Why make it decentralized?

Here are some financial reasons we decided to use a blockchain (Ethereum) as the settlement layer for InfinityPools as opposed to a more performant centralized venue:

1. By codifying the InfinityPools mechanism in smart contracts, desired outcomes are enforced. This enables a wide variety of benefits including the ability to be non custodial and eliminating counterparty risk for cryptocurrency native assets or credit risk for tokenized "real world" assets.

2. Blockchains are also fantastic coordination systems that allow exchanges to settle transactions 24/7 in a verifiable way. This means that trades can settle almost instantly rather than in the usual T+2 way and without some of the increased operational costs that are usually associated with it.

3. Finally, blockchains also allow for increased composability of protocols and assets. The InfinityPools benefits listed above make for a strong foundation upon which other teams can build innovative products.