The current state of the cryptocurrency industry is ripe for the emergence of a decentralized prime brokerage. Here are a few reasons why now is the time for this innovation:
There has been a significant shift in trading volumes from centralized exchanges (CEXs) to decentralized exchanges (DEXs), highlighting the need for improved liquidity provisioning and trading experience on DEXs.
The crypto market capitalization has surpassed $1 trillion and is projected to reach over $15 trillion by 2030, creating a need for more sophisticated financial products and services in the crypto industry.
Current DEXs face scalability issues, such as high gas fees and slow transaction times, which can limit trading volumes and liquidity provision. Implementing a decentralized prime brokerage can address these issues by providing efficient and reliable liquidity provisioning.
With the rise of Miner Extractable Value (MEV) and frontrunning attacks, traders need a more secure and transparent trading environment. A decentralized prime brokerage can offer improved security and transparency, as well as reduce the risk of market manipulation.