Paradex co-founder Fiddy: Zero fees do not mean zero revenue, but rather a restructuring of the exchange business model
According to ChainCatcher, in a technology and crypto podcast, Fiddy, co-founder of the high-performance decentralized exchange Paradex, stated that DEX fees should no longer be proportional to trading volume. Instead, fees should depend on the positive or negative impact brought to the liquidity pool. Order flow similar to Robinhood is executed within a relatively closed ecosystem, which is more like a web2 model. However, in the DeFi sector, there is no such permissioned "order flow"; rather, it is more like using technical means to directly "permit" trading orders. This also means that DEX products must develop new business models beyond just transaction fees.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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