As much as I love DEXes and I believe they will eventually take away most of the CEX operations, they are still not close to mass adoption.
With all the power given by decentralization and self-custody, they imply a certain level of responsibility most people are not accustomed to in the financial products they use in TradFi. On top of that, every once in a while, you get to "What now?" sort of moments, when you seem blocked or without solutions, or you need to research a lot before you find a way out.
I still wonder if the majority of people will ever be interested in taking control into their own hands. Delegating responsibility makes things seem easy. And in some cases, that's the right thing to do. But is it so when your assets are managed or in a fractional reserves system and your ROI or even safety of investments compared to the profit / safety of the investment firm / bank are put in balance, and you come up on the short side? Not to mention all the delays, requests of additional paperwork and so on, that a bank may subject you to, to give you access to your own money. When that happens, I bet everyone would love to have full unrestricted access to their own wallet.
A few days ago I added another small amount to the LEO-CACAO pool on Maya. Or I tried. I'm not sure exactly what happened, if it was an error somewhere or I forgot to sign a second transaction to add the CACAO, but the end result was that I funded only the LEO side of the pool and not the CACAO side. And the new position remained as pending, waiting for me to add the CACAO tokens.
Despite different attempts to fund CACAO to the pending position from different interfaces, that didn't work.
What eventually worked (but strangely, not before I removed the existing full LEO-CACAO position), was to remove the pending position, and then re-add the entire LEO-CACAO position.
I want to say I don't have complaints regarding the LeoDex interface in this respect. Even though I couldn't withdraw my pending position from LeoDex (nor add it, for that matter), I can see progress on the interface from week to week. Some of the interfaces that are above LeoDex in swap fees don't even bother implementing liquidity pools yet, only swaps, which seem way simpler to manage and generate income for the respective interfaces (unlike LPs?). But having a feature rich interface will eventually make LeoDex stand out because let's be honest, there's room! None of the Maya interfaces are light years away.
On DEXes, we might still get to some strange situations. When fees are low, almost no harm done, maybe some time wasted researching, but if you need to pay extra transactions on something like Ethereum or Bitcoin to find a workaround, they start becoming expensive. Well, time is expensive too, so it would be perfect if alternatives could be found without searching for too long.
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If I don't count my interactions with crypto.com (as it is my only fiat-crypto offramp), I can't remember when I was using a CEX for swapping any tokens! Maybe 6 months, or a year, or more?
Truth to be told, I'm dealing a lot less with shitcoins than before... lol... 😂
Same here. They almost don't exist for me anymore. And with recent partnerships from interfaces dealing with DEX protocols to become on/off ramps, they become even less needed.
For me, I just feel like we have to continue to make do with the DeX until they get better, which might take a little longer. It's just not as good as the CEXs at the moment, we always have these other sides that always have to contemplate on, but surely we can just keep hoping the DEX will work overtime
To be honest, I don't even think much about CEXes when it comes to me. I don't think I have used any of them in recent history, unless I want to off ramp something (and that hasn't happened recently either). But based on my experience before and putting myself in the shoes of a newcomer in the crypto world, it is an good exercise to understand where things need to be improved for DEXes.
Irrespective, I also think the CEXEs have their places and function as well. I have used them in the past, but the constant fear of always losing one's coin and assets. It's always there, the fear is always there. The DEX on the other hand has a long way to go
There will be people who prefer them, just like there are ETF investors instead of native Bitcoin buyers.
For me, it's the ownership aspect that's why I always prefer using DEXs, even though they can be hard to navigate. Getting stuck on the process of transferring or swapping tokens is an opportunity to learn and one often realizes that's there's more room for growth. I think better documentations, FAQs, on the interface will help a lot in making information readily available for users who encounter errors while using the interface.
Absolutely! The ownership aspect is something we are not accustomed to in the financial world, at least not in the last 100 years or so. Or worse, people think they own their savings and investments in TradFi, when in fact, they don't.
I agree a better extensive documentation for various situations is necessary to help people out when they get stuck. But to be honest, this space evolves so quickly, that any documentation would soon be obsolete after putting it together.
Yes, they're merely renting on the TradFi system, which over time always means more limitations on what they can and cannot do with their funds. I think early adopters of this ownership aspect will find it much better than the Tradfi system when they get used to it.
So true, this space is evolving very fast, that type of format will get outdated pretty fast, Unless there's some way to auto-update the document without human intervention.
That's a good idea. I remember back when I was coding (so way before AIs became popular) there were tools that extracted the parameters of the functions defined in a module or class and created the base documentation for it, remaining for a human to actually add comments regarding the proper use of each parameter and examples of usage, on top of their name and type which were extracted automatically.
Right, it's possible a second or third iteration of that can be made with AI, and a human can review it every week or two to make sure the documentation is well updated.
Well, that was best suited for software development documentation. For users of DEXes, a different kind of documentation is needed based on describing features and FAQs. I'm not sure if an AI can be trained to write and update part of this kind of documentation or if it can, if it's worth it. Maybe an AI that records human actions (like those of testers or support crew) in the UI and is able to describe those action in words, either written or spoken.
Did you also report this one-sided liquidity bug to the INLEO guys so they can fix it?
I filed a support ticket and talked with Nifty about it. He suggested an alternative for the time being. But if they weren't, they are aware of it now.
Hi my number 1 G, I absolutely get that DEXes offer a lot of freedom, but the complexity is tough. It feels like you need to be an expert just to navigate them. Will they ever be user-friendly enough for everyone?🥰🥰
Hard to say. There are tradeoffs. To make things more user friendly, probably the user needs to give away some of the control on the wallets. Like interfaces have the posting authority on Hive, for example, otherwise you'd have to approve every single upvote, comment, post, etc.
I think you're right I didn't think of it that one though... I guess we'll have to see what happens in the future 🥰🥰
I’m sorry I’d be asking you so many questions on your blog. I’m new to crypto. What is DEX and CEX?
That's ok. We all have questions, and newcomers have many of them, for sure. CEX means centralized exchange. For example, Binance, Coinbase, OKX, etc. They act as intermediaries between you, the customer, and the blockchain world, and usually hold your funds in custody. DEX means decentralized exchange. DEXes don't have an intermediary between you and the blockchain world, they don't take your funds in their custody (funds remain in your wallet or in smart contracts you enter by your own choice), but you need to keep your private key(s) safe and be careful what operations you approve. You are responsible for the security of your own wallet.
DEX's are works in progress. It sucks to hear that LeoDex isn't working.
As for the comparison, I think DEX's have a long way to go. It's also annoying to get money into the DEX world. However, your tokens are in your own wallet.
That's why I prefer DEXes over CEXes at any time. At some point, even if there is an issue, a solution will be found, if you don't buy into some scam/rug pull tokens.
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