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Is Variational the Next Hyperliquid? | CEO Lucas Schuermann and Justin Bram

September 30, 2026

AI Summary

5 min read

Variational's Broker Model: Bringing TradFi Liquidity On-Chain Without Reinventing the Order Book

Variational co-founder and CEO Lucas Schuermann and head of product Justin Bram joined Bankless to explain why their platform is not another perpetual exchange competing with Hyperliquid or dYdX, but something structurally different: an on-chain brokerage that takes the other side of every trade and hedges against aggregated global liquidity. The distinction matters because it lets them do things no crypto-native exchange can—zero-fee trading, hundreds of listings, and most importantly, derivatives on real-world assets with execution quality that matches traditional finance.

The Broker Model vs. the Exchange Model

The core architectural difference is simple. On a traditional exchange like Hyperliquid, external market makers provide liquidity in an order book, and retail traders trade against each other. On Variational, the user is always the taker, and the platform's OLP (omni liquidity provider) system is always the maker. Variational takes the other side of every trade, then hedges that risk by routing to external sources—crypto exchanges, decentralized exchanges, and critically, traditional finance venues.

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What you'll learn

  • 1 (00:02) **Introducing Variational** - Lucas Schuermann and Justin Bram join to explain their on-chain brokerage model and what makes it different from traditional perp exchanges.
  • 2 (01:06) **The Brokerage Model vs. the Exchange Model** - A deep dive into how Variational acts as principal broker, not an order-book exchange.
  • 3 (03:29) **Why Trading Against Variational Is a Feature, Not a Bug** - The hosts clarify why having the platform as counterparty is a value proposition, not a risk.
  • 4 (05:07) **When to Use Hyperliquid vs. Variational** - A clear segmentation of user types and use cases for each platform.
  • 5 (07:24) **Introducing Swaps: A Better Perp** - Variational launches a new derivative instrument called a "swap," which is live and trading today.
  • 6 (10:46) **Why Spread and Liquidity Matter to Traders** - A plain-language explanation of how Variational reduces the real cost of trading.
  • 7 (12:08) **The RWA Problem and Variational's Solution** - How Variational solves the fragmented, illiquid market for tokenized real-world assets.

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Show Notes

What if the next major onchain trading platform looks less like a crypto exchange and more like Robinhood with institutional liquidity underneath? Variational co-founder Lucas Schumann and Head of Product Justin Bram join David to unpack the broker model behind Variational, why they believe swaps can improve on perps for real-world assets, and how TradFi liquidity can be brought onchain without rebuilding every market from scratch.

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TIMESTAMPS

0:00 Broker, Not Exchange
5:07 Why Brokerage Wins for Retail
8:22 What Is a Swap?
9:58 The Real Cost of Trading
11:43 Bringing TradFi Liquidity Onchain
14:44 Building Variational
23:14 From Crypto Traders to Everyone
26:42 The Next User Base
30:35 What Actually Happens Onchain?
34:00 Inside OLP
37:03 Arbitrum and User Funds
39:44 The VAR Token and 32% Airdrop
42:34 Funding the Token Model
44:11 The 2027 Roadmap
47:44 Protocol or Platform?

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RESOURCES

Lucas Schuermann
https://x.com/variational_lvs

Justin Bram
https://x.com/JustinCBram

Variational
https://www.variational.io/en

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Not financial or tax advice. See our investment disclosures here:
https://www.bankless.com/disclosures

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