Decentralized exchanges may be the fastest-growing field in Open Finance, and a growing force in the digital economy.

Over the past 30 days, the average daily trading volume of decentralized exchanges has reached US$46.2 million.

Depending on the agreement, the value obtained by decentralized exchange tokens is between 0.3% and 0.01% of the exchange value.

Success story

Decentralized exchanges may be the biggest success story in open finance in 2020.

Over the past 30 days, approximately $1.38 billion of transactions have been conducted on decentralized exchanges. Over the past 18 months, the average monthly growth rate for decentralized exchanges has been 32%.

In order to solve this problem, the decentralized exchange based on the liquidity pool has optimized the functions and parameters of asset storage. For example, Curve uses a pricing formula to optimize asset pairs that are relatively stable with each other (for example, the conversion of stablecoins to stablecoins). A Balancer enables liquidity providers to better control which assets and how many are in these asset pools, and asset pool owners can customize fees to make providing liquidity more attractive.

Decentralized exchanges may also separate the traditional exchange business into many different services in the digital economy. As a result, many sources of income owned by traditional exchanges will be cut. Unlike traditional exchanges, decentralized exchanges do not have proprietary trading software as a source of income, because anyone can build their own exchange interface on one of the protocols. Similarly, due to the transparent nature provided by the blockchain, the feeding of data is completely trustworthy. And anyone can freely build value-added services on top.