FTX Exchange, Not Coinbase, Has Been DeFi’s Greatest Proponent

Key Takeaways

  • FTX’s parent company, Alameda Research, has made an investment in DeFi project mStable.
  • Alameda Research is one of the most active participants in Compound’s governance modules and helped Balancer fix an loophole in its token incentive.
  • FTX could become an important exchange for DeFi liquidity in spot and futures markets

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As various market participants throughout the crypto space attempt to ride the coattails of DeFi, few have played the same role as derivatives exchange FTX

Though Coinbase has helped prop up prices, the team behind the Hong Kong-based exchange have pointed out critical bugs and strategic investments to help DeFi flourish.

FTX Adopts Innovation and DeFi

As DeFi gained steam through 2020, several exchanges took notice and have tried to capture some of this hype. They promoted simple token listings and offered traders high leverage vehicles to double down on the frenzy.

Though quick, these rollouts were far from innovative. 

Long before DeFi picked up traction, FTX developed a reputation for its quick rollouts and innovative products.

These developments included unique tokens with built-in leverage, adding oil derivatives shortly after the commodity hit went negative, and creating a social platform where traders could share and monetize their strategies. FTX has actively adapted to one of the most chaotic markets in history.

The FTX’s entrance into the DeFi space has been no less innovative.

Not only has the exchange’s parent company, Alameda Researchinvested in mStable, a stable asset swapping protocol, but the company and its CEO, Sam Bankman-Fried, are also active participants in the DeFi ecosystem.

For example, Alameda has proposed and voted on several Compound governance proposals. Alameda also played a crucial role in…

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