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description: User-Centric Limitations Decentralized Trading Faces
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# Problems in Current DEX Sphere

### 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.
