EP 42 — Avoiding the Hidden Tax of DeFi with Nikita from BarterSwap
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Welcome to the Deco podcast, where we bring you stories from founders and investors in Web three. Before we get started, this is not a financial or legal advice. It's just a conversation about things we find interesting in Web three. Views expressed are our own personal opinions. The co members or guests appearing on the show may have positions on assets they talk about. Alright. New episode today with me is Nikita of Genet. He is the founder and CEO of MartaSwap. Welcome to the show, Nikita. Thank
you. Pleasure to be here. Yeah. Excited for our episode about DeFi and Barter. So
yeah. I mean, before we get into topics, I want to know a little bit about you. I think whoever is watching this has probably at some point used one inch. And you started your journey there, or how was your journey into defi since the beginning?
Okay. I studied at Nottingham University. And in 2013, we had a fantastic finance professor to introduce us to Bitcoin, and we studied for two seminars about cryptocurrencies and, like, blockchain. And we concluded that blockchain is an amazing technology, so it can be used has a lot of use cases, but Bitcoin is bad. It's used for fraudulent transactions, the gray market, you know, tax avoidance. We should not engage with that. So for, like, three years, I lived in a paradigm where, like, Bitcoin is something that I should not be a part of. And in 2017, you know, I learned about Ethereum, and
Awesome. Yeah. So before we get into it, I just want to have an outline for whoever is watching so that, you know, if you think that the initial parts is not where you want to spend your time, you can just skip ahead chapters and whatnot. But yeah. So we really want to get to know what Barter does, what MEV is, how is Barter positioned to solve for MEV, why is it important to solve for MEV, and so on. But before that, I want to get into a little bit of what AMMs are, how are they different from, order books as mechanisms of exchange, who are the participants in both, what are the, you know, di
So order books, you know, it'll never really happen in crypto or Ethereum, especially. And I think we'll see a comeback. But the biggest problem is that the price of chain always moves faster. And whenever you made a quote in an order book or put up a position, you cannot just change it without paying extra gas bills. So every time the price, you know, moves, market makers or users who, you know, open up this initial position, they would have to adjust and spend more. And, you know, they might not find counterparty and spend even more money on gas than the original position that they open. And
Would it be fair to talk about MEB now, or you wanna talk about how liquidity moves in both first and then get into MEB? Oh,
let's talk about how liquidity moves. Yeah.
If it
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