DEX clarity

Ecosystem Updates Zcash Foundation
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https://dune.com/queries/5175149/8518958

This is awesome. Near<->Zec. Impressive.

A lot have been happening in the zcash ecosystem recently. We need a nice page where all DEXs supporting zcash are listed with a tutorial on how to use them.
Possibly a separate webpage on the zcash website might be needed.

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ZecHub has one: Non-Custodial Exchange Listing

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Unfortunately this list by ZecHub is misleading/inaccurate as it includes multiple “instant exchanges” which clearly are custodial. Many of these exchanges (such as changelly) have a history of selective scamming users mid swap, freezing funds etc.

With a true DEX you control the private keys to your coins.

Not Your Keys Not Your Coins!

ZecHub should remove all the custodial instant exchanges from the “non custodial” list.

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cc @squirrel runs the page, perhaps it could be updated with your suggestion.

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Feedback is important to us, thank you!

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Hello!

Thanks for the suggestion. The commonly used term for instant swap exchanges oddly enough is ‘non-custodial’. We try to inform users as much as possible about the varied risks between different swap platforms!

Removing them though, not sure quite yet.

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Based on that image many instant exchanges you list do not align well with all of the “non custodial exchange” criteria.

  1. Does not store private keys:

Of course they store private keys for the address you are sending coins to and the coins you hope to receive in return. Once you send coins to begin the swap the “instant exchange” has full custody of the coins you sent AND the coins you hope to receive in return UNTIL they send you coins back in exchange (which doesn’t always happen).

  1. Avoids sensitive user data
  2. Uses 3rd party to handle ID

These may be true sometimes but not others. There are many hundreds of stories in Reddit, App stores, etc of selective scamming by some of these exchanges that often include full KYC demands and lots of invasive questioning after a consumer sends coins but the “instant exchange” is not completed (often even after complying with all the KYC requests).

My suggestion is as follows. List 3 categories of exchanges:

  1. Traditional centralized exchanges

  2. Centralized instant exchanges

  3. Decentralized exchanges (the type of DEX that I believe OP is referring to. To many people “DEX” implies having full control of your blockchain assets at all times with no ability for a centralized party to seize funds mid swap).

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