According to dYdX Foundation, on-chain trading venues are no longer merely alternatives to centralized exchanges and are becoming core venues for execution, driven by a shift highlighted in their statement (source: dYdX Foundation on X, Dec 29, 2025). The foundation cites five key drivers for routing order flow on-chain: self-custody, transparency, liquidity, price, and speed, indicating improving execution quality on DEXs relative to CEXs (source: dYdX Foundation on X, Dec 29, 2025). For traders, this implies monitoring on-chain order book depth, realized slippage, and latency alongside CEX benchmarks to capture tighter spreads and competitive pricing as liquidity consolidates on-chain (source: dYdX Foundation on X, Dec 29, 2025). Strategy-wise, consider adaptive routing that compares on-chain price-time priority and liquidity with CEX quotes in real time to optimize fill quality and cost (source: dYdX Foundation on X, Dec 29, 2025).