Ariah Klages-Mundt
@aklamun
Dynamic CLPs are doing amazing stats for the crypto majors (ETH and BTC pairs) and will keep scaling. But where is the next 1000x liquidity opportunity? Onchain currency markets (forex). Dynamic CLPs were designed for this. - FX volumes $2T/day >> $8B/day total on DEXs today - FX penetration onchain is tiny today, only 0.0005%. Bringing just 1% onchain would grow the pie of total DEX markets today by 2.5x -- plenty of room for Gyroscope to grow into. FX markets are the most liquid markets in the world but at the same time some of the least competitive for consumers to access. You can trade SPY/USD for 1 cent spread (< 1bp), but typical EUR/USD trades cost 50-300bp for consumers. If the volume routes onchain, onchain LPs can outcompete this. In addition to democratising access to liquidity provision, stablecoins can also offer more efficient settlement structures in at least some use cases.
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Ariah Klages-Mundt
@aklamun
While onchain FX has been tried before, there's never been a better opportunity than now: - Stablecoin rails are being adopted already by TradFi - Coinbase, Binance, Kraken etc are bootstrapping activity on their own chains with a vested interest and fintech connections that could port offchain volumes onchain E.g., new products could bundle USD <> USDC <> EURC <> EUR in a seamless offchain experience but using onchain liquidity under the hood to outcompete consumer alternatives like Wise. Gyroscope is in a good position to grow with this and help facilitate it when it happens: Gyroscope's CLP tech is proven, in production, and already demonstrating its profitability for liquidity providers.
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