What are the problems of DEXs?

While a DEX is your gateway to DeFi, the DEXs that exist today have some problems.
First, while it’s great that there are no gatekeepers, the major issue is that there are no gatekeepers. Scammers look at DEXs as their golden opportunity to list scam tokens that they know no one will vet or take offline. You are responsible for performing your own due diligence to decide whether or not a token is safe. Even if a project looks safe, there’s always the risk that the smart contract is coded maliciously or that the developer might steal the liquidity and disappear.
Another major issue is that there is no quality control. We have seen the rise of memecoins (tokens created with memes or internet jokes as their basis; they typically have no real use case) in recent years. Dogecoin was started as a joke, and now there are many different memecoins branded with Shiba Inus, TV shows, pop culture references, or whatever seems entertaining and exciting enough to get folks to buy. The problem with these cryptos is that they have no use case. They exist purely for speculation. While a few may take off “to the moon,” it’s unlikely that you find the right token at the right time to become a millionaire overnight.
On top of the lack of an applicable use for tokens, there is another whole group of tokens that, even with good intentions, does not have a quality product. The smart contracts may be poorly written, or the idea may not be thought out in terms of feasibility and implementation. This challenge also drives many project developers to simply copy existing projects wholesale. A lack of quality and innovation does not move DeFi forward, but rather floods the market and confounds participants.
A third problem with DEXs is that most of them have poor usability. It takes time to learn how to use these platforms and to understand how to solve issues that you run into with your swaps or staking. The user interface and overall user experience leaves a lot to be desired compared to what you get from a centralized exchange. To make matters worse, DEXs don’t usually offer any form of customer support.
One last problem that we’ll touch on here is that there is no support for the developers who want to launch their tokens on those platforms. The developer has to figure out everything on their own, relying only on the documentation provided by that platform. Throughout the process, the developers do not have any community or network benefits that they can use to boost their project and give it a strong start. They must do everything themselves from scratch, effectively reinventing the wheel with each new project.