Many DEXs attempt to meet all user needs with a single design, but this often leads to compromises. Truly excellent trading protocols should recognize that the core needs of traders and liquidity providers (LPs) are different.

Traders care about execution efficiency and spreads—they need fast transactions and optimal pricing. LPs, on the other hand, seek structured returns and transparent mechanism design, understanding how their funds create value. When DEX protocols separate and optimize the incentive mechanisms for these two roles, the overall ecosystem efficiency can be significantly improved. This is the essence of market design—ensuring that each participant's interests are respected and protected.