😱 Always 'getting cut' while playing DeFi? Don’t be silly! You are not alone in facing these pain points of traditional DEX!
Hello, all you 'post-00s' and DeFi adventurers in the crypto world! Do you feel like every time you surf in a decentralized exchange (DEX), you keep crashing into reefs, and your wallet has a hole in it? Don't doubt yourself; it's not that your skills are poor, but that the traditional AMM-type DEX itself has several 'minefields' that leave everyone exhausted!
🚨 Minefield One: Slippage Loss — Money just 'whoosh' disappears!
Have you ever encountered this situation: you are optimistic about a coin, ready to buy in large quantities, but when you hit the trade button, the actual execution price is worlds apart from what you expected? This is the notoriously infamous 'slippage' in the DeFi space!
🚨 Minefield Two: Fragmented Liquidity — Want to trade in large amounts? Not a chance!
The liquidity pool of traditional DEX is like dividing a vast ocean into countless small ponds. The water volume (liquidity) of each pond (trading pair) is limited. When you want to swim in a big pond (large trades), you find yourself only splashing around in a small puddle, unable to fully exert yourself!
The result is that your large orders are difficult to execute quickly, funds are dispersed, and efficiency is low; trying to buy or sell a large amount is simply harder than climbing to the sky!
🚨 Minefield Three: Impermanent Loss — LPs are basically 'blood and sweat money'!
If you are a liquidity provider (LP), putting your coins into the liquidity pool to earn transaction fees, then the term 'impermanent loss' must strike fear into your heart. It's like you bind two dollars (two types of tokens) together and lend them to others, only for one to suddenly skyrocket or plummet, causing your total asset value to shrink instead!
When the market fluctuates, the asset value of LPs can 'shrink', even worse than if you simply kept the coins in your wallet. Earning a bit of transaction fees, but losing your principal, this is not making money; it's fundamentally 'blood and sweat money'!
The 'Achilles' heel' of traditional DEX: the liquidity pool is your opponent!
The root of these pain points is actually hidden in the traditional AMM model: the liquidity pool of DEX itself is the 'counterparty' to all trades.
🌟 But don't cry! The DeFi world is undergoing a 'great evolution'!
The good news is that these problems are not without solutions! In the following article, we will unveil a revolutionary solution: MYX! How it perfectly solves the headaches that traditional DEX faces through innovative mechanisms, turning your DeFi experience from 'being cut' to 'lying down and winning'! Stay tuned for our sharing tomorrow!
Have you also been troubled by these pain points today? Feel free to share your 'bloody history' in the comments!