The Problems With Other DEXs
Nowadays most DeFi transactions are handled on the Ethereum network. This has led to increased congestion in the network, which has made transactions on Ethereum slow and expensive. Investors and traders across the world have found themselves having to pay upwards of $50 in gas fees (or more) just to make a single transaction.
Whether a user is trying to make a $10 trade or a $10,000 trade on Uniswap, costs reach upwards of $50+, depending on the network congestion at the time of the transaction. This has made Ethereum transactions too expensive for most retail traders to participate in. Sidechains, layer 2 (L2) solutions, and even different blockchains such as the Binance Smart Chain (BSC) have emerged as a result of this market need. Some of these solutions have seen an increase in volume and have even gained some traction. Yet they each come with qualms of inaccessibility, lack of adoption, and centralisation.[4]
Today, some decentralized exchanges are being either developed or put into operation, but these projects cannot indeed meet the needs of actual usage.
Problems mainly include:
• Low liquidity levels, low volume
• Inefficient and slow transaction speed, poor user experience
• Limited by cross-chain trading technical problems, limited trading cryptocurrency
types, etc.
• The majority of the DEXs are trading platforms for Ethereum and ERC-20 tokens.
The main problem is the association with the main chain limits transaction performance and the efficiency is low. Also, due to the complexity of cross-chain transactions, cryptocurrency selections in trade are limited.
Setting the Ethereum blockchain issues aside, one of the problems we see from most decentralized exchanges is that they rely solely on users manually adding their trades. We have seen projects allowing users to discover the best trades possible but we have not seen them integrated on a DEX that would permit users to automatically make transactions while the market is in good condition. Although human effort has always been the key to success of almost all technologies, it’s about time we create something different to save our users from losing time and money while exploring the crypto market!
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