AMM Killer for ERC20 tokens

Fiat Ramps
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#1

I see a strong feature of having a spot market in Nash against the order book type. currently there are a lot of bots running on AMM exchanges like Uniswap and they still make profit on top of the blockchain fees for each trade.

With the new strategy of spot market trades with fiat pair, if we could settle the ERC20 tokens in L2 we could give a tough fight to the AMMs. In fact we could do this already with USDC instead of waiting for the fiat integrations.

Am sure the Team would have thought about this. Wondering how the Team is planning for the liquidity ? May be they are planning to couple the Nash savings feature here so that the those tokens would be used for providing liquidity and the fees generated would be used to pay back as interest.

Any thoughts from others who differ?

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Our new strategy and roadmap
#2

With the technology it has, if Nash would be more daring we would be one of those skyrocketing DeFi coins we see almost every day.

I don’t encourage Nash goes breaking any regulations but playing it too safe is a death trap. Uber is a good example of going into uncharted territory with a pragmatic balance between regulatory compliance and innovation. An Uber-like mindset coupled with Nash tech we can be implementing new ideas (such as the one you are proposing). If market signals point to AMM DEXs and with scalability being the main issue, Nash would make a killing with its L2 tech (especially considering how many of those coins on AMM DEXs are ERC 20 and could be easily offered on Nash). Perhaps this would be the way of growing the L2 exchange that has taken a back seat for now with the focus on MPC wallet trading.

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#3

Quoting Fabian announcing the new strategy for 2021:

Compliance can be both a burden and a catalyst if taken advantage of. Nash identified that it - coupled some of its other core strengths (MPC security, polished UX,…) - can be the perfect recipe for global adoption by retail users. In other words, there’s more than one path to success!

Nash’s new path to success is ambitious but coherent with the above:

  • For retails users - even those unfamiliar with crypto - Nash will try to become the one-stop-shop through a great buy-&-hold(-&pay) mobile-&-web platform and - I imagine - inspiring marketing campaigns and addicting referral programs. Coinbase if you will but better because non-custodial and with banking services (IBANs, cards…)

  • For advanced users and traders, Nash’s L2 exchange is still a great product that could attract professional traders with its low fees and deep liquidity

What this all means is that Uniswap and even, in a way, Binance, are clearly not direct competitors anymore. We should focus on Nash’s new strategy and our fight is not with them.

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#4

I agree with all of your points except the last one :slight_smile: A new retail user enters the market either by reference from other friends are by a simple google search to find the best place to buy a coin. But if we tap crypto traders from other exchanges, with a solution for their problems, they will act as a referral for us.

We all like the strategy overall and all the features Nash has built so far. We should still remain compliant and try to list only regulated tokens unlike the AMM exchanges.

This suggestion of mine is just in line with the strategy to make it work with 0 blockchain fees. But the AMMs already have a good liquidity as early movers and would be a challenge to tap the token liquidity.

Am sure the Team has some plan :slight_smile:

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#5

it can be as simple as current swap functionality but on chain. the exchange can setup a counter party to execute the same amount tx on L2 and send tokens directly to wallet or to L2 (let the customer choose) of course you need some LP or there will be too much tx fees paid to rebalance.

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