About Binance's DEX

[OmegaStarScream]

The video is from August[1] but I came across it only recently. I suggest checking it out If you haven't already, the idea looks very interesting.

What I'm curious about is to understand how is this profitable to Binance in any way? I might be jumping to conclusions but a decentralized exchange will probably be open source and there will be no fees either. So, aside from trying to build and bring more people to Binance's Chain, what's really the purpose of this?

I'm also interested in knowing If anyone has any updates about this from their social media pages as I couldn't find anything since August from YouTube and blogs.

[1] https://www.youtube.com/watch?v=9R9LrKgL__A

[1Referee]

I don't see how there is any money to be made with DEX's either, but I think it's more so that they are out to expand their brand as exchange. A DEX will bring in a different group of users they otherwise might not have been able to welcome, and these users might try out their centralized exchange as well. If even 10% of the DEX users end up trying out the centralized exchange, it's already a massive gain.

I think in order to counter the lack of volume and liquidity, that Binance will come up with some sort of a market making structure that 'borrows' liquidity from users on the centralized part of the exchange, and then locks them up in return for Binance tokens or something. It could be the first DEX that actually generates worthwhile volumes. We'll see how it goes.

[BitHodler]

I think in order to counter the lack of volume and liquidity, that Binance will come up with some sort of a market making structure that 'borrows' liquidity from users on the centralized part of the exchange, and then locks them up in return for Binance tokens or something. It could be the first DEX that actually generates worthwhile volumes. We'll see how it goes.

That's something I haven't thought about myself, but it could end up being a smart marketing gimmick to get people to deposit funds on Binance. It reminds me of the transaction fee mining nonsense that's gaining popularity.

People rush to a bunch of rubbish exchanges to deposit crypto to start wash trading and generate a rubbish exchange token. Centralized exchanges won't ever do something without it being beneficial to their main exchange.

I'm not at all convinced of any decentralized exchange to do well in the coming years, not even this one. People want convenience and instant settling trades, and not trades depending on confirmations and whatnot.

[LeGaulois]

Building an open source project is basically not make a profit directly. It's just a code and share game. Branding is more important. It's like the devs who build Linux/GNU based OS, they don't do it to then sell the OS. Everyone is free to fork and to apply enhancements (but you may not have the resources/level and leadership skills to make the most popular DEX.

Binance is expanding its name and authority and diversifies its activities around the cryptocurrency ecosystem. During the Goldrush, it was not the miners who made money and fortune. They were the ones who sold everything that revolved around gold (selling pickaxes, etc...)

[dreamax25]

A Sneak Peek for the upcoming Binance DEX!

https://coincodex.com/article/2714/binance-releases-sneak-peek-into-their-dex/

[OmegaStarScream]

It has absolutely no similarities with the first Sneak Preview they made when it comes to the UI (posted in the OP). Are they planning to build both a web and a desktop interface?

[kenzawak]

Starting from July 1, Binance DEX will be blocking users from 29 countries, including the ones from the US :

https://www.theblockcrypto.com/tiny/binance-dex-to-geo-block-u-s-customers-and-28-other-countries-starting-in-july/

"The caution could be connected to the SEC charging the founder of decentralized exchange EtherDelta with operating an unregistered securities exchange in November. Binance theoretically could not prevent anyone from issuing a security token. "

[elda34b]

"The caution could be connected to the SEC charging the founder of decentralized exchange EtherDelta with operating an unregistered securities exchange in November. Binance theoretically could not prevent anyone from issuing a security token. "

AFAIK, listing on Binance dex requires approval too from the community & Binance Chain validator itself. It was stated here: https://community.binance.org/t/guidelines-on-how-to-list-your-token-on-binance-dex-dex/1596/. So, isn't it possible for them to prevent any security token to be listed on their DEX?

Though I'm not sure SEC will agree with how Binance and the community define what a security token is.

[Lanatsa]

They should atleast not to called this as Binance DEX yet its clear as water that this is still fully a centralized thing. This isn't how DEX works.