DEX as mixer?

[ulhaq]

If one uses a mixer, you are at risk of getting dirty coins. Isn't it the same thing with a DEX? Doesn't a DEX effectively become a mixer and put you at the same risk?

If one uses a DEX for trading primarily, and then later withdraws the coins from a DEX and wants to get access to other unavailable coins through a centralised exchange, will the centralised exchange block the account? If you are using a DEX, are you limiting your options in the future?

It seems like a DEX cannot do anything to limit stolen inputs, so won't all the illicit users be preferably drawn to DEXes?

[1715092589]

1715092589

[jackg]

Some are traceable and some aren't. A lot are more traceable than a mixer. Waves documents everything on its blockchain, I was going to show a transaction but didn't want to violate privacy by using one just in case people didn't know that was a thing.

Uniswap also leaves a strong trace behind. Other exchanges like bisq do hide a trace but won't exchanges block other stuff too? I haven't seen things like yobit be blocked from sending to major exchanges and they can also be used for privacy reasons.

[exstasie]

Some are traceable and some aren't.

Which ones aren't? Admittedly I may not be up to date, but I was under the impression that all DEXs left obvious blockchain evidence of swaps. I haven't heard of any chain that can hide all the underlying contracts involved yet.

For this reason, I assume they are a bad choice for mixing. An adversary could easily just look to the blockchain to find the originating outputs.

If one uses a mixer, you are at risk of getting dirty coins. Isn't it the same thing with a DEX? Doesn't a DEX effectively become a mixer and put you at the same risk?

Since there is no AML/KYC involved, blockchain analysis companies (and by extension, exchanges) may consider outputs from them both to be "high-risk," along with those from gambling sites, non-KYC exchanges, etc.