KyberSwap, a decentralized exchange (DEx) for digital assets, has rolled out non-custodial limit orders – a first for a decentralized exchange. Kyber is a feature-rich DEx that aims to give users the best trading experience possible while allowing users to keep custody of their assets. The exchange believes this will help prop up liquidity on the exchange as it allows users to utilize the complex functions of modern exchanges without risking the security of their assets, July 12, 2019.
Big Developments to Kyber’s DEx
The frictions caused by centralized exchanges has led to a large scale discussion of transitioning into a more efficient method that keeps the duty of asset custody in the hands of the customer, relying on the exchange just to facilitate a trade. Know-your-customer (KYC) demands, as well as high fees for withdrawals and order making, have made the process of using centralized exchanges quite tedious.
Despite these gripes, centralized exchanges do remove a lot of individual frictions by operating as a trusted third party. This, however, goes against the very motto of Bitcoin to “verify, not trust”.
Most people in the ecosystem want DEx’s to succeed, but the lack of liquidity makes it a tiresome task for investors who just want exposure and aren’t worried about the vision of Bitcoin and other decentralized networks.
With KyberSwap, advanced traders can now set limit orders on the web or mobile app with just a few clicks. This helps users of the service get access to advanced order matching features that allow them to execute a trade at a certain price, rather than prevailing market price. Additionally, users will also save money on deposit and withdrawal fees that come along with centralized exchanges.
Loi Luu, CEO and co-founder at Kyber Network, made the following comment:
“We have developed Limit Orders for KyberSwap to fulfill one of the most desired features for any decentralized digital asset exchange platform. Traders can now trade easily on the go without having to jump through any custody hoops. Adding limit orders allows traders to maximize their strategies while giving them the freedom to work and focus on other important matters without having to be glued to the screen.”
The Custody Debate
This could legitimately prove to be a huge driver in growth for KyberSwap as the custody debate rages on amid the SEC’s recent updates on digital asset custody and conforming to existing regulations.
DEx growth is muted mostly by liquidity constraints, so the key goal here for DEx’s in general is to find ways to drive users from the comfort of a centralized exchange and toward a safer, cheaper model of exchanging digital assets.