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So this is basically a centralized broker just like we have in traditional finance? I guess one difference is that users still have DMA since exchange accounts

So this is basically a centralized broker just like we have in traditional finance? I guess one difference is that users still have DMA since exchange accounts are just linked. > This allows us to earn revenue by making our own markets and keeping some of the difference between prices offered by buyers and sellers. In other words, you route orders and users get worse prices because you MM yourself, also like traditional finance. It's a good business model for you but as a user I'd rather see transparency and a move towards DeFi where everyone is guaranteed the same execution.

cadillion 5y ago
To a large extent, yes. We like to say that cryptocurrency is like international waters: if you have your own boat and some know-how you can easily get out there and do whatever you like. But not everyone knows how to sail! There's still a lot of need for barges and cruise liners to help average people get from port to port. For us, we want to help people who don't really understand private and public keys to get out and take advantage of the new paradigms being built in cryptocurrency. And for people who do understand these things, we're happy to be a gateway to take advantage of the centralized infrastructure and put everything back in your control on your own hardware wallet. As for being a market maker, our goal is to guarantee best execution anywhere. This requires some fancy footwork on our end, but even after we take the spread, we want to offer you a price as good or better than you can find on any other exchange, net of fees. And that includes DEXs! We will make all these prices transparent so you can see the Hedgehog price as well as whatever Uniswap, 1Inch, or Matic are offering.
callamdelaney 5y ago
DeFi is flawed though isn't it? People are just front running the execution of DeFi orders to make money.
- cadillion 5y ago
  The same can be said of centralized finance! Front-running is illegal and occasionally gets punished, but it still occurs all the time. No system is perfect, and one should look at the trade-offs one incurs by operating under any given set of rules. We believe that a more diverse ecosystem contributes to a stronger financial system and a more resilient society, whether centralized or decentralized.
- centralboy 5y ago
  It's more complex than that. There is front-running and back-running in DeFi, but it applies only to certain types of transactions. There also exist solutions to prevent most of it. Regardless of front-running, you still get transparency. It's one thing to be front-run and know about it, but another thing to submit your orders to a black box where a company extracts arbitrary value from them and you don't know what goes on inside.
  - cadillion 5y ago
    Very true, completely agreed!
- aqme28 5y ago
  Most traders don't need to worry about the fractions of a percent that can be taken by frontrunners.
vmception 5y ago
It’s about time there are brokers in the crypto space. Almost all the exchanges are copy and paste jobs provided by an exchange vendor, and they all have code to be brokers and route to external order books, all via REST and FIX but just choose not to.

cadillion 5y ago

To a large extent, yes. We like to say that cryptocurrency is like international waters: if you have your own boat and some know-how you can easily get out there and do whatever you like. But not everyone knows how to sail! There's still a lot of need for barges and cruise liners to help average people get from port to port. For us, we want to help people who don't really understand private and public keys to get out and take advantage of the new paradigms being built in cryptocurrency. And for people who do understand these things, we're happy to be a gateway to take advantage of the centralized infrastructure and put everything back in your control on your own hardware wallet. As for being a market maker, our goal is to guarantee best execution anywhere. This requires some fancy footwork on our end, but even after we take the spread, we want to offer you a price as good or better than you can find on any other exchange, net of fees. And that includes DEXs! We will make all these prices transparent so you can see the Hedgehog price as well as whatever Uniswap, 1Inch, or Matic are offering.

callamdelaney 5y ago

DeFi is flawed though isn't it? People are just front running the execution of DeFi orders to make money.

cadillion 5y ago
The same can be said of centralized finance! Front-running is illegal and occasionally gets punished, but it still occurs all the time. No system is perfect, and one should look at the trade-offs one incurs by operating under any given set of rules. We believe that a more diverse ecosystem contributes to a stronger financial system and a more resilient society, whether centralized or decentralized.
centralboy 5y ago
It's more complex than that. There is front-running and back-running in DeFi, but it applies only to certain types of transactions. There also exist solutions to prevent most of it. Regardless of front-running, you still get transparency. It's one thing to be front-run and know about it, but another thing to submit your orders to a black box where a company extracts arbitrary value from them and you don't know what goes on inside.
- cadillion 5y ago
  Very true, completely agreed!
aqme28 5y ago
Most traders don't need to worry about the fractions of a percent that can be taken by frontrunners.

vmception 5y ago

It’s about time there are brokers in the crypto space. Almost all the exchanges are copy and paste jobs provided by an exchange vendor, and they all have code to be brokers and route to external order books, all via REST and FIX but just choose not to.