Binance "DEX" Review


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


From this site ( it can be concluded that the Binance Dex exactly will be based on Cosmos SDK and not guessing about the future implementation.


We now have a follow up article!


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.


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

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.



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.


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


the binance dex has open source code or not ,

why is so important thing not included in the review?


Open-source or not does not matter as much as you might think. What really matters are roles.

A DEX is an interaction protocol for traders, for people. The real question is what roles are in this protocol, and how does one take up a new role? In DEX like Saturn there is only one role - trader, and anybody can take it without asking for our permission. On Binance DEX there are two roles - traders and binance admins. Binance admins will provide liquidity, but in return they will require KYC and they will be able to prevent you from getting your BTC or fiat out of their system. They have more control over their chain than a 51% attacker.


the base of dex is open source


I disagree, there are several open-source platforms that claim to be a DEX because parts of their code run on top of a blockchain. Yet several of them can still stop you from trading or be censored by the powers at be - so are they truly decentralized exchanges? If you have not already I recommend reading the following article:

I believe we are entering a dangerous territory at the moment where the definition of “decentralized” seems to be becoming broader or more relaxed, and people with the “marketing juice” such as Binance are stamping it on products to simple bring in more sales. They won’t be the first, I believe this will become the new norm for crypto exchanges.


opps, i just realize that Saturn dex is not open source project. correct me if i am wrong , thank you


Currently it is not, we do believe in being open-source and are moving towards that goal. You are right that being open-source can play an important part in becoming “more decentralized” - I just wanted to say that being open-source does not necessarily make your project decentralized.