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De fi goes fully onchain: de xs leading the charge in 2025

DeFi Takes a Leap | DEXs on the Rise in 2025

By

Fatima El-Hakim

Jun 27, 2025, 08:40 PM

Edited By

Anika Patel

Updated

Jun 28, 2025, 02:36 AM

2 minutes needed to read

Illustration of a decentralized exchange with secure and efficient trades, symbolizing the evolution of DeFi in 2025.
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A growing number of users are shifting toward secure decentralized exchanges (DEXs), challenging earlier speculative practices in DeFi. In 2025, prominent concerns around miner extractable value (MEV) and risky trading tactics like sandwich attacks remain crucial. But many believe DEXs are finding safer solutions.

Shifting to Practicality

As DEXs gain traction, a focus on practical utility emerges. In May 2025, a user on Ethereum suffered a loss exceeding $40,000 due to a sandwich attack, while a DeFi launch on BNB was drained before it even started. These events highlight the urgent need for secure transaction execution throughout the DeFi realm.

Current Challenges for DEXs

Despite efforts to improve on-chain experiences, many users still face risks. Key issues include:

  • Miner Extractable Value (MEV): A major concern affecting trade outcomes.

  • Sandwich Attacks: Harmful tactics leading to significant user losses.

Steps Towards Enhanced Security

Several DEX platforms are making progress in creating safer trading environments:

  • CowSwap: Focuses on intent-based transactions to reduce MEV risks.

  • Jupiter: Praised for its seamless routing and user experience.

  • Sei DEXs: Offers speed and simplicity in trades.

  • hSwap on Haven1: Notable for its MEV resistance and good UX.

"No bidding wars. No frontrunning. Just fair, direct execution," one user commented, aligning with community sentiments.

Recently, users have expressed a strong preference for cleaner DEX options. One remarked, "I’m using CowSwap, Jupiter, and hSwap for fair swaps; they feel safer. I'm curious about what other DEXs people trust."

User Insights and Community Sentiment

Ongoing forum discussions reveal varied experiences:

  • Users are growing weary of the impact of MEV on their transactions.

  • A participant stated, "DeFi was built onchain," echoing the ecosystem's core principles.

  • Interest in DEX aggregators like ODOS and 1inch is rising, aiming for optimized trade outcomes.

Amid these discussions, there’s skepticism about the authenticity of some comments, as promotional remarks can skew genuine interactions.

Key Takeaways

  • ⚠️ MEV issues loom large over trading experiences.

  • 🌟 Growing confidence in platforms like CowSwap and hSwap signals user demand for safety.

  • πŸ”’ Interest in staking through projects like Spark and Avae is surging, evidenced by increased total value locked (TVL).

With a push towards all-encompassing onchain solutions, trustworthy DEXs are essential for user retention and confidence. A reported 70% of DEXs are expected to adopt stricter security measures to counter MEV and sandwich attacks in the next year, fueled by demands for safer trading practices and more regulatory scrutiny.

What Lies Ahead for DEXs?

As DEXs evolve, security enhancements will remain paramount. Platforms like CowSwap and hSwap are well-placed to benefit from increasing user trust, potentially leading to greater trading volumes and improved liquidity.

Reflecting on historical lessons from online commerce, today's challenges in DeFi may lead to a more robust ecosystem, just as e-commerce learned to embrace encryption for safety.