Doug has spent his career searching for and trading inefficient markets, first at Citadel’s high-frequency trading group, then for himself, and then as an operator building CrocSwap.
Summary/Review and Takeaway
Crocswap is a DeFi (decentralized finance) use-case for solving the friction challenges that traditional centralized exchanges deal with in their market making platforms. Automated market makers host liquidity providers, that provide liquidity and price discovery in the world of Crypto, in return for a yield (which can be in the form of Crypto tokens themselves). Unfortunately, high gas fees within Crypto limit HFT (high-frequency trading) potential. CrocSwap and other decentralized exchanges aim to use ‘single smart contracts’ which accumulate capital in a single place (as opposed to 10,000 different contracts) and reduce Crypto trading gas fees up-to 50%.
Key Learnings