(Yes or NO) The 2020s belong to DEXs

[Doranile432]

Through out the year I only noticed balancer and uniswap as the most performing DEXs and now that the year is almost over their performance are going lower too simply because of many fake DeFi projects that dumps significantly or even exit scam, Uniswap had a very huge volume while DeFi hype was still alive weeks ago but now things have changed, it just looks like DEX success always have low life span

[1714281663]

1714281663

[1714281663]

1714281663

[1714281663]

1714281663

[1714281663]

1714281663

[1714281663]

1714281663

[VDraci]

DeFi projects and DEX are big failure this year, that's my own answer because majority of DeFi projects are scam and the little DeFi projects that have something good ended up been hacked, the word decentralization is nothing but a big joke in crypto space now, even Uniswap was able to gain attention because of DeFi tokens, once the hype was over uniswap goes down too and now many tokens are been cloned on uniswap, still asking if DEX owns this 2020? It's a big no

[retalids]

agree with you, i also think that the real future lay in the defi exchanges - they just need some time to became technically qualitative and centralized exchanges wouldnt be popular at all

agree with u, and as for now I prefer even to invest more in dex projects. seraching them everyday))

[Winscosinally]

I thought things will change for DEX this year after DeFi became a big success in crytpo space months ago and uniswap had insane volume, I felt like this is the beginning but I was wrong, almost all DeFi projects are crappy made, hacks here and there, funds aren't safe with decentralized projects and platforms anymore, newbies are scammed through Uniswap since any token is welcome to get listen on the DEX, it's a big shame to decentralized projects

[icekohl]

Yes, I think after the trend of yeild farming by provide liquidity pool and defi, the biggest problem of DEX was liquidity and cross-chain transactions solved, so the number of users increased and they We have seen the impressive growth of DEX in the past year. I think once the transaction fee and timing issues are solved with ETH 2.0, I think next year will see the further development of the DEX.

[Drahzar]

agree with you, i also think that the real future lay in the defi exchanges - they just need some time to became technically qualitative and centralized exchanges wouldnt be popular at all

agree with u, and as for now I prefer even to invest more in dex projects. seraching them everyday))

me too. just found xsigma - stablecoin exchange, very simple, but trusted by a public company and they have nice returns

[nightflightcourt]

agree with you, i also think that the real future lay in the defi exchanges - they just need some time to became technically qualitative and centralized exchanges wouldnt be popular at all

Agreed. One of the last vestiges of CEXs would be liquidity and custody for very large amounts of money, and even in that regard DEXs have grown to be a lot more competitive.

Through out the year I only noticed balancer and uniswap as the most performing DEXs and now that the year is almost over their performance are going lower too simply because of many fake DeFi projects that dumps significantly or even exit scam, Uniswap had a very huge volume while DeFi hype was still alive weeks ago but now things have changed, it just looks like DEX success always have low life span

It is very reminiscent of the ICO bubble in that there are numerous "ETH killers" claiming to be the one, true DEX solution.
Many are very much the same in their approach and I wager that most of them will not be around in 2 years.

DeFi projects and DEX are big failure this year, that's my own answer because majority of DeFi projects are scam and the little DeFi projects that have something good ended up been hacked, the word decentralization is nothing but a big joke in crypto space now, even Uniswap was able to gain attention because of DeFi tokens, once the hype was over uniswap goes down too and now many tokens are been cloned on uniswap, still asking if DEX owns this 2020? It's a big no

The question refers to the decade as a whole - 2020s, not 2020 in itself. Even for this year, however, DEXs have seen a dramatic shift upwards in market share and trading volume. Collectively, they went from doing millions to billions in 24h volume.

quote author=retalids link=topic=5194868.msg55695730#msg55695730 date=1606490161]

agree with you, i also think that the real future lay in the defi exchanges - they just need some time to became technically qualitative and centralized exchanges wouldnt be popular at all

agree with u, and as for now I prefer even to invest more in dex projects. seraching them everyday))
[/quote]
What stands out to you? I think XSN is onto something special because you can trade real BTC and ETH off-chain.

