Why should users leverage decentralized exchanges instead of simple and convenient centralized ones? What are the real advantages of such a DEXs aggregator like odos.xyz? Let’s investigate!
Why Pay Attention To Odos?
Decentralized exchanges appeared much later than their centralized competitors. They have new unique solutions and properties that have taken the use of cryptocurrencies to a new level. Such aggregators like odos.xyz have greatly influenced the development of the crypto sphere and, in fact, made the DeFi (decentralized finance) sector in cryptocurrencies much more accessible.
The Essence Of DEXs Aggregators
A decentralized exchange or DEX is a platform that provides the following opportunities:
- ability to exchange one cryptocurrency for another;
- provide liquidity for other exchanges;
- engage in staking and farming.
At the same time, Odos is a hub where you can search for any token you want, find the lowest price, and execute your order in the most optimal path. Then you aren’t tied to one DEX. You have all the exchanges at hand.
By its nature, Odos is very similar to Binance or FTX. You still have the option to make an exchange. However, the way this exchange takes place from a functional point of view completely overlaps all other possible similarities between DEX and CEX exchanges.
How Does This Aggregator Work?
On Odos, you do not need to register, create an account, verify and deposit funds into your exchange wallet. You just need to connect one of your browser wallets that supports one or another blockchain.
For example, you can connect your Metamask browser wallet. All exchange operations that you will perform on Odos will immediately go through your wallet. One currency will be debited, another will be credited, and no extra actions are needed.
How Does The Exchange Take Place From The Inside?
How do you send funds from your wallet in the form of one token, and where do you receive another?
There is such a thing as liquidity. Liquidity is the amount of money of an asset that is frozen in the exchange pool. That is, having exchanged your USDT, they are sent to the liquidity pool of the USDT/MATIC pair, and MATIC are taken from this pool and sent to your wallet.
Often, liquidity for unpopular pairs of assets can be too small, which will change the cent of the asset even from the slightest exchange.
In addition, on decentralized exchanges, you yourself can provide liquidity to any pair you are interested in. You send equal amounts of these assets to the pool of USDT/MATIC pairs, and other users use your provided funds when making exchanges. For this, you receive a part of the exchange commissions from DEXs.
Real-Life Example Of Odos.xyz Usage
Decentralized exchanges are slightly more complex than centralized ones. Therefore, we propose to analyze an abstract example of how to make an exchange.
Take the Odos and the Metamask browser wallet:
- First, you need to connect your wallet to the platform and allow it to work with your funds.
- After that, select any existing pair. For example USDT/MATIC. You have USDT in your wallet and want to buy some MATIC.
- Enter the desired amount of USDT and the exchange will give you the equivalent in MATIC. Then you will need to confirm that you have a certain token in your account (USDT in our case). To do this, click “Approve”.
- A Metamask wallet will pop up and you need to confirm the transaction to validate your holdings and pay a hefty fee for the network transaction itself.
- Then you will have a “Swap” button and you will need to do the same, paying a commission now to exchange assets again.
- After all this, your tokens will immediately appear on your Metamask wallet.
Beginners may take this manual as a bit clumsy, but after a few transactions, you’ll get used to this algorithm.
Why Odos.xyz Is Gaining Momentum
After we figured out the functionality of the aggregator, how exactly it works, and how exchanges take place on it, we can analyze the advantages of such websites.
You Do Not Need To Leave Any Personal Data
There is no system of registration and verification of identity by documents. For those who use cryptocurrencies, first of all, anonymity is one of the main advantages.
Your funds are personally yours since they are stored in personal crypto wallets, and not in the wallet of the exchange account.
Absence Of Any Limits And Restrictions
There are no restrictions on trading, depositing, or withdrawing funds.
Thus, we see that DEX exchanges aggregators are platforms promoting real crypto-currency world values. They have everything: anonymity, security, infinity, decentralization, etc.
Odos > Binance
In general, centralized exchanges are much more convenient and more variable than their decentralized competitors. However, they have several very significant disadvantages that may discourage you from using such sites.
For example, your funds do not belong to you. The main disadvantage of all CEX exchanges is that your funds are stored on the exchange crypto wallet. While the money is on the exchange, it simply does not belong to you.
Of course, at any time you can withdraw them to your personal wallets, but where is the 100% guarantee that the exchange will not close the withdrawal of funds? There is also no guarantee that at one moment the exchange will not go bankrupt or simply close and run away from the market with all the funds.
Over To You
While DEX is the most advanced solution from the world of DeFi, yet these platforms have their drawbacks. Thus, it should be only your decision to trade on such websites or not.
Undoubtedly DEXs aggregators like Odos are the future of the finance sector. Consider being among the first to accept it.
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