The sudden collapse of what was once the second-largest crypto exchange in the world has accelerated the migration from centralized exchanges (CEXs) to decentralized exchanges (DEXs). The now-bankrupt FTX still owes the equivalent of billions of dollars to users across the globe, and this is not the only instance of traders losing their funds with CEXs. The benefits of self-custody wallets and the use of decentralized finance (DeFi) applications have become more evident.
However, once retail traders set foot in DeFi, they may be perplexed by the complexity of decentralized applications and the wide range of options, which adds to the confusion.
DeFi is not user-friendly
One could think that DeFi wouldn’t be a quest for crypto users, but this is not the case. The emerging sector has several barriers that hinder mass adoption.
To begin with, the DeFi market is fragmented and hosts multiple applications offering the same services. The problem is that it is challenging to navigate the DeFi space and find the best deal in terms of fees, security and benefits.
The user experience with most DeFi applications is cumbersome, requiring a multi-step interaction with wallets, applications and processes in a less intuitive way. Crypto users who are familiar with CEXs alone would surely miss the straightforward user experience.
Other problems in DeFi are the lack of liquidity compared to major CEXs and the hesitance to entrust your funds to trustless solutions.
Enter DEX aggregators
To avoid the confusion of accessing an entangled network of DEXs and yield farming opportunities, crypto users can venture into the DeFi space with the help of a DEX aggregator. Such platforms automatically provide more liquidity and find users the best deals and fees.
On top of that, some DEX aggregators emphasize user experience to make trading as similar to that on a CEX as possible. One example is YetAnotherDefi (YAD) — a multichain swap router aggregating liquidity across major blockchains from all leading DeFi pools.
YAD may be the ideal starting point for crypto users who want to enter the DeFi market. It allows you to swap about 3,500 tokens hosted on six major blockchains, including Ethereum. By swapping tokens on YAD, crypto users avoid the risks of theft, hacking attacks and bankruptcy, which are persistent with CEXs. YAD relies on a decentralized, noncustodial and censorship-resistant technology that gives users more freedom to use their crypto funds as they wish.
Another major benefit that YAD brings to traders is a user experience that is more straightforward compared to most CEXs. Additionally, crypto users who are more experienced with DeFi can switch from the simple mode interface to the advanced screen, allowing them to monitor the underlying route, such as Uniswap, as well as change the slippage tolerance and gas price.
To recap, DEX aggregators like YAD offer the following benefits:
- They aggregate rates and automatically pick the best rate for selected token pairs.
- Transparent transaction fees — users are able to change the gas price.
- There is a single DeFi onboarding process. Traders don’t have to get familiar with a new DEX every time.
- Users grant allowances and permissions only to one service provider (smart contract) — the aggregator itself.
With aggregators like YAD, crypto users can keep their tokens safely in their personal wallets, as DEXs have no control over their funds. Tokenholders can trade without regretting that other DEXs may offer better rates for certain pairs — the aggregator automatically picks the best deals. Thanks to DEX aggregators, the migration from CEXs to DEXs can be smooth and secure.
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