TradeFi and LP

I honestly believe in LP. I think it’s a great way to provide liquidity on illiquid assets. I came from finance background and worked in second market (yes Barry’s second market). Now in tech.

I’m having trouble understanding why not move more illiquid assets to LP. When I was in second market, these spreads were huge (but it was also during 2008 crisis).

I wonder why Barry doesn’t start a second market using DeFi. What am I missing that could be a drawback to using LP within tradFi?
(I also know banks are involved in defi, on permissioned side of things)

Edit: title should be TradFi, traditional finance.

View Source

1 thought on “TradeFi and LP”

  1. The problem with LP is the IL that comes with it but with new AMMs like the one on the Alliance Block DEX, one can be rest assured IL is a thing of the past.

    Reply

Leave a Comment