What's your take on CEX platforms integrating DEX capabilities like swapping?

[shinratensei_]

quite literally so many exchange out there already have such feature of instantly swapping from few years ago, it's called instant swapping or something, but if what you mean is integrated with some of the dexes out there into their own platform then that's something new I guess.
Personally i have no problem with that, its a business after all and they always try to give the bleeding edge feature to their customer for the sake of keeping them in the platform.
so this could be very well a good business decision from their standpoint but personally I think cex and dexes could work together.
the main reason why cex are still leading the business right now is because the processing of transaction doesn't need to be in chain, meanwhile everything that dexes trying to process needs to be on chain which requires fee.
its even more problematic when you're dealing in high fee blockchain like ethereum.

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[jeraldskie11]

if you're using Binance with it's new feature "convert", you really don't have to pay for the fee.

Which feature are you referring to? I honestly just heard this about binance, would you mind giving me the page (without logging in if possible).
All I know is conversion feature of the dust balance to BNB, and even that requires a fee.

I have tried doing this in my pc without logging in my account but it works.

First, you have to "login as guest".
Second, click "All" on the left side of the screen.


Lastly, find "convert" then click it.


You can convert any cryptocurrency you want. It's clearly stated below that there will be no fee, and there is guaranteed price.

[cryptoaddictchie]

So, what's your take on CEX platforms integrating DEX capabilities?

Well they can still do that right? But the only difference is the feature is known as dex but in reality the system is centralized. They can use that all they wanted but people wont be swayed by thinking its working as decentralized approach sicne they have total control over it. I think its business situated at all so I dont mind if they imitate or do the dex process.

[rat03gopoh]

I have tried doing this in my pc without logging in my account but it works.

I see it, I haven't used binance for a long time. Only the mobile app is still installed and it doesn't show the benefit points like the wider view version. Have you proven it is free or at least cheaper when compared to the spot market? I see they also enable price slippage.

[hyudien]

So, what's your take on CEX platforms integrating DEX capabilities?

I find the Swap and Convert options on some CEX platforms to be very helpful and are features I always use. Because by providing a swap feature, without realizing it, the CEX platform is also trying to ensure that users do not exchange elsewhere as much as possible. Creating more ways to continue engagement in it and with low cost offers. This is an innovation that has been implemented in several CEX platforms that have personally been my choice so far. If you want to exchange small amounts of coins or tokens, such as on the ETH network, you don't need to worry about high fees.

[Wind_FURY]

Laughable that "swaps" are considered a DEX "feature" now integrated in centralized exchanges. Tell me I'm wrong, but the reason why decentralized exchanges only have swaps is because they can't, or it's too complicated, to implement limit orders decentrally. I believe they need to build centralized features to have the efficiency of their centralized counterparts.

[bitgolden]

So, what's your take on CEX platforms integrating DEX capabilities?

I find the Swap and Convert options on some CEX platforms to be very helpful and are features I always use. Because by providing a swap feature, without realizing it, the CEX platform is also trying to ensure that users do not exchange elsewhere as much as possible. Creating more ways to continue engagement in it and with low cost offers. This is an innovation that has been implemented in several CEX platforms that have personally been my choice so far. If you want to exchange small amounts of coins or tokens, such as on the ETH network, you don't need to worry about high fees.

That's basically the method they are using to make sure that they are more inclusive and get all the people they possibly could. I am not saying that is the best way, but it is certainly a great method that they could benefit from, that should always be the most important thing for them. I get that it is not that easy to handle it all, but it is not that bad and could be a very good deal.

The return of investment that people may have, is tied directly into how much they trade, and the more they trade the more they "may" make profit, they could of course lose too, but an exchange that makes you want to trade there all the time, will certainly make money no matter if you win or if you lose. They make profit from the trading fee, meaning that swap or exchange or trade, whatever you do, spot or futures or anything else, it doesn't matter to them, they just want you to trade as much as possible so that they could make more and more profit on the long run.

[South Park]

So, what's your take on CEX platforms integrating DEX capabilities?

I find the Swap and Convert options on some CEX platforms to be very helpful and are features I always use. Because by providing a swap feature, without realizing it, the CEX platform is also trying to ensure that users do not exchange elsewhere as much as possible. Creating more ways to continue engagement in it and with low cost offers. This is an innovation that has been implemented in several CEX platforms that have personally been my choice so far. If you want to exchange small amounts of coins or tokens, such as on the ETH network, you don't need to worry about high fees.

