1. Liquidity Depth
CEX (Binance):
With $3.17 billion trading volume for the BTC/USDT pair alone, and $26.7 billion total daily Spot, Binance enjoys massive market depth that ensures large transactions are executed with negligible slippage.
DEX (Uniswap V3 – Ethereum):
WETH/USDT pools provide liquidity within multiple fee ranges; the 0.3% fee level achieves a depth of up to $412.5 million within a ±1% price range, and the 0.05% range achieves a similar depth of about $200 million, but the total of $1.55 billion does not match the depth of CEX.
DEX (BNB Chain):
With a trading volume of $12 billion for the last day, DEXs on BNB Chain – such as PancakeSwap and MDEX – offer relatively competitive depth in BNB/USDT and CAKE/USDT pairs, with less slippage compared to some DEXs on Ethereum when transactions exceed $1 million.
2. Fees
CEX (Binance):
Maker fee: 0.10%
Taker fee: 0.15%
Fees can be reduced to 0.011%–0.023% when using BNB and entering high VIP levels.
DEX (Uniswap V3):
Fee levels of 0.01%, 0.05%, 0.30%, and 1.00%; liquidity providers choose the appropriate range based on the pair's volatility and profit strategy.
DEX (BNB Chain):
PancakeSwap charges a total fee of 0.25%, distributed as 0.17% to liquidity providers, 0.03% for the burn program, and 0.05% for the protocol treasury.
3. Usability
CEX is suitable for institutional traders and high-volume traders looking for instant and large execution with high liquidity and extremely low fees if they are BNB users.
DEX is suitable for liquidity providers looking for Auto-Compounding opportunities and Concentrated Liquidity strategies (Uniswap V3), and the BNB Chain DEX provides higher execution speed and lower gas fees.
What is your choice as a trader: massive liquidity and fast execution via CEX or flexible fee models and automated profit potential via DEX? Share your opinion!