In all of this, what is the DEx narrative and why is it relevant?
This story is about individuals pointing the finger at the corporate-government complex that extracts wealth through taxes and inflation. This is the light between the crumbling stone walls of the TradFi system and the bird’s transition to fractional reserve banking. Users should pay attention to the team they entrust their money to. They must be careful and accountable for the funds they allocate to the protocol. Cryptocurrencies still have a lot of scammers and dishonest practitioners. However, fraud is not limited to distributed actors. Mt. Gox, FTX, Chelsea, etc. are examples of CExs that have gone out of business and allocated user funds using legal conservatorship agreements to support these decisions. In some cases, DEx offers products such as yield farming that are not available on centralized exchanges. In other cases, the same products, such as exchanges and loans, are offered in a peer-to-peer trustless manner.
Over the next few years, DEx will increasingly come face to face with regulators and centralized actors. For humanity to reap the rewards, users must be aware of this and participate in the DeFi evolution of human finance. Banking the unbanked is a phrase often used in the cryptocurrency industry. This is a noble goal, but achieving it on a large scale requires participation in the movement and active promotion. This could mean purchasing the protocol underlying assets directly and staking or farming them. This may mean allocating funds to loans. DEx is a mechanism to achieve a decentralized alternative to the centralized vision of traditional finance. Finally, following the DEx narrative of the future will allow users to increase their resources in an environment with exponential potential for value generation. Investing in the DEx protocol is one of the visions of a financially free future for many investors. Of course, there are other stories and these will be discussed in more depth in future articles.
Disclaimer: This is not financial advice. I am a cow and I love to eat cereal. Any knowledge gained from this post is incidental only and you are responsible for your own financial decisions. Invest wisely and do your own research.