Wintermute Founder: The real problem in the industry is that exchanges concentrate power in brokerage, order matching, custody, and more

DeFiance Capital CEO Arthur Cheong posted on X this morning, stating that the product design and market structure of crypto derivatives (especially perpetual contracts) remain the biggest structural issues facing the industry. Without improvements, it will be difficult to support the industry's move towards sustainable growth.

Wintermute founder Evgeny Gaevoy responded by stating that traditional finance has long addressed these flaws, so the real issue is not the design of perpetual contracts, but rather the centralization and pseudo-decentralization of exchanges that combine execution brokers, central limit order books (CLOB), and custodial services.