Report Claims Most DeFi Trades Are Routed Through Traditional Market Makers
(19 days ago) · 1 source · Summarized by CryptoBipto
An article from CryptoSlate examines claims that approximately 90% of decentralized finance trades are being routed through traditional Wall Street market makers rather than being executed in a fully decentralized manner. The report raises questions about how decentralized DeFi trading infrastructure actually is in practice.
WHY IT MATTERS
DeFi — short for decentralized finance — promises to let people trade crypto without middlemen, using software called smart contracts instead of banks or brokers. Think of it like a farmers market where you buy directly from the grower instead of going through a grocery store chain. This report suggests that in many cases, the trades people think are happening directly on the blockchain are actually being handled by large traditional financial firms acting as intermediaries — more like the grocery store showing up at the farmers market in disguise. For newcomers, this is a reminder that labels like 'decentralized' do not always mean what they seem, and it is worth understanding how the tools you use actually work behind the scenes.
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- cryptoslate.com
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