Can Gurel

Can Gurel


Delphi Digital


I read, think, and write about blockchain infrastructure: scalability, UX, and privacy.

if I understand ur q correctly...I'm not sure to what extent GSR does market-making for Rune tbh. any particular reason ur interested in this?

Report snippet

"If a filler is too greedy, they risk losing the order to another filler willing to take a smaller profit."

curious if there is any discussion on fulfiller coordination in solving process in UniX.

think this will be important to maintain long-term censorship resistance.

to elaborate...

fulfillers aggregating their liquidity to collectively fill an order with each earning their fair share of fees vs. an every fulfiller for himself type of competition (only one gets to fulfill and others lose out in competition)

the latter is more vulnerable to EOF and thereby centralization where in the worst case there are 2-3 giant fulfillers that fulfill all orders thus they can gauge prices.

Report snippet

"The current UI (a simple 1-to-many chat with text messages and images) doesn’t seem suitable for hundreds if not thousands of people per room"

good point. on-chain part is the toughest to change. also agree that UI has been getting better / can be changed rather easily.

this will be based on the specific application implementation.

  • users may set a price and an expiry date such that their intent gets invalidated if no one fulfills it by that time
  • there may be apps where all solutions are somehow collected and ranked and the best one is picked based on ranking criteria (e.g. could be price, timing or a combination etc.) This is how CoWSwap works.
  • there may be apps where users sign a decay function such that the price they want starts at a higher price than what's offered in current market condition and drops over time. in this case, u may not need to rank solvers as they will compete to be the first to settle. This implementation is discussed in UniswapX paper.

in any case, nodes in the network (not just solvers but also gossip nodes etc.) are likely to rate and police each other, and will maintain local trust graphs of whom to trust, whom to communicate with etc.

Report snippet

"In certain cases, solvers may want to coordinate with each other by forming a consensus protocol and/or running MPC among each other."

there is an interesting dynamic here, which is analogous to mining in some ways.

solvers race against each other to be the first to settle intents bc the solution that gets settled first invalidates all other work-in-progress solutions.

(similar to how the first solution to PoW puzzle invalidates others. every miner moves on to find the solution to the next block as soon as a solution is found.)

also, only the solver(s) that settle a solution first get compensated for their efforts (i.e. collect fees on-chain).

Other solvers, who are late end up doing a bunch of work for free.

(once again this is analogous to a a solo PoW miner failing to find a full solution on it's own)

To reduce this risk, solvers are likely to work with each other to solve intents, and earn their fair share instead of one of them winning the whole pie and others getting none.

Now, how exactly that may play out is hard to tell. But we have a good solution for coordination; which is consensus protocols.

A few solver for example can form a "Solver DAOs" and run a consensus protocols (could be PoS, PoA, a hybrid or other models) to coordinate.

These consensus protocols won't run complex computations (actual solving will still be done off-chain on the client side) but may be used to determine whose turn it is to publish a solution for example.

Swap X asset to stable -> bridge stable -> Swap stable to Y asset can always be regarded as a competitive alternative path to THORChain. This path will indeed become more efficient as CCTP (Circle's cross chain transfer protocol) adoption rises. CCTP will bridge USDC w/o fees, and w/o needing LPs. This may put existing bridge applications in existential crisis but not THORChain imo.

THORChain has fairly evolved as a DEX and has a large scope of services, main ones being

  • swaps
  • savings (single sided yield)
  • soon lending

Needless to mention Bitcoin angle where THORChain has no competition. (except smaller THORChain forks and similar projects like Zeta, Chainflip, Maya which are overall net positive imo; they validate the overall design while adding their flavors into it)

Can Gurel has not authored any research reports yet.