Slippage and Market Impact
AMM-based DEXs (e.g, Uniswap, Raydium) inherently suffer from price impact when executing trades, particularly for large positions or illiquid assets. This makes them unsuitable for serious capital deployment.
MEV and Front-Running
Publicly broadcasted transactions on blockchains attract front-runners (including validators/miners) to reorder or sandwich trades, extracting profits at the expense of legitimate users.
Liquidity Lockup and Opacity
Liquidity is either locked inside AMM pools or controlled by opaque OTC desks, limiting transparency and flexibility.
Liquidity Fragmentation
Cross-chain trading remains operationally complex, requiring bridges, wrappers, and multiple settlement layers.
Counterparty Risk
OTC trades depend on trusted intermediaries, introducing settlement and default risk.
Fragmented Derivatives Markets
Cross-chain derivative trading or transferring positions across ecosystems is cumbersome, if not impossible, without centralized exchanges. On-chain derivatives platforms are evolving rapidly (dYdX, GMX, Drift, etc.), but remain siloed within their own ecosystems.
Fragmented and Untapped Telegram OTC Liquidity
A significant portion of real trading activity in crypto occurs outside of traditional exchanges and on-chain venues, within informal, socially coordinated environments—most notably Telegram-based OTC communities. Despite the scale and persistence of this activity, the majority of decentralized trading protocols fail to acknowledge, integrate, or safely access this liquidity.
As a result, a large and economically meaningful market remains structurally disconnected from trustless settlement infrastructure.
