(Flirting With Models S7E18) Bringing OTC On-Chain and the VariationalOMNI Perp Dex
30 Jul 2025Corey Hoffstein speaks with Edward Yu about his journey from the early days of crypto OTC markets to co-founding Variational. Edward shares insights into the evolution of crypto trading, the challenges of pricing in OTC markets, and the importance of understanding client relationships. They discuss Variational’s mission to bring the OTC derivatives market on-chain by introducing programmable primitives. Edward explains OMNI, a decentralized perpetual futures exchange, and its unique RFQ structure designed to provide deep liquidity. The conversation also covers risk management, competition among crypto exchanges, and the balance between decentralization and user experience in protocol design.
Key Points
- Edward Yu’s experience in the early crypto OTC markets highlighted the importance of understanding client needs and the evolution of market structures from manual processes to more sophisticated, electronic systems.
- Variational aims to revolutionize the OTC derivatives market by creating a protocol that allows for customizable, peer-to-peer derivative contracts, thereby improving efficiency, reducing manual processes, and allowing for more flexible financial products.
- Omni, built on the Variational protocol, uses a unique RFQ system with a single liquidity provider, OLP, to offer deep liquidity and tight spreads, enhancing user experience while capturing more revenue per trade compared to traditional perp exchanges.