PixelSwap101: Why is “permissionless” considered a golden rule for DEXs?

{Permissionless} is fundamental to DEXs as it allows anyone to trade freely without requiring approval or permission from a third party. This decentralized approach safeguards user privacy and freedom while minimizing the risks of censorship and restrictions commonly encountered in centralization.

Without it, you have only little real control of your assets, and the following risks associated with centralization will devour you.

  • Single Point of Failure: CEXs rely on centralized servers and infrastructure, which can cripple the platform if they fail or are attacked, preventing users from accessing their assets.
  • Regulatory Risks: CEXs may face compliance requirements and scrutiny from governments and regulatory bodies, potentially leading to asset freezes or platform shutdowns.
  • Security Risks, Privacy Risks, Operational Risks, and Market Manipulation Risks, etc.

To be fair, DEXs still have significant room for improvement, particularly in addressing the high risks associated with reliance on smart contract code.

However, through our relentless efforts, PixelSwap now stands as a 100% permissionless DEX built on the TON blockchain, promoting absolute decentralization, non-custodial trading, and transparency, while significantly minimizing these risks.

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