What are you looking in a DEX?

[Astargath]

I've started using DEX's quite recently and became a huge fan of Switchdex.ag and I have bought a good amount of their token, which by the way, airdrops all the fees collected by the exchange. However it does have low volume like most of the other DEX's. I'm wondering what people really want in a DEX aside from speed and a friendly interface.

[LeGaulois]

More liquidity to attract more people firstly, they lack volume.

More advanced features: advanced users are usually looking for more components and currently DEXs don't have much. I'm not an extensive user myself but I know it will also attract more people. Also, most of them deal with cryptos only and they should look at what Bisq is doing for example.

And finally, they should market themselves, I don't see much done regarding this, mainly "word of mouth"

[leowonderful]

Liquidity above all. All the DEXes I've used up to this point in time have had a lack of liquidity and volume, main reason why I don't really use them at the moment. Better charting software couldn't hurt either, most of the exchanges I trade on have charts powered by TradingView that offer lots of customizeability and charting options that I like.

Like LeGaulois said, more advanced features such as different order types would be great to have, like stops, take profit orders. I personally haven't seen any DEXes with different order types yet.

[Astargath]

Liquidity above all. All the DEXes I've used up to this point in time have had a lack of liquidity and volume, main reason why I don't really use them at the moment. Better charting software couldn't hurt either, most of the exchanges I trade on have charts powered by TradingView that offer lots of customizeability and charting options that I like.

Like LeGaulois said, more advanced features such as different order types would be great to have, like stops, take profit orders. I personally haven't seen any DEXes with different order types yet.

Yeah, obviously liquidity but thats something everyone knows. The different order types is certainly interesting although its probably hard to implement in DEX. The only way a stop loss could work would be if they had control over your address which defeats the purpose of a DEX.

[PrimeNumber7]

More liquidity to attract more people firstly, they lack volume.

Some DEXs are a sister exchange to a traditional, centralized exchange, and leverage the orderbook of the central exchange into the DEX.

Trustless.ethfinex.com for example leverages the orderbook of bitfinex, allowing for fairly deep orderbooks, while having to pay a higher fee for not having the counter party risk.

[sheenshane]

That was the main reason for some traders that they want DEX (the liquidity), but the order book acquires with lower liquidity than the regular top crypto exchanges that's why lack of volume. Also storing the fund, for me I like those having safe of storing fund and DEX didn't require the third party when storing your fund. Besides, you are the one who controls your coins and the private key of your wallet of course. DEX also normally didn't require you to submit personal information either or known us KYC, that's what I am looking for DEX, IMO.

[sandra_x]

I personally avoid using Decentralized exchanges for one of the reasons you implied- low volume, which eventually lead to a large spread between the ask and bid price. You get to see your order taking far more than necessary to get filled. DEX is actually the future of cryptoexchange once more persons start using it.
Another problem with DEX is that it can be more challenging technically to use especially by newbies

[timerland]

Apart from the liquidity issues that others have mentioned which are obvious for the majority of DEXs available to investors on the marketplace, I think the primary concern is the lack of cross-platform/token trading pairs.

DEXs usually by design can only support the tokens of a certain platform, and nothing else. I believe that unless DEXs are able to integrate fiat as well as currencies from other blockchains into their market, mass adoption will be far fetched for now.

But I understand that it's a tough proposition to make - to make such cross-platform exchanges, you'll see centrality at one point or another. I think the question is how you minimize the risks of that.

[dothebeats]

Liquidity is my main concern, as with any other traders too, of course, knowing that it's easy to trade back and forth if there are loads of volumes on the buying and the selling side of things. It will also state whether the DEX is a reliable platform or not, because frankly, who would use a platform where reliability is close to nil? Next up would be UI and advanced trading features that one can only find on a third-party trading bot (some, but not all). I crave a simplistic yet elegant UI on exchanges as it doesn't strain the eyes and helps me see things clearly and execute a move whenever I see fit almost immediately.

[mobnepal]

Haven't heard about this DEX platform before and its hard for any new so called decentralized exchange that are popping up everyday using same script to attract customers as all of them will offer same features. And without any liquidity DEX can't outperform former centralized trading platform.

Also DEX was supposed to operate without getting approval from any third party or person but with increasing monitoring from authorities its hard for anyone to operate DEX without reporting back to government bodies about the trades.

So two main issues are keeping decentralized exchange back: Lack of liquidity and Anonymity

[carlfebz2]

Also DEX was supposed to operate without getting approval from any third party or person but with increasing monitoring from authorities its hard for anyone to operate DEX without reporting back to government bodies about the trades.

One of the issues that can be possible be faced up by DEX.They are prone to monitoring thats why i dont really trust too much when it comes to full anonymity.
People do love to use Dexe's but they do end up on using Centralized ones because most traders or investors do make use of it.High volume which do makes it attractive.

[AdolfinWolf]

One of the issues that can be possible be faced up by DEX.They are prone to monitoring thats why i dont really trust too much when it comes to full anonymity.

Uhm. Isn't like the only reason people use DEX' due to the fact that they don't require KYC checks/do extensive logging of their customers?

People do love to use Dexe's but they do end up on using Centralized ones because most traders or investors do make use of it.High volume which do makes it attractive.

How can a centralized dex be a dex?   Am i missing something.

I thought binance was developing a dex, but other than a few articles i can't find anything about it anymore.

https://www.binance.org/en/trade/BZNT-464_BNB - It's the .org - is this DEX fully "decentralized"? Is it worth using over the "normal" binance? Doesn't seem to have a lot of pairs or volume yet.
Looks better than any of the decentralized exchanges i've seen so far though.

[Kemarit]

How can a centralized dex be a dex?   Am i missing something.

