In preparation for the meeting with GnosisDAO I did some writing about the difference between IDOs and DEX:
IDO:
- on time event on a limited timeframe
- projects do it once in a lifetime
- it’s not price sensitive for the IDO project
- investors have to use the IDO platform chosen by the project, there is no choice for them
- some investors do it once in a lifetime
- reputation is key for trust because it’s a one-time event
- different IDO projects have different needs
- service & consulting surrounding IDO can be a moat
- fair price finding is key
- ring trades are nice, but not a unique selling point
- deploy a new tailored contract for every IDO is feasible
- heavy and diverse regulation for investment in different jurisdictions
DEX (Ring-trade/Batched DEX like GP V1):
- ring trade/batching of GP is unique selling point for low liquidity coins and fair price
- liquidity leads to traffic (valid for all DEX)
- liquidity has to stay on the protocol, upgrading is difficult and needs coordination with all liquidity provider users
- trading is price sensitive
- reputation/trust is built with ever trade/interaction
- diverse users: arbitrage, bots, traders, investors, liquidity providers, IDO projects
- many other venues to trade coins
What do you think?