Post
Topic
Board Exchanges
Re: Now let’s talk about CEX or DEX
by
nelson4lov
on 01/08/2023, 21:51:04 UTC


You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

~Snipped
I don’t ignore uniswap, just turned off by their limited liquidity. Unlike cex, DEX typing have lower liquidity due to the absent of market makers and order books yeah. Don’t you think this can result in wider spreads between buying and selling prices? And prolly a potentially slippage when executing larger trades ??

Yes, Liquidity has been one of the major issues with DEX. Uniswap made some head way with its liquidity mining program + rewards LP some fees earned by the protocol but it didn't really solve the problem and the spreads are still not tight. Trading larger amount results in wider spreads. Imo, it's still an evolving narrative and I won't say it's a major success yet until liquidity is as seamless as CEX market making is. Still a long way to go but a step taking in the right direction.