That is normal for any business, what a business wants is for their customers to use their services as much as they can and to avoid for their customers to use their competitors, as if you do and you like something about that other service then you could replace them, and if enough people did this then their revenue could drop significantly, so it is natural that in this case exchanges are implementing all the features they can in order to keep their clients happy and within their platform.

[bayu7adi]

I think it's their strategy to attract more users, considering that simple decentralized exchanges like Uniswap allow instant trading with always-updated rates. The use of DEX like this was quite popular on Ethereum and BSC networks, so perhaps by drawing in altcoin users who are used to such DEX, centralized exchanges can gain more users through this new feature adoption.

I still prefer order books and queues... they feel more familiar to me compared to the swapping method, where the rates sometimes can't compete with the actual market.

[lixer]

So, what's your take on CEX platforms integrating DEX capabilities?

Well they can still do that right? But the only difference is the feature is known as dex but in reality the system is centralized. They can use that all they wanted but people wont be swayed by thinking its working as decentralized approach sicne they have total control over it. I think its business situated at all so I dont mind if they imitate or do the dex process.

I think you guys are taking it way too out of proportion here. There is no imitating in this, it's a feature that they could add for the convenience of their customers and so that their customers don't go somewhere else for the same thing and I don't see anything bad or wrong in that. After all, they are running an exchange and it's a business for them, they are providing their services to us and earning money in return for that, so they will try their best to provide us with everything that we might need while trading or involved with cryptocurrencies so that we use them only.

Decentralized exchanges didn't invent that feature, it's not like it's someone's idea that is being stolen, it's just a way of converting cryptocurrencies back and forth without having to go through the spot market and making a limited trade to get it done, it's much quicker and easier, and if they can provide the feature, I don't see why not.

[joniboini]

I don't think the market for DEX will vanish even if CEX implements most of its features. Unless CEX somehow allows non-KYC/registered users to trade or replicate the DEX login-less feature (only using a web3 app like Metamask), DEX will still exist. If that does happen though, it will be interesting to see how long it will last, unless they are registered in some obscure location that has no laws (which is likely a scam anyway).

Personally, giving up personal information is one of the key reasons why I find using a new CEX a terrible alternative if one of my main liquidation methods/trading platforms breaks. I'd still use DEX or P2P even if most of the features I need are provided by the new exchange.

[Jatiluhung]

Actually quite good. It's just that sometimes the price during swap has a slight difference. It's just that it's more practical. similar to instant orders in regular Cex trading. I usually use the swap feature on Cex when I'm in a hurry. And I think Cex which has this also makes its customers more comfortable and complete. But even though the features are similar to Dex, we need to know that it is Cex ( centralized). And in the end, if you want to be truly uncentralized then it's still more comfortable to use the original Dex.

[Wind_FURY]

I think it's their strategy to attract more users, considering that simple decentralized exchanges like Uniswap allow instant trading with always-updated rates. The use of DEX like this was quite popular on Ethereum and BSC networks, so perhaps by drawing in altcoin users who are used to such DEX, centralized exchanges can gain more users through this new feature adoption.

Perhaps it's not that. DEX, probably, don't have the ability to build the features that allow users/traders to make limit orders, merely swaps which are truly just market orders. Users could already use market orders for instant conversions if they're in a hurry in CEX. "Swaps" are not a DEX-only feature.

I still prefer order books and queues... they feel more familiar to me compared to the swapping method, where the rates sometimes can't compete with the actual market.

It's also more efficient and cheaper. Although, KYC in centralized exchanges is something many user wants to avoid. The DEX gives everyone a less efficient alternative.

[Yamane_Keto]

I see it, I haven't used binance for a long time. Only the mobile app is still installed and it doesn't show the benefit points like the wider view version. Have you proven it is free or at least cheaper when compared to the spot market? I see they also enable price slippage.

I tried some CEX and all the platforms I used have this feature with the same name. You need to search for it and it provides a simple exchange without fees and at the same price as Bitcoin at the moment you click on the button. However, it is instantaneous and you cannot sell at a specific price or choose the exchange rate. Either you agree to the price or reject it.

I don't think the market for DEX will vanish even if CEX implements most of its features.

If the bills are passed in their current form, all DEXs will require users to complete KYC, so I assume DEX will be limited to p2p.