I thought binance was developing a dex, but other than a few articles i can't find anything about it anymore.

https://www.binance.org/en/trade/BZNT-464_BNB - It's the .org - is this DEX fully "decentralized"? Is it worth using over the "normal" binance? Doesn't seem to have a lot of pairs or volume yet.
Looks better than any of the decentralized exchanges i've seen so far though.

Right only few trading pairs right now, but it seems there's a pipeline and they are slowly integrating tokens/pair listing. Here, you can check it out, (https://twitter.com/binance_dex?lang=en).

Definitely, we should look at liquidity, only as far as I know DEX offer only a small set of options and pointed up by @timerland, That's why newbie and experienced traders still prefer trusted centralized exchange today.

[pooya87]

https://www.binance.org/en/trade/BZNT-464_BNB - It's the .org - is this DEX fully "decentralized"?

a "decentralized" exchange doesn't show you this message:


and since they are forcing you to trade against their tokens (such as BNB) it is not the best place to trade. a real "decentralized exchange" has to first let you trade any coin against any coin and do that purely on chain without any middle man (third party) taking fees so you only pay on chain transaction fees of those two coins you are exchanging with each other.

[PrimeNumber7]

https://www.binance.org/en/trade/BZNT-464_BNB - It's the .org - is this DEX fully "decentralized"?

a "decentralized" exchange doesn't show you this message:

Any exchange, decentralized or not, will always have a centralized server and trading engine. Having a decentralized orderbook with low latency and guaranteed order matching is an engineering nightmare and probably wont happen anytime soon.

and since they are forcing you to trade against their tokens (such as BNB) it is not the best place to trade. a real "decentralized exchange" has to first let you trade any coin against any coin and do that purely on chain without any middle man (third party) taking fees so you only pay on chain transaction fees of those two coins you are exchanging with each other.

If the exchange is not taking any fees, it will not have much of an incentive to operate, or even be created in the first place.

In order for a DEX to not have counter party risk, it needs to operate on a single blockchain, or with a single 2nd layer technology such as LN supported by both blockchains being used.

[eternalgloom]

I've had periods where I almost exclusively used decentralized exchanges, but I generally paid a bit too much due to the low amount of liquidity and high prices of sell orders.
Nowadays i just tend to use Kraken a lot, because the prices are generally better and I've been using them on and off since 2013.

Once most DEX's have decent volume and liquidity, I'd definitely use them again.

[LeGaulois]

More liquidity to attract more people firstly, they lack volume.

Some DEXs are a sister exchange to a traditional, centralized exchange, and leverage the orderbook of the central exchange into the DEX.

Trustless.ethfinex.com for example leverages the orderbook of bitfinex, allowing for fairly deep orderbooks, while having to pay a higher fee for not having the counter party risk.

I didn't know it was already developed, do you know any others like that?

...Another problem with DEX is that it can be more challenging technically to use especially by newbies...

Not everyone is a newbie, what about all the people who aren't? They all know how to export/import/swipe/encrypt/back up etc, they could at least make the effort to check how to use a DEX. There is nothing difficult, how that comes people never want to learn something? All they want is money without doing anything or the least. Yet, they keep complaining about KYC, taxes, laws

[Astargath]

More liquidity to attract more people firstly, they lack volume.

Some DEXs are a sister exchange to a traditional, centralized exchange, and leverage the orderbook of the central exchange into the DEX.

Trustless.ethfinex.com for example leverages the orderbook of bitfinex, allowing for fairly deep orderbooks, while having to pay a higher fee for not having the counter party risk.

I didn't know it was already developed, do you know any others like that?

...Another problem with DEX is that it can be more challenging technically to use especially by newbies...

Not everyone is a newbie, what about all the people who aren't? They all know how to export/import/swipe/encrypt/back up etc, they could at least make the effort to check how to use a DEX. There is nothing difficult, how that comes people never want to learn something? All they want is money without doing anything or the least. Yet, they keep complaining about KYC, taxes, laws

Well, DEX's wont be used by newbies anyways. If you are new to crypto, you will need to first buy some crypto and you will not be able to do that through a decentralized exchange so you will always have to use a centralized exchange first. It's also their fault if they are using a DEX and fuck up, there are tons of guides out there on how to use them and if you are not sure you can always ask or simply not use them.

The new DEX's are indeed quite simple to use, Prime is probably referring to shitty DEX's like etherdelta and others which were created in days and had no updates whatsoever and were confusing as fuck and also had a ton of bugs.

[PrimeNumber7]

More liquidity to attract more people firstly, they lack volume.

Some DEXs are a sister exchange to a traditional, centralized exchange, and leverage the orderbook of the central exchange into the DEX.

Trustless.ethfinex.com for example leverages the orderbook of bitfinex, allowing for fairly deep orderbooks, while having to pay a higher fee for not having the counter party risk.

I didn't know it was already developed, do you know any others like that?

As far as I am aware, trustless.ethfinex is the only DEX that leverages the orderbook of a major exchange. (ethifinex is owned by bitfinex). I would have thought the Binance DEX gives similar liquidity, but I just looked at their DEX, and I don't believe this is the case.

[michellee]

I've started using DEX's quite recently and became a huge fan of Switchdex.ag and I have bought a good amount of their token, which by the way, airdrops all the fees collected by the exchange. However it does have low volume like most of the other DEX's. I'm wondering what people really want in a DEX aside from speed and a friendly interface.

The truth is people want to make a profit in the dex exchanges and they still buying any tokens in that site which have a good vision in the long term. But you can do analyze before you decide to buy any token because no matter what, that is a good way for you before you buy the tokens. By analyzing, you will find good potential coins at the dex. I think the volume is not too big depends on the centralized exchanges, but sometimes, the tokens are getting a list on the major exchanges, so we have a double chance to make a profit.