Uniswap: The People’s DEX

As you probably know by now, we're fans of decentralized exchange in general. One project in particular, Uniswap, has taken the entire ecosystem by storm.

Chart reminder from last week:

(Source)

Centralized exchanges 1) pose risks as potential hacks or unexpected loss of keys (see yesterday’s post), 2) may be easily targeted by sovereign states as they’re at the mercy of authorities (Russia, China), 3) frequently exhibit rent seeking behavior or are just shadily run (many centralized exchanges permit wash trading and may even trade against their customers), and 4) often aggressively surveil customers and collect sensitive (and hackable) personal data.

The problem with DEX, on the other hand, has been volumes. And Qiao’s written about their limitations several times already.

But there’s a new player in town.