Andre Cronje is passionate about "capital efficiency" and has launched the new project Deriswap to make liquidity more flexible.

In the world of decentralized exchanges, the popularity of DeFi (Decentralized Finance) has brought significant growth this year, with more people willing to invest their funds in the DeFi space. Despite the Total Value Locked (TVL) in DeFi surpassing $14 billion, there are still issues with "Capital Efficiency." In simple terms, when a bank holds a large amount of deposits from customers, but the volume of lending activities used by the bank for profit is much smaller than the total amount of funds, many funds within the bank remain idle, leading to low capital efficiency issues.

Andre Enhances Capital Efficiency, Aiming to Solve Liquidity Fragmentation

Andre Cronje, in a blog post published on the 23rd, expressed his recent fascination with "capital efficiency." He mentioned that current liquidity is very fragmented, where one must choose between decentralized exchanges like Uniswap, SushiSwap, Bancor, options platforms like Deribit, Hegic, Opyn, Primitive, or lending platforms like Aave, Compound, DyDx.

Andre Cronje mentioned that his new project Deriswap is currently undergoing smart contract audits. This platform combines decentralized exchanges, options, and lending, all in a single smart contract with capital efficiency, allowing any two assets to form a trading pair.

Can Liquidity Be Routed to Multiple Products?

Andre Cronje listed several things Deriswap can do in a brief blog post, including decentralized exchanges, oracles, options, futures, lending, and secondary markets. He used ETH-BTC as an example:

Decentralized Exchanges

This part is straightforward, similar to classic decentralized exchanges like Uniswap, where liquidity providers earn transaction fees, and the automated market-making formula follows the pattern of x * y = k.

Oracles

It has a TWAP (Time-Weighted Average Price) oracle that updates every thirty minutes.

Options Integrated with Decentralized Exchanges

The Black-Scholes Model will be used to price options. These will be American-style options that can be settled at any time.

Interestingly, options will be integrated with decentralized exchanges, and options trading will be based on the price volatility of the exchange pair, with transaction fees hedging against volatility.

Furthermore, within this framework, there are also futures products.

Lending

With a futures market, there will naturally be a demand for lending to provide loans for those participating in the futures market.

Secondary Markets

Interestingly, Andre Cronje will tokenize lending, futures, and options transactions into NFTs (Non-Fungible Tokens) to create a secondary market for trading.

Success Yet to Be Verified

In this latest blog post, Andre Cronje's description remains concise. Nonetheless, this concept indeed addresses a problem that DeFi currently needs to overcome. The gap between liquidity and trading volume on Uniswap has shown an excess of liquidity supply and too much idle capital. Perhaps, when Deriswap officially launches, we may witness another wave of DeFi trends.

Beware of Scams

Despite Andre Cronje just announcing a new DeFi project, scammers have already taken advantage of DeFi enthusiasts' "mindless rush" behavior by injecting fake tokens into liquidity pools on Uniswap to deceive and gain funds.

Well-known Twitter user DegenSpartan mentioned that scammers managed to deceive 90 ETH within just 15 minutes. The Block's Research Director Larry Cermak also stated that current scammers target Andre Cronje's posts and set up scams immediately.

DeFi investors should make rational judgments.