Evaluating the Success of Decentralized Exchanges (DEXs): A DeLone and McLean Information Systems Approach

Abstract

The paper assesses the success of the Decentralized Exchanges (DEXs) through the DeLone and McLean Information Systems Success Model. To evaluate the performance of DEXs, six dimensions, system quality, information quality, service quality, use, user satisfaction, and net benefits are used. A comparative analysis with the existing exchange models indicates that adoption is primarily due to transparency and user satisfaction and scalability is a challenge. The originality of the work is the adaptation of the Information System (IS) Success Model to the decentralized finance (DeFi) setting and the suggestion of both theoretical and practical implications of the sustainability and expansion of the DEXs. Findings indicate that transparency and security drive user satisfaction and adoption. Key stakeholders include users, developers and regulators.