As the cryptocurrency market has matured, thousands of tokens have come online, creating a vibrant and fast-paced blockchain industry and global digital asset marketplace. With thousands of Ethereum ERC20 tokens currently trading, users have nowhere else to turn but centralized exchanges with limited token options and troubling security issues.
Decentralized exchanges, on the other hand, offer unparalleled security but lack the streamlined user experience and intuitive ease of use of their centralized counterparts. They also require users to maneuver through several convoluted steps before successfully making a trade and tend to lack liquidity for most trading pairs.
Dolomite, an exciting new decentralized exchange, bridges the gap between the ease of use and liquidity that centralized exchanges offer and the incredible security and token trading options of decentralized exchanges. By putting user experience at the forefront of development, Dolomite provides users with a streamlined trading experience across a vast array of ERC20 token trading pairs. One example is eliminating the need to manually wrap ETH to trade.
Before delving into the feature-rich details of the Dolomite decentralized exchange, portfolio management portal, and wallet, let’s first take a more in-depth look at the current trading options and their limitations.
Shortcomings of CurrentOptionsCurrently, cryptocurrency traders and investors use centralized exchanges to buy and sell billions of dollars worth of tokens on a daily basis. Centralized exchanges such as Binance, Coinbase, Upbit, Huobi, Bitfinex, and others provide users with simpler user interfaces and higher liquidity. However, this offering comes with one huge tradeoff ― security . Although safer options in the form of decentralized exchange options exist, they are far less popular, lack high liquidity, and most glaringly, offer user experiences that are not intuitive and are needlessly complicated.
Poor User Experience
In an attempt to improve the security of current exchanges, one major aspect was forgotten: user experience. It seems as though the developers behind decentralized exchanges have not experienced how needlessly frustrating it is to interact with their UI. Upon first glance at current decentralized exchanges, a couple of issues become very apparent. Glaring problems like poorly labeled graphs, non-intuitive market search bars, and nonexistent crypto-to-fiat value conversions line the front page of most DEXs. These problems prevent users from making quick, insightful decisions. In the fast-paced world of crypto trading with minute-to-minute price fluctuations and minimum user-safety-nets, clunky interfaces can result in losing money or leaving money on the table.
Current DEXs not only have bad layouts, but also force users to have multiple third-party applications open at all times. Having a DEX and other tools such as TradingView, CoinMarketCap, and other resources constantly up and running not only feels cumbersome, but can also add additional time-consuming steps to making transactions. Decentralized exchanges arose from a need for trading security and anonymity. However, when current solutions offer that in exchange for a hair-pulling user experience it is easy to see why many would rather expose themselves to the consequences than trade on a decentralized exchange.
Compromised Security
Centralized exchanges expose your crypto and personal information tohackers
By their nature, centralized exchanges are extremely vulnerable to hacks, resulting in stolen usernames, passwords, API keys, and tokens themselves. In recent years, centralized exchanges compromised over $1 billion worth of user funds:
2014: Mt. Gox hacked for $437million
2016: Bitfinex hacked for $72million
2018: Coincheck hacked for $530million
Users of centralized exchanges are also at risk of having their real, offline identities exposed due to the rigorous KYC (know your customer) standards in place at most exchanges. This means that to sign up and use a centralized exchange, users must upload and share sensitive documents such as passports, bank account details, and home addresses with centralized exchange authorities, which often operate overseas and with little to no oversight. It isn’t uncommon for security breaches at centralized exchanges to result in those sensitive documents being stolen and traded in dark web markets.
Low Liquidity
Low liquidity ― lack of orders on the market ― plague decentralized exchanges
At the time of posting, centralized exchange Binance ranked first in 24-hour trading volume with a reported $1.14 billion worth of trading. In contrast, Kyber Network, a decentralized exchange protocol that launched in the first half of 2018, recorded just $161,364 in 24-hour volume over the same period. IDEX, a popular decentralized exchange reported only $3.03 million in the same 24-hour window, still significantly trails its centralized counterparts.
Why do traders worldwide typically flock to centralized exchanges? The answer is simple: user experience and liquidity. Users looking to trade a given cryptocurrency want the ability to be able to buy or sell assets at competitive prices easily. Decentralized exchanges with already poor user experiences, clunky interfaces, and low liquidity can be incredibly slow to react to the fluctuations of the market. This is in large part why decentralized exchanges before Dolomite have suffered from far lower use than anticipated.
Dolomite was developed to address the significant downsides associated with centralized exchanges as well as the poor user experiences and liquidity offered by decentralized exchanges. Dolomite is an intuitive, next-generation solution that offers the benefits of an effortless and secure trading experience as well as the best long-term liquidity solution and order settlement mechanism via the Loopring Protocol.
Dolomite DEX
How will Dolomite solve the issues of user experience, security, and liquidity? Let’s start with user experience.
User ExperienceDolomite is built by crypto traders and investors, and is designed to make common user processes as simple and effortless as possible.
Ease ofUse
Trade right from your wallet without ever manually wrapping ETH or manually approving tokens
Dolomite simplifies cryptocurrency trading by bringing decentralized exchange, portfolio management, market analysis tools, and a secure wallet, all under one roof. With just a few clicks between you and the market, Dolomite’s intuitive user interface makes trading a breeze. Current solutions require lengthy sign-ups, a potential myriad of authenticator apps, and messy user experiences. By the time you’re able to trade, a significant amount of time has passed, and the likelihood of responding directly to market conditions has been greatly minimized. Dolomite’s seamless transition from wallet to exchange enables you to move in time with the market and never miss a beat.
Feature-Rich Wallet
Send and receive tokens from the feature-rich Dolomitewallet Dolomite’s decentralized exchange can be access