School of Business and Management Department of Information Systems, Business Statistics and Operations Management 185 On Identifying Web3 Business Opportunities and Challenges Supervisor: LEE Dongwon / ISOM Student: YUEN Yu Yung / DA Course: UROP 1100, Spring This report examines the business opportunities and challenges presented by decentralized exchanges (DEXs) in the cryptocurrency market. It begins by contrasting the DEX model with traditional centralized exchanges (CEXs), highlighting the unique advantages and drawbacks of each approach. The report then delves into the various DEX frameworks, such as automated market makers (AMMs), limit order books, and DEX aggregators. For each type, it analyzes the business potential, exploring factors like liquidity provisioning, trading mechanisms, and user experience. On the opportunity side, the report discusses how DEXs can provide greater accessibility, transparency, and censorship resistance compared to CEXs. However, it also examines the key challenges, including network congestion, regulatory compliance, and the risk of exploits and hacks that can undermine business viability. Despite these hurdles, the report concludes that the business prospects for DEXs remain promising. As the technology continues to evolve and the ecosystem matures, DEXs have the potential to capture significant market share and transform the dynamics of cryptocurrency trading and finance.
RkJQdWJsaXNoZXIy NDk5Njg=