What are the decentralized stablecoins? What are the uses of decentralization
Jul 11, 2025 pm 06:06 PMThe rise of decentralized finance (DeFi) has brought new financial instruments and concepts, with decentralized stablecoins being an important component, and they aim to provide relatively stable digital assets with relatively stable value while avoiding relying on a single centralized entity. This avoidance of centralized control reflects the core value of decentralized technology: reducing the need for trust in third parties, enhancing user sovereignty and system risk resistance. In the field of crypto asset trading, this distinction between centralization and decentralization is particularly obvious, and is reflected in different types of exchanges. The following will introduce the two main trading platforms and their differences.
Exchange of stablecoins in 2025:
Ouyi okx :
Binance binance:
Huobi htx:
Centralized exchange
This type of platform is the most common choice for users to trade crypto assets. They are operated and managed by a company, similar to traditional stock exchanges or banks. Users need to deposit assets into the account on the exchange platform, and the transaction is completed through the order book system within the platform. The platform is responsible for handling all transactions, user identity verification (KYC) and the custody of assets.
1. These platforms act as the middle party of the transaction and match the trading instructions of the buyer and seller. Users do not interact directly with other users, but trade with exchanges.
2. Provide a wealth of trading pairs , leveraged trading, futures and other derivative transactions, and usually supports the direct exchange of fiat currency and crypto assets, which greatly improves the convenience of transactions.
3. User assets are escrowed by the exchange. This means that the user does not directly hold the private key of their crypto assets. Although this simplifies the complexity of users managing private keys, it also introduces the risk of the platform being hacked, mismanaged, or even running away with the money, and users may lose all their assets.
Decentralized exchange
In contrast to centralized exchanges, decentralized exchanges (DEX) are more in line with the spirit of decentralization in design concepts. Transactions occur directly between users and are automatically executed through smart contracts on the blockchain. Users always control the private keys of their own assets and do not need to transfer the assets to third-party platforms for custody.
1. Transactions are completed through on-chain smart contracts , such as using the automatic market maker (AMM) model, where users trade with the fund pool instead of the traditional order book model. Some DEXs also use on-chain order books.
2. They eliminate the need for centralized institutions as intermediaries and reduce the risk of single point failure. As long as the underlying blockchain network is running normally, DEX can continue to operate, reflecting strong anti-censorship characteristics .
3. Users can trade without authentication (KYC) , providing higher privacy. User assets are always in their own on-chain accounts, minimizing the asset security risks brought by the platform.
Key differences
The two types of trading platforms have significant differences in multiple key aspects, which determine their respective strengths and weaknesses, as well as scenarios that are suitable for different users.
Asset control: This is the most fundamental difference. Centralized exchanges keep user assets , and users own numbers in the platform account; users of decentralized exchanges have full control over private keys , and asset control is in the hands of users.
Regulation and Compliance: Centralized exchanges usually need to comply with strict financial regulations, conduct user authentication and anti-money laundering (AML) reviews. Due to the lack of centralized entities, decentralized exchanges are more difficult to regulate and users do not need KYC.
Trading convenience and functions: Centralized exchanges usually provide a more friendly user interface, faster trading speed (off-chain matching), and richer trading tools such as leverage and contract trading. Decentralized exchanges are relatively complex in user experience, and the transaction speed is limited by the blockchain confirmation time, and their functions are relatively basic, mainly concentrated in spot trading.
Liquidity: Large centralized exchanges often gather huge trading volumes, providing better liquidity and reducing slippage. The liquidity of decentralized exchanges relies on users who provide liquidity, and although it has improved under the influence of DeFi, liquidity may still be insufficient on some trading pairs.
Security: Centralized exchanges face the risk of hacker attacks causing user assets to be stolen. The main risks of decentralized exchanges are the risks of smart contract vulnerabilities or the underlying blockchain itself, as well as the loss of assets caused by improper management of private keys by users themselves.
Fees: Centralized exchanges mainly charge transaction fees. In addition to transaction fees, decentralized exchanges also need to pay the gas fee (Gas Fee) of the underlying blockchain network, which may be high when the network is congested.
Related to the purpose of decentralization, DEXes is a direct reflection of decentralized technology in financial applications. They practice the concept of no trust in third parties, transparent, and programmable, allowing assets such as decentralized stablecoins to be freely circulated and traded in an environment without centralized control. Decentralization provides users with unprecedented control over their digital wealth and builds a more resilient and censor-resistant financial infrastructure.
Which exchange to choose depends on user needs, the degree of importance to security, the requirements for convenience, and the acceptance of new technologies. Many users use both platforms at the same time for different purposes.
The above is the detailed content of What are the decentralized stablecoins? What are the uses of decentralization. For more information, please follow other related articles on the PHP Chinese website!

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