Problems in Current DEX Sphere

User-Centric Limitations Decentralized Trading Faces

1. High Transaction Costs

Most DEXs operate on networks like Ethereum where gas fees fluctuate wildly, sometimes exceeding the value of small trades. Layer 2 solutions help but add complexity.

2. Liquidity Fragmentation

Liquidity is scattered across multiple chains and identical trading pairs, forcing users to hunt for best prices and resulting in poor execution for larger orders.

3. Cross-Chain Limitations

Trading across different blockchains requires risky bridges or wrapped assets, which are frequent targets for hacks and often involve centralized custodians.

4. Capital Inefficiency

Traditional AMM designs lock liquidity into fixed price curves, leading to large amounts of idle capital and exposure to impermanent loss.