The 1010 Exploit and other broken market structures

Lucas & Hersch from World Markets joins us to break down why crypto trading infrastructure is fundamentally broken: how fully onchain order books, unified risk engines, and capital-efficient design could reshape perps trading.

Chapters:
0:02 Intro & guest background
1:28 From exchanges to hedge funds
3:26 Monad vs MegaETH decision
5:00 Why L2s beat L1s for trading
6:49 DeFi security flaws explained
10:29 How onchain traders find alpha
18:01 What World Markets actually is
21:59 1010 Crash explained
28:13 Why centralized exchanges fail
47:48 The 50% basis trade example
53:00 Hersch finally gets to speak

The Gwart Show is sponsored by Ellipsis Labs. Backed by Paradigm, Electric Capital and Haun Ventures. The founders, Eugene and Jerry, have experienced Citadel Jane Street in the Solana Core team since launching their order book DEX, Phoenix. They’ve done over $80 billion in trading volume by making onchain order books competitive with centralized exchanges.

Ellipsis is hiring for New York-based engineers. Work with a small focus team who are results driven, collaborative, and use a modern stack. If you’re an engineer who wants to work on infrastructure that’s already proven itself in the market, go to ⁠⁠ellipsislabs.xyz⁠⁠.

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