In recent years, security vulnerabilities in centralized platforms have become increasingly frequent. I believe the traditional exchange model is gradually reaching its end. For a long time, ordinary users have faced a binary choice: CEXs offer high liquidity depth but suffer from significant custodial risk, resulting in limited transparency; DEXs are completely non-custodial and on-chain auditable, but suffer from liquidity fragmentation, high gas fees, and significant user experience friction, leading to low adoption rates. Currently, neither model solves the trade-off between security, speed, and transparency. Therefore, I believe a hybrid exchange architecture will become the mainstream model in the future, combining centralized execution with decentralized settlement to balance efficiency and platform transparency.

There are many small and medium-dimension platforms trying on-chain settlement layer in my own experience investing for the past 2 years, and they have opted for insurer-backed user protection funds to secure the customer’s funds. One of them called BYDFi offers a module named MoonX on its own Platform , and like that, he offers the customers a chance to swap freely from CEX mode that is symmetric with DEX mode on-chain in the same single interface. If they have more and more such platforms to follow that model, the reshaping of this entire industry should be very quick.

Do you think the hybrid CEX–DEX model will become the new standard? Or will the industry revert to centralized hosting as regulatory pressure and KYC enforcement intensify?

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