On-Chain Battle: Aster Aims to Replicate 80% of CEX Functions in One Year to Challenge Binance

Blockchain entrepreneurs coming from traditional backgrounds

Leonard’s career path began in traditional finance / investment banking technology roles, later entering the blockchain industry, participating in multiple project developments, and ultimately founding Aster.

He worked at Binance for many years, accumulating rich experience in trading systems and product design, which laid the foundation for later creating an on-chain trading platform. With the rise of projects like dYdX and GMX, Leonard gradually expanded his vision from a single perpetual DEX to a multi-chain comprehensive trading platform.

In his view, the current Aster is no longer simply a perp DEX, but more like a combination of “on-chain financial infrastructure + trading platform.”

What is “Reproducing CEX 80%” - Function Breakdown

When Leonard proposed “replicating 80% of the product experience on CEX within a year,” it implied a functional breakdown across multiple dimensions:

• Trading Mechanism: Spot, Leverage, Perpetual Contracts
• Asset Management: Deposit / Withdrawal / Staking / Lending
• Fee / Discount Strategy: Discounts for payment with platform coin
• Points / Rewards / Market Making Mechanism
• Token Buyback / Burn / Deflation Mechanism
• Governance / Listing / Community Participation Mechanism

In these modules, Aster has already laid out in some directions: for example, the fee discount mechanism (holding ASTER can enjoy a 5% discount on perpetual trading); at the same time, it is also preparing a token buyback mechanism.

It can be said that this 80% does not mean imitating all the edge features, but rather focusing on those modules that are most core and commonly used by users.

Realistic barriers and risk points

The “replication” of core CEX functions on-chain is not something that can be achieved overnight, and there are several real-world obstacles to overcome:

• On-chain performance limitations: High concurrency may lead to transaction delays and increased slippage.
• Liquidity and depth competition: DEX needs strong LP incentives and cross-chain collaboration to match the depth and low slippage of CEX.
• Risk Control and Security Vulnerabilities: on-chain systems are susceptible to flash loans and manipulation attacks.
• Governance efficiency issue: CEX has centralized decision-making and rapid execution, while on-chain governance is often slow and decentralized. Leonard also acknowledges that a certain level of centralized control will be retained in the early stages to ensure efficiency.
• Compliance and legal risks: Fiat channels, identity verification, and regulatory compliance are still issues that must be addressed.

Token distribution controversies and market sentiment

The distribution of Aster’s ASTER token has raised external doubts, with on-chain data showing a concentration of holdings. However, Leonard stated that 80% of it is in a locked state, and 40% belongs to airdrop allocations. Some of the so-called whale addresses are actually platform custody addresses. He emphasized that the private placement parties have no intention of large-scale selling; it is more about team allocation.

However, the recent price of ASTER has fallen by more than 20%, leading to a shake in market confidence regarding its prospects. Analysis suggests that the reasons may include product skepticism, competitive pressure, and capital withdrawal. In such an environment, token buybacks, transaction fee discounts, product implementation, and user growth have become key factors in stabilizing market confidence.

What would a successful future look like?

Assuming Aster completes the CEX feature replication within a year and establishes a multi-chain ecosystem, it may bring about the following changes:

• Users are starting to migrate from CEX to on-chain, enjoying higher transparency and self-custody.
• Reconstruction of trading volume and liquidity may attract large holders and market makers.
• The ecosystem is gradually forming a closed loop, enhancing user stickiness.
• Causing greater competitive pressure on traditional CEX.
• Can it ultimately surpass Binance? Although the difficulty is extremely high, on certain tracks, on-chain trading platforms may indeed stand out.

The story of Aster may be the next confrontation experiment between CEX and DEX in the Web3 world.