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@variational_io just dropped a detailed article about how CLOBs are wrong for RWAs and how it can be solved
>>-- here's the very short summary based on Variational's article
for coming years RWAs gonna play a vital role in crypto.
TradFi already does $30T yearly in derivatives on these assets. On-chain has captured less than 0.01% of it.
Problem with CLOBs (Hyperliquid, Lighter etc)
- Every new RWA market has to build liquidity from zero using only crypto money.
- But TradFi already has massive existing liquidity from big dealers
For example:
- Depth: CME $19M || Hyperliquid only $152K (<1%)
- Slippage on $1M trade: CME 0.79 bp || Hyperliquid 15.4 bp (20x worse)
- During big news: Hyperliquid slippage hit 160 bp (200x worse)
another DEX Lighter Consistantly paying $250K/week in subsidies just to rent liquidity in oil & gold
All that proving is CLOBs are a mistake for RWAs
>> Solution
But Variational comes up with a solution what is Brokerage/RFQ model
- Brokerage donβt make liquidity itself
- It just aggregate liquidity from existing TradFi dealers
- it either internalize offsetting orders or route them to best venue
- revenue comes from spread
>> Variational advantages
- Direct connection to TradFi liquidity
- 0% trading fees rebates rewards
- 200 RWAs assets
- Up to 50x leverage, 24/7 trading ( No deleveraging problem unlike CEXs)
Launch Plan (3 Phases):
Phase 1 (May 2026):
First RWA perps --> US500, Oil, Gold, Silver etc.
Phase 2 (~1 month later):
23/5 CFDs, hundreds of single stocks, FX, more commodities
Phase 3 (Q3 2026 )
ull multi-dealer system, Asian markets (Korea, Japan, HK), prediction markets, etc
Variational Summer is gonna be huge
gVar