Yes, I think after the trend of yeild farming by provide liquidity pool and defi, the biggest problem of DEX was liquidity and cross-chain transactions solved, so the number of users increased and they We have seen the impressive growth of DEX in the past year. I think once the transaction fee and timing issues are solved with ETH 2.0, I think next year will see the further development of the DEX.

ETH 2.0 will allow Ethereum to scale a lot. Off-chain solutions like Lightning Network for BTC/LTC and Connext/Raiden for layer 2 ETH have become a lot more advanced over the past few years. Between all these forces, I believe we're onto a truly scalable ecosystem. 

[Aldrinx00]

I think not yet because there's a lot of things that DEX cannot do right now compare to CEX. DeFi is having a great run this year but with lots of scams and hacks going on, people like me still prefer to use CEX for the safety of my investment.

[meto012]

When up-and-coming DEXs become more convenient than Binance...
I think the days of centralized figureheads acting as gatekeepers are numbered.

Thats quite strange you didn't include uniswap in the list - the only dex exchange that actually beated binance once and still remains in top10 of exchanges overall both cex and dex.
Its only a matter of time before dex takes over the market

[nightflightcourt]

I think not yet because there's a lot of things that DEX cannot do right now compare to CEX. DeFi is having a great run this year but with lots of scams and hacks going on, people like me still prefer to use CEX for the safety of my investment.

A true DEX is one that's as secure as the blockchain itself. 

When up-and-coming DEXs become more convenient than Binance...
I think the days of centralized figureheads acting as gatekeepers are numbered.

Thats quite strange you didn't include uniswap in the list - the only dex exchange that actually beated binance once and still remains in top10 of exchanges overall both cex and dex.
Its only a matter of time before dex takes over the market

You're right. The OP is from October 2019. The DEX space has changed a lot since then. I decided not to edit the original post and just let it be as it was.

[BTCXRPADA]

When up-and-coming DEXs become more convenient than Binance...
I think the days of centralized figureheads acting as gatekeepers are numbered.

Thats quite strange you didn't include uniswap in the list - the only dex exchange that actually beated binance once and still remains in top10 of exchanges overall both cex and dex.
Its only a matter of time before dex takes over the market

Uniswap will be beaten by Stakenet once they go full public. There's a big chance of that as Stakenet provides a DEX offering BTC - ETH - LTC - Pretty much ALL assets to be sent instantly, and with very low fees. Pretty much gotta look and function like Binance, without being centralized.
2nd layer transactions will make sure transactions go through pretty much instantly, which is what this space needs for further adoption of the blockchain technology. 

[ololajulo]

When up-and-coming DEXs become more convenient than Binance...
I think the days of centralized figureheads acting as gatekeepers are numbered.

Thats quite strange you didn't include uniswap in the list - the only dex exchange that actually beated binance once and still remains in top10 of exchanges overall both cex and dex.
Its only a matter of time before dex takes over the market

The challenge with DEX is the trust for Defi project and the high transaction fee, the regular hack claims is hunting the confidence of old and new traders. I always knew investors and traders prioritize the safety of their identity, This can bring huge fund to the space as long as investors identity is concealed by DEX. Uniswap is doing great but not better than binance, not with traded volume, number of coin and users.

[ven7net]

When up-and-coming DEXs become more convenient than Binance...

Projects like:

Stakenet
Komodo Atomic DEX
Nash
Blocknet
Bisq
Switcheo
Loopring
IDEX
WAVES
Bithumb
...And many more...

Why would anyone ever want to keep using centralized exchanges, especially when their volume becomes irrelevant?

Why would anyone voluntarily send their funds to a wallet on a vulnerable exchange where they don't own the keys and their funds could be frozen at the drop of a hat?

I think the days of centralized figureheads acting as gatekeepers are numbered.

