Unless the pCoins themselves are accepted for exchanging transactions. Tapping into other decentralized liquidity pools will be expensive. Exiting via ETH for example is super expensive. Even if we wrap all of Incognito pCoins into ETH which is do-able, it’s just not really practical for what we are trying to achieve. At that point, you would have double wrapped ERC-20 tokens. Integrating Binance Smart Chain swaps via 1Inch is probably a good option though as the fees are cheaper. Realistically, the more liquidity pools we can tap into, the better. It’s just with ETH’s high contract fee’s, it’s not really usable. We already have integration with uniswap.
I was the first person to suggest integrating into Orion Protocol. But the pDex exists because it serves an important function. Incognito has built many bridges to multiple blockchains, and the goal is to exchange fluidly between blockchains in a private trustless manor. If we were to remove the pDex, PRV would be worthless and staking would be a waste of time and money. It kind of destroys the whole ecosystem. When you transact via smart contracts, that information is public. Incognito’s main point is to make sure that trading and transactional data isn’t shared publicly. You can have a system in place where half of it is public, and the other half is private, but the more meta data, the less private you are. You still need the pDEX if you want to be completely anon.
Polkadot is definitely worth investing in though as it solves a lot of the trustless bridge problems and removes the need for fixed amount pCoins which I currently see as an issue.
Currently as we add more liquidity pools, arbitrage opportunity is what makes Incognito’s pDEX continue to be useful, as well as the ridiculously low trading fees and privacy. This keeps the value of PRV from plummeting to zero. Though, that being said, we definitely need more utility for PRV.