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One of the hardest things for the Ostium model to overcome vs a CLOB/@hyperunit model is the passive LP overhead (lots of bad flow).
In the past 15 months if you were in their LP vault, you only earned 8% - barely beating RFR with a ton more risk.
Passive LPs also took a large haircut on 10/10 due to the LP serving as the liquidity of last resort when other venues thinned out liquidity amidst volatility.
The upside + potentially better UX for traders makes for downside on the passive LP, which in turns makes it harder to scale the liquidity on the platform.
Not unsolvable, but definitely a sticking point.

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