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Bell Curve

DEXs: Uniswap Origin, Intents, Scaling, and LVR | Season 6 Premiere

Sep 26, 2023
Dan Robinson, General Partner and Head of Research at Paradigm, joins as co-host to dive deep into DEX designs. They discuss Uniswap's origin story, V4 design, intent-based architecture, retail and market makers, and scaling strategies. Topics also include mitigating LVR, impact of gas constraints, and balancing the needs of swappers and liquidity providers in the DEX ecosystem.
01:19:59

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Value leakage is a concern in DEXs due to loss for rebalancing, price slippage, and platform tax.
  • Gas constraints on Ethereum network challenge on-chain decks design, emphasizing gas efficiency.

Deep dives

Value Capture: Leakage of value in the decks ecosystem

Value leakage within the decks ecosystem is a significant issue that needs to be addressed. There are three main areas where value capture is a concern: loss for rebalancing, where liquidity providers suffer losses due to price changes and arbitrage; price slippage for traders, especially in cases of sandwich attacks; and the platform tax imposed by Ethereum in the form of transaction fees. These leaks of value need to be mitigated in order to grow the overall value in the decks ecosystem and ensure fair and sustainable participation for both swappers and liquidity providers.

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