Decentralized Exchange (DEX)

A Decentralized Exchange (DEX) is a peer-to-peer trading platform that allows users to trade cryptocurrencies directly from their wallets without relying on a centralized intermediary. DEXs utilize smart contracts to facilitate trades, ensuring that users retain control over their private keys and funds throughout the process. This decentralized approach enhances security and privacy, reduces the risk of centralized points of failure, and often offers a wider range of tokens for trading.

For web3 developers, building or integrating with DEXs involves understanding smart contract development, liquidity provision mechanisms, and user experience considerations in a decentralized environment.