Why Formation Is Betting On Onchain Credit | Luke Truitt

Why would a DEX and a lender merge into one company? This week, we're joined by Formation CEO Luke Truitt to unpack the Orca and Loopscale merger and why he now calls Orca a market structure company. We explore why liquidity caps onchain credit, neo-clouds borrowing onchain, xORCA's fee cut, and the rise of prop AMMs on Solana. Enjoy! TIMESTAMPS: 00:00 Luke Truitt, CEO of Formation 02:28 Why a DEX and a Lender Merged 05:30 ONYC vs ACred: Liquidity Caps Credit 10:55 Neo-Clouds Borrowing at 14–20% Onchain 13:57 DAS London 14:35 Neo-Clouds Borrowing at 14–20% Onchain (cont.) 17:47 Clarity Act and Regulated US Markets 21:17 Token Holders in Crypto M&A 28:24 DAS London 29:02 Token Holders in Crypto M&A (cont.) 34:28 Monetizing Credit Through Trading 38:03 xORCA Fees Cut 40%→10% 44:54 Competing for New Lending Markets 48:59 Are DeFi Yields Mispriced? 51:50 Prop AMMs Hit ~36% of Solana DEX 56:21 Formation's Next 12 Months FOLLOW THE SHOW › 0xResearch – https://x.com/0xResearch › Marc – https://x.com/marcarjoon › Luke – https://x.com/Luketruitt › Carlos – https://x.com/0xcarlosg › Telegram – https://t.me/+UFFz4z3qyrhhMDYx › Blockworks – https://x.com/Blockworks RESOURCES › Blockworks Agentic Detection https://blockworks.com/insights/introducing-agentic-detection-asset-monitoring-built-for-the-ai-era › Start building with the Blockworks Unified API https://blockworks.com/insights/introducing-the-blockworks-unified-api › Blockworks Research → Research, data, governance, tokenomics, and models – all in one place: https://www.blockworksresearch.com/ › Free Daily Newsletter: https://blockworks.co/newsletter EVENTS › Join us at Digital Asset Summit London Nov 10-11 https://blockworks.com/events DISCLAIMER Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only. Any views expressed are opinions, not financial advice. Hosts and guests may hold positions in the companies, funds, or projects discussed.