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Crypto centralized exchanges are rapidly pushing their businesses ahead.
And to reach there, they are all taking advantage of their largest Trump card: Distribution.
Case study number one.
Baibit announced Bayral on Sunday, a dex on Solana which is set to launch later this year. There is also a produce product (revived vault) and a token launchpad (reset launch) with Dex.
Bayerial will root liquidity from its CEX through a hybrid RFQ (request for quotes) + CLMM (focused liquidity market manufacturer), so onchain users can trade onchain with the liquidity depth of CEX.
My guess is that bybit users will also be able to use Byreal from the main CEX app.
Case study number two.
coincidence Announced A few days later, the direct integration of the base dex on its exchange business was set to roll out this week. Dex will also eventually be integrated from other chains.
This opens gas-less trading access for thousands of altcoins for millions of coinbase users (although they will still pay the general CEX trading fee).
It is an important tailwind for dex on the basis, that is, its largest one: aerodrome. Aero Token – Which earns revenue from dex trading fees – has pumped 52% at the price since the announcement.
This is not the first attempt of the coinbase that leads the onchain forward with the benefits of its distribution. CBBTC, its wrapped bitcoin product was bootstraped using the coinbase as the main distribution rail.
By integrating the borrowed markets of the base under the hood, CBBTC holders on the coinbase can easily borrow USDC against their bitcoin collateral without leaving the coinbase app.
Case study number three.
Binance and its extremely complex Alpha campaign, which has been going on since May.
There are dozens of “trading competitions” within Alpha that reward users with “Alpha Points”, which trade selected assets, which in turn will be entitled to you aircraft. Nevertheless, calling it a competition is misleading – most of these points are assigned on the basis of trading volumes, not the P&L criteria.
This is surprising until you realize that there is a double-romantic strategy to play here.
The first is to run to adopt the prong benns wallet. The alpha points are only eligible when a key trades using its key benten wallet. This has enabled the Benance to dominate the Crypto “Wallet Market Share”, as seen below.
There are two caviates here. For one, the activity is not organic.
Second, these “Benance Wallet” users are not so much because they are only “Benance CEX” users.
Traders still pay the Binance CEX trading fee, so the revenue capture is different from a Metamasa user who pays the fee for using its in-app trading features. It is probably misleading to call it a “wallet market share”.
Nevertheless, it has allowed the banns to adopt its wallet and potentially funnel users to adopt on a piece of infrastructure that they are themselves, which they can later decree.
The second part of the strategy behind the Binance Alpha is to increase its own onchain ecosystem on the BNB series.
Power The trading of these alpha tokens under the hood is pancakexwap, which has exploded in the volume since Alpha in May.
Source: Blockworks research
These different strategies give a clear indication: the onchain economy has come a long way since a few years ago.
Defi is now mature and safe that centralized institutions, which should follow regulatory requirements, can confidently integrate the defi infrastructure in their own obedient technology piles.
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