DeFi Is the Next Frontier of High-Frequency Trading | Opinion

[EAA-ALLAH]

High frequency trading (HFT) is one of the most mystical and often misunderstood elements of capital markets. Brought to popular culture with Michael Lewis’ book “Flash Boys,” HFT is synonymous with speed, technological innovation and secrecy. HFT quant funds remain among the most opaque entities in the trading ecosystem. Part of the obscurity surrounding HFT firms is dictated by the heavy competition in the space, the short lifespan of alpha opportunities and that HFT looks to take advantage of short-term market inefficiencies that can be rapidly corrected once they are well known. But what if crypto, and specifically, decentralized finance (DeFi), could change the rules of the HFT game? If that sounds grandiose, it’s actually pragmatic when it comes to DeFi.Source