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No counterparty risk on decentralised exchanges
by dharma1 9y ago
No counterparty risk on decentralised exchanges
- wmf 9y agoDecentralised exchanges just have terrible spreads and front-running instead. Also, I don't think a decentralised exchange works for USD. Any token backed by USD has counterparty risk.
- dharma1 9y agoSpreads on EtherDelta (which is widely used) are good, but it's only for ERC20 tokens. The UX is awful and it can be slow because of Etherium scaling issues. You're right about any token pegged to fiat (like USDT) having counterparty risk. The company offering it, the bank they keep their funds in, and the country's legislation. I wonder if something decentralised will emerge that will effectively minimise those risks.