Wrap up

The Gwart Show is sponsored by Ellipsis Labs. Backed by Paradigm, Electric Capital and Haun Ventures. The founders, Eugene and Jerry, have experienced Citadel Jane Street in the Solana Core team since launching their order book DEX, Phoenix. They’ve done over $80 billion in trading volume by making onchain order books competitive with centralized exchanges. 

Ellipsis is hiring for New York-based engineers. Work with a small focus team who are results driven, collaborative, and use a modern stack. If you’re an engineer who wants to work on infrastructure that’s already proven itself in the market, go to ⁠⁠ellipsislabs.xyz⁠⁠.

Learn more about your ad choices. Visit megaphone.fm/adchoices