Ethena founder Guy Young says DEXs are winning on efficiency

Guy Young, founder of Ethena Labs, has a simple explanation for why decentralized exchanges keep eating into the business of their centralized rivals. They are more efficient at doing the job. Speaking on Delphi Digital’s Hivemind podcast in October 2026, Young pointed to the structural advantages DEXs hold over centralized exchanges (CEXs). What Young actually argued Young’s case rested on three pillars: execution, custody, and economics. In his telling, DEXs can execute trades better, handle custody in newer ways, and run on a slimmer cost structure. The custody point is the one that stands out. On a centralized exchange, users hand their assets to the platform, which then holds them on its own books. On a DEX, trades settle through smart contracts, so users generally keep control of their funds until the swap happens. The podcast discussion also touched on why builders find DEXs appealing. Composability, permissionless innovation, and lower operating costs came up as differentiators. CEXs, by contrast, have to manage excess capacity and shoulder centralized custodial obligations. Composability means protocols can plug into one another like LEGO bricks. A lending app can tap a DE...