Entropy
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Current Market Pain Points
With the growing popularity of DEXes and increasing trading throughput in DeFi, Ethereum is starting to hit bottlenecks.
  • The Ethereum Network currently suffers from high gas costs per transaction and is plagued by network congestion. The only solution to this problem is its planned network upgrade but this will not come into effect for years.
  • A number of options in the market currently offer low gas fees and high transaction speed such as COSMOS, BSC, and Solana. However, the larger ecosystem of public chains is not yet strong enough to accommodate public needs and chain interoperability is also lacking.
  • The issue of public chain interoperability is due to the differences in technical architecture and the result of this is increased costs for DEXs that are deployed on multiple chains, trickling costs down to the consumer.
  • A majority of DEX platforms employ the AMM strategy which is notoriously rigid in its operations and leads to ineffective market setups. This also worsens the already rampant issue of wild marker speculation.
  • DEX and the DeFi industry as a whole, have too high of an entry requirement and this acts as a deterrent for users already used to CEX, and this limits long-term growth potential.
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