Conversation

SBF
@SBF_FTX
Replying to
@SBF_FTX
4) Total locked value in DeFi is in the billions; Compound alone is over $1b. This is up _massively_ from a few months ago. Is the world putting its money in DeFi products? Yes. Yes, it is.
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SBF
@SBF_FTX
5) Well ok, but is it trading? Curve.fi has done nearly $100m in volume today, greater than Deribit and Bitfinex put together. Uniswap has traded $36m today. The majority of its total volume ever has come this month. 1inch is nearing $1b total historical volume
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SBF
@SBF_FTX
6) OK, so people are locking value in DeFi, and trading volumes are up massively. Are valuations up? Well, duh. COMP, LEND, MKR and SNX each have higher mkt cap than any DeFi project used to, and combined fully diluted value is billions.
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SBF
@SBF_FTX
7) So, ok, the numbers look pretty good--they all pretty strongly support explosive growth. So what's the counterargument?
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SBF
@SBF_FTX
8) Well, one could point to the relative scale of those numbers. Sure, DeFi is approaching $1b of total historical volume. On a busy day in March, FTX traded over $5b. One exchange, in one day. And it wasn't the only one. All of DeFi ever still hasn't caught up.
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SBF
@SBF_FTX
9) But, OK, still, DeFi is growing, right? I actually really like the anecdote that DeFi traded ~2x Bitfinex today. Bitfinex is famous of many things--most of all an anonymous enemy on Twitter (remember when bitfinex'd was a big thing?).
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SBF
@SBF_FTX
10) But ask
@paoloardoino
, and you'll hear a different set of things. Among them: a strong aversion to substance-free volume. Bitfinex fees are relatively high and they're proud of that because it means their volume is real and their trades really wanted their trades.
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SBF
@SBF_FTX
11) In fact, Bitfinex has processed billions of dollars of fiat/stablecoin trades this year (creations/redemptions/USD deposits/withdrawals). But those don't show up in their 'volume', because they don't consider it to be real, substantial deltas changing hands.
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