Post
Topic
Board Economics
Re: More than USD 1.5 bln has been stolen from exchanges. Here’s a recap
by
atcsecure
on 21/01/2019, 15:04:05 UTC
Interesting to see how even with those numbers, centralized exchanges still rule the market while DEXs (decentralized exchanges) are yet to reach mainstream status. You would think that by now DEX would be at least competing head-to-head with the big exchanges but only a minority of the crypto users actually use DEX, I guess the low liquidity is an issue, but that should be the price to pay for having to trade in a decentralized exchange.

while DEX services have improved from the earliest iterations like etherdelta, they're still not nearly as reliable for real-time trading and especially algo trading. bots/algos are employed by many, many spot market traders whether to enter/exit positions over time, make markets, arbitrage the market, scalp, etc. this doesn't easily translate to decentralized exchanges at all. it requires a boatload of new coding logic and i assume employing algos on DEX is just way less dependable since even manual trading results in somewhat regular errors. lack of liquidity would compound these problems. this is a big part of the reason why all the liquidity is still on centralized exchanges.

Blocknets DEX was designed from the ground up to have a bot-friendly API and already has bots written and deployed.  API specs are here https://api.blocknet.co/#xbridge-api and a simple-bot is available in my github @ https://github.com/atcsecure/dxbottools.  

Blocknets DEX has handled over 10k trades in the last 4 weeks alone (since launching its beta program), and it is 100% decentralized.

Checkout https://blockdx.co/charts