We are in the midst of a decentralized trading revolution. DEXs, the slower, illiquid, cumbersome cousins of their centralized counterparts, have been reinvented. The class of 2020 boasts higher throughput, better UX, greater liquidity and, thanks to the expansion of Ethereum-based assets, including stablecoins and synthetic BTC, greater trading options.
No more swapping shitcoins whose half life is hemorrhaging while you’re waiting for the MetaMask transaction to clear; no more grappling with interfaces as friendly as a nightclub bouncer: just click, connect, and swap.
At least that’s the dream being sold by defi proponents. But what about the reality? To find out, I decided to take DeversiFi for a test drive.
DeversiFi vs Other DEXs
DeversiFi is from the team who brought you Ethfinex, which was brought to you by the team who brought you Bitfinex. That’s a fine lineage, and those are big shoes for a humble DEX to fill. The measure of DeversiFi’s capabilities lies in its features and performance, however, not its team. Because when you’re trading non-custodially, you don’t have to trust third parties to care for your coins. That’s the beauty of it.
No KYC. No custodied crypto waiting to be hacked. No “enhanced verification” checks when you try to withdraw. The biggest drawback to DEXs to date has been the slow trading engine, high fees, low liquidity, and lack of desirable assets: if the token you’re seeking isn’t an ERC20, odds are you can’t obtain it from your favorite DEX.
DeversiFi tackles one of these problems head on, utilizing StarkWare’s batching technology to settle up to 9,000 trades per second. In reality, no DEX is likely to be tested to that capacity at this stage in the game. What matters is that in use, the platform is fast and responsive, and there’s no hitting “Buy” only to discover that someone has beaten you to the button, a frequent occurrence on IDEX.
It will come as no surprise, given its pedigree, to learn that DeversiFi’s interface bears more than a passing resemblance to Bitfinex and Ethfinex. If you’ve no history with the two, though, DeversiFi’s platform tutorial will show you the ropes. Thereafter, it’s just a case of authenticating using MetaMask (MM) and depositing into your DeversiFi account, using MM to sign each transaction.
DeversiFi Is the Most Defi DEX You Will Ever Use
DeversiFi should be judged on the trading experience it provides: Liquidity. UX. Speed. Intuitiveness. Trading pairs. You know; the usual stuff that makes or breaks an exchange.
Straight out the gates, there are a few things that make DeversiFi interesting, not least its claim to have a trading engine that puts many CEXs in the shade, let alone DEXs. While one user can’t stress test an exchange, in testing, the trading engine proved as responsive as I’d hoped, enabling orders to be placed and canceled with ease.
Trading pairs are sorted into four tabs: ETH, USDT, DAI, and BTC, the latter being WBTC of course that’s issued on Ethereum. Volume for the most popular pairs is respectable for a DEX. For instance, during testing, BTC/USDT volume stood at $5.5m and ETH/USDT at $3.9m. Naturally the smaller cap assets, such as ZRX and OMG, have volume commensurate with their capitalization. For placing trades of under $5k, DeversiFi is perfect. For larger trades of small cap cryptos, try using a CEX or a DEX aggregator such as 1inch.exchange.
I deposited some ETH onto DeversiFi and used it to buy Kleros’s PNK before converting the remainder into USDT and withdrawing back into my MetaMask wallet. Orders are easy to track using the tabbed section to the left of the orderbook, while the Token Balances section to the right makes it easy to discern which assets are in your wallet and which have been deposited onto the exchange. When the time comes to withdraw, the countdown timer shows how long until the next batch of transactions is processed. The 90-minute wait won’t sit well with impatient traders, but most users won’t balk at the requirement. After all, BitMEX only processes withdrawals once a day.
The first exchange I traded on was BTC-e, or possibly Vircurex, back in 2013. The first DEX I used was EtherDelta. And in the past week, I’ve traded on IDEX, Uniswap, 1inch Exchange, Balancer, and now DeversiFi. I’m not a hardcore etherean, instilled with the gospel of defi, but I can appreciate the benefits of being able to trade trustlessly and flit between DEXs and liquidity protocols using only MetaMask to authenticate. I see DeversiFi as an ideal platform for traders who are new to DEXs, and looking to learn the ropes in a safe environment.
In terms of usability, DeversiFi is hard to fault. It bridges the gap between CEX and DEX, providing an experience that’s more akin to the former, with the security reassurances of the latter. Its only limitation as it stands is the relatively few assets that are tradable on it. Because anyone can add a liquidity pool to Balancer or Uniswap and effectively list their own token, these user-generated pools are where the early price discovery of defi assets such as COMP, DMG, and BAL plays out.
DeversiFi is obliged to be more conservative with its listing policy, adding assets that have a proven track record, established community, and that will provide longevity and liquidity. As the Ethereum ecosystem evolves, adding more synthetic assets, expect to see decentralized exchanges including DeversiFi list more tokens. DEXs have yet to land a knockout blow on centralized exchanges, but the crop of 2020 have certainly left their mark.
- Transparent and competitive fees
- Volume discount
- Tokenized rewards and discounts for NEC holders
- Platform tutorial for beginners
- Fast order execution
- Slower withdrawal times (up to 90 mins)
- Limited selection of tokens