EOS-DEX: How decentralized is Eosfinex?

After a four-month beta phase, a new decentralized exchange goes live.

After a four-month beta phase, a new decentralized exchange is launching. The Eosfinex Exchange is built on EOSIO technology, a scalable solution for the EOS network. But even here, just because there’s a DEX on it doesn’t mean it is a DEX.

Decentralized exchanges (DEX) are, in theory, a great idea: instead of a centralized exchange platform that handles traders’ orders, the decentralized counterparts execute trades via a blockchain. This comes with several advantages. First, investors keep control of their private keys at all times, so the exchange can’t mess with traders’ crypto holdings. The turmoil around the Canadian Bitcoin exchange QuadrigaCX has shown this is a very serious attack vector. On the other hand, a DEX can offer anonymous trading. If the exchange really commits to decentralization, KYC isn’t needed; as a decentralized network, the legal footprint is barely tangible.

A DEX on the EOS protocol

On Tuesday, July 30, a new DEX has entered the ring. It’s the Eosfinex Exchange, built on the EOS blockchain. After a four-month test phase, investors can place orders on the platform. Bitcoin hodlers, however, are missing out. So far, exactly four tokens from the EOS ecosystem can be traded on the site: EOS, RAM, EOX, and EMT.

And this is where it gets odd. A quick look at Coin Almanac Coingecko reveals that three of the four tokens are listed as either "inactive" or not found. Only the top-6 coin EOS has a market cap that justifies an exchange listing. The order book looks notably sparse, here with RAM/USDT as an example.

Eosfinex had announced some time ago that it would also list the bitcoin derivative tBTC, a kind of stablecoin pegged to BTC. But a DEX seems years away here.

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