CEX-DEX parity refers to a state where centralized exchanges (CEX) and decentralized exchanges (DEX) offer comparable levels of liquidity, execution efficiency, and user experience. It indicates a convergence in the operational capabilities and market depth between these distinct trading platforms. Achieving this balance is a significant goal for many decentralized finance protocols.
Context
The debate surrounding CEX-DEX parity centers on regulatory compliance, security vulnerabilities, and transaction costs. As DEX technology matures, the pursuit of CEX-DEX parity aims to shift more trading volume to decentralized platforms, offering users greater control over their assets. Future developments in layer-2 scaling solutions and cross-chain interoperability are critical for advancing this objective.
High-speed on-chain CLOBs have achieved CEX-grade execution, driving $1T+ in monthly volume and establishing a defensible network effect in derivatives.
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