DeFi Summer 2020 saw an explosion of decentralized exchanges (DEXs), with many offering liquidity mining and yield farming opportunities^[1]. These incentives fueled significant token price growth, with Uniswap's UNI and PancakeSwap's CAKE surging 301x and 206x, respectively. However, concerns about tokenomics and the harsh crypto winter led to sharp declines, with UNI and CAKE dropping 93% and 98% from their highs. Many investors suffered substantial losses. While DEXs themselves continue to function effectively, their tokens have fallen out of favor with many investors, including myself.


However, there are signs of a potential turnaround. Uniswap recently launched a proposal to revamp its governance system, aiming to incentivize active participation and strengthen decision-making. This proposal, spearheaded by Uniswap Foundation's governance lead Erin Koen, focuses on distributing protocol fees to UNI holders who stake and delegate their tokens. This shift aims to create a more engaged and responsible community by directly linking rewards to governance participation.

"I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens," Erin Koen wrote in an X post^[2].

This proposal has the potential to significantly impact UNI's price. By creating incentives for continued buying, staking, and delegation, it could increase buying pressure and reduce selling pressure, leading to stronger price support. Notably, UNI saw a 60% surge following the proposal's announcement. While other DEX tokens have also seen growth without similar offerings, it's possible they may adopt similar strategies to improve their tokenomics and support their prices.

Based on the improved tokenomics and strong technical analysis (Dragon EMA34W support), I have added UNI and CAKE to my watchlist for potential investment after the upcoming Bitcoin halving. However, this is not financial advice.

I'd like to hear your opinion on DEX's tokens:

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

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References:
[1] A Look Back at 2020, the Year of DeFi
[2] Uniswap's UNI Jumps 60% on Proposal to Reward Token Holders in Major Governance Overhaul

I have had invested on defi tokens, the most was on cake followed by biswap and pancakebunny. The last one turned scam so nothing there. I might have bought cake on the wrong time as I had to sell it for a loss. And for biswap it was neither profit nor loss.
New dex and dex token would still be a large thing in bull as we have newer and popular L1 and L2 networks where there are just a few DEX. Though the price rise might not be as significant as most people have already experienced the volatility of dex token and its inflationary nature.
I have not directly invested on any DEX this time. I had some jupiter tokens but sold them on small loss. I however am participating on new DEX point contest where they would airdrop their tokens to early stakers. Kinza finance and kamino are some where I'm staking in hope of good airdrops in near future.

1. bought BSW and it's still going very nice till now. im still in unrealized profit coz im not willing to sell this one before bitcoin will reach new ATH probably next year.
2. I think yes but this totally depends on the movement from bitcoin. Bitcoin gets hyped then altcoin follows. As long as dex will able to implement the same proposal introduced by uni to reward the holders, then it's possible for the dex to get hyped. Im still eagerly awaiting the details on how the new proposal will be working on uni.
3. It's a bit too late consider bitcoin is always going up. I have thought to put some money on uni but i was not doing it.  

You wrote one point that DEX continues to function despite all odds (not the exact words) which I appreciate so much in part of your write-up and which is also a basis to know that DEX is a very good project to buy. Not to mention their decentralised nature. The response to your question is indeed very simple as we see how they are performing during this bullish season. They are just a Go project in my opinion.

As for your questions, let me take them one after the other;

1. Well, I did not invest in the last bull season of cryptocurrency, so I missed entirely the DEX investments. However, since the last half of 2023, Yes, I've invested in DEX and it has been profitable since then. The average DEX tokens are better than the average cryptos in performance, while some are so spectacular.

2. It has already returned in 2023 if you are reading your chart well. We may only see more surprising big bullish movements between 2024 and 2025.

3. Of course, just like other cryptocurrencies in different fields and categories, I do not want to miss out on any of them as we do not know what the future certainly holds. As for the DEX, I am sticking to four for now, and they are; UNI, DYDX, BAKE and CAKE.

1. Yeah, I have been an investor in specially PancakeSwap & UniSwap for a long time though i got good profits from PancakeSwap but i sold my UNI with a little bit losses.
2. It’s quite difficult to predict right now.
3. If i will get any potential new DEX's tokens then of course i will invest but i will never make invest with old DEX's tokens.

My condolences, maybe you bought DEX tokens at the end of the uptrend and their price started falling as soon as BTC lost its momentum. I hope you did not forget to place a stop loss order to protect your capital.

As I stated, I believe DEX is making a comeback with DeFi and DEX tokens are gaining traction thanks to the tokenomics update from UniSwap. So, I think UNI and CAKE will be the tokens that continue to attract your attention in the uptrend. Hope this time if you invest in them, you will make profits instead of losses.

yes why not if they are going to share their revenue with their community like UNI is going to do. If the gas fees for using the blockchain go down then the number of dex users will grow exponentially. Due to the mandatory KYC in most of the centralized exchanges many users are forced to use dex's. Also there are a large number of DeFi users in the industry and most of the DeFi application users also use dex. So as long as DeFi adoption is ongoing the number of dex user will grow and the demands of their token will also grow.

Every investment from crypto industry is high risky you must have to research properly best return. many cex, dex are got scammed and many dex token price fail a lot. so no one can guarantee for any token. if someone interested to invest money on any token including dex token then i will suggest them to do there own research and invest money by there own riak if they have enough ability to loss there money. coz crypto will not guarantee someone for profit for any strategy

Same, but if I'm with my friend and he talks to me about some tokens that are worth investing into, I almost always go for it because of all that he's told me, I've invested in it and so far, I've got about 5 or 6 of those tokens or NFTs or NFT games that have gained me a considerable profit but you're right even if you do invest in bear market, you can't guarantee that you're going to make a profit, I guess you're right though, DYOR is the best thing for investing in DEX tokens or for any crypto related investments, you don't want your money stuck in a limbo hoping that the token or crypto investment that you've put your money into would grow in profit, some of them just don't do it like that so it's imperative that you do the research or you risk your money for nothing. Seems that the trend for DEX tokens are a thing now, there's some talks in my circle about them but I haven't checked any of them yet.