We often view cryptocurrencies and traditional finance as competing with each other, which is not the case. The only major difference between the two ecosystems is the decentralized version of the architecture in crypto. Legacy financial ecosystems, on the other hand, are characterized by a centralized approach. Cryptocurrencies currently include both centralized and decentralized projects such as financial instruments, yield platforms and CeDeFi exchanges.
Recent innovations have led to the release of solutions with a codependent system that integrates Centralized Finance (CeFi) with Decentralized Finance (DeFi). This combined innovation, known as CeDeFi, is making waves in the cryptocurrency market, with a number of emerging CeDeFi platforms gaining traction. While Binance was one of the first companies to explore CeDeFi, there are now multiple platforms serving the CeDeFi market.
We prepared one CeDeFi Exchange List filled with some of the best CeDeFi exchanges in the current market.
CoinZoom
US based crypto trading provider
CoinZoom is based in the United States with the goal of introducing a one-stop shop that supports cryptocurrency trading and real-world consumption of digital assets. As a regulated exchange, CoinZoom allows users to invest in more than 30 listed tokens and offers a Visa debit card for crypto spending.
CoinZoom now serves users in over 192 countries. It also provides access to different financial products depending on the customer’s home country. Zoom owners can receive additional benefits such as access to VIP programs and fee discounts.
CoinZoom also focuses on cryptocurrency regulations and has been registered by FinCEN as a money services company. For its users in the United States, it offers Federal Deposit Insurance Corporation (FDIC) insurance that covers deposits up to $250,000. It mainly houses its user resources in cold stores that are offline, reducing the risk of theft. Users can also set up two-factor authentication to secure their personal holdings.
CoinZoom bridges the gap between traditional finance and cryptocurrencies through its native ZOOM token. Users can generate passive income by using ZOOM by supporting Algorand and Dash.
Unizen
a hybrid crypto exchange
Unizen is an exchange ecosystem that combines an infrastructure that includes both centralized and decentralized elements. This smart exchange is considered a pioneer in its field and aims to solve problems with liquidity, slippage and KYC hurdles. It is one of the emerging CeDeFi projects that exist today that seems to be gaining traction among investors and traders.
Unizen has formed various partnerships with well-known companies like AllianceBlock to solve problems with liquidity complaints. Unizen is ready to launch multi-dynamic staking capabilities. All of this allows users to search for a wide range of cryptocurrency products.
Unizen has a hybrid exchange with three main components – Unizen custom logic, third party modules and Unizen modules. The Unizen modules include integrated products such as the platform’s CEZ, while the third-party modules support DeFi integrations. The custom logic is responsible for hosting additional trading features such as social sentiment indicators and a cross-chain trade aggregation algorithm.
Unizen owns the code of its powerful trading engine. This allows swapping functionalities to be used throughout the ecosystem wherever it makes sense. The Unizen trade aggregator is a crucial element in the kernel of their operating system.
connection
a CeFi exchange platform run by DAOs
Nexo is originally a CeFi company offering a range of products including a utility token, NEXO, an exchange and card lending services. It is run by decentralized autonomous organizations that allow token holders to vote on future developments. Nexo’s main goal is to bridge the gap by offering DeFi developers the opportunity to innovate in a regulatory compliant manner.
Nexo offers DeFi innovation a regulated building ecosystem through expertise, licensing and industry connections. While Nexo is primarily centralized, its CeDeFi solutions can support regulated DeFi innovation.
Nexo’s CeFi business delivers DeFi technologies through a regulated building ecosystem thanks to its knowledge, industry relationships and licenses. These CeDeFi solutions enable controlled DeFi developments while the project maintains its centralized aspects.
ByBit
a CeDeFi-centric ecosystem
ByBit is another exchange that offers its centralized products in a more decentralized way than others. This allows users to experience a more CeDeFi-centric ecosystem built around the platform’s existing products. ByBit is supported by CEO BenZhou in its efforts into the CeDeFi domain.
Typically, ByBit is a cryptocurrency derivatives market that sells ether and bitcoin futures. It has a diverse user base mostly from Asia. ByBit offers users two options – the first is to follow legacy financial standards and the other is to build decentralized products.
ByBit differs from most of its competitors as its product offers perpetual swap futures. They differ from a normal futures product in that they do not have an expiry date. It currently offers perpetual swaps on Bitcoin, EOS, Ether and Ripple XRP. Although supply is limited, these products are not easy to find on other exchanges or trading platforms.
Binance SmartChain
Binance’s own CeDeFi architecture
Known as one of the leading global crypto exchanges, Binance is at the forefront with its CeDeFi offerings and is one of the Top CeDeFi platforms consists. Binance recently launched the Binance Smart Chain, which allows DeFi developers to integrate with decentralized projects. BSC is now home to several DeFi projects leveraging both centralized and decentralized elements.
Binance’s smart chain was one of the first attempts to delve into the CeDeFi domain. This has helped it become one of the largest networks with its proprietary exchanges, stablecoins, derivatives, cross-chain protocols, NFTs, insurance, lending protocols, yield farming, oracles and more.
Binance Smart Chain has emerged as a hub for DeFi natives and has begun to compete with Ethereum in daily volume. However, some in the crypto community are still skeptical about the CeDeFi architecture.
SmartFi
a real credit service powered by CeDeFi
SmartFi is a CeDeFi cryptocurrency lending service integrated with a number of traditional financial institutions. It pegs its native token, SmartFi USD, to the asset traded on the network using an on-chain hedging mechanism. SmartFi offers a minable stablecoin that can be returned in fiat for a full refund of the purchase price.
SmartFi’s financial model beats bank rates. It is also more reliable than liquidity mining, staking, and yield farming. SmartFi raised over $10 million in its first few weeks at the end of 2021 and has been able to maintain a stable market value despite market volatility.
ChangeX
a CeDeFi ecosystem
ChangeX is a hybrid DeFi project that completed its ICO this year. It presents a CeDeFi ecosystem that brings together crypto, DeFi and banking under one roof. At the heart of the ecosystem is the ChangeX non-custodial wallet. It embodies true composability by introducing all the tools needed to navigate the DeFi space. Some of the features it possesses include personal IBAN and SEPA integration, cross-chain functionality, a crypto Visa card, and leveraged staking.
The native token CHANGE is based on an HRC20 token and is deflationary. The token acts as a bridge between the end user and the blockchain networks by enabling cross-chain operations. It is also responsible for creating synergies between stablecoin lending and staking. The exchange will issue CHANGE tokens to those who stake PoS assets in the app. The expected APR of this function is between 65% and 80%.
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