Variational has been arguing all night, but boiled down, it comes down to one thing: every trade you open there has the same counterparty.
That post by @0xLoris, which got over 20,000 views, put it pretty bluntly: on Omni, apart from the platform’s own official bot, outsiders can’t post quotes at all, and every trade is against OLP as the sole counterparty. He also said in his own reply that having a single counterparty can be an informed choice, but he’d be surprised if even one in ten users knew what they were getting into.
I don’t think the RFQ model itself is inherently bad—brokerage models have been around in traditional finance for decades. The problem is how it’s packaged. They’re waving the perpetual DEX banner while handing out points, with 32,293 accounts competing for 150,000 points every week. Most people think they’re trading against others in a decentralized order book, when in reality they’re betting against the market maker itself.
The official line after the Binance incident was pretty clever, too: users’ margin is on-chain, and OLP only uses its own money to hedge externally. Literally speaking, that’s true. But whether you can actually collect your gains depends on how sound OLP’s hedging operation is—and they haven’t said a word about that layer of risk.
Some people compare it to Citadel Connect. Fine—then let’s judge it by brokerage standards: counterparty risk, hedging venues, and who steps in if something goes wrong. Put it all out in the open. Don’t enjoy the narrative premium of a DEX while doing the work of a brokerage.
Those farming points should think it through for themselves. Know who’s on the other side before deciding how much leverage to use.
#Variational #PerpetualDEX
That post by @0xLoris, which got over 20,000 views, put it pretty bluntly: on Omni, apart from the platform’s own official bot, outsiders can’t post quotes at all, and every trade is against OLP as the sole counterparty. He also said in his own reply that having a single counterparty can be an informed choice, but he’d be surprised if even one in ten users knew what they were getting into.
I don’t think the RFQ model itself is inherently bad—brokerage models have been around in traditional finance for decades. The problem is how it’s packaged. They’re waving the perpetual DEX banner while handing out points, with 32,293 accounts competing for 150,000 points every week. Most people think they’re trading against others in a decentralized order book, when in reality they’re betting against the market maker itself.
The official line after the Binance incident was pretty clever, too: users’ margin is on-chain, and OLP only uses its own money to hedge externally. Literally speaking, that’s true. But whether you can actually collect your gains depends on how sound OLP’s hedging operation is—and they haven’t said a word about that layer of risk.
Some people compare it to Citadel Connect. Fine—then let’s judge it by brokerage standards: counterparty risk, hedging venues, and who steps in if something goes wrong. Put it all out in the open. Don’t enjoy the narrative premium of a DEX while doing the work of a brokerage.
Those farming points should think it through for themselves. Know who’s on the other side before deciding how much leverage to use.
#Variational #PerpetualDEX