RE: LeoThread 2025-08-03 17:13
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A random thought popped up: imagine a synthetic exchange that's purely virtual and uses oracles to operate.
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You are viewing a single comment's thread:
A random thought popped up: imagine a synthetic exchange that's purely virtual and uses oracles to operate.
By utilizing a USDC pool combined with a terra-like automated market maker system featuring slip-based controls, it's possible to create an exchange without a traditional market setup.
You could adjust the slip to prevent the pool from depleting—in fact, it could only increase.
To attract users, the focus would be offering superior execution and a user-friendly interface. Apart from the USDC, everything about the system is virtual.
Picture a backed, fee-free, instant exchange. If assets were denominated in sats, a BTC pool could be used, or if in Gwei, an ETH pool would be appropriate.
This setup remains efficient and trust-less since a single trader can't exploit it due to the slip, which ensures a house advantage.
With numerous traders, the market balances itself between winners and losers, with the exchange acting as the house.
The USDC could be multisig or implemented on another layer like Rujira.
Essentially, it's the ultimate Mirror Finance.