Good Execution is Onchain, Too There’s a dominant belief that the best execution happens offchain — on Centralized Exchanges (CEXes) In reality, you can often get better prices onchain. Between growing liquidity on DEX venues and onchain activity often lagging CEX flows, here’s how we get the best execution for Straddle: 1/ Onchain Lags CEXes Historically, CEX venues have been the fastest to respond to price changes due to significant concentration of high frequency traders and market makers. For these market participants, CEXes are attractive due to their responsive APIs, leverage multipliers, and other such features In contrast, onchain prices on networks such as Ethereum are slower to move – if just because of the network’s 10 second blocktime. While L2s and other L1s have significant faster blocktimes, they suffer from a lack of liquidity 2/ Next Generation DEXes Onchain execution is also getting increasingly attractive thanks to next generation DEXes, like @AerodromeFi. Between its concentrated liquidity pools and novel incentives flywheel, it has become a leading venue for swapping not just smaller altcoins, but also majors, such as ETH In fact, the >0.1% slippage incurred when buying or selling 100 ETH through Aerodrome is now lower than the taker fee on many leading exchanges, assuming a monthly trading volume of less than $5m. For accounts with monthly volume in the 8 or 9 figures, taker fees only just meet onchain slippage 3/ Capitalizing on Cross-Chain Inefficiencies For the individual user without an economy of scale, it’s difficult to capitalize on these inefficiencies. However, if a party already has assets across multiple chains and is transacting between them anyway, it’s possible to obtain execution far more favorable than on CEXes — sometimes even with positive slippage For @TheoNetwork_, capitalizing on these inefficiencies is made possible by an onchain stablecoin balance sheet held across execution environments. And since capturing these inefficiencies is secondary to Straddle's profitability, Theo is able to capture value that professional market makers may otherwise leave on the table

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