In October 2025, decentralized exchanges recorded $568 billion in trading volume, while longstanding usability and custody issues persisted for users.

Overview

CeDeFi describes hybrid models that combine decentralized finance protocol control with centralized exchange conveniences, aiming to ease onboarding and key management for participants.

OKX updated its decentralized exchange functionality to reflect this approach, introducing flows that reduce seed phrase exposure and simplify cross-chain transfers for users.

How it works

The implementation preserves permissionless settlement for on-chain assets while optionally offering custody and recovery paths under defined conditions, according to OKX documentation.

Users can choose between noncustodial wallets and platform-managed accounts, with transaction routing that seeks to maintain on-chain finality and liquidity access across supported networks.

Using OKX CeDeFi

Onboarding is presented through the exchange interface, where key management options and cross-chain bridges are exposed with stepwise prompts and confirmations to reduce user error.

To use the scheme, users register or log into OKX, opt into the CeDeFi flow, select custody preference, and authorize on-chain transactions via the chosen account model.

Fees and routing logic vary by asset and destination chain; the platform displays expected costs and estimated on-chain settlement times before users approve operations.

Considerations

Security considerations include custody transfer terms, recovery procedures, and the trust assumptions associated with optional managed key services, which users must review carefully.

Regulatory status depends on jurisdiction; OKX advises users to verify local rules and the legal implications of custodial versus noncustodial arrangements before participating.

The hybrid design targets reducing barriers to DeFi liquidity while preserving elements of user control and auditability inherent to on-chain systems.