Is Stellar DEX Safe?
Risk Grade: B+ (19/100)
Stellar DEX is rated as moderate risk — some novel mechanisms, generally well-understood.
Low risk — protocol-native DEX with 8+ years of track record and formal documentation, though low TVL and anchor counterparty risk are the primary concerns.
Stellar DEX is the native decentralized exchange built into the Stellar blockchain protocol, with a traditional orderbook and AMM liquidity pools operating at the consensus layer. With near-zero transaction fees and 8+ years of operation, it enables trading of any asset issued on Stellar including fiat-pegged stablecoins. However, with just $12M in TVL, orderbook depth may be limited for larger trades.
TVL
$16M
Mechanisms
5
Interactions
4
Value Grade
C+
Key Risks for Stellar DEX Users
The DEX relies on 'anchors' (asset issuers) for fiat-pegged tokens — if an anchor becomes insolvent, their issued tokens become worthless and cannot be redeemed
Low TVL means thin orderbook depth for most trading pairs, resulting in higher slippage for larger trades compared to major centralized or DeFi exchanges
The Stellar Development Foundation has significant influence over network governance, meaning protocol-level DEX rules could change through governance decisions you don't control
Top Risk Factors
- •As a protocol-level DEX, Stellar's exchange is only as decentralized as the Stellar network itself — the Stellar Development Foundation retains significant influence over network governance and upgrades
- •Low TVL ($12M) relative to Stellar's total market cap suggests limited DeFi composability and thin orderbook depth for most trading pairs
- •Trustline model means users must explicitly trust asset issuers — counterparty risk on issued assets falls on the issuer, not the protocol
Risk Score Breakdown
Stellar DEX's highest risk area is Track Record (9/15). Here's how each dimension contributes to the overall 19/100 score:
Read the Full Stellar DEX Risk Report
This protocol has 2 collapse scenarios. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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