Decentralized cryptocurrency trading platforms managed to attract attention, as their popularity increased remarkably during the past summer, especially in light of the spread of DeFi protocols and the success of many of them in attracting users.

The result of this has been a sharp increase in demand and a rapid increase in the development of these decentralized trading platforms.

But the rapid growth has been accompanied by a severe lack of user security on many occasions.

CER conducted a study and then released a report on the security situation of decentralized exchanges.

The CER platform, part of the popular cybersecurity firm Hacken Group, has reached the results indicated in this article by relying on security investigations and adopting an in-depth profiling methodology.

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Only 8% of decentralized trading platforms are considered secure:

In the paper shared with SourceIn this article, CER has highlighted several potential risks associated with decentralized trading platforms, which can be avoided to some extent on centralized platforms.

These risks include:

• Existence of fake digital coins mixed with the same index as real coins.
• High price slippage which leads to buying a cryptocurrency at a different price than its average price in the market.
• transaction delays.
• Lack of data about trading pairs.
• Most decentralized trading platforms do not offer any insurances or features that may protect users from mistakes or when they lose money.

However, CER acknowledged that there hasn’t been any significant penetration into decentralized exchanges compared to centralized ones.

The CER presented figures in this article examined 25 decentralized trading platforms and based their final results on a number of factors, including security audit trail, bug bounty program, live cold wallet support, degree of liquidity, data availability…

The results ranged from one to ten.

Meaning the higher the final number, the more secure and reliable the platform was supposed to be.

Read:Cryptocurrency exchange hacked, $2 million stolen

Somewhat alarmingly, CER concluded that the security score scores for decentralized exchanges from the research show that only two of the 25 exchanges had a “high” score of 8 or higher, Uniswap and Synthetix.

As the chart above shows, CRV, dYdX, Binance Ducks, Sushi, 1inch, Balancer, Switcheo, and Kyber complete the top ten list.

No monopoly in audits:

When it comes to security audits specifically, CER confirmed that six decentralized exchanges (24%) failed to pass or did not publicly announce that they had undergone such audits.

The report warns that unaudited decentralized exchanges cannot be said to be safe.

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However, most of those who pass security audits have hired different third-party auditors.

According to CER, this means that “there is no monopoly in the market”.

CER also noted that many decentralized platforms did not repeat an audit after updating their code.

While only four platforms maintained their audits accuracy at 100%, this is mainly due to the lack of updates to their code after their recent audits.

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