Consensus panelists explain why Perp DEXes remain a tough sell for institutional investors

Panelists at Consensus Miami said institutional investors are still largely absent from perp DEXs, citing security risks and KYC friction as key barriers....
Key takeaways
- 1Security exploits like Drift's multi-million-dollar hack remain the biggest barrier to institutional adoption of perp DEXs.
- 2DeFi's permissionless design conflicts with institutional KYC/compliance requirements, making large-scale adoption difficult.
- 3Centralized exchanges are outpacing DEXs in product innovation, offering integrated trading tools and bots that decentralized platforms lack.
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Why it matters
For Indian retail investors, this explains why institutional capital isn't flowing into perp DEXs yet, keeping these platforms smaller and potentially riskier. Regulatory clarity on KYC requirements will likely determine whether crypto trading shifts toward decentralized or centralized venues in India.
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