The sudden collapse of what was once the second largest crypto exchange in the world has accelerated the transition from centralized exchanges (CEX) to decentralized exchanges (DEX). Now bankrupt FTX is still must the equivalent of billions of dollars for users around the world, and this is not the only time that traders lose their funds on CEX. The benefits of self-storage wallets and the use of decentralized finance (DeFi) applications have become more apparent.
However, once retail traders have set foot on DeFi, they may be taken aback by the complexity of decentralized applications and the wide array of options, adding to the confusion.
DeFi is not user friendly
One would think that DeFi would not be a quest for crypto users, but that is not the case. In an emerging sector, there are several barriers to mass adoption.
To begin with, the DeFi market is fragmented and contains multiple applications offering the same services. The problem is that it’s hard to navigate the DeFi space and find the best deal in terms of fees, security, and benefits.
The user experience for most DeFi applications is cumbersome, requiring multi-step interaction with wallets, applications, and processes in a less intuitive way. Cryptocurrency users only familiar with CEX will surely miss the simple user interface.
Other problems in DeFi are the lack of liquidity compared to the major CEXs and the hesitation to entrust your funds to unreliable solutions.
Sign in to DEX aggregators
To avoid confusion when accessing the confusing DEX network and income opportunities, cryptocurrency users can enter the DeFi space with a DEX aggregator. Such platforms automatically provide more liquidity and find users with the best offers and commissions.
In addition, some DEX aggregators pay special attention to the user experience in order to make trading as similar as possible to trading on CEX. One example one more defense (YAD) is a multi-chain swap router pooling liquidity on mainstream blockchains from all leading DeFi pools.
YAD can be an ideal starting point for crypto users looking to enter the DeFi market. It allows the exchange of about 3,500 tokens hosted on six major blockchains, including Ethereum. By exchanging tokens for YAD, cryptocurrency users avoid the risks of theft, hacking and bankruptcy that are stored on CEX. YAD relies on decentralized, non-custodial and censorship-resistant technology that gives users more freedom to use their cryptocurrency funds as they see fit.
Another major benefit that YAD brings to traders is the simpler user interface compared to most CEXs. In addition, cryptocurrency users more experienced with DeFi can switch from the simple mode interface to the advanced screen, allowing them to track a basic route such as Uniswap, as well as change slippage tolerance and gas price.
To recap, DEX aggregators like YAD offer the following benefits:
- They aggregate rates and automatically select the best rate for selected token pairs.
- Transparent transaction fees – users can change the gas price.
- There is a single DeFi registration process. Traders do not need to familiarize themselves with a new DEX every time.
- Users grant permissions and permissions to only one service provider (smart contract) – the aggregator itself.
With aggregators like YAD, cryptocurrency users can securely store their tokens in their personal wallets since DEXs do not control their funds. Token holders can trade without regretting that other DEXs may offer better rates for certain pairs – the aggregator automatically selects the best deals. With DEX aggregators, the transition from CEX to DEX can be smooth and secure.
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Credit : cointelegraph.com
