Taking Definitive as an example, an in-depth analysis of institutional users and DeFi platforms on Base

The issuance of the Base token is nearly a done deal. However, most investors overlook Definitive — a platform supported by Coinbase, with over 50 institutional clients. As institutional capital enters DeFi, Definitive has built the infrastructure to make it possible.

Key Points

• Definitive is an institutional-grade DeFi trading platform developed by the Coinbase Prime team.
• It is used by over 50 institutions, offering advanced trading features that help hedge funds like Starkiller Capital achieve outstanding performance.
• The project received direct investment from Coinbase and launched on its exchange, expected to benefit from the expansion of the Base ecosystem.

1. Hidden Players in the Base Ecosystem

Current market focus is on the Base ecosystem.

As discussed in previous reports, Coinbase is surpassing its regulated exchange business through a series of strategic acquisitions, positioning itself as a leader guiding the broader Web3 landscape. With the launch of the Base app, large-scale user onboarding has begun, and efforts to strengthen the internal ecosystem are accelerating.

Adding momentum to this trend are expectations around the Base token issuance. Although no official announcement has been made, the market generally considers it confirmed and is actively exploring related opportunities.

Source: Definitive.fi

Projects like Zora have already gained attention in this context. However, one project remains relatively under the radar — Definitive Finance. Founded by the team behind Coinbase Prime, Definitive received direct investment from Coinbase Ventures and listed on Coinbase on its token generation event (TGE) day.

As the era of Base unfolds, the question remains: why is Definitive still not widely known?

( 2. Why Institutions Chose It First

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From the start, Definitive was designed for institutional users.

Consider a hedge fund planning to convert $10 million worth of MORPHO tokens into USDC. Executing this on a single decentralized exchange (DEX) would cause severe price slippage because the liquidity pools cannot absorb such a large trade. The result is a direct loss for the fund.

Institutional traders also face audit and compliance requirements. Each month, hedge funds must provide detailed records to external accountants showing when, at what price, and how each trade was executed. Traditional DeFi platforms only leave on-chain transaction hashes, without providing formal trade reports suitable for fund accounting.

In short, institutions need advanced trading features tailored to their operational needs, but most DeFi services are built for retail users. Definitive aims to fill this gap. With a team background rooted in Coinbase Prime’s institutional services, Definitive understands what institutions require — and builds the platform accordingly.

(# 2.1. Six Key Features for Institutional-Grade Trading

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• Segregated Custody: Assets are held in separate trading accounts for each client, with full ownership. Even if another client is compromised, their assets remain unaffected.
• Smart Order Routing: Real-time aggregation and analysis of liquidity across all major EVM chains and over 100 DEXes on Solana, automatically executing trades via the most efficient paths.
• TWAP (Time-Weighted Average Price): Large trades are split and executed over time to minimize market impact. For example, dispersing $100 million over 30 days prevents sudden price swings.
• Trade Reporting: All trades are automatically recorded and exportable as CSV files, available for external audits and accounting.
• Sub-Accounts: Assets are separated by trader, allowing independent portfolio and risk management within the same institution.

Role-based access control assigns different permissions — traders execute orders, portfolio managers (PMs) approve orders, risk managers monitor positions — ensuring operational security and internal controls.

To illustrate how these features work in practice, take Tiger Crypto Fund, which plans to exchange $2 million of MORPHO for USDC. The fund has two traders, one risk manager, and one portfolio manager.

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1. Create and Isolate Vaults: Establish dedicated trading vaults controlled solely by the fund’s wallet.
2. Set Up Sub-Accounts: Each trader gets a separate sub-account with predefined trading limits.
3. Role-Based Access: The portfolio manager authorizes trading ideas; traders execute orders; risk managers monitor risk exposure.
4. TWAP Execution: Traders can use TWAP orders to automatically split $2 million MORPHO into USDC over 24 hours, minimizing slippage.
5. Smart Routing: The system compares prices across over 100 DEXes (e.g., Uniswap, Curve) in real-time and executes via the most efficient route.
6. Automatic Reporting: After 24 hours, all trades are completed and recorded with execution prices, sizes, and fees. Reports are exported as CSV for monthly accounting or annual audits.
7. Real-Time Risk Monitoring: Risk managers track positions of both traders and receive alerts when risk exposure approaches internal limits.

(# 2.2. Starkiller Capital Achieves 21% Gains on AERO Token Execution

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Source: Starkiller Capital

To see how these features operate in practice, consider the case of crypto hedge fund Starkiller Capital.

Starkiller plans to purchase $700,000 worth of AERO tokens. Although AERO is listed on Coinbase and KuCoin, executing such a large order all at once would cause the price to spike sharply, resulting in significant slippage. When Starkiller contacted a major OTC market maker, the bid-ask spread was 26.19% — meaning it would pay $126 for every $100 worth of AERO purchased.

