The so-called decentralized exchanges (DEX) that are getting more and more popular, like Hyperliquid, GMX, DYDX—these order-matching exchanges are essentially still centralized. The only difference is they don’t require KYC. They’re centralized exchanges disguised in the cloak of decentralization. Hyperliquid’s success is largely thanks to the super crypto-friendly policies of the Trump administration. If the Democrats were in power, several of the platform’s founders might already be in jail—just like the developers of the Tornado Cash mixer. They were accused of multiple crimes, including money laundering, arrested, and jailed, while the front-end code on GitHub was forcibly taken down. Looking at the current policy environment for DEXs, CZ’s $4.3 billion fine for violating anti-money laundering laws and his 4-month jail sentence back in the day seem ridiculously unfair—he’s practically more wronged than Dou E (a Chinese literary figure known for her unjust suffering). Now, Aster is essentially something CZ is behind. It’s a pseudo-decentralized exchange running on the centralized BSC chain. The outlook for DEXs isn’t optimistic. If Trump’s term ends, these pseudo-decentralized exchanges could face even harsher policy crackdowns, especially as the regulatory environment tightens. On top of that, security risks at the code level will remain a major challenge for DEXs. A flood of exploits and transaction attacks could put customers’ funds at significant risk.