While DEXs have become increasingly popular for spot products, we expect DEXs to become just as popular for margin and perpetual markets in the coming years. This is largely due to the fact that decentralized margin and perpetuals are newer and take time for users to adopt. Further, we think DEXs will continue to gain market share in relation to centralized exchanges, due to lower frictions to onboard, better UI/UX, increased security guarantees, and more attractive products to trade. dYdX combines the security and transparency of a DEX, with the speed and usability of a CEX. We think DeFi will supersede traditional finance technology but only if the user experience and design are exceptional.

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