{"id":30067,"date":"2020-10-14T07:00:29","date_gmt":"2020-10-14T04:00:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=30067"},"modified":"2025-08-27T20:23:06","modified_gmt":"2025-08-27T17:23:06","slug":"dexs-without-native-tokens-relic-of-the-past-or-viable-path-forward","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/dexs-without-native-tokens-relic-of-the-past-or-viable-path-forward\/","title":{"rendered":"DEXs Without Native Tokens \u2014 Relic of the Past or Viable Path Forward?"},"content":{"rendered":"<p>Yield farming is one of the most topical trends in the decentralized finance (DeFi) space. The decentralized exchange (DEX) segment is no exception\u2014many trading venues have issued native tokens. Among such platforms is Uniswap, which has emerged as a leader in total value locked.<\/p>\n<p><!--more--><\/p>\n<p>Nevertheless there are still DEXs that operate without a native token. ForkLog presents readers with a brief overview of several such platforms.<\/p>\n<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Issuing a native token is not a guarantee of success, but may drive activity on the platform.<\/li>\n<li>In the DEX segment, liquidity-pool-based platforms with automated market-maker functionality predominate.<\/li>\n<\/ul>\n<\/div>\n<p>Most market participants still prefer trading cryptocurrencies on centralized exchanges (CEXs), offering significant liquidity and a familiar interface for many.<\/p>\n<p>However, more people recognise the risks to which CEXs are exposed and turn to DEXs. The latter are non-custodial venues (do not hold users&#8217; funds), using smart contracts and on-chain transactions, removing the need for an intermediary.<\/p>\n<h2 class=\"wp-block-heading\">Trading volumes on exchanges rise, DEX token prices fall<\/h2>\n<p>The rapid rise in popularity of DEXs is evident in the impressive growth in trading volumes.<\/p>\n<div class=\"wp-block-image wp-image-113110 size-full\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1462\" height=\"826\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-325.png\" alt=\"DEX \u0431\u0435\u0437 \u043d\u0430\u0442\u0438\u0432\u043d\u043e\u0433\u043e \u0442\u043e\u043a\u0435\u043d\u0430 \u2014 \u043f\u0435\u0440\u0435\u0436\u0438\u0442\u043e\u043a \u043f\u0440\u043e\u0448\u043b\u043e\u0433\u043e \u0438\u043b\u0438 \u0436\u0438\u0437\u043d\u0435\u0441\u043f\u043e\u0441\u043e\u0431\u043d\u043e\u0435 \u043d\u0430\u043f\u0440\u0430\u0432\u043b\u0435\u043d\u0438\u0435?\" class=\"wp-image-113110\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-325.png 1462w, https:\/\/u1f987.com\/wp-content\/uploads\/1-325-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-325-1024x579.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/1-325-768x434.png 768w\" sizes=\"auto, (max-width: 1462px) 100vw, 1462px\" \/><figcaption>Source: ForkLog analytical report for September 2020.<\/figcaption><\/figure>\n<\/div>\n<p>In September, the turnover of decentralized exchanges <a href=\"https:\/\/u1f987.com\/en\/news\/dex-trading-volumes-in-september-topped-23-billion\">surpassed<\/a> $23.5 billion. The rise from August was more than 100%.<\/p>\n<p>In this segment Uniswap dominates outright \u2014 its share of total trading volume is close to 70%.<\/p>\n<div class=\"wp-block-image size-full wp-image-113111\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"794\" height=\"500\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-320.png\" alt=\"DEX \u0431\u0435\u0437 \u043d\u0430\u0442\u0438\u0432\u043d\u043e\u0433\u043e \u0442\u043e\u043a\u0435\u043d\u0430 \u2014 \u043f\u0435\u0440\u0435\u0436\u0438\u0442\u043e\u043a \u043f\u0440\u043e\u0448\u043b\u043e\u0433\u043e \u0438\u043b\u0438 \u0436\u0438\u0437\u043d\u0435\u0441\u043f\u043e\u0441\u043e\u0431\u043d\u043e\u0435 \u043d\u0430\u043f\u0440\u0430\u0432\u043b\u0435\u043d\u0438\u0435?\" class=\"wp-image-113111\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-320.png 794w, https:\/\/u1f987.com\/wp-content\/uploads\/2-320-300x189.