As previously discussed, Zellular Exchange (Zex) is designed to bridge the gap between decentralized exchanges (DEXs) and centralized exchanges (CEXs). More specifically, Zex is a decentralized exchange that offers the security and transparency of a DEX while providing the user interface and trading experience of a CEX.
Traditionally, users interacting with centralized exchanges must transfer their funds to wallets, multisigs, or smart contracts controlled by the exchange. The exchange then updates their balance on its internal ledger, allowing them to trade across various markets. However, in this model, the centralized exchange has complete control over users' funds and balances, exposing them to custodial risks.
Zex takes a fundamentally different approach by prioritizing decentralization and user security. Instead of requiring users to entrust their assets to a centralized entity, Zex ensures that users retain full custody of their funds while benefiting from an efficient and high-performance trading environment.
In the , we will start from the architecture of a traditional DEX and illustrate how Zex redefines its components to create a hybrid exchange model that combines the best of both worlds.
For a deeper understanding of the Zex platform, the provides detailed explanations of its various components. It also illustrates the flow of key user actions such as depositing, withdrawing, and placing orders.