In the traditional world of finance Investors rely on credit to invest in multiple exchanges from one collateral managed by a leading broker.

At the same time, digital asset investors They are often forced to raise almost all funds in their trading activities. That is, the transfer of funds to an unregulated exchange with shallow liquidity. Where they face a high level of risk for their counterparties. And faced the problem of slow liquidation due to congestion on the network

Currently, the exchange And the big moderators are fixing this issue. By creating traditional leading broker models for crypto, it gives digital asset investors access to lending liquidity. And leverage the service to create simultaneous investments in different locations from a single collateral.

But while leading centralized brokers have liquidity contracts pouring into decentralized finance. It was also pointed out that DeFi is the future. This connected operations can offer deeper liquidity to institutional investors. Equipped with excellent ability to allocate assets to multiple locations through a decentralized combination.

According to Sam Bankman-Fried, founder of Serum & FTX, this could eventually create the next generation of marketing infrastructure that allows institutions to make the most of the cryptocurrency.

“In the end, you might see a major form of brokerage. (And assembly capabilities for affiliate projects) reduce the need for funding. But it may take a while for it to be really effective. "

Auto Market Builder v1.0

At the heart of a hybrid DeFi system are Marketing automation builder These projects replace orders with smart contract liquidity groups. And price curve model And incentivize investors to provide liquidity by offering returns on locked coins.

These AMMs suck liquidity away from other exchanges to form a deep pool of liquidity. It accounts for more than 90% of DEX volumes, with the largest examples such as UniSwap obscuring centralized exchanges such as Coinbase Pro in trading volume.

With integration with lending And borrowing in the DeFi AMM world, these can provide DeFi necessary liquidity to act as a leading decentralized brokerage. But today, this first generation of AMMs is still hit by harsh restrictions that prevent large investors from stepping in.

The high cost of calculations on Ethereum 1.0 forces these AMMs to use simple and economical mechanisms, but even in their simplicity. They still experience congestion on the network. High fees And delayed price information than a centralized exchange.

The liquidity consistency in these projects is limited by flawed synergies like Bitcoin, which destroys the unauthorized coin. And endure DeFi audits through centralized asset control.

The method of transferring Bitcoin to various networks worries many, with Vitalik Buterin raising concerns about the trust model and Robert Leshner, co-founder of Compound, voted not to register the WBTC due to the risk of "Safety of users and property"

"Crossing the line is a hassle," said Curve co-founder Michael. "Curve is doing great markets on Ethereum, but it is not currently on any other network and Ethereum is experiencing scalability issues."

Marketing Automation Creator v2.0

Blockchain with high throughput and L2 programs is enabling increasingly sophisticated AMMs, bringing DeFi one step closer to serving as a leading decentralized broker.

These projects, such as Bancor v2 and THORChain, enable cross-intersection capabilities. Between digital assets, which may create deep liquidity shared among institutional deep liquidity networks.

“The ideal system structure is the total liquidity between projects. And all the resulting value is shared in a decentralized way, ”said Bancor co-founder Galia Benartzi.“ It's better for consumers and innovation. But defies our original idea of ​​competition. And the winner will use the entire market structure (Or mostly) "

Each project competing to offer liquidity across different lines takes a different approach. Some have technical limitations And some are not available to the needs of institutional investors. At the forefront, there are some projects that use the MPC to secure assets on the L2 network, which is building security. The ability to work together And the privacy needed to deliver DeFi liquidity to institutional investors.

Ren provides a cross-network liquidity network by MPC. Founder Chris Burgess says this can be used in conjunction with the Automated Producer (AMM) market to “connect idle liquidity. And open up a new era of use (For users and liquidity providers) for all digital assets "

To connect assets between networks, Ren used a similar model to other projects, such as Synthetic (sBTC) and pTokens (pBTC), which faced heavy criticism for the security model with team members n Ren. 5 people stole 9,000 BTC, over BTC locked on the network.

THORchain is described by its founders as a cross-linked Uniswap that creates reliable digital coin asset offerings. Without the need for connectors to create deeper collaboration capabilities. Without losing power distribution The vision attracted over $ 30 million in liquidity, offering 85.22% APY.

Qredo is a cross-line AMM that secures assets without price fixing using a custom HSM-backed MPC network in a distributed data center. It acts as a DEX aggregator that can route assets between liquidity groups, across networks and through fund management. And partnerships with financial giants such as HedgeGuard as the leading institutional decentralized broker.

Because decentralized projects attract more liquidity These projects are likely to be at the forefront of the competition in providing capital market infrastructure capable of supporting the rapidly converging world of crypto securities, CBDCs, crypto assets, and crypto assets. And distributed finance.