You have raised an interesting and necessary question, but is everything the way you write? If we talk about centralized exchanges, then we cannot say that they are all not reliable or work somehow incorrectly, because it all started with them and not all centralized crypto exchanges are reliable or scammers. As for decentralized exchanges, they are certainly based on decentralized processes, but this does not prevent fraudsters from deceiving users. Moreover, the word DEX itself has recently been used by many as a bait for investment and it is far from the fact that there is anything at all connected with decentralization. I have personally seen many different platforms, both CEX and DEX, and I cannot say that someone is better and someone is worse. I can say one thing that some and others have a number of problems that need to be addressed.

[nightflightcourt]

The challenge with DEX is the trust for Defi project and the high transaction fee, the regular hack claims is hunting the confidence of old and new traders. I always knew investors and traders prioritize the safety of their identity, This can bring huge fund to the space as long as investors identity is concealed by DEX. Uniswap is doing great but not better than binance, not with traded volume, number of coin and users.

Real DEXs and real DeFi entail platforms and services that can't be hacked. 
Agree that Uniswap has been doing great this year. I'd argue that 99% of people in crypto didn't expect it to do as well as it did - getting around $1 billion in 24h volume on a daily basis at its peak last summer.
Remember - Binance didn't show up until late in the 2017 crypto bullrun. Some of the biggest exchanges at one point in time were Bitfinex, Poloniex, and Bittrex. At the start of 2017, Bittrex and Polo were the place to be. By the end of the same year, they were quite irrelevant. Crypto changes fast!

You have raised an interesting and necessary question, but is everything the way you write? If we talk about centralized exchanges, then we cannot say that they are all not reliable or work somehow incorrectly, because it all started with them and not all centralized crypto exchanges are reliable or scammers. As for decentralized exchanges, they are certainly based on decentralized processes, but this does not prevent fraudsters from deceiving users. Moreover, the word DEX itself has recently been used by many as a bait for investment and it is far from the fact that there is anything at all connected with decentralization. I have personally seen many different platforms, both CEX and DEX, and I cannot say that someone is better and someone is worse. I can say one thing that some and others have a number of problems that need to be addressed.

Technically it all started with this very messageboard, didn't it? A few lads trying to peg BTC to the dollar and a guy who ordered some pizzas. It was technically decentralized, though highly reliant on trust. Centralized exchanges came after. 
Trust is an important factor and there's no point in having a DEX if it is not non-custodial and trustless off the bat.

Uniswap will be beaten by Stakenet once they go full public. There's a big chance of that as Stakenet provides a DEX offering BTC - ETH - LTC - Pretty much ALL assets to be sent instantly, and with very low fees. Pretty much gotta look and function like Binance, without being centralized.
2nd layer transactions will make sure transactions go through pretty much instantly, which is what this space needs for further adoption of the blockchain technology. 

I agree. From their latest article...

What makes Connext the best choice for our DEX infrastructure is their recently released protocol, Vector, a cross-chain routing network that can bounce between other L2s, ETH shards, primary blockchains and even EVM-compatible chains such as Binance smart chain, Ethereum classic, TOMO chain, and others.

Vector supports conditional transfers routed over intermediary nodes, instant cross-chain and cross-asset transactions, plugin support for non-EVM turing-complete chains, zkRollups, easy deposit/withdraw interface, and low gas costs. All of this is packaged in a lightweight program, containing no more than 2500 lines of code.

Other advantages of Connext are client stability, supporting all operating systems including Windows, and live support for ETH, USDT and DAI. All these mean we will be able to easily add further pairs once we successfully implement and test Vector protocol, making us the first DEX adding support for BTC/USDT and other crypto-stablecoin pairs, without any need for wrapped coins on Ethereum mainnet.

Absolutely nothing in this space compares to what XSN has been building this whole time if they can do instant cross-chain swaps between pairs like BTC/USDT, ETH, LINK, or even ETC.
https://medium.com/stakenet/ethereum-scalability-solutions-connext-and-stakenet-xsn-research-4edb29267bb6

[InwardContour]

I think not yet because there's a lot of things that DEX cannot do right now compare to CEX. DeFi is having a great run this year but with lots of scams and hacks going on, people like me still prefer to use CEX for the safety of my investment.

