DeFi

Research Areas

  • Smart order routing
  • Arbitrage measurement and capture
  • Cross-chain arbitrage

Thesis

One of the most compelling aspects of the Ethereum “world computer” was that it created a mechanism for anyone to launch economic protocols in a permissionless and composable manner. The “permissionless” aspect allowed anyone to create smart contracts that could store and distribute tokens according to customizable logic. The “composable” aspect enabled smart contracts developed by one individual to be leveraged by smart contracts developed by another, without any approval process. Permissionless and composable financial applications have accrued hundreds of millions of dollars and constitute what is known as Decentralized Finance (DeFi) applications. DeFi often presents a complex decision problem to its human users. It is the goal of Semiotic Labs to create solutions that simplify and optimize the experience of interacting with DeFi.

Current work

The Odos protocol is our first DeFi product. Odos aggregates liquidity from Uniswap, SushiSwap, and many more decentralized exchanges (DEXs). Odos saves users money on swaps by using a proprietary algorithm to optimally split and route orders between the many possible DEXs. This delivers more savings for users versus swapping through a single DEX alone. The current version of Odos is focused on providing optimal trades to retail users. Our next step will be to provide API support to institutional partners. Try an Odos swap at odos.xyz.

We are also active in the field of arbitrage measurement. Our award-winning Western Gate project measures single-chain and cross-chain arbitrage; it can be found at westerngate.xyz. Western Gate has been useful to the Ethereum research community, e.g., Vitalik Buterin, founder of Ethereum, referenced Western Gate in this 2021 Endgame article. Western Gate has also been useful for Flashbots Research.

DeFi Team

Ahmet Ozcan, Ph.D.

CEO & Co-Founder

Yuri Papadin

COO

Tümay Tuzcu

Senior Software Development Engineer

Alex Norell

Senior DevOps Engineer

Matt Deible

Research Scientist

Justin Deible

Full Stack Developer

Articles

An Overview of Automatic Market Maker Mechanisms

This article explores the principles and mechanisms behind the many popular Automatic Market Maker designs currently used in production. While the mathematical details of these designs are fascinating in their own right, this article seeks to instead focus on graphical representations and high level concepts, allowing for a more approachable and exhaustive exploration of the space.

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