DEX aggregator attempts to advance DeFi adoption with the announcement of upgraded swap engine
Similar to the mid-1990s dot-com era, cryptocurrencies are said to be nearing a phase of hyper-adoption, where growth hits an inflection point and begins a trajectory towards the moon. Looking at the past decade, cryptocurrency adoption can largely be attributed to the emergence of exchange platforms. With numerous exchanges at play, many first-time users have successfully braved the path into the world of digital currencies.
Ironically, while these exchanges have been key to the success of cryptocurrency adoption to date, they have also been the cause for a new debate, one between using a centralized exchange (CEX) or decentralized exchange (DEX). While both exist to provide the same trading functionality, a CEX, as the name suggests, relies on a trusted third party to store digital assets, thereby creating a pool of liquidity.
These exchanges have remained the most popular, providing an unmatched user experience and functionality to trade assets across multiple chains with ample liquidity. The only concern is that intermediaries may be corrupt, a target for scams and require users to subject to their rules of operation.
Sitting across the spectrum are DEXs, such as Uniswap (UNI) and PancakeSwap (CAKE). These DEXs provide traders with true ownership over their assets. Rather than needing to trust a centralized authority, users rely on an automated protocol, which ensures added security and eliminates the need for the Know Your Customer (KYC) procedures.
DEXs also require complex knowledge, making them difficult to use for most users, which is met by concerns around limited liquidity. For investors, the question then becomes whether or not a user should give up control for convenience or tackle the learning curve to
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