0xDQ
0xDQ
UNI-6.73%
raising fees? someone remind me the last time a CEX raised trading fees to beat their competitor? never worked. never happens. what does work in practice? incentives for active traders > so that MMs print >> so that liquidity is deep >>> so that the venue becomes preferred for trading flows Aero skipping the trader incentives as many terminals integrating Aero already doing it. instead, Aero going straight to incentivizing liquidity so they get max flows from smart order routers so that the flywheel is reinforced.
Ariah Klages-Mundt
Ariah Klages-Mundt
Tldr: - Uniswap has some positive unit economics, and you could imagine raising fees and earning net revenue might work - Aerodrome has negative unit economics and already has max 100% fees (can’t raise further). They would need to make profitable pools, but can they?
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