When I dropped my Paradex deep dive last month, I laid out why their first-principles approach could redefine DeFi exchanges. Recently, after the October 10th crypto massacre, I caught up with Paradex founder Anand to discuss how they weathered the storm.
In this short update, I want to zero in on an under-discussed aspect that Anand and I delved into during our conversation: Paradex’s differentiated risk management, particularly socialized losses (SL) versus auto-deleveraging (ADL).
Before digging into that, I want to give a quick update on my Paradex thesis: my main original concern with Paradex was cracking distribution in an incredibly crowded and competitive vertical. I knew the tech was good and the team was based but was still concerned about distribution. Recent data would suggest that they are beginning to crack distribution and get shots on goal.
These are a few da
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