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 around the world, and this isn’t the only instance of traders losing their money on CEXs. The benefits of self-custody wallets and the use of decentralized finance (DeFi) applications have become more evident.
However, once retailers set foot in DeFi, they can be confused by the complexity of decentralized applications and the wide range of options, adding to the confusion.
DeFi is not user friendly
One might think that DeFi would not be a search for crypto users, but that is not the case. The burgeoning sector has several obstacles that hamper mass adoption.
First of all, the DeFi market is fragmented and hosts multiple applications offering the same services. The problem is that it’s difficult 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 and requires multi-level interaction with wallets, applications and processes in less intuitive ways. Crypto users familiar with CEXs alone would surely miss the straightforward user experience.
Other issues with DeFi include the lack of liquidity compared to major CEXs and hesitation in entrusting your funds to trusted solutions.
Enter DEX aggregators
To avoid the confusion of accessing a tangled 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 the best deals and fees for users.
Additionally, some DEX aggregators emphasize user experience to make trading as similar as possible to trading on a CEX. An example is YetAnotherDefi (YAD) – a multichain swap router that aggregates liquidity across large blockchains from all leading DeFi pools.
YAD can be the ideal starting point for crypto users looking to enter the DeFi market. It allows you to exchange around 3,500 tokens hosted on six major blockchains including Ethereum. By exchanging tokens on YAD, crypto users avoid the risks of theft, hacking attacks, and bankruptcy that exist with CEXs. YAD relies on decentralized, non-custodial and censorship-resistant technology, giving users more freedom to use their crypto funds as they please.
Another major benefit that YAD offers 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 UI to the advanced screen, allowing them to monitor the underlying route like Uniswap, as well as change the slippage tolerance and gas price.
In summary, DEX aggregators like YAD offer the following advantages:
- They aggregate the tariffs and automatically select the best tariff for selected token pairs.
- Transparent transaction fees – users can change the gas price.
- There is a single DeFi onboarding process. Traders do not have to familiarize themselves with a new DEX every time.
- Users grant permissions and permissions only to one service provider (smart contract) – the aggregator itself.
With aggregators like YAD, crypto users can safely store their tokens in their personal wallets as DEXs have no control over their funds. Token holders can trade without regret that other DEXs may offer better rates for certain pairs – the aggregator will automatically select the best offers. Thanks to DEX aggregators, the migration from CEXs to DEXs can be done smoothly and safely.
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