Recently, I compared the trading mechanisms between a leading DEX and mainstream centralized exchanges and discovered some interesting differences.
First, let's talk about funding rates—this is a key point. On centralized exchanges, short positions pay funding fees to long positions; but on certain DEXs, the logic is reversed—long positions actually pay fees to short positions. The rate fluctuations are vastly different too, making them incomparable. Honestly, this design is somewhat confusing.
More frustrating is the stop-loss issue. I placed a stop-loss order on a certain DEX last night with the price set at 0.2424. When the price moved to 0.23—which should have definitely triggered it—I checked this morning and the order was still sitting there, unfilled. That's pretty ridiculous. Centralized exchanges execute stop-losses relatively reliably, but there are clearly execution gaps here.
After these experiences, DEXs still have considerable distance to go in terms of maturity compared to established exchanges. The fundamental mechanism design and order execution stability both need refinement. If newcomers are entering, they should pay close attention to these details to avoid losses.
Recently, I compared the trading mechanisms between a leading DEX and mainstream centralized exchanges and discovered some interesting differences.
First, let's talk about funding rates—this is a key point. On centralized exchanges, short positions pay funding fees to long positions; but on certain DEXs, the logic is reversed—long positions actually pay fees to short positions. The rate fluctuations are vastly different too, making them incomparable. Honestly, this design is somewhat confusing.
More frustrating is the stop-loss issue. I placed a stop-loss order on a certain DEX last night with the price set at 0.2424. When the price moved to 0.23—which should have definitely triggered it—I checked this morning and the order was still sitting there, unfilled. That's pretty ridiculous. Centralized exchanges execute stop-losses relatively reliably, but there are clearly execution gaps here.
After these experiences, DEXs still have considerable distance to go in terms of maturity compared to established exchanges. The fundamental mechanism design and order execution stability both need refinement. If newcomers are entering, they should pay close attention to these details to avoid losses.