00:00PEPDEXs are safer than centralized exchanges on one axis, which is no company can spend your deposit, non-custodial, but
00:09introduce different risks that depend entirely on the architecture of those PEPDEXs.
00:16On Solana app level venues like Drift, a smart contract program actually holds your collateral and a network halt can
00:24freeze everybody.
00:25On Cosmos app chains like Helix on Injective, the chain natively holds the order book and your funds are non
00:33-custodial.
00:34On Ethereum roll-ups like Evo, your funds are breached to a layer 2, whose sequencer can stall.
00:40Off-chain matching venues like Gravity, GRVT can trust, sort of trust an operator to match while the chain actually
00:48settles the transactions.
00:49And no design is risk-free, each fails differently, and we have actually done a settlement stack map which shows
00:59who holds what and, you know, what breaks per each different kind of venue.
01:06PEPDEXs are usually marketed as one of the, you know, kind of powerful platforms because of self-custody.
01:14And I prefer PEPDEXs myself because just that, you know, kind of advantage alone of being as self-custody is
01:22a good one.
01:22But self-custody does not mean the same thing on every different platform.
01:26That's where you need to be able to understand that on Solana, like I said, on venues like Drift, your
01:32collateral may sit in a smart contract program.
01:35On Solana, fast and efficient, but exposed to on-chain level congestion and halts.
01:41On Ethereum roll-ups, like Evo, like I said, you inherit Ethereum settlement security, but take a sequencer and bridge
01:50risk on the app chains on Cosmos.
01:53Then, you know, the exchange is closer to chain native infrastructure, but your aliveness actually depends on the validator set.
02:01So on hybrid venues like Gravity, matching happens off-chain while sediment remains on-chain, which improves speed, but also
02:10introduces operator trust.
02:12On other kind of designs like the kind of former Enclave X, which is no longer functioning, matching was kind
02:22of introduced or protected by hardware attestations.
02:26But that also kind of introduced newer kind of Enclave and side chain risks, right?
02:32So the point is that, you know, one model isn't the best.
02:36The point is that every architecture is different.
02:39And that's what I wanted you guys to understand.
02:40And we've broken it down in this tool, which is in the link to the full review down below.
02:48So a chain halt, a sequencer pause, breach exploit, smart contract bug, or matching engine failure can also create very
02:55different outcomes for leveraged traders.
02:58So before depositing on any pep dicks, you have to ask four questions.
03:01You know, who holds the funds?
03:03Where does the settlement happen?
03:05What breaks in a halt?
03:07And what does an kind of exploit reach?
03:10You know, so self-custody is not the only slogan here.
03:13It's a stack.
03:14And if you trade leverage, that stack matters.
03:18That's why you guys need to go check out this tool.
03:20It's all in the links in the description.
03:22And also use the links to trade on these different venues and get the best discounts, the best rebates.
03:29I think pep dicks is ongoing anyway.
03:31They really take it over as everything comes on chain.
03:35Like, share, subscribe, turn on the notifications, guys.
03:37I will be seeing you in the next videos.
03:39Check out my book, Tokenized Trillions, Blockchain Applied.
03:41You can find them pretty much on any online store or go check out spotcontractbets.xyz if you like a
03:49web3 wagering and like, share, and subscribe.
03:52And I'll see you guys in the next videos.
03:55Let me know which one of these platforms is your favorite.
03:58Check out the links and get started trading.
04:00Peace and love, y'all.
04:02Peace.
04:11Peace.
04:11Peace.
04:12Peace.
04:12Peace.
04:13Peace.
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