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Source: Definitive

Instead, the fund used Definitive’s TWAP order feature, splitting the $700,000 order into 678 smaller trades executed over time. The smart order routing compared prices across multiple DEXes — such as Uniswap V3, PancakeSwap V3, Aerodrome — and automatically chose the most efficient path for each execution.

As a result, Starkiller received 21.33% more AERO tokens than with OTC execution, while only paying $10.71 in network fees. This effectively avoided the potential 20% loss in execution efficiency.

Leigh Drogan, Chief Investment Officer of Starkiller Capital, summarized:

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Source: Definitive

)# 2.3. Definitive in the Era of Institutional Capital Inflows

Current market expectations suggest that inflows of institutional capital will drive the next growth phase more than retail participation. In this environment, infrastructure like Definitive is crucial.

Imagine a bullish scenario where increased regulatory clarity prompts traditional financial institutions to enter DeFi. These entities manage hundreds of millions or billions in assets, but existing DeFi services cannot securely and efficiently handle such large trades.

Definitive bridges this gap. It enables institutions to transfer large amounts of capital on-chain, maintaining security through segregated custody, executing minimal market impact via TWAP, and meeting compliance standards with automated reporting tools.

Thus, more institutional funds can confidently enter DeFi markets. Positioned at the center of this capital flow, Definitive stands to benefit from exponential growth in trading volume and fee revenue, reinforcing its strategic value within the Base ecosystem.

( 3. Why Retail Users Are Also Satisfied

If institutions find the platform effective, retail investors stand to benefit even more. Definitive has extended most of its institutional-grade features to individual users, offering a fast and cost-effective professional trading experience.

• Degen Mode: During network congestion, allows up to 20% slippage dynamically to prevent failed trades and improve execution success for hot tokens.
• Quick Trades: Use preset amounts via side panel for one-click buy/sell orders — ideal for fast-moving markets.
• Discover: Real-time display of newly launched tokens on platforms like Zora, filterable by trend or performance for immediate trading.
• Bridging: Multiple bridge providers (debridge, Bungee, Socket, LiFi, Relay) compare cross-chain routing and automatically select the most efficient bridge, reducing time and costs.
• Cross-Chain Swaps: Swap any token on one chain for any token on another chain in a single operation, without separate bridging steps.

Why are these features important?

Consider a real-world scenario: a new creator token launches on Zora and quickly gains attention on X (Twitter), with its price soaring.

What happens if a user trades on a typical DEX?

They first need to bridge assets to Zora, which can take several minutes — enough time for the price to spike significantly. When they finally attempt the trade, network congestion and strict slippage settings may cause failure. Each retry takes more time, risking missed opportunities and losses.

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What if the user trades via Definitive?

The token appears instantly in the Discover feature, allowing immediate access. If their assets are on another chain, they can perform cross-chain swaps directly — no separate bridging needed. Degen mode ensures success even during congestion, and quick trades can be completed with a single click. All within seconds, not minutes.

More importantly, transaction costs matter. While fees are critical for institutions executing large volumes, they are equally important for retail investors managing smaller amounts.

**

Source: Definitive

Definitive charges market order fees of 0.05-0.25%, depending on trading volume and token type. In comparison, standard DEXes charge 0.25-0.30%, making Definitive already competitive.

Users can stake EDGE tokens to reduce fees. Staking 2,000 EDGE and maintaining a monthly trading volume of $100,000 can lower fees to 0.15% — a 40% reduction from the base rate.

The team has hinted that stablecoin pairs like USDC/USDT will be free to trade, with plans to charge only 0.05% for major assets like BTC, ETH, and SOL. This tiered approach strategically targets the most high-volume, fee-sensitive trading pairs.

Lower costs compound over time. For active traders, fee savings directly translate into higher net returns.

( 4. Core Infrastructure in the Base Era

Definitive has first proven itself in the institutional market.

Since launching its beta in March 2024, over 50 institutions have joined, including hedge funds like Starkiller Capital and Skycatcher, major OTC desks like Blockfills, and top VC firms such as the Base ecosystem fund. Total trading volume has reached billions of dollars.

Having established credibility among institutions, Definitive is now expanding to retail users. It has launched features like quick trading, discovery, and cross-chain swaps, along with iOS and Android mobile apps. A new trading product called Turbo is also upcoming.

The Base ecosystem is entering a critical phase. Coinbase has begun onboarding large-scale users via the Base app, and market expectations for the Base token issuance continue to rise.

Definitive is at the heart of this momentum. Founded by developers behind Coinbase Prime, supported by Coinbase Ventures, and listed on Coinbase on its TGE day, Definitive is positioning itself as a core infrastructure for the Base ecosystem and beyond.

As institutional capital flows into DeFi, Definitive stands out as one of the best-positioned projects. As the Base token is issued and the ecosystem expands, it is likely to remain at the center of this growth.