DEXs 3.0: Powering the Next Wave of Decentralized Trading - TOKEN2049 Singapore 2024

I'm ran uh co-founder of orderly Network great to be here talking about exchanges so by a show of hands how many of you have used a centralized exchange okay how many of you have used a decentralized exchange that's actually a pretty good uh pretty good ratio of centralized versus decent CED it's higher than I expected um so I mean I think most people have used a centralized exchange if you're sitting at this conference um and we're very aware of some of the issues with centralized exchanges um not your key is not your crypto obviously uh what happened with um FTX and other centralized entities um you have no idea kind of where the money sits where the assets sit because it's co-mingled accounts uh um in in pools in their in their code wallets so there's a lack of transparency around that right it's kind of similar to trafi institutions and what happened during financial crisis U where you know over leverage um you know misappropriation of balance sheet can lead to uh users failing to redeem their assets running a centralized exchange is actually essentially a web two company you know binance 5,000 people centralized exchanges over a thousand people very high operating costs uh and again uh like a web2 company there's actually a minimal use of blockchains it's used as store of assets mostly um and not really on the smart contract level but uh centralized exchanges we're we're all using them right and why is that because it's easy to use it's very intuitive it's easy to use it has a full spectrum of products it's highly performant now it has the best liquidity for spot and for pers uh you know binance is still 50% of the world's market share in terms of exchanges uh and and the trading costs are not high it's relatively low for Traders then we talk about dexus right so dexus are you know for those have used it they're not user friendly right compared to centralized exchanges there's too many clicks the onboarding through metamask or another wallets you're messing around with with uh chains you have to access Bridges you're perhaps using wrapped assets which has their new levels of risks so the whole experience is not great the trading cost can be high you know if you're executing a trade on Unis swap versus on binance or on a per protocol the chances are that you're TR paying higher trading costs higher slippage um and even gas cost right so this is not uh this is not on centralized exchanges so the costs are kind of high price Discovery is is slow because most of the liquidity is still on centralized exchanges so when we trading on dexus the um the price Discovery is not there and also fragmented liquidity you know now there's so many layer ones and a ton of layer twos on evbm that the liquidity is actually fragmented if you take Unis swap on arbitrum versus Unis swap on polygon they're actually two separate products right the liquidity is separated The Branding is the same but the ux uh and the liquidity for the same asset can be can be entirely different but then why do we bother using defi right because of this if this belief that you know one one day we're going to have the whole financial system on the blockchain it's truly transparent right um there's no misappropriation of assets um you know what when when we we had the whole 3ac crisis the lunar crisis um where assets assets fell a ton you know protocols like a still held held its own and um and the community can see everything happening and they can jump into support it's permissionless right so we have permissionless listing of assets permissionless liquidity provision that happens on Unis Swap and other protocols um that allow pretty much anyone to list anything um in in the spot world it's interoperable right given everything is open source it's very easily interoperable though not so much across blockchains yet but but on a single chain highly interoperable and of course the decentralized decentralized not even on the not just on the technology level but also on the governance and the value capture I mean the whole ethos of web 3 is that us as users can all um be stakeholders we have the token we should get value capture we should get voting rights we're not just users like we are on centralized exchanges so what I think will be the future of um dexas which I think will just be exchanges in general and not just dexas is that anyone should be able to trade anything from anywhere extremely frictionless onboarding access to any asset for anyone in the world I think that's where exchanges are going and from any platform right so um you know what does that actually look like right I think currently for for decentralized trading the liquidity is fragmented um again as we said unit swap on arbitrum is different to unit swap on polygon the liquidity is is not combined but that that shouldn't be the case right it should be um an omni chain experience with unified liquidity across blockchains it doesn't matter if it's layer one it doesn't matter if it's Layer Two doesn't matter if it's layer three the liquidity should be aggregated right I mean this is a this is a very um intuitive concept just given the interoperability of of def5 um by the fact fact that it's it's easier to aggregate liquidity in defi but you know currently it's difficult across blockchains um but I think it should be shared right um it should be fully transparent as we all know and avoid any of the FTX scenarios that we've seen in the past um it should be great ux so in the future of exchanges the centralized exchanges should have the same if not better ux as centralized exchanges we're talking about Biometrics fi on ramps um no interactions with chains chains should be abstracted away users should be dealing with non-wrapped assets should be dealing with the native assets right e either as collateral for pers or spot trading The Experience should be the same if not better than centralized exchanges I think that's when D5 will actually get more massive adoption but at the same time it should retain the permissionless of of desent of def5 right for longtail assets meaning that anyone should