Uniswap recently unveiled the vaunted third version of its world-beating DEX. Reactions have been mixed, primarily over the uncertainty of how V3 changes the dynamics between active and passive liquidity providers (LPs). Considering the Parsec Research piece back in the fall on the matter - Citadel's Sharpe Is Uniswap's Opportunity, a follow up is necessary. The V3 design presents as a viable…

Automated Markets Makers (AMM's) are a relatively novel concept that has been popularized primarily by Uniswap. Most discussions around the tradeoffs of AMM's are usually of two forms. The first comes from experienced traders who can’t get past the inefficiencies that arise from AMM pool trading. The second comes from crypto native's who proselytize our future of peer to contract financial…

In traditional finance, when you hit BUY on screen. The experience is seamless, and in a few seconds you have price exposure to a financial product. Behind the scenes an absurd amount of financial engineering and infrastructure allows for such a seamless experience. A distributed systems problem ensues between algo traders, brokers, investors, copious regulation and dozens of other intermediaries…

The crypto options market has been slow to develop, with Deribit finally breaking through and providing the first retail friendly crypto options products. As with many crypto derivatives products they are unavailable to Americans, and they are custodial. The fact that the crypto options market remains immature presents a huge opportunity for Open Finance. Options are complicated not in their…