Get again to constructing what issues — your product.
Because the decentralized finance area matures, builders are starting to coalesce round customary items of infrastructure to energy their services and products. Examples embrace node administration instruments like Infura and Alchemy or onboarding requirements like Pockets Join. For a lot of groups making an attempt to convey their product to market, liquidity sourcing — or the place and the way your product exchanges asset X for asset Y — is changing into an more and more vital infrastructure stage determination for builders early within the product growth cycle.
Very like onboarding or node administration, liquidity sourcing will decide how accessible and the way scalable your product could be because it features reputation. In contrast to conventional shopper purposes, nonetheless, “scale” or “product-market match” isn’t some far-flung end-state in DeFi. Actually, we’ve seen it achieved in a comparatively quick timeframe for a lot of merchandise, the place simply 100 MAUs can convey a product into the highest tier of efficiency by way of quantity or whole worth locked.
Why does this matter within the context of liquidity sourcing? Because it seems, early determination paths which will appear straightforward for the time being can typically result in points with scalability and efficiency shortly thereafter. These points manifest themselves within the type of slippage, or the flexibility to swap asset X or Y for an inexpensive value at scale. When builders select a single liquidity supply (e.g., Kyber or Uniswap), they’re successfully handicapping their product’s means to scale effectively, and, extra importantly, they’re selecting to handle their product’s liquidity sourcing in-house in perpetuity.
In consequence, small groups are massively growing the scope of methods which are orthogonal to their core product expertise, which regularly results in wasted dash cycles spent resolving the liquidity sourcing points stemming from their unique infrastructure design alternative.
At 0x, we’ve witnessed this challenge play out again and again for groups constructing merchandise throughout DeFi, and that’s why we determined to create 0x API, a strong software that serves up aggregated decentralized trade liquidity in a single endpoint. By having knowledgeable workforce at 0x at all times fascinated about liquidity sourcing, efficiency enhancements, and developer expertise, 0x API helps builders by transferring from a state of managing liquidity to managed liquidity with 0x.
With managed liquidity, our workforce abstracts all of the complexity related to scaling your DeFi product from Day 1 by aggregating the best-in-class sources of liquidity and surfacing them via an easy but strong set of API endpoints. Moreover, we’re at all times including updates and options that not solely enhance the depth of liquidity you possibly can supply customers but in addition allow you to create enhanced person experiences as your product matures.
We imagine liquidity sourcing in DeFi ought to be analogous to accepting on-line funds in eCommerce. In essence, builders ought to select a easy API (like Stripe), combine it into their product, and get again to doing what they do greatest: constructing lovely, strong, and accessible monetary merchandise for the lots.