Wintermute Elbows Into Crowded DEX Market
Bebop Hopes to Win Share With No Slippage Feature
By: Aleksandar Gilbert •Byte
Bebop, a decentralized exchange built by crypto market maker Wintermute, launched Tuesday on the Polygon blockchain with an old-fashioned approach to an issue that has plagued DeFi for two years — delivering assets at quoted prices.
Yet the venture enters a crowded space with dozens of players, several of which already process hundreds of millions of dollars in daily trading volume. Uniswap dominates the marketplace with an estimated 70% share.
Nevertheless, the team that built Bebop hopes a pair of unique features will separate it from the crowd.
Among other things, Bebop promises zero-slippage trades. In layman’s terms, that means the price quoted is the price users pay.
Markets move fast, and faster still in crypto. In the time between someone agreeing to a trade and the trade’s execution, the price of the assets in question often change.
“DeFi summer … it was all driven by [automated market makers] and by a very different way of providing liquidity, and that’s why slippage became such a thing in DeFi specifically,” Katia Banina, Bebop’s head of product, told The Defiant. With Bebop, “the private market maker will provide a quote, and they will stand by that quote. … That’s the model that exists in TradFi.”
Bebop will also allow users to trade several tokens for one, or vice versa, in a single trade, thereby saving on the hefty fees that accompany each individual transaction.
Wintermute chose Polygon to launch Bebop due to its “low fees, high speed and sustainable proof-of-stake model, which has recently attracted integrations with the likes of Robinhood, Reddit, Uniswap and Aave,” according to a news release.
Wintermute founder Evgeny Gaevoy took to social media over the summer to explain the need for a new decentralized exchange and preemptively answer any questions about the effort.
“Does Bebop belong to Wintermute? No,” he wrote. “Bebop is incubated within Wintermute, but the goal is for it to become fully decentralized with Wintermute having a say in governance, but nowhere near having a majority control.”
Bebop will expand to other blockchains in the future, according to a news release announcing its launch, but Banina declined to say which.
“When we talk about adoption in DeFi, the next milestone is … delivering the experience of CeFi, really [when] users don’t need to think about what chain this token is on,” she said. “We really think about Bebop from the user experience perspective and what it is for them, rather than, ‘oh, what’s the next cool techie thing … we’re going to geek out on.’”