Binance "DEX" Review


#1

Please note that at the moment of writing Binance Chain and Binance DEX have not been launched yet. The material presented in this article is our forecast into how Binance DEX will work from a technical perspective, what features will be available, and what it means for the crypto ecosystem.


This is a companion discussion topic for the original entry at https://blog.saturn.network/binance-dex-review/

#2

From this site (https://binance-chain.github.io/acknowledgement.html#tendermint-and-cosmos) it can be concluded that the Binance Dex exactly will be based on Cosmos SDK and not guessing about the future implementation.


#3

We now have a follow up article!


#4

Great insights, thanks! Yes, Binance Chain will definitely be a centralized chain, I don’t doubt it, but I still think it will allow users to be in control of their private keys on Binance DEX. I think this will be a significant and valuable feature in crypto trading and one of the reasons why Binance DEX even if not truly decentralized will be popular. Exchanges that do not move towards allowing their users to control private keys will be left behind.


#5

This aspect is covered in the article. Sure, you will control the private keys, but in order to trade i.e. Bitcoin you will have to hand in the REAL BTC to binance for custody, and you will get a BTC-stablecoin on Binance chain that your private key will control.

What I am worried about with this approach is things like

https://www.ccn.com/gemini-can-freeze-its-usd-pegged-cryptocurrency-at-any-time-researcher

Users of GUSD still control the private keys - they just don’t control the collateral that is USD. Does this make sense to you?

I am 100% that Binance DEX will be popular, and I am saying that as a competitor and decentralization advocate. I still think that calling it a DEX is a lie and shady marketing, and that real DEXs can have their UI and economics improved to a point where they are safer, easier and more profitable to use than and centralized exchange, including fake DEX.


#6


#7

Yet another confirmation of what we published a week ago. This is what Binance thinks decentralization looks like.

It’s not about how many servers you have, dummy, it’s about who owns them, and what does it take to become one of the yellow nodes.


#8

Binance DEX: a Peer-to-Binance-to-Peer Electronic Exchange System