DEXs Face Profitability Challenges: Astrovault Proposes an Approach

Most people spend their lives striving for financial
freedom, yet many find themselves constrained by institutions designed to
safeguard money.

When we place our hard-earned cash in the hands of
centralised entities, we surrender a degree of control over our finances. Once
we conform to the norms of traditional banking, we become vulnerable to issues
such as unexpected fees, limited access to funds, and the risk of institutional
failure.

Decentralised
exchanges (DEXs) offer a solution to institutional issues by providing
greater autonomy and security over assets. By removing intermediaries, DEXs
allow traders direct control of their finances, creating a transparent and
accessible financial system where users trade without centralised institutions.

The Promise of Decentralisation

DEXs have the potential to democratise finance, allowing
users to engage with crypto on their terms. However, the typical models these
platforms follow have proven insufficient for achieving long-term
sustainability. While the premise of permissionless banking seems enticing, the
realities of operating a fully autonomous exchange are
more challenging than expected.

The DEX Viability Challenge

Many DEXs have compromised core features in their pursuit of
profitability. Hidden fees, reduced liquidity, and limited trading options have
become common, undermining the decentralised principles these platforms were
built on.

Additionally, the business model of many DEXs poses
challenges to profitability. Unlike centralised exchanges that generate revenue
through user fees and spreads, DEXs rely heavily on transaction fees. These
fees can fluctuate, often falling short of covering operational costs, making
long-term sustainability difficult.

This raises the question: how can DEXs develop sustainable
business models without sacrificing their decentralised appeal?

Can a DEX Seek Returns?

As DEXs continue to grow, it can be difficult to distinguish
advanced platforms from those following trends. Astrovault stands out by
focusing on building long-term liquidity through its own protocol-generated
resources.

By creating a DEX that can generate returns and keep itself
profitable, Astrovault showcases an alternative to two issues. One alternative
it provides is to the standard DEX infrastructure that many decentralized
projects follow—a model that ultimately leads to difficulties in maintaining
liquidity and keeping projects afloat.

More broadly, a DEX that can run on its
own accord sets the stage for a true alternative to the traditional banking
ecosystem, retaining DeFi’s original purpose sustainably.

This approach reduces reliance on external providers,
strengthens the platform, and gives users greater control over their assets. By
maintaining its decentralised principles while achieving profitability,
Astrovault sets a new standard in the DEX space, showing that sustainable
growth and decentralisation can coexist.

Without key tools and infrastructure that is built to last,
there’s no incentive for people to switch from what they’re already accustomed
to. So, DeFi developers must take strides to do things differently.

In the long
run, Astrovault’s DEX model helps achieve a sense of security for individuals
ready to meaningfully transition to growing wealth or just maintaining their
finances in a decentralized way.

This article was written by Ariel Shapira at www.financemagnates.com.