After Hyperliquid, what will the next generation DEX look like?

After Hyperliquid airdropped, the wealth effect ignited the market, and everyone started to follow the potential star DEX in this cycle.

What will the next generation of DEX look like?

The next generation of DEX must be a product with significant advantages in user experience and Liquidity.

One of the directions, I think, is chain abstraction: DEX + chain abstraction = CEX user experience.

1. The benefits of combining DEX with chain abstraction

Chain abstraction can enable DEX to provide a CEX-like user experience, reduce the complexity and cost of Cross-Chain Interaction transactions, and increase Liquidity. This is particularly attractive to users who need to trade assets on multiple Blockon-chain.

(1) Lower operating threshold: Chain abstraction allows users to use DEX without understanding the underlying chain technology. This means that users do not need to manage multiple Block chain accounts or learn how to transfer between different chains, making operation simpler.

(2) Enhanced Liquidity: By encapsulating the underlying Cross-Chain Interaction technology, DEX can integrate Liquidity from multiple blockchains, providing a wider range of trading pairs and higher Liquidity. This is especially beneficial for microtransactions, reducing Slippage (Slippage).

2. How does DEX specifically integrate with chain abstraction?

(1) First, to establish unified Liquidity, use cross-chain bridges such as Polkadot, Cosmos, or chainlink to enable assets to flow between different blockchains. This allows DEX to obtain Liquidity from multiple on-chain sources and distribute trade orders across different on-chain for execution.

Through Smart Contracts, DEX can automatically manage the exchange of different on-chain assets and Liquidity pools. AMM can optimize price discovery and Liquidity provision through Cross-Chain Interaction.

(3) Provide a unified user interface so that users can trade without switching Wallets or understanding the details of the chain. Behind the scenes, all Cross-Chain Interaction operations are handled through chain abstraction technology. In the end, users only need to express their trading intentions (for example, "I want to exchange BTC with ETH"), rather than specifying a specific chain or path. The system automatically searches for the best Cross-Chain Interaction path to complete the transaction. By combining these technologies, DEX can not only provide a better user experience but also significantly improve the overall ecological efficiency of Decentralized Finance (DeFi). In this way, DEX can be closer to the convenience provided by traditional Centralized Exchanges (CEX) while maintaining the essence of Decentralization.

3. User Instance After the Combination of DEX and Chain Abstraction

Goal: Bob wants to buy some USDC on the Polygon network in order to place bets on the prediction platform Polymarket.

Process: Bob enters the trading interface of the Chain Abstract DEX and selects 'Exchange ETH for USDC'. The system automatically provides the optimal trading path, and Bob can confirm the transaction, only needing to pay the fee once with any Token.

Background processing: DEX automatically processed the following operations in the background,

(1) Extract ETH from the Ethereum network.

(2) Cross-Chain Interaction of ETH to BSC.

(3) Exchange ETH for USDT on BSC.

(4) Bridge USDT to Polygon.

(5) Finally, exchange USDT for USDC on Polygon. The entire process is transparent to Bob, he only needs to confirm the transaction once.

4. Summary

The reason why DEX applications are suitable for integration with chain abstraction is mainly because they involve Cross-Chain Interaction operations and asset management, requiring simplification of user experience to enhance convenience and Liquidity.

Chain abstract technology abstracts the details of Cross-Chain Interaction, making these applications more user-friendly, reducing users' learning and operating costs, while improving the efficiency and interoperability of the entire system.

Waiting for the new product of DEX+ chain abstraction to appear.

Among them, the leading Particle Network as a chain abstract track is worth following.

Recently, Particle announced that they will launch a new trading product on December 3, which is highly likely to integrate chain abstract solutions. Particle Network has made significant progress in the Wallet infrastructure field, and has not yet issued coin, so will Particle Network be the next golden dog?