The rise of the Decentralized Exchange (DEX)?
If you have not heard of a DEX, you ought to give it a try. Here's what you can expect. You login via your digital wallet. No registration or sign up is required. Your funds always stay in your wallet. This means that the exchange is non-custodial and it do not have access to your fund. You remain pseudonymous when you trade via the smart contract. In the near future, you will be able to trade anything on a DEX. Currencies, stocks, commodities, index, mutual funds, derivatives, ETF, securities tokens, cryptocurrencies and etc. Pick your poison.
There will be no trusted third party. There will be no market makers, escrow agents, brokers and clearing houses. Instead, a smart contract will dip from a liquidity pool to match your buy and sell. There will still be commission though, albeit at a much lower amount than a conventional exchange. Everything is performed on chain automatically. The collected commission will be put back into the liquidity pool and get shared by all the liquidity providers. Anyone can be a liquidity provider in such a Peer to Peer Decentralized Exchange.
The future is here. You can try out the DEX for Ethereum and its ERC20 tokens at Uniswap. Simply login with your Ethereum wallet such as MetaMask and you will be able to interact with the smart contract immediately.
I provide liquidity for the BAT/ETH, COMP/ETH and LINK/ETH pools in Uniswap. Although the returns vary from day to day depending on the daily trading volume, the average annual returns for my pools are 120%, 54% and 36% respectively currently. Not a bad way at all to make some passive income while holding on to my digital assets for price appreciation.
Check out the trading volume and fees distributed here:
Don't say bojio.