What Are the Advantages of Trading Derivatives on a DEX Compared to a Centralized Exchange?
Trading derivatives on a DEX offers several advantages. It is non-custodial, meaning traders always maintain control of their own funds, reducing the risk of exchange hacks or seizures.
DEXs are also permissionless, allowing anyone to trade without needing to go through a lengthy KYC process. The transparency of the blockchain means that all trades and the state of the market are publicly verifiable.
Finally, DEXs can offer access to a wider range of innovative and novel derivative products that may not be available on traditional exchanges.