Blockchain Projects Regain Control With DEX Infrastructure Layer

Cryptocurrency exchanges have been vital in the widespread adoption of blockchain technology. However, the industry’s heavy reliance on these exchanges and traders comes at a cost to blockchain projects and developers, creating friction for those building applications on the app layer.

Listing a project on a major centralized exchange (CEX) can be expensive, often involving six-figure listing fees and additional monthly charges for market makers to ensure liquidity. This high-cost drains value from crypto projects and makes attracting sustainable liquidity difficult.

Furthermore, DApp builders lose control of their token’s liquidity and value when following an exchange’s policies and fees. Listing on centralized exchanges can also expose projects to counterparty risk.

Decentralized exchanges (DEXs) offer reduced counterparty risk and lower fees. Moreover, they grant app builders more control over their token’s liquidity and enhance security. DEXs provide non-custodial trading, reduced security risks, and no KYC obligations.

However, DEXs face limitations, such as network transaction capacity constraints, increasing fees with higher trading volumes, and inferior capital efficiency and liquidity compared to CEXs. Moreover, DEXs prioritize revenue generation for liquidity providers and token holders rather than the projects that use them.

A Solution For Customizable And Efficient DEXs

A possible solution to these issues is to create DEXs that are as efficient as CEXs. Furthermore, projects can have ownership of their own DEX. Native, a DEX infrastructure layer, offers a toolkit. With this toolkit, projects can become their own DEX. This cuts out intermediaries and reduces costs.

Native’s proprietary integrations with professional liquidity providers and market makers account for over 30% of daily crypto trading volume, giving projects a significant advantage. The modular technology allows teams to create customized exchanges with any desired liquidity sources, pricing models, and trading pairs.

Native can access a wide range of liquidity resources through its off-chain pricing and on-chain RFQs (requests for quotes) approach, which enables projects to use market makers and professional liquidity providers for on-chain liquidity. Liquidity can come from the project, the community, or external sources such as automated market makers (AMMs), aggregators, and professional liquidity providers.

By providing a decentralized infrastructure layer for DEXs, Native addresses the liquidity and control issues faced by blockchain projects. This innovative approach empowers crypto entrepreneurs, benefiting blockchain projects from increased revenue and deeper liquidity. DApp users can also enjoy a more seamless experience by swapping native tokens directly within the app.

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Native, which launched its private beta in March and opened the platform to the public in April, has secured strategic partnerships with numerous blockchain projects, including Ankr, NodeReal, Metaverse.ai, Augmentlabs.io, CyberConnect, QuestN, LightNet, and Byte.City.