be able to list any asset provided some threshold of liquidity and anyone should be able to partake in that process liquidity provision liquidations anything now the process I don't know I mean how many project Founders or teams are out there but the process of listing and assets on the spot and perpetuals um the process of listing on centralized exchanges it's very difficult tedious uh it's kind of a black box uh it's it's not it's not a fun process um to be in you know we we we've launched a token recently so we just went through that process um but it shouldn't be that way right it should be permissionless listings um on some sort of a a tool that still allows you to attract liquidity um and to attract participation from the community and to even solicit the community for marketing needs uh and such for for new assets and that everything should be on one platform you know not just crypto assets but rwas like Commodities FX potentially stocks prediction markets should all be on one asset right you just need liquidity participation from all parties need you need oracles for perpetuals but all the assets should be should be on should be on one platform uh ideally at least on the liquidity layer uh and then so anyone can trade anything um from anywhere there's no reason for it to be fully segregated and that goes into um that goes into the dream of how traditional assets trafy assets can fully be migrated on chain uh to trade you know via perpetuals VIA spot everything and it's still seamlessly interoperable right that's one of the beauties of defi so you can have you know people on the top layer who are creating front ends you know the one in of the world the matches of the world that have grade ux for the users and they're aggregating all types of liquidity um in in perpetuals in spot for any asset and then um I think you can you should be able to also create your own front end or your own product in a matter of minutes right so now you know we're going to uh the large exchanges to access their services uh and a lot of times the people who have the users and who have the traffic really want to create their own thing you know it should be it should be catered um it should be custom front ends for whichever geography whichever type of users We believe We don't believe in the one siiz fits-all um type of product in terms of trading and and as we've seen this in traditional assets whereas like the robin hoods of the world um are catering to retail Traders and that's very different than the interactive brokers catering to professional Traders and the investment banks that cater to institutions right these are different types of requirements in terms of compliance ux liquidity product set um and they need to be different products so we see a world in where all types of interesting exchanges are launched um with this type of infrastructure to service their specific target audience so again I think this is kind of the elements that's needed for anyone to trade anything from anywhere uh you know know fully accessible to anyone through any interface uh great liquidity uh permissionless listings so I mean this is essentially what we're doing at orderly um we're trying to make this happen uh we think to to to do this I mean this is kind of the dream of Defi and uh the holy grail and we're trying to to to make this happen so I mean what have we done now we have an omni chain order book so chain abstracted across different blockchains across seven different blockchains going to be by early next month we have un UniFi liquidity across the blockchain so not fragmented um low cost low cost trading it's it's similar to centralized exchanges and then anyone can create a DEX there's about 20 plus um dexes launched on top of orderly some are amm spot that created a DEX product some are wallets some are custodians some are soci apps that have launched um and we have over 50 uh 55 perpetuals markets listed already and what's coming next uh we want to get we want to enable permissions listings right so then self-service listings if you're a project if you're a mem coin if you want to list some interesting prediction Market we want to make be able to do that want you to be able to do that effectively and and very fast on a on perpetuals so adding certain amount of liquidity and meeting certain criteria it should go live and then all of our different front ends 20 plus front ends will potentially list it as well um also permissions liity provision liquidation so again having users to be able to partake in all aspects of the exchange infrastructure and to provide liquidity and lastly institutional friendly in terms of where assets are custodi um how they're settled and um and and compliance so this is what's coming um so this is some stats about what we've done currently up to date since last November we've processed over 82 billion now dollarss in total volumes we have on our own orderly chain so that's all the volumes of uh combined volumes of all the the perss traded across our 20 plus different front ends um these are some of our social stats um feel free to please join our Discord give us a follow on Twitter send me a DM Happy to um happy to have you in our community uh a bit about our ecosystem we we're fortunate to have some of the best in the space be our backers whether it's uh you know VCS like panta dragonfly tra ERS like jump um GSR or or Builders um laser digital who uh who is a crypto arm of of no more Securities and a bunch of these are actually the protocols that have integrated orderly uh orderly pers and these are already live everything's already live so then if you if you're interested in trying out kind of the product uh you know all these again the the idea is anyone can trade anything from anywhere so this is kind of where the anywhere lies these are the some of the front ends that are built on orderly and these are all Omni chain um dexes which are alive on seven different chains going going to be eight so it's insom chain experience um right off the bat uh and this is some of our socials um thank you for having me we look forward to building the future of trading and exchanges together thank you