Ruslan Fakhrutdinov – Extended Exchange and Vault Tokenization (S7E27)

Bullish:

• $DEX - Decentralized exchanges are gaining significant flow and adoption, with innovative vault designs and cross-asset margin capabilities positioning them to compete with centralized exchanges.

  • “Flow continues to move towards these platforms.”

    Corey·1:37

  • “we believe that the benefits of the vault outweigh those implications. And that's why we've launched that product. We also believe that given that, at least in our world, the benefits of having yield bearing collateral, which has a boosted yield, is bigger than the edge case of effectively covering the losses by using the margin of profitable traders, we also believe that it will be becoming an industry standard in the longer run”

    Ruslan·36:28
• $MARKETMAKING - Market makers on decentralized exchanges have profitable opportunities through liquidation flows and RFQ systems, with over 50 market makers integrated into Extended alone.

  • “in reality, probably we have, I don't know, over 50 various market makers integrated into extended and they do have sizable USDC balances and bore the liquidations of the spot assets, they will essentially be serving a very profitable flow.”

    Ruslan·41:49

  • “we're effectively saying market makers, guys, you can use your entire margin to be serving both liquidations on extended and effectively making money on that.”

    Ruslan·42:57

Bearish:

• $CEFI - Centralized exchanges are losing market share to decentralized alternatives that offer better product portfolios and don't control user funds.

  • “the product portfolio of the perp decks is still significantly lagging behind versus what the centralized exchanges can offer.”

    Ruslan·4:23

  • “if you control the settlement layer, right, in the end you control the user funds. In the nutshell, the settlement layer is the like underlying tech stack, blockchain, or whatever, where all the transactions are settled, and where the user balances are stored”

    Ruslan·5:19

  • “if you do control the settlement layer, or even if you have an impact on it, basically, you are not so different from a centralized exchange.”

    Ruslan·5:48
• $DEFI - DeFi spot markets on order book exchanges are illiquid compared to decentralized exchanges, creating a major blocker for cross-asset collateral margin at scale.

  • “if we look at the spot markets in DeFi, especially on the order book basic changes, they are quite illiquid compared to decentralized exchanges. And that's probably the major blocker to support crosshastical actual margin and scale.”

    Ruslan·42:42