What is a DEX?
Decentralized Exchange; a type of cryptocurrency exchange that operates without a central authority.
Key details
- Non-Custodial
- Users maintain control of their funds.
- Permissionless
- Anyone can use a DEX without approval or KYC.
- Smart Contract Based
- Operates using blockchain smart contracts.
- Liquidity Pools
- Often uses automated market makers and liquidity pools.
Examples
- 01Uniswap, a popular Ethereum-based DEX using an automated market maker model.
- 02dYdX, a DEX focused on cryptocurrency derivatives trading.
- 03PancakeSwap, a DEX on the Binance Smart Chain.