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/2-320-768x484.png 768w\" sizes=\"auto, (max-width: 794px) 100vw, 794px\" \/><figcaption>Share of DEX in total trading volume over 7 days. Data: ForkLog September report and Dune Analytics as of 1.10.2020.<\/figcaption><\/figure>\n<\/div>\n<p>Competition between the two fundamentally different categories of trading venues is tightening. At the end of August, Uniswap&#8217;s daily turnover <a href=\"https:\/\/u1f987.com\/en\/news\/uniswap-trading-volume-surpasses-coinbases-figure\">surpassed<\/a> the trading volume of Coinbase, the largest U.S. crypto exchange.<\/p>\n<p><script async=\"\" src=\"https:\/\/telegram.org\/js\/telegram-widget.js?12\" data-telegram-post=\"forklog\/15318\" data-width=\"100%\"><\/script><\/p>\n<p>Some experts believe the rapid growth of activity in the DEX segment is temporary. For example, FTX founder Sam Bankman-Fried <a href=\"https:\/\/u1f987.com\/en\/news\/opinion-dex-trading-volumes-are-a-total-sham\">believes<\/a> that volumes on them will evaporate as excessive incentives are exhausted. He regards the hype around so\u2011called yield farming and the demand for governance tokens as example of such incentives.<\/p>\n<p>Governance tokens exist for many DEXs, including Uniswap. The UNI token issued by the exchange <a href=\"https:\/\/u1f987.com\/en\/news\/uniswap-launches-uni-governance-token\">proved to be listed<\/a> on the listings of leading centralized exchanges and <a href=\"https:\/\/u1f987.com\/en\/news\/native-uniswap-token-enters-the-top-50-assets-by-market-capitalization\">entered<\/a> the top 50 projects by market capitalization.<\/p>\n<p>The success of Uniswap and similar DeFi platforms is being attempted to be replicated by other projects. Many market observers see a parallel with the ICO craze of 2017.<\/p>\n<blockquote class=\"wp-block-quote twitter-tweet is-layout-flow wp-block-quote-is-layout-flow\">\n<p dir=\"ltr\" lang=\"en\">What I worry the Uniswap success will start is that companies without a proper business model will now all be releasing \u201cvalueless\u201d governance tokens. This will just dilute the market, exhaust investors even more and eventually the market could look just like in 2017<\/p>\n<p>\u2014 Larry Cermak (@lawmaster) <a href=\"https:\/\/twitter.com\/lawmaster\/status\/1307323730448855041?ref_src=twsrc%5Etfw\">September 19, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cYou\u2019d have to be a fool not to start using DeFi protocols and infrastructure apps that don\u2019t have a native token, given that they may follow Uniswap\u2019s example.\u201d<\/p>\n<\/blockquote>\n<p>Nevertheless, given the segment\u2019s growth pace and the overall unpredictability of the crypto industry, everything could change in the mid-term.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\"https:\/\/t.me\/forkloglive\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog FEED<\/a> \u2014 full news feed, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yield farming is one of the most topical trends in the decentralized finance (DeFi) space. The decentralized exchange (DEX) segment is no exception\u2014many trading venues have issued native tokens. Among such platforms is Uniswap, which has risen to the lead in total value locked.<\/p>\n","protected":false},"author":1,"featured_media":30068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[1093,787],"class_list":["post-30067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-defi","tag-dex"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=30067"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30067\/revisions"}],"predecessor-version":[{"id":30069,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30067\/revisions\/30069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/30068"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=30067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=30067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=30067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}