Dealing with Current DEX Limitations

The move towards decentralized finance (DeFi) brings to light several significant hurdles within the current ecosystem of decentralized exchanges (DEXs):

• Latency: Transaction times on DEXs can be slow, which is a major setback in markets where timing can make or break a trade.

• Liquidity: Finding matches for trades, especially for less common tokens, can be challenging. This results in wider price spreads and more slippage than one would hope for.

• Costs: High transaction fees are a barrier, particularly during times of network congestion, making it costly for regular or small trades.

• Cross-Chain Compatibility: The lack of capability to facilitate trades across different blockchains limits the flexibility and reach of DEXs.

• Profit Sharing (or lack thereof): Traditional DEX models typically do not share protocol revenues with users beyond standard liquidity incentives. This leaves the broader user base without any direct financial stake in the platform’s success, missing a key opportunity to foster stronger community engagement and loyalty.

These issues frame the critical areas that need addressing to improve the decentralized trading experience. Our platform, Pairs, directly targets these challenges with the aim of enhancing the efficiency, accessibility, and overall functionality of DeFi swaps.