Recent conversations I’ve had with a DEX operator and a crypto-savvy friend offer insights into the trade-offs between DEX and CEX.
The DEX operator highlighted privacy as a driving factor behind DEX adoption. She pointed out that privacy concerns extend beyond retail users to institutions and are especially critical in countries where trust in centralized entities is low. “It’s not just about degens,” she emphasized, framing DEXs as tools of financial empowerment and autonomy.
In contrast, my crypto retail friend expressed a clear preference for CEXs. “Definitely CEX,” he said when asked about his choice. “High transaction fees, high slippage, and doubts about wallet safety” make DEXs less appealing. He elaborated that using a DEX feels “less secure” and requires significant effort to evaluate liquidity and platform reliability. Most importantly, he admitted, “I just don’t believe I can take care of my wallet’s safety.” But here’s the catch: he’s also lost significant amounts of money on centralized lending platforms and exchanges. Despite these setbacks, he still gravitates towards CEXs for their simplicity and ease of use. However, he noted some exceptions where he might use a DEX: “Airdrop expectations, gas fee refunds, or trading meme coins.” Still, the overall sentiment leaned towards simplicity and convenience.
Ultimately, DEXs and CEXs serve different user bases and needs. DeFi is too hard, not only for my crypto retail friend; my crypto founder friends, traders, engineers, and even crypto researchers almost all agree. DeFi demands understanding mechanisms and complexities to build trust and use effectively. It's simply too much work, even for those with years of experience in the industry. As a founder, I believe DeFi deserves simpler, more elegant solutions. One of my trader friends mentioned this is why he likes Morpho so much—there's someone professional managing the vault, so he doesn't have to handle everything but can trust the system and the people behind it.
On-chain trading requires extra computation, pays gas fees, and often looks more expensive than centralized exchanges (CEXs) like Binance or Coinbase. So who is actually using Uniswap, and what makes them stay?
We often talk about talent, capital, and timing. But “environment” quietly shapes what’s possible. Some places are just better suited for certain kinds of bets. And understanding that might be the most underrated edge there is.
Recently, I was casually browsing a list of global stock exchanges ranked by market cap. Buried in the rankings, something made me stop and double-check: Iran’s Tehran Stock Exchange was sitting at number 15 in the world.
In the early 1980s, Airbus was developing its breakthrough A320 jet. To break the near-monopoly held by GE’s CF6 and CFM56, four aerospace companies—Pratt & Whitney (PW), Rolls-Royce (RR), Germany’s MTU, and Japan’s JAEC—formed a joint venture called International Aero Engines (IAE).
Generative AI has advanced to the point where it can handle tasks that previously required human intervention. My hypothesis is that the DeFi projects that will succeed in this cycle are those that enhance user experience and drive broader adoption.
2024 has been a year of lessons and new beginnings. In the first part, I faced challenges with my startup in Saudi Arabia, learning the hard way that both internal decisions and uncontrollable external factors shape a venture's success. Though it didn’t work out, I gained valuable experience and connections. In the second part, I’ve been fortunate to start a new venture with a friend, developing models to process brainwave data. It’s an exciting and challenging path, and I’m hopeful for what’s to come.
Through my experiences, I've formed a method for starting a business from the ground up. This method combines lessons from the Lean Startup with my personal stories.
"Lan Yu" - a love story, set against the backdrop of a transformative period in Beijing, brings to light the complexity of love, power dynamics, and societal changes.
As a young entrepreneur fresh out of college, one of my biggest challenge was to find the right problem to solve. Here I try to provide my thoughts on this issue.
This article unfolds my journey through a co-founder departure, emphasizing the lessons learned in team building, the importance of aligning skills with startup needs, and fostering a growth-oriented company culture.
