Logan Jastremski Podcast - Bluefin: Sui’s Breakout app? - Revelo Intel

Logan Jastremski Podcast – Bluefin: Sui’s Breakout app?

In this episode of Logan Jastremski Podcast which took place on February 23rd, 2023, Logan, Rabeel and Ahmad discuss Bluefin, its features, future loans, and SUI. Read our notes below to learn more.

 Background

Building a Trading Product

  • Rabeel says that the goal is to enhance the on-chain user experience for trading, which has been lacking but is improving. The focus is on creating a competitive user experience similar to Binance, emphasizing high throughput and account abstraction. It is important to optimize both retail and institutional user experiences for liquidity and tight spreads. They have chosen to build on SUI due to its non-custodial nature and potential for success in the evolving space.

User Base Segmentation

  • Logan emphasizes building products tailored to specific segments rather than aiming for a broad audience. He acknowledges skepticism towards decentralized trading platforms compared to centralized ones in terms of speed and efficiency.
  • Rabeel highlights the advantages of being on-chain, such as non-custodial assets providing security against incidents like those seen with FTX.
  • He adds that they balance non-custodial features with off-chain matching algorithms for practicality. 
  • Ahmad says that they are constantly exploring ways to bring more processes on-chain while maintaining efficiency.

Building Resilience During Challenges

  • Logan says that the industry setback disproportionately affected non-EVM ecosystems.
  • Ahmad says that the journey from inception to building a high-volume product involved facing challenges and making rash decisions initially. They started in late 2020 during a bull run and faced pressure to launch quickly, leading to initial product quality issues.
  • He adds that they endured a bear market period with quiet years, focusing on building resilience and higher-quality products.
  • Rabeel emphasizes working with good people to navigate tough times. He adds that they maintained a mindset of persistence and not giving up as the key to success.

Choosing Ecosystem for Development

  • Ahmad says that they initially started with an EVM-based exchange but shifted due to high gas costs affecting user acquisition.
  • He adds that network challenges, like during the Arbitrum airdrop, caused trade reverting. Experienced teams anticipated issues and had mechanisms to queue transactions for later processing, improving user experience. Custom layer-2 options were explored for cost-effectiveness but raised concerns about security and composability.
  • Ahmad says that they considered Solana, Sui, and others for benchmarking throughput and speed metrics aligning with their vision. They engaged with the Mysten Labs team and revealed strong conviction in their vision through detailed technical discussions.
  • He adds that they were inspired by Mysten Labs’ ZK login feature aligning with their goal of enhancing user experience in web3 applications.

What is to Come in the Ecosystem

  • Rabeel says that they are obsessed with design and user experience. He put great emphasis on a seamless onboarding experience.
  • He adds that they have future plans for easy platform access via Google account and ZK login integration.
  • Rabeel says that ZK login aims to simplify securing private keys by linking a Google account to a web3 account. One-way mapping between accounts using cryptographic proofs. They are transitioning from traditional private key ownership to a more seamless Google or Facebook login approach.

Enhancing User Onboarding with ZK Login

  • Ahmad says that they are embedding ZK login within the wallet for easier access. The future goal is to allow new users to start trading using Google login without prior knowledge of web3.
  • He adds that they work on non-custodial design with all balances and trades on-chain. Orders are constructed by specifying asset, quantity, and price, signed using a private key. Matching engine responsible for order matching on-chain without user trust. Market makers constantly adjust orders to enhance liquidity but face challenges in decentralized systems.

Liquidity Provision and Order Book Management

  • Ahmad says that they put emphasis on efficient market-making to enhance liquidity and transaction throughput. There are considerations for maintaining order book functionality even if the matching engine goes down. The underlying architecture built on a non-custodial premise with a focus on user experience and liquidity depth.
  • Rabeel says that there are discussions on scalability issues related to publishing all quotes on-chain due to limited throughput capacities.
  • Ahmad says that market makers update quotes in milliseconds, affecting on-chain book tightness. Consensus speed influences tighter spreads on-chain, aiming for lower latency. The object data model enhances consensus efficiency by distinguishing object ownership types.

Improving User Experience

  • Rabeel says that they put emphasis on faster processing times for trades to enhance user experience. Simplifying wallet components and enabling easy asset deposits are key priorities for the next two quarters. They are targeting a user-friendly platform comparable to major exchanges like Binance and Coinbase by next quarter.

Product Offerings and Expansion

  • Rabeel says that their current focus is on perpetual futures, with plans to expand to other derivatives in the future. Initial markets include $BTC and $ETH, aiming to add at least 100 more markets by year-end.

Technical Development and Scaling

  • Ahmad says that they are addressing technical debt and rearchitecting systems for market makers’ needs and increased volumes. Redesigning architecture to support scalability, utilizing Move programming language for improved functionality.
  • He adds that they are building a scalable product over the next one to two years, focusing on handling anticipated growth effectively.

User Metrics and Market Reach

  • Rabeel says that there are approximately 5,000 weekly active users with significant traction from Korea and broader Asian regions.

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Show Information

  • Medium: Youtube
  • Show: Logan Jastremski Podcast
  • Show Title: Sui’s Breakout application Bluefin with over $4 Billion in monthly trading volumes | EP #118
  • Show Date: February 23, 2023