Caixin: Binance Hack Incident May Present Opportunities for DEXs, "Taking Over" Will Drive Short-Term Surge in Trading Volume and TVL

Odaily reports that the Binance hack incident may present opportunities for decentralized exchanges (DEXs). Each time a major sudden security breach or trust crisis occurs at a large CEX, DEXs and the entire DeFi sector experience a significant inflow of capital and development opportunities, and this time is no exception. The advantage of DEXs is that their security is guaranteed by computer science and cryptography, making them immune to social engineering attacks that could lead to trojan implantation or system compromise. DEX on-chain hard rules are enforced automatically, such as time locks and automatic circuit breakers. Even if a hacker obtains keys, they must still comply with the rules set by the smart contracts.

This security incident has once again sounded the alarm of "Not your keys, not your coins." A large number of users, concerned about the security of centralized custody, will withdraw assets to personal cold wallets or on-chain non-custodial wallets. Once assets flow back on-chain, the trading, liquidity mining, and wealth management needs of these idle funds will be directly absorbed by leading DEXs such as Uniswap and Jupiter, driving a short-term surge in DEX trading volume and total value locked (TVL). (Caixin)