Crypto trading’s rise to prominence in the past few years can be attributed to the emergence of crypto exchanges all over the globe. The increase in the number of centralized exchanges (CEXs) and decentralized exchanges (DEXs) have improved accessibility for people to buy, sell, and trade cryptocurrencies and other digital assets.
While these exchanges have played a critical role in the success of cryptocurrencies, the use of these platforms is limited to particular jurisdictions and tech-savvy investors. Both CEXs and DEXs have drawbacks, making it difficult for the majority of the global population to enter the crypto ecosystem.
The complications of centralized and decentralized exchanges
Centralized exchanges have been around since the early days of cryptocurrencies. They are one of the most preferred venues for entering the crypto universe and trading, mainly due to the ease of use, excellent user experience, and multi-asset trading features.
However, the centralized nature of these platforms enables CEXs to retain complete control over user’s funds. Also, most CEXs store data in centralized security processes, which are highly vulnerable to cyberattacks.
Signing up for an account on centralized exchanges involves complex KYC, AML, and other regulatory processes, which is another significant hurdle for users, primarily those with no access to traditional financial services. And if that wasn’t enough, the increasing regulatory clampdown on CEXs worldwide, limiting several prominent exchanges to operate in specific jurisdictions only, makes it even more problematic for new users to enter the crypto ecosystem.
Decentralized exchanges (DEXs) came into the picture to overcome these hurdles while giving users full control over their assets. By employing an automated protocol instead of a centralized authority, DEXs offered users unmatched levels of security and lenient KYC procedures. Although DEXs solved the problems of CEXs, trading on DEXs involves a complex learning curve. In addition, they do not support fiat currency transactions, and liquidity is always a problem.
Orion Pool solves the dilemma of choosing between CEXs and DEXs
To lower crypto’s entry barriers and to enable greater financial inclusion worldwide, Orion Protocol has launched the first and only decentralized gateway to the entire crypto marketplace. The Orion Pool, Orion Protocol’s proprietary automated market maker (AMM) solution, enables users to trade across centralized exchanges, decentralized exchanges, and swap pools from a single interface.
Launched on the Orion Terminal and built on Binance Smart Chain and Ethereum, Orion Pool has integrated prominent blockchains, including Avalanche, Cardano, Elrond, Fantom, HECO, Polkadot, and more. To increase overall liquidity, the platform has also integrated several established swap pools like Uniswap, PancakeSwap, and SushiSwap. These efforts aggregate the liquidity of every single crypto exchange and swap pool into one decentralized platform by design.
By partnering with verified brokers and crypto exchanges, Orion Terminal offers users global and decentralized access, making it possible for everyone to trade on major exchanges like KuCoin and Binance, without any geographical restrictions. The underlying proprietary Delegated Proof of Broker governance mechanism allows traders and exchanges to execute trade orders from their accounts on behalf of the user.
All integrated traders and exchanges use the Orion Broker Software to bid and process trade orders, which prevents them from accessing users’ funds. Because these traders have already completed their KYC and AML verifications, so the users don’t need to go through the trouble again,
Orion Pool grants users full control over their assets and provides everyone with an opportunity to enter the crypto ecosystem without any technical knowledge. As the platform integrates more exchanges and swap pools, it’ll contribute immensely to the efforts made for the mass adoption of crypto.