How long does it take to build a DeFi Exchange?

How long does it take to build a DeFi Exchange?

What is Defi Exchange?

DeFi or Decentralized finance is an umbrella term used for the section of the crypto universe, which is building a new internet native financial system using blockchains to replace traditional intermediaries. Defi exchange development is no different from the crypto exchange, and given below are some of the steps involved in its software development process

  • Discovery
  • Prototyping
  • Development
  • QA
  • Maintenance

Some of the characteristics of Defi exchange include:?

  • Non-custodial: Underlying assets ownership is never revoked.
  • Automated: DEX trading is instantaneous as there are no intermediaries; therefore, there is sufficient liquidity.
  • Cost-Efficient: They have minimal trading fees, which helps in little to no cost swapping
  • Globally Accessible: Most DEXs don't require sign-ups and come with no counterparty risk.
  • Intuitive: Newer trends have evolved DEX trading?????
  • ?Pseudo-anonymous: No profile or background information is needed for the users to start trading.

How long does it take to build a Defi Exchange?

The time duration of the Defi networks depends on the complexity of the defi we are building. There are three different categories of Defi exchange development based on which the period is calculated, and they are as follows.

  1. Basic version: Basic version of Defi exchange includes most simple features, template design, the weak server-side, simple logic of the blockchain, no integrations to the API. This type of Defi exchange would require a 3-6 months development time.
  2. Medium complexity version: This Defi exchange involves a unique design, many features, support of all platforms, various integrations with external services. This exchange would require a development time between 6-9 months.
  3. High Complexity version: This Defi exchange involves a unique design, maximum functionality, number of integrations, high reliability and security, maintenance, and support. This type of Defi exchange development would require more than 9-10 months plus additional support.

What is the need for Defi exchange development?

  • Liquidity: Every project suffers from liquidity shortage during the early stages of development. Defi exchanges help avoid these liquidity issues by accessing other projects' liquidity. This allows the business or startup to raise the necessary capital and thus provide a functioning service.
  • Access to credit: Just like a traditional financial sector, many crypto startups can raise funds by demonstrating the potential of the project to the exchanges and obtain loans under specified conditions
  • Competition growing: Healthy competition helps in the growth of a sector, and it's in the interest of the exchange to maintain healthy competition among the defi providers.
  • Promotion: Defi exchanges are where promotional ads can be run at a low cost and can be more effective as it is where the target audience gathers.

Wrapping up

Defi exchange development is growing in popularity and in its ease of use. Also, Defi exchanges help in other functions like connecting liquidity pools, reducing transaction costs, earnings in staking, participation in lotteries, buying and selling NFT, the launch of IDO/IFO, etc. Defi exchanges have the potential to capture more of the wider crypto landscape in the coming years. By supplying capital to these exchanges, there are chances for passive income streams to be earned. Users will also realize the benefits of interacting with the broader DEX landscape in the longer run.

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