How Decentralized Exchanges Can Improve Capital Efficiency and Attract More Users

Blockchain and DeFi are attracting investors looking for meaningful returns, but decentralized exchanges (DEXs) face unique challenges in terms of capital inefficiency. Liquidity providers (LPs) on DEXs face significant risks due to market conditions and price discrepancies, and DEXs need to focus on positioning LPs for long-term success. Despite promises of enhanced liquidity and lower trade costs, most trading activity still occurs on centralized exchanges. To improve capital efficiency, LPs need more flexible liquidity-providing solutions and a range of risk-return options. DEXs can enhance capital efficiency by employing mean-reversion strategies and attracting a broader user base, but significant advancements in operational processes are necessary to improve the user experience and create greater confidence among LPs. Stabble, a Solana-based liquidity and trading layer, is led by CEO Kilian Peter Krings, who has extensive experience in both decentralized and traditional finance sectors.