Confidentia: DFlow is Changing the Flow
Cōnfīdentia (n.): Assurance, Confidence, Boldness
There is no network like the Pyth network. Pyth is unlocking the best data for equities, commodities, FX, and crypto to empower pioneers across the DeFi space. The Confidentia is your weekly tidbit of alpha from these builders — but that’s a secret between us, OK?
This week, we’re joined by the DFlow team, a decentralized marketplace for order flow.
Do you hear the tides changing? Open, fair, decentralized, and high-resolution order flow markets are here. A new DEX, Tsunami, has also shifted the flow. The DFlow team is here to help us ride these new waves.
What is DFlow?
DFlow is a decentralized marketplace for order flow. Order flow markets are markets where participants can buy/sell order flow. The existence of this type of marketplace has tons of great downstream effects for the health of the crypto ecosystem.
For example, this is infrastructure that makes it possible for applications like wallets to offer their users the best trading experience, while also monetizing that order flow. It’s also an implementation of payment-for-order-flow but done in a way that is focused on increasing the transparency and health of the ecosystem.
DFlow x Pyth
DFlow leverages Pyth’s price feeds to algorithmically enforce fairness in the markets. More specifically, DFlow uses a decentralized price oracle (currently, Pyth) to mimic the National Best Bid and Offer (NBBO) in equities. DFlow programmatically requires market makers to fill orders at prices at or better than the oracle price.
A Tsunami is Coming
Decentralized markets are really capital inefficient for traders. A lot of people choose to go swap at AMMs but don’t realize how terrible the price execution is. In addition to terrible price execution, traders have to pay insanely high fees at AMMs, and wallets/other apps charge even higher fees for the convenience of using their front-ends.
DFlow is offering a solution for trading that is always zero-fee and best-execution. Wallets and applications can integrate with us in order to offer their users this top-notch trading experience while monetizing their order flow.
You’ll want to check out Tsunami, the first DFlow-powered exchange on Solana. It’s built using DFlow liquidity and powered by DFlow market makers.
We’re absolutely stoked to have it released on mainnet. Always moving towards the next goalpost, and there will be a couple massive announcements before the end of the year!