According to CoinDesk, Diogenes Casares, a crypto activist investor known for targeting underperforming DAOs, is now building his own company, Stream Protocol. The trading platform is designed to become a decentralized perpetual swaps exchange. Casares, who is the son of Xapo founder Wences Casares, has previously made millions through his hedge fund, Patagon Management, by pushing startups to return money to investors, such as the crypto governance project Aragon.
Stream Protocol is described as a 'decentralized market maker' that generates yield on users' deposits without exposing them to directional risk. Casares' experiences in risk-free value (RFV) trading have informed the project's design. RFV is a profitable trading strategy that targets tokens trading below their book value. Casares plans to leverage this product to create a perpetuals exchange that he claims will be more capital efficient than current competitors GMX and Hyperliquid. He believes their growth relies on unsustainable incentive systems, which will eventually lead to users questioning high funding rates and poor execution.
