I think it is at the same time a comfortable and rewarding path.
There isn’t much innovation in using a fast BFT chain and doing a DEX in it. Serum, Switcheo, Vega, Orion are very inflationary projects as well (> 60% issuance in a year) so there is a incentive on participating by receiving the inflation as rewards - as crypto markets are fairly inefficient and somehow prices can be made insensitive to inflation.
I am not concerned in the long term - fundamentally a blockchain for a exchange is more of a database for funds bookkeeping and orderbook maintenance. If you work long enough on some problems like matching fairness you end up building things to be able to go back and forward in time for auditing and debugging - so everyone really trying to solve trading issues like that is building a blockchain-like data structure - a timestamped linked list of immutable events.
I don’t think using ready-made non fit-for-purpose systems for trading will be where winners are, however that is more of a technological point of view. So I truly believe we will be able to keep a strong edge on technology with our current offerings and future improvements.
My main concern and where the bizdev team has been putting a lot of energy is in bootstrapping markets, that is a huge and expensive effort that I would take some of this competition very serious. They could make-up for their lack of technology with their ability on creating markets.