Read on Twitter
1/7
This is what you want to see in an ecosystem.
Startups are pareto efficient.
In other words you can decide to be the best at "X", good at "A, B, C" and bad at everything else. https://twitter.com/SBF_Alameda/status/1385490916899573769
This is what you want to see in an ecosystem.
Startups are pareto efficient.
In other words you can decide to be the best at "X", good at "A, B, C" and bad at everything else. https://twitter.com/SBF_Alameda/status/1385490916899573769
2/7
It's why conglomerate businesses (like Google) struggle to compete against focused startups in an individual niche.
It's why conglomerate businesses (like Google) struggle to compete against focused startups in an individual niche.
3/7
What makes crypto interesting though is the network effect angle.
SerumSwap was out gunned by a focused, strong UI/UX competitor with great features.
But is that bad for $SRM?
No. It's the opposite.
What makes crypto interesting though is the network effect angle.
SerumSwap was out gunned by a focused, strong UI/UX competitor with great features.
But is that bad for $SRM?
No. It's the opposite.
4/7
$SRM's specialty is their CLOB liquidity book that lets projects on $SOL plug in to their liquidity.
SerumSwap actually used its own pools and didn't have CLOB integration.
@RaydiumProtocol does and so its actually even more beneficial to $SRM.
$SRM's specialty is their CLOB liquidity book that lets projects on $SOL plug in to their liquidity.
SerumSwap actually used its own pools and didn't have CLOB integration.
@RaydiumProtocol does and so its actually even more beneficial to $SRM.
5/7
Rather than continue on, divided user bases, and spend resources pointlessly competing, Serum spins down SerumSwap and lets Raydium gobble up that AUM and userbase.
Which actually drives back more value to $SRM while freeing up more resources.
Rather than continue on, divided user bases, and spend resources pointlessly competing, Serum spins down SerumSwap and lets Raydium gobble up that AUM and userbase.
Which actually drives back more value to $SRM while freeing up more resources.
6/7
Traditional startups are zero-sum. Someone loses for someone else to win.
But in crypto, if well designed, they can be vertically integrated non-zero sum outcomes.
Which means a rising tide lifts all ships.
Traditional startups are zero-sum. Someone loses for someone else to win.
But in crypto, if well designed, they can be vertically integrated non-zero sum outcomes.
Which means a rising tide lifts all ships.
7/7
If we design our protocols in ways they work together and focus on the component of the stack that they are the best at, then we can leverage the compounding value of multiple teams of experts to get an outsized success.
If we design our protocols in ways they work together and focus on the component of the stack that they are the best at, then we can leverage the compounding value of multiple teams of experts to get an outsized success.