Like seriously? CEX for safety of your investments? I think you are talking the opposite. Remember you are never in total control of your funds when it comes to centralized exchanges and CEX are prone to hacks, but for DEX like UNISWAP, your funds will be in your possession while you carry out swaps. Decentralized exchanges achieved huge milestones this year, the major propeller was Uniswap. Uniswap's large trading volumes and liquidity shows a lot of interest was drifted towards it, many other DEX which cloned Uniswap are fast rising even on other blockchains like TRON and BSC.

[nightflightcourt]

I think not yet because there's a lot of things that DEX cannot do right now compare to CEX. DeFi is having a great run this year but with lots of scams and hacks going on, people like me still prefer to use CEX for the safety of my investment.

Like seriously? CEX for safety of your investments? I think you are talking the opposite. Remember you are never in total control of your funds when it comes to centralized exchanges and CEX are prone to hacks, but for DEX like UNISWAP, your funds will be in your possession while you carry out swaps. Decentralized exchanges achieved huge milestones this year, the major propeller was Uniswap. Uniswap's large trading volumes and liquidity shows a lot of interest was drifted towards it, many other DEX which cloned Uniswap are fast rising even on other blockchains like TRON and BSC.

Agree that CEXs are not safer than DEXs (even Binance has been hacked, after all).
Agree that Uniswap clones that don't improve upon Uniswap's infrastructure are ill-fated.
Uniswap's true competition lives on Layer 2.

[KingsGambet19]

Large volume of transactions still goes to centralized exchanges but of course we love to have a decentralized wxchange where there is no KYC and limiting in transaction that if you have a large or volume of transactions to be made. But, whatever it would mean too risky for we do not know that platform can be a phishing or just waiting for the right time to run away with bitcoins. Being careful is a must may it be a decentralized or centralized.

[marilynmanson21]

I don't think 2020 belongs to DEX. Because it still has a long way run to go to beat the current top centralized exchanges. Indeed DEX did improve a lot in past year but still lacks behind in few things which can only be provided by CEX. But when Dex improves their platform or service in the market that might be the reason for them to rise above others in the future.

Agree, 2020 is not the year of DEX and that is not important in my opinion, the most important thing is that DEX and CEX can be accepted by many people and are used massively and safely.
However, you cannot expect much from DEX, because DEX only makes transactions easier so it is impossible to expect DEX services to be better than CEX.
CEX is able to provide many advantages because each trader's funds are stored there, so what DEX services do you expect? when funds are not deposited on the DEX, you don't even need to create an account to trade on DEX.

[nightflightcourt]

Large volume of transactions still goes to centralized exchanges but of course we love to have a decentralized wxchange where there is no KYC and limiting in transaction that if you have a large or volume of transactions to be made. But, whatever it would mean too risky for we do not know that platform can be a phishing or just waiting for the right time to run away with bitcoins. Being careful is a must may it be a decentralized or centralized.

Once DEXs can handle heavy liquidity and they're guaranteed to be safe, the last vestige of the CEX imo would be liability insurance if they have it - i.e. CEX gets hacked, loses BTC, insurance pays back some of the money. At that rate, though, CEXs would be more vulnerable than DEXs anyway.

However, you cannot expect much from DEX, because DEX only makes transactions easier so it is impossible to expect DEX services to be better than CEX.

I don't quite follow your logic here 

[zulfi125]

I think the Year 2020 does not belong to DEXs because few peoples are using DEXs. Most people use centralized exchange due to the fast liquidity to any altcoin and withdraw payment into any altcoin. DEXs have limited liquidity. Just one blockchain-based token is traded; this is truly centralized exchanges that are not more secure than DEXs, but Dexs users are less than centralized exchanges.