For new DEXs to compete with Defi protocols, they need:
- Liquidity: Without enough users and funds, trading becomes slow or costly.
- Special features: Some try new ideas such as futures trading, improved pricing systems, or advanced trading tools.
- Lower fees: Faster blockchains or Layer-2 networks can make transactions more affordable than older networks.
- Better user experience: Simple design and easy onboarding help bring in new users.