Future Development Trends of Exchanges and User Experience of Decentralized Trading Platforms

Although centralized exchanges offer many benefits, there have also been some security incidents and controversies recently. Large centralized exchanges are relatively safe but have a limited number of tradable coins; small exchanges have a diverse range of coins but come with some risks. In contrast, decentralized exchanges ( DEX ) are gradually becoming a market demand.

The Competitive Landscape of Future Exchanges

The competitive landscape of future exchanges may be as follows:

• Large exchanges: Mainly centralized exchanges will continue to dominate the market, focusing on trading mainstream coins and selected on-chain assets.
• Small and medium-sized exchanges: including reputable centralized and Decentralization exchanges, compatible with mainstream currencies and on-chain ecosystems.
• Small exchange: mainly based on Decentralization exchanges, primarily serving on-chain markets.

User Experience of Medium-sized Decentralization Exchange

Compared to centralized exchanges, decentralized exchanges avoid centralized risks, but there are some challenges in terms of user experience. The advantages of centralized exchanges include:

1. No cross-chain operation is required; you can trade immediately after recharging.
2. Provide a wide range of trading strategy products
3. Off-chain execution of transactions, lower fees, better trading depth

For medium-sized decentralized exchanges, enhancing the experience in these areas is key to competition. Currently, two decentralized exchanges have experiences that are relatively close to centralized exchanges, namely DeGate and UniversalX.

Features of DeGate

1. Seamless cross-chain experience

   • Supports mainstream coins and multi-chain asset trading
   • Trade directly with USDC or USDT without cross-chain operations.
   • General Gas mechanism, convenient for users to trade

2. Grid and Financial Products

   • Launch grid products and strategy square
   • Provide on-chain wealth management products

3. Low transaction fees

   • Layer2 Gas fees are extremely low
   • Mainstream coin trading orders are free of charge
   • The difference in the trading market is small

Features of UniversalX

1. Universal Account and Universal Gas

   • Supports multiple blockchain ecosystems
   • Achieve universal accounts and universal Gas across the entire chain
   • Users do not need to be aware of cross-chain operations

2. Token Information and Data

   • Provide comprehensive token information, including liquidity, holding addresses, security status, etc.

3. Trading Depth

   • The trading depth depends on the liquidity of the on-chain LP pool.

Similarities and Differences between the Two

Similarities:

• Supports seamless cross-chain trading and universal Gas
• Automatically generate EVM and Solana abstract accounts
• On-chain transaction depth depends on the LP pool.
• Provide mobile application
• Security audits conducted by multiple auditing institutions

Differences:

• UniversalX is based on a chain abstraction infrastructure that supports more blockchain ecosystems, and in the future, it may provide an experience closer to a centralized exchange while maintaining a high degree of Decentralization.
• DeGate combines order book model and chain abstraction technology, each having advantages in mainstream coin trading and on-chain trading.

With the continuous development of decentralized exchanges, they are gradually approaching the user experience of centralized exchanges while maintaining the advantages of decentralization. This trend will provide users with more diverse, secure, and convenient trading options.