We often view cryptocurrencies and traditional finance as competing with each other, which is not the case. The only major difference between the two ecosystems is the decentralized version of architecture in crypto. Legacy finance ecosystems on the other hand, feature a centralized approach. As it stands, cryptocurrencies feature both centralized and decentralized projects such as financial instruments, yield platforms and CeDeFi exchanges.
New innovations have seen solutions being released with a co-dependent system that integrates Centralized Finance (CeFi) with Decentralized Finance (DeFi). This combined innovation, known as CeDeFi, is making waves in the cryptocurrency market, with a number of emerging CeDeFi platforms gaining traction. While Binance was one of the first entities to explore CeDeFi, there are now several platforms which cater to the CeDeFi market.
We’ve prepared a CeDeFi exchange list filled with some of the best CeDeFi exchanges in the current market.
US-based crypto trading provider
CoinZoom is based out of the United States, with an aim to introduce a one-stop shop that supports cryptocurrency trading and real-world use of digital assets. As a regulated exchange, CoinZoom allows users to invest in more than 30 listed tokens and offers a Visa debit card for spending on crypto.
CoinZoom is now serving users in over 192 nations. It also provides access to different financial products dependent on the customer’s home country. Holders of zoom can get additional benefits such as access to VIP programs and fee discounts.
CoinZoom also puts focus on cryptocurrency regulations and has been registered as a money services business through FinCEN. For its United States users, it offers Federal Deposit Insurance Corporation (FDIC) insurance, which covers up to $250,000 in deposits. It primarily houses its user assets in cold storage facilities that are offline, reducing the risk of theft. Users can also set up two-factor authentication to secure their personal holdings.
CoinZoom bridges the gap between traditional finance and cryptocurrencies through its native ZOOM token. Users can generate passive income by staking ZOOM by supporting Algorand and Dash.
a hybrid crypto exchange
Unizen is an exchange ecosystem that combines infrastructure involving both centralized and decentralized elements. Considered a pioneer in its field, this smart exchange aims to solve issues with liquidity, slippage and KYC hurdles. It is one of the emerging CeDeFi projects in existence today which seems to be gaining traction amongst investors and traders.
Unizen has formed different partnerships with notable entities such as AllianceBlock to solve liquidity complaint issues. Unizen is set to launch multi-dynamic staking features . All of this will allow users to search for a wide range of cryptocurrency products.
Unizen has a hybrid exchange with three major components – Unizen’s custom logic, third-party modules and Unizen modules. The Unizen modules contain in-built products such as the platform’s CEZ, while the third-party modules support DeFi integrations. The custom logic is responsible for hosting additional trading features such as social sentiment indicators and a cross-chain trade aggregation algorithm.
Unizen owns the code of its powerful trade engine. This allows it to leverage swapping functionalities across the entire ecosystem wherever it makes sense. The Unizen trade aggregator is a crucial element in the kernel of their operating system.
a CeFi exchange platform powered by DAOs
Nexo is originally a CeFi business than provides w range of products including a utility token, NEXO, an exchange, and card borrowing services. It is powered by Decentralized Autonomous Organizations which allow token holders to vote on future developments. The main aim of Nexo is to bridge the gap by providing the ability for DeFi developers to build regulatory-compliant innovations.
Nexo provides DeFi innovations with a regulated building ecosystem through expertise, licenses, and industry connections. While Nexo is mainly centralized, its CeDeFi solutions can support regulated DeFi innovations.
Nexo’s CeFi business delivers DeFi technologies via a regulated building ecosystem thanks to its knowledge, industry relationships and licenses. These CeDeFi solutions allow controlled DeFi developments while the project maintains its centralized aspects.
a CeDeFi-centered ecosystem
ByBit is another exchange that offers its centralized products in a more decentralized way than others. This allows users to experience a more CeDeFi-centered ecosystem which is built around the platform’s existing products. ByBit is supported by CEO BenZhou in its endeavors into the CeDeFi domain.
Normally ByBit is a cryptocurrency derivatives market that sells Ether and Bitcoin futures. It has a diverse user base which is mainly based out of Asia. ByBit provides users with two options – the first is to follow legacy financial standards and the other is to develop decentralized products.
ByBit is different from most of its peers as its product offers perpetual swap futures. They differ from a normal futures product as they do not have any expiration date. It currently offers perpetual swaps on Bitcoin, EOS, Ether and Ripple XRP. While its offering is limited, these products cannot be easily found in other exchanges or trading platforms.
Known as one of the leading global crypto exchanges, Binance is quite ahead with its CeDeFi offerings and is one of the top CeDeFi platforms in existence. Binance recently launched Binance Smart Chain that allows DeFi developers integration with decentralized projects. BSC is now home to several DeFi projects that leverage both centralized and decentralized elements.
The Binance smart chain was one of the first attempts to delve into the domain of CeDeFi. This has helped it become one of the biggest networks with its proprietary exchanges, stablecoins, derivatives, cross-chain protocols, NFTs, insurance, lending protocols, yield farming, oracles, and more.
Binance Smart Chain has become a hub for DeFi natives and has started competing with Ethereum in daily volumes. However, some in the crypto community are still skeptical about its CeDeFi architecture.
a true lending service powered by CeDeFi
SmartFi is a CeDeFi cryptocurrency lending service that is integrated with a number of traditional financial institutions. It ties its native token, SmartFi USD, to the value traded on the network by using an on-chain hedge mechanism. SmartFi provides a minable stablecoin which is returnable for a full refund of the purchase price in fiat.
SmartFi’s financial model beats bank interest rates. It is also more reliable than liquidity mining, staking and yield farming. SmartFi raised over $10 million in the first weeks in late 2021 and has been able to maintain a stable market value despite market fluctuations.
ChangeX is a hybrid DeFi project which completed its ICO this year. It presents a CeDeFi ecosystem which merges crypto, DeFi and banking under one roof. At the center of the ecosystem lies the ChangeX non-custodial wallet. It embodies true composability by introducing all the tools needed to navigate the DeFi space. Some of the features it possesses include a personal IBAN and SEPA integration, cross-chain functionality, a crypto visa card and leveraged staking.
The native token CHANGE, is based on an HRC20 token and is deflationary. The token acts as a bridge between the end-user and the blockchain networks by allowing cross-chain operations. It is also responsible for creating synergy between stablecoin lending and staking. The exchange airdrops CHANGE tokens to those who stake PoS assets in the app. The expected APR of this function falls between 65% to 80%.
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This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.