Aerodrome’s Big Upgrade | Alexander Cutler

Bullish:

• $ARROW - Arrow (formerly Aerodrome/Velodrome) is expanding to Ethereum mainnet and new chains with MetaDEX 3, which will internalize MEV and other revenue streams while already being net revenue positive.

  • “these two protocols only service about one fifth of total EDM volumes. So in theory, everybody's share of total rewards should grow”

    Alexander·4:00

  • “Arrow led all DEXs last year in revenue by a substantial margin”

    Alexander·5:00

  • “based on our back testing and estimates, it's like a 2.8x net increase in value you know flowing back into the system”

    Alexander·5:53

  • “In Q4 on Aerodrome, more revenue came back to the token than was emitted. So that would be you know a net gain for everybody”

    Alexander·44:46

  • “if we just captured 30% of mainnet, we're the largest decks anywhere period”

    Alexander·32:12
• $DEX - DEXs are becoming the core liquidity infrastructure with centralized exchanges increasingly integrating and distributing DEX products, creating a massive growth opportunity.

  • “centralized exchanges are integrating and distributing these products and that as the industry continues to grow that will be where most of the economic activity is created”

    Alexander·39:09

  • “folks like OKX, like Coinbase are directly integrating DEXs into their core products and now distributing this infrastructure”

    Alexander·38:34

  • “I think it's inevitable for kind of any forward facing consumer crypto company to distribute coin sorry, DeFi products generally”

    Alexander·40:53
• $COIN - Coinbase is actively integrating DEX infrastructure and routing orders to decentralized exchanges, positioning itself well in the evolving market structure.

  • “Coinbase Ventures can go out buy a bunch of Arrow, lock it up and then use that to drive liquidity and business outcomes on base while earning back you know a ton of value for that activity”

    Alexander·17:50

  • “we're seeing centralized exchanges route orders to DEXs. I think that's a trend we'll continue to see grow”

    Danny·39:26

Bearish:

• $UNI - Uniswap's fee switch implementation is cutting LP rewards by 25% while Arrow offers better economics, potentially triggering a vampire attack scenario similar to SushiSwap.

  • “If you cut fees, sell fees by 25%, which is the average I think of what they are doing right right now, that makes our competitive advantage I think all the more significant”

    Alexander·31:10

  • “SushiSwap took 50% of Uniswap share in about a week”

    Alexander·31:43

  • “the ratio of emissions to revenue on most protocols is infinite, right? Until a few weeks ago on UniSwap it was infinite for years”

    Alexander·45:34

  • “the 20,000,000 UNI tokens that labs is going to need to spend in the next year to sell, it's about $120,000,000 and the current back testing on the fee switch says it will only bring in about $20,000,000”

    Alexander·45:52
• $CEFI - Centralized exchanges' listing fee model is being disrupted by DEX launch platforms, threatening a billion-dollar revenue stream.

  • “centralized exchanges have made taking like 10% plus of token supplies and you know basically extracting that value from the project”

    Alexander·51:44

  • “if you can disrupt that business model, you can internalize it into an AMM is a huge one”

    Alexander·51:56