Traditional banking has often been criticized and seen as a bit of a villain for its rigidity, predatory practices and opaque systems. However, it is the backbone of our social structure and is still the safest place to keep and put your money to work. But this may change soon. 😮

Over the last few years, public interest in exploring banking alternatives unique to the digital age has increased. The rise of cryptocurrencies has enabled decentralized finance to be transformative in the financial landscape, promising more accessible and fair financial solutions compared to centralized banking models.

While DEXs represent a significant step towards a decentralized system, they often fall short of embodying the full vision that a bank can offer in providing comprehensive financial services. While DEXs are praised for facilitating person-to-person trading without relying on central authorities, the reality is that they are not yet fully decentralized.

To compete with centralized exchanges, DEFI needs to continue creating and adapting solutions to take projects from idea to operational. For example, stabble, a DEX on Solana, has taken steps to expand its Automated Market Maker (AMM) model. It distinguishes itself by allowing liquidity providers to engage in internal and external arbitrage trading while addressing issues such as temporary loss and low returns for liquidity providers.

While it will take a long time to replace traditional banking, the emergence and increased use of defi represents a shift in finance that promises greater autonomy and accessibility for a broader demographic. But for DEXs to thrive, they must continue to evolve, particularly through improved liquidity and transaction speeds to compete effectively with centralized exchanges.