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SBF
@SBF_FTX
Replying to
@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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SBF
@SBF_FTX
13) Instead we classified them as deposits/withdrawals--depositing USDC and withdrawing TUSD, 1:1. Which, I guess, would correspond to infinite TLV on a stablecoin:stablecoin pool.
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SBF
@SBF_FTX
15) And how about the locked volume? Again, it's all stablecoins. Compound, the largets, is mostly people borrowing DAI from themselves; Curve is basically all stablecoins. Most of DeFi right now is people locking, trading, and lending stablecoins against each other.
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SBF
@SBF_FTX
16) Why? Well, because at this point any project with their salt has liquidity incentives. The total notional per day is around $1m (!!!). So people are buying, and selling, and borrowing, and lending, and locking their stablecoins for pay.
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