Overview
JOYSO was a hybrid decentralized exchange launched in 2018. It combined off-chain order matching with on-chain Ethereum settlement to offer fast trading without giving up custody. Despite its innovative model, the platform closed in mid-2021.
What Was JOYSO
The exchange aimed to merge centralized speed with blockchain security. Users connected wallets, orders matched quickly, and trades settled via smart contracts. It supported ERC-20 tokens and offered fee discounts using its JOY token. While it looked like a fresh alternative to early DEXs, activity never reached critical mass.
Trading Experience
Trading felt like using a centralized platform thanks to its order book interface. Orders executed fast, with maker fees at 0.10% and taker fees at 0.20%. Discounts applied when using JOY tokens. Withdrawals were cheap, but liquidity problems started early and worsened until closure.
Fees and Incentives
JOYSO kept things simple: low fees, optional JOY token discounts, and no extra staking or reward programs. While this was competitive, it lacked features that could have boosted user engagement. With shrinking liquidity, even low costs could not keep traders around.
Security and Decentralization
Funds stayed in user wallets until trades finalized via smart contracts, reducing custody risks. The hybrid model worked, and there were no hack reports. However, audit transparency was minimal, and off-chain components raised questions about full decentralization.
Liquidity and Tokens
The exchange listed around 60-70 ERC-20 tokens. Larger assets traded fine at first, but smaller pools had weak depth. By 2019, volumes were falling, and by 2021, activity had almost vanished completely.
Pros and Cons
- Pros: Hybrid model with fast order matching; Users kept custody of funds; Low trading fees; Fee discounts with JOY token; Low withdrawal costs.
- Cons: Closed in 2021; Liquidity dried up quickly; No fiat or advanced products; No clear audits; Weak community support.
Who Used JOYSO
JOYSO appealed to traders wanting a CEX-like interface without giving up wallet control. Early adopters appreciated its safety and low fees, but as volumes fell, even loyal users left for other platforms.
What Led to the Shutdown
On June 30, 2021, JOYSO shut down, citing regulatory changes in Taiwan. Users were asked to withdraw funds before the deadline. Afterward, the exchange went offline, and only the JOY token continued to exist on other markets.
Final Thoughts
JOYSO tried to innovate with a hybrid approach combining speed and decentralization. The tech worked, but lack of liquidity and community support led to its demise. It remains a lesson that technology alone is not enough to sustain an exchange without user adoption.