TEXs: How to Solve the User Experience Challenge of DEXs
As the cryptocurrency market flourishes, decentralized exchanges (DEXs) have gradually come into the spotlight. According to the latest data from CoinMarketCap, the market share of DEX has been increasing year by year. Taking the trading volume of the top 10 global exchanges as an example, Uniswap’s trading volume reaches $1.3 billion daily, Dydx is $973 million, and PancakeSwap is $250 million. In contrast, centralized exchanges (CEXs) still dominate in terms of trading volume, with Binance at $57.9 billion, Okex at $15.033 billion, and Coinbase at $1.28 billion.
Why do users choose CEX?
Although DEX has gradually eaten into the market share of centralized exchanges (CEXs) in terms of trading volume after the FTX collapse, there is still a significant gap compared to centralized exchanges (CEXs). This indicates that while decentralized exchanges (DEXs) has advantages in security and transparency, there is still considerable room for improvement in attracting users. The main issues are the poor user experience and high entry barriers for centralized exchanges (CEXs).
User experience and ease of use: Decentralized exchanges (DEXs) requires users to have a certain level of technical knowledge, managing private keys, interacting with wallets, and understanding smart contracts, which can be a learning curve and barrier for new users. Centralized exchanges (CEXs) provides a familiar interface and trading experience, often similar to traditional stock trading platforms, making it easier for newcomers to enter the cryptocurrency field and start trading without facing a steep learning curve.
Trading speed and cost: As decentralized exchanges (DEXs) is entirely based on blockchain technology, trading speed is limited by the performance of the blockchain. For example, congestion on the Ethereum network can lead to transaction delays, affecting user experience. Additionally, users need to pay gas fees, and during times of network congestion, users may need to pay higher transaction costs.
Trading liquidity: Centralized exchanges (CEXs) usually have higher liquidity and trading volume than decentralized exchanges (DEXs). This is crucial for traders, as it ensures their orders can be quickly executed at the best price. Lower liquidity on decentralized exchanges (DEXs) can result in slippage and unfavorable prices for traders.
So, is there a solution that allows decentralized exchanges (DEXs) to have the same user experience as centralized exchanges (CEXs)? That would be Transparency Exchanges (TEXs).
TEXs: Solving the User Experience Problem of DEXs
To address the user experience issues of decentralized exchanges(DEXs), a new type of exchange format — Transparent Exchanges (TEXs) — has emerged. Transparent Exchanges (TEXs) combine the security and transparency advantages of decentralized exchanges(DEXs) with the user experience advantages of centralized exchanges(CEXs), aiming to provide users with a better trading environment.
Transparent Exchanges (TEXs) improve the user experience of decentralized exchanges(CEXs) in the following aspects:
Registration and login: Users can easily register and log in using their mobile phone or email, just like in Web 2.0 applications.
Trading experience: Professional market K-line, simple trading interface and process, download the APP, and trade anytime, anywhere.
Trading speed and cost: By introducing Layer-2 solutions, Transparent Exchanges (TEXs) can offer faster trading speeds and lower gas costs, thus improving user experience.
Trading depth: Experience unlimited liquidity, just like centralized exchanges(CEXs).
Account recovery with ERC-4337: To facilitate users in safely recovering their accounts, Transparent Exchanges (TEXs) innovatively uses smart contract accounts (ERC-4337), account abstraction, and social recovery methods.
As a new type of exchange, Transparent Exchanges (TEXs) successfully solves the user experience problems of decentralized exchanges(DEXs). While maintaining the security and transparency advantages of decentralized exchanges(DEXs), it achieves the same user experience as decentralized exchanges(CEXs) , making Transparent Exchanges (TEXs) highly competitive and potentially becoming the new direction for future exchanges development.
