current defi exchange volume driver (speculation)
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~ Trading of WBTC/ETH pair
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~ Liquidated CDP’s > purchase Dai from Kyber >sell off Eth collateral > liquidator goes to Wbtc/usd-c> withdraw BTC
onchain networks slow> increased slippage from spot prices >reduced trading>reduced fee for liquidity providers> reduced liquidity/increased withdrawals > further increased slippage > less trading >less fees… Death spiral
the dependence on the scalability of ETH is staggering
Nash i presume is using Centralised liquidity providers