The next phase of DeFi that transforms everything is decentralized listing liquidity solutions.
Hello friends, all of you are welcome to this post.As the days pass, I consider how we can break free from the control of centralized exchanges and on/off ramp services.The latter will undoubtedly be the most difficult to crack, given the nature of the system required for its facilitation. KYC will probably always be a thing here and the only way to not be known is to forge an ID, but that's simply too much work(trouble) for the typical individual.However, crypto has significantly greater control difficulties than on-ramp services, and it ranks at the top of the list for concentrated liquidity. DeFi has drawn a lot of liquidity and volume over the years thanks to decentralized exchange solutions, but it's still not where it could be, not just in terms of general trading, but also as a known feature.
I was going to call this essay "Decentralized market making is an urgency to scale DEX listings," but then I realized that decentralized market making already exists, it's just not built or branded to support the notion of having a "market maker."The market makers on a decentralized exchange are unique to each trade pair, thus they vary across the board, just as on a centralized exchange.
The problem however, is that with a centralized exchange, end users generally aren't thinking of market makers as separate bodies to each pair, but rather, a collective serving the exchange in entirety.This is simply a standby liquidity solution for fresh coin and market launches. The overall aim is to provide an effective alternative liquidity option for new project tokens entering the market, reducing our reliance on centralized exchanges.
There isn't anything like this out there right now, according to my thinking.
We may use a DAO technique to achieve instant liquidity, or we could work with specific time-lock contracts with unique modifications that can be changed at any moment, either manually or automatically by secondary smart contracts.
Projects can worry less about compliance and use those big payments made to exchanges to decentrally incentivize instant liquidity. With the correct design and branding, this becomes a whole new piece of work for value flow, and we can rival exchange volumes because market makers now have far more open incentives free from centralized bottlenecks.