FTX ‘Out-Innovates’ Once Again with UNISWAP-PERP Launch, a Future on the Top 100 Uniswap Pools
While derivatives exchange, BitMEX has been launching the Quanto perpetual swaps of the likes of Litecoin (LTC) and Bitcoin Cash (BCH), and Binance is racing to list all the DeFi tokens, FTX is taking it one step further.
Not only has the derivatives exchange been delving deep into the DeFi world with its decentralized derivatives exchange Serum, but it has also launched DeFi perpetual contracts. Now, it's ready with another one — UNISWAP-PERP.
“Once again FTX_Official continues to out-innovate every other exchange in the space,” said crypto investor Joe McCann, who works in the cloud and AI at Microsoft.
FTX is now targeting the popular DEX Uniswap to cater to the large demand from its customers and provide them “exposure to a broad base of DeFi.”
Amidst the skyrocketing fees on the Ethereum network, FTX is offering exposure to 100 markets while paying lower fees and using leverage.
Automated liquidity protocol, Uniswap is actually the biggest gas guzzler on Ethereum network, which has been seeing a growth of 88% week-on-week and 9,853% year-to-date in terms of volume, reaching $1.5 billion for the week of August 10, managing more volume than even some of the popular centralized exchanges.
“Uniswap single-handedly commands 57% decentralized trading volume market share,” wrote Teo Leibowitz, Strategy Lead at Uniswap.
In the week ending Aug. 8, the platform added over 28,000 new traders, for a total of 76,636 unique traders, up 32% week-on-week.
Uniswap v2 is also seeing net positive liquidity inflows despite the increasing competition for capital and absence of a proprietary liquidity mining program — now containing over $259m liquidity across all pools and producing a gross LP annualized yield of over 90%.
Although Uniswap, that has nearly $200 million locked in the protocol, is the dominant presence in the growing DEXs sector, trader and, entrepreneur Qiao Wang says, AMMs are not a paradigm shift and, Uniswap is a temporary solution “while we wait for blockchains to scale.”
But it will Unbundle
Despite Uniswap being the largest DEX, “it's inevitable that Uniswap is going to be unbundled,” but that will also open up the design space of on-chain market-making, said Haseeb Qureshi, managing partner at crypto venture fund Dragonfly Capital.
Decided to actually learn about Uniswap. Got to this: "Also unlike most exchanges, which match buyers and sellers to determine prices and execute trades, Uniswap uses a simple math equation and pools of tokens and ETH to do the same job."
Yup, I'm done here. GL on the shitshow.
— alp (@alpacasw) August 20, 2020
Qureshi says people trade on DeFi not because it’s “truly decentralized” but because they are lazy. And once it “becomes a brokerage that can fill huge volumes of trades on almost any asset with minimal slippage, it’ll start to look more and more attractive compared to centralized exchanges.”
Like centralized exchanges, DeFi has many services to cross-sell such, as buying tokens, setting up a savings account, taking out a loan, farm assets, playing games, and gamble, without any counterparty risk or KYC.
So, one day, DeFi will eat CeFi which, “will happen later than most DeFi people think. But it will also happen sooner than most CeFi people think,” he said.