[nelson4lov]

It's nothing new, you can actually find a swapping feature in various CEXs, it's called "instant swap/exchange".

The implementation of swapping on CEX is actually more efficient, because they usually only charge a relatively cheap service fee and the settlement speed is only a few seconds like regular spot trading.

This is largely due to the fact that it is permissioned. If those swaps on CEX were actually permissionless as DEX are then they'd likely take around the same amount of time. In uniswap, there are plenty checks that needs to be done like slippage, if the pool reserves are enough to service the swa, etc. In the case of CEX, the process is streamlined since there's plenty of liquidity in place that is powered by market makers.

[Cookdata]

So, what's your take on CEX platforms integrating DEX capabilities?

I'm also having the same questions running through my mind with such features I'm seeing. However, these are what I think.

• As of last year bull run, decentralized exchanges like Uniswap, Pancakeswap, Thor swap, and other dexes had incredible run and all were surrounded by different customers and since centralized exchanges are profit oriented, they are doing that to have their customers use one when there is demand, they get more profits from them.
• They want to take out decentralized exchanges out of the market. There is still speculations surrounding CZ and Binance for killing FTX, who knows if this is another trap to kick out decentralized exchange out of the market since another bull run is fast approaching as many expected.

Combining Cex and Dex is nonsense and pure trap, why create a seed for me that is connected to the internet and it's coming from an exchange, who will belive such that it's safe for me to use it as back up when I know that it will have a back door. Very soon, we will start to hear from customers that they have started to lose their coins that are been kept in exchanges.

Cex and Dex two different world, they should never coexist even for once.

[Potato Chips]

I can't speak for other people but I go on dex or pseudo-dex for the better security and privacy which most of these centralized exchanges won't be able to offer because they're fully custodial with KYC and AML polices which mind you, varies on extent as some may be relatively strict compared to others.

But honestly, as for swapping, I don't think it's necessarily a dex capability. I view it as an in general exchange thing.

[TakeItEasy]

So, what's your take on CEX platforms integrating DEX capabilities?

We are talking and comparing about their little issues I have faced till today, first of all if I compare CEX with the DEX then surely the security system of CEX would be far better than we can expect from the DEX, because the CEX, we can't connect that much with other Dapps and the DEX we can connect with other too. And even I had heard mostly hacking about the DEX Exchange even due to their security issues. This is just my opinion although everyone has its own views how he look things. The market liquidity has already been higher and much higher in the CEX as compared to the DEX and when project list a token on the DEX they didn't provide a very high liquidity on DEX even though I have seen some good projects too.

[taufik123]

-snip-
Combining Cex and Dex is nonsense and pure trap, why create a seed for me that is connected to the internet and it's coming from an exchange, who will belive such that it's safe for me to use it as back up when I know that it will have a back door. Very soon, we will start to hear from customers that they have started to lose their coins that are been kept in exchanges.

Cex and Dex two different world, they should never coexist even for once.

But in fact, now many popular Exchange platforms such as Binance combine CEX and DEX and are now also available with Web3 which makes it easier for users to connect to Binance using the address created on Binance's Dex.

It all depends on whether people want to use it or not.
Problems with security or vulnerability to hacking, it's a choice of whether to use it or not.

Now new investors are no longer critical of CEX or DEX issues, they can only use what has been created and provided, especially with quite complete features.
But all do need to be aware and your key is not your asset. DWYOR.

[OcTradism]

But in fact, now many popular Exchange platforms such as Binance combine CEX and DEX and are now also available with Web3 which makes it easier for users to connect to Binance using the address created on Binance's Dex.

They are capable to build those products, DEX and Web3 wallets, why they refuse to do it if it brings income to their business?

It is what Binance and other centralized exchanges have been doing, building fake DEX and also web3 wallets, as one of ways to increase their business income and at the same time help them to lose customers to actual decentralized exchanges.

It all depends on whether people want to use it or not.
Problems with security or vulnerability to hacking, it's a choice of whether to use it or not.

Now new investors are no longer critical of CEX or DEX issues, they can only use what has been created and provided, especially with quite complete features.
But all do need to be aware and your key is not your asset. DWYOR.

They can use actual decentralized exchanges, with no KYC policy
https://kycnot.me/

With Web3 wallets, they must be careful with token approval access to their wallets. There are three tools to revoke smart contract access.
How to revoke token approvals
https://app.unrekt.net/
https://revoke.cash/
https://etherscan.io/tokenapprovalchecker