The Cat-and-Mouse game of Market Making w/ Rahul Jain

Rahul Jain, Head of Trading at Ellipsis Labs, joins us to talk about the reality of market making on Solana. Rahul breaks down why spot order books fail against toxic makers, how transactional introspection protects liquidity, and the economics of running modern prop execution systems. He dives into the mechanics of Phoenix's new perps platform, managing oracle attacks on illiquid tokens, the structural advantages of owning user flow on-chain, and whether decentralized perps are a winner-take-most game.

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Notes:

* Firm held 20-25% crypto options market share.

* Toxic takers pick off makers for tens of K a day.

* Basic prop contracts can make around $1,000/day.

Timestamps:

00:00 Start

00:50 Rahul's background

02:45 Why move from spot trading?

06:50 Future of Prop AMMs

09:21 Order book games