Trying to move significant volume on-chain is a nightmare. You check three different aggregators, and the price impact is still like 2-3%. It’s clearly a liquidity fragmentation problem across different chains. There is a relevant analysis on the data architecture of scalable DEXs regarding cross-chain state: https://coinjournal.net/news/the-data-architecture-of-scalable-dexs-solving-for-liquidity-latency-and-mev-protection/. It focuses on solving for liquidity by unifying the data layers. Unless the architecture evolves to treat liquidity as a shared resource rather than isolated pools, whales are going to keep sticking to OTC desks or centralized exchanges.
Trying to move significant volume on-chain is a nightmare. You check three different aggregators, and the price impact is still like 2-3%. It’s clearly a liquidity fragmentation problem across different chains. There is a relevant analysis on the data architecture of scalable DEXs regarding cross-chain state: https://coinjournal.net/news/the-data-architecture-of-scalable-dexs-solving-for-liquidity-latency-and-mev-protection/. It focuses on solving for liquidity by unifying the data layers. Unless the architecture evolves to treat liquidity as a shared resource rather than isolated pools, whales are going to keep sticking to OTC desks or centralized exchanges.