In the cryptocurrency and blockchain industry, new innovative projects show up on a regular basis. Although it will always be challenging for projects to gain traction, Lake Trade is an interesting take on the decentralized exchange concept. Its zero-fee structure and strong focus on liquidity can make it a very strong contender moving forward.
The Lake Trade Concept Explained
It is evident the cryptocurrency industry needs more decentralized exchange options. Unlike their centralized counterparts, these new platforms will let users trade assets intermittently without an owner deciding which coins to list and so forth. That alone is pretty promising first and foremost, although Lake Trade is intent on taking this concept a bit further. They want to focus on what really matters: liquidity and zero-fee trading.
How Does it all Work?
With no fee structure in place, Lake Trade will need to find other ways to generate money. So far, it seems unlikely there is any model in place, although that situation may come to change moving forward. Lake Trade is built on top of the 0x Protocol, which should help alleviate most concerns associated with overall liquidity. This protocol has gotten a lot of attention lately, primarily because it is capable of unlocking a lot of new business models in the future.
Moreover, Lake Trade acknowledges users want convenience when dealing with decentralized exchanges. That is often easier said than done, as such infrastructures are not designed to make life easy for users. Lake Trade will let users trade directly out of their Ethereum wallet. That is quite positive news for owners of a desktop or mobile client. At this time, Hardware wallet support for Ledger and Trezor is being integrated, although that functionality will not be available from day one.
As one would come to expect from a decentralized exchange, there will be no automatic order matching whatsoever. Instead, Lake Trade will offer an open order book where users can determine the price or specific assets as they see fit. Furthermore, the team has put a lot of effort into building convenient dashboard solutions, which includes analytics charts, and so forth. This is something both novice and experienced traders can benefit from at all times.
Not a Perfect Solution
One downside to decentralized exchanges is how the overall trading experience may be very different from what one expects. In this case, lake Trade confirms their execution is a bit slower, but things are improving. Additionally, sues need to pay Ethereum gas fees, which is to be expected. Perhaps the biggest hindrance is how the platform is not available in the US due to regulatory and compliance concerns. That latter part will not be resolved anytime soon, which might be a bit of a downer.
The Road Ahead
Although Lake Trade is currently available for trading, the team will work on making the platform more versatile. The company will not list security tokens at any stage, which seems to be a positive approach. There will be a close relationship with regulators to ensure Lake Trade does not fall into the same category as EtherDelta. Perhaps the most interesting upcoming change is how the platform will integrate automatic investing using artificial intelligence. Progress has been made on this front, although it will take some time until this implementation is ready for commercial use.