DEUS is set for a massive market opportunity
DeFIX (decentralized financial information exchange protocol) is an advanced clearinghouse of peer-to-peer derivatives that is built on top of smart contract blockchains and Muon to enable market makers, traders, and third-party exchanges to interact with each other in a permissionless manner.
In this article, we will outline how DEUS ecosystem participants are positioned to take advantage of the massive TradFi markets in addition to the fast-growing DeFi markets. Via DeFIX, revenue opportunities will be presented to market makers and veDEUS NFT holders. Read more about veDEUS and DeFIX.
DEUS’s massive total addressable market
The derivatives market is the largest segment of the financial market, with over $1 quadrillion in total notional derivatives outstanding. DEUS is positioned to take advantage of many subsegments within the derivatives markets, however, its strongest positioning is within the OTC derivatives segment of the market, which accounts for roughly 84% of the derivatives market.
The rapid growth in TradFi order flow revenue and how DEUS is positioned to leverage & democratize the opportunity
The DeFIX clearinghouse will provide a permissionless and free market to all participants. Within traditional finance (TradFi), payment for order flow (PFOF) has become an increasingly valuable income stream for brokers such as Robinhood. In short, PFOF is the payment that a market maker will make to a broker, so they can clear trades made via the broker. When market makers have access to order flow, it enables them to clear trades and charge their own bid/ask spread.
DEUS aims to democratize this multi-billion dollar industry by enabling any market maker to have low-cost access to all on-chain requests for quotations (RFQs). DEUS removes the need for PFOF and lowers the barrier to entry for smaller market makers, as well as helping established market makers cut costs. Additionally, when you make order flow accessible to the free market, you inherently increase the competitiveness of the market, which translates into a more liquid market when compared to DEUS’s counterparts that choose to restrict order flow to gain PFOF revenue.
In the diagram below, you can see the quarterly PFOF revenue of other large TradFi exchanges over an 8-year period.
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